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Essay / Market Entry Strategy: Avon - 906
Market Entry StrategyBusiness and Promotional AdaptationAvon's world is divided into four geographic divisions: United States, Europe, Pacific and Americas. In most international markets, the primary mode of operation of each of these divisions is direct ownership by Avon of the foreign subsidiary. Joint ventures with foreign companies are used when the culture, beliefs, personality of the country and ways of working are very little known to Avon management. It was decided to use a joint venture approach in Norway, while subsidiaries would be used in Switzerland and Luxembourg. For Norway it is best to use a joint venture. This is obvious because Avon knows this territory very little, as it has little presence in Scandinavia. The only country he has ever set foot in is Finland. Avon does not have a presence in Sweden, Denmark or Norway, although the latter two were candidates for market development. A slight economic slowdown in Norway is pushing consumers to look for cheaper, or simply more cost-effective, products as well as ready-to-use products. Norwegians also prefer domestic products, which supports the idea of a joint venture, which will fully adapt the products and promotion to their taste. In Switzerland, it is preferable to resort to a subsidiary commercial adaptation. This country has two major hubs, Geneva and Zurich, so it is like Switzerland to be innovative with so many goods and travelers entering and leaving. Switzerland doesn't have much influence over most European countries, as it is not part of the European Union, but is surrounded by France, Germany and Italy: all of which host Avon. Most Swiss citizens speak German, but the influence is primarily linguistic. Switzerland's main influences are Alpine: ...... middle of paper ...... international brand and attract new countries to join. The “fun” side of Avon uses celebrities, stage shows, raffles and giveaways. By using but modifying these tactics, Avon could increase brand awareness and drive sales in new markets. The “fun” side also has another face, the “serious concern” side which includes cause marketing. In its serious endeavors, Avon strives to represent the cause, while keeping the vibe light, positive and energizing. Conclusion: Avon marketing strategies need to be tailored differently to each developing market. By having a brand personality that is both exciting and sophisticated, Avon can offer glamor and charm while staying on top of trends. This creates a global appeal for the international brand. With just a touch of sincerity in cause marketing, Avon can attract local markets and enter new territories..