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DayDay toto NightNight ClutchClutch“Transform Yourself”

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Presenters

• Ryan Santonacita – U.S. Supply Chain

• Sarah Clarfield – Gifts and Home Marketing

• Jenna Moreno – Sales Leadership

• Manda Chan – Finance

• Caitrin Dolan – Personal Care Brand Marketing

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Today’s Agenda

• What our consumers want

• Introduction of a new product

• Product Costing

• Promotion and Sales

• Representative Support

• Competitive Analysis

• Conclusion

• Q & A

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Cosmetics Products Lipstick/ Lip Gloss Blush with a small folding Brush Eye Liner Eye Shadow Compact/ Pressed

Powder/ Concealer Purse Size Mascara Oil Blotters Fragrance

Slits for my…… Mirror Credit Card Money Cell Phone Car Keys ID Mints

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Style of the Clutch is critical!!

Enough room for everything I need

Eye Appealing

Fine Lining

Color that goes well with any outfits

Removable strap

No Plastic-looking fabric

it has to be GOOD- LOOKING !!

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Take your purse from this…

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To THIS!

All you need to create

the night time look!

Transform Yourself..

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• Concept:VERSATILE and USEFUL – cosmetic bag can be converted into a fashionable, useful, and convenient clutch

Target Customers : 18 - 45 year-old women Desires on-the-go, easy conversion from a Natural

Day to a Dramatic Night look

Day to Night Clutch

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• With this Day to Night Clutch you get…– All the necessary items for two looks

• Day• Night

– ONE bag for all purpose use

– Slits for your money, credit cards, keys, etc

– Slots for extra Avon’s Products

– Mirror for final checking

Day to Night Clutch Overview

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Day to Night Clutch

Two Different Two Different BagsBags

• Earthy NaturalsEarthy Naturals

• Dramatic PlumsDramatic Plums

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Day to Night ClutchTRUE COLOR TRUE COLOR

Eye shadow QuadEye shadow QuadULTRA RICH COLOR ULTRA RICH COLOR

Lip-glossLip-gloss

GLIMMERSTICKS GLIMMERSTICKS EyelinerEyeliner

TRUE COLORTRUE COLOR BlushBlush

(Cool Collection)

( Warm Collection) ( Warm Collection)

(Cool Collection)

( Both )

( Both )

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Day Night

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Day to Night ClutchCool Collection

Day Night

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Day to Night ClutchWarm Collection

Day Night

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Day to Night Clutch Costing

What is What is included?included?

Avon ProductsAvon Products Cost of GoodsCost of Goods

Day to Night ClutchDay to Night Clutch $1.35

True Color QuadTrue Color Quad $1.27

True Color BlushTrue Color Blush $1.01

Ultra Color Rich Lip-GlossUltra Color Rich Lip-Gloss $0.85

Glimmer Stick EyelinerGlimmer Stick Eyeliner $0.53

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Day to Night Clutch Costing

Product CDSS Cost of GoodsDay to Night ClutchDay to Night Clutch $15.00 $1.35

True Color QuadTrue Color Quad $7.00 $1.27True Color BlushTrue Color Blush $8.00 $1.01

Lip-GlossLip-Gloss $6.50 $0.85EyelinerEyeliner $6.00 $0.53

Product ValueProduct Value $42.50 $4.99

Total Packing CostsTotal Packing Costs $0.40

Total Cost of Day to Night Clutch

$5.39

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Day to Night Clutch Costing

• How much How much does it cost?does it cost?–$19.99$19.99

• Can’t forget about Can’t forget about that margin…that margin…

60%60%

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Seasonality and Colors

• So what is the So what is the seasonality?seasonality?– Based on trends Based on trends

for Spring ’08for Spring ’08

– Function and Function and usefulness of usefulness of product are year-product are year-round round

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Day to Night Clutch

Inside of clutch filled Close up of design on front

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Day to Night Clutch

• How will it be How will it be promoted?promoted?

• How will it work within How will it work within the campaign?the campaign?

• Featured in the Color Featured in the Color sectionsection

• Given an inside cover Given an inside cover spreadspread

• Called out in the indexCalled out in the index

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Day to Night Clutch

• Celebrity Celebrity Promotion?Promotion?– Features a “Tip Card”Features a “Tip Card”

• One side has tips for a One side has tips for a natural, daytime looknatural, daytime look

• Reverse side has for a Reverse side has for a darker, nighttime lookdarker, nighttime look

• Both tips based on Both tips based on included make-upincluded make-up

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Creative Execution

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Representative Sales Support

• Heighten product awarenessproduct awareness

• Increase excitementexcitement

• Create sense of trustworthinesssense of trustworthiness

• Generate interestinterest in the product

• EducateEducate the Representative

• Express what a great valuegreat value and utilize the PWPPWP

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Representative Sales Support

A valuable “Tip Card” will:

• excite customers

• increase knowledge of makeup application

• show how fun and easy a day to night look can be

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Increase Representative Sales

• Utilize the REPRESENTATIVE REPRESENTATIVE TIMESTIMES

• Utilize WHAT’S NEWWHAT’S NEW

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Representative Sales Support

• Express what a Great ValueGreat Value is being offered $42.50 Product Value for only $19.99 FASHIONABLE - FUNCTIONAL - VERSATILE A cosmetic bag can be converted into a chic, useful,

and convenient clutch

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Representative Sales Support

• In order to drive sales, a PURCHASE with PURCHASEPURCHASE with PURCHASE will be offered:

• EITHER– Far Far AwayAway ParadiseParadise Fragrance Regular $22.50 Now $9.99

– ANEW CLINICAL Plump & Smooth Lip System

Regular $25.00 Now $9.99

Far Far AwayAway ParadiseParadise

ANEW CLINICAL Plump &

Smooth Lip System

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LeadershipLeadership

• New Leadership Incentive!

• Senior Executive Unit Leaders increase down-line by threethree representatives TOP 5 SELLERS of the featured product

receive a cash prize of $1000 The NUMBER ONE SELLER

exclusive event with Jillian Dempsey for entire down-line

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Beauty Of Knowledge

• Education Knowledge SALES! Create a Day to Night WebinarWebinar Add a Day to Night course to the Beauty of Beauty of

Knowledge TrainingKnowledge Training on YourAvon.com Representatives can share their knowledge with

customers to drive salesdrive sales

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Competitors• Estee Lauder

– MAC

– Clinique

– Bobbi Brown

• Sephora

• Lancome

• Ulta Beauty

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ULTA 14 Piece Gift with Purchase

• 2 shades of Nail Polish

• 1 Eyeshadow Quad

• 2 Lip Colors

• 1 Lip Plumper

• 1 Lip/Eye Liner Pencil

• 1 Cheek Color

• 1 Translucent Powder

• 1 Mirror

• 3 Piece Brush Set

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Competitive Analysis• Competitor

Marketing Strategies

– Gift with Purchase– Advertising

• Pricing

• Why Avon?– Less Expensive– Great Quality

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Q & A