Ch. 8 - Segmenting and Targeting Markets

Mary Kay Cosmetic products are made for all women who care of their beauty. However, the company primary target is aging women because the company focuses on aging products. Mary Kay has two kinds of consumers for its products. The beauty independent consultants who buy the products from the company for direct selling are costumers and other customers as consumers. The minimum consumers are more than 3 million because that is the number of Mary Kay independent Beauty consultants worldwide today. The size is growing up because the company awards its force sales consultants in cars and more.  

In addition, as consultants, Mary Kay Inc. target market is mostly women who fit at least two of the five categories. Women who have a full-time Job, have a College degree, are married, have children, and own their own home. These women are mature enough to run a business and understand the self-disciple involved to be successful. Among the secondary target are men who are consultants and consumers.

Statistic shows the company’s target market that are its independents consultants. Remember that the company has a primary target that is its independent consultants and a secondary one that is consumers. The company has a lot to offer, so different types of target. For instance, there is a product line in its cosmetic color called, Mary Kay At Play.

Mary Kay At Play is specifically for younger consumers, Gen Y. The customers are younger, the sales force are younger also. Mary Kay can relate to them since, according to the company, 35% of new independent beauty consultants in the US are from the Gen Y segment (18- 30 years old) while approximately half of the Mary Kay independent sales force in the U.S. is aged 35 or younger. Basically, the company has so many product lines that everybody is a Mary Kay target. That is like a Mary Kay lady saying that her target audience is “anyone with skin”. 

A target market of aging product is niche of women who fall into 30 years and more. The line product Time Wise has been cannibalized by Time Wise Repair that restores the beauty of those women.

Ch. 11 - Developing and Managing Products

Mary Kay company continuously innovates its products to satisfy its consumers needs and also to change obsolete items,  to keep going growth, and to increase profits of the company. 

The company develops  new products in all six categories: skin care body, skin care facial, sun care, nail care, color cosmetics,  and fragrance. The new products can be new product lines, additions to existed product line, revision to existed products, or new-to-the-world products. However, the company mainly development product is based on aging product line. Its product line  extension aging is Time Wise Repair. 

Before Mary Kay Inc. develops new product, it processes in a concept test. The product decision is based on scientific fact and the company relies on proven scientific research. Moreover, the company will not use any ingredient until the test has proven for effective use.

Mary Kay Inc.  performs and supervises  every step in the new-product development process from formulation to distribution. Every new product has to pass a series of strict research and consumer test.

 

 A scientific perspective with an understanding of consumer need and desires, the company research and development team continually delivers innovative, high-performed  products in more than 35 global markets.

 Before any Mary Kay cosmetic product is permitted to the market, it has to pass strict government safety requirements.  Then, the product commercialization comes to life .

Ch. 12 - Services and Nonprofit Organization Marketing

Even though Mary Kay is a profit 
business company, it has created  a non profit organization The Mary Kay Foundation, " a legacy of love". It aims to fight against cancer and domestic violence on women because Mary Kay Ash care about all issues affecting women. Although she died on Thanksgiving day 2001, her legacy of love continues through the The Mary Kay Foundation, which she began in 1996.

Many services are provided through the organization.  There are communities services and volunteering.  Mary Kay Ash had demonstrated to people how to live and the way to give back. She enriched lives of a lot women.

Although service is not mainly part of it business, Mary Kay Inc. provides service to its consumers. Mary Kay consultants develop social and structural bond to sustain long-term relationship. The consultant starts to provide service such as free skin care or cosmetic color party. The hosts are not obliged to buy the product. The service is free of charge.

In the same way, the company provides a great customer service to it consultants. It has a great internal marketing for the company employees. Mary Kay Inc. treats its employees as customers
with benefits that satisfy their needs.

Ch. 10 - Product Concepts

Mary Kay has been a part of the cosmetic industry for over 50 year (since 1963). The company has been created by one woman
Mary Kay Ash who thought of keeping women's beauty by fighting age.

The primary goal of Mary Kay company is to fight against age

 Mary Kay Ash term product is "age fighting."
Its product item is the product line Time Wise.
Two

      Time Wise Miracle Set.

 

Time Wise Miracle Set is a customized collection of age-fighting products. It offers 11 age-defying benefits: cleanses, exfoliates, freshens, hydrates, smooths, visibly firms, softens, protects, energizes, renews and reduces the appearance of fine lines and wrinkles for a younger-looking you.

                                                                                       Time Wise Repair

As Mary Kay Inc. goal is to keep women beauty younger-looking,  the company develops a product line extension which is an Advanced Age-Fighting.                         

 


The Time Wise Repair regimen fights the advanced signs of aging, including loss of skin volume and loss of firmness, two of the most visible signs of advanced skin aging.

 Time Wise Repair combines extensive research, innovative ingredients and comprehensive testing to deliver the benefits that target the advanced signs of skin aging. Think of it as a new beginning for your skin. Suitable for all skin types. Time Wise has a countless product line depth of aging.

 


Today, the company offers more than 200 products mix width in six categories products mix: facial skin care, body care, sun care, nails care, make up, fragrance, Men's personal care products. In addition, the company has countless of products mix.



Skin Care included facial and  body are the main product item. Cosmetic color is the customer product in the range of Mary Kay product. Fragrance make perfect scents. It’s no wonder that finding the perfect perfume for any occasion is as essential as selling. All its products has a brand name Mary Kay that identifies and differentiate in market place.
Once Mary Kay consumer favors the product, it becomes his/her brand loyalty.

 One of Mary Kay competitive advantage is that the company develops a product line extension so it encourages customer loyalty and helps new products succeed.

Mary Kay has adopted a packaging adapted for each of its products. The packaging serves as a tool for promotion for some products and all of products are identified by the company brand "Mary Kay." In order to fight against brand piracy in international market, the company frequently changes its packaging.                    Most Mary Kay cosmetics are fragrance free and offer stabilizing packaging. Mary Kay Inc. offers a 100% satisfaction guarantee for all of its products.

Ch. 17 - Personal Selling and Sales Management

 

Mary Kay Ash   provides the opportunity for women to start a work-at-home business selling cosmetic products. 

Mary Kay utilizes the direct-selling process to market and sell its products. Direct selling involves selling a product directly to a consumer without using a retail location to conduct the transaction. This gives a Mary Kay representative the ability to conduct sales anywhere and at any time. Use the resources available from Mary Kay Inc. to sell its products to women in your direct market.

In order to make personal selling, the consultant hosts a makeover party. She sends out invitations to friends, family , referral and any other women who are interested in attending a makeover party. This can help to create a relaxed environment that will help to encourage sales. She exhibits each product on participants  and creates a traditional personal selling with the hosts. She may have enough inventory on hand to cover the number of people attending the party.

Most of consultants set up a personal Mary Kay website. Mary Kay provides its associates with a personal website they can use to market their business. It is another avenue that you can use to sell to women. The website allows visitors to buy Mary Kay products at any time. Place a link to your website in your email address and include the website address on your business cards and any marketing material that you use. Most of selling from website. Mary Kay company refers new customers to consultants base on your address and area the customer needs to get the products.

Attend women's expos. Select expos that are marketing cosmetics and beauty products where consultant can set up a booth at a minimal cost. She uses the booth to showcase Mary Kay

products. For example, give free demonstrations of the products, give away coupons and apply discounts where applicable.

Consultants give away samples. Go to places where women congregate, such as beauty parlors, and give away free samples of Mary Kay products along with their contact information. Whenever possible, get contact information from prospective clients to follow up with a sales call.


Call their most loyal customers frequently to give away free samples and discounts on their products. This can encourage referral business from their customers because they are likely to let their friends and family know the exceptional service they are receiving from you.

Ch. 16 - Advertising, Public Relations and Sales Promotion

Mary Kay Advertising
 
 Ask me about

• Skin Care for Men & Women
• Custom color consultation
• Career Opportunities
• Home/Office Show
• Bridal Cosmetics
• Fundraisers

 

 Mary Kay does a lot in advertising. 

 Even though it seems that Mary Kay doesn't spend too much money on advertising because the product is direct selling , Mary Kay uses the two major types of advertising to promote its products. Institutional advertising to foster the company image through its beauty consultant membership. Product advertising to reinforce  its beauty consultants' own advertising.

 

Online advertising is the well-know Mary Kay 

canal to promote it products to its consultant and consumer. For instance, this video is made to teach consultants how you make up consumers  and directly show consumers how to do that.

Even though it is not an advertising campaign,  magazines, e-catalogs, DVDs, most on internet.

Mary Kay Public Relations 

Each year  Mary Kay hosts three major events to get together with its beauty consultant at all level

• Leadership Conference held on January where only Directors and National directors are invited.

• Career Conference held on March  where all members of Mary Kay beauty can attend.

•  Seminar held on July when Mary Kay rewards its beauty consultant for high  achievement at its headquarter in Dallas.

                                        Besides its public relationship with it consultants                        Mary Kay innovate frequently new products and publish through it website and during its major events.
Product name: Time Wise Repair

Mary Kay Sales Promotion

Mary Kay uses to promote twice a year a recruitment of its beauty membership by reducing the start kit from $100 to $75.

 Each consultant does her own promotion on whatever products she wants to liquidate and whenever she feels to do that.  It can be at special event like wedding preparation or host a skincare facial party.


Most of the time the promotion happens when the consultant host party with specific promotion like showed in this advertising. At this event sampling is usually a mode of promotion used.

 Also the consultant can decide anytime she wants to choose products and does promotions. At this occasion a supplement promotion is used as premium.

CH.14 Marketing Channels and Retailing

Marketing Channels and Retailing


Notice that Mary Kay has not adopted  special store. The Mary Kay company does not have any in-store retailing. Its selling strategy is direct retailing by giving away Mary Kay Pink cars to its retailers who are independent beauty consultants. In order to compare its marketing channels and retailing, I had to visit its competitors gathered in a department store such as Macy's.

  
    Macy's Herald Square

My visit was at Macy's, the world largest department store located at Herald Square in the heart of New York City where thousand of people do their errands everyday. It is a shopping store always crowded of visitors, tourists and consumers. Macy's is a chain store that operates in retailing mix.  My choice to visit Macy's was because there was a bunch of cosmetic product brand names sold there and mostly all Mary Kay' s competitors were represented.

151 West 34th Street  New  York, NY 10001 

        (between Broadway and 7th Avenue)

My first destination as I entered the store was the Mac makeup counter, which is in the lobby of the store.

It is a place that drags in both genders and it is always busy. There were a lot of people who where waiting to get their makeup done. I was the fourth person on the waiting list although there were eighth  people who were being taken care of. After about an hour of waiting, Nancy the beauty cosmetic representative of Mac came to me  and did my make up in a professional way. The makeup was so flawless that it made me buy one of the products the consultant used on me.

My next step was at the Clinique cosmetic Counter, located in front  and across from Mac cosmetics. Clinique is specialized in skin care products. It is another variety of skincare facial which is a lot of Mary Kay products and the first step to try Mary Kay cosmetic products. Olga, the Clinique representative tried to sell me a product by using the retailing mix strategy, but I resisted at her offer.

In addition to making my beauty by the two  Mary Kay' s competitors, I noticed the greatness of intensive distribution that the management of Macy's has put on place. Comparably to Mary Kay strategic, which is direct retailing, telemarketing and online retailing,  Macy' s has incredible retailers who make the store success on his Marketing channels and retailing.