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    MKC was looking to expand internationally in 1993 as only 11% of sales came from outside the US. They wanted to enter the Japanese and Chinese markets specifically. Japan had a mature but profitable cosmetics market while China's market was less developed with lower individual incomes. To succeed, MKC needed to modify their marketing strategy. They should educate local populations on their products and encourage more women to become beauty consultants. A new customized marketing plan for each country was also recommended to ensure products, branding and pricing fit local standards.

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    MKC was looking to expand internationally in 1993 as only 11% of sales came from outside the US. They wanted to enter the Japanese and Chinese markets specifically. Japan had a mature but profitable cosmetics market while China's market was less developed with lower individual incomes. To succeed, MKC needed to modify their marketing strategy. They should educate local populations on their products and encourage more women to become beauty consultants. A new customized marketing plan for each country was also recommended to ensure products, branding and pricing fit local standards.

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    67 views1 page

    Mary Kay

    Uploaded by

    Tamala Morris
    MKC was looking to expand internationally in 1993 as only 11% of sales came from outside the US. They wanted to enter the Japanese and Chinese markets specifically. Japan had a mature but profitable cosmetics market while China's market was less developed with lower individual incomes. To succeed, MKC needed to modify their marketing strategy. They should educate local populations on their products and encourage more women to become beauty consultants. A new customized marketing plan for each country was also recommended to ensure products, branding and pricing fit local standards.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    EXECUTIVE SUMMARY

    Mary Kay Cosmetics: Asian Market Entry

    Company/Industry Overview

    Mary Kay Cosmetics (MKC), a direct selling cosmetics company, was established in 1963 in
    Texas. Today, the company sells its products through representative beauty consultants who
    are independent salespersons worldwide. MKC sales force consisted of four levels: beauty
    consultants, sales directors, senior sales director, and national sales director. A beauty
    consultant can be promoted with good performance. A portion of the MKC mission is to
    endorse business opportunities for women while teaching other women to care for their skin
    through cosmetics. In 1992, retail sales were $1 billion with only 11% being represented by
    international markets. One of Mary Kay’s biggest US competitors, Avon Products Inc., had
    gained over 55% of its retail sales internationally. In 1993, Curran Dandurand, senior vice
    president of MKC, was looking to establish market strategies internationally, specifically in Japan
    and China.

    Underlying Problems

    With only 11% of MKC sales internationally, MKC was experiencing a weak international
    presence. MKC must discover a way to expand its international operations. The company must
    reevaluate and modify its current critical success factors and marketing strategy to meet
    international demand specifically Japanese and Chinese markets. In Japan, the market is mature
    but very profitable. China, on the other hand, has a relatively undeveloped market with lower
    individual purchasing power.

    Strategic Options

     Market Development: Educate the population


     Market Development: Encourage individuals to become beauty consultants
     Market Penetration: Create new marketing plan for Japan and China

    Recommendations

    In order to build a successful presence internationally, the corporation must take special time to
    educate the public on their services. In doing so, the company should plan, market, and execute
    various seminars that will teach women of the company’s business opportunities and encourage
    them to become beauty consultants. MKC new marketing plan should insure that the products,
    brand names, and pricing are designed according to the standards of its consumers.

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