II. Avon's Market Orientation Approach
Avon's international marketing strategies made the business successful stepping into the global market segments, because they been able the different marketing orientation strategies succesfully in each country.
Even though Avon's main technique for product orientation was successful in the U. S. (Avon's headquarter), company started developing high quality in Canada. The primary reason for changing company's strategy was because of the passive sales in home country. They thought they may be more efficient and create global image through standardization. This helped the quality image while keeping cost by using standard ingredients and product packaging.
Decision to enter international procedure from Canada was made to help solve their passive promoting sales and the drop of competitive benefit that they had over U. S. market. Advertising domestically through their sales orientation strategy was very successful in Canada, because customers' customs, traditions and characteristics were like the U. S. Furthermore, Avon was able to be notified by many customers in Canada without making an investment heavily on campaign because of continental connection between two countries. The product information was spilled over from U. S. to Canada. With the successful international procedure in their second country, Avon now works a new advertising campaign abroad every a month with different special deals to help solve their fixed cost inflation in countries such as Colombia and Venezuela.
Avon only got a strong R&D center in U. S. but started to build local R&D centers globally to analyze and discover customers' needs. To gratify the different cultural demands worldwide, the company signed exclusive contracts with several colleges worldwide. It helped Avon to build up and launch customer based product launches and their campaign of "Hello, Tomorrow".
Avon combined development, sales and customer orientations to be able to adapt the business's product domestically. Additionally, having marketing variation of their product brand name and launching services concentrating on specific country helped stabilize their sales profit and global brand image. Both methods solved the problems that occurred from earlier strategies they have centered on using before 20th hundred years.
To have a solid brand image and the interpersonal marketing effort Avon mainly focused ladies in worldwide. "Hellow Tomorrow" was their first global marketing campaign to focus on their specific product sponsored by famous stars and sports actors. The business conducted the same plan for each and every country ("Hellogreen, Tomorrow" in Korea, Canada, U. S. , eg. ). Campaigning to support women and their needs helped establish the thought of Avon as a must have item, especially in countries where they still have issues over women's privileges. Avon became the most significant corporate and business donor to breast malignancy research. Canada would be the most successful example for Avon's engagement on breast cancers research and donation. Currently, Avon became a member of with local organization to help prevent women from violence also to treat the victimized women
III. Avon's Syndication Strategys
Since Avon's foundation in 1886, it's been a leading cosmetics company in the United States. Specifically, one of the key factors to success was its own circulation strategy which is selling products by salespersons, so called "Avon Ladies". There are over 5. 8 million Avon associates internationally and they're still increasing in a few countries such as Brazil or the Philippines. Even when direct advertising has been the backbone of Avon's success up to now, there are several cons, as well as advantages, in sticking to that distributional strategy atlanta divorce attorneys country at this moment.
Advantage of Direct Selling
The most important power of the immediate advertising would be cost-saving advantages. When a company sells products by sales reps, it doesn't need to pay a lot of cost to store and maintain the inventory. Also, immediate offering can significantly reduce marketing cost by delegating almost all of the advertising to Avon women. These cost-saving advantages may lead Avon to truly have a strong competitive advantage than opponents.
The second benefit of direct offering is a word-of-mouth marketing result. A lot of researches show that face-to-face and word-of-mouth communication is often a essential aspect when customers make decisions: they tend to consider someone they know as a credible source of product information. Therefore, word-of-mouth customers befriended with Avon girls tend to show commitment to brands or products.
Disadvantage of Direct Selling
The most obvious drawback of immediate selling is that customers can't purchase products whenever, wherever they need since only sales representatives can supply products. People may just go to retail establishment to acquire products, thus, Avon can lose customers to competitors which have retail distribution channel.
Secondly, as more women enter workforce, more homes are getting unfilled which means that opportunities to do door-to-door sales would be lowered. If customers (ladies in this circumstance) are not in the house as they used to be, sales associates might become worthless. Besides, some of consumers may think that knocking the door to sell product is kind of personal privacy invasion. This is more salient characteristics of women in Europe than those in USA. Under this situation, Avon might not effectively take advantages of direct selling.
III. Competitive Advantages
Avon possessed competitive advantages on the market in terms of its brand and 4P. Firstly, Avon has place global image by emphasizing global brand. Avon built strong brand image by providing customers with its consistent image internationally. Though sometimes different terms works as an obstacle, putting brand in British and French provided customers superior image of the brand. Global branding also helped Avon to reduce cost by using same materials and presentation.
Avon had managed its strategies effectively and gained advantages among other opponents. They adapted their products to each local market by allowing each country to develop their own products. This empowered the company to adopt into accounts all the factors they needed such as legal, ethnic and economic issues. In terms of charges, Avon used penetration strategy. Avon's relatively cheap price drew more customer attention and even helped go through recession period. Regarding consumer behaviour toward source of information, Avon mainly used thrust strategy. Through direct deal method, they could reduce costs on occupation and advertising. However, Avon did not neglect yank strategy and publicized its brand image and product when needed.
The strategies mentioned previously could be duplicated by other opponents with ease. However, it does not mean that followers would also get same success that Avon achieved. The key reason why Avon's strategy functioned was based on analysis of every market. You can not say successful strategies in specific market would also be successful in the areas. Legalities might arouse enjoy it do in China or customer choice from each region toward advertising might be different which lead to various advertising. Specific time and market basically influences whether strategy would be successful. Evaluation of market and right use of strategy was the reason behind Avon's success regardless of competitors.
Avon has been effectively leading beauty product industry by various corporate and business strategies. First of all, it extended its brand and developed high-quality beauty products by trading significant amount of money in R&D centre. Also, one of the central competencies of Avon is its unique syndication strategy-direct providing by Avon Gals. Door-to-door sales were a great success and still generating a whole lot of revenue internationally, however, Avon has experienced obstacles to keep that strategy in a few of the countries such as U. S or European countries. Therefore, Avon should adopt different strategy by continent depending on situation. Currently, Avon is putting lots of efforts to improve women's privileges and aid women to achieve their potential through Avon Groundwork for Women. Avon can increase brand identification and improve its image by maintaining those activities for social causes, including "Hello there Green Tomorrow" plan. Since Avon is in an exceedingly competitive industry, it should not only maintain its center competency (immediate advertising) but also diversify its marketing techniques finding and catching up with rapid social changes worldwide.
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