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Friday, April 5, 2013

Mary Kay

bloody shame Kay is one of the leading direct selling cosmetics companies in the world. It sell a range of skin c atomic number 18, personal lay down by, and cosmetics products through more or less 275,000 independent gross revenuepeople worldwide. Cosmetics market in the U.S is developed and highly competitive.

In 1993, Mary Kay was facing a mature U.S. cosmetics market, an increasing bend of competing direct selling organizations and a loss of their market share. At the same time, Mary Kay?s international sales were modest. In contrast, other direct selling companies have been successful in international markets such as Avon and Amway. Base on that fact, we underside assume that Mary Kay elements of culture, philosophy, product line and marketing programs are easily transferable to the international markets.

Mary Kay was incorporated in 1963 in Texas. The company grew rapidly led by the attractive personality and strong leadership skills of Mary Kay Ash. It has estimated retail sales of $1 billion and net company sales of $624 one thousand million in 1992. The companys powerful culture was based on oblation unlimited opportunities for women in business, coupled with a distinctive hire and recognition plan.

This industry uses two approaches to direct selling. The repetitive one-on-one order is using by Avon and the Party pan method is used by Mary Kay. The company manufactured 225 comport keeping units and they mainly sell 46% of skin care system.

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Mary Kay has four basic levels of independent contractors and their promotion is all in all on performance: either volume sales or recruitment of new salespeople.

Mary Kay does not have a global international strategy. In contrast, the international expansion had been opportunist and on a case-by-case basis. An international division sure adequate attention but duplicated functions and had fewer resources available.

My recommendation is that Mary Kay should choose the Chinese market rather than...

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