Mary Kay in Thailand
Mary Kay in Thailand
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Table of Contents
Executive Summary 3
Company and Industry Overview 3
Mary Kay Global 5
Market Trend Analysis 6
Competition and Market Barriers 7
The 4Ps 8
Product Analysis 8
The Market 8
Product Function 9
Ingredients 9
Products that contain specially controlled substances 10
Market Access 10
Product Manufacturing 11
Promotion Strategy 11
Delivery Profile 13
Direct Sales 13
Characteristics of the direct sales force 13
Role of independent distributors 13
Mass Marketing outlets 14
Price 14
Market Entry Strategy 15
Pro Forma Financials 16
Entry Costs 16
Assumptions 17
Potential Revenue – 5 Year Forecast 18
Cost per Item 18
Promotion costs 19
Sales/Delivery/Service Costs 19
Taxes 20
Net Profit 20
Recommendations and Conclusion 21
Appendix – Market Analysis 21
1a. Market Analysis 21
1b. Market Accessibility Profile 22
2a. Product specific demand profile 26
2b. Sales and Delivery Profile 26
Executive Summary
Entering the Thai market is a feasible venture for Mary Kay as the region is primed for the introduction of anti wrinkle and anti aging products. Thailand’s cosmetic industry in is among the fastest growing sectors in Asia. The total market size for this sector was estimated at 287.5 million USD in 1997. Stimulated by growth since the economic downturn in 1995, the region is very open to foreign investment. Skin care product sales were valued at $336 million USD in 2006, with a forecasted growth of 15-20%. Facial products have the largest share of the market yielding an estimated worth of $205 million in 2006.
The Mary Kay product line is a high-quality skin care treatment system that rivals that of Avon, our closest competitor in this market segment. Aside from the restrictive tariff rates of 30%, Thailand is a prime location to introduce our Timewise® product line. The Mary Kay brand is known for its quality products that provide a
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Table of Contents
Executive Summary 3
Company and Industry Overview 3
Mary Kay Global 5
Market Trend Analysis 6
Competition and Market Barriers 7
The 4Ps 8
Product Analysis 8
The Market 8
Product Function 9
Ingredients 9
Products that contain specially controlled substances 10
Market Access 10
Product Manufacturing 11
Promotion Strategy 11
Delivery Profile 13
Direct Sales 13
Characteristics of the direct sales force 13
Role of independent distributors 13
Mass Marketing outlets 14
Price 14
Market Entry Strategy 15
Pro Forma Financials 16
Entry Costs 16
Assumptions 17
Potential Revenue – 5 Year Forecast 18
Cost per Item 18
Promotion costs 19
Sales/Delivery/Service Costs 19
Taxes 20
Net Profit 20
Recommendations and Conclusion 21
Appendix – Market Analysis 21
1a. Market Analysis 21
1b. Market Accessibility Profile 22
2a. Product specific demand profile 26
2b. Sales and Delivery Profile 26
Executive Summary
Entering the Thai market is a feasible venture for Mary Kay as the region is primed for the introduction of anti wrinkle and anti aging products. Thailand’s cosmetic industry in is among the fastest growing sectors in Asia. The total market size for this sector was estimated at 287.5 million USD in 1997. Stimulated by growth since the economic downturn in 1995, the region is very open to foreign investment. Skin care product sales were valued at $336 million USD in 2006, with a forecasted growth of 15-20%. Facial products have the largest share of the market yielding an estimated worth of $205 million in 2006.
The Mary Kay product line is a high-quality skin care treatment system that rivals that of Avon, our closest competitor in this market segment. Aside from the restrictive tariff rates of 30%, Thailand is a prime location to introduce our Timewise® product line. The Mary Kay brand is known for its quality products that provide a