Amid high-profile announcements concerning the possible sale of Avon Products North American arm to private-equity firm Cerberus Capital Management LP, Tenet Partners, a leading brand innovation and marketing firm has turned its attention to evaluating the strength of the Avon brand.
On the heels of assertions by activist investors Barington Capital and NuOrion Partners that the cosmetics maker is significantly undervalued, Tenet Partners’ CoreBrand Index (CBI) has found that Avon’s BrandPower – a weighted composite of two key metrics that contribute to a brand’s ability to drive long-term growth: Familiarity and Favorability, has been steadily increasing since 2005.
“The successive rise of Avon’s BrandPower suggests there is untapped potential for the company to exert its leadership position in the marketplace,” said Hampton Bridwell, Tenet Partners CEO and Managing Partner. “Avon is an American institution that has empowered generations of women. However, as the company looks to the future, a renewed focus on gaining relevance among younger, and now digitally-driven consumers, will be critical to unlocking the full value of one of its most important assets, the Avon brand.”
As the chart indicates below, Avon’s BrandPower has climbed an impressive 11 points since 2005. Most recently, its brand Favorability fell just one spot below Apple, while its Favorability during 2015 outperformed its top competitors including Revlon, L’Oréal, and Estee Lauder, demonstrating that U.S. consumers still hold the brand in in high regard.
Founded in 1990, Tenet Partners’ CoreBrand Index is the longest continuous quantitative database examining the corporate reputations and brand valuations of nearly 1,000 companies across 50 industries. The Familiarity (awareness) and Favorability (perception) of tracked brands are measured and combined into a single metric called BrandPower. The audience used to measure BrandPower is business decision-makers who represent the perceptions of a cross-section of informed American consumers.
To learn more about Avon’s performance on Tenet’s CoreBrand Index and to schedule an interview with a Tenet executive, please contact:
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About Tenet Partners
Formed from the merger of Brandlogic and CoreBrand, Tenet Partners is a brand innovation and marketing consultancy that helps companies create brand value and unearth business opportunities by putting customers at the center of their business strategies. For more information, please visit us at tenetpartners.com and follow us on Twitter and Facebook.