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Q: Avon`s strategy? ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: Avon`s strategy?
Category: Business and Money > Advertising and Marketing
Asked by: chieh-ga
List Price: $20.00
Posted: 14 Dec 2002 13:19 PST
Expires: 13 Jan 2003 13:19 PST
Question ID: 124673
I am going to find some information about Avon`s manufacturing, sales
and distribution, labor and legal issues. Could anybody help me where
can I find these information on the net?
Answer  
Subject: Re: Avon`s strategy?
Answered By: ragingacademic-ga on 14 Dec 2002 14:34 PST
Rated:4 out of 5 stars
 
Dear chieh,

You requested help finding information about Avon’s manufacturing,
sales
and distribution, labor and legal issues.

There is a lot of information about Avon on the Web.  Let’s start,
quite trivially, with Avon’s Web site that is located at –

www.avon.com

When researching a company, there are two good places to look on the
company’s Web site.  The first is the “About” section – in Avon’s
case, it is located at –

http://www.avoncompany.com/about/

…and it includes information about the history of the company, its
products, issues relating to diversity and corporate responsibility
(relates to labor and legal issues, respectively), as well as a press
room that provides access to company press releases – as well as to
stories about the company published elsewhere.

The second section to look at is the “investors” section – in Avon’s
case it is called “Avon Investor” and it is located at –

http://www.avoncompany.com/investor/

This section includes comprehensive information about all aspects of
the company with a focus on financial results.  You will be able to
access the company’s financial reports, additional information about
the company and its executives, as well as recorded webcasts and
events.

Our next stop is also well known – but it provides a significant
amount of information about the company – Yahoo! Finance –

http://finance.yahoo.com/

The ticker for Avon Products is ‘AVP’ – enter AVP in the search window
and hit enter to access information about the company.  Follow the
links to access the information.  You may find that you are especially
interested in the “Profile” and “News” sections, they will provide
substantial information on the topics you are exploring.

Business Week also provides a snapshot of the company at –

http://host.businessweek.com/businessweek/Corporate_Snapshot.html?Symbol=AVP

Hoover provides a great variety of information about Avon – note that
the “better” stuff is only available to subscribers –

http://www.hoovers.com/co/capsule/2/0,2163,10152,00.html#COMPETITORS


Next, we’ll explore company-specific articles and analysis available
freely on the Web.

First, an article in Baseline dated Oct 29, 2001 and written by Mary
Jo Foley and Tom Steinert-Threlkeld entitled “The Ultimate CRM
Machine.”

http://www.baselinemag.com/article2/0,3959,493,00.asp

This article explores sales and marketing strategies at Avon, with a
focus on the companies Customer Relationship Management initiatives.

Chief Executive wrote a skeptical article about the company in 2000 –

http://www.chiefexecutive.net/mag/156/cover.htm

The Wall Street Journal wrote about Avon’s R&D efforts in a May 23,
2002 article by Emily Nelson titled “Avon to Spruce Up Its R&D Budget
With $100 Million and New Facility” –

http://online.wsj.com/article/0,,SB1022119135744482440,00.html?mod=us_business_biz_focus_hs

…And wrote more about Avon in February 2002 –

http://online.wsj.com/article/0,,SB1013020857875942200,00.html?mod=article-outset-box

…As well as in May 2001 –

http://online.wsj.com/article/0,,SB989355122592692356,00.html?mod=article-outset-box

Hoover’s provides a list of links to current newswire stories about
the company –

http://hoovnews.hoovers.com/fp.asp?layout=ticker_news&which=news&symbol=AVP

In mid-2001, the company branched out and began selling products
directly over the Internet, for the very first time positioning itself
as a direct competitor to its sales workforce –

http://www.ananova.com/business/story/sm_364513.html?menu=

ABCNews provides more information on Avon’s Web strategy in this March
2002 article –

http://abcnews.go.com/sections/business/TheStreet/avon000315.html

If you want to spend some money on a more in-depth research report,
marketresearch.com has an extensive Avon report for sale for $50 –

http://www.marketresearch.com/product/display.asp?ProductID=787200&xs=r

On the labor front, Avon had recently laid off a large number of
employees –

http://www.ananova.com/business/story/sm_565704.html?menu=

For a glimpse into some of the legal issues Avon faces, take a look at
–

http://www.kohnswift.com/avon081198pr.htm

In 1998, Avon decided to try and terminate its “network marketing”
approach – but many Avon sales agents were in an uproar, as they were
promised they would be able to leverage their sales networks,
essentially, until they themselves decided to pull the plug.

Another legal issue has surfaced more recently, and it relates to
inappropriate accounting –

http://www.sec.gov/litigation/admin/34-46215.htm

A summary of the issues tackled is as follows –

“In the first quarter of 1999, Avon failed to properly value costs
that it had capitalized in connection with an internal-use software
development project. After nearly three years and $42 million, Avon
stopped the project in April 1999 and wound it down. Instead of
writing off all of the costs in conformity with generally accepted
accounting principles ("GAAP"), Avon only wrote down $15 million,
failing to analyze under the applicable accounting standards whether
it was probable that the entire asset would be completed and placed in
service. Avon also made misleading disclosures and omissions in its
financial statements concerning the nature of the write-down. As a
result, the financial statements Avon filed with the Commission for
its first quarter of 1999 and its 1999 fiscal year were materially
misstated and misleading because the entire asset should have been
written off and the nature of the partial write-down was improperly
described.”
Note that any outstanding legal issues would be spelled out in the
company’s annual report, available in the investors’ section of the
company Web site.

I hope this response adequately addresses your request.  Please let me
know if you are in need of additional information concerning this
query.

Thanks,
ragingacademic


Search Strategy:

“avon products”

Request for Answer Clarification by chieh-ga on 14 Dec 2002 18:06 PST
Dear Ragingacademic,

Thank you for your answering. It's quite helpful.
However, I still cannot find the details about Avon's manufacturing,
and information about Avon's sales and distribution.
Thank you for your help.

Chieh

Clarification of Answer by ragingacademic-ga on 14 Dec 2002 19:07 PST
Chieh - 

I'll be glad to conduct additional research on your behalf.  I will
also try and help you see where the links I had provided you with
supply you with information concerning Avons' sales and distribution.

There is probably less about manufacturing here than you need,
although there is a very good article on R&D.  Please help me
understand what you would like to see in this regard.  What will you
be using this information for?

Finally - up until now I have only referenced free materials available
over the Internet - may I direct you to some articles that may require
a trip to the library?

thanks,
ragingacademic

Request for Answer Clarification by chieh-ga on 15 Dec 2002 12:09 PST
Hi,  ragingacademic!
I will use the information for a marketing case.
Please direct me to some articles that may require a trip to the library!
Also, I need an article on R&D and sales&distribution. 
Could you help me? I cannot find it.

Thank you very much!

Clarification of Answer by ragingacademic-ga on 15 Dec 2002 15:58 PST
Dear chieh,

Here are some additional pointers to articles on manufacturing –

Avon’s recent reengineering efforts:

Avon to Realign U.S. Manufacturing Operations 
PR Newswire; New York; May 23, 2002;

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=105&STORY=/www/story/05-23-2002/0001734021

Avon Plans to Realign European Manufacturing to Meet Accelerating
Demand and Reduce Costs
PR Newswire; New York; Apr 12, 2002;

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=105&STORY=/www/story/04-12-2002/0001704847

I also found a tremendous treasure trove of stories about Avon at the
PR Newswire site – Avon’s page is at –

http://www.prnewswire.com/gh/cnoc/comp/079575.html

Main Avon stories in past three years as per Proquest –

TOP 100 / New York City / Company Profiles (26 - 42); [QUEENS Edition
4]; Newsday, Long Island, N.Y.; Jun 10, 2002; Combined editions; pg.
D.36

Avon bringing 200 jobs back Springdale lost 613 positions in 1992;
[FINAL Edition]; Roy Wood Post staff reporter; Cincinnati Post,
Cincinnati, Ohio; May 24, 2002; pg. 7.B

Avon Products to Move Rockland County, N.Y., Operations to Springdale,
Ohio; Judith Schoolman; Knight Ridder Tribune Business News,
Washington; May 24, 2002; pg. 1

Avon Polishing Up Product Research Plans to shut Suffern plant, boost
spending by $100M; [QUEENS Edition]; BLOOMBERG NEWS; Newsday, Long
Island, N.Y.; May 24, 2002; Combined editions; pg. A.59

AVON CLOSING N.Y. FACTORY, FIRING 3,500; [SPORTS FINAL Edition];
JUDITH SCHOOLMAN DAILY NEWS BUSINESS WRITER; New York Daily News, New
York, N.Y.; May 24, 2002; pg. 48

Avon to Close Plant in New York State and Cut 260 Jobs; New York
Times, New York, N.Y.; May 24, 2002; Late Edition (East Coast); pg.
C.4

Avon will shut Suffern plant; [All Editions.=.Two Star B. Two Star P.
One Star B]; Compiled from staff and wire reports; The Record, Bergen
County, N.J.; May 24, 2002; pg. B.03

Avon to Realign U.S. Manufacturing Operations; PR Newswire, New York;
May 23, 2002; pg. 1

Avon cuts jobs; [Final 4 Edition]; The Times, London (UK); Apr 13,
2002; pg. 50

Avon Plans to Realign European Manufacturing to Meet Accelerating
Demand and Reduce Costs; PR Newswire, New York; Apr 12, 2002; pg. 1

[ BUSINESS BRIEFS ]; [1]; Chicago Sun - Times, Chicago, Ill.; Mar 19,
2002; pg. 46

Avon to Lay Off 3,500 Workers, 8% of Work Force; New York Times, New
York, N.Y.; Mar 19, 2002; Late Edition (East Coast); pg. C.4

AVON'S QUARTERLY PROFIT SLUMPS; [Broward Metro Edition]; Steve
Matthews Bloomberg News; South Florida Sun - Sentinel, Fort
Lauderdale, Fla.; Feb 7, 2002; pg. 3.D

Avon to Close Jewelry Manufacturing in San Sebastian; Caguas-based
Direct Selling Operations Not Affected; PR Newswire, New York; Feb 1,
2002; pg. 1

Avon Names Susan J. Kropf President and Chief Operating Officer; PR
Newswire, New York; Jan 15, 2001; pg. 1

QUEENS INC. / Survey: NYC Ranks 8th In High Technology Jobs; [QUEENS
Edition]; James Bernstein, Katia Hetter, S. Mitra Kalita, Bloomberg
News; Newsday, Long Island, N.Y.; Dec 8, 2000; Combined editions; pg.
A.87

Avon Expects New Business Initiatives to Contribute to Long-Term
Growth; PR Newswire, New York; Sep 27, 2000; pg. 1

Lesson From E-Business Leaders: Results Matter -- InternetWeek 100
companies are generating impressive returns on their Net investments;
BOB VIOLINO; InternetWeek, Manhasset; Jun 12, 2000; pg. PGS.31

BRIEFLY Series: BRIEFLY; EARNINGS; [SOUTH PINELLAS Edition]; St.
Petersburg Times, St. Petersburg, Fla.; Nov 5, 1999; pg. 2.E

As I had mentioned, some of these may have you going to the library –
or, if you have online access to Proquest, you could search for the
articles there.

The Baseline CRM article, some of the WSJ material, and all of the
articles related to Avon’s Internet efforts will provide you with
information about the company’s sales and marketing strategies and
efforts.

I hope this response adequately addresses your request.  Please let me
know if you are in need of additional information concerning this
query.

Thanks,
ragingacademic
chieh-ga rated this answer:4 out of 5 stars and gave an additional tip of: $5.00
Thank you for your help.
It's quite helpful.
I appreciate it.

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