Corporate Press Releases

Avon Unveils New Brand, Strategy for Global Business Reaching Young Women

Oct 17, 2002

             'mark.' Designed to Reach Future Generations of
                   Consumers and Sales Representatives

                    U.S. Launch Planned for Fall 2003

NEW YORK, Oct. 17 /PRNewswire-FirstCall/ -- Avon Products, Inc. (NYSE: AVP) today announced the brand name and strategic direction for its planned global direct-selling beauty business focusing on the fast-growing market for young women.

The brand will be named "mark."™, reflecting its positioning as the beauty brand that celebrates remarkable young women who are making their mark in the world, according to Deborah I. Fine, president of Avon Future, the Avon business unit responsible for the new venture. "Our vision for 'mark.' is to provide young women with an engaging product line, a direct selling opportunity, and a unique brand experience that engages them in a world of community, participation and empowerment," Ms. Fine said. "'Meet mark.(SM)' will be the invitation to both buyers and sellers into this new world of beauty."

"Beauty rituals have long been the experiences through which young women relate," Ms. Fine added. "We call it Social Beauty(SM). 'mark.' will offer the products and opportunities that help enhance those relationships." The new line will launch in the fall of 2003 in the U.S., and roll-out to global markets beginning in second quarter 2004.

According to company research, there are more than 300 million young women in the 16-24 age group in Avon's top 30 markets who spend over $200 billion annually on consumer goods. "'mark.' is designed to reach young women who represent future generations of Avon customers and Representatives," Ms. Fine said. "For years, Avon has been known as 'the company for women.' Now, we also will be known as 'the company for young women.'"

At launch, the "mark." brand will be sold both through the company's core direct selling channel of 500,000 active U.S. Representatives and a separate "mark." sales force.

Avon said its research shows that each Representative in the U.S. knows an average of 13-21 young women between the ages of 16-24. "Through Avon's core direct selling channel alone, we have a powerful opportunity to recruit and sell within a group of up to 10.5 million young women during our first year," Ms. Fine said.

In addition, Avon plans simultaneously to recruit a dedicated "mark." sales force through an integrated marketing campaign targeted to young women at colleges, high schools, shopping malls, and other youth-oriented venues. The recruiting campaign is expected to include print and television advertising, and other forms of direct outreach to young women. In addition, "mark." Representatives will have the opportunity to recruit other young women to advance their earnings opportunity.

"'mark.' will provide a unique earnings opportunity by tapping directly into young women's existing, daily social and beauty rituals," Ms. Fine said. "As the 'CEO' of their own businesses, young women who join the "mark." sales force will achieve their financial goals and become Goal Models(SM) for young women worldwide."

The product line will span several hundred stock-keeping units (SKUs) of cosmetics and related products, with fun, fresh, modern packaging and affordable pricing. The products will be sold in their own separate "magalog" that will feature both products and editorial material of interest to young women. The company expects to launch with more than 10 million magalogs during each six-week sales campaign, and also reach consumers through the launch of 1-800 meetmark and .

Andrea Jung, Avon Chairman and CEO, said, "We are very excited about this global opportunity to extend the equity of the Avon brand and power of our core direct selling business to a new customer segment. Around the world, the name "Avon" stands for aspiration and empowerment. We look forward to engaging young women on a global scale with the Avon earnings opportunity."

Ms. Fine also announced Wieden+Kennedy as its agency of record for launching "mark." to consumers.

Avon is the world's leading direct seller of beauty and related products, with approximately $6.0 billion in annual revenues. Avon markets to women in 143 countries through 3.5 million independent sales Representatives. Avon product lines include such recognizable brand names as Avon Color, Anew, Skin-So-Soft, Advance Techniques Hair Care, beComing and Avon Wellness. Avon also markets an extensive line of fashion jewelry and apparel. More information about Avon and its products can be found on the company's web site .

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SOURCE: Avon Products, Inc.

CONTACT: Media - Victor Beaudet, +1-212-282-5344, Debora Coffey,
+1-212-282-5660, Investor - Renee Johansen, or Rob Foresti, +1-212-282-5320,
all of Avon

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