Mary Kay to Italy
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COUNTRY MARKET REPORT
MARY KAY TO ITALY
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EXECUTIVE SUMMARY
Mary Kay, a corporation created and run by women, sells cosmetics and skin care products worldwide. The impact on the skin care and cosmetic industry has proved to be impressive at US $2.5 billion on an international level in 2010. Mary Kay’s headquarters and primary manufacturing facility is located in Addison, Texas. The corporation operates on a multi-level marketing structure, while implementing direct selling methods through hired beauty consultants. Mary Kay has enjoyed global expansion over the past 25 years in countries throughout Europe, South America, and Asia (Mary Kay, 2011). The proposed market in Italy has much potential for several reasons. First of all, Mary Kay is already located in several European countries, such as Germany and Spain. Therefore, the concept of a planned expansion to Italy is not entirely foreign. Additionally, the Italian cosmetics industry is growing in terms of natural and organic products, which has already been one of Mary Kay’s leading unique selling propositions (USP). The Italian market is expected to be very attractive to Mary Kay for several reasons stipulated in this report, including but not limited to a developing interest of non-traditional segments, such as men, children, and the elderly in the products of the skin care industry. This trend is very likely to open up further growth opportunities for Mary Kay.
Given the success of Mary Kay’s business model around the world, the company is well advised to enter the Italian market by simply implementing the already proven strategy of multi-level marketing. Conceptually, the mode of entry is defined as licensing, since local independent Beauty Agents (licensees) will be licensed by Mary Kay (licensor) to acquire new customers and sell the company’s products through direct marketing.
In terms of product
COUNTRY MARKET REPORT
MARY KAY TO ITALY
-------------------------------------------------
EXECUTIVE SUMMARY
Mary Kay, a corporation created and run by women, sells cosmetics and skin care products worldwide. The impact on the skin care and cosmetic industry has proved to be impressive at US $2.5 billion on an international level in 2010. Mary Kay’s headquarters and primary manufacturing facility is located in Addison, Texas. The corporation operates on a multi-level marketing structure, while implementing direct selling methods through hired beauty consultants. Mary Kay has enjoyed global expansion over the past 25 years in countries throughout Europe, South America, and Asia (Mary Kay, 2011). The proposed market in Italy has much potential for several reasons. First of all, Mary Kay is already located in several European countries, such as Germany and Spain. Therefore, the concept of a planned expansion to Italy is not entirely foreign. Additionally, the Italian cosmetics industry is growing in terms of natural and organic products, which has already been one of Mary Kay’s leading unique selling propositions (USP). The Italian market is expected to be very attractive to Mary Kay for several reasons stipulated in this report, including but not limited to a developing interest of non-traditional segments, such as men, children, and the elderly in the products of the skin care industry. This trend is very likely to open up further growth opportunities for Mary Kay.
Given the success of Mary Kay’s business model around the world, the company is well advised to enter the Italian market by simply implementing the already proven strategy of multi-level marketing. Conceptually, the mode of entry is defined as licensing, since local independent Beauty Agents (licensees) will be licensed by Mary Kay (licensor) to acquire new customers and sell the company’s products through direct marketing.
In terms of product
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