Mistine: A Case Study
Mary Jo Barbato
March 5, 2010
Mistine is poised for success in its attempt to continue as Thailand’s front runner in the direct-selling cosmetics industry. Being number one in a small group of competitors is a precarious, but beneficial position. As leader, Mistine will continue to be in control of its own destiny. The current levels of market share and growth are theirs to lose. Their quality commitment and customer satisfaction guarantee make them a rival for any competition. It’s interesting to note that this level of “value-for-money” is a core aspect of Mistine’s corporate culture, and has been since the beginning. With a 70 percent brand recognition rating, Mistine is on its way to even greater dominance in the Thai market. For a company leading the pack of competitors, this sounds like a no-lose situation. But, it is essential to recognize what opportunities Mistine will have to risk as well as the weaknesses and threats from competition they must overcome. Consideration of each will follow, but they are summarized below in Table 1.
Current #1 Market Share
Quality of product
Alliances with advertising partners
Use of technology
Teenage market share
75% have never bought thru direct sales
Loss of influential leader
Expectation of high advertising budget
Turnover of sales representatives
U*Star’s recent market share capture
Competitor’s use of technology
As shown above, Mistine is in a strong position in the cosmetic direct-selling market. But, what can they do to continue in this spot and to increase their stronghold? They’ve already begun to make smart choices such as; joining forces with promotional agencies, forming alliances with telecommunications firms and expanding their product line. Since they were the first direct selling firm to use mass media marketing it is imperative that they retain their presence in this area. The partnership with RS Promotions will help solidify that position. Searching for ways to keep their products affordable, or priced competitively, was a main reason for the collaboration with DTAC cellular. This innovative way to both save on expenses and incorporate technology into the process were excellent means to further reinforce their presence. An added benefit of introducing technology is the ability to reach the teenage market. This group communicates exclusively via electronic mediums and shouldn’t be expected to purchase anything through conventional channels. Since only 24% of the population has purchased a product through direct sales it is a smart move to jump on the opportunity to offer a variety of new products in order to appeal to a wider customer base. As we’ll see, the competition offers a diversified treasure trove of products beyond cosmetics. Anytime a company loses an influential and credible leader it is paramount to maintain the company’s connection with that leader. Although Mistine lost its founder, Amornthep Deerojanawong in 2000, it appears that with his son at the helm, they are continuing his vision. It will be important to keep the founding principles of the company in place after a change in leadership so customers and employees feel secure of the company’s direction and future. Even though Mistine arose as an innovative leader through mass media advertising, they have set themselves up for high expectations from both internal and external sources. Everyone will be looking to them for the next big advertising campaign and they may find themselves having to spend more dollars to exceed or even meet those expectations each time. By going for bold, expensive campaigns from the start they now have a precedence to maintain. This will be a challenge to both the marketing and financial teams. The large turn over rate...
References: Thailand.com. Retrieved on March 5, 2010 from the website: http://www. thailand.com/exports/html/thailand_brand.htm
Vibboonchart, Nalin. August 22, 2009. Better Way shifts focus to boost revenue.
THE NATION. Published on August 22, 2009. Retrieved on March 5, 2010 from the website: http://www.nationmultimedia.com/2009/08/22/business/business30110418.php
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