Strategic Case
Direct Selling Mistine Cosmetics in Thailand. 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.
From a customer’s standpoint, what are the advantages or disadvantages of having a retail outl
...et? 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.
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 population.
Many teenagers are influenced by popular celebrities and what they do. Should Mistine’s management expect to change marketing strategies when the company enters new international markets such as Hungary and Russia? Explain. I don’t think that Mistine management really needs to change any of their marketing strategies when entering international markets.
All they really need to do is make their strategies culture specific. By that I mean they need to research the likes and dislikes of the target populations in whatever international markets they may want to enter.Since Mistine has already had success in markets like Cambodia and Laos, one can clearly see that their marketing strategy is effective and efficient when operating in other countries. A big part of Mistine’s success is due to its affordable prices, which matches the income of the people in those different markets. In what ways does the single-level direct-selling approach affects its turnover rates? Explain.
The single-level direct-selling approach is influenced by the motivation of the employee attempting to the sell the product.The more sales a salesperson makes, the more income he or she receives. By having this type of approach it affects the company’s turnover rates dramatically. Often times by accepting a job with Mistine, you are creating a second job for yourself. If a salesperson is not determined or committed to selling the product they will leave or be terminated within six selling periods.
As a result, Mistine’s
turnover rates are always going to be high. Some people may not have the time nor the motivation to reach sales goals at there second job.
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