Mary Kay Cosmetics
Case Study on Mary Kay Cosmetics: Asian Market Entry
Executive Summary
Mary Kay Cosmetics Inc’s (MKC) was facing challenges of increasing number of competing direct selling organizations in the US cosmetics market and was not satisfied with their sales revenue generated from international sales. They believed MKC culture could be transferred internationally and that Mary Kay Ash’s charisma, motivation and philosophy were likely to appeal to women throughout the world.
MKC management would like to expand their coverage to some other Asian countries – Japan and China. With evaluations of both markets through PESTEL framework and their own market attractiveness, there are proven potentials in developing MKC in these markets.
Successful entry to these markets would definitely assist MKC on further expansion to other developing Asian countries and the rest of the world.
Background
In 1993, management from Mary Kay Cosmetics Inc’s (MKC) global marketing group was reflecting lower international sales of the overall sales in 1992 compared to their competitor, Avon Products Inc., which is 11% of $1 billion versus 55% of $3.6 billion. The management believed they could achieve increased sales, brand awareness and business stability by entering a new market, especially with their past successful international experiences.
Aside from choosing which markets with the most potential MKC should enter? The choice of mode of entry, its STP and marketing programs favored to chosen markets.
PESTEL Analysis
Expanding business to Japan and/or China is a decision the management has to make and to further develop a market entry strategy that fit with the MKC culture and the local market environment. Some market environment factors are crucial in deciding the vitality of entry into these markets:
Political Situation
A closer cooperative relationship has been going on in Japan and the US with the election of Prime Minister Yasuhiro Nakasone, this political
Executive Summary
Mary Kay Cosmetics Inc’s (MKC) was facing challenges of increasing number of competing direct selling organizations in the US cosmetics market and was not satisfied with their sales revenue generated from international sales. They believed MKC culture could be transferred internationally and that Mary Kay Ash’s charisma, motivation and philosophy were likely to appeal to women throughout the world.
MKC management would like to expand their coverage to some other Asian countries – Japan and China. With evaluations of both markets through PESTEL framework and their own market attractiveness, there are proven potentials in developing MKC in these markets.
Successful entry to these markets would definitely assist MKC on further expansion to other developing Asian countries and the rest of the world.
Background
In 1993, management from Mary Kay Cosmetics Inc’s (MKC) global marketing group was reflecting lower international sales of the overall sales in 1992 compared to their competitor, Avon Products Inc., which is 11% of $1 billion versus 55% of $3.6 billion. The management believed they could achieve increased sales, brand awareness and business stability by entering a new market, especially with their past successful international experiences.
Aside from choosing which markets with the most potential MKC should enter? The choice of mode of entry, its STP and marketing programs favored to chosen markets.
PESTEL Analysis
Expanding business to Japan and/or China is a decision the management has to make and to further develop a market entry strategy that fit with the MKC culture and the local market environment. Some market environment factors are crucial in deciding the vitality of entry into these markets:
Political Situation
A closer cooperative relationship has been going on in Japan and the US with the election of Prime Minister Yasuhiro Nakasone, this political