Avon's ad outlays are expected to significantly increase with the globalization.
"One of our key goals is to increase our advertising spend," said Lynn Emmolo, senior VP-global marketing. Avon intends to boost global ad spending from 1.3% of sales in 1997 to about 3% of total sales by the year 2000.
Last year, Avon's sales were $5.1 billion.
IN 135 COUNTRIES
Avon currently is marketed in 135 countries, and CEO Charles R. Perrin has said he expects 70% of Avon's total beauty sales to come from global brands by the year 2000.
"We just felt we wanted to have one voice speaking for the brand," Mr. Perrin said, adding, "within three years, we want to double our advertising."
Consolidation discussions with MacManus had been under way for the past two months.
N.W. Ayer & Partners, New York, already Avon's U.S. creative agency, will lead the global MacManus team. Ayer also picked up U.S. media planning from Creative Media, New York.
Ayer will work with New York-based MacManus siblings D'Arcy Masius Benton & Bowles, TeleVest and MediaVest, and with Hispanic agency Bromley, Aguilar & Associates, San Antonio.
TELEVEST TAKES U.S. BUYING
TeleVest gained U.S. media buying from Creative Media, while DMB&B and MediaVest nabbed international creative, planning and buying duties. The responsibilities were previously held by a number of local shops overseas.
Bromley took the Hispanic work from Vidal, Reynardus & Moya, New York.
DMB&B, which has been Avon's agency in the Philippines since 1993, will initially use 25 of its worldwide offices to work with Avon.
However, DMB&B's international efforts are likely to expand due to Avon's increased commitment to globalization.
Ms. Emmolo said Avon will work with the MacManus global team over the next six months to determine a strategy and brand platform. A worldwide ad effort is slated to launch early in the second quarter of 1999.
Cheryl Callan, Ayer exec VP-global account director on Avon, will lead the New York-based global account team. That team will coordinate the global, regional and local ad efforts. Ms. Callan said the team will keep "cultural sensitivity and nuances" in mind while creating global positioning and strategy.
Ayer has been Avon's U.S. agency of record since `95. Ayer CEO Mary Lou Quinlan has a history with the marketer, having worked there as advertising director from 1979 to '89. Ayer also was the agency during Ms. Quinlan's tenure, but lost the account when Avon moved ads in-house in 1989. Avon later used other agencies, including FCB/Leber Katz Partners. Ayer won the business back after Ms. Quinlan joined the agency.
Contributing: Carol Krol