Avon E-Book

Laura Klepacki

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 430

Veröffentlichungsjahr: 2010

Beschreibung

A Winning Formula for Selling to Women Around the World

Avon has come a long way since handing out its first perfume sample back in 1886. The company, long famous for ringing customer doorbells, is now the world's largest direct sales organization—with almost five million representatives in more than 140 countries.

AVON: Building the World's Premier Company for Women is the first book ever to show how this cosmetics juggernaut achieved such incredible success, while revealing secrets any business can use to effectively market products of all kinds—especially to women.

Through this entertaining journey, you'll not only learn the colorful Avon story, but also see how every company, big or small, can benefit from its unique approach to sales and product development.

"By providing women with an unlimited opportunity for career success, Avon harnessed the power of a committed sales force to win customers and grow the business. The company's success story is testimony to the importance of focusing on your core business while recognizing the changes taking place with your customers and the environment."
—Mary Sammons, President and CEO, Rite Aid Corporation

"The book is an excellent primer on how to successfully make alternative forms of distribution work."
—Allen Burke, Director of Merchandising, QVC, Inc.

"The author's incisive revelations . . . capture the extraordinary personalities and entrepreneurial strategies of one of America's most spellbinding success stories."
—Annette Green, President Emeritus, The Fragrance Foundation

Leseprobe

Table of Contents

Title Page

Copyright Page

Foreword

Introduction

CHAPTER 1 - GIVE THEM WHAT THEY WANT

SELLING BOOKS

THE SWEET SMELL OF SUCCESS

MARKETING WOMAN-TO-WOMAN

MOVING TO SUFFERN

GROWING THE BUSINESS

CHANGING FOR THE BETTER

KEEPING A SENSE OF FAMILY

BECOMING AVON

CHAPTER 2 - STAY FOCUSED

GOING PUBLIC

DEBT-FREE OPERATIONS

IGNORING THE WARNINGS

A NEW WORLD APPROACH

FIRST CAME TIFFANY

MOVING ON TO OTHER VENTURES

THE HEALTH CARE TRIAGE

GOING RETAIL

A CHANGE IN DIRECTION

FACING A STARK REALITY

RALLYING THE TROOPS

FENDING OFF THE SUITORS

REBOUNDING FROM CHALLENGES

CHAPTER 3 - HIRE THE BEST MAN (OR WOMAN) FOR THE JOB

PUSHING FOR WOMEN

THE AVON CULTURE

THE COMPANY FOR WOMEN

A RISING YOUNG TALENT

MOVING UP FAST

WHY AVON?

A STAR CEO

PAYING HER DUES

JUNG’S VISION

A STRONG NUMBER TWO

SUPPORTING FEMALE EXECUTIVES

CHANGING MANAGEMENT MIX

CHAPTER 4 - EMPOWER YOUR SALES FORCE

DEVELOPING DREAMS AND GOALS

LEARNING FROM THE VETERANS

A HIGH TOUCH APPROACH

GETTING STARTED

PROVIDING ORGANIZATIONAL SUPPORT

ENSURING THE ORDER IS RIGHT

OFFERING EFFECTIVE SALES TOOLS

CREATING THE BROCHURE

LEARNING CONTINUOUSLY

PROVIDING PRIZES AND INCENTIVES

PROVIDING WORDS OF ENCOURAGEMENT

REFINING THE MODEL

CHAPTER 5 - INCENTIVIZE THE TROOPS

A SERIOUS CAREER OPTION

DOING THINGS AVON’S WAY

DEALING WITH CULTURAL CHALLENGES

PROGRAM STRUCTURE

TODAY’S SALES LEADERSHIP PROGRAM

RECRUITMENT RESPONSIBILITIES

CHANGING THE GAME

TRAINING AND INCENTIVES

EXPANDING GLOBALLY

GETTING IN STEP

CHAPTER 6 - CONSTANTLY INNOVATE

MOVING AT A WHIRLWIND PACE

LAUNCHING A PRODUCT

A CULTURE OF INNOVATION

INSIDE THE PROCESS

PREPARING THE GLOBAL MENU

MAKING HISTORIC BREAKTHROUGHS

A SKIN CARE POWERHOUSE

CREATING COLOR COSMETICS

SMELLING GOOD

THE MANY FACES OF SKIN-SO-SOFT

BUILDING THE PERSONAL CARE CATEGORY

BRANCHING BEYOND COSMETICS

A NEW PHASE IN R&D

CHAPTER 7 - KEEP UP WITH THE TIMES

WIDENING THE AUDIENCE

TARGETING A YOUNGER AUDIENCE

NOT JUST FOR TEENS

SPEAKING LIKE YOUR CUSTOMERS

THE BEGINNINGS OF MARK

LAUNCHING THE BRAND

A HEALTHY BUSINESS

KEEPING ELECTRONIC TABS

REACHING THE LATIN POPULATION

CHAPTER 8 - SPEAK IN EVERY LANGUAGE

BRANCHING OUT

SPEAKING TO ALL WOMEN

WHATEVER IT TAKES

A GLOBAL FUTURE

DIVIDING THE GLOBE

GRASSROOTS MODEL

ENTERING A NEW MARKET

THE PAST

CENTERS OF EXCELLENCE

SUPPLY CHAIN

CHAPTER 9 - EMBRACE TECHNOLOGY

SHIPPING ORDERS

FORECASTING SALES

LIFE BEFORE ARTIFICIAL INTELLIGENCE

A PARALLEL SYSTEM

DOING BUSINESS ONLINE

DEALING WITH FALSE RUMORS

GETTING IT RIGHT

AVON.COM

YOURAVON.COM

EQUIPPING THE E-REPRESENTATIVE

MARRYING HIGH TOUCH WITH HIGH TECH

A GLOBAL SOFTWARE TOOL

CHAPTER 10 - CONNECT WITH YOUR CUSTOMERS

GETTING THE WORD OUT

BEYOND THE DOORBELL

A GLOBAL SPOKESPERSON

A DISTINCT MODEL

DESIGNING THE STORE

REACHING MULTIPLE CHANNELS

PLANNING AND TESTING

CREATING STANDOUT CAMPAIGNS

MAKING THE CONNECTION

CHAPTER 11 - GET CREATIVE

MAKING IT A FAMILY AFFAIR

GOING WHERE THE RECRUITS ARE

DOING IT YOUR OWN WAY

SPEAKING IN RUSSIAN

DEVELOPING A SKIN CARE BUSINESS IN INDIA

MAKING A COMMITMENT

CHAPTER 12 - MAKEOVERS CAN BE A THING OF BEAUTY

A PUBLIC FACE

TAKING A STAND

BRANCHING FURTHER INTO RETAIL

MOVING BEYOND RETAIL

BECOMING A RETAIL BRAND

REFINING INTERNAL OPERATIONS

TAKING MAJOR STEPS

POSTING WINNING RESULTS

PLANNING THE NEXT PHASE

CHAPTER 13 - GIVE BACK

A HISTORY OF PHILANTHROPY

THE AVON FOUNDATION

THE BREAST CANCER CRUSADE

PINK RIBBON PRODUCTS

THE WALKS

WHERE THE MONEY GOES

JOHNS HOPKINS SIDNEY KIMMEL CANCER CENTER

UCSF COMPREHENSIVE CANCER CENTER

WINSHIP CANCER INSTITUTE OF EMORY UNIVERSITY

THE CHARLES B. WANG COMMUNITY HEALTH CENTER

OTHER AVON BREAST CANCER CRUSADE BENEFICIARIES

INTERNATIONAL PERSPECTIVES

SETTING A GOOD EXAMPLE

AT THE HEART OF THE EFFORT

EPILOGUE

TIMELINE OF SIGNIFICANT EVENTS IN AVON HISTORY

Acknowledgments

NOTES

INDEX

Copyright © 2005 by Literary Productions. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada.

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ISBN-13 978-0-471-71026-4 ISBN-10 0-471-71026-1

FOREWORD

Every day, I am inspired in some small way by the story of Avon—by the company’s rich history of empowering women and its belief in the importance of social responsibility to make the world a better place. These are core values that have been passed down and nurtured since the company’s founding more than a century ago. We saw this book as a wonderful opportunity to share the story of this extraordinary company—“The Company for Women”—and the role it has played in improving women’s lives.

It all started back in 1886 when the company’s founder, an entrepreneur named David McConnell, recruited women to sell perfume door-to-door. This was considered quite revolutionary at the time because women virtually never worked outside the home and would not win the right to vote for another 34 years. Nonetheless, Avon’s commitment to create economic opportunities for women took hold, not only in the United States, but all around the world.

Today Avon is a $7.7 billion company with almost five million representatives in over 100 countries. Our Avon sales representatives remain the heart and soul of the company. These smart, savvy, thoughtful businesswomen are my role models. Their ambition and work ethic is unparalleled. It takes a special kind of courage to run your own business, and I am filled with admiration for their extraordinary accomplishments. Everything we do is about helping to make their job easier.

I am very privileged to lead Avon at this important moment in the company’s history. We have transformed a brand that was always well respected, but now is recognized as truly world class. We have improved the Avon selling experience and created greater earning opportunities for our representatives. We’re proud that each year women earn close to $3 billion selling Avon. We also run our business more efficiently and profitably than ever, increasing the value for Avon’s shareholders.

But none of these accomplishments compare to the gratitude I feel knowing that Avon is changing women’s lives for the better—not only through their earning opportunity, but also through the philanthropic efforts of the Avon Foundation to eradicate breast cancer and end domestic violence, two issues that concern women everywhere. And our corporate profile reflects our focus on equal opportunities for women. Today, we have more women managers than any other Fortune 500 company. Our president and chief operating officer is a woman, as are half the members of our board of directors.

Thanks to the original vision of our founder and to the power of the company’s mission—which is fully embraced by our millions of representatives and associates around the world—Avon has emerged as a true force for good, forever changing the social and economic landscape for women and lighting the way for future generations. It is a legacy of which all of us at Avon are the proud stewards. And it is a legacy that guides us to see even greater possibilities for tomorrow.

Andrea Jung Chairman and Chief Executive Officer Avon Products, Inc.

INTRODUCTION

Two hundred and sixty Avon sales representatives, with family members in tow, took their seats in the cordoned off VIP section at New York’s Governors Island, a spot providing a clear view across New York Harbor to Liberty Island. They were seated in the grand-stand near international dignitaries including First Lady Nancy Reagan and French President Francois Mitterrand. Among the glittering crowd were such entertainment legends as Elizabeth Taylor, Gregory Peck, Henry Winkler, Helen Hayes, and Mikhail Baryshnikov. Clearly, it was an event fit for royalty.

It was the evening of July 3, 1986, a date marked by unseasonably chilly temperatures and gusty winds. Nancy Reagan kept a red shawl around her shoulders; others shivered under blankets. All were gathered for the opening ceremony of a four-day festival to celebrate the magnificent centennial of the Statue of Liberty. The occasion also marked the completion of the landmark’s $87 million head-to-toe restoration. This was to be her official unveiling.

President Ronald Reagan wowed the crowd with the push of a button that tripped off a cascade of lights bathing the statue in red, white, and blue. There were speeches and musical performances, along with the presentation of the Medal of Liberty to 12 naturalized citizens for their contributions to the nation, including scientist Albert Sabin and architect I. M. Pei.

This Liberty Weekend extravaganza was staged by Hollywood producer David Wolper, known for his film epics Roots and North and South. It featured music by composer John Williams of Star Wars fame. The patriotic colored, nautical-style uniforms worn by the hostesses guiding invited guests were designed and donated by Avon, which helped to sponsor Liberty Weekend and the restoration efforts leading up to it. Inviting some of its representatives to be a part of this awe-inspiring event was just one of many perks the company treated its top performers to that year in recognition of their efforts in going door-to-door, selling a variety of products, and making women around the world both more beautiful and financially independent.

In what would be a prophetic slogan for the company itself, in the months before the festivities, the company ran advertisements showing work being done on the Statue of Liberty with a banner reading: “A Monumental Makeover: Avon Helping to Keep the Face of America Beautiful.” Indeed, just 15 years later, Avon would undergo a transformation of its own—one that would make it one of the biggest and most powerful global powerhouse companies in the world.

It was only natural that Avon should lend a hand to this event. After all, like the Statue, the company was commemorating its own 100th anniversary. What’s more, as Lady Liberty herself, Avon had long heralded the independence of women.

It was in 1886, nearly three decades before women in the United States had the right to vote, that company founder David Hall McConnell first gave housewives a chance to earn a living at a time when few other options were available. Since then, the company famous for ringing customer doorbells and offering in-home service, has operated under the same founding principles originally set forth by McConnell—a man described by Avon’s current chairman and chief executive officer, Andrea Jung, as being ahead of his time in fashioning a business with an exclusively female sales force. “What McConnell did was heretical” for the period, says Jung, who broke stereotypes herself when she became Avon’s first female CEO in 1999.

Unusual, yes, but McConnell’s formula was an instant hit from the start.

Avon’s corporate philosophy called for providing “an earning opportunity in support of a person’s well-being and happiness,” to make only the “highest quality products,” and to “render service that is outstanding.”

Additionally, McConnell decreed that management always recognize its employees and representatives “on whom the company’s success depends,” and that they share the rewards of that success. Furthermore, the company must contribute to society and “maintain and cherish the friendly spirit” it conveyed.

A former door-to-door book salesman, McConnell started Avon from the ground up, almost by accident, with one sweet-natured, middle-aged saleswoman. He likened his company’s graceful expansion to that of an “acorn into an oak.”

The Avon of today is more robust than ever. Functioning in a world where competition for the sales of beauty products is anything but pretty, the company has, with a few trial-and-error exceptions, stuck to its original formula and flourished by leveraging its distinctive person-to-person selling system.

Avon is not only a giant in the beauty business, it is also the largest direct-selling company of any kind on the planet. Although the company is best known for its various cosmetics products—from lipstick to anti-aging cream—it now offers everything from vitamins to weight-control products to meet the growing needs of its customers. Avon’s time-tested methods of operation are the model to which other direct-selling companies aspire to emulate.

In the United States, where the majority of women no longer stay home during the day, the actual door-to-door approach is falling by the wayside in lieu of more productive avenues to connect with customers, such as workplace selling and the Internet. But the original high-touch model remains in full force in more than 143 countries around the globe. In fact, of Avon’s 4.9 million representatives, more than 75 percent now reside outside of America.

One of the crucial keys to Avon’s good fortune has been its ability to inspire and motivate its sales representatives. As McConnell recognized from the start, without their commitment and dedication, his operation would falter.

Avon: Building the World’s Premier Company for Women provides an “insider’s” view of the development and expansion of an incredible company. For the first time, you’ll be there through every step of its growth and discover how it greatly differs from almost every other traditional consumer products company. At Avon, the sales representatives (often referred to as simply the “reps”) run the show, and everything the company does centers around supporting them. This means providing reps with a nurturing and encouraging environment, while working up slate after slate of new products designed to keep their customers coming back.

In the pages ahead, you’ll get a colorful and nostalgic look at Avon’s journey to the top, which hasn’t been seamless. Over the years, the company has endured more than its share of management turnover and failed initiatives, though in each case it came back stronger than ever. You will learn how this empire was built, discover the management techniques that guide the company, and get the exclusive details on what the current management team, under CEO Andrea Jung, has done to reinvigorate the company to the delight of both Wall Street and Avon’s ever-growing sales force.

What’s more, you’ll examine the company’s unique and fast-paced business structure, which has been designed around meeting its two- to four-week selling cycles to keep products turning over on a regular basis. To sustain this repetitive system, Avon has developed one of the most prolific product development departments in the beauty industry. You’ll learn exactly how Avon is able to meet the requirements imposed by this demanding arrangement, and how it has managed to replicate this winning formula in even the most remote areas of the world.

While Avon has a soft and warm exterior, science and technology have always played an important behind-the-scenes role in keeping the company running. In this book, you’ll discover how the company is increasingly using computer technology and automated systems to make selling cosmetics—and virtually everything else—easier and more profitable.

Throughout its history, Avon has gone through multiple transitions, resulting in its metamorphosis from a one-man business to the global conglomerate it is today. By selling woman-to-woman, one small order at a time, Avon has evolved into one of the most widely known, respected, and ubiquitous brands in the world. It conducts 1.6 billion customer transactions each year, and is the largest fragrance manufacturer around the globe—selling another one of its famous lipsticks every three seconds.

Avon: Building the World’s Premier Company for Women tells the story of one company’s drive to provide women with an opportunity for financial independence. It also takes a closer look at the innovative selling techniques and recruitment methods used by those entrepreneurial Avon ladies who have been turning kitchen tables and basements into business offices for decades.

By the end of the story, you’ll understand how one man’s simple business idea blossomed into a powerhouse beauty company that, over the course of time, has provided limitless opportunities to millions of women around the world. You’ll also benefit by uncovering the key tenets by which the company operates—lessons you can use to bolster your own business, regardless of what industry you’re in. Avon serves as a model for how to run a great company, and its operating practices are applicable to any fledgling entrepreneur in every part of the world.

CHAPTER 1

GIVE THEM WHAT THEY WANT

David Hall McConnell was a hard worker from the start. The second of six children, as a young boy he rolled up his sleeves and helped run the family farm in Southwest Oswego, New York, a rural locale on the north central border of the state where Lake Ontario separates the United States from Canada. It is a place noted for its severe winters, with average snowfalls of 141 inches per year.

His parents, James and Isabella Hall McConnell, had emigrated from County Cavan, Ireland, in 1856. Like so many others, they came to the United States hoping to find a better life for their family. The couple already had one son, William, who was born in 1855. David arrived three years later on July 18, 1858. In succession, Joseph, Margaret Ann, George, and Hattie followed.

David McConnell was a sturdy youth who didn’t allow the heavy fieldwork to distract him from his education. He became a diligent student at the “little red school,” as the town’s public school was known. Afterward, he continued his studies at the Oswego Normal School, a training college for teachers.