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hARK11hC CAhhLS AhL 1 SLPPLY CA1h.
Av0h`S Sh-PRS0h S1R0hC L1S1R1L110h h1W0RK

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0c1obc !8. !011

Avon 1nvcn1cd 1hc conccp1 o! d1cc1 makc11n and d1cc1
sc111n bcau1y. And 1ha1`s s1111 vcy va11d 1o us. Wc`11
havc a !1m 1ha1 W111 bc aound !o ano1hc 114 ycas as
s1on1y as 11 Was 1hc !1s1 114.


-AhLRA JLhC. C0. Av0h PR0LLC1S. 1nc.


Foundcd 1n 1888. Avon Poduc1s. 1nc. {Avon) 1s 1hc Wo1d`s 1acs1
d1cc1 sc11c o! bcau1y and bcau1y-c1a1cd poduc1s. W11h S10.9
b1111on 1n annua1 cvcnucs 1n !010. Avon and 11s appox1ma1c1y
4!.000 Assoc1a1cs noW scvc va1ucd cus1omcs 1n moc 1han 100
coun11cs Wo1dW1dc. 1hc company`s p1may d1s11bu11on channc1 1s
d1cc1 sc111n 1houh appox1ma1c1y 8.S m1111on Avon Sa1cs
Rcpcscn1a11vcs.
1



A.PR0Lh S1A1hh1

Locs Avon`s d1cc1-sc111n s1a1cy nccd a makcovc bc!oc 11
s1a1s cak1n 11kc a bad makcup?


.SW01 AhALYS1S
S1cn1hs
Avon has a s1on d1cc1 makc11n channc1. 1hc mos1
c!!cc11vc d1cc1 makc11n 1akcs p1acc Whcn 1hcc 1s a c1ca
conncc11on 1o cach 1hc 1ac1 makc1. Avon Was ab1c 1o ach1cvc
1h1s 1houh 11s 8.S m1111on Avon Sa1cs Rcpcscn1a11vcs. 1n
pa11cu1a. Avon 1s do1n Wc11 aboad 1n s1111-dcvc1op1n
makc1s 11kc La11n Amc1ca Whcc 11 ach1cvcd an 1nccasc 1n
cvcnuc o! ovc S400 m1111on 1n !010.
!
Compan1cs cnacd 1n
d1cc1 sc111n ac succccd1n by us1n many o! 1hc samc
1cchn1qucs 1ha1 Wokcd c1scWhcc. ana1ys1s say. 1hcy o!1cn
ccu11 youn Womcn and 1a1n 1hcm 1o sc11 acss1vc1y.

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1company1n!oma11on.h1m1
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1company1n!oma11on.h1m1
ALv1h Ah10hY C CLZhAh 0c1obc !8. !011

pa11cu1a1y 1o !1cnds and !am11y mcmbcs.
3
1n a coun1y Whcc
Womcn ac ycan1n !o oppo1un111cs 1o s1a1 1hc1 oWn
bus1ncsscs. a company 11kc Avon. Wh1ch c!1cc1s 1hc mcssac o!
!cma1c cmpoWcmcn1 and !cm1n1n11y. sccms 1o csona1c 1n La11n
Amc1ca.
Avon has an c!!1c1cn1 supp1y cha1n. 11s ccn1a11zcd
manu!ac1u1n cduccs cos1 and poduccs h1hc cvcnucs. Fo 11s
bcau1y and bcau1y-c1a1cd poduc1s. Avon u1111zcs bo1h company-
oWncd manu!ac1u1n !ac11111cs and 1h1d-pa1y supp11cs 1o
soucc 11s poduc1s !o consumcs aound 1hc Wo1d. 1n a11.
Avon`s supp11cs cucn11y numbc appox1ma1c1y 18.000 and ha11
!om S0 coun11cs. 1h1y-n1nc pcccn1 o! ou bcau1y poduc1s
ac manu!ac1ucd 1n Avon-oWncd !ac11111cs. 1h1d-pa1y
manu!ac1ucs supp1y 1hc cma1n1n 11 pcccn1 o! 1hc1 bcau1y
poduc1s.
4


mp1oy1n a d1!!ccn11a1cd bus1ncss modc1. Avon 1s 1hc
Wo1d`s 1cad1n d1cc1 sc11c o! cosmc11cs. !aanccs. and
1o11c11cs. As 1hc Wo1d`s 1acs1 d1cc1 sc11c. Avon makc1s
1o Womcn 1n moc 1han 100 coun11cs 1houh appox1ma1c1y 8.S
m1111on ac11vc 1ndcpcndcn1 Avon Sa1cs Rcpcscn1a11vcs.
S


Avon has a s1on manacmcn1 1cam. Andca Jun Was 1hc
ca1a1ys1 o! chanc 1n 1hc company a!1c hav1n pcscn1cd a
da1n v1s1on !o Avon 1o bc 1hc u111ma1c c1a11onsh1p makc1c
o! poduc1s and scv1ccs !o Womcn Wh1ch a1 !1s1 sccmcd
1mp1aus1b1c. Shc Was numbc !1vc on Fo1unc`s !009 11s1 o! S0
hos1 PoWc!u1 Womcn 1n us1ncss. numbc !S on Fobcs`s 100
hos1 PoWc!u1 Womcn. and cons1s1cn11y 1uns up on 1hc Wa11
S1cc1 Jouna1`s S0 Womcn 1o Wa1ch.
8
A!1c Avon`s
coan1za11on. 11 cmp1oycd cxccu11vcs !om 1ac. moc
ana1y11ca1 consumc-poduc1s compan1cs such as C111c11c. P&C.
Pcps1Co. and Ka!1.
7


Avon Was ankcd #8S as bcs1 1oba1 band by 1n1cband. a
band consu11ancy !1m. 1n 1hc ank1ns. 11 1s sccond 1o an
1nd1cc1 compc111o. L`0ca1. Avon saW a cspcc1ab1c s1x pcccn1
1nccasc. dcsp11c dopp1n s11h11y 1n ou ank1ns. 1ac1y duc
1o 11s d1cc1 sa1cs modc1 and an cvc-cxpand1n Wok!occ 1ha1
1s pa11cu1a1y Wc11 su11cd 1oWad cmc1n makc1s.
8

3
h11p.11WWW.ny11mcs.com1!00911!1!81bus1ncss11oba11!8maykay.h1m1
4
h11p.11avoncompany.com1copoa1cc111zcnsh1p1copoa1ccspons1b1111y1Wha1Wccacab
ou11supp1ycha1n11ndcx.h1m1
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h11p.111nvcs1o.avoncompany.com1phocn1x.zh1m1?c=9040!&p=1o1-1Romc
8
h11p.11WWW.Wok1nWo1d.com1a11c1cs1oW-Andca-Jun-ouh1-Avon-1n1o-1hc-
!1s1-Ccn1uy
7
hasha11. Cc W. & Johns1on. hak W. {!009). hakc11n hanacmcn1. uopc.
hcCaW-111. p.431.
8
h11p.11WWW.1n1cband.com1cn1knoW1cdc1bcs1-1oba1-bands1bcs1-1oba1-bands-
!0081bcs1-1oba1-bands-!011.aspx
ALv1h Ah10hY C CLZhAh 0c1obc !8. !011

Wcakncsscs
Avon 1s cxpc1cnc1n a dcc11nc 1n 11s Ch1na and ho1h
Amc1can opca11ons.
9
Avon has sccn moc cpcscn1a11vcs s1n up
1n ho1h Amc1ca. bu1 Womcn ac spcnd1n 1css moncy. ho1h
Amc1can cvcnuc !c11 7 pcccn1 1n 1hc !ou1h qua1c and 9
pcccn1 1n !009. 1n !008. ho1h Amc1can cvcnuc !c11 S
pcccn1.
10

c1n 1hc 1cad1n d1cc1 pov1dc o! 11s poduc1 11ncs.
Avon has !ound 11 vcy d1!!1cu11 1o d1s11bu1c 11s poduc1 11nc
1houh non-d1cc1 mc1hods. A11 c!!o1s 1o o aound 11s
Wo1dW1dc !1cc1 o! sa1cs cpcscn1a11vcs havc bccn mc1 W11h
cs1s1ancc by 11s cpcscn1a11vcs. 1hc !a11cd a11cmp1 o! Avon 1o
opcn a c1a11c channc1. 1n a111ancc W11h J.C. Pcnncy 1n !003.
1s an cxamp1c. J.C. Pcnncy sa1d F1day 11 W111 s1op sc111n
cosmc11cs !om Avon Poduc1s. dca11n ano1hc b1oW 1o 1hc bcau1y
poduc1 company`s c!!o1 1o sc11 1houh a c1a11c a1hc 1han
d1cc11y 1o consumcs.
11

A11houh Avon 1s 1hc company !o Womcn. mcn dom1na1c 11s
cxccu11vc dcpa1mcn1. hany o! 1hc1 1op manacs and cxccu11vcs
havc a1Ways bccn Womcn. bu1 un111 Andca Jun Was c1cva1cd 1o
C0 pos111on. moc mcn havc bccn 1n chac o! 1cadcsh1p 1n 1hc
company. 1h1s m1h1 no1 bc 1hc bcs1 s1a1cy bccausc 1hc1
cus1omc basc 1s p1ma11y madc up o! Womcn. A Woman`s
pcspcc11vc may bc nccdcd 1o bc11c a11oW 1hc company 1o oW.
1hcc ac on1y !1vc Womcn and !1!1ccn mcn 1n Avon`s cxccu11vc
dcpa1mcn1.
1!

0ppo1un111cs
hcW 1cchno1oy 1s an oppo1un11y !o Avon 1o usc 1o
1nnova1c 11s supp1y cha1n and 11s poduc1s. Chanc 1s a1 1hc
coc o! any bcau1y bus1ncss - sh1!11n 1cnds and 1as1cs.
scasona1 co1o pa1c11cs and !ocvc-1mpov1n 1cchno1oy.
13

Avon c1s 70 o! 11s sa1cs ou1s1dc 1hc Ln11cd S1a1cs. much
o! 1ha1 !om s1111-dcvc1op1n coun11cs.
14
S1ncc Avon 1s moc
succcss!u1 1n cmc1n makc1s 11 cou1d cn1c coun11cs 11kc
1nd1a and o1hc na11ons W11h soc1a1 o bus1ncss ac11v11y 1n 1hc
poccss o! ap1d oW1h and 1ndus11a11za11on.

9
h11p.11WWW.avoncompany.com1copoa1cc111zcnsh1p1copoa1ccspons1b1111y1WhoWcac
1company1n!oma11on.h1m1
10
h11p.11WWW.cu1cs.com1a11c1c1!01010411S1avon-1dLSh1S!13447!010041S
11
h11p.11WWW.usa1oday.com1moncy11ndus11cs1c1a111!003-01-31-avon-pcnncy_x.h1m
1!
h11p.11WWW.avoncompany.com1abou1avon1cxccu11vc1cadcsh1p11ndcx.h1m1
13
h11p.11WWW.avoncompany.com1abou1avon1h1s1oy1avon_d1cc1_sc11_h1s1oy.h1m1
14
hasha11. Cc W. & Johns1on. hak W. {!009). hakc11n hanacmcn1. uopc.
hcCaW-111. p.431.

ALv1h Ah10hY C CLZhAh 0c1obc !8. !011

xp1oc oppo1un111cs 1ha1 Wou1d comp1cmcn1 11s coc
bcau1y d1cc1-sc111n bus1ncss by acqu11n bands 1ha1 Wou1d
boadcn 11s poduc1 po1!o11o.
1hca1s
Avon`s 1cad1n compc111os 1n 1hc Cosmc11c. Faancc and
1o11c1y 1oba1 makc1 ac L`0ca1. Poc1o and Camb1c. s1cc
Laudc. 1n11ma1c ands. A1bc1o-Cu1vc. Co1y. Lvh. Johnson &
Johnson. Rcv1on. and hay Kay. Somc !ocuscd cxc1us1vc1y on 1hc
pcsona1 cac bus1ncss 11kc L`0ca1. s1cc Laudc. Co1y. Rcv1on.
and hay Kay. Fo 1hc o1hcs. 1hc pcsona1 cac bus1ncss
cpcscn1cd a pcccn1ac o! 1o1a1 copoa1c cvcnucs. W11h 1hc
cxccp11on o! 1n11ma1c ands. a11 o! Avon`s compc111os havc
bccn 1n bus1ncss !o ovc !ou dccadcs. Ln111 noW. on1y hay Kay
pc!oms 11s sa1cs cxc1us1vc1y 1houh 1hc d1cc1 sa1cs mc1hod.
Avon has bccn 1n 1hc bcau1y 1ndus1y !o 1!S ycas
a1cady. Somc Womcn. usua11y 1hc younc cnca11ons. scc Avon
as my andmo1hcs` band mak1n 1hcm c1uc1an1 1o 1y 11s
poduc1s.
Coun11cs 11kc Ch1na 1mposcs cu1a11ons on d1cc1 sc111n
ac11v111cs.
1S
Covcnmcn1 cu1a11ons cou1d cs11c1 o d1sa11oW
d1cc1 sc111n ac11v111cs. Wh1ch Wou1d 11m11 1hc oppo1un11y o!
Avon 1o cxpand.
1hc chan1n 11!cs1y1c o! Womcn. cspcc1a11y 1n dcvc1opcd
coun11cs. cou1d a!!cc1 1hc c!!cc11vcncss o! Avon`s d1cc1-
sc111n s1a1cy. hoc and moc Womcn ac c111n ou1 o! 1hc
housc and bu11d1n 1hc1 oWn caccs mak1n 11 cha11cn1n !o
Avon`s sa1cs cpcscn1a11vcs 1o 1ook !o cus1omcs. Wh1ch ac
p1ma11y Womcn Who ac homcbound.
C.RC0hhhLA110h

Avon`s s1a1cy 1o sc11 11s poduc1s 1houh a d1cc1

channc1 1s 11m111n and cou1d 1hca1cn 1hc sus1a1nab1111y o!
Avon`s oW1h. Avon cou1d u1111zc o1hc makc11n channc1s 1n
odc 1o adap1 1o 1hc cvc-chan1n 11!cs1y1c o! Womcn aound
1hc Wo1d. 11 cou1d sc1up c1a11 channc1s 1o cach cus1omcs 1n
dcvc1opcd makc1s Who cou1d no1 bc cachcd by d1cc1 sc11cs.

oWcvc. an c!!o1 1o dcvc1op 11s sa1cs 1houh a
d1!!ccn1 channc1 o1hc 1han a d1cc1 channc1 Was and W111 bc
mc1 W11h c1a11a11on by 11s 8.S-m1111on s1on sa1cs
cpcscn1a11vcs. 1o avo1d a11cna11n 11s d1cc1 sc11cs and
csu11 1n a vc11ca1 channc1 con!11c1. Avon shou1d s1cn1hcn
11s d1cc1 channc1 and !1nd a Way 1ha1 1hc d1cc1 sc11cs ac
no1 so much a!!cc1cd by 1hc addcd d1s11bu11on sys1cm.

1S
h11p.111adc1nscv1ccs.mo!com.ov.cn1cn1b1!00S-08-!31!4!8S.sh1m1
ALv1h Ah10hY C CLZhAh 0c1obc !8. !011

A1on W11h sc111n up hyb1d makc11n channc1s and
uaan1cc1n 1hc caccs o! 11s d1cc1 sc11cs. Avon cou1d
pusuc cmc1n makc1s. cxp1oc 1hc poss1b11111cs o! mccs
and acqu1s111ons. and !ocus 1hc1 c!!o1s cx1cns1vc1y on
cscach and dcvc1opmcn1 1n odc 1o dcvc1op ncW poduc1 11ncs
1ha1 su11 Womcn`s nccds.

L.C0hCLLS10h

Avon. as a 1oba1 company shou1d dcvc1op a 1on-1cm.

1oba1 s1a1cy. vcn 1! 11 has ach1cvcd c!!1c1cncy 1n 11s
supp1y cha1n 11s cucn1 makc11n channc1 1s a1 1sk o! bc1n
obso1c1c. 1hc ca111y 1s 1ha1 1hc cx1cna1 cnv1onmcn1. namc1y
cu11uc and dcmoaph1cs. o! dcvc1opcd na11ons {c.. ho1h
Amc1ca) has chancd so much 1ha1 d1cc1 sc111n o doo-1o-
doo. 1s no1 anymoc an op11ma1 d1s11bu11on channc1. Womcn 1n
1hc mao11y o! dcvc1opcd coun11cs ac mov1n aWay !om 1hc
homc and 1n1o 1hc Wok !occ mak1n Avon`s mc1hods o!
d1s11bu11n 1hc1 poduc1s moc o! an 1nconvcn1cncc 1o 1hcsc
Womcn.

1o pov1dc 11s d1cc1 channc1 assuancc. 11 cou1d 11m11
11s c1a11 channc1s 1o acas Whcc d1cc1 sc111n 1s no1 anymoc
c!!cc11vc. 11 cou1d a1so 1vc 11s d1cc1 sc11cs bc11c
compcnsa11on and bcnc!11s. Fu1hcmoc. 11 cou1d 1vc 1hc d1cc1
sc11cs an cdc by mak1n 1hc Avon poduc1s 1hcy sc11 chcapc
compacd 1o Avon poduc1s so1d 1n a c1a11 ou11c1.

1o compc1c 1n 1hc hcc11c and chao11c Wo1d o! 1hc

cosmc11c. !aancc. and 1o11c1y {CF1) 1ndus1y Avon shou1d no1
s1op 1n d1scovc1n and cn1c1n dcvc1op1n makc1s aound 1hc
1obc. 0n 1hc o1hc hand. Avon shou1d 1mpo1 conccp1s 1ha1 ac
Wok1n 1n dcvc1opcd cconom1cs. such as Japan and uopc. 1o
ho1h Amc1ca. 1n add111on. 11 shou1d con11nuc 1o 1nvcs1 1n R&L.
1nnova1c 11s poduc1s. acqu1c o mcc W11h bands 1ha1 Wou1d
cxpand 11s poduc1 po1!o11o.

L111ma1c1y. c1a11 channc1s Wou1d bc v11a1 !o Avon`s

sus1a1nab1111y and suv1va1. Avon`s d1cc1 sa1cs mc1hod may on1y
bc bcnc!1c1a1 and 1as1 un111 makc1s dcvc1op and oW 11cd o!
pcop1c sc111n a1 1hc1 doos1cps. As 1hc company !o Womcn. 11
shou1d ca11zc 1ha1 1hc Avon 1ad1cs ac s1a11n 1o 1ook
ou1da1cd and nccd a makcovc.


La1c. 0c1obc !8. !011
Subm111cd by. ALv1h Ah10hY C. CLZhAh
1L humbc. 11189487
Subm111cd 1o. Po!. JLL1 .1AhALA
Cousc. hakc11n hanacmcn1