AVON Case Analysis

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AVON Case Analysis

Organizational Mission

Avon wants to provide everyone with high quality and innovative

health and beauty products as well as financial opportunities through

sales representatives that are easily obtainable, in many ways, in

every part of the world. Avon hopes by bringing these products to

everyone everywhere through global markets the company can improve the

quality of life for anyone around the world.

Corporate Objectives

Corporate objectives bring structure to a company’s operations so

it will sustain growth, achieve its mission/vision and set the outcome

and target for the company to achieve. Corporate objectives include

financial and strategic objectives.

Financial Objectives:

Growth in Sales:

In 2001 the success of the Goodbye to Breast Cancer lipstick

campaign, inventory clearance programs, and the increase of active

representatives acquired through the successful implementation of the

Sales Leadership program resulted in revenues growing 5% from $5,682

million in 2000 to $5,958 million in 2001. The growth in sales was due

to the 9% increase in units because of the success of the programs

implemented that are mentioned above. Avon plans to increase sales

annually by continuing to recruit Leadership Representatives around

the world, utilizing the Internet to help these Representatives sell

Avon products more efficiently, and extending the Avon brand to new

products and possibly new channels. (3)

Bigger profit margins:

Lower sales in Latin America than expected and additional

strategic spending on consumer marketing initiatives caused the slight

decrease in profits for the 2001 year. The drop may have been a lot

worse if it was not offset by considerable margin improve...

... middle of paper ...

... 3/20/02 Vol 239 P. B12A

12. Direct Marketing, Garden City “Avon to Target Teens” November

2001Anonymous, Volume 64 Issue 7 p. 22

13. Investor Relation Business “Avon Ups Johansen” Editorial

Staff, January 28, 2002, p.1

14. Brandweek, “Avon Calls on Upscale Women for Becoming” by

Christine Bittar, August 13 2001, p.6

15. Quarterly Report (SEC for 10Q)

16. “Unbecoming” by Moreno, Katarzyna, Forbes, June 10, 2002 Vol.

169 Issue 13

17. Business and Company Resource Center “Cosmetics, Household,

and Personal Care Products US outlook” Lewis May 2, 2002

18. “Alliance Formation with Direct Selling Companies: Avon and

Mattel”, Lawrence B. Chonko, Journal of Personal Selling and Sales

Management, Winter 99’ Vol.19 Issue 1 pg 51.

19. “Most admired Soap and Cosmetic Companies, 2002”. Fortuen,

March 4, 2002. pg. 77

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