...Zhuo Wang MAR6158.901 27/May/14 Case Summary: Mary Kay Cosmetics (Asian Market Entry) In February 1993, Curran Dandurand who was senior vice president of Mary Kay Cosmetics Inc. found out that though MKC has sold its products outside the USA for 15 years by 1992, the international sales only take 11% of the $ 1 billion total. The data showed that one of its main competitors, Avon, its Products Inc. take over 55% of its $3.6 billion sales from international market at that time. Mary Kay Cosmetics Inc., which is also called MKC. Mary Kay is a cosmetics incorporated in Texas (United States) in1963 by Mary Kay Ash. Since that time, Mary Kay Ash’s charisma, philosophy, and motivation were likely appeal to women all over the world, actually this company offers unlimited opportunities of women in business. Mary Kay Cosmetics Inc. is a direct selling cosmetics company, sold a range of skin care, personal care, and cosmetic products through approximately 275,000 independent sales people worldwide. Actually all the company products were manufactured in a single plant near Dallas. And there were four basic levels of independent contractors in MKC sales force: beauty consultants, sales directors, senior sales director, and national sales directors. Promotions were made on the basis of performance, and Mary Kay Cosmetics Inc. involved its sales force in product policy decisions by sending samples to them for evaluation. MKC also developed training ads programs and manuals for its sales...
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...Copy of Copy of Mary Kay in India No description by Mohit Bhatia on 17 November 2013 •342 Comments (0) Please log in to add your comment. Report abuse Transcript of Copy of Copy of Mary Kay in India Mary Kay in India Table of Contents Case Background Case Analysis Swot 4P's Other research Questions Conclusion Recommendations Case Background Founded in Dallas, Texas (1963) Headquarters: Addison, Texas Located in 35 countries in 5 continents. Key people: Mary Kay Ash, Founder, David Holl, CEO Net sales of USD 2.9 billion Richard R. Rogers 1963, Executive Chairman Employees, Staff - more than 2.5 million independent beauty consultants. Over 200 products. Manufacturing plants in Dallas, Texas and Hangzhou, China Conclusion What did we cover? Successful worldwide, but failed in India. It is still suspicious - "pyramid scheme". Questions Case Analysis Marketing Mix Recommendations 1. Understanding the political environment of India before entering India market. 2. Adapt to the India economy and localize some products. 3. Localized manufacturing. S.W.O.T Strengths Established brand image Strong financial position Diverse portfolio Strong international presence Superior sales training Strong buyback system. Weaknesses No manufacturing plants in India Slow growth in revenues Sales consultants don't have access to product in bulk Volatility of direct sales Weak control over sales consultants Poor logistics and distribution...
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...Year | 2014 | Exam Sitting | AUGUST | Subject | E-COMMERCE | Weightage | 25% | Submission Date | 31/7/2014 | Regulations A. Late Submission * A 10% deduction per day of total coursework marks (excluding weekends and public holidays). * Late submission between 5 to 10 days, results in a 50% deduction of total coursework marks. * Late submission past 10 days results in an automatic 0% for coursework and the student will be barred from the final examination. B. Deliverables Students must submit all materials supporting their coursework listed in the deliverable section. * Plagiarism is presenting somebody else’s work as your own. It includes: copying information directly from the Web or books without referencing the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework from another student and submitting it as your own. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the procedures set down by the university/college. The coursework must be done individually and must be entirely your own work. Please make sure that you are aware of the rules concerning plagiarism. If you are unclear about them, please consult your program coordinator/lecturer. * The coursework should exhibit formal research skills i.e. with a table of content, proper citations, references, and appendixes. * The coursework write up must be able to demonstrate...
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...ADMINISTRATION (MBA) MARKETING MANAGEMENT (MKT750) GROUP ASSIGNMENT CASE STUDY : MARY KAY INDIA HAIR CARE LINE PRODUCT ALINUR AYUNI ALI2012416538 MOHD HAFIZ ABD GHANI 2012456922 UMI NADIA MOHAMED 2012217058 GROUP BM7702PA – EVENING TRACK LECTURER DR. SITI ZALEHA SAHAK TABLE OF CONTENT 1. Strategic Issues And Problems 1 2. The Branded Beauty And Personal Care Market In India 2 3. Mary Kay, Inc. 4 1. Mary Kay Inc. Hair Care In India 4 2. Summary Of Facts – 4Ps 6 1. Product 6 2. Price 6 3. Promotion 7 4. Placement 7 4. Strategic Marketing Tools 8 1. BCG Model: Branded Beauty and Personal Care in India 10 2. BCG Model: Mary Kay Business Subunits in India 11 3. Limitations of BCG Model 12 4. Payoff Matrix: Alternatives for Mary Kay Inc. 12 5. Recommendation and Conclusion 15 1.0 STRATEGIC ISSUES AND PROBLEMS Sheryl Adkins-Green, the vice president of Brand Development at Mary Kay, Inc. received a request from a general manager for India to provide a hair care line for women. Being in attached with the company, her responsibilities to develop brand and being in charge around the world and global initiatives and products...
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...Mary Kay Cosmetics: Asian Market Entry Case Study International Marketing 466 Curran Dandurand, the senior vice president of Mary Kay Cosmetics Inc.’s (MKC) global marketing group is considering how to expand the company’s international operation. She is debating which elements of MKC’s culture, philosophy, product line, and marketing programs might be transferable both in general and in particular in respect the China and Japan, two major Asian markets in which MKC does not have a presence. Dandurand must decide whether to enter either or both of these markets (or neither) and, if so, what marketing entry strategy to pursue. This case gives your global marketing team the opportunity to: 1) explore why two companies (Avon and MKC) in the same business (the direct selling of cosmetics) differ so greatly in the percentages of their sales that are international 2) examine the transferability of a corporate value system developed in the United States to foreign subsidiaries 3) identify the criteria that should determine which country markets a multinational should enter and to assess two countries against these criteria 4) contrast the implications for marketing strategy and tactics of being a late entrant in a mature market versus a relatively early entrant in an emerging market The objective of the case is to focus on the following issues and dilemmas: 1. Why has MKC not been as successful as Avon in penetrating international...
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...AVON PRODUCTS, INC.: DEVELOPING A GLOBAL PERSPECTIVE INTRODUCTION “When the history of this organization is written,” noted James E. Preston, chairman and chief executive officer of Avon Products, Inc., in February, 1993, “a meeting last June in Florida of 60 managers from around the world may turn out to have been a watershed event. Our four days of brainstorming, debate and discussion brought to an end two years of research and examination of our basic businesses, and launched us on a new way of thinking about and managing those businesses.” Preston was excited about the new direction taking shape at Avon. The past several years had been difficult for the organization. Hostile takeover attempts plagued the firm during the 1980s. Avon sales volume in the United States and international markets showed little or no growth. Profit margins on many products declined due to price discounting by competitors. Turnover rates of sales representatives had increased. The corporate debt was referred to as “staggering” at $1.13 billion or 82.5% of total capital in 1988 (See Appendices A, B, and C). Preston was confident, however, that 1993 would be a year of improvement for the company, both in financial performance and in the progress made “repositioning ourselves as the woman’s company for the Nineties and beyond.” Avon’s research department informed management that corporate problems centered around image and market access. That shaped the agenda of the June, 1992, meeting in Florida:...
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...AVON PRODUCTS, INC.: DEVELOPING A GLOBAL PERSPECTIVE INTRODUCTION “When the history of this organization is written,” noted James E. Preston, chairman and chief executive officer of Avon Products, Inc., in February, 1993, “a meeting last June in Florida of 60 managers from around the world may turn out to have been a watershed event. Our four days of brainstorming, debate and discussion brought to an end two years of research and examination of our basic businesses, and launched us on a new way of thinking about and managing those businesses.” Preston was excited about the new direction taking shape at Avon. The past several years had been difficult for the organization. Hostile takeover attempts plagued the firm during the 1980s. Avon sales volume in the United States and international markets showed little or no growth. Profit margins on many products declined due to price discounting by competitors. Turnover rates of sales representatives had increased. The corporate debt was referred to as “staggering” at $1.13 billion or 82.5% of total capital in 1988 (See Appendices A, B, and C). Preston was confident, however, that 1993 would be a year of improvement for the company, both in financial performance and in the progress made “repositioning ourselves as the woman’s company for the Nineties and beyond.” Avon’s research department informed management that corporate problems centered around image and market access. That shaped the agenda of the June, 1992, meeting in Florida: How...
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...Alima Shamuratova Mary Kay Cosmetics: Asian Market Entry Q1. First, choosing between China and Japan Mary Kay Cosmetics (MKC) management need to focus on profit and financial performance. This is the main objective for every company. Japan market is saturated and if MKC go to this country, it will start bringing profit in 4-5 years. Thus, it will take more expenses. Chinese market is not saturated, there a few foreign competitors and it allows to think that Chinese entry brings profit earlier and be cost advantage comparing to Japan ( if calculate, it can take about 2-3 years to become profitable). Moreover, labor cost in China are cheaper. Secondly, market size of China is almost 10 times bigger than in Japan. Even though that Japan has 77% of women living in cities and China has only 27%, Chinese urban population is three times more than Japanese. Third criteria that is very important is legal and political situation. Japan is politically more stable than China. It is also more difficult to enter to China due to legal regulations and high tariffs, process of entry takes about 2 years. However, foreign companies used joint venture for entry that allows building strong relations with country and sharing risk. Despite the complicated regulation process for entry, Chinese government is more opened to foreign investments than Japan. Fourth criteria is demand and consumer behavior. China and Japan have significant culture difference in perception and sales approach. Japanese...
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...RUNNING HEAD: Avon Products Inc. Case Analysis Taking Sides Avon Case Analysis MGT/578 - Strategy Formulation and Implementation December 18, 2006 Introduction – In the spring of 2000, Andrea Jung, president and CEO since November 1999 at Avon Products, Inc., faced the strategic decision of developing a growth strategy for a 115-year-old company (Pearce & Robinson, 2004). Not only was Avon experiencing a shrinking growth rate, but its earnings over the past few years had only risen in the low-single digits. Jung realized that not only had stagnant sales contributed to this but other factors as well to include changes in consumer spending habits, and limited distribution capabilities. Jung envisioned a grand strategy to get Avon moving in the right direction again. Her objective was to partner with JC Penney and Sears department stores to introduce new products in conjunction with direct selling. She presented her grand strategy to the Avon Operating Council and a bimonthly meeting. As a team, we will debate on whether Jung’s grand strategy is properly focused and directed or not optimal and needs to be refocused along with our unanimous decision. Side 1: Jung’s grand strategy is properly focused and directed (along with evidence to substantiate the arguments) Corina Andrea Jung President and CEO of Avon Products, Inc. has put together a grand strategy that is focused on improved product innovation...
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...Sales and Distribution Management Program Credit Course Code : PGPM : 3 : SL MM 606 Class of Sessions : 2012 : 30 Objective To make the student aware of issues related to sales force management focusing on ―selling‖ as a tool of Marketing Communication. The study of Channel Management offers an appreciation of logistics of information and goods, and exposes students to the types of systems required to optimize organizational efficiency through this function. Learning Objective: The aim is to prepare students to manage sales and channel teams for different types of selling, with the purpose of enhancing value based output and productivity Learning Outcomes: REFERENCE BOOKS Sales Management - Decisions, Strategies and Cases. 5ed Marketing Channels: A Relationship Approach Sales & Distribution Management Sales Management Sales and Distribution Management – Text & Cases Retailing Management – Text & Cases, 2 nd AUTHOR / PUBLICATION Richard R Still, Edward W Cundiff, Norman A, P Govoni- PCI Coughlan, 7th ed IUP Panda / Sahadev Havaldar / Cavale. Tata Mcgraw Hill - 2007 Pradhan, Swapna. Tata McGraw-Hill - 2006 e Faculty teaching the subject in all PGPM Campuses should refer Articles, Journals, Websites. Detailed Syllabus Introduction: Emerging Trends in S & D, Linking S & D Role & Responsibility of Sales person: - Cross Functional Linkages, Types of selling, Value Proposition, Lifetime Customer Value Creation- Key Accounts Management. Selling Skills: Communication...
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...AVON -STUDY CASE- Analiza contextului global al afacerilor prin prisma factorilor de impact asupra industriei cosmeticelor The cosmetic industry is one of which products tend to be countercyclical. Demand for such products normally remains constant and unaffected by economic distress. The color cosmetics are predicted to see a slowdown in volume demand. A growing trend in the cosmetic industry is the introduction of ‘green’ products. More than one in seven (16%) of global beauty products launched in 2008 were certified organic, ethical or natural. There are concerns that the global economic climate will stifle new product development, innovation and sustainability programs in 2009. An economic slowdown usually curbs companies from investing in research and development and it is that research that has brought forth a wealth of green cosmetics. For example, retailers such as Wal-Mart are increasingly requiring more ecofriendly supply chain. There are forecasts that consumers are unlikely to give up their commitments to organic products just to save a few pennies. 68% of consumers will remain loyal to a company that has a social and environmental commitment. Many consumers are now ‘voting with dollars’ for organic products and supporting brands that support values similar to their own. Economic factors mainly affect the purchasing power of customers. The more customer demand for the product the more profit to the organization, at the same time if there is no customers demand...
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...CASE STUDY ANALYSIS AVON PRODUCTS, INC. Time Frame: 1999-2000 Submitted by; Koseki, Shota C. PROBLEM: • The main problem faced is the lack of experience and expertise by the CEO Andrea Jung where by company significantly lack of innovative strategy to attract customers and achieve organizational goal. Vision • "To be the company that best understands and satisfies the product, service and self-fulfillment needs of women - globally." Mission • The Global Beauty Leader we will build a unique portfolio of Beauty and related brands, striving to surpass our competitors in quality, innovation and value, and elevating our image to become the Beauty Company most women turn to worldwide. The Women's Choice for Buying We will become the destination store for women, offering the convenience of multiple brands and channels, and providing a personal high touch shopping experience that helps create lifelong customer relationships. The Most Admired Company we will deliver superior returns to our shareholders by tirelessly pursuing new growth opportunities while continually improving our profitability, a socially responsible, ethical company that is watched and emulated as a model of success. OBJECTIVE: • To serve families throughout the world with products of the highest quality backed by a guarantee of satisfaction • To render a service to customers that is outstanding in its helpfulness...
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...Avon Products, Inc. – 2013 A. Case Abstract Headquartered in New York City, New York, Avon Products, Inc. competes as one of the world’s largest direct-seller firm, and is the largest direct-seller of cosmetics and beauty-related items. Most of Avon’s sales come from its 6.4 million independent sales representatives (considered independent contractors) that serve in 110 countries. Avon employs 39,100 people and only 4,800 of them are employed in the USA. Avon generates 85% of their revenue from outside of the USA. Avon earned a net income of $517.8 million in 2011, but reported a loss of $38.2 million in 2012. The company has recently slipped in revenue due to currency rates and North American sales with a 13% drop in active sales representative. B. Vision Statement Actual: To be the company that best understands and satisfies the product, service and self-fulfillment needs of women – globally. Proposed: To be the company that provides the best foundation for women by offering a wide variety of products that appeal to any women’s needs and tastes. C. Mission Statement Actual (in summary due to length): 1) Leader in global beauty 2) women’s choice for buying 3) premier direct-selling company 4) most-admired company 5) best place to work and 6) to have the largest foundation dedicated to women’s causes. Proposed: Our mission as a company is to provide a unique portfolio of beauty, fashion and home brands to satisfy women globally. We encourage utilizations...
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...Markets, 2014). There are five types of marketing orientations; production, sales, customer, strategic marketing and social marketing. Production, internationally for Avon is managed by its country managers, who decide what products to sell in their markets (Daniels, Radebaugh & Sullivan, 2011, p. 622). Avon sales its product in the United States and 100 countries around the world (Avon Markets, 2014). The customer is very important to Avon, who the majority being women has been very successful, and that is their target strategy, women, but currently, Avon does have products for men. There were several needs for its customers due culture and age, and Avon wanted to capitalize their efforts. The strategic marketing orientation consists of producing different items to fit the customer’s needs. Avon combined sales, customers and production to sell its products in the United States. Social marketing is used in their campaigns for Breast Cancer and Domestic Violence Programs (Avon Foundation, 2014). Through social marketing, Avon is also using celebrities to help sell its products (Daniels, Radebaugh & Sullivan, 2011, p. 624). Avon depends on its global markets more than it American markets. Avon sells on every continent, except Antarctica and derives most of its sales outside of the United States (Daniels, Radebaugh & Sullivan, 2011, p. 621). Some of Avon’s competitors today are L’Oreal, Revlon, Estee Lauder and Mary Kay and these companies are trying to corner...
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...thomas a . meyer How Great companies Get Started in terrible times Innovate! Innovate! How Great Companies Get Started in Terrible Times THOMAS A. MEYER John Wiley & Sons, Inc. Copyright © 2010 by Thomas A. Meyer. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose...
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