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This strategy of investing face-time has continued to scale extremely well in the U.S., yet has faced many challenges in other nations that value data, hard numbers and strong methodologies to validate the claims of products. One nations' buyers of cosmetics in particular, the Japanese, are more focused on the specifics of the how a product is produced and want to know in great detail what the ingredients are in specific measures. The level of data analysis presented by cosmetics providers in Japan is often taken as a measure of the elegancy and exclusivity of a given cosmetic product over another (Grammenou, 2009). Due to these wide variations in how cosmetics are sold, Avon continues to excel in westernized cultures with the U.S. being their flagship market. In Asian cultures were the depth and sophistication of data is an indicator of exclusory and elegance, Avon continues to struggle in other nations and cultures, a point inferred from the case analysis.
Assessing Avon's Supply Chain And Its Implications On Performance
The highly fragmented and distributed nature of the new product development process within Avon is putting exceptional stress on the supply chains of the company as well. These are hidden costs however, as the time and resources lost in negotiating with suppliers of comparable ingredients, packaging and services is hidden from one subsidiary to the next. Further complicating the performance of the Avon supply chain and contributing to its increased costs is the fact that each product is in a completely different...
This staggered performance of the product lifecycles are different across each culture and nation, which adds exponentially higher levels of stress and costs on their supply chains. Adding even greater urgency to fixing this strategic issue with their supply chains tis the rapid change occurring in their core Gen X, Y and Baby Boomers markets (Prior, 2010). The Avon supply chains need to be transformed into a competitive advantage by being more responsive to Gen X, Y and Bay Boomer customers (Tozzi, 2010).
References
Shoshanah Cohen, & Joseph Roussel. (2004, November). Avon Gets Its (Supply Chain) Makeover. Fortune, 150(9).
Grammenou, E.. (2009, April). WHAT'S NEXT? FOR COSMECEUTICALS AND NUTRICOSMETICS. Global Cosmetic Industry, 177(4), 38.
Hill, John S., & Still, Richard R. (1990). Organizing the Overseas Sales Force: How Multinationals Do It. The Journal of Personal Selling & Sales Management, 10(2), 57.
Molly Prior. (2010, March). Avon Launches Environmental Effort. WWD, 199(57), 5.
Avon Calls Foreign Markets." Question: Why Avon dependent foreign operations home (U.S.) operations? Please provide a couple reasons relate case. Avon Calls on Foreign Markets Avon is one of the oldest and largest cosmetics manufacturing and retailing organization. The company has penetrated the industry through a specific model of direct sales through Avon consultants and representatives. The Avon products are as such not available in traditional stores and can only be
AVON Calls on Foreign Markets Avon believed that having regionalized new product development centers, supply chain operations, marketing and sales divisions would make them more competitive in foreign markets. Ironically the exact opposite happened, as the case illustrates. Avon's performance was drastically reduced and the duplication of effort crippled the organization. Unfortunately the highly decentralized, market-driven organizational structure that Avon had such high expectations for failure to deliver the results needed
The company's founders and senior managers however feared this would make the company less agile and able to respond to market requirements (Grammenou, 2009). Demographic Analysis There have been many socioeconomic and demographic changes that have affected Avon's business model in the last two decades. The greatest socioeconomic force affecting them today is the need for many women to work full-time jobs to contribute to their household's income. This has drastically
Avon has both word-of-mouth and trust on its side as a provider of cosmetics, beauty and health aids. Their distribution strategy is one of the aspects that make their unique value proposition all the more effective as well, as it reinforces trust with face-time between their representatives and customers. The Avon model and competitive strength is all predicated on buying from someone you know and trust. Supply Chain Implications for
AVON -- Foreign Markets The marketing strategies that the reading assignment offers include Avon's style of selling -- which is direct sales door-to-door -- and the women who sell door-to-door actually go back to the home where they sold and deliver the products. Another strategy is to sell using the Internet (personal web pages), and selling to friends, colleagues and family (Chapter 16, p. 622). Also, using universities in China, Japan,
International Business The international company to be featured in this paper is Avon International. Avon is a cosmetics company located in about seventy-five countries in five geographical locations: Latin America, North America, Central, Eastern and Western Europe, Middle East and Africa, and Asia Pacific. In addition to cosmetics (fragrances, skin care, personal care and color cosmetics), Avon also produces fashion items (fashion jewelry, watches, apparel, footwear, accessories and children's products) and