Case 4 Mistine: Direct Selling

in the Thai Cosmetics Market

Jeremy Nunez
(1) Based on the SWOT
analysis provided in the case,
what are the two or three
factors that Mistine should
stress in its strategic planning as
it looks to continue its
growth and dominance in the
Thai market? How can Mistine
match its strengths
with its market opportunities to
create competitive advantages
moving forward?
If Mistine plans to continue to
grow and dominant the Thai
Market, Mistine should
consider conducting an
industry analysis to see
what position they should
focus
marketing to the Thai market.
Understanding the importance
of the use of the ASEAN
and AVFTA agreements and
potential entry in southeastern
Asian nations to market
higher quality beauty and
fashion products, will leave
Mistine with excellent results in
the market. When comparing its
strength to its opportunities,
Mistine brand identity is
highly recognized by many
customers world wide
because of its partnership
internationally. By showing
their customers Mistine is a
higher quality brand for makeup
through extensive method of
advertising they can appeal to
their target audience in Thai
markets.
(2) Please discuss how Mistine
use mass media advertising to
realize three degrees of
brand loyalty: brand
recognition, brand preference,
and brand insistence.
Teaming up with Better Way,
Mistine created three different
marketing campaigns in
order to increase their brand
identity and generate sales.
They first launched a television
campaign with a message
advertised as “Mistine is here!”
After two months their brand
awareness increased from 10
percent to roughly 70 percent,
due to its position as the
“The Asian brand for
Asian women.” Increasing
their salespeople motived
Mistine
second advertising campaigned,
as they wanted to assist district
managers to help sell. In
addition, to strategic help their
second campaign grow
confidence in consumers,
Mistine
Case 4 Mistine: Direct Selling
in the Thai Cosmetics Market
Jeremy Nunez
Mistine strategy revolves
around the company
recruiting district mangers
that hire
salespeople to gain new
prospective customers. The
advantage that comes from this
is
that salespeople who tend to
make more sales, gradually
receive more income. Also
making a schedule that fits them
they are able to reap rewards.
Disadvantages that come
from Mistine direct selling
approach, is that if salespeople
represent the company image
poorly consumers will be
unlikely to purchase their
products. This could cost
Mistine a
lot of money from their training
of staff budget. Comparatively,
Amway uses a multilevel
marketing approach by selling
various consumer products
alongside its cosmetics. With a
wide range of products
consumers have the luxury
of options. In addition,
having
physical retail stores allows
them to sell to various
audience, however they can
potentially lose out if their
target audience deems Mistine
as preferable.
(5) How can Better Way
stay on top in Thailand
while it looks to expand
internationally?
Better Way can look to
expand internationally by
using their multi-level
marketing
approach. As this sets the
foundation for the company to
self-manage its sales people,
they can continue to recruit
and build its sales structure
without the use of major
advertising. Properly
managing their funds Better
Way can use a different
style of
advertising to still control Thai
markets.
Case 4 Mistine: Direct Selling in the Thai Cosmetics Market Jeremy Nunez
(1) Based on the SWOT analysis provided in the case, what are the two or three
factors that Mistine should stress in its strategic planning as it looks to continue its
growth and dominance in the Thai market? How can Mistine match its strengths
with its market opportunities to create competitive advantages moving forward?
If Mistine plans to continue to grow and dominant the Thai Market, Mistine should
consider conducting an industry analysis to see what position they should focus
marketing to the Thai market. Understanding the importance of the use of the ASEAN
and AVFTA agreements and potential entry in southeastern Asian nations to market
higher quality beauty and fashion products, will leave Mistine with excellent results in
the market. When comparing its strength to its opportunities, Mistine brand identity is
highly recognized by many customers world wide because of its partnership
internationally. By showing their customers Mistine is a higher quality brand for makeup
through extensive method of advertising they can appeal to their target audience in Thai
markets
Case 4 Mistine: Direct Selling
in the Thai Cosmetics Market
Jeremy Nunez
offered free trials and
money back guarantee
claims. Lastly, in order to
ensure
completion from their goal of
marketing to Thai markets,
Mistine launched mass media
campaign featuring popular
celebrities in Thailand, to
create a positive connection
between the brand and
consumer. The push for more
brand loyalty not only allows
Mistine consumers to settle with
their products, but also create a
high degree of brand
insistence, closing the gap
between competitors and
Mistine
(2) Please discuss how Mistine
use mass media advertising to
realize three degrees of
brand loyalty: brand
recognition, brand preference,
and brand insistence.
Teaming up with Better Way,
Mistine created three different
marketing campaigns in
order to increase their brand
identity and generate sales.
They first launched a television
campaign with a message
advertised as “Mistine is here!”
After two months their brand
awareness increased from 10
percent to roughly 70 percent,
due to its position as the
“The Asian brand for
Asian women.” Increasing
their salespeople motived
Mistine
second advertising campaigned,
as they wanted to assist district
managers to help sell. In
addition, to strategic help their
second campaign grow
confidence in consumers,
Mistine
(2) Please discuss how Mistine use mass media advertising to realize three degrees of
brand loyalty: brand recognition, brand preference, and brand insistence.
Teaming up with Better Way, Mistine created three different marketing campaigns in
order to increase their brand identity and generate sales. They first launched a television
campaign with a message advertised as “Mistine is here!” After two months their brand
awareness increased from 10 percent to roughly 70 percent, due to its position as the
“The Asian brand for Asian women.” Increasing their salespeople motived Mistine
second advertising campaigned, as they wanted to assist district managers to help sell. In
addition, to strategic help their second campaign grow confidence in consumers, Mistine

3) How does Mistine motivate

its salesforce? Could you raise
the other possible
ways to motivate its salesforce?
Also, please discuss the
compensation package in
Mistine.
To deliver exceptional customer
service, Mistines pays each
salesperson 25-30 percent
commission, lets employees
make their own schedule,
provides means of
transportation
for district managers including
amenities, and provide rewards
for those who reach target
sales with employee
recognition and gifts.
Mistine emphasis the idea
of creating
relationships with its consumers
to their sales force in order to
increase brand loyalty.
Mistine compensation package
consist of a $50,000 life
insurance policy for each of its
salespeople. Setting the
foundation for employees to
improve morale and efficiency,
with
each sale a salesperson makes,
the more income he or she
receives. If I was Mistine and
had the opportunity to
motivate more the sales
force I would allow high
selling
salespeople the ability to give
their opinion on matters that
involved with the operations
of direct salespeople. In
addition, give incentives
that would help salespeople
and
consumers to better develop the
relationship and increase loyalty
3) How does Mistine motivate its salesforce? Could you raise the other possible
ways to motivate its salesforce? Also, please discuss the compensation package in
Mistine.
To deliver exceptional customer service, Mistines pays each salesperson 25-30 percent
commission, lets employees make their own schedule, provides means of transportation
for district managers including amenities, and provide rewards for those who reach target
sales with employee recognition and gifts. Mistine emphasis the idea of creating
relationships with its consumers to their sales force in order to increase brand loyalty.
Mistine compensation package consist of a $50,000 life insurance policy for each of its
salespeople. Setting the foundation for employees to improve morale and efficiency, with
each sale a salesperson makes, the more income he or she receives. If I was Mistine and
had the opportunity to motivate more the sales force I would allow high selling
salespeople the ability to give their opinion on matters that involved with the operations
of direct salespeople. In addition, give incentives that would help salespeople and
consumers to better develop the relationship and increase loyalty

Case 4 Mistine: Direct Selling in the Thai Cosmetics Market Jeremy Nunez
Mistine strategy revolves around the company recruiting district mangers that hire
salespeople to gain new prospective customers. The advantage that comes from this is
that salespeople who tend to make more sales, gradually receive more income. Also
making a schedule that fits them they are able to reap rewards. Disadvantages that come
from Mistine direct selling approach, is that if salespeople represent the company image
poorly consumers will be unlikely to purchase their products. This could cost Mistine a
lot of money from their training of staff budget. Comparatively, Amway uses a multilevel
marketing approach by selling various consumer products alongside its cosmetics. With a
wide range of products consumers have the luxury of options. In addition, having
physical retail stores allows them to sell to various audience, however they can
potentially lose out if their target audience deems Mistine as preferable

(5) How can Better Way stay on top in Thailand while it looks to
expandinternationally?Better Way can look to expand internationally by using their
multi-level marketingapproach. As this sets the foundation for the company to self-manage its
sales people,they can continue to recruit and build its sales structure without the
use of majoradvertising. Properly managing their funds Better Way can use a
different style ofadvertising to still control Thai markets.
Case 4 Mistine: Direct Selling
in the Thai Cosmetics Market
Jeremy Nunez
Mistine strategy revolves
around the company
recruiting district mangers
that hire
salespeople to gain new
prospective customers. The
advantage that comes from this
is
that salespeople who tend to
make more sales, gradually
receive more income. Also
making a schedule that fits them
they are able to reap rewards.
Disadvantages that come
from Mistine direct selling
approach, is that if salespeople
represent the company image
poorly consumers will be
unlikely to purchase their
products. This could cost
Mistine a
lot of money from their training
of staff budget. Comparatively,
Amway uses a multilevel
marketing approach by selling
various consumer products
alongside its cosmetics. With a
wide range of products
consumers have the luxury
of options. In addition,
having
physical retail stores allows
them to sell to various
audience, however they can
potentially lose out if their
target audience deems Mistine
as preferable.
(5) How can Better Way
stay on top in Thailand
while it looks to expand
internationally?
Better Way can look to
expand internationally by
using their multi-level
marketing
approach. As this sets the
foundation for the company to
self-manage its sales people,
they can continue to recruit
and build its sales structure
without the use of major
advertising. Properly
managing their funds Better
Way can use a different
style of
advertising to still control Thai
markets.