Essay about Avon Calls on Foreign Markets

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Avon Calls on Foreign Markets
Scholarly Activity 3 – Unit VII
Kayla J. Jackson
Columbia Southern University

Marketing Orientations Avon’s entrance into Canada, its first foreign market, was based on a sales orientated marketing scheme and had little to do with product orientation. When the company developed “skin-lightening creams in Asia and long-lasting citrus fragrances in Mediterranean countries,” it exemplified a customer orientation, tailoring its products to meet specific consumer tastes (Daniels, Radebaugh, & Sullivan, 2011, p. 622). In China, the company changed its distribution channels from direct selling to making “products available in virtually every corner of the country” as part of a strategic marketing orientation
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622). The company must also examine if women are accessible at home to meet with salespeople. Additionally, the rising middle class sector in developing countries could help broaden Avon’s client base (Daniels et al., 2011).
Global Recession A country’s “economic environment shapes its foreign” investment appeal (Daniels et al., 2011, p. 173). For instance, a global recession could affect the “ability of Avon’s broad-based geographic portfolio to withstand a downturn in a particular region” (“Avon,” 2008, para. 9). This is because customers view many of Avon products as nonessential luxuries and will not purchase such items during financial hardships. As a result, worldwide profit decreases, which could halt international growth and impede new product development. In situations like these, the firm must reevaluate cost structures and make significant changes to its organizational and competitive strategies in order to maintain gross profit margins (Daniels et al., 2011).
Competitive Advantages A corporation’s “competitive strategy influences how and where it can best operate” (Daniels et al., 2011, p. 28). Not only is Avon one of the most powerful and recognizable brands in the world, it also has attractive earnings opportunities for sales representatives and leading technological innovations (“Why,” 2011). The new “Hello Tomorrow” ad campaign has a new brand-marketing concept and uses celebrities to attract consumers. Avon has been very successful
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