Value Adding Recommendations for Avon Products, Inc.

1
Value Adding Recommendations for Avon Products,
Inc.

• Value Creation Consulting LLP

2
Current Financial Positionin millions

• Cash Position 769.6
• Paid Dividends 269.7
• Capital Structure
• LT Debt 866.3
• ST Debt 51.7
• Sales Volume
• Net Sales 7,656.2

3
Beauty Plus

• Restructuring Segment
• Jewelry Segment
• 50 current customers buy jewelry
• Low cost items
• Reducing number of items offered
• Less holding costs lost sales
• Improve sales efficiency

4
New Segments

• Health Wellness
• Great potential cookbook, vitamins, and
  exercise equipment
• mark.
• Doing well
• Younger market
• Mens products
• Emphasis on deodorant, cologne, body wash, face
  wash
• from C-Factor Survey

5
Beyond Beauty

• Highest decline in sales
• Gifts
• Mens gifts Gift Baskets
• Reduce number of products
• Holiday, birthday, and celebration gifts
• New Service gift baskets wrapping
• Advertising Campaign

6
Fragrance Market

• Poor performer in Beauty Segment
• 26 for women and 11 for men
• Reducing number of products
• Perfume sample in catalog

7
Synergies

• Pink Ribbon
• Partner with another organization
• Additional promotion shared costs
• Avon Parties
• Partner with other direct sellers
• New customers shared costs

8
Representatives the Heart of Avon

• Longer campaigns
• 2 weeks ? 1 month
• Cuts costs, fewer fees, less work for more sales
• Overseas Representatives
• Incentives for current representative to recruit
• 50 initially and 50 every year the rep meets
  average

9
Projected Financial Position

• Stock Growth
• 2004 ? 39.72
• 2005 ? 83.39
• Net Sales
• Increase by 3.8 B

10
Sources

• Avon Products, Inc.,Annual Report, New York,
  http//www.avoncompany.com/investor/ annualreport
  /index.html (accessed May 12, 2005).
• Avon Products, Inc., Investor Factsheet, New
  York, http//www.avoncompany.com/ investor/invest
  orfactsheet/index.html (accessed May 16, 2005).
• Avon Products, Inc., Avon, New York,
  http//avon.com (accessed May 12, 2005).

11

• Avon Products, Inc., Avon Global Womens
  Survey, 2003,http//www.avoncompany. com/brands/
  survey.pdf (accessed May 23, 2005).
• C-Factor Survey. Avon Products, Inc. Survey,
  created May 23, 2005.
• Yahoo!, Quotes Info AVP, http//finance.yaho
  o.com/q?savp (accessed May 13, 2005)