Requlred Informetlon Mary Kay in India You are about to read a short case about

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Requlred Informetlon Mary Kay in India You are about to read a short case about the introduction of Mary Kay Cosmetics to India. It discusses the various elements and challenges of distribution that the company had to consider while entering the Indian market. You will be asked to answer questions linking your knowledge from the chapter to the situation detailed in the case Review the text material on distribution channels and how different channels can affect international marketing. Then read the following short case. When you have finished reading the case, answer the questions that follow. Sheryl Adkins-Green couldn't ask for a better assignment. As the newly appointed vice president of brand development at Mary Kay Inc., she is responsible for developing the product portfolio around the world, including global initiatives and products specifically formulated for global markets. She is enthusiastic about her position, noting that, "There is tremendous opportunity for growth. Even in these economic times, women still want to pamper themselves, and to look good is to feel good. Getting up to speed on her new company and her new position topped her short-term agenda. She was specifically interested in the company's efforts to date to build the Mary Kay brand in India. THE MARY KAY WAY Mary Kay Ash founded Mary Kay Cosmetics in 1963 with her lifesavings of $5,000 and the support of her 20-year-old son, Richard Rogers, who currently serves as executive chairman of Mary Kay Inc. Mary Kay Inc. is one of the largest direct sellers of skin care and color cosmetics in the world with more than $25 billion in annual sales. Mary Kay brand products are sold in more than 35 markets on five continents. The United States, China, Russia, and Mexico are the top four markets served by the company. The company's global independent sales force exceeds 2 million. About 65 percent of the company's independent sales representatives reside outside the United States. Mary Kay Ash's founding principles were simple and time-tested, and they remain a fundamental company business philosophy. She adopted the Golden Rule as her guiding principle, determining the best course of action in virtually any situation could be easily discerned by "doing unto others as you would have them do unto you. She also steadfastly believed that life's priorities should be kept in their proper order, which to her meant "God first, family second, and career third." Her work ethic, approach to business, and success have resulted in numerous awards and recognitions including but not limited to, the Horatio Alger American Citizen Award, recognition as one of "America's 25 Most Influential Women, and induction into the National Business Hall of Fame

Explanation / Answer

1. Which type of distribution channel does Mary Kay use in India?

Direct sellers. Direct selling organization is Mary Kay's the most powerful marketing vehicle which they used in India through recruitment and training of independent sales representatives.

2. A major part of Mary Kay's marketing strategy in India relies on the relationship between

Distributors and consumers. Mary Kay believed that with every sale, there is a personal relationship between the independent seller and client.

3. Although India is a geographically large country, Mary Kay has only regional distribution centers and Mary Kay Beauty Centers in Delhi and Mumbai. This is most likely because, when compared with the rest of the country, they

Are wealthy, populous cities. Delhi, the nation's capital and the second most populated metropolis in India had per capita income of US $1420 and Mumbai, the nation's most heavily populated metropolis had per income of US $2850.

4. if Mary Kay were to open more distribution centers around India to make it easier for its sales representatives to collect their products, it could affect delivery times, warehousing costs, and the cost of its products. This is an example of the ------ of physical distribution activities

Positioning. Location of distribution centers directly impacts delivery times, warehouse costs and product costs.

5. Mary Kay's distribution pattern fits with the growth and optimism of India's consumer classes in part because it directly enables people to

Become entrepreneurs. Independent sales representatives got orders from the clients and purchased products from the company to fulfill those orders.

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