Innovation Strategy Paper, Essay Example

Avon Products, Inc. is one company to practice an innovation strategy as a way of keeping their business alive in the market. As a merchandiser of beauty and beauty related products, Avon markets nationally and internationally to more than 112 countries. All sales are done through direct selling. (Naz, 2013) An innovation strategy is a plan made by a company to encourage advancements in technology and services. (WebFinance, Inc. , 2013) At Avon Products, Inc., their innovation strategy applies to all facets of the company, from the products themselves, to customer service techniques, to product packaging.

Avon management has set in place a long-term plan meant to ensure the company’s place in the global cosmetic industry. They evaluated their customer service and developed a direct marketing program called Avon Select that allows customers to purchase products in four different ways. This ensures they can use the program in all countries. As far as the products themselves, certain global brands that have been strong in the market worldwide were strengthened with further development. Because of their strong presence in the markets of other countries, Avon’s logistics system was able to take advantage of sourcing of raw material to increase efficiency of the supply chain. (Naz, 2013) Product research and development is a main focus for the company and large percentage of the company’s budget. The company’s system allows them to research, develop, and implement new product lines that tie into consumer interests quickly, such as “Avon Wellness” and “Anew”. (Naz, 2013) Their packaging department is tasked with the development of two to three new package designs each year.

In addition, Avon has succeeded in being at the forefront of social issues. For example, Avon was the first cosmetic company to cease all animal testing. The company practiced micro lending from its beginning and is currently the world’s largest micro lender for women. (Naz, 2013)

 References

Naz, R. (2013). Avon Products Inc. – Developing in a Global Perspective. Retrieved February 3, 2013, from Scribd: http://www.scribd.com/doc/52292825/Competitive-Strategic-Management-Developing-Avon-In-A-Global-Perspective

WebFinance, Inc. . (2013). Innovation Strategy. Retrieved February 3, 2013, from BusinessDictionary.com: http://www.businessdictionary.com/definition/innovation-strategy.html