History of Avon
Avon was founded in 1886 as the California Perfume Company by a book salesman named Mr. David McConnell. He got the idea of opening this company when he discovered that the rose oil perfumes he was giving away with the books were the primary reason people were buying his books not the book it self.
In 1914 the first international office opened in Montreal, Canada and in 1916 California Perfume Company first incorporated in New York State and by 1964 Avon stocks have been listed on New York Stock Exchange.
The company changed its name to Avon products, Inc., in 1939 by the new president of the company the son of the founder after the river that runs through Stratford-On-Avon in the English Midlands. The name is a tribute
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In addition to be the leading direct seller, it is the sixth largest global beauty company in term of size with total assets equals to $4.2 billions in 2004.
Moreover Avon is expanding in the global market rapidly and it has business operations in 60 markets conducting over 1 billion customer transactions every year.
Avon is achieving notable strategic and financial successes. In 2004 Avon has generated $7.7 billion in revenues with a grow rate of 13% from 2003. Avon is expecting even more grow in the coming years and expects a total revenue to be around $10 billion by the year 2007.
In addition, Avon is achieving even higher success in term of grow in net income and shareholders wealth. In 2004 Avon has generated net after tax income of $846 million, 27% more than 2003. Furthermore stock price reached $38.70, which is 15% more than 2003.
Avon product categories include Beauty, which consists of cosmetics, fragrances, skin care and toiletries; Beauty Plus, which consists of fashion jewelry, watches, apparel and accessories; and Beyond Beauty, which consists of home products, gift and decorative products, candles and toys.
Avon product lines include such recognizable brand names such as Avon Color, Anew, Skin-So-Soft, Advance Techniques Hair Care, Avon Naturals, Mark and Avon Wellness.
Avon is included in fortunes ((most admired companies)) list for over a decade, selected by business week as one of the ((Top 100 Global
Hershey’s company originated with candy-manufacturer Milton Hershey’s decision in 1894 to produce sweet chocolate as a coating for his caramels. Located in Lancaster, Pennsylvania, the new enterprise was named the Hershey Chocolate Company. In 1900, the company began producing milk chocolate in bars, wafers and other shapes. With mass production, Hershey was able to lower the per-unit cost and make milk chocolate, once a luxury item for the wealthy, affordable to all.
Currently Mary Kay offers more than 200 premium products. The product assortments are innovative skin care, tantalizing makeup and unforgettable fragrances.
Revenue: Net sales between years 6 and 7 demonstrate a 33.3% increase or an increase in approximately $1.5 million.
They are introducing a wider array of high quality products for men and women which include: hair care, nail care, shaving products, fragrances, and bath items. The number of stores that carry the popular brand Elegance No7 is growing. Beauty consultants are dedicated to solely assist customers find beauty products that fit their need. Various training programs allow beauty consultants to stay up to date with the latest trends and products. This knowledge is then used to build relationships with customers and create a loyal client base by showing innovative cosmetics and exclusive lines created only for
Burt’s Bees stared in Maine in 1984 as the artist Roxanne Quimby met a local beekeeper Burt Shavitz. Roxanne used wax from Burt’s beehives to create candles that help them earned $200 at their first craft fair, and they made $20,000 within the first year. Burt’s Bees increased their production after an NYC boutique in 1989, with a new manufacturing location, additional employees, and perfection of a recipe Roxanne found in a 19th century farmer’s journal, Burt’s Bees lip balm is created and becomes the company’s best seller until today.
products, have attracted a lot of customers throughout the world. The company has a huge
David H. McConnell was the founder of avon. He was selling books door to door to New York homes. In September 1886, he changed his mind and decided to sell perfumes. He started the new business in a small office at Manhattan, New York. In 1892, McConnell started his business with a partner, and named the company "California Perfume Company". His business partner, who was living in California, suggested the name because of the abundance of flowers in California. The California Perfume Company get “Avon” treadmark on August 30. In their treadmark application, they include the description for goods and services are perfumes, toilet waters, powder and rouge compacts,
The oldest direct seller of personal care products is Avon. It was originally known as the California Perfume Company and was founded in 1886 by a New York book salesman named David H. McConnell. As a door-to-door salesman of books, he offered bottles of perfume as a free gift with each purchase. He soon realized that many of the housewives who purchased books weren't really interested in the books at all, but rather in the free bottles of perfume. Consequently, McConnell entered the fragrances and cosmetic business opening the first office in New York. Soon thereafter, a door-to-door sales force was built and by the turn of the 20th century, the company employed more than 10,000 representatives and supported their efforts with a growing line of fragrances, cosmetics, and other beauty products developed in their very own research laboratory and production facility.
Posted more than $4 billion in revenue and $235 million in net income in 2002
The decision of the company to finance its acquisitions with debt, starting from 1982, resulted to high interest expense payments every year (Exhibit 1). These high interest expense payments, combined with the decreasing net earnings made it very difficult for Avon to meet successfully its generous dividend payment policy. So the company had to reduce its yearly dividend payments starting from 1982 and onwards. Under its financial condition in 1988 Avon has no other choice but to go for further reductions in dividends. That way the company will be able to meet its heavy debt obligations and at the same time finance the "come back" to its core beauty products business.
Avon, started its journey in the early 1886 is now the oldest and the largest marketers and manufactures of the beauty products. The advertisements from “Ding dong, Avon Calling” to “Hello Tomorrow” and from “You never looked so good” to the latest one “The Company For Women”, always helped Avon to improve its image and enhance the marketing strategies to serve the purpose. One of the amazing facts about Avon includes that it’s headquarter is situated in USA but major portion of its sales comes from outside North America. Avon has captured a huge market all over the world and its distributing the beauty solutions to almost all parts of the world. With Avon being a part of 112 countries, the company has
The success story of Avon, the company for women and world’s leading direct seller for beauty products starts with a decentralized operation in 6 countries in 1980s to a centralized operation hub that serves 145 countries through 5.8 million independent Sales representatives which makes the company provide same quality product worldwide. The core of this success lies in the brave transformation that Avon
The company was established in 1910 by Elizabeth Arden, famous for introducing eye make-up in the US (About Elizabeth Arden, 2016). Elizabeth Arden’s global headquarters are located in Florida, New York and Stamford (Elizabeth Arden Inc., 2015). Geneva in Switzerland was chosen for the international managerial center (Elizabeth Arden Inc., 2015). There are 18 more countries with Elizabeth Arden’s offices distributed around the world (Elizabeth Arden Inc., 2015). In 2015, the number of full-time workers has reached 2,000 while part-time staff included 550 people in the US and 19 other countries (Elizabeth Arden Inc., 2015).
Under the direction of the new CEO, a new strategy was developed to reinvent Avon's image, improve customer satisfaction, and to increase profit margins and market share. Avon has gained an outstanding reputation as the best direct seller of beauty products. Through the continued efforts and achievements of its sales representatives, Avon is now known worldwide. Avon's core competence has mainly been its direct selling busniess model.
The Estee Lauder Companies Inc. engages in the manufacture, marketing, and sale of skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, creams, lotions, cleansers, sun screens, and self-tanning products; and makeup products,