Sunday, March 15, 2009

Increased Ad spend Helps Boost Avon's Fourth Quarter

Avon's turn around is starting to happen, after the company reported a 9 per cent boost in sales for the fourth quarter on the back of strong fragrance and color sales.

Fourth quarter sales reached $2.6bn, while full year revenue was up 8 per cent to reach $8.8bn, figures that were largely ahead of analysts' expectations. The company said that on a regional basis strong performances in the booming economies of China and Latin America had also helped to drive sales. Fourth quarter net earnings were largely unchanged with last year, coming in at $184.1m, compared with $183.2m in the year-ago period. The company said that this figure was significantly impacted by $44m in costs for the current restructuring phase. For the full year net earnings were down 44 per cent, from $847.6m in 2007, to $477.6m for the current, a figure that was again attributed to the company's comprehensive restructuring program. In the all-important North American market, the company reported a jump in fourth quarter sales of 4 per cent to reach $749.9m, with higher beauty sales growth of 2 per cent, representing the first time in eight consecutive quarters that the figure was positive. The company also said that positive responses to increased representatives as well as a reduction in fuel prices had helped to boost the bottom line. In Latin America sales grew 13 per cent to reach $770.2m, boosted by the on-going strength of the Brazilian market, pushing top-line growth at 30 per cent for the full year to exceed the $1bn mark. Meanwhile sales growth in the fourth quarter came in at 50 per cent in Colombia, offsetting a drop of 9 per cent in the Mexican market. Results from Eastern Europe, Middle East and Africa were up 10 per in the quarter, to reach $355.9m, underscored by a strong performance in the UK and Turkish markets. In Central and Eastern Europe, Russia was the main driving force behind a 17 per cent jump in sales for the quarter, to reach $456.6m. In Asia, the Asia Pacific region saw sales slump 2 per cent to reach $222.6m, a figure that was counteracted by a far stronger performance in the China market where sales grew 28 per cent to reach $67.2m.

Monday, March 9, 2009

Jennifer Hudson new Avon spokeswomen

Jennifer Hudson, who went from little-known performer to Oscar winner in the past year, has a new role to play: representing a perfume. Avon Products Inc. said on Wednesday it had sighned Hudson, who won this year's Academy Award for best supporting actress for her role in the musical "Dreamgirls", as spokeswomen for it's Imari brand and new scent, Imari Seduction. The selection of this talented actress as the spokeswomen for Avon will definitely create a positive image among consumers. Kate Hudson has a wide fan base and no doubt her fans would want to associate themselves with products their favourite actress endorses.

Monday, March 2, 2009

Avon eyes metrosexual market

International beauty firm Avon, announced it is to launch a number of cosmetics products marketed exclusively at the male market - marking a break in a 118 year tradition for the company. In a bid to cash in on the growing "metro sexual trend" - referring to the increasing number of urban male consumers who spend considerable amounts of time and money on their appearance,the company has launched it's first ever cosmetics and personal care lines to be marketed directly at the male consumer in it's "M-The Men's Calalogue" publication

Avon will be launching two product lines to appeal to the "family man, career man and the athlete" - Pro Sport Daily Performance, which includes aftershave, face wash and deodorant - as well as a higher-end Pro Extreme Maximum Performance range, which includes a raft of anti-aging and exfoliating products, primarily orientated towards the metro sexual male market.

Despite the company referring to itself as 'the company for women', Amanda Webb, US marketing manager for Avon, mentions that the company has always supplied men's items, although they were "traditionally marketed to women buying for their men through Avon reps."

Dallas women stars as lesbian face of Avon in super bowl

According to an entry by Tammye Nash from Dallas Voice News, two years ago Avon chose one of it's sales rep DeZengotita to serve as the "faces of Avon" around the world in an advertising and marketing campaign. Now that commercial is going to to get one of the largest television audiances of the year when it airs on the 13th of this month, during the superbowl. Ten women, all Avon sales reps were chosen for the commercial, five were selected to appear in Avon's global marketing campaign aimed at recruiting sales reps.DeZengotita came out top among the five. The aim of the commercial was not to promote Avon's products but rather to specifically target the issues with the economy right now. The idea is to tell people that if they are worried about the downturn in the economy and are looking for a way to make extra money,now is the perfect time to become an Avon sales rep. No doubt this is yet another innovative tactics by Avon to get the attention of women in it's pursuit of becoming a company truly devoted to feminity.