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    Business in Foreign Markets

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    Read the closing case "Avon Calls on Foreign Markets". Incorporate into your analysis responses to the following questions:

    1. Discuss the applicability of different marketing orientations to each of 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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    Solution Preview

    In accordance with Brainmass standards, this is not a completion of assignment but only guidelines.

    Step 1
    The first orientation, namely marketing concept applies to Avon. This concept requires that Avon make its product more efficiently. This concept applies to Avon because it makes its products efficiently, and markets them efficiently. The second orientation is the production concept. This concept does not apply directly to Avon. The managers of Avon do not concentrate on low, cost, and mass distribution. Avon makes products that fulfill the needs of the local population. The third concept is the product concept. According to this concept high quality and high performing products that serve an individual purpose sell well. Even though Avon products are of good quality and perform well, Avon focuses on personal selling and brand recognition to sell its products. The fourth concept is the selling concept. This means that businesses will be successful if they sell aggressively and promote their products strongly. This concept is echoed in the strategy of Avon. It uses aggressive personal selling and innovative promotion to increase its sales (a). The fifth concept is societal marketing concept. According to this concept, the marketer addresses the needs and wants of a target consumer market and delivers the products more efficiently. Avon continuously identifies the needs of its customers and develops products to suit their needs. This is one reason why the catalogue of Avon has become very large.

    Step 2
    Avon is a globalized company. It has operations in 66 countries and territories. Three quarters of its sales are outside its North American division. It is dependent on foreign operations for its revenues becasue the US market is too crowded. The rivalry within the industry is very intense (b). In addition, Avon has depended on house to house sales women for ...

    Solution Summary

    This solution explains the case study of Avon. The sources used are also included in the solution.