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Mary Kay

Decent Essays

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 …show more content…

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

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