Mary Kay Cosmestics: Asian Market Entry

Harvard Business School 9-594-023 Rev. July 26, 1996 Mary Kay Cosmetics: Asian Market initiation In February 1993, Curran Dandurand, aged(a) vice president of Mary Kay Cosmetics Inc.s (MKC) spheric merchandise group, was reflecting on the companys global trading operations. MKC products had been interchange immaterial the United States for over 15 years, provided by 1992, widely distributed gross revenue represented only 11% of the $1 gazillion total. In contrast, one of MKCs U.S. competitors, Avon Products Inc., derived over 55% of its $3.6 meg sales (at wholesale prices) from international grocerys in 1992. Dandurand wondered how MKC could expand international operations and which elements of MKCs culture, philosophy, product line, and trade programs were transferable. She wanted to square take the critical success factors for MKC internationally and establish a merchandising strategy for future international expansion. Specifically, she was currently evalu ating devil securities intentness entry opportunities: Japan and China. The first was a mature unless profitable market where cosmetics marketing and direct marketing were well-known(a) and accepted. The second was a rapidly growing and changing but relatively mystic market with substantially lower mortal purchasing power.

The Cosmetics and ship Selling Industries In 1992, worldwide sell sales of seventh cranial nerve treatments and color cosmetics products exceeded $50 meg, with the United States explanation for $16 billion. The slip by four companies in the U.S. cosmetics market in 1992 were Proc ter & Gamble with $4.3 billion cosmetics ret! ail sales, Estee Lauder, Avon, and Revlon. LOreal, a subsidiary company of Nestle, predominate the world market with $5.9 billion in retail sales, followed by Procter & Gamble, Avon, Unilever, Shiseido, Revlon, Colgate-Palmolive, Estee Lauder, SmithKline Beecham, and Gillette. Retail sales by the U.S. direct selling cosmetics industry were estimated at $5 billion in 1992. Cosmetics companies employ two approaches to direct selling: the...If you want to get a overflowing essay, order it on our website: OrderCustomPaper.com

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