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Avon's International Business Model

Read the closing case study "Avon Calls on Foreign Markets"

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.

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1. Your reading assignment for this unit describes different marketing orientations. Discuss the applicability of each to Avon's global operations.

Marketing orientations include production, sales, customer, strategic marketing and social marketing. Production applies to Avon in that the company allows each country to develop the products to sell in their markets. The items are produced within each country. In terms of sales, Avon started selling in Canada (after being marketed in US only for 28 years), focusing on selling similar products. Twelve years later it expanded to Venezuela but now, Avon is quite focused on international expansion, in particular the BRIC countries. Avon focuses on the customer, strategic marketing and social marketing as they expand globally. It allows each country autonomy for product selection, based on consumer demands. Skin lightening creams in Asia, citrus fragrances in Mediterranean countries and technology driven products in Japan, for instance. The company's distribution plan is equally country-centric. In China, house-to-house sales were forbidden so the company opened "about 6,000 beauty boutiques, lined up 9,000 independent stores to carry Avon, and opened 1,000 beauty counters" (Daniels et al, 2011). In Japan, much of the business is mail order and in Argentina the products are sold in beauty centers. Avon's social marketing is also part of its' marketing orientation, promoting "a global image as a company that supports women and their needs" (Daniels et al, 2011).

2. Why is Avon so much more dependent on its foreign operations than on its home (U.S.) operations?

There is significantly less competition in cosmetics, fragrances and toiletries internationally than in the U.S. The U.S. market is substantially more developed and is very competitive. The text points out that less than 5 percent of the World's population lives in the U.S. In addition, at the point Avon expanded internationally they were concerned that their ...

Solution Summary

This detailed solution, complete with APA references, is based on the case study, "Avon Calls on Foreign Markets". It addresses the following questions:
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.

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