Avon Scholarly Activity 3

Avon Scholarly Activity 3

Avon was created in 1886 and is still one of the world’s oldest and largest manufacturers and marketers of beauty and related products. Avon is a Top 100 global brand, and has $10 billion in annual revenue worldwide: and is one of America’s most respected corporations for over fifty years. (Avon, 2013)I can still remember as a little boy when the Avon lady would visit once a month to get our family’s order.

Avon strategies are to focus the company’s main effort in less competitive markets; therefore, not giving any emphasis in growing in the US markets. It is important that you comprehend how Avon operates its supply chain in order to understand why they perform better in worldwide markets rather in US markets. Avon still relies on the Avon lady conducting direct contact sales contracted by independent sales women. These women work part time by selling to households, providing demonstrations and giving direct advice face-to-face. The aforementioned strategy has not worked in the US for many years but it works perfectly in South America in such countries as Brazil, Peru and Venezuela. (Daniel, 2011) Avon’s other strategies are developing new products and transforming old products to new ones. Global branding that carry Avon’s international standard into the future allow it to meet local demands is a key aspect of Avon’s strategy of moving forward.

Second, you need to understand Avon’s supply chain system. Avon has always been contingent on direct selling by Avon ladies who sell door-to-door, demonstrating the products and offering advice on them. These representatives place their sales orders with Avon and then deliver the orders back to their customers. For the record, Avon’s direct sales have been the cornerstone of their accomplishments. Direct door-to-door selling gives Avon a cost-savings benefit by allowing Avon to keep a small number of staff, thus keeping its marketing budget low and letting Avon ladies do much of the marketing. Additionally, this prevents Avon from having to pay top dollar for space on stores shelves. These lower prices have enabled Avon’s upkeep