1、PREPARED BY Leo Burnett - GUANGZHOU July 2002,AVON Brand Review,Table of Contents,Company Background Operation Outlook Structure Avon Shops Product Offers Media Spend Communication Means PR/Event Activities The Discovery Road of Avon The Discovery Road of Amway,Company Background,A global beauty com

2、pany,Founded in 1886 in New York, Avon was named by Mr. David McConnell who paid tribute to his favorite playwright, William Shakespeare (Avon is the name of a river in the hometown of Shakespeare). Since then, Avon has created career opportunities for millions of women around the world.,Today, Avon

3、 is a leader in beauty and a trusted name in direct selling. She has grown into a global corporation, a Fortune 500 company, with SR numbering three and a half million and products sold in 143 countries around the world.,Operation Outlook in China,Operation Outlook in China,Amway has offered product

4、s and services since 1995,Avon started to offer products and services to consumers in 1990,Avons factory is located in Guangdong Chonghua Industrial Area, covering 80,000sq meters with annual production capacity of 120 million units of products,Amways factory is located in Guangzhou Economic Technol

5、ogical Development Zone, covering 91,000sq meters with annual production capacity of 3 billion units of products,77 branches 5,000 outlets20,000 SRs,Main outlets focus around coastal areas. Over 100 outlets in every main cities ( BJ, SH, GZ, CQ ) Franchise business to expand business,Operation Outlo

6、ok in China,Outlets are mainly Avon direct selling as well as franchise shops,Outlets are all Amway direct selling stores,77 branches, over 5,000 outlets and 20,000 SRs,58 stores and 130,000 SRs,Maintained network in the main cities, while expanding in 2nd and 3rd cities.,Mainly in relatively develo

7、ped cities,Operation Outlook in China,“Work along both lines” strategy (雙管齊下）,Definition - Beauty counter: Opened by Avon company. Unique area/counter inside the merchandise store or hypermarket- Chain store: Include Avon direct shop and franchise shop (1) normal : no need to sell all categories, bu

8、t skin care and cosmetics are required (2) flagship: model shop with standard design for other shops-Concept store: Avon direct shop. Self-serving style, for consumers to enjoy free trial and to choose wide range of products,Retail,SR,+,Beauty Counter,Concept Store,Chain Store,Market penetration,Mar

9、ket coverage,role,Franchise “0” fee to encourage more people to devote into Avons business,Operation Outlook in China,Avon retail channel + SRs,Amway shop + SRs,Key role to build up business,Supporting role,To expand market coverage,To increase market penetration,Main role,Supporting role,Stores ope

10、ration in accordance with government policy,Strengthen relationship with consumers and ensure personal service,Market size,Quality service,Operation Outlook in China,Avon Shops,Window display dressing changes by monthly with different theme.,Average store space is no more than 40m2 Standard deco app

11、lied in every shop.,Avon Shops - Overview,One of the shop entrance view,Avon Shops - Overview,Generally all shops are located along row of shop lots with high residential traffic. Location is usually at the ground floor with high visibility and easy accessibility.,In GZ, there are more than 100 shop

12、s, however, the surrounding environment is beyond control which at times affect the Avon premium image which it tries to project.,Avon Shops - Service,Only 2-3 persons are in duty per store. Overall responsibilities include Sales, Cashier & Merchandising All salesperson are in uniform. Services incl

13、ude: Personal beauty consultant Offer (free/partial payment) Facial Care if purchase is accumulated to a certain amount. Offer special discounts to Club Members.,Avon frequently holds booth promotion to interact with consumers and attract impulse purchase.,Outdoor Promotion,Product Offers,Product Of

14、fers - Global,Cosmetic,Fragrance,1,2,Gifts,3,undergarments,5,Jewelry,4,Health supplement,Skin Care lines,Series of products for women and people around them,6,7,8,Kids product,Mens product,Others,Cosmetic,Fragrance,1,2,Gifts,3,undergarments,5,Jewelry,4,Health supplement,Series of products mainly to

15、fulfill womens needs,Skin Care lines,With the worldwide famous partners. Avon is strategically expanding business into the health supplement field,Product Offers - China,Globally, offers over 450 with concentration on narrower target group and specific category i.e. healthcare, household and persona

16、l care products,Globally, offers more than 20,000 products generally concentrate on wider product range and target group,Target mainly women Offer wide range to create affordability for different age group.,Target to satisfy family needs Mainly offer to people who pursue for high quality lifestyle,P

17、roduct Offers - Overview,Operation Outlook Implication,Operation Outlook - Implication,Avon Strategy : To occupy market place within the shortest time Hence, Avon has opened large number of stores to build up awareness, and reach target consumers effectively. Keep launching new categories tailor-mad

18、e for China market, so as to satisfy various needs from women.,Amway Strategy : To win market share by offering high quality products and services Amway values “person to person service”, which is believed critical to strengthen relationship with consumers and to ensure high quality services High in

19、vestment in research and product development, to ensure quality of products and ultimate consumer satisfaction,Media Spend By Month By Medium By Market,Media Spend - By Month,Source: ACNlisen Period: Jan 01- May 02,RMB000,Yr 2002,Year 2001 : Total Spend 58,404,Jan-May 02: Total Spend 42,004,Yr 2002,

20、Year 2001,Spending on Cosmetic increased in Year 2002 whilst Perfume spend has decreased.,Skin Care accounts for the highest spending of all categories,Media Spend - By Category,Year 2002,Implication,Source: ACNlisen Period: Jan 01- May 02,Media exposure for Corporate mainly invested on Newspaper Me

21、dia exposure for Skin Care mainly invested on TV Media exposure for Cosmetic mainly invested on Magazines,Media Spend - By Medium,Year 2001,Year 2002,Implication,Source: ACNlisen Period: Jan 01- May 02,Total Market : 31,Comparatively with Year 2001, as to-date Avon has increased cities coverage in p

22、romoting its corporate image.,RMB000,Media Spend - Avon Corporate,Implication,Total Market : 8,Source: ACNlisen Period: Jan 01- May 02,Sustaining investment in GZ & SH for 2 consecutive years Year 2002 increased spending on National TV and extend to more cities.,Total Market: 7,Total Market: 14,Medi

23、a Spend - Avon Cosmetic,RMB000,Implication,Source: ACNlisen Period: Jan 01- May 02,RMB000,Consistent spending throughout both years.,Total Market : 65,Total Market : 85,Media Spend - Avon SkinCare,Implication,Source: ACNlisen Period: Jan 01- May 02,Comparatively with last year, market coverage has d

24、ecreased. Concentrating on GZ & BJ as of to-date,Total Market: 39,Total Market: 2,Media Spend - Avon Perfume,RMB000,Implication,Source: ACNlisen Period: Jan 01- May 02,Media Spend Implication,Significant increase of spending on Corporate Image ($ & city coverage) Strategically to achieve Avon awaren

25、ess nationwide for further business expansion,Periodic media exposure of Avon products To promote key products Leverage other categories with Avon Corporate Image,Media Spend - Implication,Communication Means TVC (Refer Appendix Reel) Prints Avon Internal Publication Web-site,Medium - TVC,Medium : T

26、VC Category : SkinCare Period : Year 2002,Medium : TVC Category : Whitening Series Period : Year 2001,Note : Refer to Appendix TVC Reel,Medium - Print,Medium : Newspaper Category : SkinCare Period : Year 2002,Medium : Newspaper Category : SkinCare Period : Year 2001,Medium - Print,Medium : Magazine

27、Category : SkinCare Period : March, 2002,Leaflets,Lets Talk Magazine,Lets Talk is soley internal newsletter for Avon SRs Leaflet circulation is for both internal and to the mass public.,Medium - Internal Publication,After browsing the website,It is lively, fashionable & create space for women,Provid

28、e Avon Products and Price index,Drawback - information is quite cluttered,Medium - Website,PR Activities,TV Program Sponsorship - China Cause Related Program - Global Avon Breast Cancer Crusade Avon Global Womens Health Events - China 1st Fragrance Festival Warm Heart Night,An effective publicity ap

29、proach for Avon to create interaction with its SRs whilst obtain high awareness.,Huan Le Zong Dong Yuan,Huan Le Zong Dong Yuan is a popular weekly program for its “mo fang” show produced by freelancers. Celebrities are invited to attend arouse excitement and fun.The program is broadcast in most of m

30、ajor cities and achieved high rating viewing ship.,TV Program Sponsorship,The Avon Worldwide Fund for Womens Health is a global initiative of Avon Products, Inc., founded in 1992. Its mission is to improve the health of women internationally. The Fund encompasses Avon programs in 34 countries around

31、 the world that raise money through a variety of fundraising activities, increase public awareness, and connect women to lifesaving medical services. Together, these Avon programs have raised more than $190 million since 1992. Avons goal is to reach $250 million by the end of 2002.,PR - Avon Breast

32、Cancer Crusade,Avons Partnership Standard,Private + non profit + public sector,In USA, Avons partner are YWCA NABCO The National Alliance of Breast Cancer Organization NCI National Cancer Institute In China, Avons partner is Guangzhou Women Worker Association,PR - Avon Breast Cancer Crusade,3 day Ev

33、ent Mechanics The beneficiary of the net proceeds of the Avon Breast Cancer 3-Day, which have averaged 60% since the program launched in 1998.,Avon pink ribbon merchandise items,Kiss Goodbye to Breast Cancer Lipsticks,merchandise item,T-shirts with logo available in Fashion Shops,Other supports : Ch

34、arity show, Community Seminar, Brochure circulation door-to-door, internet,PR - Avon Breast Cancer Crusade,Merchandise Items,Avon was the leader in creating a platform for womens running in the late 1970s through the mid-1980s when the company sponsored the Avon International Running Circuit. These

35、races enjoyed enormous popularity and were largely responsible for securing the womens marathon as an Olympic event. Joan Benoit Samuelson, Gold Medallist in the inaugural Womens Olympic Marathon (1984) and US record-holder, was one of the early Avon Running Circuits most prestigious participants. A

36、von Running Global Womens Circuit, an international series of women-only 10K runs (6.2 miles), 5K walks (3.1 miles) and beginner clinics (8-10 weeks) for all women.,PR - Avon Global Womens Health,RYK, the only manufacturer of premier athletic shoes exclusively for women is the Official Footwear of t

37、he Avon Running Global Womens Circuit in the United States for 2001.,(RRCA) Roads Scholar(tm) program benefits post-collegiate male and female runners who, while struggling financially, show promise and a willingness to compete and develop into accomplished, world-class athletes,Avons Partnership St

38、andard,Sport-related + Health caring + non-profit,PR - Avon Global Womens Health,Time: 2001 June Venue : GZ, SH ,BJ ,CQ ,WH (5 star hotels),Objective : promote Avon perfume product and perfume knowledge education,Program Seminar DIY Perfume Lucky Draw,Partner : Quest, one of the largest perfume comp

39、any in the world,Next Fragrance Seminar will be held in June, 2002,PR - Fragrance Seminar,Time : December 2000 Venue : Guangzhou Friendship Opera,Objective : Raise fund for Guangzhou Children with health problems.,Partner : Guangzhou Women Association,PR - Warm Heart Evening,PR Activities Implicatio

40、n,Global long-term commitment,China Initiatives,Program/Event sponsorship,Initiate program with long term commitment to gain trust and global recognition. Built focus with single-minded objective and caring strategy on Womens Health.,Build close tie with government bureau that support issues in rela

41、te women. Focus to build corporate image and gain support and participation from Government & Media. Organize outstanding events that is new news to China,Initiate programs/events with close association to Avon product category. Create excitement and fun for SRs participation,PR - Implication,Overal

42、l Communication Means Implication,Avon,Leverage on Global Programs,Partnership with reputable Association,Charity Programs & Yearly Event,Essential approach to establish Avon brand image and reinforce confidence among consumers Create excitement for Avons SRs Maintain good relationship with Governme

43、nt,PR,Mass Media,Advertise Avon products in 85 cities in China to:- Promote sales of key products Leverage on brand image& preference Leverage on key products with offer of other product categories.,TVC,Print,TV Program Sponsorship,Terminal,Create reach and penetration To disseminate information,Sho

44、ps,Internal publication,Communication Means Implication,Leaflets,Web-site,為您生活添色彩,分享女人新主張,Anew : 做個(gè)新活女人 Whitening : 尋找美白天使,Communication Medium Implication,Nutrilite : 有健康才有將來(lái) Artistry : 根據(jù)產(chǎn)品功能而定,The Discovery Road of Avon,the category.,the company.,the culture.,the consumer.,the idea.,What is going

45、 on in the category? How is it changing? What matters in it? How should it be?,What cultural trends and shifts that our brand can tap into?,What are the key things that the company owns or believes in? What is its DNA? What could it offer consumers?,Who are we targeting and what human needs are we c

46、onnecting our brand to? Use the believer matrix, if only qualitatively.,On our way to the brand idea, we will make four stops, rigorously investigating these four components of a great brand. Enjoy the ride.,The Discovery Road,the category.,The 1st stop,In general, per capita spending on skin care p

47、roducts rank the highest among beauty products Specialized & Natural ingredient is in trend. Less differentiation on product feature, whereas emotional value becomes more important to enhance brand image More beauty products to satisfy womens sophisticate needs,Avon Discovery Road,the Company.,The 2

48、nd stop,Low brand image due to excessive discount offered to consumers Take initiative to extend its network, giving more opportunity to people to devote into women beauty business Dedicate to Staff Training Provide products to fulfil womens various needs, create a place for women to share womanhood

49、, to better understand and care about themselves,Avon Discovery Road,the Culture.,The 3rd stop,Attitude towards beauty (對(duì)于美麗觀點(diǎn)） Most women consider beauty products is a necessity, not luxury Most agreed external appearance is an important part to define a womans character, therefore, women tend to t

50、ake additional efforts to make themselves look good Attitude towards life（對(duì)于生活態(tài)度） Most have self-esteem, like to be financially independent, possess equal business opportunity with men, gaining great achievements Top 3 topics that interest women are : health, work and places of interest .,Avon Disco

51、very Road,the Consumer.,The 4th stop,Avon is the company for all women. Offer different product lines to different target groups with different needs. We can see classifications as below: Harmonious Happiness (家庭主婦型） Mature, married, prefer to save, family life is the first priority Career Recogniti

52、on （職業(yè)女性型） Young career women, work hard and aspire for certain achievements Fashion/Expressive (時(shí)尚/潮流追逐型） Young, white collars, colorful social activities, love to be trendy and modern,Avon Discovery Road,Beauty category.,the company for women.,the culture.,the consumer.,Brand bond is,Full line of

53、products to fulfill every womens needs,Avon brand bond,A unique brand & consumer relationship： women community for sharing opinions,Empower women with confidence, pride, career achievements,Optimistic, confident, looking for self-fulfillment, positive and aspired to be a professional,Avon Discovery

54、Road,Avon is operates a business for women,Sell A, B, C products,But not,Avon provides full lines of beauty products to fulfill all womens needs,A luxury, A discount, A non-professional thing, and only sell to a specific small groups,But not,Avon hears your think and delivers what you want,Just sell

55、 what women wants.,But not,Avon Discovery Road,Light House Brand Strategy,Share womanhood分享女人“心”主張,Corporate Philosophy The company for women,A series of product fulfill womens needs,A range of products leading the trend of beauty,Establish a clear role in womens life,Avon Communication Strategy,Sha

56、re Womanhood(分享女人“心”主張）,Avon is the “company for women”，better understanding and satisfies every woman. Women do not touch only beauty, but health self-empowerment and financial independence),Look good, feel good,confidence, in-control (更美麗，更自信）,Professional ( full lines of products) Innovative tech

57、nology (break- through new design format) Personal Service (Avon Club) PR programs,Brand Bond,Positioning,Consumer benefit,Reason to Believe,The Discovery Road of Amway,the category.,The 1st stop,Home-care products are important in peoples life, more and more products offers subdivision to offer the

58、ir USP. Natural ingredients amd environmental conscious is an upcoming trend of recognition, therefore safe and non-poisonous products are preferred in peoples life. High quality products in great demand due to the urge of improving living standard More and more companies are not only focusing on pr

59、oduct functional competition, but to provide the additional value as a point of difference to attract people I.e. the emotional service,Amway Discovery Road,the Company.,The 2nd stop,A Partnership with SRs offer give job opportunity and full support to reach their life goal A close friend to Consumers provide wide range of products with top quality and environmental packaging to fufil peoples daily li