Mk Cosmetics

MARY KAY COSMETICS: ASIAN MARKET ENTRY

6. Why has MKC not been as successful as Avon in penetrating international markets?

Avon’s success is due to its campaigns used to promote specific days like Mother Day. Moreover, Avon employed manager force to oversee the company’s independent salespeople.

Avon has adapted more than MKC its products and prices to the buying power of each country. Avon hired managers giving them a strong autonomy, and permit to create opportunities thanks to a large budget accorded to local managers. MKC’ strategy was much more on developing “support systems, mentoring, training and recognition of consultants”.

7. What criteria should Dandurand use in deciding how to prioritize foreign market entry opportunities?

There is a potential success of MKC’ party plan approach to sales in foreign markets. Party plan has been an accepted technique in Japan in 1992.

8. What are the arguments for and against MKC entry in:

Japan (for/against)

China (for/against + comparison of the two markets)

Japan:

Arguments for: Important number of tourist with a good buying power (500 million dollar of cosmetics in duty free each year). Japanese women starting business would be customers for cosmetics market. Increasing women population working and having another activity outside the home.

Arguments against: Strict ministry of health regulations governing imports: many ingredients not allowed in cosmetics in japan.

China:

Arguments for: Chinese women are interested in cosmetics. The party plan method would be accepted in China. Chinese women are entrepreneurial, and consider self-development very important and want to earn more salaries.

Arguments against: Chinese people would not really accept to receive consultants in their home. Difficulties to find resources to explain and communicate the concept to consultants and consumers.

4. What marketing mix recommendations would you make to Dandurand if she decides to enter:

Japan...