Mary Kay Cosmetics : introduction sur le marché asiatique

Résumé du document

Mary Kay Cosmetics is an American based company marketing skin care products and makeup through direct selling using the party plans method. The firm is facing concerns about its internationalization and in order to not lag behind its competitors, top managers are wondering which strategy to adopt.
First, we will detail the various problems encountered by the firm in its home market and abroad and how they relate together. Secondly, we will deepen this analysis so as to check the past mistakes and use them to establish a new global strategy for the firm.
In the third part, we will study the positive and negative aspects of an implementation in China or Japan and finally, we will formulate a recommendation and a choice between these two Asian countries with the aim to improve the performance of MKC international operations.

Extraits

[...] and competition is becoming fiercer. The number of competitors in the direct selling industry is increasing too: this may conduct to a phenomenon of weariness. This way of differentiation becomes more common and is not anymore a comparative advantage. There is no surprise effect anymore and finally, both consumers and sellers may be less attracted. This is why we may have fears and doubts for the next years 2 MKC's international difficulties For over 15 years, MKC has tried to sell its products abroad, but still, international sales account for only 11% of the billion total. [...]

[...] Door-to-door visits could be used for selling to loyal customers, as well as to prospect new customers. But at the beginning, this could also be a way to attract women by presenting them the Sales Consultant position. As a conclusion, this entry on the Chinese Market is a real test to check MKC adapted strategy against the market. It will enable to see whether local adaptation is the key to international operations success. If so, this would provide Mary Kay Corporation with financial resources which would foster international development. [...]

[...] They wish to emancipate and hold an active role in the society as women. Thus the positioning of MKC in China is clear: MKC is to teach its “educational beauty” to Chinese consumers that are not yet used to cosmetics products. To adapt this positioning, it is necessary to take into account that the concept of career is alien to the Chinese culture. Working is seen as a way to make money, and MKC communication in China should focus on the financial reward aspect. [...]

[...] Another solution would be to designate a licensed distributor but this would lead to a loss of power and could turn out to be inconsistent with the mother company's strategy. Then, a joint-venture agreement would help to understand and to better integrate the Chinese market. However, it may take time to build a trustworthy relationship. For what concerns advertising, we can notice that the expenditures are far less important than in Japan and it is much cheaper to well advertise a product. However, it is very different from the USA habits and MKC should make a real effort to adapt and understand these dissimilarities. [...]

[...] Asia seems attracting above all China and Japan in the cosmetics industry. So, now, that we have defined a global orientation for the firm, we are going to analyze which of these two markets might be the most lucrative. This Diagram provides a summary of the Strategy of the company The two Asian giants 1 Japan: a contrast between the global strategy and the market structure Japan is one of the leading economies in the world and a partner for the USA. [...]