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 company
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 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 products and services since 1995
Avon started to offer products and services to consumers in 1990
Avon’s factory is located in Guangdong Chonghua Industrial Area, covering 80,000sq meters with annual production capacity of 120 million units of products
Amway’s factory is located in Guangzhou Economic Technological Development Zone, covering 91,000sq meters with annual production capacity of 3 billion units of products
77 branches 5,000 outlets 20,000 SRs
Main outlets focus around
coastal areas.
Over 100 outlets in every main cities ( BJ, SH, GZ, CQ …)
Franchise business to expand
business
Operation Outlook 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 developed cities
Operation Outlook in China
“Work along both lines” strategy (双管齐下）
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, but 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
Market coverage
role
Franchise “0” fee to encourage more people to devote into Avon’s 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 operation 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 applied 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 shops, 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 include:
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 Offers - 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
Men’s product
Others
Cosmetic
Fragrance
1
2
Gifts
3
undergarments
5
Jewelry
4
Health supplement
Series of products mainly to fulfill women’s 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 . healthcare, household and personal 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
Product 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-made 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 investment 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
Skincare media spend trend
is heavy-up Bi-monthly
Spending increased on Mar to May for launch of Cosmetic new product line “New Shine “
Increased spending on Corp in Mar 02
Yr 2002
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
Media 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 promoting its corporate image.
‘RMB000
Media Spend - Avon Corporate
Implication
Year 2001
Total Market : 8
Jan-May’02
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.
Year 2001
Total Market: 7
Total Market: 14
Media Spend - Avon Cosmetic
‘RMB000
Implication
Jan-May ’02
Source: ACNlisen
Period: Jan 01- May 02
‘RMB000
Consistent spending throughout both years.
Total Market : 65
Total Market : 85
Media Spend - Avon SkinCare
Year 2001
Jan-May ’02
Implication
Source: ACNlisen
Period: Jan 01- May 02
Comparatively with last year, market coverage has decreased. Concentrating on GZ & BJ as of to-date
Total Market: 39
Total Market: 2
Media Spend - Avon Perfume
Year 2001
Jan-May ’02
‘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 awareness 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 : TVC
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
Category : SkinCare
Period : March, 2002
Leaflets
Let’s Talk Magazine
Let’s Talk is soley internal newsletter for Avon SRs
Leaflet circulation is for both internal and to the mass public.
Medium - Internal Publication
Anew Avon
Promotion Activity
Essence of Beauty
Service Net
Let’s talk
Job Opportunity
Entering Avon
Tonality is fashionable, colorful, feminine. Offer on-line chat with women
After browsing the website
It is lively, fashionable & create space for women
Provide 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 Women’s Health
Events - China
1st Fragrance Festival
Warm Heart Night
An effective publicity approach 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 program is broadcast in most of major cities and achieved high rating viewing ship.
TV Program Sponsorship
The Avon Worldwide Fund for Women's 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 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. Avon's goal is to reach $250 million by the end of 2002.
PR - Avon Breast Cancer Crusade
Avon’s Partnership Standard
Private + non –profit + public sector
In USA, Avon’s partner are
YWCA
NABCO The National Alliance of Breast Cancer Organization
NCI National Cancer Institute
In China, Avon’s partner is
Guangzhou Women Worker Association
PR - Avon Breast Cancer Crusade
3 day Event 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 :
Charity 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 women's running in the late 1970s through the mid-1980's when the company sponsored the Avon International Running Circuit. These races enjoyed enormous popularity and were largely responsible for securing the women's marathon as an Olympic event. Joan Benoit Samuelson, Gold Medallist in the inaugural Women's Olympic Marathon (1984) and US record-holder, was one of the early Avon Running Circuit's most prestigious participants.
Avon Running Global Women’s Circuit, an international series of women-only 10K runs ( miles), 5K walks ( miles) and beginner clinics
(8-10 weeks) for all women.
PR - Avon Global Women’s Health
RYKÄ, the only manufacturer of premier athletic shoes exclusively for women is the Official Footwear of the Avon Running Global Women's 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
Avon’s Partnership Standard
Sport-related + Health caring + non-profit
PR - Avon Global Women’s 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 company 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
Implication
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 Women’s Health.
Build close tie with government bureau that
support issues in relate 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
Overall 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 Avon’s SRs
Maintain good relationship with Government
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
Shops
Internal publication
Communication Means
Implication
Leaflets
Web-site
为您生活添色彩
分享女人新主张
Anew : 做个新活女人
Whitening : 寻找美白天使
Communication Medium Implication
Nutrilite : 有健康才有将来
Artistry : 根据产品功能而定
The Discovery Road of Avon
the category.
the company.
the culture.
the consumer.
the idea.
What is going 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 connecting 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 products 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 women’s
sophisticate needs
Avon Discovery Road
the Company.
The 2nd 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 women’s various needs,
create a place for women to share womanhood, to better understand and care about themselves
Avon Discovery Road
the Culture.
The 3rd stop
Attitude towards beauty (对于美丽观点）
Most women consider beauty products is a necessity, not luxury
Most agreed external appearance is an important part to define a woman’s character, therefore, women tend to take additional efforts to make themselves look good
Attitude towards life（对于生活态度）
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 Discovery 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 (家庭主妇型） Mature, married, prefer to save, family life is the first priority
Career Recognition （职业女性型） Young career women, work hard and aspire for certain achievements
Fashion/Expressive (时尚/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 products to fulfill every women’s 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 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 women’s 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 what women wants.
But not
Avon Discovery Road
Light House Brand Strategy
Share womanhood 分享女人“心”主张
Corporate Philosophy
The company for women
A series of product fulfill women’s needs
A range of products leading the trend of beauty
Establish a clear role in women’s life
Avon Communication Strategy
Share Womanhood (分享女人“心”主张）
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 (更美丽，更自信）
Professional ( full lines of products)
Innovative technology (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 people’s
life, more and more products offers subdivision to offer their USP.
Natural ingredients amd environmental
conscious is an upcoming trend of recognition, therefore safe and non-poisonous products are preferred in people’s life.
High quality products in great demand due to
the urge of improving living standard
More and more companies are not only focusing
on product functional competition, but to provide the additional value as a point of difference to attract people . 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 people’s daily life
The unique selling service “person to person” not
only to enhance the quality and thoughful service (高质量及周到服务），but also to strengthen relationship among people, inspire them to care and like to help others
Amway Discovery Road
the Culture.
The 3rd stop
对于工作观点
More and more people are self-esteem of owning
their own business and aspire to get achievements in their field.
对于生活态度
Increasing personal income and more choices of
products choice in the market, with more people willing to spend even a little more for quality and guarantee products.
Exchanging opinions and exposure make people
understand how to enjoy life. They will spend money on enjoy the personal service rather than saving money
Increasing hectic working life, create remote
relationship among friends and family. They look forward for personal interaction, like to be care
Amway Discovery Road
the Consumer.
The 4th stop
Amway SRs
They are passionate about their to have his own business and get achievement both in their life and work.
They like to socialize with people, prefer sharing enjoyment and good experience with the people around them and caring them to live better lives as the same
Consumers
They know how to balance life. They dedicate into working while also have leisure activities in the past time.
They are health conscious. They care for their healthy life by consuming natural food and doing regular exercise.
They are family oriented. They care for their family members’ life and supply them the quality products and share happy moment with them.
Amway Discovery Road
the category.
the company
the culture.
the consumer.
Brand bond is……
Offer quality products and provide emotional personal service to consumers.
Amway brand bond
A business partnership that offer job opportunity to people.
A close friend with support of quality products and service.
Empower people with career achievement, with caring and willing to help others
Aspire to obtain achievement both in life and work, prefer their life be more colorful and enjoy with people around them as the same.
Amway Discovery Road
Care & Share by helping people live better lives
Quality products for a better life
Better life (生活更好，更精彩）
International experience
Scientific product process
Advanced technologies & facility
Series of product lines
Brand Bond
Positioning
Consumer benefit
Reason to Believe
Amway Communication Strategy
