Abstract

Kefir is a plant derived product that has traditionally been used in groceries, but Kefir Beauty recognized its potential in cosmetics. The company thus began to locally produce and market natural health and cosmetic products made from kefir.  In a mere 5 years, sales have taken off.  However, due to a lack of management strategy and structure, the business cannot take full advantage of its success and grow more. To remedy this situation, an analysis of the company, product, and philosophy must be examined so a management plan can be created and implemented.

Introduction

As much as seventy percent of visits to primary care physicians are necessitated by various skin ailments or diseases (Gupta et al., 2010). Kefir Beauty has never shied away from non-traditional approaches to marketing. Beginning with family remedies, the success of the home-owned company has been based upon the word-of-mouth advertising, the quality of the products themselves, and the philosophy upon which the company has continued to operate and expand. Selling organic, plant-based products which are produced, marketed, and sold in a family-run business, the small company has identified a global demand for better organic beauty products as a result of their close dealings with the loyal regional clientele which circulate from one market to another. Given the current globalization of technology, the reach of Kefir Beauty need not end there. If the company can find a way to successfully increase production, maintain quality, and maintain timely shipping of products, then further expansion and growth is possible.

For a starter company specializing in organic combinations of beauty sunscreens, creams, washes, and masks, Kefir Beauty has managed to surmount the barriers which are faced in the current economic climate. From a humble idea to local, regional, and international distribution, the company has maximized the benefits reaped from the identification of a need to enhance the quality of skin care for men and women of various walks of life. Given the particular cultural influences which favor fair skin, the company’s all natural product line provides a sociological attraction for the region in addition to the eco-friendly benefits of combining milk, fruit, and plant-based ingredients.

At the present moment Kefir Beauty is poised to take its product to a wider distribution. However, as the company was begun as a family run organization, a management strategy was never created. Though the opportunity for expansion exists, the ability of the company to manage that growth is hindered by a lack of training and knowledge of business management. Here are also cultural considerations, as cultural norms of Thailand often conflict with western business practices.  The Kefir Beauty case can be examined using three management theories – Classical Theory, Contingency Theory and Behavioral Theory. The following case study examines the various factors which have contributed to this success and the factors which continue to impede Kefir Beauty from making rapid progress using these three management theories.

Behind the Scenes

Organizational Structure  Currently, Kefir Beauty has no formal business structure. As a family-owned and operated venture which constantly rotates among markets frequented by loyal customers, the hierarchy of power within the business is largely determined by the share of personal responsibility which each family member undertakes and by their social standing within the family and within the larger framework of Thai social customs. Although the area is experiencing a revolution, some traditions remain influential. For example, the influence of elder citizens is typically greater than in Western society, and Thai women are often valued for their ‘white’ appearance (Esara, 2009). Kefir Beauty’s organizational structure tends to follow social norms and customs and to avoid the Western concepts of business hierarchies and formal knowledge management. Expansion would require a formal organizational structure, additional employees, packaging, logos, and slogans, and additional marketing and advertising.

Products   Kefir Beauty’s products have sold because people enjoy them. The best-selling product is the deep pore cleanser for face and body and is used for sample facial masks. The ultra facial cleanser is concentrated for a tough-love treatment of stubborn skin. Kefir Beauty’s creams focus on perfecting skin during the day or nourishing and brightening skin during the night. Less common products include intensive whitening and ultimate white concentrates. Other products include ultra UV sunscreen, anti-wrinkle gel, and nourishing body wash. These products are available at the revolving marketplaces in Thailand and online; the website is mainly in the Thai language.

…