Avon Calls on Foreign Markets Essay Example
Avon Calls on Foreign Markets
Scholarly Activity 3 – Unit VII
Kayla J. Jackson
Columbia Southern University
Marketing Orientations Avon’s entrance into Canada, its first foreign market, was based on a sales orientated marketing scheme and had little to do with product orientation. When the company developed “skin-lightening creams in Asia and long-lasting citrus fragrances in Mediterranean countries,” it exemplified a customer orientation, tailoring its products to meet specific consumer tastes (Daniels, Radebaugh, & Sullivan, 2011, p. 622). In China, the company changed its distribution channels from direct selling to making “products available in virtually every corner of the country” as part of a strategic marketing orientation (Daniels et al., 2011, p. 624). Lastly, Avon’s social marketing orientation reflects its reputation as a company that supports women’s causes, particularly in the philanthropic fight against breast cancer and domestic violence (Daniels et al., 2011).
Foreign Operations In the U.S., Avon predicted very slow sales growth because there was no longer an available market for beauty products to tap into and competition was steadily rising. The company’s direct selling distribution system failed because “U.S. women were entering the workforce full time, which made them less receptive to door-to-door salespersons” (Daniels et al., 2011, p. 622). Avon also realized that “less than 5% of the world’s population lives in the U.S.,” making the outlook for foreign expansion very promising (Daniels et al., 2011, p. 621).
Socioeconomic & Demographic Changes Socioeconomic, demographic, and cultural factors “influence a company’s decisions on where and how to do business internationally” (Daniels et al., 2011, p. 134). For example, Avon must monitor the growing number of women entering the U.S. workforce and each global market’s pool of sales representatives and consumers. The “global recession has since increased the availability of people
Scholarly Activity 3 – Unit VII
Kayla J. Jackson
Columbia Southern University
Marketing Orientations Avon’s entrance into Canada, its first foreign market, was based on a sales orientated marketing scheme and had little to do with product orientation. When the company developed “skin-lightening creams in Asia and long-lasting citrus fragrances in Mediterranean countries,” it exemplified a customer orientation, tailoring its products to meet specific consumer tastes (Daniels, Radebaugh, & Sullivan, 2011, p. 622). In China, the company changed its distribution channels from direct selling to making “products available in virtually every corner of the country” as part of a strategic marketing orientation (Daniels et al., 2011, p. 624). Lastly, Avon’s social marketing orientation reflects its reputation as a company that supports women’s causes, particularly in the philanthropic fight against breast cancer and domestic violence (Daniels et al., 2011).
Foreign Operations In the U.S., Avon predicted very slow sales growth because there was no longer an available market for beauty products to tap into and competition was steadily rising. The company’s direct selling distribution system failed because “U.S. women were entering the workforce full time, which made them less receptive to door-to-door salespersons” (Daniels et al., 2011, p. 622). Avon also realized that “less than 5% of the world’s population lives in the U.S.,” making the outlook for foreign expansion very promising (Daniels et al., 2011, p. 621).
Socioeconomic & Demographic Changes Socioeconomic, demographic, and cultural factors “influence a company’s decisions on where and how to do business internationally” (Daniels et al., 2011, p. 134). For example, Avon must monitor the growing number of women entering the U.S. workforce and each global market’s pool of sales representatives and consumers. The “global recession has since increased the availability of people