Mary Kay Case Study by Jessica Laurello

A Mary Kay Case Study 11.12.2013

Table of Contents The Target demographics psychographics and lifestyle Relevant attitudes and behaviors The target and makeup

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Conversion current mary kay consumer potential consumers Whatâ&#x20AC;&#x2122;s missing E-commerce

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The Market Avon products, inc. Lâ&#x20AC;&#x2122;oreal S.A. The proctor and gamble group

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The Mary Kay Experience The Mary kay party Mary Kay online Empowerment? corporate and social responsibility measuring the experience

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Key insights Main insights from this research

Unique research methods two-face technique Research trick: a fun party

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The Target

DEMOGRAPHICS Age and Gender This study focuses on women randing from ages 18-25

Ethnicity Millennials are an incredibly diverse generation – more so than any other preceding generation. Only 60% are white, while 19% are Hispanic and 11% are African American (Pew Research Center, 2010).

Household About 40% of Millennials were raised by a single parent or not raised by their parents at all (Pew Research Center, 2010). When forming their own households, Millennials are 75% more likely to live with 5+ people (Symphony IRI Group, 2013).

Finances Despite earning less money than other population segments, the spending power of Millennials is increasing, which is why so many brands are marketing more towards this segment (AIMIA, 2011). However, our target does have financial insecurities. They feel less confident about their financial situation today, versus a year ago (Symphony IRI Group, 2013). For example, 36% of them depend on their family for financial help (Pew Research Center, 2010). Because of this lack of confidence, Millennials are eating out less and going to the hair salon and spa less (Symphony IRI Group, 2013).

Education Millennials place great value on education – they’re “on course to become the most educated generation in history” (Pew Research Center, 2010). Sixty-three percent of them have college degrees or plan on getting them (Ibid.). When getting their degrees, Millennials also have other major responsibilities – ¼ of Millennials are in college and employed at the same time (Ibid.). However, there is a bit of a gender divide in education, since Millennial women are more likely to go to college than men (Ibid.).

Employment Most Millennials are employed. Two-thirds of them have either full-time or part-time jobs (Pew Research Center, 2010). Seventeen percent of Millennials are currently unemployed but actively searching for a job (AIMIA, 2011). One major difference between Millennials and other generations is their attitude towards work. Millennials are the only generation to not “self-identify with their jobs” (Turner, 2013).

Geographics

Source: Carmichael, 2011

Millennials are most likely to live in urban areas (Pew Research Center, 2010). The cities with the highest populations of Millennials are New York, LA, Chicago, Dallas, and Houston (Carmichael, 2011).

Psychographics and lifestyle Religious beliefs Millennials are the “least overtly religious American generation”. One quarter of them have no religious affiliation (Pew Research Center, 2011).

Technology Millennials are the first generation to grow up with “ubiquitous information” aka the Internet (Turner, 2013). They are also the first “always connected” generation (Pew Research Center, 2010). In fact, most Millennials think that what makes their generation unique is their technology use (Ibid.). Not surprisingly, Millennials “outpace older Americans in virtually all types of Internet and cell phone use” (Ibid.). Seventy-nine percent of Millennials own a laptop, 48% have smart phones, and 92% check their email regularly (AIMIA, 2011).

Source: Pew Research Center, 2010

Source: Pew Research Center, 2010 Our target doesn’t just use more technology than previous generations; they also use it in different ways. For example, Millennials are masters of multitasking. While watching TV, 66% of 18-24 year olds are on their cell phones and 58% are online (Microsoft Advertising, 2013).

Priorities and life goals In one study, female Millennials were compared to male Millennials in terms of their priorities. Female Millennials placed more emphasis on financial independence, taking care of myself/me time, feeling attractive to the opposite sex, being married/in a committed relationship, expanding your education, seeing the world, owning a home, and being a parent (Mack & Miley, 2009). Men placed more emphasis on having a career and owning their own business (Ibid.). According to Millennials, their most important goal in life is to be a good parent, which has been the same goal of the past three generations (Pew Research Center, 2010). Their second most important life goal is to have a successful marriage (Ibid.). However, they are less likely to be married or have children when compared to earlier generations (Ibid.). Among Millennials, the top two factors for happiness are “providing for your family and yourself ”, and “having close friends and family” (Symphony IRI Group, 2013).

relevant attitudes and behaviors Brand Interaction Millennials love interacting with brands, and they love when their favorite brands interact with them as well. Millennials favor brands that have a social media presence (The Boston Consulting Group, 2013). Forty-two percent of Millennial women follow beauty brands on social media (Millennial Marketing, 2013).

Sharing Brand Preferences 86% of Millennials are willing to share their brand preferences online, which is more than any other generation (Edelman/StrategyOne, 2011). In fact, 76% of 18-24 year olds “regularly forward product information and links” (Microsoft Advertising, 2013). 49% of them have reviewed a product online (Ibid.). Millennials think that by sharing their brand preferences, they are furthering their personal brand; therefore, they only choose brands that they believe align with their values and personality (Ibid.).

Pre-Purchase research 86% of Millennials are willing to share their brand preferences online, which is more than any other generation (Edelman/StrategyOne, 2011). In fact, 76% of 18-24 year olds “regularly forward product information and links” (Microsoft Advertising, 2013). 49% of them have reviewed a product online (Ibid.). Millennials think that by sharing their brand preferences, they are furthering their personal brand; therefore, they only choose brands that they believe align with their values and personality (Ibid.).

Pre-Purchase research On average, Millennials go online to look for product information 7.4 times per month (Edelman/Strategy One, 2013). Thirty-five percent of our survey respondents said they searched for product reviews online before making a purchase (Turtlz Research, 2013). The top two sources that Millennials refer to before purchasing a product are reviews from family and reviews from friends (Edelman/Strategy One, 2013). Eightythree percent of our survey respondents said they value recommendations from friends when trying a new brand (Turtlz Research, 2013).

Source: Edelman/Strategy One, 2010

The “Fun factor” Out of all generations, Millennials are most likely to shop at a store because of its fun atmosphere and shopping experience (Symphony IRI Group, 2013).

Effective Advertising Methods Online is the “best way to reach Millennials” (Turner, 2013). In the past month, 47% of Millennials clicked on an online ad (Microsoft Advertising, 2010). 72% of 18-24 year olds said experiential marketing would make them more receptive to the brand or product (Floren, 2006). 58% said it would lead to a quicker purchase (Ibid.). In terms of purchasing makeup brands specifically, free samples are the “number one way to influence women to try a new brand of makeup” (Kempfer, 2013).

Opinions of mary kay Overall Line Millennials currently do not see Mary Kay as a brand for their age range. In our focus group, the words most associated with Mary Kay were “mature”, “fair quality”, and “older women” (Turtlz Research, 2013).

Mary Kay @ Play At our makeup party, the guests were very impressed by the quality of the makeup. Almost each guest bought at least one Mary Kay product. One blogger appreciated how easy the collection was to use (Beauty Reflections, 2013). However, our focus group was not impressed with the advertising and packaging for Mary Kay. They saw the design as being too childish and not sophisticated enough for an 18+ audience (Turtlz Research, 2013).

Botanical Effects According to Makeup Alley, Mary Kay’s Botanical Effects line received four out of five stars, and 77% of users said they would purchase the line again (Makeup Alley, 2013). Users commented that the line is less expensive than some other alternatives, lasts longer than other skin care products, and works incredibly well (Ibid.).

Clear Proof Acne System Mary Kay’s clear proof acne system has received good reviews overall. One blogger says she swears by the treatment gel that comes in the kit (Adore A Polish, 2013). Another said that because of Clear Proof, her skin “has never been so clear or smooth” (Ricci Explains It All, 2013).

opinions about direct selling Out of everyone we surveyed, only 2% have ever bought makeup from a direct seller like Mary Kay or Avon (Turtlz Research, 2013). As Mila, one of the makeup users we interviewed, said, “Our generation is all about instant gratification” (Ibid.). As Katie, another interviewee, said, “They’re not easily accessible. You might have a great product, but if I can’t get to it, I’ll use something else that is equally good from a store” (Ibid.).

Salespeople preferences In terms of in-store beauty salespeople, only 12% of women feel more comfortable when the salesperson is their age (Color Cosmetics, 2012). However, this number increases to 21% for women 18-24, meaning that young women place a higher importance on beauty salespeople being the same age as them (Color Cosmetics, 2012).

The Target and Makeup Learning to wear makeup Most Millennial women (61%) start wearing makeup between ages 13-15 (Kempfer, 2013). This is an issue highly disputed among mothers; there are thousands of blog posts and discussion boards discussing when girls should be allowed to wear makeup. Some mothers allow their daughters to wear only natural-looking makeup, others allow makeup on special occasions, and others do not allow makeup at all. On a discussion board, one mother commented that for her daughter’s 14th birthday, she plans to take her to a professional to teach her the right way to apply makeup (CafeMom, 2013). One group that is very receptive to brands that offer skin care solutions are categorized as “Open Olivias” by Mintel (Faye, 2010). They comprise 44% of the sample of female shoppers, and many in this category are 18-24 (Ibid.). Seventy percent of the women in this group look for products that improve skin tone and protect from the sun (Ibid.).

Why they wear makeup Overall, wearing makeup seems to be an enjoyable experience for our target market. Sixty-five percent of Millennial women say they “enjoy the ritual of putting on makeup”, compared to only 45% of all women (Millennial Marketing, 2013). Sixty-nine percent of Millennial women wear makeup to show their personality, compared to only 55% of all women (Ibid.).

Ninety-four percent of millennial women say that makeup makes them feel confident, and 95% say they use makeup to enhance their features (Kempfer, 2013). 95% use it to enhance their features (Ibid.). On the negative side, 84% of Millennial women say they use makeup to hide their flaws, and 36% feel obligated to wear makeup (Ibid.). In summation, the makeup ritual is an enjoyable one for Millennials, and they feel that makeup helps them feel confident, express their personality, and enhance their features.

Source: Kempfer, 2013

Attitudes towards makeup When wondering at what age women become confident with their makeup, the truth is that some women never do feel totally confident about it. Twenty-six percent of makeup wearers aren’t confident in their ability to put on makeup (Color Cosmetics, 2012). At the Mary Kay makeup party that we hosted, we repeatedly heard the women in the group asking for makeup advice. One girl said, “How do I do my eye shadow? I don’t know what I’m doing” (Turtlz Research, 2013).

Where they buy makeup Most buy their makeup at mass stores like Wal-Mart, Target, Kmart, and Costco due to the stores’ “selection and value” (The Beauty and Personal Care Consumer, 2012). Over half of our survey respondents said they buy makeup in drug stores (Turtlz Research, 2013). Household income is not a factor in whether respondents choose mass stores or not (The Beauty and Personal Care Consumer, 2012). Our target buys different types of makeup in different locations. Women 18-24 will often buy products like foundation at “prestige retailers” and products like nail polish at mass retailers or drug stores (Color Cosmetics, 2012).

What they want in their makeup Young consumers are highly interested in multifunctional products that come with multiple use benefits (The Beauty and Personal Care Consumer, 2012). The paradox here is that while multifunctional products are doing well in the market, they also lead women to â&#x20AC;&#x153;do more with lessâ&#x20AC;?, which could lead to lower sales overall (Ibid.). Women want the ability to test the product prior to purchasing it. Forty-six percent of makeup wearers want to be able to sample makeup before a purchase, which is usually not done at mass retailers (Color Cosmetics, 2012). Women also want convenience in their makeup. Out of all age groups, women 18-24 are the most likely to use makeup that comes with its own applicator or wand instead of buying an applicator or wand separately (Color Cosmetics, 2012). Out of all age groups, women 18-24 are most likely to use long-lasting makeup like waterproof mascara (Ibid.).

What they want in their makeup Compared to all women, women 18-24 are more likely to buy mascara, concealer, foundation, eyeliner, eye shadow, lipstick, lip gloss, and nail polish (The Beauty and Personal Care Consumer, 2012). They are less likely than other segments to buy brow pencil/powder and blush (Ibid.).

If millennial women could only wear one product for the rest of their lives, they would choose mascara (Kempfer, 2013). In terms of the seasonality of makeup, 58% of millennial women use different products for winter and summer (Ibid.). In terms of brands, 51% of women prefer brand-name makeup, which is 20 points higher than women overall (Waite, 2013).

Daily routine Most millennial women (42%) spend 6-10 minutes each day on makeup (Kempfer, 2013).

Daily routine There has been an upswing in brands that have created skin care lines for younger Gen Y women (Wischhover, 2013). Skin care is especially important for those who smoke, donâ&#x20AC;&#x2122;t protect themselves from the sun, have unhealthy diets or poor sleeping habits, and are stressed (Ibid.).

conversion

Current mary kay consumer a growing younger demographic A study by Mintel points out that Mary Kay’s “products are sold by people who are part of the shopper’s community. These salespeople understand the ethnic, economic, and other conditions of their home turf. Hence, they know what local shoppers want and like, and have close, one-on-one relationships with repeat customers. In ethnic communities, this can also involve speaking the customers’ languages (Fay, 2011).” That being said, consumers are not part of a single demographic group, but are a representation of Mary Kay’s diverse sales personnel. About 60% of the consumers and sellers of Mary Kay are 31 years old or older and a growing 40% are 30 years old or younger (Glazer, 2013). While Mary Kay is increasingly optimistic about its younger market, the reasons for the company’s shift in sellers and consumers are purely economic. As America hit a recession, many young women were looking for sources of income to keep their families (and themselves) above water. Helaine Olen, a writer for Forbes.com, recalls attending a Mary Kay party. The sales person’s husband had lost his job and she turned to Mary Kay in order bring in additional income (Olen, 2012). As many young women with similar economic needs turned to Mary Kay, the company saw a shift towards a younger, lower-middle income consumer from its more prominent older, upper-middle income consumer.

How they became users As Mary Kay prides itself on low promotional efforts, many of its customers are first introduced to the brand by word-of-mouth of their friends and family (Bielby, 2012). The trial period then follows as young women sample the products provided to them by friends, family, or a Mary Kay party. For a consumer to adopt Mary Kay, a couple of things must happen. First – pertaining to all brands – a consumer must like the way the cosmetic makes them look and feel. Second - and pertaining more towards direct selling – is that a sales person must be readily available at all times, preferably a friend or a family member who can provide discounts (Turtlz Research, 2013). Despite an extra step in the adoption process, Mary Kay was ranked #1 in customer loyalty by Brand Key’s 2011 market ratings (MKBlog, 2011). Consumers who are extremely brand loyal, Mary Kay’s customers in this case, have the following qualities: very high purchase repeat rates, increase of volume in purchases, increase diversity of bought brand products, refer a company to their friends, high resistance to competition, and “give a company the benefit of the doubt. (Ibid.).” The only way a new brand could break into the consumers’ competitive set is by multiple, firm friend or family recommendations, the strongest form of influence (Turtlz Research, 2013). Additionally, about 50% of women become consistent with cosmetic brands at ages 16 to 18, making a conversion more difficult as women grow older (Ibid.).

Online behavior The Mary Kay website has 455,702 monthly visitors (Quantcast, 2013). According to Quantcast, 2013, which cross-analyzed visitors’ activities, online Mary Kay visitors have the following affinity rates to respective categories:

The Mary Kay website has 455,702 monthly visitors (Quantcast, 2013). According to Quantcast, 2013, which cross-analyzed visitorsâ&#x20AC;&#x2122; activities, online Mary Kay visitors have the following affinity rates to respective categories:

The high affinity rates suggest that current Mary Kay consumers are highly involved in personal hobbies and search online for ways to enhance their hobbiesâ&#x20AC;&#x2122; experience. They travel frequently and like to find good deals online for travels and other things they purchase. They look to surprise their friends with gifts and are health conscious.

conversion process

Potential consumers Millennials are most likely to try new brands for eye cosmetics (Turtlz Research, 2013). Eye cosmetics will likely be the first purchase of a Mary Kay product, and so the company should emphasize those the most. New products that are least likely to be tried by consumers are about evenly split between face, lip and skincare cosmetics:

Women are most inclined to try new:

Women are least inclined to try new:

(turtlz research, 2013)

When it comes to assistance, most women require the most help when shopping for foundation (Ibid.). Therefore, foundation should be heavily featured during Mary Kay parties and less online. Products that women find themselves most independent with are eyeliners and mascaras (Ibid.). These are most likely to be bought online, however, online sales for cosmetics are extremely low (Ibid.). When shopping at a drug store, eye cosmetics are most frequently purchased out of all cosmetics, as they require the least amount of assistance and are used-up most frequently (Ibid.).

What’s missing Multifunctionality Young women have become increasingly interested in multifunctional products (only if they multi-functionality is purposeful and not “forced and unnecessary” (Fay, 2010). Perhaps Mary Kay should look into creatively developing more multi-purposed cosmetics.

Sun protection What’s missing from Mary Kay’s product lines aren’t necessarily products, but features integrated into existing products. According to Mintel Research, over 70% of young women are interested in products cosmetics that also provide sun protection (Fay, 2010). Mary Kay offers a sun protection line, but its more basic foundation cosmetics, which do feature an SPF of 15, aren’t recognized for their sun protection features (Mary Kay, 2013). Therefore, Mary Kay needs to place more emphasis on their products’ sun protection capabilities.

Tested claims Mary Kay makes “clinically tested” claims (Ibid.). However, a study by Mintel shows that, out of any medical claims, 72.5% of women prefer “dermatologically tested” claims; clinical claims are more appealing to men (Fay, 2010). Mary Kay should switch to dermatology testing instead of clinical testing.

Packaging When it comes to product display, 12% of all women think that attractive packaging is a must-have (Color Cosmetics, 2012). This number shoots up to 32% for women 18-24 (Ibid.). Focus group participants claimed that packaging is one of the first things they use to make a judgment about brand (Turtlz Research, 2013). Ben Punchard, a Mintel writer, says Millennials are “responding well to packaging that communicates a premium or exclusive positioning (2013). One participant mentioned that she likes the sleek silver and black packaging, which brands like NARS and MAC use (Turtlz Research, 2013). When a brand changes their packaging, it’s essential that the consumer be notified ahead of time. “Millennials need to be warned that a package change is coming and to be shown, repeatedly, what the new package will look like, so as not to be frustrated when they no longer see the box or bottle they recognize,” according to one expert (Turner, 2013). When it comes to Mary Kay @ Play, not only was the repackaging a rough transition, but women ages 18-21 reported that the vibrant colors and use of the “at sign” seems immature, as if “they’re targeted as 12 year-olds (Turtlz Research, 2013.” Mary Kay needs to focus on a sleeker, more mature look for its packaging.

e-commerce Lack of usage Despite efforts by cosmetic brands, online shopping for makeup is almost non-existent. According to our survey, none of the 100 women surveyed buys their makeup online (Turtlz Research, 2013). The reason is not because e-commerce is disliked, but because brands have yet to find a way to deliver on the makeup shopping experience. When it comes to foundation, women need assistance that can’t be matched online. When they buy more intuitive products, such as eyeliner or mascara, they look for immediacy and don’t want to wait a few days for shipment (Turtlz Research, 2013).

Opportunity Currently, online makeup shopping seems like a great opportunity for women to try new products, otherwise not available in stores, assuming they aren’t pressed on time. Another advantage is that Millennials can order online shipments of cosmetics they currently use and know work for them; the problem with Mary Kay, however, is that most of consumers don’t have the opportunity to try the product in the first place. If online makeup stores featured exclusive products and lots of samples, perhaps the platform would be more attractive to Millennial women.

The Market

Avon products, inc. overview Avon is a direct selling global beauty company with over 125 years of beauty industry experience. Avon has over 6 million representatives in over 100 countries and its mission is to personally serve consumers and empower women around the globe (www.avoncompany.com, 2013).

Brands spotlight: mark. Avon has many brands available to consumers, but specifically targets millennials with their mark. line of cosmetics. Avon’s mark. collection offers consumers a high fashion beauty experience. Consumers can purchase these products via direct sellers or online at meetmark.com. This line of cosmetics is customizable which allows consumers to create their own beauty experience. mark. collection also utilizes celebrity endorsements; currently, Lucy Hale of ABC’s Pretty Little Liars is representing the brand. On their website, consumers can view products recommended by Lucy Hale, adding to the value of her endorsement (www.meetmark.com, 2013).

Perception Viewed as younger, hip makeup brand of Avon. Regarded as a upscale, customizable product line endorsed by popular celebrities relevant to Millennial women.

Price Moderately expensive, yet affordable compared to competitors’ prices.

Availablity Can be purchased through direct sellers or online.

Direct Comparison Avon’s mark. competes mainly with Mary Kay’s, Mary Kay @ Play line of products. Although both are aimed at the same target mark. offers a more adult look than Mary Kay @ Play. The product lines are similar but mark. has a sleeker more mature look. Through in depth interviews we uncovered that the brand recognition for mark. was much higher than that of Mary Kay @ Play (Turtlez Research, 2013). In order to continue to compete with mark. Mary Kay needs to re-evaluate who their Mary Kay @ Play line actually appeals to and aim to be the perceived as more mature than their actual desired target.

l’oreal S.A. overview L’Oréal is a French company that sells a vast range of cosmetic products in professional, consumer and luxury categories. Among L’Oréal’s large brand catalog, the following are Mary Kay’s closest competitors:

Brands spotlight: Maybelline Maybelline offers consumers affordable cosmetic products that mimic popular trends seen on the catwalk. Their products can be purchased online or in local drugstores, making them easily accessible to consumers across the globe. Maybelline offers online lessons to consumers, teaching them how to apply products and mimic many of the catwalk looks portrayed in their advertising. The brand is targeted at the young fashionista who wants a luxury look without breaking the bank (www.maybelline.com, 2013).

Perception Offers affordable makeup that allows consumers to achieve the catwalk look.

Price Very affordable, competitive pricing allows consumers to buy products without testing due to low risk of price.

Availablity Can be purchased online and at your local drugstore, making it more convenient than direct sellers.

Direct Comparison Maybelline is aimed at the same target as Mary Kay but achieves success with affordability but more importantly availability. When interviewing woman within our target we learned that convenience of the products is of utmost importance to Millennials (Turtlez Research, 2013). It is critical that Millennials can get a product when they want it, but Mary Kay currently does not operate in a way that caters to hectic lifestyle of this demographic. If we are going to push consumers to pay extra for quality we have to pay off with availability.

The proctor and gamble group overview P&G offers a variety of products in the beauty and grooming category. They aim to work towards one common purpose, bringing their “beloved” brands to consumers across the world. With brands sold in over 180 countries, they truly serve the world with their 50+ leadership brands (www.pg.com, 2013). Among P&G’s large brand catalog, these are the companies that are most competitive with Mary Kay:

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Brands spotlight: COVERGIRL COVERGIRL has had continued success for the past 50 years serving women and their unique beauty needs. Throughout it’s history, it has been widely recognized for its affordability and availability at any local drugstore. Recently, COVERGIRL has successfully integrated its brand within pop culture with campaigns such as The Hunger Games, Pink, and many other advertisements that use celebrity endorsements. The brand also executes promotional work for the NFL, allowing consumers to pick their favorite team and receive recommended products to get a team spirited look. These type of current and relevant integrations keep consumers loyal to COVERGIRL(www.covergirl.com, 2013).

Perception Longstanding, traditional brand that is constantly reinventing itself to effectively serve it’s consumer.

Price Affordable pricing, allows consumer to purchase with low price risk.

Availablity Can be purchased online and at your local drugstore.

Direct Comparison COVERGIRL and Mary Kay both have long existing histories, they also both aim to empower women. The major difference is that COVERGIRL is more readily available to consumers than Mary Kay. COVERGIRLl continues to reinvent itself to serve its consumers while Mary Kay has been slow to change. Just like many other brands COVERGIRL is available for retail purchase at many locations. The accessibility is what keeps Millennials coming back, because they can get what they want when they want it.

The Mary Kay Experience

The Mary Kay party millennial lifestyle and the Mary Kay Experience According to Mintel, Millennial consumers spend seven times the amount of time compared to the national average on educational activities, which suggests that they don’t have much time for leisure activities (Grabowski, 2013). Almost half (43%) of Millennials admit that they don’t think they have enough free time, and those who do time admit that they don’t know what to do with it. Data also shows that almost 40% of Millennial consumers confess that they spend more money than they should in order to participate in leisure activities (Grabowski, 2013). More than any other generation, Millennial women associate beauty with being fun. Sixty-five percent of women enjoy putting on makeup, because they are able to express themselves in an individualized way (Waite, 2010). Millennial women want to spend free time with their friends in a way that isn’t too expensive, but still encompasses leisure time values of “fun, happiness, and laughter (Turtlz Research, 2013).” Turtlz Research saw a hole in the “Mary Kay Experience:” as new consultants were desperate for money due to economic hardships, the parties became about selling products, rahter than having fun. In order to attract women ages 18-25, Mary Kay needs to reposition the “Mary Kay Experience,” into an ideal event that’s not about buying products, but about having a great time with friends.

Reinventing the party After watching the Mary Kay Party YouTube video, it became apparent that the “Mary Kay Experience” is mostly geared toward an older demographic of women. When showing the YouTube video to women ages 18-24, respondents admitted that they wouldn’t enjoy the Mary Kay party because it’d be “too mature and boring” (Turtlz Research, 2013). For Millennial women, having a Mary Kay sales representative come to their house in a relaxed, calming environment isn’t their idea of a “good time.” From two in depth interviews prior to hosting the Mary Kay party, Millennial women admitted that in order to have a good time at one of these events, they would want it to have more of a “party feel (Turtlz Research, 2013).” For this event, Turtlz Research sent out an invitation to 10 women ages 16-24 to participate in the new and improved “Mary Kay Experience.” We conducted natural observation and didn’t inform the participants the “party” was for a research project. Turtlz Research set the scene to resemble a party-like environment; we decorated the room, played upbeat music, brought wine, cheese, au d’oeuvres, and other party favors. Once our guests and the Mary Kay consultants arrived, the consultants were told to make the environment less structured so the women could also experiment with the makeup on each other to create a more fun aura.

Earlier tesults from in-depth interviews revealed that Millennial women do not find Mary Kay products to be high-quality (Turtlz Research, 2013).”Even though many people said to had never tried the product, they considered it to be “outdated and mom-status,” but our results from the revamped “Mary Kay Experience” proved otherwise. Once the Millennial women experimented with Mary Kay products in an enjoyable, “partylike” environment, they considered the brand to be “fun (Turtlz Research, 2013).” Every person at the Mary Kay party bought at least one item, and a few purchased two or more (not from pitty, but from liking the product). This research proves that Millennial women can consider Mary Kay makeup good and affordable if they are introduced to it under the right settings. This generation of consumers enjoys spending leisure time with their friends in an entertaining environment. If Mary Kay repositions their parties in a more young and lively way, Millennials will most likely will want to host more parties, leading to a better brand image and increased sales.

MARY KAY online website Mary Kay’s website is visually appealing to the consumer. The palette of colors used on the site matches their company logo and elegant style, making it easy to associate the website with the brand. When accessing the homepage, one of the first pictures that pops up on their banner is their affiliation with Project Runway. This establishes immediate credibility, with Millennial women especially, since Project Runway is a show that caters to this demographic (Ng, 2011). The partnership also shows that their makeup is high quality, because Project Runway is focused around high-end, chic fashion designers. On the website, consumers are able to look at a complete list of Mary Kay’s products, and can easily add them to their shopping cart. Unlike many other e-commerce websites, where the consumer can purchase the makeup right away, the shopper is reconnected to choose a local beauty consultant to buy their selected products from. Consumers, therefore, aren’t able to complete a quick transaction online. This type of transaction may draw Millennials away, as they aren’t able to get the products with the type of efficiency they are used to.

Social Media In terms of social media, we found that women are very involved in interacting with the Mary Kay brand across numerous media platforms. Sixty-three percent of all Millennial women stay updated on brands through social networks (Schawbel, 2013). Mary Kay U.S. has 1.4 million followers on Facebook and 44.7K followers on Twitter. The company posts on their Facebook and Twitter accounts everyday, featuring daily updates about new products, looks, and styles to cater to their consumers. Mary Kayâ&#x20AC;&#x2122;s Facebook, Instagram and Twitter pages are also filled with images of their products that include how-to makeup tutorials to show consumers step-bystep instructions how to obtain the look that they want. Whenever a customer voices a problem about one of the Mary Kay products, on either the Facebook or Twitter page, the company immediately responds, apologizing and encouraging the consumer to call a provided Customer Satisfaction number for further help.

The issue with their Facebook and Instagram pages is that almost their entire makeup line is catered towards older women. The “@ Play” line, which was launched to be targeted toward Millennials, is rarely featured on either of the pages. On average, Millennials join 2.5 social networks, significantly more than Mary Kay’s older consumer, yet the company isn’t catering to their largest audience online (Van den Bergh, 2013). In order to generate more “buzz” about their new line of makeup for women ages 18-24, Mary Kay needs to feature them more frequently on their social media pages. Almost all of the women that comment on the Mary Kay products featured on Facebook are women above 30. Women ages 18-24 feel disconnected with these social media networks because their age group isn’t involved with the brand -they feel misrepresented. Forty-three percent of Millennials have liked 20 or more brands on Facebook, which shows that they are interested in receiving updates on brand’s products, if the brands cater to them in the right way (Schawbel, 2013). Since Millennials are so active across social media platforms, it is vital that Mary Kay updates their Facebook, Twitter, and Instagram with information relevant to younger women. Millennials account for 30% of the population in Brazil, compiling almost 1/3 segment of the country’s demographic (Nielson, 2013). Unlike the U.S., both Mary Kay Mexico and Mary Kay Brazil do a great job with keeping their Millennial consumers engaged with the brand online. Both of their Facebook pages are very connected with women 18-24, posting pictures of products that this demographic would ideally like to purchase. They also use less bland palettes in order to cater to a younger audience. On Facebook, Twitter and Instagram, both countries feature the “@ Play” line constantly in their pictures and also use Millennial women as their models. By doing so women 18-24 can associate with the people using Mary Kay product and feel more connected to the brand, making them more willing to purchase the products. Mary Kay U.S. social media pages needs to mimic other countries’ pages in order to build a stronger connection with women ages 18-24. Mary Kay also launched free and paid apps that consumers can download on their iPad, iPhone, etc. The Mary Kay Mobile Virtual Makeover app allows the user to upload a picture of themselves, where they can then apply Mary Kay products to their photo. Users can put Mary Kay products on themselves virtually, bridging the sampling gap created by the company’s limited distribution. At the end of the virtual experience, consumers can click on the “Your Look” page, which lists the products that they used during the app. This application, can fully cater to the lifestyle o busy Millennials, allowing them to sample products easily (Grabowski, 2013). Mary Kay also launched a free app where consumers can access their catalog collection without waiting for it through the mail. Mary Kay, however, has yet to publish an app that allows product purchases.

Mary Kay mobile app transformation

Empowerment? After using a word association test in our focus group, results showed that Millennials do not find Mary Kay to be empowering. When Turtlz Research used the word “empowering” and listed an array of brands, respondents associated the brand Covergirl most frequently (Turtlz Research, 2013). Asking the respondents why they considered Covergirl empowering, they spoke about the brand’s many celebrity sponsors, and how they associated celebrity figures with empowerment. We also used the picture projection technique and the pictures that Millennials associated with Mary Kay were mostly pictures of older women (Turtlz Research, 2013). This technique conveyed that women ages 18-24 feel that Mary Kay is neither relevant nor empowering. Turtlz Research also showed the focus group the Mary Kay @ Play commercials. The women of the study looked disgusted with the brand and said that commercial was more fitting for tweens (Turtlz Research, 2013). Words they used to describe the products featured on the commercial were “childish, colorful, and immature,” conveying that these products’ ads only convince a younger demographic. When the women found out that the commercials were targeted toward them, they were shocked because of the color palette of the makeup, as well as the carefree lifestyle that was portrayed in the commercials (Turtlz Research, 2013). Products in the commercials were used in a young, rock-party-like manner, not focusing on the mature vibe that Millennials are trying to give off to their peers. In order to make women feel important and empowered, Mary Kay needs to get rid of the vivid colors used for their palettes and lip crayons because the are not appropriate for the more mature Millennial women. Colors that feature a more natural look, rather than bright colors, are much more appropriate to young women.

Corporate and Social Responsibility Since Millennial women are not familiar with the Mary Kay brand, they are also not aware of Mary Kay’s significant corporate responsibility. This company was founded on the “Golden Rule,” emphasizing the importance of giving back to the community (www.marykay.com, 2013). Mary Kay created the Mary Kay Foundation and launched the makeup line Beauty That Counts Mary Kay, in order to raise money for children who have suffered from cancer and severe cases of domestic violence. The Mary Kay Foundation also helps out women in domestic violence shelters, and has built 13 Nature Explore Classrooms at these shelters. Every year, this noble foundation awards $3 million in shelter grants to more than 150 domestic violence shelters in order to help combat against domestic violence. Mary Kay feels like it is their social responsibility to educated local communities on this issue because it is often overlooked (www.marykay.com, 2013). By the year 2012, The Mary Kay Foundation had already donated more than $31 million to domestic violence associations across the nation.

Along with offering shelter and rehabilitation services to those in need, Mary Kay makes a difference by “going green” (www.marykay.com, 2013). The company has planted 200,000 trees in the Bitterroot National Forest in Montana and 100,000 trees in Pike Nation Forest for Arbor Day, in order to emphasize the importance of being eco-friendly. Mary Kay Inc. also launched their Mary Kay Botanical Effects products with “being green” in mind, making their cartons with 100% post-consumer recycling materials. The company has also been noted for fighting against domestic violence across many countries, including China, Korea, Spain, Germany, and Latin America (www.marykay.com, 2013). Mary Kay makes it their responsibility to go above and beyond to raise money for organizations such as Habitat for Humanity, the Red Cross and many others that deal with disaster aid and giving back to the community.

According to the recent Millennial Impact Report, 75% of the Millennial generation have donated to causes in the past year, and 63% say that have volunteered (Harvey, 2012). Sixty-one percent of this generation are worried about the state of the world, and feel personally responsible to make a difference. These individuals are just as interested in giving back as Mary Kay is, with nearly 70% saying that being socially engaged in “doing good” is their highest priority (Gilbert, 2011). If Mary Kay put the spotlight on their Corporate Responsibility, Millennials would feel much more connected to the brand.

Measuring the experience Focus group results revealed that Millennials do not find that Mary Kay products make them feel “beautiful, confident, and connected (Turtlz Research, 2013). Turtlz Reseach used word associated and unveiled that the words “beautiful, confident and connected” were used to describe both MAC and Covergirl products (Ibid.). The words that were used to associate Mary Kay cosmetics were disconnected, mature, fair quality, and older women (Ibid.). Results reinforced the fact that Millennial women do not feel like they can associate with the Mary Kay brand because they believe that it is targeted toward a much older demographic. We mentioned to the women in the focus group that MAC has many outlandish colors that are very similar to the Mary Kay @ Play line, and one of the women said “Yes they have hot pink eye shadow, but the models make it look cool and trendy (Turtlz Research, 2013).” The women said that if makeup has a childish appearance and tone, like the Mary Kay @ Play line, they would disregard it. But, if high-end fashion models wear similar makeup, it deems the product wearable. By placing models that are too young in their commercials, Mary Kay is distancing itself from Millennials. In order to connect with their intended consumers effectively, Mary Kay needs to use models that are trendier and more sophisticated. Turtlz Reseach created a post-party survey to see if respondents’ representations of the brand had changed after they partook in the revamped Mary Kay experience and tried the products. Results showed that before the party, the women thought Mary Kay products were “overpriced, poor quality” and that this brand of makeup is catered toward older ladies (Turtlz Research, 2013). After the party, the women’s impressions of Mary Kay changed completely. Respondents admitted that they were surprised at the quality and affordable price range for the makeup. The women voiced that they were unfamiliar to the younger line, and only knew Mary Kay for their mature line that is seen as “too old” for Millennials to use. Many respondents even said that they would be willing to purchase Mary Kay makeup in the future. The respondents said that they loved the whole “party-type” experience because it helped them associate the makeup with a good time (Turtlz Research, 2013). Respondents also said that they enjoyed that the they could try the products and get their friends’ feedback before buying them. The immediate positive feedback from friends triggers purchases. Overall, our research proved that Mary Kay can become an enjoyable brand for millennial women under the right conditions.

Key insights

Main insights from this research more qualified consultants are required Mary Kay sellers are increasingly on a lower socioeconomic level, and therefore push product heavily. Partygoers have reported that the parties seem more like a sales pitch and less like a makeup experience, especially since the products are simply presented to the women, but aren’t actually applied by makeup professionals. Past participants complained that the parties are stuffy, boring, and simply not fun. A change in atmosphere and approach of the consultant will lead to successful sales and happier consumers, as seen through the ideal atmosphere that we created at our own Mary Kay party. This change can be achieved through a different party set-up, further training of Mary Kay sales reps, and a more selective hiring process, and the training of reps to actually apply makeup to the partygoers. Mary Kay parties are crucial, as they allow young women to receive immediate feedback from their friends, the most effective vehicle of influence.

Distribution channels need to be updated Mary Kay’s two current selling channels – online and direct selling – leave much to be desired for the Millennial audience. May Kay parties and E-commerce are simply not efficient channels to reach Millennials. Young women like sampling makeup, especially if it is moderately priced as Mary Kay is. For online to survive, the website must be high incentivized, as to balance for its lacking components. Free shipping, exclusive products, free samples, and points towards a loyalty program should be available. Direct selling is also not popular with Millennials. Millennials are all about convenience and instant gratification, and direct selling makes a simple task, like buying new mascara, a long ordeal. Mary Kay products receive stellar reviews and have been rated better quality than competing brands. The products are not the issue in low sales; all signs point to inconvenience being the hindrance. Therefore, to garner sales from our target, there needs to be a more convenient selling option.

Marketing calls for a more sophisticated tone The products, packaging, and advertising of Mary Kay @ Play were not well-received by Millennial audiences. It was generally agreed upon that the entirety of the line seemed to be designed and marketed towards tweens rather than 18-25 year-olds. Millennials, hold good package design in a higher regard than any other generation, and they felt that the “@” symbol and bright colors were juvenile. They also felt that the products in the line should be less sparkly and more multifunctional. Finally, the advertising should have a tone that is more sophisticated, including models with more natural-looking makeup.

unique research methods

Two face technique From our focus group, we noticed that women emphasized the fact that they wear different day products than night products. During the day, women voiced that they wore solely mascara and foundation because they wanted to go for a more “natural” look. At night, however, women put on products they wore during the day, but also used additional products such as eye shadow, eye liner, and lip coloring items (Focus Group Conducted by Turtlz). When asked why they tended to wear more make up products at night, many women admitted that it was because they were trying to attract members of the opposite sex (In Depth Interview Conducted by Turtlz). They strived to capture a more natural look during the day because they want to appear more mature in institutions such as school or the workplace in order to make them appear more professional. Turtlz Research decided to launch a new research method called “the Two-Faced Technique” in order to capture both the day and night looks that women ages 18-24 are using. The objective of the Two-Faced Technique is to see how drastically a female Millennial’s makeup differs depending upon time of day and event. As shown in the pictures, we instructed consumers to apply make up to one side of their face like they would do during the day, and apply their nighttime look to their other side. The two looks are very different. The daytime makeup look for our participants is very simple. The women chose to wear mascara, a little bit of eyeliner, and light foundation. This is the look they are utilizing for classes, meetings, etc. The nighttime look of our participants tends to be more aggressive, where Millennials are more likely to outline their features to further define their eyes or lips. This is the style they would wear to parties, bars, clubs, etc. By using this side by side comparison, we gained further insight as to how immensely different Millennial women’s day and night looks actually are. Creating the “Two-Faced Technique” helps consumers to visually compare the difference between day and night looks, so that they can easily purchase makeup to cater to the specific style they looking for.

Research Trick: a fun party For our research trick, we wanted to get ourselves as close to the interaction between brand and consumer as possible. What better way to do that than to host our own Mary Kay party? On Sunday, October 13th, we hosted a Mary Kay party at one of our group member’s apartments. All of the guests were within our target market. The party provided us with insights that no other type of research could have. We were able to see women’s perceptions of Mary Kay change right before our eyes. Women who had once held the belief that Mary Kay was an older woman’s brand actually found products that were relevant to their lives. We received honest reactions about the quality Mary Kay products – most were very positive. We also had the ability to create what we believed was the ideal makeup party setting for Millennials women – meaning we had popular music, food, wine, a casual atmosphere – and were able to judge how this setting affected the view of Mary Kay. Many of the women who attended were surprised at how fun and not stuffy a makeup party could be. The research trick was a success – it allowed us to see a Mary Kay party in action, observe how our target uses makeup, note any opinions about the brand or product, and judge how well our spin on the typical Mary Kay party was received by our target market. It reaffirmed our belief that the standard Mary Kay party needs to be revamped and rebranded, and it also gave us hope that Mary Kay products could become a success with Millennial women.

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