A

PROJECT REPORT ON CONSUMER PREFERENCE FOR AVON SKINCARE AND BEAUTY PRODUCTS

Submitted To:
PANJAB UNIVERSITY, CHANDIGARH In partial fulfillment of requirement for degree of

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

Submitted by: Arshpreet kaur 14310000422

KHALSA COLLEGE FOR WOMEN LUDHIANA Session (2012-2013)

CERTIFICATE

I certify that the project report CONSUMER PREFERENCE FOR AVON SKIN CARE AND BEAUTY PRODUCTS has been undertaken by me for the partial fulfillment of the requirement of degree of Bachelor of Business Administration and is an original piece of work done by me and that no part of this project has been submitted for any other degree, diploma, fellowship or similar title in university or in any other university.

I express my sincere gratitude to my advisor Mrs. Pawanpreet Sooch for her valuable guidance support and cooperation extended for completion of this project.

ARSHPREET KAUR 14310000422

CERTIFICATE

This is to certify project report entitled CONSUMER PREFERENCE FOR AVON SKIN CARE AND BEAUTY PRODUCTS submitted for the degree of BBA does carry out a bonafide research work under my guidance, and no part of this project has submitted for any other degree.

Project advisor Mrs. Pawanpreet Sooch

ACKNOWLEDGEMENT

This work is essentially the result of final year, which is mandatory to be taken on the partial fulfillment of the course BBA. The project entitled CONSUMER PREFERENCE FOR AVON SKIN CARE AND BEAUTY PRODUCTS.

So I here wish to express my gratitude to those who generously helped me to colour the mosaic of this research work with the tiles of their knowledge and experience.

I also take this opportunity to express my deep sense of gratitude and indebtness to my teacher, MRS. PAWANPREET SOOCH who supervised my work for their able guidance, suggestions and constructive criticism.

TABLE OF CONTENTS
SERIAL NO. PARTICULARS PAGE NO.

INTRODUCTION OF THE STUDY

OBJECTIVES OF THE STUDY

3.1 RESEARCH METHODOLOGY

DATA ANALYSIS AND ITS INTERPRETATION FINDING OF THE STUDY

CONCLUSION

BIBLIOGRAPHY

QUESTIONNAIRE

INTRODUCTION

INTRODUCTION:

Avon Products, Inc. is the worlds largest direct selling organization and merchandiser of beauty and beauty related products. From corporate offices in New York City, Avon marketed product lines to women in 112 countries through 1.6 million independent sales representatives who sold primarily on a door-to-door basis. Total sales in 1992 were $3.8 billion. The company work force of 29,900 employees staffed divisions of product management, manufacturing, and sales and service, worldwide. Avon entered the international marketplace in the 1950s. In 1954, Avon opened sales offices in Venezuela and Puerto Rico to cultivate the Latin American market. Avon expanded into the European market in 1957 through its United Kingdom subsidiary, Avon Cosmetics, Ltd. The company entered the Asian market in 1969, by way of Japan. In 1990, it became the first major cosmetics company to manufacture and sell products in China. That same year, Avon became the first American beauty company to enter East Germany. Sales of Avon International, in 1992, were $2.25 billion, compared to Avon U.S. sales of $1.41 billion. More than three-fifths of the firms direct selling sales and earnings came from outside the United States and the proportion was growing. Internationally, the companys product line was marketed primarily at moderate price points. The marketing strategy emphasized department store quality at discount store prices. Avon divided the world into four geographical divisions: The United States, Europe, The Pacific, and The Americas. In most of international markets, the primary operating arrangement in each of these divisions was direct ownership by Avon of the foreign country subsidiary. Joint ventures with foreign firms were used when the culture and the ways of doing business were significantly unfamiliar to Avon management.

By 1991, Avon management felt that it was time to re-evaluate and map out the long-term future of the firms beauty businesses on a global level. Senior management knew that the traditional Avon system of door-to-door house calls worked wonderfully in developing nations. Avon then tried to develop its own global perspective. In developing the market globally, Avon Management identifies three avenues of growth which are geographic growth, leveraging distribution channels in emerging and developing markets, and marketing in developed industrial areas. The first area was geographic growth. Enormous growth opportunities existed in countries with huge populations such as China, Indonesia and India. In Eastern Europe, management was excited about the potential in Poland, Czechoslovakia, and Hungary. In the Pacific Rim area, countries like Vietnam, Cambodia, and Laos were targeted as market opportunities. The second area of growth was to continue to emphasize direct selling in the emerging and developing markets of Latin America, the Pacific Rim, and other areas. In those markets, the retail infrastructure was undeveloped, especially in the interiors of those countries. The Avon representative provided consumers with an opportunity to buy a wide range of quality products at acceptable prices. In some developing markets, where access to quality goods was particularly prized, Avons direct selling method opened up unprecedented prospects for women. The third area of international growth was marketing in the United States and other developed industrial areas like Canada, Western Europe, and Australia. New programs were designed to complement the existing network of sales representatives and image-enhancing advertising and promotion programs worldwide to make customers aware of Avon products and the purchase options available such as on the website and retail outlets. Avons strong presence in the market globally intends to satisfy their customer demand around the world and shows that Avon has step into the market in a global perspective and vary from country to country and market to market internationally. This helps Avon in developing its own image in a global perspective and in achieving their mission of being the Global Beauty Leader.

History:

In the late 1800s, David McConnell, a door-to-door book salesman, had an idea he believed would encourage women to buy his books. Following a common trade practice of the period, he gave prospective customers a gift of perfume to arouse their interest. Before long, he discovered that the perfume was more popular than the books. He formed a new firm, which he called the California Perfume Company. I started in a space scarcely larger than an ordinary kitchen pantry, David McConnell noted in 1900. My ambition was to manufacture a line of goods superior to any other and take those goods through canvassing agents directly from the laboratory to the consumer. McConnell based his business upon: 1) consumable products sold directly to the consumer, 2) an image of the company that captured the beauty and excitement of the state of California, and 3) a national network of sales agents he had organized during his years as a bookseller. AVP is a US skincare and beauty product seller. founded in 1886 as the California Perfume Company founded by then 28-year-old David H. McConnell markets in over 140 countries across the world As the firm grew, so did the product line. In 1920, the company introduced a line of products called Avon that consisted of a toothbrush, cleanser, and vanity set. The Avon name was inspired by the area about the companys laboratory at Suffern, New York, which Mr. McConnell thought resembled the countryside of William Shakespeares home, Stratford-on-Avon, England. The name of the line became so popular that in 1929, the company officially became Avon. By 1929, the company was selling low-cost home care and beauty products, door-to-door and through catalogues in all 48 states.

About Avon:

Avon has been committed to being the company for women since 1886, and for over 120 years they have taken very seriously their responsibility to improve the lives of women. Their core valuestrust, respect, belief, humility and integrityguide the company every day and are fundamental to how they conduct their business and meet the evolving needs of women and all of their stakeholders. In todays increasingly complex, globalized world, an unwavering commitment to corporate responsibility is more important than ever and represents the hallmark of success in any industry. As a leading global provider of skincare, personal care and related products, people at Avon continue to strengthen their commitment to such critical areas as economic empowerment, environmental and product responsibility as they work to create a brighter tomorrow. Avon Products, Inc. (Avon) is based in New York. The firm engages in the manufacture and marketing of beauty and complimentary products primarily in North America, Latin America, Europe, and Asia Pacifics. Avons products are classified into three product categories: Beauty, Beauty Plus, and Beyond Beauty. The Beauty category consists of cosmetics, fragrances, skin care, and toiletries; Beauty Plus includes fashion jewellry, watches, and accessories; and Beyond Beauty comprises home products, gift and decorative products, candles. The company sells and markets its products through a combination of direct selling, marketing by independent Avon representatives and via its consumer Web site, avon.com.

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Avon and its approximately 42,000 associates now serve valued customers in more than 100 countries worldwide Avon success lies within it channel of distribution, it is the worlds largest direct seller with 5.4 million Avon representatives in over 100 countries. Additionally, it is the largest micro lender to women and it is among the world top global brands. The company increased its investment in 2007 by over $120 million which aided in the development of new sales leadership opportunity, improved training, technology tools and changes in commission structure. Avons largest manufacturing plants, Brazil, China and Poland received the ISO 14001 certifications in 2008. Various awards were granted during this period such as the Clean Industry Certificate to the manufacturing plant in Mexico. During the same period Avons revenues increased 7.5 percent and net income increased by 65 percent. Avon Products Inc. closest competitors are Revlon, Inc and Mary Kay Inc. Mary Kay Inc uses the same approach as Avon which is direct marketing approach which Revlon sells its products through cosmetics counters in department stores are pharmacies. Avon revenues far exceed that of its competitors in 2008 Avons revenue was $10.37 billion compared to Mary Kay $2.40 billion and Revlon $1.35 billion. Avon implemented reconstructing programs in 2009 which included closing two manufacturing facilities. In addition, there is heavy investment in online search engines and internet carrier sites to help increase Avons revenue. Andrea Jung is the Chief Executive Office who is leading the management team of thirteen to achieve its goal.

Vision Statement (Actual):

To be the company that best understands and satisfies the product, service, and selffulfillment needs of women globally.

Mission Statement (Actual):

The Global Beauty Leader Avon has build a unique portfolio of Beauty and related brands, striving to surpass their competitors in quality, innovation and value, and elevating the image to become the Beauty company, most women turn to worldwide.

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 The Womens Choice for Buying Avon has became 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 Avon has expanded the 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 beauty industry. The Best Place to Work - Avon is known for leadership edge, through the passion for high standards, respect for diversity and commitment to create exceptional opportunities for professional growth so that associates can fulfill their highest potential. The Largest Womens Foundation - Avon has committed a 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 Avon has delivered superior returns to their shareholders by tirelessly pursuing new growth opportunities while continually improving their profitability, a socially responsible, ethical company that is watched and emulated as a model of success. The five values of Avon are: Trust, respect, belief, humility, and integrity.

Slogan (Actual):
Avon is the company for women

Proposed Vision Statement:

To be the leading provider of home, fashion and beauty products that will satisfy customers while preserving the environment.

Proposed Mission Statement:

Avon is committed to being the leading global provider of home, fashion and beauty products that will enhance the lives of customers. Avon will utilize latest technology and will pursue new growth opportunities that will bring about wealth for all stakeholders. At Avon they firmly believe in respect: respect for people and respect for the environment.

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Proposed Slogan:
Avon: the company for everyone committed to the enrichment of lives.

Values and Principles:

These five values, and their guiding principles, outlined below, have served as a continuing source of strength within our organization. They remain at the heart of who they are and who they strive to be.

The Avon Values

Trust means they want to live and work in an environment where communications are openwhere people feel free to take risks, to share their points of view and to speak the truth as they see it. Trust people to do the right thingand help them to understand underlying reasoning and philosophyand they wont disappoint. Respect helps them to value differences, to appreciate each person for her or his unique qualities. Through respect, they help bring out the full potential of each person. Belief is the cornerstone of empowering associates to assume responsibilities and be the very best they can be. Believe in someoneand show itand that person will move mountains to prove youre right. Humility simply means they are not always rightthey dont have all the answersand they know it. They are no less human than the people who work for them, and they are not afraid to ask for help. Integrity should be the hallmark of every Avon associate. In setting and observing the highest ethical standards and doing the right thing, they fulfill a duty of care, not only to their representatives and customers in the communities they serve, but to their colleagues and themselves.

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The Principles That Guide Avon

1. To provide individuals an opportunity to earn in support of their well-being and happiness; 2. To serve families throughout the world with products of the highest quality backed by a guarantee of satisfaction; 3. To render a service to customers that is outstanding in its helpfulness and courtesy; 4. To give full recognition to employees and Representatives, on whose contributions Avon depends; 5. 6. To share with others the rewards of growth and success; To meet fully the obligations of corporate citizenship by contributing to the wellbeing of society and the environment in which its functions.

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Goals and Objectives:

Selections of their existing goals are outlined in the table below. They are continuously setting additional goals around key areas of risk and opportunity for our business. Area Environment Goal Reduce GHG emissions per unit produced by an additional 10 percent by 2012 from already reduced 2008 baseline levels. Reduce energy consumption per unit produced by 10 percent by 2012 from already reduced 2008 baseline levels. Reduce water consumption per thousand units produced by 7 percent by the end of 2012, from already reduced 2008 baseline levels. Zero environmental noncompliance incidents and fines Governance Report the recipients and portion of Avon payments used for political contributions and expenditures by such trade associations that receive in excess of $100,000 from Avon beginning in 2009 (for the calendar year 2008) Philanthropy Supply Chain Exceed $1 billion in funds distributed by 2012 Ensure consistent oversight of their entire global supply chain, including monitoring of suppliers compliance with their Supplier Code of Conduct, by December of 2009. Increase spends with diverse suppliers year after year. Workplace Safety Health Achieve a total recordable case (TRC) rate of 1.0 across all Avon and facilities Introduce a comprehensive safety audit program in 2009

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Major Brands and Product Lines:

Their support of women encompasses all aspects of personal care, including beauty, wellness, health and fitness, as well as economic empowerment and financial independence. To remain at the forefront of the highly competitive beauty industry, they constantly develop quality, effective and affordable breakthrough products that cater to the needs of our customers. Their current product offerings fall into three categories:

Beauty Cosmetics Fragrances Skincare Toiletries

Fashion Fashion Jewelry Watches Apparel Accessories

Home Home Products Gifts and Products Decorative

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Major Markets and Operations:

Headquartered in New York City, Avon markets its products to women throughout six regionsAsia Pacific; Central and Eastern Europe; China; Latin America; North America; and Western Europe, Middle East and Africa. They have maintained direct sales operations in 65 countries since 2004, and now have four additional new operations in Finland, Albania, Macedonia and Egypt. In addition to these direct operations, Avon also does business through distributorships and licensees to drive continuing growth throughout emerging and developed markets. They distribute products in an additional 48 countries through these secondary sales channels.

Revenues (millions) Region 2007

Asia Pacific Central and Eastern Europe China Latin America North America Western Europe, Middle East and Africa Total $850.8 $1,577.8 $280.5 $3,298.9 $2,622.1 $1,308.6 $9,938.7

2008
$891.2 $1,719.5 $350.9 $3,884.1 $2,492.7 $1,351.7 $10,690.1

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AVON PRODUCTS:

Following is a simple diagram showing Avons product mix:

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Avon Color is Avons flagship global color cosmetics brand which offers a variety of color cosmetics products, including foundations, powders, lip, eye and nail products. Avon Colors palettes contain shades that suit the skin tones of women of all ethnicities. Avon Color provides superior innovation and high-technology in its products to deliver beauty and treatment-related benefits that make women look and feel their best. Avon Color has over the decades brought scientific advances to the beauty market with the launch of hit products such as Glimmersticks, eyeliners and lipliners, slim-line mechanical color pencils that allow for a smoother application, and Glazewear Liquid Lip Color, which contains patented Thixotropic Gellant System that moisturizes lips with Vitamins A, C, and E. Avon Color's product portfolio includes: Mistake Proof Mascara is the first-ever mascara with a built-in mistake eraser. This multi-benefit mascara provides volume, length and lift on one end and a gel eraser on the other end to undo mascara mishaps. Pro-To-Go Lipstick with its breakthrough design allows opening, applying and closing the lipstick all with one hand. With one slide of a button, Pro-To-Go Lipstick gives luscious color and hydrating lip care. Jillian Dempsey for AVON Professional Collection, a new line of makeup that will leave women looking like they go to a professional make-up artist. The collection includes:

Kohl Eyeliner with Smudger, a creamy eye pencil that can be used as a liner or a shadow to create smoky eyes. Available in Black, Plum, Navy and Dark Brown.

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Eyeshadow Trio, a palette containing two powder shadows to add dimension to the eyes and one cream formula to apply over the lids as a highlighter/base. Available in Ice Shimmer, Lavender Mist, Antique Bronze and Pebble Wash.

Lash Professional Mascara, dual-ended mascara featuring the Extreme Volume formula and Perfect Wear waterproof formula. Available in Black, Brown, Brown Black and Burgundy.

SUPERSHOCK Mascara, Avons biggest-ever, flexible bristle brush gives the maximum amount of mascara in just one dip. Each formula contains unique microfibers that expand and plump lashes, creating bold, dramatic lashes. Avon SuperSHOCK Mascara is currently available in Black, Brown Black, Brown and Navy.

Anew is the worlds leading mass market anti-aging skin care brand offering breakthrough products infused with innovative technology at affordable prices. Avon revolutionized skin care in 1992, when it was the first company to launch an antiaging product containing Alpha Hydroxy Acids, which was Anew Perfecting Complex for Face. The Anew brand boasts an assortment of skin care products that fight all stages of the aging process, whether their customer is preventing the early signs of aging in her 20s, or restoring the youthful texture of her complexion in her 50s. Anew is also well-known for pioneering products that serve as at-home alternatives to professional cosmetic treatments. ANEWs product portfolio includes:

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ANEW Clinical Derma-Full X3 Facial Filling Serum, an ultra-concentrated, lightweight serum with a unique helix formation that contains the injectable-grade Hyaluronic Acid to provide visible volume restoration, and contouring and deep wrinkle filling benefits.

ANEW Rejuvenate 24 Hour Eye Cream is a dual eye system with SPF 25 to fight aging throughout the day. Two creams, a day revitalizing cream and a night restoration cream, are packaged in a dual-chamber jar and exclusively engineered to continuously repair and protect skin against age damage in the delicate eye area.

ANEW Rejuvenate Night Revitalizing Cream is a lightweight gel-cream that delivers the rejuvenating results of a professional anti-aging facial.

ANEW Rejuvenate Flash Facial Revitalizing Concentrate is a concentrated serum treatment with three times the level of the exclusive Revita Fresh technology which helps to increase cell-to-cell cohesion to help strengthen the skins surface layers.

ANEW Clinical Advanced Dermabrasion System utilizes aluminum oxide crystals and special polishing beads that resurface and refresh skin to reveal a radiant and more youthful appearance. Polyethylene polishing beads refine and refinish, while advanced polymers conditions skin.

ANEW Ultimate Contouring Eye System, a dual-formula eye treatment designed to recontour, repair and rebuild skins cellular structure for dramatic, refining results and younger-looking eyes.

Anew Clinical ThermaFirm Face Lifting Cream, a treatment with Triple Sonic Technology to firm, tightens and rejuvenates skin to look smoother and revitalizedthe at-home alternative to thermal facelifts.

Anew Clinical Advanced Retexturizing Peel, a ready-to-use retexturing treatment that peels away dullness and visible age damage to restore skins radiance and youth.

Anew Clinical Eye Lift, the first-ever dual eye treatment that lifts both the lower and upper eye areas for dramatically younger-looking skin.

Anew Clinical Deep Crease Concentrate with Bo-Hylurox a powerful serum with a blend of natural, active ingredients. Formulated with portulaca, Avons

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patented extract to make hard-to-treat creases (or expression lines) look more relaxed.

Anew Clinical Line and Wrinkle Corrector, a skin care treatment that renews, rebuilds and regenerates skin from within. Quadruple-Patented Technology Derma-3X Technology stimulates production of the three key dimensions of agevulnerable skin.

Skin So Soft is one of Avons best-loved brands offering a line of bath and body products for all skin types. Since the launch of the brands famous bath oil in 1961, Skin So Soft has evolved over the years to an extended line of brands that include Daily Moisture, Renew & Refresh, Soft & Glow, Fresh & Smooth and Soft & Firm that provide skin smoothing and skin caring benefits. Skin So Soft has also expanded beyond bath and body care with the launch of products that help protect against insects. This led to the development of the Skin So Soft Bug Guard PLUS line of products that use IR 3535 in 8 DEET-free formulations that are easy to use for the whole family. In February 2007, Avon launched Skin So Soft Fusions Dual Softening Body Wash, the first body wash that fuses an exfoliating formula with an ultra-conditioning cleanser. Recent Skin So Soft products include:

Avon Skin So Soft Fusions Dual Softening Body Moisturizer is dually formulated to help skin maintain optimal hydration from above and deep within

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skins surface. One formula softens and smoothes the surface of the skin while the other works to fortify deep within skins surface to create a special hydrating cushion. Available in Soft & Sensual, Soft & Nourish, and Soft & Replenish.

Skin So Soft Bug Guard IR 3535 Expedition and Skin So Soft Bug Guard Plus Picaridin, deliver long-lasting insect repellency and are available as pump and aerosol sprays.

Skin So Soft Bug Guard Plus IR3535 Unscented SPF 15 Sunscreen Spray, an EPA-registered DEET-free SPF 15 aerosol.

Skin So Soft Satin Glow, a daily body moisturizer that gradually develops a natural, healthy summer glow.

Skin So Soft Fresh & Smooth, a line of hair removal products such as shaving gel and waxing kits to effectively remove hair, leaving skin silky and smooth.

Advance Techniques salon-quality products serve the needs of every hair type, age group and ethnic background. As a recognized hair care brand among Avon customers, Advance Techniques delivers a wide range of shampoos, conditioners and styling products. Advance Techniques launched in 2000, offering a broad selection of high performance hair care products to accommodate a diverse consumer base. Since then, Advance Techniques products have been reformulated to include Creatine, an essential skin care ingredient that strengthens and repairs hair from root to tip. Creatine also protects hair against damage caused by heat styling and chemical processes. Advance Techniques offers shampoos, conditioners and styling products in the following four hair care categories to meet the needs of every woman.

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Volume and Texture, formulated with Creatine Plus Amino Peptides to plump fine, lifeless hair. Straight and Sleek, formulated with Creatine Plus Silicone Smoothers to tame and illuminate out of control hair for a smooth polished look. Color Protection, formulated with Creatine Plus an Anti-Oxidant & UV Filter Complex to protect the brilliance and health of color-treated hair. Daily Results, formulated with Creatine plus-Pro-Vitamin B5 to help improve the condition and manageability of hair. Intense Repair, formulated with Creatine plus Hyaluronic Moisture System to treat and repair dry, damaged hair.

Avon Wellness provides rejuvenating health and fitness products that promote a well-balanced lifestyle. Launched in 2000, Avon Wellness embraces the philosophy of inner as well as outer beauty and the well-being of mind, body and spirit. Avon Wellness products are available in all of Avons markets across the world. In 2005, Avon expanded its Wellness line when it partnered with the popular fitness franchise Curves. Through the Avon brochure, customers will find a host of Curvesbranded fitness apparel, accessories and comfortable footwear that support a physically active lifestyle and healthy eating.

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Being the largest manufacturer of mass market perfumes, Avon offers affordable scents with upscale packaging so that all women can enjoy the Avon fragrance experience. Originally known as The California Perfume Company, Avon began its fragrance legacy in 1886 when it introduced Little Dot Perfumes. Since then, blockbuster icons like Little Black Dress, Far Away, Sweet Honesty, Rare Gold and Imari have been legendary among their customers. In 2004, Avon launched its first prestige fragrance trilogy Today ,Tomorrow, Always, supported by Avon spokeswoman Salma Hayek. Avons prestige fragrance collection is well-suited for the customer who is willing to spend more on her fragrance. Avon also manufactures fragrances for men. In 2006, Avon launched Derek Jeter Driven its new fragrance by baseball star Derek Jeter. Other popular fragrances for men include Blue Rush, Black Suede and Wild Country. Several of Avon fragrances for both men and women extend to a line of ancillary products such as body creams and lotions. Avon fragrance portfolio includes:

Christian LaCroix Absynthe, a new Oriental Green scent exclusively designed by Christian Lacroix for Avon. Its top notes include absinthe extract, golden freesia and green anise with midnotes of orchid, saffron, and narcissus nectar. Antique wood, ebony musk, myrrh and amber create this fragrances smoky drydown.

U by Ungaro for Her and U by Ungaro for Him was designed exclusively for Avon by haute couture designer Emanuel Ungaro. U by Ungaro for Her carries an alluring scent made up of fresh blossoming florals surrounded by sensual blonde woods and is packaged in the shape of a soft pink hourglass. U by Ungaro for

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Him blends an airy crispness that leads to a sophisticated blend of rich, textural woods and is packaged in a sleek rectangular shape paired with translucent glass.

Christian Lacroix Rouge was exclusively created for Avon by haute couture designer Christian Lacroix is a bold floral chypre based on natural Patchouli Heart, contrasted with an exhilarating introduction of Spanish carnation and energizing white pepper.

Derek Jeter Driven, the new fragrance for men Extraordinary which combines the richness of chocolate truffles and the sparkling effervescence of champagne

Today, Tomorrow, Always, Avons first prestige fragrance trilogy promoted by Avon spokesperson

Competitors & Market trend:

Avon has many established companies as its competitors. There are many skincare and beauty product companies all over the world, winning millions of womens hearts. Yet all of them are unique and always striving to be the best. If they do not point out their differences ten soon other rivals will bash them. Now, why Avon is a threat to other skincare and beauty product companies is interesting. They are a threat because they offered shares to the public in 1946. Since then, their annual revenue has risen from less than $20 million to over $8 billion and yet to increase more. This shows that if this

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continues then a large portion of market share will go to Avons pocket each year. Also, they are effectively holding their market position and market share. skincare and personal care brands are highly competitive and yet the overall market is expanding geographically and strategically. Avon is always aiming at going anywhere and everywhere around the world. Today it has its market touch corners of more than 100 countries yet they know there are so many untouched corners to explore. Avon also looks at extending market growth to include countries like Poland Vietnam Cambodia

Competitors:

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Avon Major Competitors:

Mary Kay and Revlon are considered two major competitors of Avon Products Inc. in the cosmetics industry. Avon Product Inc. is seven and half times larger than Revlon and approximately eight times larger than Mary Kay. Although the majority of Avon's competitors distribute their products to resellers such as department stores, drugstores, or cosmetic stores, Avon sells its products solely through its direct-selling channel of independently-contracted Active Sales Representatives and through its online website. In contrast to Revlons marketing strategy of selling through cosmetic counters in department stores and pharmacies, Mary Kay rivals with Avon Inc. as they both use direct marketing approach. In 1983 Mary Kay Cosmetics was founded in Dallas, Texas, by Mary Kay (now Mary Kay Ash). This company is known for providing women with exceptional opportunities for professional achievement and economic success and rewarding women for their success. In 2009 sales of Mary Kay products reached $2.6 billion in wholesale worldwide. There are more than 37,000 women across the world who has become Independent Sales Directors. Mary Kay spends millions of dollars and conducts more than 300,000 tests to ensure that Mary Kay products meet the highest standards of quality, safety and performance. Mary Kay products are expensive versus Avon which is comparable to store products. Mary Kay seems to be targeting older women while Avon is branching out to attract women of all ages with quality affordable makeup, jewellery, purses and childrens items. Mary Kay has stayed in touch with the internet age; each independent beauty consultant can buy his or her own website to sell clients over the internet. In fact 90% of the companys revenue is now generated through online orders. Avons revenues far exceed both major competitors. Their revenue is almost four and half times that of Mary Kays and seven and half times Revlons. Avons revenue exceeds Ten Billion Dollars (B$10).

Revlon was founded in 1932, by Charles Revson and his brother Joseph, along with a chemist, Charles Lachman, who contributed the "L" in the Revlon name. In the 1990's, Revlon revitalized its cosmetics business and strengthened its industry leadership

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role. Revlon Sales to Wal-Mart accounts for 23% of the company's total sales. The company earned $1.3 billion in sales and $950K in net income in 2009. Net sales fell 3.7% to $1.29 billion. Sales in the US fell 4.4% while sales international fell by 2.9%. The company attributes the loss to the weak global economy. The net sales in 2009 were approximately $1.3 billion, a decrease of approximately $51 million or 3.8% versus 2008. Revlon has a more focused product offering than some companies and when one considers only color cosmetics sales they are much more comparable. Revlon is the second largest color cosmetics company in the United States. Competitors Estee Lauder and Avon get the majority of their revenue outside the United States.

Competitors Analysis:
AVP REV 131.01M INDUSTRY 32.20M

Ma rk e t Ca p : Em p lo y e e s : Re v . Gro w th Re v e n u e Gro s s Ma rg in

6.85B

42,000

5,600

1640

-8.70%

-10.50%

8.90%

10.69B

1.35B

121.46M

64.80%

63.55%

56.62%

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Handling Competitors:
In this competitive world to handle competitors or to say to survive and capture market share, companies must provide superior value to their customers. Thats absolutely what Avon is doing. The following diagram is usually used to show levels of product but here it is used to explain the competitive advantages Avon has over its competing brands. Avons competitive advantages are: it has world class scientists and technicians who are working hard at Avon global research and development center at New York to develop new products now and then. In doing so they are offering customers solution for very problems of their. This is preemptive and very hard for competitors to copy; giving Avon absolute defense.

Then there is the 5.4 million sales representative all around the world working to delight customers. This stunning number is absolutely hard to copy and gives Avon again an absolute defense.

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MARKET OPERATIONS:
Avon Products, Inc. markets its products to women in over 100 countries through over 5 million independent Avon Sales Representatives. This is one of their strategies in developing Avon in a global perspective. The map below shows the six geographic regions where Avon products are marketed and sold.

Albania Belarus Czech Republic Finland Hungary Kyrgyzstan Lithuania Moldova

Armenia Bulgaria Estonia Georgia Kazakhstan Latvia Macedonia Montenegro

United States Puerto Rico Aruba Barbados Curacao Grand Cayman Island Guyana

Canada Dominican Republic Antigua & Bahamas Bermuda Dominica Grenada Jamaica

Argentina Brazil Colombia Ecuador Guatemala Mexico Panama Peru Venezuela

Bolivia Chile Costa Rica El Salvador Honduras Nicaragua Paraguay Uruguay

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Australia India Malaysia Philippines Taiwan Vietnam

Hong Kong Japan New Zealand South Korea Thailand

Botswana Dubai France Greece Israel Jordan Lebanon Luxembourg Mauritius Morocco Netherlands Norway Portugal

Cyprus Egypt Germany Iceland Italy Kuwait Lesotho Malta Mozambique Namibia North Cyprus Oman Reunion Island

DISRIBUTION PROCESS:
Avon is innovating the direct-selling industry, enabling Representatives to run their businesses and maximize their earnings as never before. The company leverages the most advanced digital tools on the Internet, social media and mobile technology - so a Representative's business integrates seamlessly with the way people today connect, share and shop. This enhances both the selling and shopping experiences.

What is Direct Selling?

Direct selling is a type of sales channel where products are marketed directly to customers, eliminating the need for middlemen wholesalers, advertisers and retailers. Direct selling can be conducted one-on-one, in a group or party format, or online. At Avon, the "direct" part of direct selling also refers to the personal component of this sales channel; its about building relationships with people and offering them a high level of service and personal attention.

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Benefits of Direct Selling What makes direct selling such an attractive career option is the flexibility it offers. Those who engage in direct selling are independent contractors who determine how much time and energy they want to invest in their businesses. They set their own hours, and define and control their workfamily life balance. An Independent Sales Representative is her own boss. Direct selling is also a way to own a business with a minimal capital investment. Direct Selling the World Over According to the World Federation of Direct Selling Associations (WFDSA), 87 million people, roughly the population of Vietnam, are part of the global, direct-selling sales force. Direct sellers around the world have $132 billion in sales annually. Avons direct-selling innovations include:

Customized social media environments for Representatives to reach customers and other Representatives.

A personalized E-Brochure widget to ensure that customers are never more than a few clicks away from ordering, sharing the E-Brochure with friends and creating a viral sensation.

Online training and sales tools. A new application for Sales Leadership Representatives to more effectively monitor their Representatives orders.

Intelligent ordering, which makes it easier for Representatives to place their orders with Avon and ensures that they receive special product offers that are relevant to them.

A widget which lets Representatives embed the latest Avon TV advertisements and videos into their own social media platforms.

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Other route to market: Buy Avon Online:

With their new website YourAvon.com busy customers can enjoy free delivery United States customers will be able buy direct from Avon's online store, at www.avon.com

Buy Avon through channels:

They will try to constantly develop new channels to deliver the best of Avon products and services Customers will find Avon in kiosks, beauty centers and beauty boutiques, and in outlets and department stores

Supply chain:
As a leading global manufacturer and marketer of consumer products, Avon recognizes that responsible supplier conduct is critical to their business. It impacts their ability to attract and retain a loyal customer base, dedicated employees and enthusiastic Sales Representatives helps them to maintain the reputation and trust that they have earned for the past 123 years. As standards evolve and as monitoring becomes more effective and efficient, Avon will continue to focus on its performance in this critical area. For their beauty and beauty-related products, Avon utilizes both company-owned manufacturing facilities and third-party suppliers to source its products for consumers

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around the world. In all, Avons suppliers currently number approximately 16,000 and hail from 50 countries. Their cosmetics, fragrances, and toiletries productsalso known as beauty productsare the core of their business and comprise approximately 70 percent of our net sales. Eightynine percent of their beauty products are manufactured in Avon-owned facilities. Thirdparty manufacturers supply the remaining 11 percent of their beauty products. All of their non-beauty products are sourced through third-party manufacturers in 25 countries across five continents.

Goal of Supply Chain:

Ensure consistent oversight of their entire global supply chain, including monitoring of suppliers compliance with their Supplier Code of Conduct, by December of 2009. Increase spending with diverse suppliers year after year.

Supplier Code of Conduct:

Through their Supplier Code of Conduct, vendor audits and product compliance testing, they seek to hold their suppliers accountable for compliance with all applicable local and national laws and regulations regarding product safety and quality, environmental performance and human rights. Through monitoring, ongoing engagement and, if necessary, termination, they seek to ensure that all suppliers of Avon non-beauty products sold in the United States comply with their Supplier Code of Conduct. They have engaged several third-party auditing firms to monitor their suppliers compliance with the Supplier Code of Conduct. They are currently reviewing the effectiveness of their supplier monitoring program, in particular as it applies to suppliers of products sold in countries outside the United States. They know that they need to constantly improve the consistency of their oversight and the overall effectiveness of their program; to that end, they have set a goal to ensure consistent oversight of their entire global supply chain, including monitoring of suppliers compliance with their Supplier Code of Conduct, by December 2009.

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Supplier Diversity:
More than 30 years ago, Avon instituted a supplier diversity initiative to reinforce the companys commitment to women and to support those who provide the goods and services that make Avon products extraordinary. They have made an effort in recent years to expand our relationships with women- and minority-owned suppliers in North America. Avon North Americas memberships in the Womens Business Enterprise National Council (WBENC) and the National Minority Supplier Development Council (NMSDC) have helped to facilitate this process. Avon sourced products and services from more than 284 small and diverse businesses in North America as of 2007, and in that year Avon U.S. awarded $39 million in contracts to diverse suppliers, which was approximately 5.6 percent of their total U.S. spend. Avons desire is to increase spend with diverse suppliers year after year. They embrace supplier diversity as a business objective, not only to ensure that they recognize capable diverse suppliers but also to continue to drive savings by selecting the most competitive partners. In 2007 and 2008, Avon attended several national trade shows, business fairs and events, including those sponsored by the NMSDC, WBENC and U.S. Pan Asian American Chamber of Commerce. In addition, members of their Supplier Diversity Council continue to represent Avon locally at business expos and outreach events in states as varied as California, Georgia, Illinois, New York, Ohio, Pennsylvania and Washington, D.C. As they continue to adopt a more centralized supply chain process, they will strengthen their capability to accurately assess the services, commodities and regions in which growth and opportunities may exist for more diverse suppliers. While Avon remains committed to supplier diversity, challenges driven by the current global economic environment have impacted supply chain processes around the world. Early in 2010, Avon management will revisit the supplier diversity position in the context of their overall supply chain and business goals, with the objective of addressing both business and corporate citizenship responsibilities. Avon encourages potential suppliers to register their company profiles in their supplier diversity database.

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Sales Process :

Knowing detailed information about the customers Building Rapport and excellent personal relationship Demonstration of samples and allowing free sample trial Let customers try out the products before they buy it and then see if objections arise

Avons existing sales process is a blend of extreme professionalism and realistic approaches. As their values and principals are described above, we can see that they learn from their mistakes and take a modest approach at solving those. Even if their sales process is earning them billions every year yet they believe there is always room for improvement. Their sales process is effective because that carry out each steps properly:

During prospecting stage, the sales representatives do a massive target market search, which is they seek out every potential prospect for the company. In the next stage according to many demographic and other variables they cut off few prospects and list down to whom they can approach. We call this qualifying the prospect stage. Obviously, subsequently the need for garnering detailed information comes in the next stage that we call preapproach. Sales representatives then in the next stage approach the customers with

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warm hearts and good product details. They build wholehearted relationships with them. Even if there is no intention of a purchase, yet they demonstrate the products in details and try to put all the features and benefits to the customers, hoping they will buy in the effort. In handling objective stage they use their expertise and knowledge to solve the queries. Finally, they make the deal and close off the sale in such a way that their presence will remain in the hearts of the customers for many years to come!

Sales skill & capability:

They recognize that every associate brings unique skills and experiences to their organization, and they seek to leverage these differences in the most effective ways possible. Just as they unite their associates through their similarities, they also recognize and appreciate their differences and seek to create an environment conducive to individual and collective excellence. They are committed to maintaining a work environment that affords all associates opportunities for development and advancement. Their vision is for all associates to feel comfortable enough to contribute their thoughts and ideas for the mutual benefit of all associates and the organization. They are also committed to maintaining a culture that supports associates as they balance their many and sometimes competing, professional and personal responsibilities. Because they seek to leverage the diversity of all of their associates, diversity and inclusion are fully embedded in their corporate culture. Andrea Jung, now in her ninth year as their chairman and CEO, is consistently recognized not only for the vision and perspective she brings to the company, but also as one of the foremost executives and one of the most powerful women in business. Her leadership and example are an inspiration to all Avon employees as they strive for own personal excellence. The basic characteristics AVON looks into the sales representatives before the leverages & the training are Diversity, Leadership, and Excellent communications skill, Hard Working, Dynamic and Teamwork.

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Development Plan:
World-class Training: The Avon universal training program provides consistent training for all Representatives around the world. The program enables Representatives to develop skills and pursue personal goals and encourages them to build their own businesses. In addition, the Leadership Representatives can build their businesses by prospecting, appointing, training and developing (PATD) other Representatives in their community. The PATD program involves a series of thorough training modules that, when combined with the support of up line Representatives and their District Sales Managers, provide Leadership Representatives with the best opportunity to succeed in the marketplace. Leveraging Technology: More and more Representatives around the world are choosing to operate their businesses online, including approximately 150,000 Representatives in the United States. As part of their Representative Value Proposition (RVP), they offer Representatives new web-enablement tools and other cutting-edge online training opportunities to help them expand their businesses online. These features make Avon more accessible and allow customers to buy Avon products from the Representatives they trust the most, regardless of their location. Local Support: They have management associates on the ground in nearly every zip code around the United States and around the world. Called District and Division Managers in the United States, and Zone Managers elsewhere in the world, they encourage and support our Representatives in any way they can. In addition, they protect the Avon brand by ensuring that Representatives conduct themselves with the utmost integrity, do not damage other Representatives or the company in general, and comply with all company policies.

Design of the Sales Department:

Avon knows no boundaries. Their associates worldwide support a global network of nearly five million independent sales representatives. Wherever people work for Avon in the world, they are assured of outstanding career opportunities and the chance to prove them in a fast-paced and challenging working environment. Their colleagues from research scientists and IT specialists to marketing experts and field operations veterans

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will be among of the best professionals in their field. The sales department is mainly includes the Sales Managers & the Sales representatives which are again subdivided into different parts.

Sales manager:
The sales managers are responsible for collaborating and controlling the acts of the sales Representatives of their defined area or region. There are mainly 3 types of sales managers: 1. District: Their responsibility is framed within the activities of the district they are appointed. They look upon the activities of the sales representatives and monitor and also help the representatives when they are in doubt or need. 2. Divisional: They are appointed at the divisional (State) level of every country. They coordinate the activities of the district managers & also the sales representatives. 3. Zone: Zone managers are appointed for each continent to monitor and coordinate the activities of the Sales representatives, district managers and the divisional mangers.

Sales Representative:

Representatives are the heart of their business. They provide AVON with unparalleled grassroots market penetration into the communities in which AVON operates. AVON help their Representatives meet the demands they face by remaining flexible, accessible and responsive. Their unique business model empowers each of their more than 5.5 million Representatives as an independent

40

business. Through this arrangement, they provide training and access to local management to allow each Representative the opportunity to grow and succeed. Representatives can earn income in two ways: by selling Avon products as a traditional Representative, or by selling and also recruiting others to do the same. Representatives with a downline of others, called Leadership Representatives, must continue to maintain their own customer base while managing, mentoring and training the Representatives under their guidance.

1. Leadership Representatives
1.

Comprise one third of all Avon Sales Representatives, as part of our Leadership Opportunity Program

2.

Earn by selling Avon products and recruiting and mentoring others in the downline stream of Representatives

3.

Can receive certification in the Avon PATD Program: Prospect, Appoint, Train and Develop.

2. Career-Minded Representatives

Comprise one third of Representatives Serve a large and loyal customer base who regularly purchase product Earn significant income from their Avon business Often work full-time as Representatives

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3. Part-Time Representatives

Comprise one third of Representatives Often seeking flexibility and supplementary income around holiday and family schedules

Contribute to the continued success of our business model and the realization of their personal goals

The Avon Leadership Program is a multitiered compensation program that gives topselling Representatives, known as Leadership Representatives, an enhanced career path. The program allows Representatives to obtain earnings from commissions based on sales made by the Representatives that they have recruited and trained, as well as profits derived from their own sales of Avon's products. The program limits the number of levels on which commissions can be earned to three and continues to focus on individual product sales and service to customers by Leadership Representatives. The development of the Avon Leadership Program throughout the world is one component of their longterm growth strategy.

Design of Territorial Structure:

Avon Products, Inc. markets its products to women in well over 100 countries through over 5 million independent Avon Sales Representatives.

From research and development and manufacturing to sales management, marketing, customer service and their many other operations, our 42,000 Avon associates worldwide

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play an integral role in their success. They attract passionate and dedicated individuals from every market, and they seek to help them to reach their highest potential as part of their team. They recognize that every associate brings unique skills and experiences to their organization, and they seek to leverage these differences in the most effective ways possible. Just as they unite their associates through their similarities, they also recognize and appreciate their differences and seek to create an environment conducive to individual and collective excellence. They are committed to maintaining a work environment that affords all associates opportunities for development and advancement. Their vision is for all associates to feel comfortable enough to contribute their thoughts and ideas for the mutual benefit of all associates and the organization. They are also committed to maintaining a culture that supports associates as they balance their many and sometimes competing, professional and personal responsibilities. Because they seek to leverage the diversity of all of their associates, diversity and inclusion are fully embedded in their corporate culture. Andrea Jung, now in her ninth year as their chairman and CEO, is consistently recognized not only for the vision and perspective she brings to the company, but also as one of the foremost executives and one of the most powerful women in business. Her leadership and example are an inspiration to all Avon employees as they strive for own personal excellence.

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Sales force management:

It is utterly important to manage the sales force around which Avons entire business depends. Sales representatives are the heart and soul of Avon and thus it is necessary to make them understand their goals and targets, motivate them, review their performance-all after choosing the right person through recruitment facilities: Setting targets : Individuals and teams are specifically given sales goals and increasing the number of new accounts Measures : Sales managers measure performance standards of each sales representatives by looking at whether she could sell the given set of each product category Sales Reviews : Performance will be reviewed every twice a month by our external auditing firm and with the compliance of respective regional sales manager Recruitment: Their Best Customer Could Be Their Best Recruit! Or Career council or Job Advertisement

Motivation:
The heart of Avons entire business is the sales representatives. They look for customers, make the closing sale and put their hearts into the whole process. Thus it is absolutely important that these people who represent AVON around the globe be motivated to work and put their best and think out of the box. Here are some ways how Avon motivates their employees: 1. Representatives can earn income in two ways: by selling Avon products as a traditional Representative, or by selling and also recruiting others to do the same. 2. Avon's commitment to its employees is fourfold. They set themselves high standards in:

Compensation Competitive programs that reward associates for individual performance and their contribution to business objectives.

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Benefits Flexible packages that let associates select coverage that meets their individual needs and those of their families.

Professional development A wide range of on-the-job development programs to help associates reach their full potential.

Workplace environment At the heart of Avon are management practices that further our values of respect for the individual.

3. Sales Representative Success Stories 4. Retirement Plan: Although Representatives are independent contractors, not employees of Avon Products, Inc., a few years ago they made the decision to provide Representatives with the opportunity to participate in a retirement savings plan, which is the first of its kind in the direct sales industry. Participation in the Plan is completely voluntary and is available to Representatives who are in good standing with Avon and meet certain other criteria. In developing and managing the Savings Plan, Avon entered into an arrangement with FN Benefits Service Corp., a subsidiary of First Niagara Financial Group. The Savings Plan is designed to provide a convenient method for Representatives to save for retirement and is intended to meet the Internal Revenue Code requirements as a tax-qualified, profit-sharing plan. 5. Micro Enterprise: Avon has been a driver in microenterprise for more than a century. Today, Avon Representatives collectively earn approximately $6 billion each year and serve 300 million women in more than 100 countries. For as little as $10 down, a new Representative receives information and materials to begin a successful business selling Avons products, including the first shipment of products on credit. Representatives do not pay Avon until they are paid by their customers. To this end, they entrust over $1 billion in products and credit to Representatives at any given time during the year. This process enables many women,

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who otherwise might not have access to credit, to pursue their personal financial goals. Their business model, built upon unwavering confidence in their Representatives, makes Avon a leader in the direct selling market. They strive to foster strong, trusting relationships with the Representatives to ensure that the business remains profitable and the customers remain satisfied.

SWOT analysis:
STRENGTHS Design to meet the unique demand and culture of each geographic region Strong financial position on the international market Established customers and those in developing market offer the greatest potential for increasing their customer base. Opportunities Target key market such as Poland, Vietnam, Cambodia, Czech Republic and Hungary where there is high potential for growth in the near future Other Domestic Distribution Channels More Distribution Partnerships with companies like Mattel World Inflation is causing a great threat for operating in the worldwide market Rapidly increasing interest rates Threats Government implemented exchange control and fixed exchange rate Compelling market problem is the erosion of their core customer WEAKNESS Poor marketing and advertising strategies

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Changing Marketing Strategy

As AVON has been dealing with a worldwide market segments they have to be dynamic and must have the ability to adapt and change their market strategies every now and then. Some of the strategies they are trying to undertake are: Change # 1: Refocus product lines to relate more with the core businesses activities. Constant Price Cuts to the minimum level. Leadership bonuses for sales people based on the sales of people they recruit. Change #2: Catalogue with toll-free number, designed for median age 38, held income > $45,000, extensive advertising, and executive layoffs.

Change #3: Switched to distribution through retail stores, whereby their original strength was to avoid retail stores giving more emphasis on the direct sales Cut product line by 30% those who are generating a threatening amount of revenues. Creating both global brands and standardized brands.

Marketing Strategy Marketing Strategies can be divided into two ways: 1. Domestic Marketing Strategy : Consistency in Marketing Strategy Better Positioning Distinctive Product Line Better Sales Force Incentives Better Coordination

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2. International Marketing Strategy : Stick with selling to Retailers in different countries as like the environment. Such as China because its less risky. Expect to sell smaller volumes to many customers due to Economics of this country Different Products to Appeal to this Market Develop more Partnerships with companies like Mattel

Corporate Social Responsibilities :

Avon has been committed to advancing women since the company was founded in 1886, and philanthropy has always been a strong part of our heritage. In 1955 the company formalized philanthropic efforts with the creation of the Avon Foundation, which advances the mission to improve the lives of women and their families. The Avon Foundations first grant, more than half a century ago, was a single scholarship of $400. The Foundations main efforts are today focused on the critical issues of breast cancer and domestic violence, and Avon global philanthropy is advancing these causes in more than 50 countries. As committed global citizens, Avon and the Avon Foundation also support emergency and disaster relief, while a scholarship program for Avon associates and Sales Representatives maintains the tradition of supporting education.

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Economic Empowerment

At Avon, people are proud of the longstanding commitment to helping women achieve financial independence. For 123 years, they have demonstrated their message of womens empowerment at every level and in every market that Avon serves. Beginning with Mrs. P.F.E. Albee, who pioneered their now-famous direct-selling method in 1886, they have given tens of millions of Avon Independent Sales Representatives (Representatives) the opportunity to generate wealth, provide for their families and realize their personal dreams.

Speak Out Against Domestic Violence and Women's Empowerment Fund

The Avon Foundation launched the Speak out against Domestic Violence program in 2004 to help end the cycle of domestic violence, and since that time the program has expanded globally, helping change the landscape of the domestic violence issue around the world. By 2009, Avon domestic violence and women's empowerment programs have launched in 45 countries worldwide. Through 2008, in the United States more than $11 million has been awarded to nearly 400 U.S. domestic violence organizations for awareness, education, direct services and prevention programs, especially to assist children affected by domestic violence.

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Domestic violence affects one in three women worldwide. Funds are raised through special events as well as the sale of fundraising products, such as a candle and bracelet, with all proceeds above cost of goods donated to the cause.

Emergency and Disaster Relief

The Avon Foundation and Avon Products, Inc. together respond to national and international emergencies, and since 2001 have committed $17.5 million for women and their families affected by events such as the attacks of September 11, 2001, the 2004 tsunami in Southeast Asia, Hurricanes Katrina and Rita in the United States and the 2008 Chinese earthquake. In addition, the Avon Yellow Ribbon Fund assists the families of military service personnel lost or wounded in Iraq and other conflicts.

Hello Tomorrow Fund

Taking the Avon commitment to economic empowerment in a new direction, the Hello Tomorrow Fund was launched in early 2007 to provide cash awards to individuals committed to empowering women or girls. Originally created as a one-year program to mark International Womens Day, the program in the United States was extended for a second year, and Hello Tomorrow Fund programs have also flourished in more than a dozen countries worldwide. At Avon, they believe that given the resources, women can

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impact their lives, families and communities in meaningful wayswomen can change their world. It is in this spirit that we created the Hello Tomorrow Fund. From April 2007 through April 2009, the U.S. Hello Tomorrow Fund will award $5,000 every week to an individual who has submitted a compelling application to help realize a program, project or idea that empowers women and ultimately improves society. More than 8,000 U.S. individualswomen and menhave applied for the 104 weekly awards. Similar programs of varying award frequencies and amounts are empowering women worldwide as well.

HELLO GREEN TOMMORROW:

Avon Products, Inc. launched Hello Green Tomorrow to empower a global womens environmental movement to nurture nature, leveraging our unique ability to educate, engage and mobilize worldwide through our women-to-women network of over 6 million Sales Representatives. Every dollar plants a tree. They started with a contribution of $1 million to plant 1 million trees in South America's Atlantic Rainforest. So far they are at 2 million trees and counting, which restores 5,000 acres. They need everyones help to plant millions more...for today and for the generations ahead

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Avon products are good or bad? Best Answer They can be good because the price is better than Mary Kay. It all depends how certain people react to the products.

Beauty for over 120 years

Avon is the Number 1 Beauty Direct Seller in the World, a Beauty Icon and as one of the worlds largest micro-lenders Avon, extends credit to numerous Sales Representatives on its first order across the globe.

With More than 60 lakh Representatives in over a 100 countries, Avon has understood that successful selling is about people connecting with people. Thats our spirit. In every country where we do businessin every community, Avon is committed to making a difference.

Avon is a Top 100 global brand, with over Rs. 48,000 crores in annual revenue globally. It is also ranked as one of Americas most admired companies for more than a decade.

As a philanthropy Leader, Avon Foundation has raised and awarded more than Rs. 3200 crores worldwide towards vital issues- breast cancer, domestic violence and emergency relief affecting lives of women and their families worldwide.

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Being a socially responsible company, Avons record of innovation goes back to its beginnings. And Avon understands its responsibilities to the world as well as to its customers. Avon was the first beauty company to announce a permanent end to animal testing.

Avon is empowering women since 1886. It has been building bonds with women, offering them a dynamic earnings opportunity to achieve economic independence, accomplish their financial goals and transform their lives.

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OBJECTIVES

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OBJECTIVES OF THE STUDY

In this project the study of buying behaviour by the consumers regarding various skin care and beauty products offered by Avon has been conducted. The objective of the study is to find out that how much preference the consumers give to AVON PRODUCTS INC. and how much to other brands for skin care and beauty products.

Objectives: 1. To study the consumer awareness regarding the skin care and beauty products offered by AVON PRODUCTS INC. 2. To study the level of satisfaction for avon products existing among the population of Ludhiana city. 3. 4. To study the factors which tend to the sale of Avon Products inc. To study the effect of various promotional and discount offers increasing the sales of Avon.

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NEED OF THE STUDY

The available researchers do not provide the proper information about the behaviour of customers towards branded Avon products. So this study is aimed to know the awareness of skin care and beauty products among the peoples, why Avon products are preferable as compare to other skin care and beauty products to study the psychology of consumers behind the purchase of skin care and beauty product of Avon.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY:
This chapter describes the research methodology adopted for the study. It includes methodology, scope and limitation of the study.

(A)

RESEARCH DESIGN Research design is purely and simply the framework or plan for a study

that guides the collection and analysis of data. It is a blue print that is followed in completing a study. Survey method has been followed:

(B) (1) (2) (1)

DATA COLLECTION Primary data Secondary data PRIMARY DATA Primary data is defined as the data which is collected from the source

itself. It is new in nature. It is generated when a research investigates a particular item. For this report following method was used:-

QUESTIONNAIRE: For collection of data in various studies, questionnaire method is most popular. For this report also, this method was used. The respondents without any interference filled the questionnaire. (2) SECONDARY DATA In this study information from some websites have been used. It also includes going through various research available on the net.

(3)

SAMPLING PLAN Sampling unit Sampling size Contact method : : It consists of investors 100 people were selected for the study. : The respondents were personally interviewed.

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ANALYSIS AND INTERPRETATION

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ANALYSIS AND INTERPRETATION

Q.1
Do you use any skincare and beauty products? Particulars Yes No Total No. of Respondents 100 0 100

0%

Yes No 100%

Interpretation:
From the above data we get to know that all the 100% respondent from the sample study, uses skin various care and beauty products.

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Q.2

Which skin care and beauty products you generally prefer to use?

Particulars Avon Revlon Lakme Oriflame Loreal Maybelline Olay Others Ponds Garnier Lotus Total
60 60 50 40 30 20 10 0 6 5 8

No. of Respondents 60 6 5 8 7 5 4 5

100

Interpretation: The above data reveals that out of 100 sample respondents, 60 uses Avon, 6 use Revlon, 5 use Lakme, 8 use Oriflame, 7 use Loreal, 5 use Maybelline, 4 use Olay and 5 use other brands for skin care and beauty products.

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Q.3

Are you satisfied with your current skin care and beauty products which you are using?

Particulars Satisfied Highly satisfied Dissatisfied Highly dissatisfied Neutral Total

No. of Respondents 60 20 6 3 11 100

60 60 50 40 30 20 10 0 Satisfied Highly satisfied Dissatisfied Highly dissatisfied Neutral 6 3

20 11

Interpretation: The above data shows that out of 100 respondent who use various skin care and beauty products, 60 are satisfied, 20 are highly satisfied, 6 are dissatisfied, 3 are highly dissatisfied and 11 derive neutral satisfaction from various skin care products they use.

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Q.4

How much money do you spend on purchase of these products monthly? Particulars Less than Rs.500 Rs.500-Rs.1000 Rs.1000-Rs.1500 Rs.1500-Rs.2000 Above Rs.2000 None Total No. of Respondents 10 50 10 20 10 0 100

50 50 45 40 35 30 25 20 15 10 5 0

20 10 10 10 0

Interpretation: Out of 100 respondents we get to know that 10 spend less than Rs.500 of their monthly income on various skin care and beauty products, 50 spend Rs.500 Rs.1000 of their monthly income, 20 spend Rs.1500-Rs.2000 and 10 spend more than Rs.2000 of their monthly income on various skin care and beauty products.

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Q.5

Are you satisfied with the price of you current skin care and beauty products which you are using?

Particulars Yes No Neutral Total

No. of Respondents 40 20 40 100

40%

40% Yes No Neutral 20%

Interpretation: The above data depicts that out of 100 people who use various and skin care and beauty products, 40 are fully satisfied with the price of their current beauty product, 40 derived neutral satisfaction and 20 are not satisfied with the price of their current skin care and beauty product.

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Q.6

Do you use various range of Avon skin care and beauty products?

Particulars Yes No Total

No. of Respondents 60 40 100

40% Yes No

60%

Interpretation: From this question we get to know that out of 100 respondents, who uses various skin care and beauty products, 60% use Avon products and 40% uses other skin care and beauty products as also revealed in Q.No.2. As out of 100 respondents 60 use Avon Skin Care and beauty Products and 40 use Other Skin care and beauty products. So further all the data is based on these 60 respondents, who use Avon products.

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Q.7

If yes, how often you use these products?

Particulars Occasionally Weekly Daily Total

No. of Respondents 20 15 25 60

25 25 20 15 10 5 0 Occasionally Weekly Daily 20 15

Intrepretation: The bar diagram depicts that out of 60 respondents who consume Avon products, 20 use these product occassionally, 15 use weekly and 25 use it daily.

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Q.8

Are you satisfied with the quality provided by various range of Avon products?

Particulars Satisfied Highly satisfied Dissatisfied Highly dissatisfied Neutral Total

No. of Respondents 22 23 4 2 9 60

25 20 15

22

23

9 10 4 5 0 Satisfied Highly satisfied Dissatisfied Highly dissatisfied Neutral 2

Interpretation: The above data depicts that out of 60 user of Avon Skin Care and Beauty products, 22 are satisfied, 23 are highly satisfied, 4 are dissatisfied, 2 are highly dissatisifed and 9 derive neutral satisfaction for the various range of Avon products.

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Q.9

Do you think the price of Avon products is satisfactory?

Particulars Yes No Neutral Total

No. of Respondents 30 5 25 60

30 30 25 20 15 10 5 0 Yes No Neutral 5 25

Interpretation: The above data reveals that for the prevailing price of Avon products, out of 60 respondents, 30 are fully satisfied, 5 are not satisfied and 25 have neutral level of satisfaction.

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Q.10

From the following range of products provided by Avon, which products you prefer to buy? Skin Care Lip colours Foundations Eyeshadow Nail paint Lip balms Concealers Mascara Eyes liners Body lotion Fashion & Jewellery Earings Necklines Watch Handbags Bracelets Rings Sunglasses Toiletries Soaps Tooth Brush Shampoos Conditioner Face wash Foot cares Perfume Deodorant Healthcare Weight Loosing Creams Facial Capsules Skin care creams Anti aging product

Interpretation: The survey shows that from the above various range of skin care and beauty products by Avon, people highly recommend Skin care Lip colours, eyeliners, Kajal, Mascara, Lip Balms Fashion and Jewellery Handbags, Sunglasses, Necklines, Earings Toiletries Foot cares, face wash, deodorant, shampoos and conditioners Health care skin care creams and anti-age products.

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Q.11

Is any of these above Avon products you always carry in your handbag?

Particulars Yes Body spray Lip colour Kajal Lotion Nail paint No Total

No. of Respondents 45

15 60

No, 15

Yes, 45

Interpretation: From the above pie chart we analyze that out of 60 respondents who use Avon Skin care and Beauty products, 45 carries these product in their handbags and 15 do not carries it with them always.

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Q.12

Are you attracted by the various promotional schemes provided by the Avon on their products?

Particulars Yes No Neutral Total

No. of Respondents 40 8 12 60

40 40 35 30 25 20 15 10 5 0 Yes No Neutral 12 8

Interpretation: For the various promotional schemes, as the above data reveals, out of 60 respondents, 40 are attracted to these promotional schemes adopted by Avon and 8 are not attracted towards it and 12 are attracted at neutral level towards these various promotional schemes on avon products.

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Q.13

If yes, which promotional schemes attract you the most? Particulars Discount offers Buy one get one free Free membership Free gifts None Total No. of Respondents 14 12 8 18 8 60

18 18 16 14 12 10 8 6 4 2 0 Discount offers Buy one get Free one free membership Free gifts None 8 8 14 12

Interpretation: The above data reveals that for the various promotional scheme adopted by Avon, the discount offers are favoured by 14 respondents, by one get one free are favoured by 12 respondents, free membership by 8 respondents, freed gifts by 18 respondents and 8 respondents are not attracted by any of these promotional schemes.

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Q.14

Which medium of promoting Avon products you feel the best? Particulars Member Networking E-commerce Word of mouth Total No. of Respondents 37 10 13 60

40 35 30 25 20 15 10 5 0

37

13 10

Member Networking

E-commerce

Word of mouth

Interpretation: The above bar diagram depicts that from the various medium adopted by the Avon for its promotion, member networking is prefered by maximum respondents out of 60 i.e. 37 respondents, e-commerce prefered by 10 respondents and word of mouth by 13 respondents.

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Q.15

Give suggestions about the futuristic plans that the Avon should adopt to increase their sales and to satisfy the maximum customers.

Ans.

At the end suggestions by the respondents are taken regarding the futuristic plans that the Avon should make to increase the sales of their various skin care and beauty products:-

The company should provide more discount offers on their products Avon Inc. should use the advertising media through TV and other modes to make aware more customers about their new products and schemes provided by Avon. In Avon booklets, the size of product should be shown as same as the size of original product. The company should provide exchange offers for their product to their customer.

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FINDINGS
All the respondents who are in my survey use various skin care and beauty product. Maximum respondents derive normal satisfaction from their current skin care and beauty products which they use. Maximum respondents falls in the category of spending Rs.500-Rs.1000 of their monthly income on their skin care and beauty products. 60% respondents uses Avon products and 40% uses other products such as Revlon, Lakme, Oriflame, Loreal, Mabelline, Olay, Lotus etc. The respondents who use Avon Skin Care and Beauty product has maximum uses in day to day routine. Maximum respondents are highly satisfied with the quality provided by various range of Avon products and also with the price of these products. From the various range of Avon products inc., people mainly prefer Lip colours, nail paints, eyeliner, body lotions, handbags, necklines, earings, shampoos, conditioners, foot cars, skin care creams and anti aging products. From the various promotion schemes adopted by Avon, maximum respondents are attracted by these schemes such as discount offers buy one get one free gifts etc. For the medium of promoting Avon products, maximum respondent has ranked member networking at higher level, then word of mouth and then e-commerce. In my survey, major respondent prefer to buy Avon skin care and beauty product but other brands are also prefered by many respondents.

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LIMITATIONS AND SCOPE

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LIMITATIONS OF STUDY
1) 2) Time constraints There could be error in the analysis, which could have crept into due to lazy respondents, statistical process, human error and other factors. 3) Third party products have not been included while checking the satisfaction level of the customers. 4) It was difficult to convince the respondents that the information provided by them was to be used for the study purpose only.

SCOPE OF STUDY
The study was restricted to the study of Ludhiana only.

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CONCLUSION

1. 2. 3. 4. 5. 6. 7.

Most of the respondents spend Rs.500-1000 for their routine cosmetics. Most of the respondents as satisfied with the prices their brand offers. Most of the respondents prefer Avon as their brand. Most of the respondent consider cosmetics product as a necessity. Most of the respondents carry Lip gloss-Lip liner-Mascara in their hand bag. Most of the respondents are satisfied with the brand they use. Most of the respondents prefer lip gloss and lip balm as their favourite lip cosmetic in avon range of skin care and beauty products

8.

Most of the respondents use the brands they have used before.

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BIBLIOGRAPHY

Books
Research Methodology by C.R. Kothari Milady's Standard Cosmetology Book

Magazines
Vogue Cosmopolitian Femina Avon booklets

Websites
www.bestincosmetics.com www.google.com www.lakme.com www.loreal.co.in www.avon.co.in en.wikipedia.org

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ANNEXURE

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QUESTIONNAIRE
Hi I am Arshpreet Kaur Sandhu from BBA-Final year, Khalsa College for Women, Ludhiana. I am preparing a survey on Consumer preference for Avon products. Please help me by filling out the following questionnaire.

PERSONAL INFORMATION
Name Age Gender Occupation Income : : : : :

Q.1

Do you use any skincare and beauty products? Yes No

Q.2

Which skin care and beauty products you generally prefer to use? Avon Oriflame Olay Revlon Lo-real Lakme Maybellin

Others, please specify____________

Q.3

Are you satisfied with your current skin care and beauty products which you are using? Satisfied Dissatisfied Neutral Highly satisfied Highly dissatisfied

Q.4

How much money do you spend on purchase of these products monthly? Less than Rs.500 Rs.1000-Rs.1500 Above Rs.2000 Rs.500-Rs.1000 Rs.1500-Rs.2000 None

Q.5

Are you satisfied with the price of your current skin care and beauty products which you are using? Yes No Neutral

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Q.6

Do you use various range of Avon skin care and beauty products? Yes No

Q.7

If yes, how often you use these products? Occasionally Weekly Daily

Q.8

Are you satisfied with the quality provided by various range of Avon products? Highly satisfied Satisfied Dissatisfied Highly dissatisfied Neutral

Q.9

Do you think the price of Avon products is satisfactory? Yes No Neutral

.10

From the following range of products provided by Avon, which products you

prefer to buy? Skin Care Lip colours Foundations Eyeshadow Nail paint Lip balms Concealers Mascara Eyes liners Body lotion Fashion & Jewellery Earings Necklines Watch Handbags Bracelets Rings Sunglasses Toiletries Soaps Tooth Brush Shampoos Conditioner Face wash Foot cares Perfumes Deodorant Healthcare Weight Loosing Creams Facial Capsules Skin care creams Anti aging products

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Q.11

Is any of these above Avon products you always carry in your handbag? Yes No Please specify ______________

Q.12

Are you attracted by the various promotional schemes provided by the Avon on their products? Yes No Neutral

Q.13

If yes, which promotional schemes attracts you the most? Discount offers Free membership Buy one get one free Free gifts

Other please specify _______________________. Q.14 Which medium of promoting Avon products you feel the best? Member Networking Word of mouth Q.15 Give suggestions about the futuristic plans that the Avon should adopt to increase their sales and to satisfy the maximum customers. E-commerce

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