1. 0 Day to Night Clutch “Transform Yourself”

2. 1 Presenters Ryan Santonacita – U.S. Supply Chain Sarah Clarfield – Gifts and Home Marketing Jenna Moreno – Sales Leadership Manda Chan – Finance Caitrin Dolan – Personal Care Brand Marketing

3. 2 Today’s Agenda What our consumers want Introduction of a new product Product Costing Promotion and Sales Representative Support Competitive Analysis Conclusion Q & A

4. 33  Cosmetics Products Lipstick/ Lip Gloss Blush with a small folding Brush Eye Liner Eye Shadow Compact/ Pressed Powder/ Concealer Purse Size Mascara Oil Blotters Fragrance  Slits for my…… Mirror Credit Card Money Cell Phone Car Keys ID Mints

5. 44  Style of the Clutch is critical!! Enough room for everything I need Eye Appealing Fine Lining Color that goes well with any outfits Removable strap No Plastic-looking fabric it has to be GOOD- LOOKING !!

6. 5 Take your purse from this…

7. 6 To THIS! All you need to create the night time look! Transform Yourself..

8. 77 Concept: VERSATILE and USEFUL – cosmetic bag can be converted into a fashionable, useful, and convenient clutch Target Customers :  18 - 45 year-old women  Desires on-the-go, easy conversion from a Natural Day to a Dramatic Night look Day to Night Clutch

9. 88 With this Day to Night Clutch you get… –All the necessary items for two looks Day Night –ONE bag for all purpose use –Slits for your money, credit cards, keys, etc –Slots for extra Avon’s Products –Mirror for final checking Day to Night Clutch Overview

10. 9 Day to Night Clutch Two Different Bags Earthy NaturalsEarthy Naturals Dramatic PlumsDramatic Plums

11. 10 Day to Night Clutch TRUE COLOR Eye shadow Quad ULTRA RICH COLOR Lip-gloss GLIMMERSTICKS Eyeliner TRUE COLOR Blush (Cool Collection) ( Warm Collection) (Cool Collection) ( Both )

12. 11 Day Night

13. 12 Day to Night Clutch Cool Collection Day Night

14. 13 Day to Night Clutch Warm Collection Day Night

15. 14 Day to Night Clutch Costing What is included? Avon Products Cost of Goods Day to Night Clutch $1.35 True Color Quad $1.27 True Color Blush $1.01 Ultra Color Rich Lip-Gloss $0.85 Glimmer Stick Eyeliner $0.53

16. 15 Day to Night Clutch Costing ProductCDSSCost of Goods Day to Night Clutch $15.00$1.35 True Color Quad $7.00$1.27 True Color Blush $8.00$1.01 Lip-Gloss $6.50$0.85 Eyeliner $6.00$0.53 Product Value $42.50$4.99 Total Packing Costs $0.40 Total Cost of Day to Night Clutch $5.39

17. 16 Day to Night Clutch Costing How much does it cost?How much does it cost? –$19.99 Can’t forget about that margin…Can’t forget about that margin…60%

18. 17 Seasonality and Colors So what is the seasonality?So what is the seasonality? –Based on trends for Spring ’08 –Function and usefulness of product are year- round

19. 18 Day to Night Clutch Inside of clutch filled Close up of design on front

20. 19 Day to Night Clutch How will it be promoted?How will it be promoted? How will it work within the campaign?How will it work within the campaign? Featured in the Color sectionFeatured in the Color section Given an inside cover spreadGiven an inside cover spread Called out in the indexCalled out in the index

21. 20 Day to Night Clutch Celebrity Promotion?Celebrity Promotion? –Features a “Tip Card” One side has tips for a natural, daytime lookOne side has tips for a natural, daytime look Reverse side has for a darker, nighttime lookReverse side has for a darker, nighttime look Both tips based on included make-upBoth tips based on included make-up

22. 21 Creative Execution

23. 22 Representative Sales Support product awarenessHeighten product awareness excitementIncrease excitement sense of trustworthinessCreate sense of trustworthiness interestGenerate interest in the product EducateEducate the Representative great valuePWPExpress what a great value and utilize the PWP

24. 23 Representative Sales Support A valuable “Tip Card” will: excite customers increase knowledge of makeup application show how fun and easy a day to night look can be

25. 24 Increase Representative Sales REPRESENTATIVE TIMESUtilize the REPRESENTATIVE TIMES WHAT’S NEWUtilize WHAT’S NEW

26. 25 Representative Sales Support Great ValueExpress what a Great Value is being offered  $42.50 Product Value for only $19.99  FASHIONABLE - FUNCTIONAL - VERSATILE  A cosmetic bag can be converted into a chic, useful, and convenient clutch

27. 26 Representative Sales Support PURCHASE with PURCHASEIn order to drive sales, a PURCHASE with PURCHASE will be offered: EITHER –Far Away Paradise –Far Away Paradise Fragrance  Regular $22.50  Now $9.99 –ANEW CLINICAL Plump & Smooth Lip System  Regular $25.00  Now $9.99 Far Away Paradise ANEW CLINICAL Plump & Smooth Lip System

28. 27 Leadership New Leadership Incentive! Senior Executive Unit Leaders three  increase down-line by three representatives  TOP 5 SELLERS of the featured product  receive a cash prize of $1000  The NUMBER ONE SELLER  exclusive event with Jillian Dempsey for entire down-line

29. 28 Beauty Of Knowledge Education  Knowledge  SALES! Webinar  Create a Day to Night Webinar Beauty of Knowledge Training  Add a Day to Night course to the Beauty of Knowledge Training on YourAvon.com drive sales  Representatives can share their knowledge with customers to drive sales

30. 29 Competitors Estee Lauder –MAC –Clinique –Bobbi Brown Sephora Lancome Ulta Beauty

31. 30 ULTA 14 Piece Gift with Purchase 2 shades of Nail Polish 1 Eyeshadow Quad 2 Lip Colors 1 Lip Plumper 1 Lip/Eye Liner Pencil 1 Cheek Color 1 Translucent Powder 1 Mirror 3 Piece Brush Set

32. 31 Competitive Analysis Competitor Marketing Strategies –Gift with Purchase –Advertising Pricing Why Avon? –Less Expensive –Great Quality

33. 32 Q & A