Avon's Market Campaigns Essay Example | Topics and Well Written Essays - 1000 words

Avon's Market Campaigns - Essay Example The strategy of going global was based on a primary fact that there will be more chances of profitability if you could access more customers. The basic reason of exporting is to increase the profitability of business either to explore new markets or to get rid of local heavy competition. Avon had both. The selling model developed by Avon that is in accordance with the nature of their products is not much suitable for the women in the United States. As a large number of women are engaged in full-time jobs, it will be difficult to access them through direct selling model.Avon has a specific sales model that is line with its business model and the nature of products it is selling. However, in order to make the business profitable, it is necessary to understand the socioeconomic and demographic trends of the country. In the United States, the availability of women is a major issue. Avon needs a part-time sales force to implement its sales model effectively with a low labor cost. The unav ailability of women affects the volume of sales because there will be fewer candidates willing to take the part-time sales representative job and also there will be fewer women to meet those representatives to buy the products. Going global is a risky decision as the economic recession can affect the profitability of a global company more than a local company. Some portion of operating cost of global operations is fixed in nature and can not be avoided like legal formalities of each country. Global recession also affects the purchasing power.