Mistine: Direct Selling in the Thai Cosmetics Market

729 Words Jun 26th, 2014 3 Pages
1. Based on the SWOT analysis provided in the case, what are the two or three factors that Mistine should stress in its strategic planning as it looks to continue its growth and dominance in the Thai market? How can Mistine match its strengths with its market opportunities to create competitive advantage moving forward?
After having analyzed the information about Mistine’s domestic market, there are several problems that need to be managed including a high employee turnover rate, limited channels of distribution, and an increased competition in the industry.
Employee turnover: The rate of salesperson turnover at Mistine is about 200%, which is very high. The reason is due to several reasons. Most of Mistine’s salespersons sell the
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For global strategy, Apart from a further penetration of the domestic market Mistine’s main opportunity lies in the expansion to international markets. Mistine should therefore focus on neighboring countries such as Vietnam, Malaysia, Singapore, Taiwan and China.
The cultures of those countries are also similar to the Thai culture and the slogan “products that are developed and formulated especially for Asian women” will also appeal to those women. When penetrating international markets Mistine will face the following difficulties:
• Consumer Behavior: In different countries consumers will respond differently to advertising, product positioning and the kind of distribution. Also the willingness to spend a certain amount of the income for cosmetics differs among countries. Another important factor is the consumer’s willingness to switch the brand.
 Purchase Power: People living in different nations have a different income.
 Laws: Other countries have different laws regarding distribution, manufacturing and advertising. If the products are being manufactured in Thailand, there might be import tariffs.
 Competition: There are companies like Clarins or Kanebo that are international brands and appeal more to the upper middle class section.

2. How can Better Way stay on top in Thailand while it looks to expand internationally?
Better Way should create a new division solely for international expansion. This way company can allocate proper