This presentation is on Mary Kay make up brand. How the brand struggled in Asian market considering the dynamics of both China and Japan. This will let you know how to adopt a certain market strategy. The make up brand actually struggled to make its presence in asian market and succeeded!

1. • Abubakar Shahid
• Adil Razaq
• Hassan Ahmad
• Fahad Fayyaz

2. About Mary Kay
• Founded in 1963 by Mary Kay Ash as "Beauty by Mary Kay,"
Mary Kay is now one of the largest direct sellers of skin care
and cosmetics
• Mary Kay Inc. is an American privately owned multi-level
marketing company
• Mary Kay's products are sold in more than 40 markets around
the world
• Its global independent sales force exceeds 3.5 million.
• According to Forbes, currently Mary Kay’s revenue is about
$3.5 Billion

3. Background Of Case
• International sales of Mary Kay in 1992 represented 11% of
the total $1 Billion sales
• In contrast, there competitor Avon derived 55% of its $3.6
Billion retail sales
• There were two markets in Asia for Mary Kay: Japan & China
• Japanese market was mature and lucrative where direct
selling of cosmetics was accepted
• Chinese market was growing but the market was unknown
with less PPP

4. Skin Care Market in Japan
• Japanese market was mature but lucrative
• In 1992, over 50% of 51.8 Million women of Japan were
working, this was a plus point
• Annual cosmetic expenditure on cosmetics in Japan was $260
per house hold
• 40% of cosmetics were sold to women aged between 20-30
years
• Economic recession created more employment so more part
time jobs of women were expected
• 1993 was an opportune time for Mary Kay to launch in japan

5. Products & Distribution channels in
Japan
• Skin care products accounted for almost 40% of all cosmetics
sold in 1993 in Japan
• Products that were customized and concentrated for Japanese
market were Foundation Cakes and Whitening Products
• Shiseido, Kao, Pola and Kobeysashi Kosey were main local
competitors in Japan
• Till 1992, foreign manufacturers were successful for selling
their products in Japan
• General Distribution in Japan was done by Distributorships,
Franchise system and Door to Door Selling

6. Skin Care Market in China
• Chinese population was predicted to grow from 1.1 Billion to
1.5 Billion from year 1992- 2020
• Out of 310 Million urban population, 156 Million were
females
• China was one of the biggest country with 22 provinces
• Chinese women were entering the corporate world as the
country was having an open gate policy, 87% of Chinese
women were employed
• Brand name was a big concern for Chinese women who would
pay up to four times to enjoy and international brand than a
local brand

7. Products and Distribution Channels in
China
• Products in China were mainly segmented in two parts: Skin
care and Make Up Category
• In China, consumers were mostly purchasing cosmetics from
stores
• In stores, a lot of brands were displaying their products which
was really confusing
• International products were given separate racks in every
store
• Special racks were taken for the display of Mary Kay products,
this differentiated from the rest

8. Marketing Mix for Mary Kay in Asia
Product-
• Developing a product in Japan would require three times
more resource than in China
• Mary Kay was of the view that their current outline of
products was global, so no change will be made
• Mary Kay emphasized on teaching skin care and glamour
• Mary Kay was entering the markets with both Skin care and
Beauty products

9. Marketing Mix for Mary Kay in Asia
Pricing-
• Products sold in Japan was twice the rate as that in China (
Chinese were having low PPP)
• Chinese market was expected to break even within 24 months
while Japan would take 3-4 years
• Startup cost in china was low as only racks in stores were to
be rented mostly
• The pricing was set keeping in view both domestic and
international competitors

10. Marketing Mix for Mary Kay in Asia
Promotion-
• Public relations, print advertising & service workshop as to
“Teach” were to be organized
• Consultant recruitment programs were to initiated
• Advertising cost in Japan was expected to be $3 Million/ Year
while in China it was expected to be $100,000 for first Three
Years
• In Japan, Mary Kay was planning to have a Toll Free number
while also developing travelling showrooms in suburbs

11. Marketing Mix for Mary Kay in Asia
Placement-
• May Kay’s product positioning was mixed between Skin
Treatment and Glamour provider
• Mary Kay is confused about the age bracket whom they are
serving & basis of differentiation
• In Asia, Mary Kay was trying hard to enter as a teacher of
glamor and care of skin by introducing workshops and stuff

12. Recommendations
• To meet the diverse needs of the global consumer, Mary Kay
customizes its color product lines by region
• Mary Kay should design their product according to the
standards of the Chinese consumer behavior
• Mary Kay can extend its further international expansion in
Asia/Pacific region after the successful entry into Chinese &
Japanese market
• Company also focuses Research and development of new
product for different region according to consumer’s
preference

13. Facts about Mary Kay
• Mary Kay is a fortune 500 company
• Nearly 300 independent national sales distributors have
earned more than 41 Million in commission
• Mary Kay was noted as one of the top companies in online
sales by Week Magazines, it’s in top 10 most viewed beauty
sites
• More women in Mary Kay earn around $100,000 than in any
other company
• Mary Kay’s product is sold in 35 global communities
• The Mary Kay compact is the most customizable compact with
over 18 Million possible color combinations

14. Thank you for attention!