Question

Avon was known as the company that sold cosmetics door-to-door for a long time. In order to grow and reach new markets it began to sell jewelry through its door-to-door sales force. This involved marketing new products through existing channels of distribution. It also is now selling its products by mail order and has opened retail stores. Avon is an example of a company effectively using which strategy?

Answer 1

Answer:

diversification strategy

Explanation:

In Business, diversification strategy refers to the strategy that company implemented in order to enter more than one markets in their overall operation.

Diversification strategy can be done by creating different varieties of products. This will help the company obtain new batch of costumers with different taste/preference who cannot be obtained with their old products.

On top of that, diversification also can be done by selling the products in different methods. This usually made to target different customers who have their own preference in shopping's. For example, if a company is used to sell most of their products through store, opening an online store would be one good example of divarication through different selling methods.