of representatives has declined as the impact from The Great
Recession waned and Avon’s internal troubles came to light.
According to industry analysts, in 2007-08, total sales repre-
sentatives grew by 7% year-on-year as people reached out for
supplementary sources of income. As a result, Avon posted an
8% gain in revenues for 2008. The number of representatives rose
from 6.2 million in 2009 to 6. 5 million in 2010 that resulted in
an increase in revenues from $10.2 billion to $10.8 billion during
the same period. However, the number declined to 6. 3 million
in 2012, resulting in lower overall revenue. To help turn around
North American operations, Pablo Munoz was appointed senior
vice president and president, North America. He joins Avon from
Tupperware Brands Corporation, where he has worked since
1993, most recently as group president of the Americas region.
• Innovate the consumer proposition;
• Transform the representative experience; and
• Optimize geographies.
More specifically, Avon executives are sharpening consumer
insights and parlaying that knowledge into creating and executing focused category strategies in color, fragrance, skin care and
fashion and home. To boost the sales rep’s experience and income
potential, Avon will rely on more technology tools and well as
restore the associates’ pride in Avon, according to McCoy.
Finally, the company is committed to shoring up weak national markets and existing ones that no longer make sense.
But, as more than 70% of company sales come from emerging
Irina Shayk is Avon’s newest global ambassador.
markets, Avon executives insist the company is well positioned to
grow as global purchasing power shifts East and South.
In April, the company said it was eliminating more than 400
jobs and restructuring or abandoning underperforming businesses
in Africa, the Middle East and Europe.
The cuts, which represent about 1% of Avon’s work force, are
part of the company’s plan to save $400 million by 2016. The 400
terminations are on top of the elimination of 1,500 jobs that the
company announced in December when Avon said it would exit
South Korea and Vietnam.
During the past year, a wounded Avon was being circled by
Coty Inc. But in May 2012, Coty dropped its $10.7 billion offer in
order to focus on its own IPO.
6.JOHNSON & JOHNSON
NEW BRUNSWICK, NJ
Sales: $7.4 billion for baby, oral and skin care products. Corporate
sales: $67.2 billion. Net income: $9.6 billion.
Key Personnel: Alex Gorsky, chairman and chief executive officer; Sandra E. Peterson, group worldwide chairman.
Major Products: Listerine, Johnson’s Baby, Aveeno and Neutrogena.
New Products: Neutrogena—Naturals Acne Foaming Scrub,
Naturals Acne Spot Treatment and Naturals Acne Cream
Cleanser; Beach Defense Sunscreen Spray (SPF70 and SPF30),
Sunscreen Lotion (SPF70 and SPF30); Pore Refining Daily
Cleanser, MoistureSmooth Color Stick, Crease Proof Eye
Shadow, Healthy Lengths Mascara, Shine Control Liquid
Makeup, Healthy Skin Primer, Shine Control Primer, Ultra
Gentle Daily Cleanser, Shine Control Powder; Rapid Tone
Repair Moisturizer and Night Moisturizer; Pore Refining
Exfoliating Cleanser and Toner. Aveeno—Baby Organic
Harvest lotion, Baby Eczema Therapy Moisturizing Cream,
Smart Essentials Daily Nourishing Moisturizer with SPF 30,
Ageless Vitality Elasticity Recharging System, Living Color,
Positively Nourishing Soothing 24-Hour Body Moisturizer,
Positively Nourishing Hydrating Body Wash, Pure Renewal
Shampoo; Clean & Clear Morning Burst Boost Body Wash and
Fruit Infusions Facial Reviving Cleanser. Listerine Total Care
Zero. Lubriderm Men’s 3-in-1 Fragrance Free Lotion. RoC