Mary Kay Ash is the founder of Mary Kay Inc. Cosmetics in 1963 with a start-up capital only $5,000 and support of her 20-year-old son, Richard Rogers, who currently serves as executive chair of Mary Kay, Inc. Mary Kay Ash aim of starting the cosmetics company to support her son and become an entrepreneur in the competitive market. Mary Kay Ash’s founding principles were simple, time-tested, and remain a fundamental company business philosophy. She adopted the Golden Rule as her guiding principle, determining that the best course of action in virtually any situation could be easily discerned by “doing unto others as you would have them unto it.” She also steadfastly believed that life’s priorities should kept in their proper order which to her meant “God first, family second, and career third.” In late 2010, Sherly Adkins-Green received a request from general manager for India to provide a hair care line for women. As vice president, Brand Development, at Mary Kay, Inc., Adkins-Green responsible the development of Mary Kay brand and portfolio around the world and global initiatives and products. The request for a hair care line came in the heels of a request for a bar soap in India. She approved the request and Mary Kay India subsequently introduced a bar soap in October 2010, which was manufactured in India. The bar soap brand, Lotus & Bamboo Indulgent Bath Bar, represented the first time Mary Kay, Inc. approved a customized product for a specific country of regional market. Mary Kay, Inc. initiated operations in India in September 2007 with a full marketing launch in early 2008. Senior management believed that India represented a growth opportunity and Mary Kay culture was a good fit with the Indian culture. In addition, would benefit the company’s venture into this market. Senior management also believed that Mary Kay would need to perform three tasks for the company to be successful in India. Specifically, the company had to build a brand, build a sales force, and build an effective supply chain to serves the sales force. The company’s approach to direct selling employs the “party plan,” whereby independent sales representatives host parties in a customer’s home to demonstrate and sell products. Mary Kay initially introduced 60 products to India and by late 2010, the company offered over 90 products. Furthermore, Mary Kay executive believed that brand building in India involved media advertising, literature describing the Mary Kay culture, the Mary Kay story and image, and education material for Mary Kay independent sales representatives. In addition, Mary Kay arranged to be the cosmetics partner of the Miss India Worldwide Pageant 2008 and Mary Kay Miss Beautiful Skin 2008 was crowned at this event.
2.0Problem (issue) Statement
The main issue is deciding which way is the best way and when is the best time to enter the market. One of the biggest issues is deciding the perfect time to launch the product in India. Some thought, the main concern was if they introduce a drastic change too soon in dermatology industry, they believed that the industry needed more time to alter the company and the products that already existed. However the executives believed the hair care line would be a great investment in the Indian market, according to the request for the hair care line by Mary Kay Consultant in India. MKC made sure to put customer satisfaction as a priory in the India market due to its growing capabilities on the hair care brand. They constructed their prediction for the MKC hair care brand base on the success of the ‘Loctus & Bamboo Indulgent Bath Bar’ by Mary Kay whether it was accepted by beauty consultants and consumers in India. Taking into consideration entering the hair care market, they looked up to the Indian beauty market to support their decision and they believed that by adding this brand they will be adding ‘more alternatives for existing and potential beauty consultants’. Doing this will help to open their market and facilitate with them to become the number one in the direct sell market.
The most common difference between the executives is that MKC that they shouldn’t based their prediction of the success of the bar soap. The main reason is because it is a one product in a different category, and based on MKC direct seller, they couldn’t believe that they could train or even have proper resources to represent the shampoo and conditioner product. The executives that supported this concept to be launched as a hair care line in India. The issue with launching this product that it only appeals to only the India market because it have essential oils. The second issue that MKC faced is about the marketing of MKC hair line, how they should launch it to make sure it’s successful. They also have asked some of the executives that represent the Indian market, to examine the packaging options. Based on their success with other products launched into Indian market, the product developers were confident they could develop a product and be profitable with the shampoo and conditioner being sold separately. Although, they were sure of the product it was never an agreed on how the package of the product will be. They had two options in which they were either sachets or bottles. This was an essential factor because the individual sellers would directly be responsible for carrying the products. The solution that was making the amount of inventory limit it to two shampoos since it is newly introduced to the market. Product price and cost consideration were also discussed. MKC does not produce the hair care products nor the content that it would be stored in. It is forecasted that if they will manufacture 100,000 units, than they would not make a profit off the product. With this being an opposing question, do they have enough support and affordable resources available to supply and deliver the hair care line. Another cost that can pose a dilemma is the advertising, promotion and the actual sale of the MKC. Before the launch of the products, MKC in India used different branches to make a brand for their products in India. It includes billboards, sponsorships such as the Miss India Pageant, print and television advertisement, and catalogue. They predicted that if they decide that they would launch their product in the same direction it would cost roughly around, $650,000 for the first year of production. They also, had to budget the actual cost to train the direct sellers on how to use the product. Based on the information given Sheryl Adkins-Green, the product developer decided to go with the launch of the hair care line for India.
Mary Kay, Inc. initiated their venture in India in September 2007 by early in 2008 Mary Kay had fully launch their marketing. Senior management believe that India represented a growth opportunity for three reasons. Furthermore, Mary Kay culture would be a good fit with India’s market culture and benefit the company’s venture, due to the fact that industry research was showing modernization of India that can led to changing aspirations. In addition, influence people to be well-groomed and stylish.
The first reason Mary Kay saw the growth opportunity which is Indian upper and consuming classes were growing, expecting an estimated total over 500 million individuals. Second, the population was overwhelmingly young and optimistic because they found that the median age was at 26 years old which is the youthful population continued to blur the line between luxury and basic items. Third reason, in India’s urban areas there was a growing number of working women that had given boost to sales cosmetics, body care, skin care, and fragrances where the great majority of the country’s middle-class women live in.
Mary Kay believes that in order to be successful in India, the company needed build a brand, sales force, and an effective supply chain to service the sales force. Mary Kay also need a strong creating media advertising, literature of the brand’s story and image, and educational information for the independent sales representative to make people trust their products. In addition, in 2008 Mary Kay decided to become the cosmetics partner of the Miss India Worldwide Pageant for their fully marketing brand recognition launch. Mary Kay also used a strategy called “mass-tige pricing” which means their products pricing focus on offering affordable price basic skin care to the average middle class Indian customers between ages 25 and 54. The strategy basically placed their products on the lower price end of the prestige category of skin care based on their implemented the high quality and technology advanced of their products.
Therefore, the hair care products line is acceptances and growing with the changes of hair care habit of customers in India. The hair care product line offering in India by Mary Kay was pretty successful and in time. Indian consumers on average having a unique hair care habits which is use shampoo infrequently, usually once every 7 to 14 days. Urban middle-class consumers typically using shampoo more frequently than rural consumers and due to the large average measure millilitres per shampoo because women in India traditionally wear their hair longer than women in Western countries. After all, hair cares like shampoo and conditioner are not as easily as soap bars to be accepted in India because changing their lifestyle for most Indian consumer.
The sales volume of Mary Kay India hair care line estimated scale of production of the total of 600,000 units of the 6 millilitre sachets, the total cost of production and distribution would probably $600,000. The highest estimated total cost of production and delivery for the 100 millilitre bottles would be $1,410,000, the lowest sum would up to $1,110,000. Therefore, consideration of advertising, promotion, and sales, the costs would probably come to $705,000, while the highest total amount of sales could be even more than $2,715,000.
4.0Key Decision Criteria
Mary Kay has a marketing plan that is referred to as a guideline that aids a business or organization in establishing the method of interaction between the potential customers and given products. It is used as a directory to evaluate the needs and wants of potential client. This is one of good remedy in the decision criteria to aid Mary Kay India performs better than the previous years. However, situational analysis is a method that the management of a company uses to examine the capability of the environment towards its customers. This process goes hand in hand with a marketing plan and is a very effective method that is used to create to stable relationship with customer. In this situation, analysis method like pointer five force, SWOT an 5c analysis are used to critically examine the business environment. Besides that, not is a lot of competition from other entities in the market. So it is essential to conduct a survey to determine the strengths, weaknesses, opportunities and threat of the product. Through the investigations that carry out, it is easier to access the position of the hair care products by Mary Kay India. The situational analysis clearly defines both the micro and macro environment that may affect the development of this product. So, the competitors companies should be critically analysed to investigate why customers would prefer their product to Mary Kay India. In addition, is essential that the marketing team come up with a marketing research and strategy to enhance the growth of their company. From this, there different strategies that are most suitable for enforcement a good marketing plan. The positioning research is a marketing strategy that use to compare different product of the competitors that may be similar it is vital to use this marketing tool to establish the weakness and strength of the competitor product or to improve the product.
The brand name survey is another marketing strategy that is of essence in a marketing plan. This entails research on product that a marketable due their brand name of a product aids it more on the sales and popularity among customer. This is consider an effective technique that marketer in the corporation can use to evaluate whether the hair care product have a suitable brand name for their product. However, from customer satisfaction research is a survey carried out to determine whether the customer are happy and satisfied with the service they receive from the given product. In addition, test marketing is another strategy that can be used to evaluate the micro and macro environment. The corporation should be able to carry out a test analysis to get feedback from the global market based on the performance of the hair care product.
The most crucial part when establishing a marketing plan is the customer satisfaction. From this situation, customer are kings of any given company or business, and their satisfaction is of the utmost performance for success. For example, us questionnaire is one of the method that can be used to acknowledge customer satisfaction. By customer filling a questionnaire they are able to relay their view and opinions. This item in some of decision making from the Mary Kay company and also kind of loyalty. Customer loyalty is essential in any given marketing plan. It is how the customer determine the success and failure of any given company or business venture. Some important to take into consideration the fact that customer loyalty should be looked into keenly. For example, coupon, and special offer are some of the strategy that can be used to ensure customer loyalty. Then, promotions and free sample are also a strategy that can be used to ensure that customers are satisfied with the product.
Lastly, the market segments that the company will market to are especially women because these hair products are meant for them. So, they are the most suitable people to target because they can be relate to some of the suitable variable that should be used in this segmentations or advertisements, promotion, gift voucher and competition. By the buying decision process deals with consumer’s decision that is made after the purchase of a product. So it is essential to critically follow buyer decision process for positive result regarding the product.
In order to make Mary Kay performing better, of course marketing plan is the basic way and the most important thing to do with the help of guidelines. This is to establish the methods to interact with potential customers and the given products. It is also essential to use it as a manual to evaluate the needs and wants of Mary Kay’s clients. Mary Kay should also use situational analysis as a method to examine the capability of the environment towards its customers. If these processes continuously practiced, the marketing plan would be very effective to create a stable relationship with the customers. Moving on to deep evaluation of the alternatives, Mary Kay’s just recently introduced their skin products in lines but still stressed out with the local brand awareness, brand exposure and brand loyalty. The market penetration strategies in India were mostly focused on accessibility of priced skin care products. Making a new product line might be an issue through the market penetration strategy for brand building. However, it would be beneficial to Mary Kay as long as the scope of the company goals and mission statement products are fit. But then again, as mentioned in generating the alternatives, they believe that it may take time to adapt with current products.
Customer loyalty is an essential way in Mary Kay’s marketing plan. It represents the evident to determine the success and failure of the company. Customer loyalty should be taken into account to be looked into clearly. Mary Kay may have benefits to provide customer loyalty which literally build loyalty towards the company. From here, the customers are willing to purchase from them and feel that Mary Kay is concerned about what they need. Their customers also becoming a regular customer to Mary Kay as it place a high value as well to emphasize the customer services. The more loyal the customers are, the more likely for them to refer Mary Kay to promote to their relatives where it is confirm that their product is qualified.
Despite on the positive outcome, there is a limitation as well if Mary Kay provides a customer loyalty such as Loyalty cards and so on. Although they want to maintain their customer loyalty, it is a bit of lack of innovation. They stick to customer oriented which may result in resisting ideas to improve products so they result in less innovation. Another limitation that Mary Kay may encounter is that, it became self-serving. This is because Mary Kay will cause their business to indulge in the customer’s needs and wants for example, concentrate only on profit when the customer is actually lose far behind.
Produce a different bottle size to match with other competitors:
Producing a different bottle size for example, 6 milliliter and a 200 milliliter bottle of shampoo and conditioner. Most of the competitors use bottle packaging standard. But Mary Kay uses a sachet package size for their products. This can allow Mary Kay to align with the competition with other company and they can also reach various income level of consumer in India. Moreover, Mary Kay will be able to design, develop and launch the product strategically and cautiously.
Producing different bottle packaging may not be adapted by the consumer as some of the consumer doesn’t want to accept change. They would prefer bottled products because it contains more than sachet.
Strong Engagement with supplier:
Building a strong relationship or engagement with a supplier can be a strategic plan for Mary Kay since they depend on the suppliers. The suppliers can have the best interest of Mary Kay India. They should be in a position to figure out the suppliers in order to make the products into a higher level. With a strong engagement with the supplier, Mary Kay in India will be able to keep their product flow smoothly. It is also a way to support their goal to provide high-quality products to the independent sales force and the consumer as well.
If Mary Kay India builds stronger relationship, it can result in late responsive with the supplier where there is a risk for them to lose contact.
Identify the closest competitor:
There are a lot of competitors from other market of Mary Kay in India which includes both direct sales and manufacturing companies. Competitive analysis can give the ideas and methodology that can be applied in Mary Kay, for instance, the new product line can be identified by doing research of the closest competitor such as Avon. This may allow Mary Kay India positioned their product lines effectively to make sure that it identifies the competitive rivalry. Moreover, they can improve the product offering as well.
It can be a negative outcome when the competitors change its nature. It is one of the strategic concerns in the design of Mary Kay product line. Both the mass and upscale segments of the skin care marketplace are perceived to be changing constantly.
Mary Kay’s company would develop more hair care products with the specific functions to satisfy the demand of customers. The hair care product line of Mary Kay need to introduce in India, because the labor price in India is pretty low, which illustrates that the cost to produce the hair care products become more controlled easily. In addition, according to the basis of the highest total amount of sales could come to $2,715,000 for Mary Kay, which means the profit in India market is huge. From the upcoming decades, the transformation of lifestyle among young Indian consumers can increase the number of people who tend to use hair care products in India.
7.0Action and Implementation Plan
The implementation strategy of the Mary Kay India Company by implementing the five years of planning will be beneficial to the products of Mary Kay’s company. This will be in the angle of the improvement of the items stipulated inside five year long. The main product objectivity that is most certainly well-suited for the five years of plan is customer royalty. Mary Kay India organization should cater for their customers’ needs over the five years and ensure that their products maintain high quality. Practically results in the business increase acclaim to a brief time furthermore forgotten after a few years’ time. This is due to poor managerial skills and misplaced product objectives.
It is basic for the organization to guarantee that their items are in arrangement with the five-year design of the organization. This is regarding advertising spending plan, valuing technique and market division. The items need to compliment the five year design of the organization such that their esteem and worth increments after some time. Items regularly have an existence cycle, which they need to hang loose. Each phase of an item has a particular work that it needs to perform to solidly satisfy item goals.
Mary Kay India Organization should to consider entering their items into an existence cycle over the five-year design. This will guarantee that their items create as per the new innovative advances and plans. Each phase of an item life cycle has diverse targets and techniques set up. Mary Kay India Organization should consider enlarging their showcasing techniques to satisfy item objectivity. If the company adheres to the five-year plan put in place then the product objectives will fall in place automatically.
Current execution evaluation is fundamental to all associations with a specific end goal to improve and keep the execution of workers on track. Execution examination is a procedure that the administration of an association does to decide the execution of their employees in the working environment. It is fundamental to evaluate employees infrequently to decide if the points and objectives of an association are being met by the work execution of the employees.
An organization that does not carry out performance appraisal most of the times ends up with employee dispute. This is because the employees should be accessed all the time to build the activity execution. An effective association requires that employees that are evaluated to determine as whether the primary goals of the organization are met.
The execution of the employees is the thing that will decide if they have a future with the organization. The estimation of their work is additionally investigated, remembering their abilities. Current execution evaluation process decides the eventual fate of an organization to a huge degree. Execution evaluation process should be done frequently to maintain a strategic distance from any accidents that may crash into the principle goals and reason for an organization.
Communication is a key tool in ensuring that an organization’s operations run smoothly. It is basic for an organization to encourage how they speak with their workers. This is for the most part accomplished through performance evaluation, which should be done on a standard premise. With an open communication between the business and workers, an organization’s destinations and points are normally met. Performance examination has been said to advance trust among managers and workers. This will guarantee that both the bosses and workers have a typical vision in elevating the association to a more elevated amount.
Numerous employees expect inspiration to convey quality work. Performance examination process is a motivational instrument that will guarantee representatives are continually buckling down and brilliant to secure their employments. This will likewise guarantee that the organization identifies which employees require more preparing to boost their potential than others. It is a confirmation that the present performance examination process is effective in any offered organization to convey greatest yield from workers.