AVON Case International Business Avon Calls Term Paper

Pages: 2 (560 words)  ·  Bibliography Sources: 5  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business

AVON Case International Business

Avon Calls on Foreign Markets Case Study

Avon's challenges to move into international markets more effectively is attributable to their lack of consistency of their global operations frameworks to the global initiatives and strategies they are attempting to attain. Beginning with the lack of congruency between their sales teams domestically and the needs of the international sales team and progressing into the variation in product requirements globally, Avon has over time completely re-architected their company to overcome these shortcomings (Hill, Still,1990). The case study Avon Calls on Foreign Markets is analyzed within this paper.

Avon is highly dependent on its foreign operations because they comprise the majority of investment in new product development. The company has worked to create a product lines that align to specific market requirements and as a result have proliferated product lines globally (Grammenou, 2009). Given this significant investment in new product development, the company has to pursue growth globally to ensure a positive Return on Investment (ROI) on their R&D and product-related costs.

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The socioeconomic and demographic changes globally have led to much fewer stay-at-home moms who are often recruited to be Avon ladies. The challenge is to create marketing strategies supported by exciting, innovative products that interest younger women. While the global recession of 2009 did slow sales, the company found that selling the rejuvenating value of its cremes and lotions would do much to further the brand and sales to Baby Boomer-age women globally (Tarquinio, 2004). This had a counterbalancing effect on the recession's effects on the business. The company also pursued a "green" or sustainability effort to further strengthen its brand as well (Prior, 2010).

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