Mary Kay Cosmetics is a multi-billion dollar corporation, with over 1.7 million advisers employed in over 36 states world-wide.
Founded in 1963 ( with an investing of merely $ 5000 ) , this direct merchandising company has steadily evolved into a major competitory force in today ‘s cosmetics industry. With a mission to “ enrich the lives of adult females, ” this company has utilized direct merchandising to supply its employees with eternal chances ( Mary Kay Cosmetics ) . The ground we chose to research Mary Kay is because of the company ‘s enormous growing and success.
With over 200 beauty merchandises and 5 different merchandise lines, this company has achieved its end of providing to adult females of all ages and tegument types ( Linked In ) . The undermentioned study focuses chiefly on Mary Kay ‘s Timewise Collection. The ground we chose to research this peculiar aggregation is non merely because it entreaties to the company ‘s mark market of in-between elderly adult females, it is one of the first lines the company of all time introduced and has continually remained a best marketer for Mary Kay ( Patrick, 2010 ) . By using the selling constructs of cleavage, the selling mix, s.w.o.
t. analysis, and societal duty this study will explicate how these schemes have contributed to the success of this company and the Timewise Collection.
Mary Kay provides a broad scope of different merchandises including tegument attention, aroma, colour cosmetics, manus and organic structure attention, Sun attention, adolescent merchandises, and particular juncture gifts, .A Although they do supply merchandises for the demands of both adult females and work forces, they ‘re targeted more towards adult females age 14 and up ( Patrick, 2010 ) .A When looked at even further, their chief focal point is skin attention and tegument attention addendums for adult females age 25-55.
When it comes to enrolling independent gross revenues advisers, Mary Kay marks adult females age 18 and up.
Though it is uncommon for work forces to go independent sale adviser for Mary Kay, there are a few.A Mary Kay offers an alone calling opportunity.A In going an independent gross revenues adviser, adult females are given the chance to pull off their ain concern, earn one of the highest committees paid in direct gross revenues, and work towards inducements such as autos, jewelry, trips for their achievements ( Underwood, 2002 ) .
Mary Kay merchandises are available in over 35 states worldwide. In Canada, merchandises are available in all states, districts, and regions.
A This is due to the company ‘s online buying option. This is an advantage for Mary Kay because it allows clients to position and purchase merchandises online.A All retail orders received online are referred back to the gross revenues force in that client ‘s country. Because Mary Kay patterns direct merchandising, constructing a loyal consumer base is a critical factor in finding fiscal success. Mary Kay recognizes this, therefore any advisers who move off from their country do non lose their original client. This is a geographical advantage for employees and clients.
Merely as they did 47 old ages ago, adult females today appreciate the chance that Mary Kay offers to “ seek before you buy ” in the comfort of one ‘s ain home.
A They love the manner the merchandises make their skin expression and experience on the exterior and how seting their best face forward makes them experience on the inside.A Mary Kay is non specific to any peculiar societal category, personality or lifestyle.A Mary Kay is for everyone with tegument!
Mary Kay merchandises are used on an mundane footing and are hence considered a consumable product.A Many clients will book a makeover for particular occasions such as nuptialss and graduations.A The company offers the highest quality merchandises on the market at low-cost monetary values, backed by a 100 % satisfaction guarantee.A Most independent advisers offer on the topographic point bringing of the merchandises the client has purchased.
A Customers may besides take to be on their advisers Preferred Customer Program where they will have the latest merchandise booklet sent every 3 months direct from the company, along with samples and a gift with purchase offer.A Independent advisers will reach their clients to do certain their skin care, colour and gift giving demands are met, present new merchandises, get their clients in on competitions and allow their clients know how they can back up adult females in their country and across the state through the “ Look Good FeelA Better Program ” ( back uping adult females populating with malignant neoplastic disease ) andA ” Team up for WomenA Challenge ” ( raising money for adult females ‘s shelters ) .A Due to all the benefits of their merchandises, statistics show that Mary Kay has the highest trade name trueness among skin care and colour decorative consumers.AMary Kay herself said that advisers should ever seek to hold 6 adult females at a tegument attention class.A Of these 6, 2 will be incognizant and likely broke, 2 will be informed and ready to seek and to purchase some of the merchandises and the other 2 intend to purchase and will take place whatever they want.A At one clip Mary Kay was thought to be an older ladies merchandise, one your ma used, but over the lastA 15 yearsA there is a new attitude.A With new on tendency merchandises, cutting border designs and usage of the latest engineering in merchandise proving Mary Kay has become and remains a leader in the industry.
Overall Mary Kay ‘s chief focal point is to supply top quality tegument attention and colour cosmetics that target adult females ages 25-55, while still offering merchandises that satisfy the demands of work forces and other adult females as well.A The company offers great inducements for those who wish to have their ain concern by going independent gross revenues advisers. Their merchandises are readily available to anyone in the universe through online ordination and referred gross revenues consultants.A Customers, particularly adult females, love how the merchandises make them experience.
THE Selling MIX
Mary Kay offers its clients an array of beauty and tegument attention merchandises, all of which are separated into merchandise lines that target specific job countries and tegument types. At the bosom of these merchandise lines is Mary Kay ‘s anti-aging aggregation, Timewise.
The Timewise Collection ( which entreaties to the bulk of Mary Kay ‘s clients ) consists of moisturizers, refilling serums, oculus tautening cremes, and cleansing agents ( Patrick, President, 2010 ) . The intent of these merchandises is to regenerate the expression of tegument by diminishing lines and furrows. This is achieved by the natural ingredients and expressions contained within each merchandise.
These ingredients include gliadin, Punica granatum infusions, vitamin A derived functions, vitamin E derived functions, and lucentrix composite ( Mary Kay Cosmetics ) . Merchandises from the Timewise Collection contain gliadin, a rich beginning of amino acids, because of the ingredients ability to house and fasten the tegument. Pomegranate infusions and vitamins A and E are used to neutralize pre-mature aging caused by the Sun and the environment.
Finally, lucentrix composite is used because of its ability to cut down stain and age musca volitanss ( Mary Kay Cosmetics ) . The lucentrix composite is a expression developed and patented by Mary Kay ‘s squad of skin doctors. This creates value for the company ‘s clients because this expression is sole to Mary Kay merchandises.Another manner the company creates value for its clients is by offering a 100 % satisfaction warrant. By using a squad of board certified skin doctors and scientists ( who conduct over 300 000 trials a twelvemonth ) , the company proves its committedness to presenting clients merchandises of unquestionable quality and value ( Mary Kay Cosmetics ) .
In this instance, the augmented merchandise is the company ‘s 100 % satisfaction warrant and the ingredients are the existent merchandises that all contribute to the nucleus benefit of the Timewise Collection, which is to help clients in making their full potency by transfusing assurance by supplying dateless beauty.
Mary Kay ‘s assorted distributions channels are another manner in which the company has created value for its clients. Although Mary Kay merchandises ca n’t be purchased from retail mercantile establishments, they can be purchased via the telephone, one-one-one audiences, online every bit good as group audiences. This method of direct merchandising has given Mary Kay a competitory border over its massly distributed rivals ( Kotler, Armstrong, & A ; Cunningham, 2010 ) . The benefits of this scheme include velocity, convenience, entree to comparative pricing information, and most significantly, client relationship direction.
Rather than driving to a drug shop to look for the merchandise one needs, Mary Kay clients have their merchandises delivered right to their doorsill. Another benefit of this distribution method is the overall experience provided to clients. By carry oning one-one-one audiences, clients are offered advice, informed of new merchandises, and given the chance to turn to any inquiries or concerns they might hold. This is another factor that makes up the augmented merchandise created by Mary Kay. Because advisers are provided preparation to to the full rise their merchandise cognition, the company has more control over how their merchandises are presented and pitched to clients.
This creates a competitory advantage for Mary Kay as opposed to their mass-distributed section shop rivals such as Revlon and Covergirl.
One of the ends Mary Kay efforts to accomplish when pricing their merchandises is to make full their client ‘s makeup bags without emptying their billfolds. Of the 200 merchandises the company offers, 100 of them are $ 18 or less ( Mary Kay Cosmetics, 2010 ) . Although these monetary values are reasonably cheap, the company considers Lanacome, Estee Lauder and Clinique ( all of which are considered to be “ prestige trade names ” ) as its chief rivals ( Mary Kay Cosmetics, 2010 ) . In footings of the Timewise Collection, Mary Kay ‘s mark market is the in-between aged adult female ( 30-49 ) .
At this point in the life rhythm, persons of this age are either progressing in their callings or acquiring near to it. This explains why the company is able to monetary value their merchandises between $ 20- $ 50. Although this may look inordinate, compared to the “ prestige trade names ” , Mary Kay utilizes the market portion leading scheme, by bear downing significantly less than its rivals. For illustration, the anti-aging moisturizer from Mary Kay ‘s Timewise Collection works out to $ 0.40/ml of merchandise while Cliniques works out to $ 1.17/ml, Lanacome ‘s $ 1.
27/ml, and Estess Lauder ‘s $ 1.79/ml ( Mary Kay Cosmetics, 2010 ) . While these monetary values are significantly high, there are other trade names, such as Covergirl and Maybelline, who set their monetary value significantly low.
The cosmetics industry, is hence, under monopolistic competetion. Estee Lauder promotes their merchandise as being high quality and effectual, while Covergirl promotes their merchandises as being extremely low-cost. In the center is Mary Kay and the Timewise aggregation, this is an illustration of value pricing. This could besides be a signifier of psychological pricing. By offering merchandises for a monetary value that is lower than the prestige trade names but higher than the lowest trade names, clients who ca n’t afford Estee Lauder or Lanacome may take to buy Mary Kay over Maybeline because of their perceived value in respects to monetary value.
The first tool in the communication mix is publicizing. Because Mary Kay is a direct merchandising company, telecasting advertizements are scarce. All advisers work independently as their ain concern, therefore it is up to them to do their merchandise cognize to the populace. Mary Kay is promoted chiefly by word of oral cavity ; the relationships between the adviser and the client is, hence, improbably of import. One signifier of advertisement that the company did prosecute in was patronizing the Country Music Awards in 2009 ( Patrick, President, 2010 ) .
The ground being that the first Mary Kay location was established in Texas. Thus, some of the company ‘s oldest and most loyal clients reside at that place. This made the sponsorship an easy pick for the company.The 2nd tool in the communications mix is gross revenues publicities. Mary Kay ‘s debut of the “ Mary Kay Rewards Visa Card ” ( see figure 1 ) , is one manner in which the company has provided their clients with an inducement to buy their merchandises. Customers earn points for every dollar they spend at Mary Kay, and are finally rewarded with voucher and gift cards.
The 3rd tool in the communicating mix is public dealingss. Mary Kay is a large truster in giving back to the community. The “ Mary Kay Charitable Foundation ” donated over $ 5.8 million to adult females ‘s shelters and domestic maltreatment plans in 2009. The company ‘s “ Pink Doing Green Foundation ” planted over 200 000 trees in the Bitterroot National Forest ( Mary Kay Cosmetics ) . Mary Kay does non excuse carnal testing and is a proud member of PETA.
The 4th and 5th tools in the communicating mix are the personal merchandising and direct selling tools. As stated before, the company ‘s use of direct merchandising has allowed the company to construct strong and profitable relationships with its clients. The company creates value for their clients by presenting merchandises to their doorsills and presenting new merchandises and characteristics. The company ‘s usage of the telephone and cyberspace as a buying tool creates value for clients because of its convenience and velocity.
Mary Kay sells a broad scope of merchandises in 4 major classs. These classs include skin care, make-up, watering place and organic structure and aroma. They sell merchandises for both work forces and adult females which has helped them in commanding the decorative market. The company develops and manufactures its ain merchandises every bit good as performs its ain testing and packaging. Mary Kay sells merchandises to contend aging, the Timewise aggregation, which has become a major concern with older adult females.
In the watering place and organic structure class, they have merchandises including sunblock, manus and organic structure lotions, and shower gels and organic structure washes. Mary Kay ‘s diverse portfolio, aiming clients of any age, allows them to cover about all sections of their market.
One of the Only Privately Owned Family Companies That is Debt Free
Bing debt free is a immense advantage for Mary Kay. Most in private owned, household operated, companies remain in debt for most of their life-time. Having the excess money, non traveling towards a debt, means that they can pass it on other things like research and development, proving, and most significantly inducements for their. The ability to make equal research and development and testing allows the company to offer the best quality merchandise to suit the demands of all people in their market from adolescents to consumers 50 and older seeking to heighten their image.
Through Enriching Women ‘s Lifes they Enrich Families Lives every bit Well
Mary Kay started the company during the old ages of the Women`s Movement in the late 1960 ‘s. Her end was to give adult females the chance to travel up in the concern universe and enriching their lives by offering authorization.
This gave their company strength and an advantage over other rivals. Women all over the universe wanted to go portion of this company to go an independent beauty adviser and accomplish great things in their lives. Mary Kay now has over 1.
7 million independent beauty advisers worldwide, which has attributed to the companies ‘ success.
Highest Paid Commission Gross saless Peoples in Direct Selling
Mary Kay ‘s advisers are the highest paid gross revenues people in direct merchandising. This gives them an advantage over their major rivals. The company largely uses word of oral cavity for advertisement so they save money and can pay a higher committee to their gross revenues force. Having more advisers means more clients and more clients means more gross. This gives them the chance to besides hold inducements and fillips that drives their advisers to construct loyal relationships with their clients and convey in every bit many as possible.
Sells Men ‘s Merchandises Without Ad
Mary Kay has a full line of men`s merchandises runing from aromas to clamber attention.
Most work forces wouldn`t cognize this unless they checked out Mary Kay ‘s web site or if they asked person who purchases their merchandises. Most work forces would ne’er believe of traveling to a web site with a name Mary Kay. If for some ground they ended up on the web site, the first thing they see is Mary Kay ‘s motto, “ Enriching Women ‘s Lifes ” ( Mary Kay Cosmetics Ltd. , 2010 ) .
Although the significance of this motto has nil to make with the existent merchandises, it is really discouraging if a adult male were to read it. By merely advertisement towards adult females and holding largely adult females as beauty advisers, Mary Kay could potentially be losing half of the market they are seeking to make. When inquiring Mr. Patrick, the president of Mary Kay Canada, the inquiry his response was, “ we are looking at bettering work forces ‘s attention line of merchandises over the following 2 – 3 old ages ” ( Mary Kay President R. Patrick, personal conversation, March 15, 2010 ) .
No Store to Sell Products – Everything is Door-to-door
The company stands steadfastly against opening a retail shop to sell its merchandises. When asked why during a phone conversation, the president of Mary Kay Canada, Ray Patrick, said “ If we are the best merchandising trade name why would we perplex it by selling in shops ” and it would “ sabotage our gross revenues force and their chance if we started selling in a retail shop ” ( Mary Kay President R.
Patrick, personal conversation, March 15, 2010 ) . This could be seen as a failing but the president does n’t look to believe so. With the high demand from retail merchants and cost of advertisement, it would take away from the inducements and fillips offered to the immense gross revenues force Mary Kay already has. The job with non holding a retail mercantile establishment is the possibility of catching the people that are merely walking by. If the shop is located in a shopping promenade, conceive of how many possible clients are merely walking by on twenty-four hours out shopping.
They could be looking at losing 100s of 1000s of dollars in net income over the class of a twelvemonth.
Small Size Compared to Competitors
When compared to rivals, such as Avon, Mary Kay is little in footings of gross. In 2008 Mary Kay ‘s gross merely exceeded $ 2.6 billion US. Avon ‘s gross for 2008 was more than $ 10.6 billion US, which is about five times more.
The ground for the large difference in gross is attributed to Avon broad assortment of merchandises that spread far from cosmetics. Its little size could do it difficult to vie with its rivals.
Peoples are Looking to Get down Their Own Businesss
Peoples around the universe are going interested in going enterprisers and get downing their ain concern. Mary Kay gives people a great chance to carry through merely that. There is plentifulness of room for promotion if that ‘s what people are looking for. Because of the promotion chances, Mary Kay has the possible to turn bigger every twelvemonth.
They already have over 1.7 billion advisers worldwide, and that figure is steadily increasing. Since the company is based on direct merchandising and independent gross revenues advisers, this gives them a immense advantage to steal the market from their rivals.
Selling Merchandises Targeted at the Baby Boomers and Generation Y
Mary Kay sells a broad scope of merchandises for consumers of all ages. They sell merchandises to profit the younger coevals and those of the babe boomers. This gives them the possible to catch gross revenues from a immense market known as the babe boomers. Most of the babe boomers are now around the age of 60 and older and may be looking for ways to look immature once more. Mary Kay ‘s Timewise aggregation is a perfect chance to put them in this market.
The company besides sells make-up and other decorative merchandises appropriate for today ‘s coevals so that they can remain in the current market after the babe boomers pass off.
Small to No Ad
Mary Kay Inc. has ever been focused on the thought of personal merchandising. The lone advertisement done by the company would be through their web site and the uneven famous person sponsorship. This becomes a menace because their merchandises may non be seeable to all demographics. The mean individual who has non been referred or been told about Mary Kay Cosmetics would hold about no thought the company existed and would n’t cognize about the merchandises they offer.
The decorative industry is a really competitory market worldwide. Mary Kay has to vie with companies such as, L’Oreal, Avon, and Estee Lauder to call a few. Most of the competition has their merchandises in retail shops with a immense sum of traffic on a day-to-day bases. Because of Mary Kay ‘s direct merchandising attack and the research involved in their merchandise, their monetary values are a small higher than most rivals. Price has a immense impact on consumer purchasing behavior. The changeless increasing in competition could impact the demand for Mary Kay ‘s merchandises.
As an influential leader in the cosmetics industry, Mary Kay Cosmetics has made societal duty one of their top precedences.
When Mary Kay Ash established her concern in 1963, one of the initiation principles she based her company on was the importance of giving back to others. Although Mary Kay passed off on November 22, 2001, her bequest and spirit has continued to alter the lives of others. Her life end of heightening the lives of adult females who lacked chance, self esteem, and fiscal support has been realized and is as concrete today as it was when she foremost opened her concern.Although “ heightening adult females ‘s lives ” is the company ‘s mission statement, Mary Kay applied this to her clients and community every bit good.
Mary Kay has been a proud protagonist of a figure of different charities, including the Salvation Army, the Red Cross, and the American Cancer Society ( Mary Kay Cosmetics ) . Mary Kay has its ain charities as good. “ The Mary Kay Charitable Foundation ” was founded in 1996 with a mission to “ stop adult females ‘s malignant neoplastic disease and domestic maltreatment ” ( Mary Kay Cosmetics ) . In 1997, one-year contributions were $ 500 000 and in 2009, rose to $ 5.8 million ( Mary Kay Cosmetics ) . These financess have gone towards a figure of different things including support for adult females ‘s shelters and community outreach plans for victims of domestic maltreatment.
In 1989, Mary Kay became one of the first companies in the cosmetics industry to present an extended recycling plan. The company has recylced over 300 000 compacts and has reduced their intoxicant waste by 10 metric tons. Mary Kay was besides one of the first companies in the cosmetics industry to bring forth reclaimable merchandise packaging. As a testament to their committedness to bettering the environment, Mary Kay has collectivley planted over 200 000 trees.
We recommend that Mary Kay get down looking into their advertisement scheme.
Direct merchandising is an of import manner to construct strong relationships with many repetition clients. One job is that repetition clients merely bring in so much gross each twelvemonth. Mary Kay ‘s deficiency of advertisement toward work forces could be losing them 100s of 1000s of dollars each twelvemonth. We do n’t anticipate them to alter their motto of ‘Enriching Women ‘s Lifes ‘ because that would alter the footing of Mary Kay ‘s beliefs when she started the company. We recommend an advertisement run to increase consciousness of the work forces ‘s merchandises sold.
Mary Kay should go on its direct merchandising attack without a retail mercantile establishment to maintain cost down and gross revenues burdens and incentives up so they do n’t sabotage their advisers.