Avon Calls on Foreign Markets Case Study Example | Topics and Well Written Essays - 1000 words

Avon Calls on Foreign Markets - Case Study Example This strategy guarantees increased sales because it captures the local customer needs. Given that the operation of the company is spread to different regions, this strategy captures the needs of people with different skin sensitivity to beauty products.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Additionally, another marketing orientation is the customer. Avon’s approaches in marketing are that it targets women. It takes into contemplation the age group of cosmetics users and the places where the women population propagates more rapidly. This strategy employs independent sales persons or Avon representatives, who places sales orders with Avon and deliver the same to customers. Another orientation employed by Avon is social marketing orientation that entails; a breast cancer crusade that creates a global awareness on breast cancer and community outreach and education. This strategy is core, because it targets its leading customers: the women.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   A horde of re asons made Avon concentrate on more on the foreign operations than the U.S market. First, it was due to a forecast of a slow growth rate in the U.S market given that most of the market had been permeated already, and there remained no virgin market for its products. Therefore, any growth or increased sales would entail Avon competing to grab its competitor’s market share and given the nature of competition prevalent in the U.S market, Avon chose to direct its energy on less competitive arenas.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Secondly, Avon chose to redirect its energies away from the U.S market due to the changing nature and dynamism.... A horde of reasons made Avon concentrate on more on the foreign operations than the U.S market. First, it was due to a forecast of a slow growth rate in the U.S market given that most of the market had been permeated already, and there remained no virgin market for its products. Therefore, any growth or increased sales would entail Avon competing to grab its competitor’s market share and given the nature of competition prevalent in the U.S market, Avon chose to direct its energy on less competitive arenas. Secondly, Avon chose to redirect its energies away from the U.S market due to the changing nature and dynamism of its main market which affected its distribution strategies. Avon has been built around direct marketing whereby the Avon ladies sell directly to households and giving beauty advice. Therefore, direct sales were the backbone of the company for a long time. However, it the 20th century, many U.S women were making forays into the workforce. This had twin effect in t hat access to the women in their homes was hampered. Secondly, the number of women seeking part time employment with Avon reduced. On the other hand, there existed untapped markets elsewhere, for example, in inaccessible and remote part of Brazil and Philippines. A global recession like the one that happened in 2008 is not likely to curtail Avon activities materially. Indeed, it increases the number of people willing to work part time and independently, on which Avon marketing strategy is built. To add, since Avon has diversified its market to capture the foreign market is not likely to affect all the markets negatively at once. In fact, when things were gloomy in the United States, the foreign markets looked bright.