Avon Calls on Foreign Markets Essay

1117 Words Jul 23rd, 2011 5 Pages
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
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Even though Mary Kay and others competitors have managed to emulate the firm’s strategic moves without much difficulty, Avon still possesses one advantage that cannot be easily duplicated: brand loyalty (Daniels et al., 2011).
Distribution
Direct selling reduces labor, marketing, and maintenance costs. These savings are passed down to Avon consumers as low prices. Avon representatives create special bonds and relationships with patrons, another key advantage retail establishments usually do not have. However, one drawback of this method is that people cannot buy items off the shelf in a timely manner like in a department store. Customers tend to return more items purchased from direct sellers because of order mix-ups or dissatisfaction with the product (Watrous, 2010).
Choosing New Suppliers & Manufacturing When evaluating and selecting new potential suppliers, one chief concern would be the firms’ financial ability to assure sufficient inventory as well as to support a long-term producer-distributor relationship. Other key concerns include if the firms’ other business commitments would interfere with Avon’s requirements, if competitive or complementary goods are supplied, and whether the personnel, facilities, and equipment are equipped for distribution. Gauging the firms’ potential life span as distributors and good connections with customers, assessing the histories and

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