A V O N the company for women Research Update October 25, 2010 Jen Callaghan J.R. Longino Rasa Navickaite Meghan Quinn Lia Torre

Avon is a leading global beauty company, with over $10 billion in annual revenue. As the world's largest direct seller, Avon markets to women in more than 100 countries through 6.2 million independent Avon Sales Representatives. Avon's product line includes beauty products, as well as fashion and home products, and features such well-recognized brand names as Avon Color, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals, and Mark.

Corporate Overview Brief History - Founded in 1886 by David H. McConnell Mission Statement -The Global Beauty Leader -The Women’s Choice for Buying -The Premier Direct Seller -The Best Place to Work -The Largest Women’s Foundation -The Most Admired Company

Corporate Overview Current Long Term Objectives -Retain their representatives and increase their productivity -Leverage technology and the viral power of the Internet -Broaden shopping opportunities with new product categories -Restore Sustainable Growth -Committing to brand competitiveness

Corporate Overview Current Short Term Objectives - Committing to brand competitiveness -Winning with commercial edge -Improving the attractiveness of Representative earnings opportunity as needed; - Elevating organizational effectiveness - Transforming the cost structure

Corporate Overview Corporate Strategies -Advertising and Representative Value Proposition (“RVP”) -Product Line Simplification -Strategic Sourcing Initiative -Enterprise Resource Planning System -Zero-Overhead-Growth -Restructuring Initiatives and 2009

Corporate Overview Core Competencies - Stronger brand - Stronger channel - Stronger cost management - Stronger organization

Next Steps Go more in depth with global positioning Create Recommendations that meet overall corporate goals