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Copy of Copy of Mary Kay in India

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Mohit Bhatia

on 17 November 2013

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Transcript of Copy of Copy of Mary Kay in India

Mary Kay in India


Table of Contents
Case Background
Case Analysis
Swot
4P's
Other research
Questions
Conclusion
Recommendations
Case Background
Founded in Dallas, Texas (1963)
Headquarters: Addison, Texas
Located in 35 countries in 5 continents.
Key people: Mary Kay Ash, Founder, David Holl, CEO
Net sales of USD 2.9 billion
Richard R. Rogers 1963, Executive Chairman
Employees, Staff - more than 2.5 million independent beauty consultants.
Over 200 products.
Manufacturing plants in Dallas, Texas and Hangzhou, China
Conclusion
What did we cover?
Successful worldwide, but failed in India.
It is still suspicious - "pyramid scheme".
Questions
Case Analysis
Marketing Mix
Recommendations
1. Understanding the political environment of India before entering India market.

2. Adapt to the India economy and localize some products.

3. Localized manufacturing.
S.W.O.T
Strengths
Established brand image
Strong financial position
Diverse portfolio
Strong international presence
Superior sales training
Strong buyback system.
Weaknesses
No manufacturing plants in India
Slow growth in revenues
Sales consultants don't have access to product in bulk
Volatility of direct sales
Weak control over sales consultants
Poor logistics and distribution channels
Opportunities
Higher demand for cosmetics
Demand for products that enhance self-esteem.
Threats
Economic environment
Competition (other brands)
Demand for substitute products (herbal and ayurvedic)
Changing regulatory environment
Weak infrastructure
Product
Trusted global name
Skin care, makeup, body care, perfume
Latest beauty advice
Makeup trends
Virtual makeover
Unparalleled business opportunity
Promotion
TV, magazines
Social media: Facebook, Twitter,
Youtube channel
Direct sales
Anyone can sell and buy products
Word of mouth
Pyramid Scheme”
Pink Cadillac
- (incentive for top salespeople)
Placement
Women
Age demographic 16-60
Good price for good value
Men
Retail sales
Online sales
Direct sales

Price
Affordable for teenagers and
middle class
Ranges from $7 – 50
Gift/package deals
Discounts on older collections
Reasonable price for products

1. What information should be included in a written positioning statement for Mary Kay?
Target audience
Men and women
Average middle-class consumers between 25 – 54
Product category
Beauty products: Skincare and color cosmetics
Grooming products: Spa and body fragrance
Product benefits
Affordable price
High quality and high-value products
Increase in self-confidence
Uniqueness
Good quality product at low price



2. How would you draft a formal, written position statement for Mary Kay using the information detailed in question 1?
“Affordable, high quality, beauty and grooming products for men and women”
3. Is Mary Kay a global brand? Why or Why not?
Productions are manufactured in different countries
Dallas and Texas, USA/ Hangzhou, China
The products are sold in many countries around the world
35 countries in 5 continents around the world
One single strategy is used worldwide
Selling cosmetics

Other Research
20 million dollars invested between 2007 to 2012
Shut down operations due to regulatory environment.
Ban on Multi-level Marketing
Led to poor performance
Indian cosmetic industry was growing at 20% per year.
Company research
International Vs domestic
274 billion dollar market vs 4.6 billion dollar market in India
170 billion dollars revenue vs 1.2 billion dollars in India
International brands only capture 20% of the Indian market
Low penetration levels due to comparatively higher prices
Est 10 million women buy international brands
Economical affordable prices compared to international brands ($3-8 vs $15-25)
Smaller packages
More targeted for the indian market
Mary Kay Ash
"Do on to others as you would have them do on to you."
"God first, family second, and career third."
Named one of America's 25 most influential women.
company background
Growth opportunities in Asia pacific Market
Australia, China, Hong Kong, Korea, India, Malaysia, New Zealand, Philippines, Singapore
China represents 25% of company sales (200,000 sales reps.)
Whitening skin care products (skin cream, anti-aging)
Mary Kay, India
Three reasons for entering India
Upper-class was growing.
Young population
Growing number working women.
India's social economic characteristics similar to China.
Mary Kay culture was a good fit for India culture.
Build brand, effective supply chain, sales-force.
At 2007 invested 20 million for the next 5 years.
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