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.

CH.6 Consumer Decision Making

 
   Consumer Decision Making 








 


What factors drive consumption to buy Mary Kay cosmetics product?
Mary Kay company doesn't just sell products, they teach their customers how to use the products and offer their customers the opportunity to try it before buying it. Although Mary Kay products are not cheap, their consumers become adept of the products.

   


 To let people try the products, Mary Kay has adopted the strategy to host party, letting it future consumer to be ease, take time to discover the grateful of their products. Customers feel at home.





Mary Kay innovate his product and change often its product's package. Mary Kay because it allows customers to view and purchase products online. Mary Kay practices direct selling, building a loyal consumer base is a vital factor in consuming the products. The company use of the latest technology in product testing.

Ch 5: Developing a Global Vision

Mary Kay: Developing a Global Vision

Since less than a decade, after the company has been founded,  Mary Kay has had a global vision. Mary Kay opened its first international venture in Australia in 1971. Since then, it has expanded to more than 35 markets around the world. Mary Kay products are sold in those markets worldwide, and the company's sales exceed $ 3 billion in wholesale  worldwide. 

  Since 1990, Mary Kay Inc. has experienced significant growth, opening in more than 20 new markets around the world. Its largest markets include China, Mexico, Russia and the United States. Since it is the top selling country, China is the market where the company gets more growth. Mary Kay, which has invested about $100 million in China since 1995, expects sales to increase 30 percent this year, compared with 20 percent last year.  Mary Kay, which sells skin care and color cosmetics through 600,000 independent saleswomen in China, will this year start building a distribution center in Hangzhou, the site of its only overseas plant.

In addition to opening new markets oversea, Mary Kay company gives worldwide  employment opportunity as it is domestically. The Company's global independent sales force exceeds 2.4 million with 600,000 independent beauty saleswomen in China.




Besides that opportunity, Mary Kay  has  developed "The Mary Kay Leadership Program", which aims to stimulate its global recruiting efforts by expanding the business opportunity of the Mary Kay independent sale force in an international forum.

In order to enter global marketplace, Mary Kay company has Chosen direct foreigner investment, which has high risk and high return. The fact that Mary Kay cosmetics products have the best quality and it is well know, the risk is limited. More, the company has adopted global marketing standardization. It is the same way of production and selling the products oversea as domestic.

Mary Kay Inc. has implement global marketing mix in the same way in all its market place.

•  One product, one message: The company promotes its products    oversea the same way domestically through the beauty independent consultants. 

• Place: There is not place for direct selling. Consumers buy directly from consultant.

• Price: The price is same, it may slightly change because of exchange rate.

Social media is the mean that the company adopts to promote its products the most: E-catalog, blog. Each consultant has his own company web, which allows them to promote the product through their personal website.

Mary Kay enjoys a reputation as a respected beauty company and direct seller around the world. 

CH.4 Marketing Environment

Mary Kay: Marketing Environment

Mary Kay is, since its foundation; know to enrich women live for living and beauty. So Mary Kay’s target market is a mostly woman from 18 up to elderly.  Its strategic of selling, offer to women, is to become a beauty consultant of the company. There is the product on the market, the customer have to consult the consultant for sale. Then, the company implements strategy to let the beauty member shape the external environment.

      In addition, many social factors shape marketing 

strategies. Nowadays, the demography trend of consumption of Mary Kay product is generation 

Y, baby boomer and elderly as Mary Kay products are made to stay young.  Mary kay products are consumable as bread, floor, and milk because of the positive impact of technology. Mary Kay products are represented in more than 35 markets worldwide. Mary Kay products are well known and protected by environment of marketing.