Вы находитесь на странице: 1из 18


NSAC 2013


Despite being in the midst of a recession, the beauty industry is thriving. Instead of spending money on large investments, consumers are indulging themselves with smaller luxuries, a theory otherwise deemed as the lipstick effect. With the industry in such a positive financial place, many makeup brands are finding it to be the perfect time to reach out to new customers, specifically, the Generation Y customer. Mary Kays new campaign strategy should embrace the confidence makeup gives to women during a stage in their life when they are making their first principal skin care and makeup brand decisions. In order to successfully accomplish this, Mary Kay must first consider how the Gen Y woman buys makeup; with brand loyalty, free samples and gifts, and social media on her mind. Members of Generation Y display an unwavering loyalty to their beauty brands. Lower prices are not an incentive to break Gen Y consumers away from their current beauty brand either. 68% claim that despite being in the midst of a recession, they would gladly purchase their beauty brand opposed to a less expensive alternative. One of the most influential ways for a beauty brand to motivate a customer to purchase a product is through free samples. This method is especially successful for Gen Y consumers, who have been receptive to free samples as an incentive to buy a product in all category types. 54% of Gen Y women have scheduled their makeup buying to coincide with receiving a free gift with purchase. Social media is a growing influential force in all product categories, but especially for the beauty industry. Since the beauty industry is primarily based on appearance, social media offers a great platform for promotion. Many brands use Facebook to offer discounts and samples specifically to those who like the brands page. 42% of Gen Y women follow beauty brands on social media. Social media is also an outlet many beauty brands are using to share their involvement in philanthropic efforts, as a way not only to recruit people to their cause, but also to recruit consumers to their brand.

Millennial women want high quality products at a reasonable price, and that is Mary Kays specialty. However, Mary Kay does not have the strongest base of Generation Y women. Since Mary Kay already has the products the Gen Y consumer wants, what must be resolved is how to convert Millennial women to Mary Kay. This can be done by examining the following four brands that have a healthy relationship with the target: Avon, Clinique, M.A.C., and Maybelline.

The Company for Women Positioned as reasonably priced, moderate quality products with a wide range Uses direct selling, however, unlike Mary Kay, allows customers to buy directly from the Avon website Mary Kays most direct competitor Has Mark product line which not only has successfully attracted Millennials, but has attracted millennial Mark girls as sales reps Second most engaged brand on Facebook


Allergy Tested. 100% Fragrance Free. Positioned as dermatologist-approved, relatively high priced, high quality products Sells through department store kiosks and the cosmetic retail market, offers free gift set promotions and relies heavily upon personal selling Known primarily for skin care One of the first brands to embrace e-commerce, Clinique website offers live chats with consultants and quizzes to find skin care routine/ products, and also offers a Microsoft tablet smart bar at some kiosks Parent company Este Lauder reported a 7% rise in revenue during the 2013 fourth- quarter


Make-up Art Cosmetics Positioned as bold, high priced, professional quality makeup Sells through department store kiosks and the cosmetic retail market, relies heavily upon personal selling Gen Y darling MACs specific target market is Gen Y and MAC attracts Millennials with bold makeup and endorsements from edgy celebrities such as Lady Gaga, Ru Paul, and Nicki Minaj Has unprecedented Twitter following, in due part to utilizing employees personal Twitter accounts to further promote MAC brand and events Parent company Este Lauder reported a 7% rise in revenue during the 2013 fourth-quarter


Maybe shes born with it. Maybe its Maybelline. Positioned as low price, low quality products Sells through drugstores Popular with Gen Y due to low price Has smart phone apps such as ColorShow which allows users to virtually test nail polish Parent company LOreal Paris reported a .8% fall in revenue during the 2013 third quarter

Increase awareness among female consumers ages 18-25 Increase positive perception among female consumers ages 18-25 Increase consideration for product purchase and for the Mary Kay business opportunity among female consumers ages 18-25

One of the top ten makeup and skin care brands in the United States Well established brand with 50 years of experience 30% increase in Digital IQ Percentile Rankings Gen Y friendly product lines such as at Play, Botanical Effects, and Clear Proof Current average customer age is 20 years older than target age Limited awareness of brand by Generation Y women Short career length of many Mary Kay IBCs leads to loss of customers and a perception of unreliability



Generation Y is larger than the Baby Boomers, and are just now entering the workforce, making them the most influential market with the most purchasing power Continue to enhance social media presence to attract Generation Y women The product quality is high, so would only need to augment makeup style Larger direct selling beauty competitor Avon has had a successful millennial-based product line for years Overall decline in popularity of direct selling Drugstore beauty brands offer low prices that Mary Kay cannot compete with

Generation Y, specifically age 18-25, is one of the most essential, but elusive markets for brands to reach. Behind the consumer pulse of Generation Y is the Generation Y woman. For Mary Kay to successfully reach the generation woman, the brand must become aware and a part of her lifestyle. The Generation Y woman is a complicated consumer. She is fiercely independent and not easily swayed by traditional advertising, but she also greatly wishes to fit in and is significantly affected by her peers opinions. She loves fashion and is willing to pay a high price for high quality, but she also has a savings account to build, and knows when to sacrifice quality for a lower cost. She is confident and comfortable in her own skin, but she also constantly tries to better her appearance and herself in general. To understand her nuances, is to understand her. Socializing is paramount to the Generation Y woman, and media are her preferred method of communication. The Generation Y woman is extremely tech savvy and she yearns for a meaningful connection with her brand on social media and finds advertising on social media sites and through text messaging to be the most influential way for brands to reach her. She loves the mall, but she prefers to make a lot of her purchases online. But, before buying anything, she uses the Internet to research and determine potential product purchases. Advertisers cannot keep up with her, unless they keep up with her media.


(Age 18-20) VALS: Experiencer, Striver, Achiever PRIZMS: Young Influentials, Boomtown Singles, Up-and-Comers Emma Walker is a college freshman living away from home for the first time. She enjoys her newfound independence, but is slightly overwhelmed by her first foray into keeping a budget. She is also enjoying finding a new, more mature style and has noticed a dramatic departure from her high school fashions of just a year ago. She has not departed from her old high school friends though, and keeps up with all of them on social media. She has also made a lot of new friends at the university, and she goes to them for advice on just about everything. Emma spends her time going to class, football games, greek mixers, and visiting home. But, for each of these events and activities, Emma finds she needs a different look. That is why Emma buys a variety of inexpensive clothing and makeup products so she has the freedom to experiment and alter her look as she develops her personal style. She wants to feel bold, a little bit sexy, but most importantly, she wants to look like she fits in.


(Age 21-25) VALS: Achievers, Inovator, Experiencer PRIZMS: Executive Suites, Young Influentials, Boomtown Singles, Up-and-Comers, Brite Lites, Lil Citiy Maddie Russell is a second semester junior constantly busy keeping her GPA up, deciding on graduate schools, and her new internship at the museum. She is reliant upon technology to make her life easier, whether it be video chatting with her boyfriend in between classes on her smartphone or catching up on her favorite TV series online. Maddie has developed a personal style she is comfortable with, classic but still fun, and tends to stick with it. She finds she is more drawn to quality over quantity when it comes to clothes and makeup than when she was younger, but, she still tries to cut costs wherever she can. She is about to embark on a new, professional stage in her life, and wants her appearance to fit the role. She has a lot of interviews in her future and she wants to feel powerful, polished, and sophisticated.


(Age 20-25) VALS: Striver, Experiencer, Believer PRIZMS: Red, White, & Blues, City Start-ups, Young & Rustic Chrissy Ward works as a waitress at a chain restaurant. The work is stressful and her income isnt great, so she tries to save all the money she can for her upcoming marriage to her fiance, Trey. In her spare time, she can often be found looking for thrifty wedding ideas on social media sites. Due to her job, she often trades style for function, but she still likes to appear as professional and put together as possible. However, once the weekend rolls around, she embraces the opportunity to sport bolder clothes and makeup to go out with friends or dates with Trey. She and Trey both want children in the future, so Chrissy is always thinking of possible careers which would lend the flexibility for her to stay at home part time. She is on the cusp of major changes in her life and is drawn to brands that can provide good quality for reasonable prices that can grow with her. She wants to feel attractive and fun, but still mature.

To engage and understand the Generation Y woman, we employed a variety of research methods such as focus groups, observation, and online surveys. We were interested in what the Generation Y woman wanted and needed from a beauty brand, how they bought beauty products, as well as how they perceived Mary Kay as a brand. One of the biggest insights our research lent us was the relationship between quality and price and the role it plays in the purchase decisions of the target. We also interviewed former and current IBCs, as well as attending a Mary Kay party to further our understanding of the internal workings of Mary Kay as a business and how we could enhance current IBCs selling methods to further appeal to Generation Y.


We held 6 focus groups ranging from 3-6 participants each. We found that: They wanted good quality, for low prices. Many of the women said they would spend more on skin care products, viewing it as an investment in their skins health. Makeup is very important to the women, and all expressed a significant rise in confidence when wearing makeup. When sampling Mary Kay product, the participants mainly agreed that the makeup fit well with their style, which fairly surprised them. They thought that Mary Kay was for older women. Participants felt like Mary Kay was not trying to reach younger generations. The participants did not know where to buy Mary Kay products. Since the women claimed convenience of purchase was important to them, this lack of knowledge presents a major issue for Mary Kay. Many were aware of Mary Kay parties, but said they were not interested in attending one, due to a fear of pressure from IBCs. Being able to sample makeup before purchase was also important to the participants. They were not willing to buy before they tried the product. All of the women spent a lot of time on the web. Quite a few women stated they enjoyed watching makeup tutorial videos on YouTube.


Our interviews were made up of both former and current IBCs. The IBCs generally enjoyed their job and the relationships they built through it. They agreed that it is not until a woman tries on the product that a sale is made. This is why, as all the IBCs agreed, parties are by far their most successful means of selling The IBCs noted that when selling to Generation Y, price was the determining factor. They found Generation Y likes new, innovative types of products. They also found that when selling to Generation Y, appealing to them by their personal makeup style is just as important, sometimes even more so, than trying to appeal to them by their age. Current consultants love Generation Y and recognize the importance of attracting Gen Y as customers as well as potential IBCs. However, concern was voiced as to the price of the starter kit and the responsibility of the IBC position may cause younger women to shy away from the career.

Consultants liked the independence of the IBC role, but some wished they had more assistance from the company. They felt assistance would lend more consistency to the IBC community, a problem many of the women felt existed. When an IBC quits Mary Kay, the IBCs customers generally quit Mary Kay as well. The Mary Kay website was seen as a major weakness by the IBCs, who felt it was not user-friendly for the IBCs or the customers.


We conducted a range of observations to determine how women purchase and view makeup including retail makeup stores, department stores, and reviewing the At Play product line. RETAIL STORES These stores offer a wide range of products and brands in a clean, cool atmosphere. Their shopping companions affected their behavior. When alone, women appeared self-conscious while applying samples. When with friends, women tried on the makeup together and discussed how it looked and felt. In these stores, a lot of sampling was done, but very little purchases were made. Mary Kay products fall into the same price range as the products sold in retail stores. DEPARTMENT STORES Beauty products at department stores are arranged by brand, each brand getting a counter run by official sales people of the brand. The counters with the most interactive sales people visibly made the most sales. The sales people at these counters were highly knowledgeable about their brand and where able to make personalized suggestions and distribute samples based on these suggestions for customers. Mary Kay products fall into the same price range as the products sold in department stores. REVIEWING MARY KAY AT PLAY The reviewer liked the Mary Kay product she tried on, which included lip gloss, mascara, and eye shadow. However she had a major problem with the packaging and branding. She felt the product was highend, but the packaging led her to believe otherwise. She felt it was fun, but directed to someone far younger than she. SECRET SHOPPING We sent a woman in the target demographic to covertly experience a Mary Kay party. She said the experience was nothing like she thought it would be. She said she expected pushy IBCs putting pressure on her to make a purchase, but that was not the case. The IBC gave her a tray of makeup to try on and our secret shopper applied the make up on her own. Our shopper felt confident when trying on the makeup, which was aided by fellow party-goers compliments. Overall, she found the experience highly enjoyable.

Mary Kays marketing objectives can be achieved through improving its relationship and availability with the target. Currently, Mary Kay is seen as out-of-touch and out-of-reach by Generation Y women. Instead, Mary Kay must make Generation Y women aware that they are a realistic and reliable, moderately priced beauty choice. To do this, Mary Kay needs to make itself accessible to the target, which means they must be both physically and digitally where the target is.


The target feels Mary Kay is a brand for their mothers and not for them. Squarely, Generation Y women feel that Mary Kay is not even trying to reach them. They felt the overall branding was aimed towards women older than them and that the At Play line aimed towards women younger than them. The branding for Mary Kay in regards to Generation Y would need to be a balance between the two: the fun and frivolity of youth, while also sexy, sophisticated, and mature. Additionally, our research shows that the target overlooks Mary Kay due to the perception that it is out of their price range. Since price is a major factor in Generation Y womens purchase decision, we must make it known to the target that lines such as At Play and Botanical Effects are well within their average price range.


The target has made it clear that they will only buy a beauty product after having tried it. The IBCs have made it clear that they will only make a product sale after the customer has tried it. If we want Generation Y women to buy Mary Kay, it is absolutely essential that we give them the opportunity to experience it. Parties are a great way to do this, ; however, our research shows most Generation Y women have never been to one. That is why we must bring the Mary Kay party to them. Pop-up makeover events will take place in the target markets and college campuses across the country, giving the target easy access to the product. We will also launch a digital sampling program where women pay for samples through shared media. We just have to get the product in womens hands.


Mary Kay needs to be where Generation Y women are, and that is online. Mary Kay has established social media profiles, but these sites are far from reaching their full potential. We must implement a social media makeover in order to stay connected and build relationships with Generation Y women. The current social media profiles lack consistency, which makes the target feel like the profiles lack legitimacy. Mary Kays social media profiles, specifically its YouTube account, needs to provide exclusive and compelling material to draw new and current Generation Y users. Also, the Mary Kay website must become more user-friendly for both the IBCs and the Generation Y customers. Our research shows that currently, the target is not comfortable with Mary Kays online buying process. One factor contributing to the discomfort is the lack of customer reviews. Generation Y women are very tech-savvy and to sell to them, it is crucial that the IBCs keep up. Since Generation Ys online customers would be directed to IBC websites, we must ensure that IBCs individual online presence gives an impression of professionalism and validity.

TARGET AUDIENCE: To increase market share among women ages 18-25 by raising awareness and
positive perception through strategic marketing.

MEDIA MIX: To implement a media mix that includes digital and non-traditional media. REACH: To increase reach to 75% with a frequency of 5. SCHEDULING AND TIMING: To utilize a media mix that will include continuous and flighted scheduling
from February 2015 to February 2016.

MEDIA: To implement a media schedule with a budget of $10 million. GEOGRAPHY: To focus a media plan nationally and heavy-up within 10 DMAs and 25 colleges and universities with a high concentration of Generation Y women.

Internet $7,066,300.00

Radio Streaming $1,505,300.00

Product Placement $1,000,000.00 Mobile $200,00.00 Pop-Up Events $76,000.00 Websites $60,000.00


Begin with a heavy-up in February 2015; end in February 2016. Use a continuous national base of internet and mobile media. Flight movie product placement and sampling program nationally. Flight additional media weight in 10 DMAs with high concentration of target. Flight additional media weight in spot college campuses with high composition of target audience.

In order to ensure an effective campaign, weve researched the top 10 markets for Generation Y women. These cities contain almost 30% of the target audience. 1. New York City, NY 2. Los Angeles, CA 3. Chicago, IL 4. Philadelphia, PA 5. Dallas, TX 6. San Francisco, CA 7. Boston, MA 8. Atlanta, GA 9. Houston, TX 10. Washington D.C.

Colleges are the epicenter of many Generation Y womens lives. Based on current female enrollment data, the following universities deserve heightened consideration for Mary Kay promotion:
1. Michigan State University (MI) 2. Florida State University (FL ) 3. Texas A&M (TX) 4. Purdue University (IN) 5. University of California- Santa Barbara (CA) 6. University of CaliforniaLos Angeles (CA) 7. Ohio State University (OH) 8. Boston University (MA) 9. Penn State University (PA) 10. Arizona State university (AZ) 11. University of Central Michigan (MI) 12. University of Michigan- Ann Arbor (MI) 13. East Carolina University (NC) 14. University of California- Davis (CA) 15. University of Georgia (GA) 16. University of Texas- Austin (TX) 17. James Madison University (VA) 18. Illinois State University (IL) 19. Texas State University (TX) 20. University of Arizona (AZ) 21. University of California- Berkeley (CA) 22.Georgia Southern University (GA) 23.Virginia Tech (VA) 24.University of Pennsylvania (PA) 25.University of Washington (WA)


INTERNET $7,066,300.00


Whether on the computer or on their phones, millennials lives are heavily centered around social media websites. These websites are not only where Generation Y women connect with their friends, but also where they connect with the world.


YouTube allows for Mary Kay to share the IBC experience on a mass scale. Our research shows that many women within our target use YouTube as a means to learn how to apply makeup through video tutorials. The Mary Kay YouTube channel could also provide new material which would be shared across other social media profiles. We would also place pop-up and streaming ads during other YouTube videos aimed at 18-25 year old women. These ads would actively be able to direct women to the Mary Kay YouTube channel.


Facebook is a widely used site amongst the target and one that is checked frequently by users. Facebook also provides diverse advertising options.


Twitter has become a major media force with regards to the target. Our advertisements on Twitter will encourage shared media through sponsoring trends and heavying-up through a Pay with a Tweet campaign. Pay with a Tweet is a Twitter-based online barter program which allows Twitter users to pay for a product, such as a sample sized lipstick, through publically sharing about the product on Twitter.


Both Instagram and Pinterest are based on image sharing, which means both sites are perfect for sharing images of Mary Kay makeup and tutorials. At the moment, both sites are only beta testing hosting ads, so investment in these media would begin minimally.




Advertising through key words would ensure Mary Kay a spot on the first page of any beauty related search engine query. In addition to the SEO advantages, advertising with key words also means that Mary Kay column and banner ads will be displayed on various sites across the web which coincide with makeup and beauty products.

MOBILE $200,000.00

Smartphones are becoming more accessible and affordable than ever, meaning a large part of the Millennial generation are smartphone, or tablet, users. A smartphone app would not only further engage the target, but also, keep Mary Kay on the forefront of tech-savviness.

Many women within the target shop online. However, our research shows that the current Mary Kay website is not the most conducive for online shopping. A redesign of MaryKay.com would provide a smoother shopping experience. We would also start a frequently updated blog which will be authored by various IBCs chosen for the opportunity. The blog will cover beauty topics and tutorials and will help provide new content for the Mary Kay social media sites.

WEBSITES $60,000.00


Generation Y relies on streaming sites, the most popular by far being Hulu, to keep up with the gamut of their shows. Investing in Hulu will allow Mary Kay advertisements to be featured during prime network shows, without the prime time network price. Through streaming, the ads could be segmented to a viewing audience of only our target demographic.


The internet has provided the ability to share and publish entertainment pieces with incredible ease. This has led to a rise in effective organic, native advertising. While there are many habitual readers of the viral website Buzzfeed.com, Buzzfeed pieces have a very high rate of being shared and have a high retention rate. Personal bloggers such as Man Repeller, Love Taza, and Sea of Shoes have a wide network of fans who not only admire their writing, but greatly admire the authors as people. Bloggers opinions and style resonate deeply with their fans. Sponsoring posts and allowing the bloggers to hold Mary Kay giveaways would widen Mary Kays reach.




The Fifty Shades of Grey trilogy was an unprecedented hit among women, especially Millennial women. The movie adaptation is one of the most anticipated theatrical releases of recent times. For Mary Kay to be featured in the film would provide an incredible reach along with the benefit of perpetuity for years to come. Product placement price could be kept at a minimum through negotiating with the films producers. For instance, IBCs could distribute movie promotional material at parties during the movies run in theaters.


RADIO STREAMING $1,505,300.00

Opposed to traditional radio, radio streaming sites, such as Spotify and Pandora++, deliver a massive sphere of music available at no cost. The availability to personalize their radio experience paired with the convenience of being able to access it through phones, computers, and tablets makes music streaming a popular medium for Generation Y. Spotify and Pandora spots would be placed in the top ten markets for Generation Y women.

COLLEGE TOUR $76,000.00

Our research concluded that a large percentage of the target had never attended a Mary Kay party, so we plan on bringing the party to the target. Large-scale Mary Kay parties will be held on the 25 college campuses with the highest concentration of female students. Local area IBCs will assist in running the events while also reaping the benefits of whatever sales are made. The events will be held in late spring and early fall with each event lasting for two days. At the parties will be a digital photo booth. Photos from the photo booth will be posted on the Mary Kay website. This will drive the target to the page while also increasing Mary Kays shared media after the women repost the photos to their personal websites.


Student Professor Semester May 9 212.8 14 331.1 20 215.0 1191 15.2 31 733.1 22.8 1.4 20 215 13.4 1.5 51 948.2 33 1.5 20 473 16.6 1.2 20 511.9 17.2 1.2 20 473 16.6 1.2 20 496.6 17.2 1.2 1191 15.2 22 544 18.4 1.2 20 230.2 13.4 1.5 42 774.2 29.2 1.5 28 685.9 21.8 1.3 20 215 13.4 1.5 48 900.9 32.1 1.5 27 638.5 20.7 1.3 20 215 13.4 1.5 47 853.6 31.2 1.5 20 215.0 Jun 9 212.8 20 473.0 Jul 9 212.8 18 425.7 20 215.0 Allison Droke Sandy Utt Fall 2013 Medium Internet-Keyword/Search $(000) Internet-Sponsorship $(000) Spot Radio-Daytime Spotify Pandora $(000) Outdoor Pop Up Events $(000) National Only Area GRPS $(000) Reach Avg. Freq. Spot Only Area GRPS $(000) Reach Avg. Freq. Spot + National GRPS $(000) Reach Avg. Freq. 20 215.0 Feb 9 212.8 22 520.3 Mar 10 236.5 10 236.5 Apr 9 212.8 12 283.8 Aug 9 212.8 20 473.0 20 215.0 1191 15.2 28 685.9 21.8 1.3 20 230.2 13.4 1.5 48 916.1 32.1 1.5

Mary Kay Campaign

Sep 10 236.5 18 425.7 20 215.0 1191 15.2 28 662.2 21.3 1.3 20 230.2 13.4 1.5 48 892.4 31.7 1.5

Oct 10 236.5 14 331.1

Nov 10 236.5 10 236.5

Target Demo: Dec 10 236.5 20 473.0

20 215.0

1191 15.2

23 567.6 19.1 1.3

20 473 16.6 1.2

29 709.5 22.4 1.3

20 215 13.4 1.5

23 582.8 19.1 1.3

20 473 16.6 1.2

49 924.5 32.6 1.5


Ad-ology.com Avon.com Blog.Lab42.com BusinessInsider.com Claritas.com Clinique.com Digiday.com Executionists.com Forbes.com MAC.com Mary Kay NSAC case Mashable.com Maybelline.com Media Flight Plan Quantcast.com Strategicbusinessinsights.com