Case 7 Lecture Notes
Mistine: Direct Selling in the Thai Cosmetics Market
Case 7 Mistine: Direct Selling in the Thai Cosmetics Market*
Synopsis: This case summarizes the growth of Better Way (Thailand) and its highly
successful Mistine brand of cosmetics. From its meager beginnings in 1991,
Mistine has risen to become the dominant brand in Thailand’s direct selling
cosmetics market. The brand’s value-based positioning (high quality at affordable
prices), along with successful target marketing and a tightly integrated marketing
program, has kept the company at the top of the market despite strong
competition. Mistine’s success has allowed Better Way to expand its efforts into
other countries, most notably in Asia, Europe, the Middle East, and Africa. Better
Way is now looking to further expand its operations, perhaps into Western
countries and China.
Themes: Direct selling, global marketing, branding strategy, value, positioning, distribution
strategy, integrated marketing communication, marketing implementation
Case Summary
Better Way (Thailand) Company Limited was founded in 1988 by Thailand’s “king of direct
selling,” Dr. Amornthep Deerojanawong and Boonyakiat Chokwatana. Dr. Amornthep had
worked as a medical doctor at Avon in Thailand where he got the idea to start his own Thai–
based cosmetics company. The company has become highly successful in Thailand using direct
sales to launch its Mistine cosmetic brand. Although Thai people were not very familiar with the
direct sale of cosmetics, within six years Mistine had become the leader in the consumer
cosmetics market in Thailand.
The company primarily targets women who have a high school, occupational certificate level, or
high occupational certificate level of education, and have a monthly income of about U.S. $125–
200 as well as working women who have a monthly income of about U.S. $200–300. Mistine’s
core target group—housewives with low–to-medium incomes—accounts for 70 to 80 percent of
its total sales. The company is expanding its customer base by targeting working people, men,
and vocational school students, especially working people who have high purchasing power.
Mistine positions itself as an Asian company marketing products developed and formulated
specifically for the Asian woman. They are designed to blend well with the Asian skin tone and
complexion. They are also made to better suit the warmer, more humid climate of the Asian
region, so that the product stays on longer and looks fresher.
Direct selling companies normally depend on word of mouth to develop brand awareness, recruit
salespersons, and encourage product purchases. Better Way decided to do things differently by
being the first direct selling company in Thailand to use mass media advertising. The company’s
continuous and award-winning advertising campaigns have been executed to build brand image
* O.C. Ferrell, University of New Mexico, prepared this teaching note for classroom discussion
rather than to illustrate effective or ineffective handling of an administrative situation.
Case 7 Lecture Notes
Mistine: Direct Selling in the Thai Cosmetics Market
and positioning in the customers’ minds. Due to its extensive marketing campaigns, the Mistine
brand is one of the best-known brands in Thailand. In 2011, the brand won a Superbrands award
as the “brand most accepted by Thai consumers.”
Mistine’s direct sales system is a simple, single-level marketing (SLM) approach. The company
recruits district managers who in turn recruit as many salespersons as they can manage. This
approach meshes well with Thai culture and lifestyle. The benefit of this approach is that each
salesperson earns full commission without having to share his/her earnings with others. Thus, the
more sales a salesperson makes, the more income he/she receives.
Despite Mistine’s great success with direct cosmetic sales, the company continues to strategize to
maintain its market share amidst intense competition. To increase revenue, the company has
started to increase prices. Historically, 80 percent of Mistine’s sales were for products that cost
an average of $3 (U.S.) each. By boosting the average price to $6 (U.S.), Mistine expects the
average order to increase from $27 (U.S.) to $45 (U.S.). Along with price increases, Mistine
plans to increase its marketing budget. Company executives believe that Mistine’s double-digit
growth will continue over the next few years. Their main concerns are primarily related to
political situations in the countries where it does business, and to the worldwide volatility of oil
prices (oil is a key ingredient in many cosmetics).
Teaching Overview
The Mistine case provides an example of an international company competing against a well
know brand: Avon. It follows the company from small start-up to one of the largest Asian direct
sellers. It gives students an excellent opportunity to see and understand how a company can
develop and grow through a direct selling model.
SWOT Analysis
A SWOT analysis is provided in the case.
Problem/Decision Statement
Considering the relationship of Thailand to its neighboring countries, its geographic proximity,
and Thailand’s position in Asia, foreign markets are an extremely interesting prospect for
Strategy Alternatives
1. Expand into countries that are receptive to the direct selling model (i.e., Hungary and
Russia).
2. Expand worldwide, focusing on Asian women living in Europe, North and South
America.
