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3 pages/≈825 words
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APA
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Business & Marketing
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Research Paper
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English (U.S.)
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Topic:

Avon International Business Model

Research Paper Instructions:

Avon's International Business Model 1. Your reading assignment for this unit describes different marketing orientations. Discuss the applicability of each to Avon's global operations. 2. Why is Avon so much more dependent on its foreign operations than on its home ( U.S.) operations? 3. Discuss socioeconomic and demographic changes that could affect Avon. 4. How might a global recession, such as the one that began in 2008, impact Avon's operations? 5. What are the major competitive advantages that Avon has? How easily might other companies duplicate these advantages? 6. Avon does not sell within the United States in retail establishments (with the exceptions of kiosks handled by some of its reps). What are the pros and cons of distributing that way? 7. If you were advising Avon on the selection of new suppliers, what would be your major concerns as you evaluate firms that are potential suppliers? What criteria should the company use to make decisions on where to manufacture their products? 8. Identify the challenges Avon faces in both maintaining and expanding its global manufacturing and supply chain network given the dynamics of today's competitive environment.

 

Avon Calls on Foreign Markets  

Avon Calls on Foreign Markets Avon, founded in 1886, is one of the world's oldest and largest manufacturers and marketers of beauty and related products. 92 Many are most familiar with Avon through its long- standing ad, ' Ding dong, Avon calling', but the company has recently switched to 'Hello Tomorrow' to change its image and better reflect the company's new marketing approaches.

 

Where Opportunity Currently Knocks

Avon is headquartered in the United States, but over three- quarters of its sales and employees are outside its North American division. It seems to be selling everywhere moisturizer to Inuits above the Arctic Circle and makeup delivered by canoe to residents of Brazil's Amazon region. It has its own sales operations in 66 countries and territories, and it distributes to another 44. Altogether, there are about 5.8 million independent representatives selling Avon products. However, Avon was 28 years old (an adult by human standards) before it ever ventured abroad, and then only to nearby Canada. Forty years later, a geriatric in human terms, it moved into its second foreign market, Venezuela. Map 16.1 shows how Avon now divides the world regionally and the portion of its business in each region. 

Research Paper Sample Content Preview:

Avon
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Institution:
Avon products Inc. is one of the international companies selling products within personal care, household and beauty sector. Founded in America by David H. McConnell in 1886, it is fifth largest company in the world selling beauty, household and personal care. It is also the second largest company that has perfected the art of direct sales. Majority of the sales are generated through sales where the company uses mostly ladies to sell the products from door to door (Avoncompany.com, 2014). Throughout the world, there are more than 5.8 million sales representatives that sell to the customers directly. It was after 28 years when the company ventured into the international business, where it established a market in Canada. Forty years later it ventured into the Venezuelan market.
The company has come up with some strategies to help with the global markets. The country managers have been given the authority to come up with products that suit their customers. It is for this reason that the company has had the opportunity to come up with products combinations such as insect repellents, moisturizer and sunscreens in warm places such as Brazil, while in Asia most of the products have skin lighteners. In Spain, products are sold in large bottles; in Argentina, products are focused on health and wellness, while Japan’s market mostly sells products that are technology oriented. The company has always maintained a standardised global branding strategy (Jopson & Thomas, 2014). The uniform branding helps with cost reduction and also informs the customers that the company is international. Where the company has acquired other companies, it maintains the branding by the said company to minimize confusion to the customers. It is also common that most of the products use English and French as products from the US and France are considered high quality (Avoncompany.com, 2014).
The pricing is controlled through a two tier system. This makes sure that the company can capture the higher markets and the lower markets as well. This way the company is assured of wide market range and sustenance. To promote its products globally, the company uses brochures and the catalogues as the primary strategy. However, it also uses billboards and media broadcasts, to reach out to its customers. The idea behind the promotion activities is that they want to introduce new products, accelerate the existing sales and at the same they try to change the public perception about their products. To distribute the products at the global platforms, they use the independent sales representatives, mail-orders, boutiques, stores and beauty counters depending on the country in question.
The company has not been relying on the American market due to the fact that it does not have potential for growth. Much of the market opportunity has been exploited in the past and there is not much of a chance for the company. Growing in this industry wi...
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