Business and Promotional Adaptation
Avon’s world is divided into four geographical divisions: The United States, Europe, The Pacific, and The Americas. In most international markets, the primary operating arrangement in each of these divisions is direct ownership by Avon of the foreign subsidiary. Joint ventures with foreign firms are used when the culture, beliefs, country personality, and ways of business are considerably unfamiliar to Avon’s management. It was decided that a joint venture approach be used in Norway, while subsidiaries be used in both Switzerland and Luxembourg.
For Norway, it is best to use a joint venture. This is evident because Avon is very unfamiliar with this territory, as it not very established within Scandinavia. The only country in the area it has set foot in is Finland. Avon is not in Sweden, Denmark, or Norway, though the latter two were candidates for market development. A slight economic dip in Norway is causing consumers to seek out cheaper products, or simply more cost-effective, as well as products that are ready-made. The Norwegians also prefer domestic products, which endorses the idea of a joint venture, which will full adapt products and promotion to their liking.
In Switzerland, it is best to use a subsidiary business adaptation. This country has two large hubs, Geneva and Zürich, so it is like the Swiss to be innovative with so many goods and travelers moving in and out. Switzerland doesn’t have much influence from most of Europe, as it is not part of the European Union, but it is surrounded by France, Germany, and Italy: all of which host Avon. Most Swiss citizens speak German, but the influence is primarily language-based. Switzerland’s main influences are Alpine: ...
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...ernational brand and make new countries eager to join in.
The “fun” side of Avon uses celebrities, stage shows, raffles, and giveaways. Using, but modifying these tactics, Avon could increase awareness about the brand and drive sales in new markets. The “fun” side also has another face, the “serious concern” side that includes cause marketing. In serious endeavors, Avon makes efforts to portray the cause, but keep a light mood that is positive and energizing.
Avon’s marketing strategies should be adapted to each developing market differently. By having a brand personality that is both exciting and sophisticated, Avon can provide glamour and charm while being up-to-date with trends. This creates a global appeal to the international brand. With just a touch of sincerity with cause marketing, Avon can appeal to local markets and cross into new territory.
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