Contents:

OUR VIEW CATALYST SUMMARY ANALYSIS Introduction Avon invests in a new R&D center to be at the forefront of innovation, particularly in anti-age products Avon invests $100m in new R&D center Anti-aging products are a key growth area Avon reviews advertising strategies to compete more effectively with its rivals Advertising budget to double by 2008 New advertising will focus on creating an emotional connection Avon is embracing new sales techniques Internet operations are due to expand abroad Avon seeks out male customers Avon seeks opportunities in emerging markets China lifts direct sales ban creating renewed growth for Avon India is also high priority for Avon growth Despite small per capita spend, emerging markets create opportunities via growing populations in key consumer groups APPENDIX Case study series Methodology Secondary sources Further reading Ask the analyst List of Tables Table 1: Key features of Avon R&D center List of Figures Figure 1: Avon used to rely on retail store sales only in China, a position which changed with the lifting of the direct sales ban in March 2006