David H. McConnell
Brief description of the products/services/business concepts
The Avon’s products are a powerful brand. Avon Representatives around the world sell four lipsticks every second. Avon has 90% brand recognition in most major markets. In fact, two out of five women worldwide purchased an Avon product in the last year. And more beauty products carry the Avon name than any other brand in the world.
Avon is the world's largest direct seller. Being an Avon Representative means you’re selling an iconic global brand while running your own local business. Direct selling is a type of sales channel, where products are marketed directly to customers, eliminating the need for middlemen – wholesalers, advertisers and retailers. Direct selling can be conducted one-on-one, in a group or party format, or online. At Avon, the “direct” part of direct selling also refers to the personal component of this sales channel; it’s about building relationships with people and offering them a high level of service and personal attention.
Avon is the world's largest direct seller. Being an Avon Representative means you’re selling an iconic global brand while running your own local business. Direct selling is a type of sales channel, where products are marketed directly to customers, eliminating the need for middlemen – wholesalers, advertisers and retailers. Direct selling can be conducted one-on-one, in a group or party format, or online. At Avon, the “direct” part of direct selling also refers to the personal component of this sales channel; it’s about building relationships with people and offering them a high level of service and personal attention.
Profile Of The Entrepreneur And The Business
David H. McConnell was the founder of Avon. Avon Founder David H. McConnell offered women a rarity in 19th century America: a chance at financial independence.
To McConnell, the product and the people were everything to the company, and he dedicated himself to ensuring that both would be successful. In addition to inspiring the Representatives, McConnell also wanted to encourage the company's employees with the same positive spirit. A century before it would become de rigueur for companies to institute employee incentive programs and hire hordes of consultants to make sure employees were happy, motivated and productive, McConnell knew just how to rally the troops. The motivational leader created a set of guiding principles that are still the heart and spirit of Avon today. They include:
- Providing an earnings opportunity so individuals can achieve financial independence and enjoy all that comes with such an accomplishment.
- Recognizing everyone's unique contributions.
- Giving back to the communities Avon serves.
- Offering the highest-quality products with a guarantee of satisfaction.
- Maintaining and cherishing the "friendly spirit of Avon."
A brief introduction of how the business started
In 1886, it was practically unheard of for a woman to run her own business. Only about 5 million women in the United States were working outside the home, let alone climbing the ranks of any corporate ladder. That number accounted for just 20% of all women.
On the heels of the Industrial Revolution in the United States, women were mainly confined to jobs in agriculture, domestic service and manufacturing, not exactly glamorous lines of work; the manufacturing sector, in particular, was notorious for its dangerous working conditions. On top of that, women’s wages across the board were a fraction of men’s.
For many women, McConnell would radically alter that scenario. The man behind the company for women was the son of Irish immigrants and grew up on a farm. Yet, it was this young man from rural New York, a visionary leader decades ahead of his time, who would become a pioneer in empowering women. McConnell, a bookseller-turned-perfume entrepreneur, would offer women the opportunity to create and manage their own businesses through what later became known as direct selling.
The origin of the idea begins during his travels as a book salesman, McConnell made two important discoveries. First, he quickly noticed that his female customers were far more interested in the free perfume samples he offered than they were in his books. He made these fragrances himself to serve as “door openers” when he traveled from home to home. Second, McConnell saw women struggling to make ends meet and recognized in many of them natural salespeople who would easily relate to other women and passionately market the products his new company would first sell -- perfumes.
On the heels of the Industrial Revolution in the United States, women were mainly confined to jobs in agriculture, domestic service and manufacturing, not exactly glamorous lines of work; the manufacturing sector, in particular, was notorious for its dangerous working conditions. On top of that, women’s wages across the board were a fraction of men’s.
For many women, McConnell would radically alter that scenario. The man behind the company for women was the son of Irish immigrants and grew up on a farm. Yet, it was this young man from rural New York, a visionary leader decades ahead of his time, who would become a pioneer in empowering women. McConnell, a bookseller-turned-perfume entrepreneur, would offer women the opportunity to create and manage their own businesses through what later became known as direct selling.
The origin of the idea begins during his travels as a book salesman, McConnell made two important discoveries. First, he quickly noticed that his female customers were far more interested in the free perfume samples he offered than they were in his books. He made these fragrances himself to serve as “door openers” when he traveled from home to home. Second, McConnell saw women struggling to make ends meet and recognized in many of them natural salespeople who would easily relate to other women and passionately market the products his new company would first sell -- perfumes.
How the business gained success
What makes direct selling such an attractive career option is the flexibility it offers. Those who engage in direct selling are independent contractors who determine how much time and energy they want to invest in their businesses. They set their own hours, and define and control their work-family life balance. An Independent Sales Representative is her own boss. Direct selling is also a way to own a business with minimal capital investment.
According to the World Federation of Direct Selling Associations (WFDSA), 62 million people, roughly the population of France, are part of the global, direct-selling sales force. Direct sellers around the world have $114 billion in sales annually.
According to the World Federation of Direct Selling Associations (WFDSA), 62 million people, roughly the population of France, are part of the global, direct-selling sales force. Direct sellers around the world have $114 billion in sales annually.
The ups & downs of the entrepreneur & his/her business
Historically, the whole premise of Avon’s business had been door-to-door selling. So what happens when no one is home to answer that door? It’s a question the company had to address in the 1970s, once more women were working outside the home. One answer was the Advance Call Back brochure, a brochure that could be left on a doorknob and included samples.
A second solution came in 1986: workplace selling. This was a way to move the Avon “store” to a place which the customer could access more easily.
Earnings Opportunity 2.0
Until the early 1990s, there was only one way for an Avon Representative to earn money: by selling to customers. That changed with the launch of Avon’s Sales Leadership program. Representatives could earn money, not just by selling, but also recruiting and training others.This new earnings avenue could exponentially increase the amount of money her Avon business generated. It’s the reason some Representatives today are running multimillion-dollar Avon businesses.
Harnessing Technology
Nothing in recent history has changed the way people interact and shop more than the Internet; the creation of a digital, virtual world has altered fundamental behavior.
Avon’s challenge was to find a way to adapt to this sea change while preserving the core personal-attention component of its direct-selling model. The company needed to marry high tech with high touch. And it did.
Always the innovator, Avon created a collection of digital tools so Representatives could use the technology - which had become so integral to their daily lives - in their businesses. Online ordering; "intelligent ordering" with prompts about special promotions; an “eBrochure;” and customized online communities all help Avon Representatives run their businesses as never before.
The Staying Power of Direct Selling
The Little Dot Perfume Set is long gone, save for a special 2011 anniversary limited edition. Change is at the core of any beauty business – shifting trends and tastes, seasonal color palettes and forever-improving technology.
But a critical constant of Avon’s global beauty business - in addition to the empowerment of women – is something that can never be replaced by the dot-com world. “The relevance of direct selling has to do with what the consumer expects from service,” says Angie Rossi, Group Vice President, North America Sales. “There will always be a space for relationship-based service to the consumer.”
Business Philosophy & Business Strategies used
McConnell believed strongly in the potential of people, and that in that potential lay the power of possibility and, eventually, success:
“If we stop and look over the past and then into the future, we can see that the possibilities are growing greater and greater every day; that we have scarcely begun to reach the proper results from the field we have before us.”
- David H. McConnell, Avon's Founder
“If we stop and look over the past and then into the future, we can see that the possibilities are growing greater and greater every day; that we have scarcely begun to reach the proper results from the field we have before us.”
- David H. McConnell, Avon's Founder
Achievements attained by Avon
Award Name | Year(s) | Presenting Organization |
United States and Corporate Awards | ||
2001-2011 | Interbrand (in collaboration with Businessweek through 2009) | |
100 Most Innovative Companies (#47 in 2011) | 2011 | Forbes magazine |
100 Best Corporate Citizens (#16 in 2011) | 2005, 2007, 2008, 2009, 2010, 2011 | The CRO magazine |
2010 | President Bill Clinton and the Clinton Global Initiative | |
50 Most Powerful Women in Business: Chairman and CEO Andrea Jung (#6 in 2011) | 2005–2011 | Fortune magazine |
Top 50 Women in World Business: Chairman and CEO Andrea Jung (#2 in 2010) | 2009-2010 | Financial Times |
Included in the “Green Ranking” of the largest 500 American companies | 2009, 2010, 2011 | Newsweek magazine |
2010, 2011 | Boston College Center for Corporate Citizenship and Reputation Institute | |
America’s Most Admired Companies | 2006, 2007 | Fortune magazine |
Top Companies for Female Executives | 2004, 2005, 2009, 2010 | National Association of Female Executives (NAFE) |
Working Mother 100 Best Companies | 2005, 2006 | Working Mother magazine |
50 Best Companies for Latinas | 2005, 2006 | Latina Style magazine |
50 Best Companies for Minorities | 2005 | Fortune magazine |
50 Women to Watch: Chairman and CEO Andrea Jung | 2005–2007 | Wall Street Journal |
World’s 100 Most Powerful Women: Andrea Jung | 2005–2010 | Forbes magazine |
Do Good Award for Avon Hello Green Tomorrow | 2010 | Ladies Home Journal magazine |
Halo Award for Avon Hello Green Tomorrow | 2011 | Cause Marketing Forum |
Argentina | ||
Recognition for commitment to “Look Good… Feel Better,” a program helping women living with cancer to maintain their self-esteem and self-confidence during treatment | 2005 | The Cosmetics, Toiletry, and Fragrance Association |
Australia | ||
Evolution Award: for efforts to reduce paper waste, use recyclable materials and cut unnecessary packaging | 2006 | Packaging magazine |
Malaysia | ||
Certificate of Commendation: for Advocacy of Ethical Business Practices | 2006 | Malaysian Ministry of Domestic Trade and Consumer Affairs |
How the product got its name
The story goes that, when visiting Shakespeare's home at Stratford-On-Avon, (Founder) McConnell was taken by the way the countryside resembled that around his home in Suffern, New York. The "Avon" name stuck with him and, in 1928, the company began to use this name on their products. David H. McConnell chose Avon after the name of Shakespeare's hometown, Stratford-upon-Avon.
Unique features about the product that makes it an outstanding product
Avon Product is Leading Technology based products. Avon is innovating the direct-selling industry, enabling Representatives to run their businesses and maximize their earnings as never before. The company leverages the most advanced digital tools – the Internet, social media and mobile technology - so your Avon business integrates seamlessly with the way people today connect, communicate, share and shop. This innovation enhances your experience as a Representative and your customer's experience shopping with you. Avon’s direct-selling innovations include:
- Customized social media environments for Representatives to reach customers and other Representatives.
- A personalized eBrochure widget to ensure that customers are never more than a few clicks away from ordering, sharing the eBrochure with friends and creating a viral sensation.
- A new application for Sales Leaders to more effectively monitor their Representatives’ orders.
- “Intelligent ordering” to help Representatives remind customers when it’s time to re-order particular products.
Avon is passionate about giving you technology that does not depersonalize your relationships with your customers, ensuring that the core element of our business is still at the heart of everything we do. The best way to describe selling for Avon? High tech, high touch, highly rewarding.
Key Factors contributing to the success of the business
In one of his regular letters to Representatives, David H. McConnell wrote: “All success lies in one’s self and not in external conditions. Misfortunes are only a discipline, and there are possibilities which often are awakened by them which suggest to us the power and strength we possess, that perhaps otherwise would never have been recognized.”
Powerful Brand
Avon Representatives around the world sell four lipsticks every second. Avon has 90% brand recognition in most major markets. In fact, two out of five women worldwide purchased an Avon product in the last year. And more beauty products carry the Avon name than any other brand in the world. As an Avon Representative, you will have the chance to sell beauty innovations that revolutionize the industry. You will have the opportunity to offer customers a broad range of products that appeal to a diverse consumer base.
Compelling Earnings Opportunity
You can earn money two ways: by simply selling products or, through the Sales Leadership program, by selling products while recruiting others at the same time. The higher your campaign (selling cycle) sales are, the greater the percentage you'll earn on those sales. Sales Leaders, Representatives who both sell and recruit, earn money based on their personal sales plus their recruits' sales, with a similar progressive earnings structure applied.
Leading Technology
Avon is innovating the direct-selling industry, enabling Representatives to run their businesses and maximize their earnings as never before. The company leverages the most advanced digital tools – the Internet, social media and mobile technology - so your Avon business integrates seamlessly with the way people today connect, communicate, share and shop. This innovation enhances your experience as a Representative and your customer's experience shopping with you. Avon’s direct-selling innovations include:
- Customized social media environments for Representatives to reach customers and other Representatives.
- A personalized eBrochure widget to ensure that customers are never more than a few clicks away from ordering, sharing the eBrochure with friends and creating a viral sensation.
- A new application for Sales Leaders to more effectively monitor their Representatives’ orders.
- “Intelligent ordering” to help Representatives remind customers when it’s time to re-order particular products.
Avon is passionate about giving you technology that does not depersonalize your relationships with your customers, ensuring that the core element of our business is still at the heart of everything we do. The best way to describe selling for Avon? High tech, high touch, highly rewarding.
Subscribe to:
Posts (Atom)