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Avon Case Study

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  • March 2013
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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 take on the strategy that would most benefit the company and building it to become better and meet high expectations. 2.What options did Avon have in responding in China’s ban on direct selling? Avon decided to target certain women in different age groups which ranged from teens to the over 40’s, in two different market segments. Avon then created The Avon Skin Care line. This line was designed to be simple and appeal to customers who preferred a less involved skin care regime. It was meant to target the lower income households and still holding quality within the product. Avon’s goal was to beat out all the competitors and hope that the customers that were with them move on to its higher scale products. By Avon having the high-end products and the low-end products, which resulted in the company being able to reach out to all the customers in different financial situations. The company has 19 plants that manufactures and develop the products and packaging. Also the company has independent experts and research staff that evaluate potential new products. Then later have the company employees use the product. 3.What effects will the use of traditional retailing in China have on Avon’s overall marketing strategy? The traditional...