Avon is one of the best known and most successful beauty companies, which has more than 120 years of history of work on the American and international markets. Since in 1886 the company’s founder, David McConnell, began selling its first product – toiletries Little Dot Perfume Set, AVON has come a long way to success. Today it is the world’s largest company, which became so popular by the organization and development of direct sales. The oldest company Avon has done much to occupy a worthy position among women products for beautiful, healthy appearance, but also became the most successful company in direct sales. (Klepacki, 2005)
Avon Company in its sense has made a small revolution in women’s minds, when making cosmetics not only an opportunity for beauty and personal care, but a way of having personal earnings. The method of direct sales, which “Avon”ť company uses to sell its products, allows anyone to start their own business and gain financial independence. It is the method of direct sales is considered the main key to success of the company, and its main competitive advantage. For all its history the company had periods of ups and downs, but nevertheless was able to stay on the market of America, and since the late 20th century, the company is actively present in international markets. (Klepacki, 2005)
Nowadays Avon has its own sales operations in 66 countries, and its products is distributed to another 44. Altogether, there are about 5.8 million independent representatives selling Avon products in more than one hundred countries around the world. (www.avoncompany.com)
In this paper it is necessary to study how and why Avon decided to enter global market, to consider its global strategy and analyze its global activities, including global promotion, distribution, etc.
1. Your reading assignment for this unit describes different marketing orientations. Discuss the applicability of each to Avon’s global operations.
Next it is necessary to speak about the strategy of the company on international markets. It is known that when starting international operations, the company faces the need to solve the dilemma: to adapt its market, and in particular marketing strategy to the specifics of other markets and consumers (multinational strategy, or a strategy of adaptation) or to use standard approaches in overseas expansion and not to focus on the differences in the requirements and demands of target groups in individual states (the strategy of globalization, standardization). The truth lies in the flexible use of instruments of an international marketing strategy according to the conditions of the market environment and opportunities of the company.
Avon company leaders and managers have determined the ratio and degree of standardization, and the degree of adaptation of its marketing mix measures of impact the competitive position of the company, and its promotion in foreign markets, depending on the requirements and characteristics of the particular market. Avon in its international activities primarily assesses the potential contribution of new market in the formation of globally integrated benefits. The company is currently seeking a universal target segment in all markets and pursue a strategy of standardization and globalization, a common marketing approach to promoting a product to the consumer.
Thus, we can say that the company adheres to the intermediate option between the strategy of standardization and adaptation strategies. On the one hand, Avon prefers to follow global trends by standardizing components of the marketing mix in international activities. Through standardized branding, Avon creates a uniform global quality image while saving costs by using uniform ingredients and packaging. (Sullivan et al, 2007)
On the other hand, it remains committed to local tastes, adapting to them its international marketing activities. It seeks to fit the wants of local consumers and to give consumers the products they want. For example, Avon adapts products names to the local markets: it sells skin- care products called Rosa Mosqueta (in Spanish), Revival (in English), and Renaissage (in French) in Chile, Argentina, and Japan, respectively. (Sullivan et al, 2007)
The high degree of standardization is used in such areas of Avon marketing activity as packaging, some aspects of advertising and product promotion. These elements of marketing Avon does not always adapt to the conditions of each individual market. At the same time, standardization of products does not mean their complete identity, while it is often the small differences are crucial.
As for sales promotion and advertising, it is specific at each national market. Avon is also using celebrities to help sell its products: Salma Hayek is the face of Avon, Jennifer Hudson is the spokesperson for Imari fragrance, and in other local markets national TV or sorts stars are involved in the promotion. (Sullivan et al, 2007)