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Mary Kay Cosmetics Asian Market Entry

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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 markets? Answer in terms of the following: • Compare Avon’s international sale as a % of total revenue vs. MKC. Using the information in your case study as of 1993, make a chart (similar to a country comparison chart—complete with a third column “Implications for MKC’s Marketing Strategy”, comparing Avon to MKC in terms of Revenues, Non-U.S. revenues, Products adopted for non-U.S.

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