Group Members:Anum SheikhBushra Javed

Mahnoor MalikMohsin Azhar

Saba Asher

Avon's Mission

The Global Beauty Leader

• We will build a unique portfolio of Beauty and related brands, striving to surpass our competitors in quality, innovation and value, and elevating our image to become the Beauty company most women turn to worldwide.

The Women's Choice for Buying

• We will become the destination store for women, offering the convenience of multiple brands and channels, and providing a personal high touch shopping experience that helps create lifelong customer relationships.

The Premier Direct Seller

• We will expand our presence in direct selling and lead the reinvention of the channel, offering an entrepreneurial opportunity that delivers superior earnings, recognition, service and support, making it easy and rewarding to be affiliated with Avon and elevating the image of our industry.

The Best Place to Work

• We will be known for our leadership edge, through our passion for high standards, our respect for diversity and our commitment to create exceptional opportunities for professional growth so that associates can fulfill their highest potential.

The Largest Women's Foundation

• We will be a committed global champion for the health and well-being of women through philanthropic efforts that eliminate breast cancer from the face of the earth, and that empower women to achieve economic independence.

The Most Admired Company

• We will deliver superior returns to our shareholders by tirelessly pursuing new growth opportunities while continually improving our profitability, a socially responsible, ethical company that is watched and emulated as a model of success.

• It weighs in at 249 words that cover everything from surpassing competitors to increasing shareholder value to fighting breast cancer.

• It's great to do many important things all at once, but the mission statement should provide employees, customers and the world at large with one or two key goals that define success in business & universe.

Ideally, mission statement should mention what your company actually does.

Key Values

• Trust, • Respect, • Belief,• Humility, and • Integrity

Vision

• To be the company that best understands and satisfies the product, service and self-fulfillment needs of women—globally.

• To be the company that best understands the needs and wants of the public as a whole, to provide best quality beauty products and services – globally.

STRENGTHS• Global brand• Has a Successful channel of distribution•Worlds largest Direct Seller•Largest micro lender to women•Far ahead of its competitors(Mary Kay and Revlon)- in terms of revenue and number of employees

Dedicated workforce of 5.4 million in

over 100 countries

•Rated as “100 best corporate citizens” by Business Ethics Magazine.

• Largest manufacturing plants have been

certified with ISO 14001

•Socially responsible; Received the Clean Industry Certificate from the federal Environment Protection Agency in 2008

Weaknesses

• Weak brand image• Greatest challenge is of generating buzz• High advertising costs • Poor customer loyalty as the products can’t be

associated with anything in particular• Their Goodwill of $244 million and long term

debt of $1.4 billion is not good

PEST ANALYSIS• Political analysis

– Trade restrictions and tariffs are different for ever country hence lead to high/low variable costs.

– Political stability is an important factor when thinking for diversify.

– Tax Expense was increasing (223244 in 2006 to 362700 in 2008)

– Avon Business Model exhibits that representatives buy products from Avon on credit and pay them back after getting sales revenues from customers.

Employment laws

ECONOMIC ANALYSIS

In cosmetics Industry the products tend to be countercyclical. Demand for such products normally remains constant and

unaffected by economic distress. (pg 217) But due to 2008 economic downturn Avon Began:

– Cutting costs,– Closing unprofitable operations,– Simplifying its product line– Moving work to countries with low labor cost.

• In the first two quarters of 2009 negative impact of currency exchange has been noticed due to foreign exchange pressure. (pg. 218)

SOCIAL ANALYSIS• Emphasis on safety

– Largest manufacturing plants are ISO 14001 certified and 60% production takes place in these plants refers AVON

focuses on environmental management practices (pg 215)– Manufacturing plant in Mexico received the Clean Industry

Certification from the federal Environment Protection Agency in 2008 (pg 215)

– Focusing on reduction of GHG emissions in the company’s logistics and operations.

– Avon Foundation for women: working for the betterment and well being of Women’s health and empowering them to achieve economic independence.

Technological Factors

• Research and development (R&D) is essential in order to improve refines and to launch new products.

• A growing trend in the cosmetic industry is the introduction of “Green products”

• Technological advancements to attract more customers through use of high-tech media and innovative marketing campaigns and celebrity endorsers:Reece WitherspoonMTV star Lauren Conrad

EFE Matrix

AvonOpportunities WEIGHTS SCORE

(1-4) WTD. SCORE

Increasing demand for beauty products 0.20 4 0.80Menswear Market (entering new business

line)0.20 3 0.60

Re-brand certain items to drive consumer

demand0.10 3 0.30

Potential Emerging Markets 0.10 3 0.30ThreatsIncreasing/strong competition 0.20 4 0.80Recession/ Inflation 0.1 3 0.30Suppliers shifting to competitors 0.10 2 0.20TOTAL 1.00 3.45

RevlonOpportunities WEIGHTS SCORE WTD.

SCOREIncreasing demand for beauty products 0.20 4 0.80

Brazil and China key growth markets for color cosmetics 0.15 3 0.45

Rise in demand for organic and natural cosmetics 0.15 3 0.45

Introduce a new product line 0.10 3 0.30

ThreatsChanging preferences of customers 0.20 3 0.60Recession/ Inflation 0.05 1 0.05Lots of competitors 0.15 4 0.60TOTAL 1.00 3.25

Mary KayOpportunities WEIGHTS SCORE WTD.

SCOREIncreasing demand for beauty

products 0.20 4 0.80

Potential emerging markets 0.15 3 0.45Introduce a new product line 0.15 3 0.45Rise in demand for organic

cosmetics0.10 3 0.3

ThreatsIncreasing/strong competition 0.20 4 0.80Recession/ Inflation 0.05 1 0.05Changing consumer

preferences 0.10 2 0.30Hazards of chemical based

products 0.05 1 0.10Total 1.00 3.25

Competitive Profile Matrix - CPM

Thank You