Running head: Avon Online Consulng 1
Continuous Performance Project
DeJa Anderson
Avon: Online Consulting
Northwestern State University
IET 3100
December 1, 2016
AVON ONLINE CONSULTING 2
ASSIGNMENT SUMMARY
For years, Avon Products Inc., has been branded as “a company for women”. Avon, a
frontrunner in the cosmetic commerce, has brought beauty and poise into the lives of women
since the late 1800s. Founded by David McConnell his mission was to empower women based
upon his three key principles: trust, respect, and integrity; these values has remained at the core
of all forthcoming business endeavors. Utilizing McConnell’s principle, Avon became a capital
in the beauty industry with over $10 Billion in sales making them the largest direct seller in the
world.
After completing extensive research on the company utilizing numerous online tools,
journals, articles and texts, I have composed adequate evidence as to how Avon can continue its
global expansion, whilst maintaining company objectives and staying within core competencies.
I believe Avon can and should expand strategically with the objective of increasing revenue and
promoting brand loyalty into leveraging the power of technology and the Internet to increase
business through social networks and launching a new online consulting feature to their website.
This online consulting feature will pierce the cosmetic market by nourishing the desires
of novice makeup wearers seeking instructional advice. This promotional strategy will succeed
because it highlights Avon’s strengths as a company who values personalized customer service
and innovative technology; nonetheless, this strategy will grow the customer base while
upholding its mission to empower women worldwide.
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OVERVIEW
History and Background
In 1886, thirty-four years before women in the U.S., were granted the privilege to vote,
David H. McConnell had a peculiar idea of opening a business solely-based upon the foundation
of providing women an opportunity to earn money and encourage financial liberation. That one
idea led to the formation of Avon, a company with over six million ambassadors in over 100
countries across the globe, currently, Avon is a leading global beauty company, with over $10
billion in annual revenue and also the world’s largest direct seller. Avon’s product line includes
beauty products, skin care items, perfume for women and men, fashion and home products, and
also their very own brand names such as Avon Color, Anew, Skin-So-Soft, Advance Techniques,
and Avon Naturals. (Avon, 2010).
MISSION STATEMENT
The Global Beauty Leader
We will build a unique portfolio of Beauty and related brands, striving to surpass our
competitors in quality, innovation and value, and elevating our image to become the Beauty
Company most women turn to worldwide.
The Women’s Choice for Buying
We will become the destination store for women by offering various brands, channels,
and providing each women with an individual shopping experience that helps create lifelong
customer relationships.
The Largest Women’s Foundation
We will be a committed global champion for the health and well-being of women through
generous efforts that eliminate breast cancer and empower women to achieve economic
AVON ONLINE CONSULTING 4
independence. We will deliver superior returns to our shareholders by pursuing new
opportunities while frequently improving our profitability, a socially responsible, ethical
company that is watched and emulated as a model of success” (“Corporate Responsibility
Report”, 2009).
BUSINESS ANALYSIS
Core Competencies
Stronger brand.
Avon’s iconic brand has 90% awareness across the globe and sells four lipsticks every
single second of the day. To maintain that advantage, Avon has exalted their emphasis on
innovation and withstood advertising investment, even in the face of macroeconomic challenges
that other beauty organizations were enduring.
Stronger channel.
Avon’s Sales Leadership is being utilized in approximately 50 countries worldwide in
which representatives earn money by both selling and recruiting. They have also launched a
global internet platform in effort to help Representatives create and manage their businesses
online.
Stronger organization.
The company has made substantial growth in its development from a coalition of local
businesses to a fully unified matrix of global and commercial business units. Avon has
successfully leveraged its global force in marketing, sales and supply chain, while also remaining
flexible and receptive to consumers and ambassadors. (Avon, 2010)
STRENGTHS AND WEAKNESSES
AVON ONLINE CONSULTING 5
Strengths
●Mission to empower women
●Direct selling strategy through sales
representatives
●Personalized customer service
●Customer loyalty
●Affordable prices
●First-to-market skin care technologies
Weaknesses
● Unavailable in stores
● Takes time for sales representatives to
coordinate with stores
● Low demand for long-term career as
sales representative
● Inability to test products
● Prices too low
EXTERNAL ENVIRONMENT
Economic Environment
Though makeup may be perceived as an essential to some, it is important to consider the
