Essay范文，Chapter 1 Introduction
1.1 Research aims
The aim of this study is to present an in-depth research of the opportunities whether or not there is a promising development for Mary Kay who plans to extend its business beyond the seas and commences on international involvement in the analysis of macro environment, micro environment, internal environment and thereof in China, and SWOT, PESTEL, PORTER FIVE FORCE, 7PS have been identified as in China.
This study is to reach the following objectives: explore the direct marketing activities of Mary Kay in Chinese cosmetic market, explore the impact of Chinese culture on Mary Kay’s promotional strategy, 指导essay explore the impact of the status of Chinese women’s on Mary Kay’s promotion strategy and to analyze the problems existing in Mary Kay’s promotion strategy and make recommendations for it in view of assessment worked out above.
Firstly, This study will introduce business description, which includes: basic information of Mary Kay, cosmetics industry in China, major competitors of Mary Kay in Chinese cosmetic market, the concept of direct selling and its situation in China. Secondly, it will review some literatures which are related to the research aim and objects. Thirdly, it is to focus on PESTEL abroad and at home like Chinese culture and the role of Chinese women which related to Mary Kay’s marketing strategy. it researches the problems by using the business research methods (both quality and quantity). Fourthly, this study will also use some models such as SWOT to analyse Mary Kay’s past and future in order to make the ideas more comprehensive. And finally, according to what has been stated above, it is to analyse and discuss the findings: the methodology, SWOT, 7PS, PESTEL, the Mary Kay culture, and the new broad way of Mary Kay, and is to make a conclusion to identify the opportunities for Mary Kay’s international involvement in China.
1.4 Brief introduction
1.4.1 Basic Information of Mary Kay
Mary Kay Inc. is located in Dallas, Texas of the United States, founded in 1963. 45-year-old Mary Kay Ash resigned due to dissatisfaction with American society’s unfair treatment to the employment status of working women, then she decided to set up a company selling a kind of cosmetics that quality and value are unquestioned. The most important initial purpose is to offer women to have tremendous opportunities. So in the September 13, 1963 Friday, she created a small direct sales cosmetics company. With 5000 dollar’s initial investment, started in 46-square-foot store, she and her son, Richard, and nine beauty consultants began the career. After 43 years of development, the company now set up branches in 44 countries and regions in the world and the global annual sales are more than 3.6 billion dollars, owing 1.5 million beauty consultants. The company was rank two-time in U.S. "Fortune" magazine, being elected as "America’s 500 Largest Companies; And twice into the U.S. "Fortune" magazine, nominated as "the United States 100 Best Companies to Work for the value of employees"; It also has awarded the American first cosmetics brand for 9 consecutive years and the national top 10 women’s employment company. It is world’s leading enterprises contains most female millionaires. It has 9 product lines and 20 kinds of products such as skin care, cosmetics, sun protection, perfume and so on. (Mary Kay, 2009) As a cosmetic direct sale company, its products are sold in more than 35 markets worldwide on five continents, and the Company’s global independent sales force exceeds 1.8 million in 2008. (The Independent Sales Force, 2009)#p#分页标题#e#
Mary Kay Inc. is a leading e-commerce businesses company and one of the largest consortiums that was mostly respected, Mary Kay lady herself was also considered to be the most successful female entrepreneur (Mary Kay Inc., 2003). Founded just several years ago, the company’ branch in China has already a 10 percent market share here, having recorded 8 billion won in sales last year through 20,000 direct sales representatives (Steven Oberbeck, 2009). As its brand name gets established, the firm expects to nearly double its sales to 1.5 billion. The secret of Mary Kay success is its unique approach to business, both in philosophy and business strategy. The above figures show the operation in the marketing strategy. The company has made achievements, which fully proved a good marketing tool is the direct factors to promote the development and growth of the company. Recently, Mary Kay (China) Cosmetics Co., Ltd. was nominated the 2008 annual national industrial key sectors "effectiveness top ten" corporate, 6th reelection as the industry first (Lu Xu, 2008). Now, Mary Kay (China) is one of Mary Kay world’s largest direct selling skin care and color cosmetics products subsidiaries in China. With China’s accession to WTO, the WTO commitments are fulfilled gradually and there have more and more relaxed environment for foreign investment. A decline of tariff adjustments has led to lower costs of importing of foreign cosmetics companies. They have more opportunities to develop the Chinese market. The rapid growth of China’s economy also has increased their investment and confidence. Market capacity is growing at a rate of 20% per year in the past 20 years (Beth Negus Viveiros, 2009). There are still at least 50 million market capacities in Chinese cosmetic industry（Development of China’s Cosmetics Market，1999）. Chinese cosmetics market offers enormous business opportunities and expects potential development.
指导essay1.4.2 Cosmetics Industry in China
In the past few years, many countries and regions of the world are going through economic recession, led to the negative growth in the global cosmetics, but with the gradual recovery in Asia-Pacific region, and economic situation shows a strong growth trend making the growth after the past two years in the global cosmetics market. According to "the international market tracked" (MTI), the statistical report shows that fragrance products were influenced by the economic downturn in the recent international market, which were witnessed a serious decline in sales (2009 Forecast of China Cosmetics Market Research Report, 2008). But other cosmetics sales, especially make-up product sales, continued to show growth in recent years. An average annual growth rate of China’s cosmetics market sales is about 23.8%; even the highest is up to 41%, with growth rates far higher than the average growth rate of the national economy（Development of China’s Cosmetics Market，1999）. Sales of China’s cosmetics market ranks second in Asia, eighth in the world and the number of national cosmetics manufacturers has been 4000(China Market, 1994). Up to now, the number of cosmetic manufactures, whose annual sales are more than billions has more than 50 in the cosmetics industry. It is anticipated that by 2010, annual sales of cosmetics market will be up to 800 billion Yuan, about 12.9% annual growth. (Trade intelligence network of China, 2008)#p#分页标题#e#
1.4.3 Major Competitors of Mary Kay
The strategy of Avon, Amway and Mary Kay adopt direct selling, of course, some people believe that the model of direct selling form a common competition of three sides in cosmetic market in china. And such competition has a large market basic, for
Chinese cosmetic market has a huge capacity and value. Avon, Amway are also the companies that entered the china early and their selling strategy also set a good example for the later companies. Meanwhile, the competition engenders not only in the method every corporation adopted which their feature are seem to be similar, but also in some special facet, that is, the core component of each competition, including culture and service, which will be demonstrate later. But for business model of Mary Kay, it offers Beauty Consultant to consumers, which can communicate with beauty consultant face to face and give the formula, even, its after-sales service is enthusiastic.
"High-quality, leading technology, diversity, designed for Asian women" is the heart of Avon’s product guiding ideology(Avon Legend,1886). Its unique Asian skin development center set up a department to do research and develop particularly suitable cosmetics for Asian skin. In order to meet the different shopping habits of customers, Avon China quickly has opened up a wide range of shopping channels, and has completed a full range of penetration of the Chinese market – there are over 6000 stores of Avon in China and nearly 1,500 Avon counters in major shopping malls, more than 300 warehouse-style Avon counters, there has already opened an online shopping service. (James W. Camerius and James W. Clinton, 1993）
More about Amway Corporation, Amway was founded by Rich Devos in 1959, it has Large-scale production of daily goods, company’s product has five series and over 450 kinds to meet the everyday needs of consumers comprehensively, such as nutrition health food, cosmetics, personal care products, home care products and so on. (Amway Global Home) In the past 40 years, Amway actively committed to improving the quality of life of its consumers at the same time achieved its own rapid development. Amway Corporation has successfully penetrated the China market, whose unique direct selling model and marketing strategy bring the inevitable fresh breath to the Chinese market, Amway regards the quality as its life before it entered into Chinese market, and regards the research on new products as its cornerstone, regards sales representative and special stores as its backbone, at the same time, creates a profound environment through doing public welfare and communication. Of course, the successful entry into the target market does not mean that the successful occupation of target markets. At present, the Chinese government is only allowed Amway Corporation developing its business in a number of coastal cities, such as Guangdong and Fujian (China Market, 1994). Whether or not Amway’s direct selling will be successful in the Chinese market, it still needs some time. However, in any case, a careful analysis of Amway direct selling is very useful for Mary Kay’s marketing strategy.#p#分页标题#e#
1.4.4 Concept of Direct Selling and Its Situation in China
As it is known, direct marketing has become an important content of promotion policies in China and it is always an effective force to promote the advance of economy. Direct selling (Ronald A. Bernstein, 1984) is a retail channel for the distribution of goods and services. At a basic level it may be defined as marketing and selling products, direct to consumers away from a fixed retail location. A text book definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs."(Michael A. Belch George E. Belch). This study will evaluate Mary Kay’s promotion strategies in China from the aspect of direct selling. Direct selling developed in China in 1995; its annual turnover in China exceeded 100 million. So in 1995, 1996 and 1997, direct selling has experienced a more glorious period in Chinese market. But in 1997, changes emerged in market of direct selling, at that time the market was completely chaotic. In April 1998, the Chinese government introduced a policy which made direct selling completely withdraw from the market. All business of direct selling of foreign multinational corporations in China has been stopped. This is a fatal blow for the development of direct selling in China. The early stage when Mary Kay entered into China was also the hardest time when direct selling facing a beating in China. In April 1998, the Chinese government introduced a policy which made direct selling completely withdraw from the market. All business of direct selling of foreign multinational corporations in China has been stopped. This is a fatal blow for the development of direct selling in China. The early stage when Mary Kay entered into China was also the hardest time when direct selling facing a beating in China.（The Direct Selling Revolution, 1993 ）
1.4.5 Chinese Culture which Related to Mary Kay’s Promotion Strategy
Ethics and morality as an essential component are very important in China’s feudal culture, which has been a strong concept of male chauvinism, which not only affect women’s development, but also seriously hindered the progress of society（Gilles Lipovetsky，2000）. On the one hand, Chinese culture emphasizes relationships, which is convenient to the launching of direct selling; besides, Chinese culture emphasizes emotions much more than benefits, which is not conducive to direct selling(Trade intelligence network of China,2008). So, the traditional cultures that have exerted the influence on the Chinese women totally give a chance to link the strategy of Mary Kay and make it success. Because the notion that emotion and relationships mentioned above function on the selling and its marking operation, thus, in technological modern society, the concept of modern women that transforms with the change of culture has conversed in order to promote the role of Chinese women. This conversion gives Mary Kay an opportunity to develop its business in China. Mary Kay promotes its corporate culture, makes Chinese women more self-confident, and this corporate culture is deeply emerging into the Chinese culture, that is a adapt way to make it possible to go along with the success.#p#分页标题#e#
In China, Mary Kay also engaged actively in social activities of women self-taught and cooperated with the Shanghai Women’s Federation in two consecutive years to support women’s contributions in training, retraining and other activities for Chinese women. In 2001, the company with China Women’s Federation established "Mary Kay Women’s Venture Fund" as an aid program of a mainly urban laid-off workers and rural poor women, aimed at funding support for laid-off workers and other poor women. (Mary Kay Inc. 2003)
指导essay1.4.6 The Role of Chinese Women which Related to Mary Kay’s Promotion Strategy
It will introduce some special services that Mary Kay has kept for a long time, and they will enhance the reputation of the company. And this service promotes the role of women in traditional definition. Women have equal rights and social status as men in work and life. This is a big change in decade’s year compared with the traditional role that women can only obedient to the men. Especially in China, the root of the idea is that women is inferior or in a low status both in family and society. This dissertation will also explore whether Mary Kay’s direct selling strategy can take advantage of the change in the role changing when Chinese women’s development was reflected in the promotion strategy of Mary Kay.
Supporting female entrepreneurs will help Chinese women to improve the economic status, and the consequence that the market strategy brings really lead to some large of changes in the status of Chinese women. So, this is contradictory with the traditional role of Chinese women that they concern more about their families than themselves. Of course, this is also a distinct aspect that will be explained why the role of change of the Chinese women is related to the development of Mary Kay, for its purpose is to change women. That is a not a coincidence but a introjections of the strategy. This study will explore whether Mary Kay strategy of supporting female entrepreneurs can get Chinese women’s response, whether it can meet Mary Kay’s goals of creating a good corporate image and achieving a good marketing performance.
1.5 Conclusion of Introduction
Every coin has two sides; Mary Kay’s marketing strategy is also inherent in the success and shortcomings. With the analysis, this will be a corresponding comparison with the status quo of the Mary Kay business and marketing strategy, and also do some explores on the existing problems of Mary Kay, then make some constructive comments.
The development of the Chinese cosmetic industry experienced totally different time and model, which need to ensure that the changes cannot fetter but promote the development speedy. At the same time, The American financial crisis has triggered a global financial crisis, many businesses were affected except the director selling market, we can acknowledge that the direct selling is stepping in to the people’s daily lives, and it will be more and more normalized and accepted by more and more people. The direct selling will be the most growth potential trend. Moreover, the growth of the Chinese women’s statue and their thoughts about themselves will also be a potential power to the terms developing in China. However, we have to focus on the kinds of competition factors, the more opportunities there, the more competitors we have to be compared with. From the Amway to the AVON, our give us threats and the precious experiments. That is what I want to illustrate in the follow chapters. The problem will focus on some stations related to the cosmetic market in China，the author will give a comprehensive statement on the competition and opportunity the Mary Kay faces up. From these researching the study will illustrate the result in decent way in the follow#p#分页标题#e#
Steven Oberbeck (2009) Utah Woman a Star in Pink, Sequence Inc., Available at: http://www.sequence-inc.com/index.php?option=com_content&view=article&id=203
Mary Kay Inc. (2003) Fact Sheet, Mary Kay Inc., Available at: http://business.baylor.edu/Richard_Easley/CB%20Articles/marykaycosmetics.htm
Lu Xu (2008) Talking about the Mary Kay Marketing Strategy, China: KEJI JINGJI SHICHANG
Trade intelligence network of China (2008) China’s cosmetics market research analysis report, Available at:
James W. Camerius and James W. Clinton (1993) Avon Products Inc. : Developing a global perspective, Available at:
Ronald A. Bernstein (1984) Successful direct selling: how to plan, launch, promote and maintain a profitable direct-selling company, Media Studies: A Reader, pp.119-120, University of Michigan: Prentice-Hall
Beth Negus Viveiros (2009) Mary Kay’s Rhonda Shasteen Works on a Brand Makeover, Available at:http://directmag.com/casehistories/0109-shasteen-works-makeover/Mary Kay (2009), Available at: http:// www.marykay.com/, [19 December 2009]
The Independent Sales Force From (2008), Available at: http:// www.marykay.com/content/company/images/2008_cpk_isf.pdf/, [19 December 2009]
Gilles Lipovetsky (2000) The Third Category of Women
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Trade intelligence network of China (2008) Media Studies: A Reader, pp.378-499, University of Michigan: Prentice-Hall
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