Avon S Cooperate Strategy

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AVON CORPERATE STRATEGY Q1. Your reading assignment for this unit describes different market orientations. Discuss the applicability of each to Avon’s global operations. Avon is one of the world’s oldest and largest manufacturers and marketer of beauty and related products. Currently Avon’s headquarters is in the United States of America, but three-quarters of its sales activities are outside North America. Avon seems to selling everywhere Their first strategy is to channel their effort to less competitive markets hence not giving more emphasis to their growth in the US market. There is the need to understand how Avon operates its distribution system to be able to appreciate why they perform better in the external market. They depend on direct contact sales contracted by independent sales persons mainly women working part time by selling to household through demonstration and giving advice. The above strategy though does not work well in the US; It works wonderfully in other areas such as Brazil, Venezuela etc. Other strategies such as developing product through Universities to suit local demands are very successful marketing techniques. Though Avon encourages customization, global branding ensures the product carries international standards. Other areas such as combining their names with local companies acquired, getting each individual company build their own price models, modernizing their sales slogans, etc are applicable to their global marketing strategy. However. Some of these strategies may posse as a challenge instead of an enabler and Avon must learn to review and customise this to suit global competition. Q2. Why is Avon so much dependent on its foreign operations than that on its home (US) operations? Avon has forecast slow growth of its activities in the US market as extracted from their annual report. Avon distribution strategy has

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