Mistine Cosmetics
Presentation by: Yvette Getty & Tracy Baker
Past & Current Situation
Purpose & Content
The purpose of this report is to inform and highlight areas of success and areas of concern in Mistine. A SWOT analysis will show these such areas.
- Product Line
- Manufacturing supported by certifications and adherence to Good Manufacturing Principles through the FDA
- Low return rate
- Satisfaction guarantees
- Quality of product
- Global expansion
- Pricing strategies need to be addressed
Past & Current Situation
- 1991 - Better way launches Mistine Product Line
- Direct selling - primary means of distribution
- 1997 - Direct selling becomes the preferred method of selling cosmetics by consumer
- Sales:
- Previous advertising campaign
- Employee turnover rate 200%
- Employees - Mistine a second job
- Competitors
- Advertising/Positioning:
- Word of mouth Strategy
- Dr. Deerojanawong - gave credibility
- Advertising 10%-70% enforced
- perception of direct selling
SWOT Analysis
Conclusion - Request for Action
- Strengths
- Weaknesses
- Opportunities
- Threats
- Sales Strategy
- Advertising/Position Strategy
- Distribution Strategy
- Strategic Marketing
- Pricing Strategy
Sales Strategy
- Minimize competition
- Effectively demonstrate product through direct sales/presentation
Distribution Strategy
Strategic Marketing
- Direct channel
- Meet demands of consumer
- Customer service level
- Promote customer loyalty
- Promote confidence in brand image
- Market Expansion
- Ethnic groups, genders, demographics
- New Product Development
- Meet consumer demands
- Appeal to new target markets
Pricing Strategy
Opportunities
- Uniform delivered pricing
- Market expansion to International markets
- Perceived value pricing
- Meet consumers preferences/expectations
*Must assure it meets profitability requirements
Strengths
Questions
Advertising/Positioning
- Huge market for salespeople
- Expansion on a world wide scale
- New Product for different races/genders
- Thailand consumers prefer direct sales operations (simple/efficient)
- Moneyback guarantees boost confidence in products
- Strong customer loyalty
- Market to upper/middle class
- State of the art technology to produce product made to withstand the climate
- New Products
- New Markets
- Promote brand image
- Quality Products
- Mass marketing
- Appealing packaging and prices
- Brand recognition
- Benefits for salespeople
- Products created for Asian women
- Number one in market share
Threats
Weaknesses
- Current competitors in the industry, Avon, Amway, etc
- Foreign entrants into the competition
- Political risks of entering new foreign markets
- Pricing impact by Tai Law with wage increase mandates
- Motivation for salespeople
- Employee turnover
- Perception of product quality
- Heavily dependent on direct selling channel
- Perception of female only products
- Loss of Influential leader
- Expected high cost of advertisement
Assumptions
4 P's
Marketing Strategies
Mistine will:
- Hire well-qualified sales people
- Increase exposure of new and existing products
- Increase loyalty and confidence
- Commit to satisfying customer's needs/wants
- Expand its product line and maintain sales of current product line
- Assure its business practices are transparent and ethical
- Price
- Product
- Promotion
- Place
- Sales
- Advertising & Positioning
- Distribution
- Strategic Marketing
- Price & Product
Price
Promotion
Sales Management
Place
Advertising & Positioning
Strategic Marketing
- Salesperson recruiting
- Job enrichment & promotion
- Mistines Diamond lipstick campaign donates a portion of the revenue to the Thailand's foundation for the blind
- Mistines very first TV campaign raised brand awareness within two months from 10% to 70%
- Media mix
- Reach & Frequency
- Price at the beginning for beauty products was $3.
- Price was raised to around $6 when Mistine saw that the economic recession was softening
- Market expansion
- New product development
- Middle Eastern
- European
- Asian
- African
Product
Distribution
Price
- Skincare
- Body care
- Makeup
- Fragrance
- Personal care
- Uniform delivered pricing
- Perceived value pricing
- Direct channel selling
- Customer service level