Mistine Cosmetics

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Strategic Case 6: Direct Selling Mistine Cosmetics in Thailand

1.Is it possible that having a retail outlet creates channel conflict? Explain.

I think that it is highly possible that by having a retail outlet it creates channel conflict among the individuals that are doing the direct selling. The people that are doing the direct selling may feel that they are at a disadvantage when trying to sell there products because there is a local retail outlet down the street. The local retail outlet may be driving business away from the people that are trying to meet quota every two weeks. By having this type of channel conflict, sales people might feel unmotivated in trying to sell the cosmetic products. As a result, the turnover will climb even higher.

2.From a customer’s standpoint, what are the advantages or disadvantages of having a retail outlet? What about from the company’s standpoint?

From the customer’s standpoint I think the biggest advantage of having a retail outlet is the convenience factor and not having to feel pressured into buying something. Often time’s sales people can come across as being to “pushy” or may make the customer feel uncomfortable. For those individuals who like to shop on their own and like to make informative buying decisions on their own, they can go down to the retail outlet to purchase their products. From the company’s standpoint I think that having a retail outlet is profitable, but at the same time it may drive direct selling employees crazy.

3.How would Mistine’s use of mass media advertising influence the performance of its sales force?

I think that Mistine’s use of mass media advertising has been extremely effective and influential for the employees that make up the sales force. By having many of their products promoted by popular celebrities, it makes selling much more easier face to face. I think that this helps out dramatically when attempting to sell to the teenage...
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