AVON
This is an excerpt from the paper...
Cover Story : AVON: THE NEW CALLING CEO Andrea Jung wants to sell more than makeup--and not just door-to-door. It's 8:30 on a Sunday evening in summer. Outside the Thomas & Mack Center in Las Vegas, where temperatures have hovered around 110F all weekend, the desert heat is still oppressive. Inside is another matter. The air-conditioning has made for a chilly stage as Andrea Jung waits in the wings to address the biggest crowd she has ever faced. And Jung herself couldn't be more cool and composed. In her red floor-length ball gown with spaghetti straps and white shoes with sharp-pointed toes, Jung, at 41, looks more like a movie star than the CEO of a $5.3 billion company. As she strides onto the stage, she is met by an explosion of applause from some 13,000 mostly forty- and fifty-something Avon women reps who have traveled to Las Vegas from all across the U.S. to see Avon's new product lines, listen to Engelbert Humperdinck, applaud Suzanne Somers' keynote speech, and do aerobics with Richard Simmons to songs like Breaking Up is Hard to Do. The contrast is striking: the svelte, fashionable, Ivy League-educated, New York fast-tracker preaching to the mostly Middle American moms and grandmas whose fashion tastes lean toward slacks for dressy occasions and sweat suits and sneakers Still, with a mike in her hand and giant TV screens in the background
. . .
ver. That's good money
for very little work. And it's also good business for Avon. Today, most
reps still fill out 40-page paper order forms in No. 2 pencil and send
them in by mail or fax. The cost of processing that order is 90 cents.
On the Web, it's 30 cents. Says Chief Operating Officer Susan Kropf: ``Anything
we can get off of paper has a significant cost advantage to us.''
Unfortunately for Jung, Avon is getting a late start. Back in 1997,
the company put up an early but basic Web site that offered only a small
fraction of its products for sale. Management consciously downplayed the
Net's role to avoid a backlash from reps. But as the importance of the
Web became more obvious, it was clear that tack wouldn't work for long.
But what would? The internal struggle over Net strategy dragged out over
three long years and cost Avon its early online lead. Now, small upstarts
like Eve.com are running away with the lion's share of the nearly $1 billion
online beauty-products business.
While executives dawdled, reps, meanwhile, reacted with outrage last
year when the company took the mild step of printing its Web address on
catalogs. Many simply covered it with their own stickers and forced the
company to quick
. . .
Some common words found in the essay are:
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Approximate Word count = 3523
Approximate Pages = 14 (250 words per page)
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