Mary Kay Cosmetics Mid-Term Assignment
1) In regards to Mary Kay Cosmetics (MKC) decision on whether to enter Japan, China, both, or neither I would like to recommend that MKC should first expand their business into the Chinese market using the majority of the resources. I would then recommend that entry into the Japanese market should be at first held off but then reconsidered based on the level of success found in the Chinese venture.
I feel as if MKC will find the most success within China if they brand themselves as a skin care expert that also sells make-up. I think that MKC should differentiate themselves within the market by continuing to focus on their party plan strategy. They would just need to make sure the proper
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4) To continue the discussion on how I reached my decision on my final recommendation I will first start by presenting a chart comparing the size, structure, and potential of the cosmetics industry in the two countries shown below:
Measure | Japan | China | MKC Gross Margin/unit | $9.45 | $2.02 | Start-up Investment costs | $10 million | $2 million | Population, 1992 | 124 million | 1,139 million | Population Distribution, 1993 (0-24;25-49;50+) | 32%;37%;31% | 42%;39%;19% | 1992 Advertising Expenditure for Capita | $220 | $0.86 | GDP (US$ Billion), 1993 | 3,370 | 1,700 | Breakeven Period | 3-5 years | 2 years | Total Market for Cosmetics | 9,319 (1991, $Millions) | $825 million |
Looking at the table can certainly provide some solid background information about the possibilities of entry in either country but I think it is also important to break down some pros and cons of both China and Japan in writing.
China is one of the fastest emerging markets in the world and is also home to the highest cultural population, roughly 1.1 billion in 1992 and 3 ½ times that of the U.S. These statistics appear to make China a very
Mary Kay offers chinese woman business opportunities and work options. Allow women to work either full-time or part-time. Offers revenue for advancement then successful promoters may become business consultants and chief business consultants
Since the reform and opening up, the economy of China grows significantly, as an emerging economy, China's economy has made tremendous contributions to the global economy, and Renminbi has become one of the most important currency in the world. According to the survey conducted by China National Bureau of Statistics found that from 1979 to 2012, China has attained an annual average growth rate of 9.8% for its national economy, while the annual average growth of the world economy is only 2.8 % during the same period. In past 30 years, China's GDP surpassed Japan’s, China became the world 's second largest economy, in addition, the huge total volume of trade makes China become the world 's largest trading nation. The contribution of China’s
Today’s China is the most populous country in the world and is so one of the most important political and economical forces in the world.
Mary Kay Ash was a famous American businesswoman and the founder of Mary Kay Cosmetics. She started her business with a small investment of $5000 in 1963, and soon became one of the most successful business women of her time.
In 2008, the Global Financial Crisis broke out; both the American economy and the economy in the West suffered a hard blow. However, a big economy system in the East emerged unexpectedly. China is now able to challenge the America’s decades-long dominant position in economic area. Started during the middle of 1990s, China’s manufacturing industry developed rapidly that billions of exports were floating out, and China was given the title of “the world’s factory”(BBC). By the end of 2010, China with a GDP of $5.8 trillion, surpassed Japan’s GDP of $5.48 trillion, became the world’s second largest economy system (BBC). China also exceeded Japan became America’s largest foreign securities holder. Since then, China has been seen as the US’s
China considered one of the largest economies in the world, it also has a vast emerging
The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.
6. You have been asked to develop a product for sale throughout the ASEAN region. What are the criteria you would apply in the
Mary Kay, Inc. was founded in 1963 by Mary Kay Ash as Beauty by Mary Kay. Mary Kay is a direct sale type of company, with “independent beauty consultants” that sell and market Mary Kay products (2012 Corporate Fact Sheet). Mary Kay Ash operated with the mindset of “God First, Family Second, and Career Third,” and always adhered to the golden rule, do to others as you’d want them to do to you (Kerin, Et. Al). Mary Kay, Inc. first entered the global market in 1971 with its expansion into Australia. Today, Mary Kay is represented in over 35 global markets (2012 Corporate Fact Sheet). Mary Kay is challenged to ensure brand consistency across the world, despite differences in cultures from market to market. As such, Mary Kay would be considered a transnational firm. They tie the similarities between each market together while celebrating the differences in each market. This strategy allows them to offer Mary Kay’s core product lines globally where they’re most desired. In China, one of their most successful markets, Mary Kay applied their existing corporate message of women empowerment to attract Chinese women that otherwise wouldn’t be able to start their own business. Where China differs from the United States market is in product need. Chinese women don’t typically wear a lot of makeup, so
Porter national diamond analysis Supporting Industries Superior in-store infrastructure Counseling counters Cosmetic R&D centre MDO, Max factor Strategy, Structure and Rivalry High number of domestic competitors with high innovation. Tough competition Presence of prestigious foreign brand Intense, established, well respected , high experience and famous competitors Limited competitors in high-cosmetic market which can lead to low innovation and learning improvement as well as an opportunity to easily reach a huge market for P&G
Base on the first assessment, refer to the PESTEL and Porter’s 5 Forces analysis (Appendix 6.1), the most attractiveness in China is the point of huge increasing population which have recorded 1,370,536,875 (National Bureau of Statistics of China 2012) on 2011. And as one of the BRIC countries, China has also recorded a 7.4% of GDP growth rate in 2012 (Trading Economics 2012), which is an evidence showing China is a strong emerging market. Regard to the technology used, China has relatively lower penetration rate than the other two countries. But operating business in China has a lower cost than the other two countries, example as the labour cost.
China is one of the biggest markets in the world. China’s immense diversity, complexity, variety & immense competitive intensity are unrivalled in the world. China’s historical development, political structure, climate & its foreign relation influence its economy & foreign trade. China’s
The best prospects in Hong Kong will be in hair coloring products, skin-whitening products, nail products, color cosmetics, permanent eye makeup, and skin care products for professional beauty salons. U.S. skin care and hair care
Many cosmetic brands are popping up recently, perhaps, due to the increasing consumers of products that beautify and enhance the physical appearance of a person. Even though the market is already full of the said cosmetic brands, the company L’Oreal Groups could still be considered as the leading supplier of cosmetics and hair-color. This study is a brief overview of the marketing concepts and strategy of the said company. The company profile will be presented to be able to give a clear view of the market to which the company belongs to. An internal and external (SWOT) analysis of the company will also be provided in this paper. Another area will be specifically devoted to