Insight on Avon’s Opportunities and Challenges in Global Scenario

Insight on Avon’s Opportunities and Challenges in Global Scenario

Introduction

Current article is based on the case study “Avon Calls on Foreign Markets”. Paper attempts to capture Avon’s strategic interests, opportunities and challenges that lie ahead of them. This article tries to explore Avon’s core competencies, target markets, existing challenges, strategic interest and opportunities in overseas.

Avon’s Different Marketing Orientations and its Impact on Global Operations

Production orientations: Avon has main R&D in USA, which caters most of the new product development needs, it also have local R&D which has developed products indented for local market needs, e.g. Avon’s Brazilian R&D developed cream having moisturizer, sunscreen and insect repellant to meet the Brazilian market’s demands (Daniels, et all, 2009). Avon has successfully applied learning’s from one R&D to its global products, as demonstrated in implementing new emulsion technologies developed by Japan’s R&D on Avon’s global lotion products (Daniels, et all, 2009). It has successfully partnered with many universities around the world, especially for developing products for difficult markets. All these efforts have created efficient and consistent products across the world and have successfully met the local market demands as well (Daniels, et all, 2009). Also, most of the Avon’s brands have common ingredients and uniform packaging resulting in higher production efficiencies and help foster global brand image (Daniels, et all, 2009).

Sales orientations: Avon follows direct-selling distribution by independent representatives as primary mode of its sales (Daniels, et all, 2009). It has successfully transferred its primary mode of sales to its international operations. Through standardized brands like Anew, Rare Gold, be Coming, and Far Away fragrances, it creates global quality image while saving costs by using common ingredients and packaging materials (Daniels, et all, 2009). International...