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Harvard Case - Mary Kay China: People and Love

"Mary Kay China: People and Love" Harvard business case study is written by Jean Lee, Liman Zhao, Yunting Lu. It deals with the challenges in the field of Organizational Behavior. The case study is 14 page(s) long and it was first published on : Feb 22, 2017

At Fern Fort University, we recommend that Mary Kay China implement a multifaceted strategy to address the challenges it faces in the Chinese market. This strategy should focus on adapting its existing 'people and love' culture to resonate with Chinese consumers, leverage the power of social media and digital marketing, and build a strong network of independent beauty consultants who are culturally sensitive and well-equipped to navigate the complexities of the Chinese market.

2. Background

The case study focuses on Mary Kay's struggles to achieve success in the Chinese market. Despite its strong brand recognition and successful model in other countries, the company faced significant challenges in China, including:

  • Cultural differences: Chinese consumers have different beauty standards and preferences compared to Western markets.
  • Competition: The Chinese beauty market is highly competitive, with numerous local and international brands vying for market share.
  • Shifting consumer preferences: Chinese consumers are increasingly demanding high-quality, innovative products and personalized experiences.
  • Adapting the 'people and love' culture: Mary Kay's core values, centered around female empowerment and personal growth, needed to be adapted to resonate with Chinese consumers.

The main protagonists of the case study are the Mary Kay executives responsible for navigating the company's expansion into China, including the CEO, regional directors, and marketing team.

3. Analysis of the Case Study

To analyze the case, we can utilize the framework of Organizational Culture and Change Management.

Organizational Culture:

  • Mary Kay's 'people and love' culture: This culture, based on female empowerment, personal growth, and building relationships, has been successful in the US but requires adaptation for the Chinese market.
  • Chinese cultural context: Chinese consumers value collectivism, social harmony, and family ties, which may not align perfectly with Mary Kay's individualistic approach.
  • Cultural sensitivity: Mary Kay needs to understand and respect Chinese cultural norms and values to build trust and create a positive brand image.

Change Management:

  • Resistance to change: Mary Kay's independent beauty consultants may resist changes to the existing business model or cultural values.
  • Leadership styles: Mary Kay needs to adopt a leadership style that is both empowering and culturally sensitive to effectively guide its consultants in China.
  • Communication strategies: Effective communication is crucial for explaining the rationale behind changes and fostering buy-in from consultants and employees.

Other key considerations:

  • Competition: Mary Kay needs to differentiate itself from competitors by offering unique products, services, and experiences that cater to Chinese consumer preferences.
  • Digital marketing: Leveraging social media and digital platforms is essential to reach and engage Chinese consumers effectively.
  • Talent management: Mary Kay needs to recruit and retain talented beauty consultants who are culturally competent and passionate about the brand.

4. Recommendations

1. Adapt the 'People and Love' Culture:

  • Emphasize collectivism and social harmony: Focus on the benefits of teamwork and collaboration within the Mary Kay community.
  • Highlight family values: Emphasize the importance of family and community within the Mary Kay experience.
  • Tailor the 'career path' narrative: Present the Mary Kay opportunity as a way to achieve financial independence and personal growth within a supportive community.
  • Develop culturally relevant training programs: Train consultants on Chinese cultural norms and etiquette to enhance their ability to connect with customers.

2. Leverage Digital Marketing and Social Media:

  • Create engaging online content: Develop content that resonates with Chinese consumers, showcasing product benefits, beauty tips, and inspirational stories.
  • Utilize social media influencers: Partner with popular Chinese influencers to promote Mary Kay products and build brand awareness.
  • Develop a strong online community: Create a platform where Chinese consumers can connect with each other and share their experiences with Mary Kay.
  • Utilize mobile marketing: Develop mobile-friendly content and promotions to reach consumers on their preferred devices.

3. Build a Strong Network of Independent Beauty Consultants:

  • Recruit culturally competent consultants: Focus on hiring consultants who understand Chinese culture and can effectively connect with local consumers.
  • Provide comprehensive training: Equip consultants with the knowledge and skills needed to succeed in the Chinese market, including product knowledge, sales techniques, and cultural sensitivity.
  • Offer mentorship and support: Provide ongoing support and guidance to help consultants build their businesses and achieve success.
  • Foster a sense of community: Create a supportive network where consultants can learn from each other, share best practices, and build relationships.

4. Develop a Localized Product Strategy:

  • Offer products that cater to Chinese consumer preferences: Research and develop products that address specific beauty concerns and preferences of Chinese consumers.
  • Partner with local suppliers: Collaborate with Chinese companies to source ingredients and manufacture products that meet local standards.
  • Develop innovative packaging and branding: Create packaging and branding that appeals to Chinese consumers and reflects their cultural values.

5. Basis of Recommendations

These recommendations are based on a comprehensive understanding of the Chinese market, Mary Kay's existing strengths and weaknesses, and the principles of organizational culture and change management.

Core competencies and consistency with mission: The recommendations align with Mary Kay's core values of female empowerment and personal growth while adapting them to the Chinese cultural context.

External customers and internal clients: The recommendations prioritize meeting the needs of Chinese consumers and empowering Mary Kay's independent beauty consultants to succeed in the market.

Competitors: The recommendations focus on differentiating Mary Kay from competitors by offering unique products, services, and experiences that cater to Chinese consumer preferences.

Attractiveness: The recommendations are expected to enhance Mary Kay's market share and profitability in China by leveraging the power of digital marketing, building a strong network of culturally competent consultants, and adapting its core values to resonate with Chinese consumers.

Assumptions: The recommendations assume that Mary Kay is willing to invest in the Chinese market and adapt its business model to meet the specific needs of Chinese consumers.

6. Conclusion

Mary Kay's success in China hinges on its ability to adapt its 'people and love' culture, leverage digital marketing, and build a strong network of culturally competent independent beauty consultants. By implementing the recommended strategies, Mary Kay can overcome its current challenges and achieve sustainable growth in the Chinese market.

7. Discussion

Alternatives:

  • Exiting the Chinese market: This would be a drastic measure and would result in significant financial losses.
  • Maintaining the current strategy: This would likely lead to continued struggles in the Chinese market as Mary Kay fails to adapt to the changing landscape.

Risks:

  • Cultural misunderstandings: Failure to fully understand and respect Chinese cultural norms could lead to negative brand perceptions.
  • Resistance to change: Mary Kay's independent beauty consultants may resist changes to the existing business model or cultural values.
  • Competition: The Chinese beauty market is highly competitive, and Mary Kay may struggle to differentiate itself from other brands.

Key Assumptions:

  • Mary Kay is committed to investing in the Chinese market.
  • Mary Kay is willing to adapt its business model and cultural values to meet the needs of Chinese consumers.
  • Chinese consumers are receptive to Mary Kay's brand and products.

8. Next Steps

Timeline:

  • Year 1: Implement cultural adaptation strategies, develop a localized digital marketing plan, and launch a pilot program to recruit and train culturally competent consultants.
  • Year 2: Expand the pilot program, refine the digital marketing strategy, and introduce new products tailored to Chinese consumer preferences.
  • Year 3: Evaluate the program's success, expand operations across China, and continue to adapt and innovate to maintain a competitive edge.

Key Milestones:

  • Develop a comprehensive cultural adaptation plan.
  • Launch a dedicated Chinese website and social media accounts.
  • Recruit and train a network of culturally competent independent beauty consultants.
  • Introduce new products tailored to Chinese consumer preferences.
  • Monitor and evaluate the program's success.

By following these recommendations and taking decisive action, Mary Kay can overcome its challenges and achieve success in the dynamic and lucrative Chinese market.

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Case Description

Mary Kay (China) Cosmetics Co., Ltd. (Mary Kay China) was one of China's leading direct-enterprises in skincare products and cosmetics. In September 2015, the president of Mary Kay China was considering how best to continue to grow the company in the face of increasing e-commerce. The parent company and all its subsidiaries ascribed to the mission of enriching women's lives; its guiding principles emphasized relationships and connections between people. Mary Kay China's development was a testament to its success as a people-oriented culture that contributed to the environment and society. However, the Internet era had raised concerns about whether the connections among the company's people were strong enough to succeed against competitors who maintained a broad network developed through the Internet. Should Mary Kay China expand into e-commerce, or would relying on the Internet undermine the principles and values that grounded the company?

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