MRKT 5000 Week 6 Case Analysis Assignment

MRKT 5000 Week 6 Case Analysis Assignment - DIRECT SELLING...

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DIRECT SELLING MISTINE COSMETICS IN THAILAND Lakisah Mikell Week 6 Case Analysis Assignment MRKT 5000
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Case Summary Mistine Cosmetics is a company in Thailand that specializes in selling makeup, skin care, fragrances, and other personal care products to a mostly Asian demographic. In addition to their one retail store located on the outskirts of Bangkok, Mistine operates the largest cosmetics warehouse in Southeast Asia. The company targets women who have a significant amount of education and earn about $125-$200 monthly in U.S. dollars. Their target market has also become part of their workforce looking to earn extra income. Mistine utilizes the single-level direct selling approach to sell their products. They also use mass media advertising to further reach more markets in the Asian region. Through their shorter selling periods, Mistine is hoping to increase their sales while decreasing their employee turnover rate. With achieving their successful sales, Mistine hopes to expand into other international markets and duplicate the same successful sales. Key Marketing Terms Retailer – An organization that purchases products for the purpose of reselling them to ultimate customers. Retail Outlets – Shopping centers characterized by featuring discount and factory outlet stores that are located outside of metropolitan areas. Direct Selling – Marketing products to ultimate consumers through face-to-face sales presentations at home or in the workplace. Case Questions 1. Is it possible that having a retail outlet creates channel conflict? Explain.
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Having a retail outlet wouldn’t necessarily create channel conflict because the manufacturers own the stores and make special efforts to avoid conflict with traditional retailers of their products. I think that the channel conflict comes in when you’re dealing with traditional retailers. If you’re a manufacturer of a product and you’re considering having a retail outlet, you’re essentially in control of how wide of a product mix you want to offer and how deep you want your product lines to be within your outlet store. Consumers would be able to have access to the majority of your inventory.
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MRKT 5000 Week 6 Case Analysis Assignment - DIRECT SELLING...

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