Essay about Avon Case Study

865 Words Mar 11th, 2013 4 Pages
Avon Case Study
BA 499- Sec 01 1. In what way does Avon follow a global strategy? Does this experience indicate that it should pursue a different strategy? Avon way in following a global strategy was when they announced the ban on all direct selling and had to switch to the traditional retailing. Meaning that all the Avon sales associates that sold their products from out the comfort of their home would now have to sell from a retail store. Being that Avon is a foreign business in China, the regulatory and bureaucratic uncertainty continued to be a major problem. This made the company reconsider its strategic approach to the global market. This experience does indicate that it should pursue a different strategy but Avon decides to
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So in 1996, Avon spent $30 million on advertising campaign, which focused on the Avon Lady. This is the core of the company’s success which created a new product image. That image was now projected as having a contemporary product with a consistent, high quality image in all markets. So having a high quality image requires the company to produce high quality products. Avon advertised on television for the first time in 20 years, which opened up the opportunity to be able to direct sell again. This time, it was only on the internet in April of 1977. The website now attracts 300,000 visitors per month creating revenue.
4. What actions and organizational changes are required by Avon’s new marketing strategy in China? Avon’s main focus is to have more overseas operations for the growth purposes. The company invested millions to build manufacturing plants in the Philippines and China. Avon is the perfect example of a company that thinks globally but acts locally. This means that the company main goal is to get everyone using their product. But the product variations which will increase the cost are limited to what is demanded by the various markets served. The company has developed product lines that has went global and can be sold in multiple markets. Being that there are different national requirements, this would limit the way that it is being packaged and how they would actually market it to the customers which limit the company to an extent.
5. What

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