Strategic Analyses of Avon

1. analysis of effect Avon has on the cosmetic industry

The company today known as Avon started 127 years ago as a perfume company called California Perfume Company (CPC) based in San Francisco, through many hardships and problems it was able to expand its product base and become the most successful beauty company in the world.

In 1926 CPC sold its first products under the name "Avon" it consisted of a toothbrush, talcum and vanity set (bath powder, hand lotion, tray and usually a perfume)

In 1937 the CPC company was awarded the "Good House Keeping Seal of Approval" which was created in 1911 by Good House Keeping Magazine to "fight against misrepresentations in the food and drug industry" In 1938 the CPC company was renamed to Avon Products Inc.

By using a direct marketing strategy instead of a store front, it was able to make its name known in more houses, because of representatives going door to door selling their products. The company expanded from just selling beauty products to including fashion and products for the home. Although the home products never sold as well as the fashion and beauty products did.

By 1997 Avon had 2.6 million Avon representatives selling Avon products worldwide in more than 100 countries. in 2008 the international market brought in 70% of the total sales with Latin America being the top sales country.

Avon's mission statement, to be a global beauty leader, the woman's best choice for buying, to be the premier direct seller, best place to work and create the largest woman's foundation, has allowed the Avon Company to be named in the top 100 "Best Corporate Citizens". In 1997 Avon started an "Avon Worldwide Fund for Women" and in a 5 year period, had raised $50 million to support programs for breast cancer and other women's health issues in over 30 countries.

Avon's direct market distribution, makes it easy for woman to own businesses, because it provides the product to the representatives, without them paying...