Avon case study international marketing essay

Shakespeare's Stratford Monument Shortly after Shakespeare's death, a monument was erected to his memory in his home town of Stratford.

Avon case study international marketing essay

Get Full Essay Get access to this section to get all help you need with your essay and educational issues. The company was named Avon inas a tribute to his favorite writer, William Shakespeare. Avon established itself as a household name in the Fifties and Sixties with a worldwide network of door-to-door sales-ladies.

Since its beginnings, the firm has evolved enormously due to the influence of various microenvironmental actors and macroenvironmental forces. Furthermore, the company still has to improve specific aspects of its strategy if it wants to maintain its position on the American market and in its international activities.

To do so, the firm had to take into consideration all the actors and forces of the American market. The actors in the microenvironment For Avon, the microenvironment is somewhat different than for a traditional firm. Indeed, since it sells its products through direct selling, there are no marketing intermediaries.

This aspect gives the firm more freedom in putting its strategy in action. However, like all other companies, Avon must take into consideration the 4 other actors of their microenvironment.

For more than a century, the Avon company has been known for the direct-selling approach it uses to sell its cosmetics and toiletry products.

Avon started out as the California Perfume Company, when the company was founded in by David McConnell Until the arrival of the internet and changes in customer needs, Avon never used marketing intermediaries.

These factors led Avon to rethink its strategy and consider selling its products through retail outlets. The only solution to this risk is to have very reactive suppliers that are flexible in their distribution capacities. Consequently, Avon needs to be very close to its suppliers and maintain a good relationship with them.

Also, instead of distributing in department stores, Avon has increased the number of its independent sales representatives because women appreciate having advice on beauty products. In fact, they have sometimes forced the firm to make some changes in its approach of the market. Two players have been influenced by these changes in demography: Women no longer wanted to stay home; they wanted to work outside of their residence.

Consequently, when Avon ladies came to ring the doorbell, nobody answered. For a direct sales firm, this was a great problem, so the company had to react in consequence. Through out the century, these aspects of the American population have evolved dramatically.

Indeed, the American population is a consumer population, which does not hesitate to get into debt in order to fulfill its consumerist desires. Consequently, this leaves more room for companies like Avon to promote and sell their products to men and women all over the country. As Ernest Engel has proven, as income augments, the percentage of income spent of food diminishes and shifts to consumption categories such as entertainment, clothing, etc.

For a company that sells cosmetics and toiletry such as Avon, this evolution has been truly beneficial. Indeed, these crises had dramatic effects on the global economy and the United States were not an exception to the rule. As we know, Republicans have a tendency to promote business and try to give firms the possibility to develop quickly.

It can be guessed that this one of the reasons why Avon developed to the extent of becoming one of the largest direct selling firms in the world.

Indeed, the internet has revived direct selling and changed the structure of the market.

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Due to disintermediation, Avon saw the number its competitors increase drastically. Furthermore, companies who opted for a direct sales force became less competitive because they had to pay their salaries whereas companies who only used the internet as a means of distribution saw their fixed costs reduce considerably.

Avon case study international marketing essay

Avon needs to consider finding a way to cut its fixed costs if it wants to remain competitive in a market where the internet penetration rate is relatively high. With the experience the company has in the country, it is unlikely that Avon will make cultural faux pas in its home market.

The actors in the microenvironment — The company: The firm has the advantage of being a well established company throughout the United States.

It has chosen direct selling as its means of distribution, however, in certain countries such as China, this strategy may be confronted with some problems. Indeed, the Chinese government banned direct selling in the country. When the Chinese government allowed the firm to sell its products on the Chinese market again, Avon had to become a wholesaler instead of a direct seller.

As a result, the firm had to change its structure in order to endorse its new role. Indeed, Avon no longer had to manage a team of sales representatives that sold products directly to the consumer, but a team that had to seduce retailers as well as customers.Introduction Many books and articles have been written arguing that someone other than William Shakespeare, the glover's son from Stratford-upon-Avon, wrote the .

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Avon case study international marketing essay

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