AVON Calls on Foreign Markets Case Study

AVON Calls on Foreign Markets Case Study

Avon’s decision to create a highly distributed organization with regional and national new product development and supply chain operations was initially designed to increase time-to-market and speed of response to regional customers preferences. While that vision of decentralized efficiency and customer focus was a good one at the time, its actual performance is far below expectations and the duplication of effort is slowing down the entire corporation. The case shows how a highly decentralized marketing, new product development and merchandising organizational structure can become more of a liability than an asset however. The intent of this case analysis is to explain and recommend how Avon will be able to attain a higher level of efficiency and profits through more effective alignment of their research & development, new product development strategies, marketing, and ongoing supply chain operations to create a unified, global marketing strategy that will succeed.

Greater Accuracy of Marketing Strategy and Segment Definition Needed

Avon, like many consumer products companies, is dealing with the significant challenge of unifying how they are perceived and values across the many nations they operate on. The wide variations in cultural, national, and religious differences in how personal products are perceived and their needs communicated adds further to this challenge. Avon, during the time period of the case, is primarily focusing on Gen X and Baby Boomer women. The Baby Boomer segment is of particular interest as Avon’s research shows they have a need for appearing younger through the use of Avon products. It is ironic that in many other cultures, the Millennial and Gen Y women want cosmetics that make them look older and more mature. The reasoning is that Millennial and Gen Y women want to appear older so they can compete more effectively for higher-paying, more professional jobs. This is the first of many challenges that Avon faces in managing their new product development, supply chain and strategic sourcing, procurement and local marketing practices more effectively.

The beginning sections of the case provide insights into what happens within a global corporation when very high levels of decentralization cause fragmentation of the core functions of a new product development and marketing process. These functional areas were allowed to proliferate without a baseline of standards or governance to guide them. Without overarching governance and compliance, the core areas of new product development and supply chain strategies led to very high cost overruns due to the duplication of effort and wasted resources across the entire company. This massive duplication of effort also led to inconsistent messaging globally and a lack of consistency in cultural messaging and standards for localized marketing. The brand was atrophying based on the lack of governance and standards as a result. When regional product development, supply chain and marketing strategies begin to report negative Return On Investment (ROI) and cause confusion in global branding it’s time to re-evaluate the strength of a unified strategy (Cohen, Roussel, 2004). Despite these variations in regional strategies, Avon has excelled at unifying their global sales force to continually drive top-line revenue (Hill, Still, 1990).

Analysis of the Case

The deliberate decision to create a decentralized new product development and marketing organization initially appears to be a viable strategy for global brand Avon, who is contending with potentially conflicting market needs and preferences in their products (Grammenou, 2009). The capital investments made in new product development, strategic sourcing, supply chain management systems, and the customization of manufacturing all are aimed at being responsive to the widely different needs women have for cosmetics. In conjunction with these significant investments, Avon continued to build out a global multichannel management selling and service organization that did standardize on core processes and training (Grammenou, 2009). Avon encountered a quickening pace of change in product lifecycles, new product definitions and requirements, and a continual increasing of customer expectations that all varied significantly across all regions (Tozzi, 2010). Inevitably the comp[any became much more balkanized, with each country division defining its own product launch schedule, pricing and decisions of whether to participate in global marketing programs. The extreme balkanization of the Avon subsidiaries was fragmenting the brand and causing it to eventually lose its equity and power in the market (Grammenou, 2009). As is often the case with a highly balkanized organizational structure, new product introduction costs began to spiral out of control, as did supply chain, marketing and selling expenses (Cohen, Roussel, 2004). With no governance or auditing of the supply chain operations, the profitability of Avon was at stake (Tozzi, 2010).

Demographic Analysis

In many respects Avon had been fortunate to not encounter greater challenges earlier in the 20th century and in the early years of the 21st century. The massive amount of economic and socio-political turbulence globally during the 20th century alone had derailed many of the most successful women’s cosmetics and personal care companies (Grammenou, 2009). In the context of the case study, Avon faced the greatest challenge it has seen in a century, and that is staying relevant to women consumers with more options than ever for personal care products. This challenges’ boundaries were the Millennial women who were becoming disenchanted with the Avon brand, Baby Boomer and Gen Y women across multiple regions and nations that were relying on Avon products to meet or exceed their expectations for beauty and personal care products. Accentuating these challenges was the fact that more women than ever were entering the workforce, which left fewer of them to work in the Avon global selling organizations. Avon had long built a very strong distribution model that primarily relied on housewives that want to earn extra money by hosting parties in their homes and communities. In conjunction with many housewives working to help their families make ends meet, there was a marked increase in women who were earning college degrees and seeking higher paying jobs where they wouldn’t have to take part-time work to make ends meet. This also was a very significant shortcoming for Avon’s core strength, which is its sales force which in the past was comprised of housewives looking to earn extra cash. Avon had adopted the Web for e-commerce yet that had not been as successful as the company had hoped. These significant changes in demographics, socio-economic, and socio-political roles of women globally were having an immediate impact on the performance of subsidiaries, impacting every area of their operations from new product development to go-to-market strategies (Tarquinio, 2004). These massive shifts in socio-economic and socio-political values was also having a major effect on how Avon as a brand was perceived by the younger generation of women just beginning to use cosmetics. The top priority of these youngest consumers was the eco-friendly nature of Avon products including how their production and use impacted the global ecosystems (Prior, 2010). This segments’ specific focus was on how Avon products were sourced, produced and sold and if Fair Trade Practices were taken into account, and if suppliers were abiding by proper employment guides for ethical treatment of their workers (Grammenou, 2009). In short, this customer segment demanded a high level of Corporate Social Responsibility (CSR) and accountability from Avon as a supplier of their cosmetics. In many respects the demands of the Gen Y customer for increased accountability and CSR-based focus on how their products impacted the environment, in conjunction with the size of this market globally, led Avon to recentralize new product development, marketing and service (Tozzi, 2010).

As the Gen Y customer base was aging, the opportunity to gain them as customers was elapsing daily for Avon. The company had to move with urgency to capture this market segment with a centralized new product development, supply chain and marketing strategy. The hard reality for Avon was that their decentralized organizational structure, once so powerful, was losing focus and beginning to alienate the largest customer segment necessary for the company’s growth.

Assessing the Impact of the Global Recession

Trust, not price, is what has made Avon so successful over the decades of using a unique and highly differentiated distribution and selling systems. There is nothing more powerful than word-of-mouth for gaining the trust and loyalty of prospective customers (Villanueva, Yoo, Hanssens, 2008). This aspect of friends and neighbors being trusted advisors is center to the success of Avon over its initial decades of operations. As their sales force was comprised primarily of trusted advisors who could get the attention and focus of their social circles, Avon was able to still continue selling their products through the severe economic downturns between 2007 and 2010. As of January, 2012 when this paper was written, the recession continues to be problematic to Avon and their launch of new cosmetics globally. Avon is continually pursuing their proven success with the more expensive selling strategy of having their sales reps meet face-to-face with prospects and customers as of this writing. While direct selling is always more expensive than using distributors or dealers, and exponentially more expensive than online transactions, Avon still believes in pursuing the role of trusted advisor in cosmetics. 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 stage of its lifecycle across each nation or region globally. 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).


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.

J. Alex Tarquinio. (2004, September). Aging Gracefully at Avon;. Kiplinger’s Personal Finance, 58(9), 49.

Tozzi, J.. (2010, December). Borrowing from Avon and Dell to Sell Shirts. Business Week,1.

Amy Tsao. (2004, October). A Bit Less Blush at Avon. Business Week (Online),1.

Villanueva, J., Yoo, S., & Hanssens, D.M. (2008). The impact of marketing-induced vs. word-of-mouth customer acquisition on customer equity growth. JMR, Journal of Marketing Research, 45(1), 48.

Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY!!!

order custom essay paper

What Will You Get?

We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.

Premium Quality

Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.

Experienced Writers

Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.

On-Time Delivery

Your deadline is our threshold for success and we take it very seriously. We make sure you receive your papers before your predefined time.

24/7 Customer Support

Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.

Complete Confidentiality

Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.

Authentic Sources

We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.

Moneyback Guarantee

Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.

Order Tracking

You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.


Areas of Expertise

Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.

Areas of Expertise

Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.


Trusted Partner of 9650+ Students for Writing

From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.

Preferred Writer

Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.

Grammar Check Report

Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.

One Page Summary

You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.

Plagiarism Report

You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.

Free Features $66FREE

  • Most Qualified Writer $10FREE
  • Plagiarism Scan Report $10FREE
  • Unlimited Revisions $08FREE
  • Paper Formatting $05FREE
  • Cover Page $05FREE
  • Referencing & Bibliography $10FREE
  • Dedicated User Area $08FREE
  • 24/7 Order Tracking $05FREE
  • Periodic Email Alerts $05FREE

Our Services

Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.

  • On-time Delivery
  • 24/7 Order Tracking
  • Access to Authentic Sources
Academic Writing

We create perfect papers according to the guidelines.

Professional Editing

We seamlessly edit out errors from your papers.

Thorough Proofreading

We thoroughly read your final draft to identify errors.


Delegate Your Challenging Writing Tasks to Experienced Professionals

Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!

Check Out Our Sample Work

Dedication. Quality. Commitment. Punctuality

All samples
Article review
Thesis/Thesis chapter
Research paper
Article review
A Holistic Response to Crime Victimization
View this sample
Thesis/Thesis chapter
Post Covid-19 Economic Recovery
View this sample
Research paper
Final Case Analysis: Organizational Ethical Dilemmas
Undergrad. (yrs 3-4)
Business Studies
View this sample
Research paper
Communicable Disease
View this sample
Research paper
Mental health
View this sample

It May Not Be Much, but It’s Honest Work!

Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.


Happy Clients


Words Written This Week


Ongoing Orders


Customer Satisfaction Rate

Process as Fine as Brewed Coffee

We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.

See How We Helped 9000+ Students Achieve Success


We Analyze Your Problem and Offer Customized Writing

We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.

  • Clear elicitation of your requirements.
  • Customized writing as per your needs.

We Mirror Your Guidelines to Deliver Quality Services

We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.

  • Proactive analysis of your writing.
  • Active communication to understand requirements.

We Handle Your Writing Tasks to Ensure Excellent Grades

We promise you excellent grades and academic excellence that you always longed for. Our writers stay in touch with you via email.

  • Thorough research and analysis for every order.
  • Deliverance of reliable writing service to improve your grades.
Place an Order Start Chat Now

error: Content is protected !!
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code UNRIVALED