Mary Kay Cosmetics

4552 Words19 Pages
Mary Kay Cosmetics has been quite successful in reaching the target audience i.e. the women in the domestic market. In the United States, Mary Kay Cosmetics has annual sales of around $890 million, out of the estimated $5 billion direct selling cosmetics industry - a 17% market share. The company achieved this success by positioning itself as an organization that embodies ideals and values that women can aspire to become. The company basically personified itself as a woman that is caring and successful role model for women. This strategy has been particularly successful in increasing sales and establishing presence in the domestic market, but Mary Kay Cosmetics has not been able to transfer this success to international markets. The company has been selling products overseas for over 15 years, and the share of international sales have been at a dismal 11% of total sales compared to its rivals. The failure of Mary Kay Cosmetics in replicating its domestic success in foreign markets is the primary issue that will be addressed in this case. The analysis of this case will help us understand the process Mary Kay Cosmetics took to internationalization of the firm, reasons why the approach the company took to internationalization hasn't worked, and why its competitors are more effective in foreign markets. The case will also evaluate the processes and strategies companies need to consider and implement while internationalizing the firm which would ensure that that they are entering the right market. One of the advantages of Mary Kay Cosmetics is that it espouses a very strong entrepreneurial culture. Mary Kay Cosmetics attracts women who are not only interested in looking glamorous and teaching others on how to take care of their skin, but also those who are interested in being independent, successful, and having their own businesses. Mary Kay provided them platform to
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