lorealprojectii-finalrepor(编辑修改稿)

lorealprojectii-finalrepor(编辑修改稿)内容摘要：

u PwC analysis 244 381 485 Operating Revenue Amount Bath amp。 bodycare Operating Revenue 1999 to 20xx Value: RMB Million 49 64 98 • Revenue of bath amp。 bodycare products increased obviously in 20xx paring with it in 1999 and 20xx。 PwC 22 02040601999 20xx 20xx0501001502001999 20xx 20xxMarket and Products  Category performance Avon Group Makeup Operating Revenue 1999 to 20xx Value: RMB Million Source： Industry interview Industrial and mercial administration bureau PwC analysis 70 121 187* Operating Revenue Amount Fragrance/ladycare Operating Revenue 1999 to 20xx Value: RMB Million 47 57 46 • Revenue of makeup products increased faster than any other category at 63% CAGR from 1999 to 20xx。 • Revenue of fragrance and ladycare products decreased at –% CAGR from 1999 to 20xx。 * Up2U launched in Nov, 20xx and the revenue of the last two months in 20xx was nearly RMB 7 million. PwC 23 Market and Products  Marketing Promotion Avon Group Source： Industry interview PwC analysis • Newspaper and magazines‟ advertisement accounted for over 90% of the total newspaper, magazine and outdoor advertisement expenditures in 20xx。 • Currently Avon spends little on the outdoors in small cities, it focuses only on the large cities such as Shanghai。 Avon hired the Clear Media Co., Ltd to manage the outdoor advertisement and it plans to increase greatly the outdoor ads from July, 20xx。 • All the printed advertisement are done by the Consulting Center of China Advertisement Association。 Newspapers, Magazines, Outdoors etc. 65% TV, Radio etc. 35% Total Advertisement Expenditure • Totaled nearly RMB 90 to 100 million in 20xx*。 • Targeted more than 70 cities in China with a focus on Beijing, Shanghai and Guangzhou。 • Will increase ad spending in the next 1 – 3 yeas。 • The expenditure on TV ad will grow faster than that for the other media。 • Most expenditures are on the TV advertisement。 • Avon used most of the TV advertisement for the new brand Up2U in 20xx。 • Shanghai OMD Advertisement Company was the main agent to handle Avon‟s TV advertisement。 * There are two explanations about the figure: The figure is the gross expenditure instead of the expenditure。 Nearly 20%25% of the figure was the expenditure which was paid in 20xx but the advertisement will be carried out actually in 20xx。 PwC 24 Market and Products  Marketing Promotion Avon Group Source： Industry interview PwC analysis Currently AVON brand and Up2U use the similar promotion approaches, but the emphasis is different : Activities Membership Sales Beauty Lecture Free Nursing/Hairdressing Beauty Center* Sales + Gift Discount/Coupon AVON POP Show Up2U Most often used approach Less frequently used * The beauty center of Avon means the center in the large franchise shops and counters. PwC 25 Market and Products  Marketing Promotion Avon Group Source： Industry interview PwC analysis Avon Member Club To join • Submit application forms to the Avon offices, franchise shops, counters, salespersons or via inter directly。 • Mail RMB 48 to the special account of Avon China。 Member benefits • Gift product for the first joiner。 • Free trial new products (for test only)。 • Birthday gift products • Exclusive plan to get coupons or bonus products when making purchases。 • Monthly magazine “Women Speaking” for one year。 • Consultation for the beauty problems。 • Beauty classes and parties, etc。 PwC 26 II. Avon Group i: Target Overview ii: Market and Products iii: Distribution Channel iv: SWOT Analysis and Comments iv: Financial Analysis PwC 27 Avon Products Distribution Channel  Current Distribution Channel – Avon Group Avon Manufacturing Avon China 79 Offices in 77 cities Distributors Counters Consumer Franchise Shops/counters Main responsibilities of the offices are: • Help set up franchise shops。 • Day to day management of the franchise shops。 • Provide training to the staff of the franchise shop and special counters in the department stores。 • Distributor management • Plan and anize promotional activities。 • Product ordering and logistics。 Avon has set up nearly 79 offices in 77 cites covering almost all the provinces in China and it has built up an extensive works from small to large cities. Miscellaneous Source： Public information from Avon Industry interview PwC analysis PwC 28 Distribution Channel Source： Industry interview PwC analysis  Distribution and Sales Support Avon Group Avon Distribution Network Total Regional Headquarters: 4 Total offices: 79* Headquarter: Shanghai Province: Zhejiang Jiangsu Anhui East • Four regional headquarters responsible for each region。 • 79 offices in 77 cities。 • Plan to set up more offices in the small to mid size cities in order to develop new potential market。 ：Headquarter: Chengdu Province: Shanxi Sichuan Chongqing Hubei Qinghai Ningxia Xinjiang West Headquarter: Guangzhou Province: Guangdong Fujian Yunnan Guangxi Hainan South Headquarter: Beijing Province: Heilongjiang Tianjin Shandong Liaoning Shanxi Jilin North * The list of offices can be found in the appendix. PwC 29 Distribution Channel  Terms with Distributors – Avon Group Distributors (counters in department store and supermarket) Other Policies Credit Term Trading Margin Cash on delivery (15 days after goods arrive to the key distributors) Basic Discou。