Mary Kay Case Study

Assigned Number: 412

Table of Contents Executive Summary.... pg 2 Goals & Research Objectives...

pg 3

Primary Research... pg 4 Secondary Research... pg 8 The Many Faces Campaign...

pg 11

Creative... pg 12 Philanthropy... pg 21 Media Plan... pg 22 Budget... pg 23 Evaluation... pg 24 Future Recommendations... pg 25

Executive Summary Mary Kay Ash, founder of Mary Kay Cosmetics, once said that “a mediocre idea that generates enthusiasm will go further than an idea that inspires no one.” But, with the growing competition in the cosmetics industry, Mary Kay has been struggling to communicate with Millennials, namely females 18-25 years old, that Mary Kay Cosmetics is more than just another line of makeup—it’s a lifestyle. Whether you are going to class, work, or a night out on the town, Mary Kay can provide you with makeup that lets your outer beauty match your inner beauty. Our team, Sparks Innovation, has developed an effective and inspiring campaign to target this specific audience and increase market share without isolating current, brand loyal customers.

We began by taking a survey to see what brands of make-up individuals in this target market are currently wearing. From here, the first problem we identified is that awareness of the Mary Kay brand was lower than that of its competitors. Therefore, we recognized that Mary Kay must first focus on generating awareness amongst Millennials using advertising that this generation is most receptive to.

Of the individuals who had heard of Mary Kay, we realized that Mary Kay is currently facing a conflict between how the company sees itself (as a stylish and affordable brand) and how females 18-25 tend to view Mary Kay as a brand. As a result, our advertising campaign aims to increase position perceptions among this target market and hopefully induce brand loyalty. In embracing the Mary Kay brand themselves, we believe that these females will be more likely to become an Independent Beauty Consultant (IBC) with aims to show others:

The Many Faces of Our creative booklet hopes to immerse female Millennials ages 18-25 in a world of Mary Kay. Through strategic implementation of campus tours, print advertisements, social media, and public relations, we believe that our campaign is filled with many inspirational ideas that can best meet Mary Kay’s campaign objectives.

2

Goals for Mary Kay

1 2 3

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.

4 5

Develop a unique experience for the target market that will encourage a deeper relationship with Mary Kay. Attract beauty consultants that better relate to the target market.

Research Objectives 1. Gain insights into the mindset, needs, and desires of females 18-25 years old.

5. Uncover target’s response to social media and potential benefits for the brand.

2. Analyze target consumer perceptions of their current experience with Mary Kay.

6. Understand the relationship between Mary Kay and their consultants’ presence online and offline.

3. Explore opportunities to connect the consumer target with consultants and strengthen relations with the Mary Kay brand.

7. Learn the best incentives for consumers to purchase products.

4. Learn how the demographic thinks about and responds to advertising, including traditional, digital, and social.

3

Industry Analysis The color cosmetics industry includes facial, eye, and lip segments. The facial and eye segments have been seeing the most growth, while the lip segment has been in decline.

The color cosmetics industry experienced modest growth between 2008 and 2013, with a 13 percent increase to $9.3 billion.

Return to the Experts: A significant number of women are not confident in their ability to apply makeup well, and are looking to professionals to give them information and advice about products and how to use them. With the increase in new makeup launches and the immense number of options available, women are looking for advice on how to navigate the product segment.

Threats:

Endorsements: Cosmetics brands often use celebrity endorsements to promote their products, and limited edition collections based on the season and cultural trends are frequent. The most common innovations presented by cosmetics brands are “brightening/illuminating” and “long-lasting.”

Additionally, women have been discarding current products for multi-functional makeup and new products instead of driving category growth through incremental purchases. Increasingly products are blurring the lines between facial skincare and makeup, which benefits consumers but hurts the industry.

4

Social Media Analysis Maybelline:

• Source to advertise their new products • Used to rate and read reviews of their products

Avon:

• Find consultants or representatives • Showcase their appearances on magazines • Promote new products

Covergirl:

• Shows products and campaigns • Capitalizes on celebrations and events (ex. St. Patrick’s

Maybelline:

• Product images and inspirational quotes for their customers

Avon:

• Gives shout outs to up and coming and established celebrities • One account for foundation for women and another for products

Covergirl:

• Photographs of product, tutorials, and teasers for new products

Maybelline:

• Same photographs as Facebook

Avon:

• Photographs of their makeup used in artistic manner • Ideas on how to use makeup

Covergirl:

• Products, celebrities, backstage sneak peaks, promotions

Maybelline:

• Advertisements, short films, runway clips and commentaries, look books

Avon:

• Tutorials, makeup artists spotlights, celebrity opinions

Covergirl:

• Campaigns, tutorials, new products, fun clips

Covergirl only cosmetic company currently sponsoring content • Funny GIFs, stories about their celebrity endorsers

5

“

Millennials & Technology

“

One of the key principles of successful marketing to Millennials is to create digital content that is authentic and interesting enough for Millennials to share with their friends.

42% 1 in 4 24%

Follow Beauty Brands on social media

Use a cellphone to connect to the internet

Spent $500 or more online in the past 12 months

Insights: • Millennials desire immediate gratification • Convenience as key • More likely than any other age group to use their cell to text rather than call • Facebook is the second most popular site among Millennial women, only following Google Sources: Pew Research

6

Millennials & Makeup

95% 94% 69% 51%

Use makeup to enhance their features State that makeup makes them feel more confident Wear makeup to express their personality Enjoy wearing designer brand makeup

Buying Habits - 58% purchase difference makeup products for summer and winter seasons - 72% purchased cosmetics that included a free gift with purchase - 75% don’t mind spending money on makeup because it makes them feel good Sources: Lab42, Experian Simmons NCS, Pew Research, Millennial Marketing

7

Survey Results

85%

Classic

outdated

71%

What is your perception of Mary Kay?

Think a free gift with the purchase of a product influence the makeup they buy

Traditional

Feel comfortable purchasing makeup online if there are free shipping and returns and customer reviews on products

EXPENSIVE

conservative

1

2

What is the best way for you to communicate with a consultant?

“ 33%

25%

16%

42%

Text Message

9% 13%

3

�

Would you consider hosting a makeup/beauty party?

No, I do not have the time

Email Facebook

No, I would never consider hosting a Mary Kay party No, hosting events takes too much work Yes, it would be fun to try new products

Yes, we are always looking for new things to do Yes, my friends and I love makeup

*

Qualtrics survey based on 135 respondents ages 18-25 yrs old

8

Consultant Interviews Young people are using Mary Kay— all of the consultants we talked to recently had multiple appointments with 18-25 year olds. These women know about makeup and love to learn about it, often through YouTube tutorials, and they prefer more colors and looks. According to our survey, texting is the best way to communicate with younger women, while consultant pages on Facebook are a good way to provide fun content to current or potential clients. Younger consultants agreed with this notion, while older consultants had less positive feelings about communicating via text and social media.

“Texting is the best communication method, it has the highest response rate.”

- 32 year old Consul-

4/10 3/10

Consultants had a Facebook page for their business

Consultants thought texting was more time consuming than phone calls.

” “ vs The problem is getting there.

Once they’re in, they love it!

“Texting is more time consuming. A five minute phone conversation takes 15 minutes via text.”

- 41 year old Consul-

It is harder to build relationships via text...It is hard to hear the woman’s genuine interest in purchasing a product.

*

Phone interviews conducted with ten Independent Beauty Consultants.

9

Personal Interviews Key Insights: • Women need to meet the consultant: “I am fine with going to Sephora and having a makeup artist do my makeup, but I would never let a stranger into my house to do the same thing. It would make me uncomfortable.”

• Women are overwhelmed with the idea of throwing a Mary Kay party: “If I wanted a party I wouldn’t know where to begin. I don’t have time to set it up, buy wine and cheese, and do everything else. I never have girlfriends over for anything, we always go out. It is so much easier.”

“”

4/25 76%

Women had used Mary Kay or knew a friend who had Would not host a Mary Kay party without having met the consultant first.

On the current advertisements for Mary Kay at Play:

Vibrant, fun, bright, happy, upbeat, colorful

84%

Thought this advertisement was targeted at preteens or teens

Too much makeup, crazy, cheesy, not for everyday

*

Based on interviews with 25 college students

10

The Campaign Our campaign unites the mission and values of Mary Kay with the needs and desires of the target market. From this, the overarching concept that combines all of these facets emerged:

The Many Faces of

Why does this satisfy the goals of this campaign?

• It enforces and raises awareness for all of the different Faces of Mary Kay that extend beyond a beauty company, namely a commitment to service, entrepreneurship, and personalized customer experiences.

• It speaks to the individuality of the women in this demographic. They have a desire to stand out, so this slogan encourages women to try different products to experiment with makeup and try different looks. They can show their Many Faces of Mary Kay. • This slogan emphasizes the diversity of Generation Y that Mary Kay caters to, from Latinos to Caucasians to African Americans, and more.

How will it be implemented?

• Overarching campaign targeted 18-25 year old women • University Students: College Tours and Campus Ambassador Program • Women in the Workforce: Partnerships with Local Businesses

11

Campus Tours Mary Kay’s Fall into Your Beauty tour was a strong initial step to increase brand awareness. However, there is room for improvement to achieve a more lasting impression amongst college women.

In addition to doing makeovers on students, Mary Kay consultants will distribute free promotional materials that will constantly remind students about the brand.

1. Posters 2. Student Planners Posters make the perfect giveaway because so many college students decorate their dorm rooms with them. These posters will all be of Mary Kay Ash quotes that girls can look at every day for motivation, inspiration, and to remind them about the brand.

Poster sample

Student planners are another essential for college women. In additional to helping to organize their busy lives, the planners will also have positive quotes, which further support the brand’s commitment to empowering women.

Student planner sample 12

Campus Ambassadors Mary Kay’s Fall into Your Beauty tour established the company’s presence on college campuses across the country.

Now, further steps must be taken to accomplish our main objectives:

1. Increase Awareness 2. Attract Younger Consultant

In the Fall of 2015, the tour will also recruit Campus Ambassadors. This program will connect university students with local beauty consultants. Student ambassadors will promote the Mary Kay brand around campus and introduce students to consultants.

Through this work, ambassadors will become advocates for the brand, which may lead them to become a consultant either during college or upon graduation.

This is mutually beneficial:

In the Fall of 2015, the tour will also recruit Campus Ambassadors. This program will connect university students with local beauty consultants. Student ambassadors will promote the Mary Kay brand around campus and introduce students to consultants.

Women on college campuses that are not a part of the Fall into Your Beauty tour will be recruited as ambassadors via their university’s career center website.

Through this work, ambassadors will become advocates for the brand, which may lead them to become a consultant either during college or upon graduation.

• Students will build their resumes and have an income • Consultants will gain exposure and new business

13

Consultants Collateral Materials Our survey revealed that many women would not consider hosting a Mary Kay party because they do not have the time to do so. In order to make hosting less of a burden on women, consultants will provide hostesses with themed party invitations and ideas that have been created by Mary Kay to ensure consistency in brand standards.

Webinar Training Sessions: Existing consultants need to become more comfortable with the languages of the Millennial Generation: social media and texting.

Beauty consultants will be required to watch three online webinars every year.

The topic of the webinars will depend on the latest social media trends of the year. For instance, there will be a session teaching consultants how to make their own Facebook page specifically for Mary Kay. Other social media sessions will discuss Twitter, LinkedIn, blogging, and creating a YouTube page for tutorials.

Invitation example

Texting tutorials will show consultants the most efficient way to text clients so that it is not viewed as time consuming.

To incentive consultants, viewing each session will enter them into a drawing to win a free iPad. This will further encourage consultants to participate in social media and connect them to Mary Kay’s App.

Webinar Training

14

Digital Marketing Online Consultations Consumers will now be able to connect with a consultant at their convenience with online consultations available through the Mary Kay website. This caters to a market that is demanding and constantly seeking instant gratification. Females can chat with a consultant online about any product so that she can have the reassurance she needs to make a purchase.

Bloggers Bloggers will be contacted to review Mary Kay products and post about them online. Furthermore, Mary Kay will advertise on these bloggers’ sidebar advertising space. Cara Brooks was named Allure’s Beauty Blogger of the Year. Her blog, Maskara, has over 2.5 monthly page views and over 500,000 unique visitors every month.

Haulers Mary Kay needs to send more free products to YouTube sensations that are well known for beauty advice and “hauls.” A few of these women include Michelle Phan, who has over six million subscribers; Elle Fowler, whose videos have a combined 157 million views; and Lauren Curtis, who has over 1.4 million subscribers.

15

Women in the Workforce Partnerships with Local Businesses

LinkedIn

Encourage consultants to partner with local businesses such as nail salons, boutiques, and restaurants to co-host events.

This will be mutually beneficial, as it will bring new customers to both businesses.

Furthermore, the busy working woman will see a Mary Kay party as a relaxing event, as opposed to a stressful planning experience.

97% of employers and recruiters stated they used LinkedIn as a recruiting tool.

One aspect of LinkedIn involves uploading a picture of yourself. Consultants can take advantage of this opportunity by offering makeovers so that women can take a professional picture for their LinkedIn page.

Source Bullhorm, 2012

16

Social Media Social media is the hub of connections; whether these connections are social, political, economic or geographic, online social media allows people who share similar interests to connect and to expand their knowledge in all aspects of their curiosity. Our goal with Mary Kay is to harness the potential of social media to increase awareness and engagement with the brand. We are targeting five social media hubs; Facebook, Twitter, Instagram, Buzzfeed and YouTube. We believe these can be key players in reaching potential targets.

YOUTUBE

FACEBOOK

YouTube would be used to post tutorials starring Mary Kay Consultants or makeup blog leaders.

The Facebook page should act as a home base to Mary Kay consumers and consultants BUZZFEED Pages of the best and worst makeup, humorous lists about makeup or other interesting or quirky facts would be posted on BuzzFeed.

INSTAGRAM

TWITTER

The Many Faces of Change will spotlight influential women of the world.

Mary Kay will tweet questions to consumers who directly reply to the brand through hash tags.

#BestFaceForward

#SmartphoneScratchOff

#ManyFacesoftheFuture #FacesofSurvivors #ManyFacesofChange #ManyFaces #Mary Kay

17

Mobile App Currently, Mary Kay has separate applications for the Mobile Virtual Makeover and the eCatalog.

These should be consolidated to make it easier for consumers to access the brand.

The Smart Phone Scratch Off The “Smartphone Scratch Off” will be a game where users can login daily to potential win prizes. They will use the touchscreen to scratch off one of the Many Faces of Mary Kay. This lottery ticket inspired game is more exciting and interactive than a simple sweepstakes, which will engage the target.

Consultant Connections The App will be used as an alternative route to find a consultant. Opening up a consultants’ page through the app will give users access to their consultant’s contact information and their unique social media platforms. It will also be a place for consultants to promote their upcoming parties and showcase their work.

18

Print • Two page spread emphasizing the different options Mary Kay offers for consumers to put on Many Faces, in this case from day to night

• Exposes target market to the quality of Mary Kay’s products

• Gives users the chance to test product prior to purchase

19

Commercial

The Many Faces of Mary Kay: Girl wakes up in the morning

Puts on her make up for the day

Touches up her make up with friends

Gets ready to go out at night with friends.

The Many Faces of Mary Kay: One Girl Many Faces - Morning, Daytime, Afternoon, Nighttime

Second Girl - also show her many faces during the day

Third Girl - Show the different faces during the day

Fourth Girl - show different faces during the day

Collage of all - enhance the idea of the Many Faces of MaryKay

Inspirational Ending - quick and simple

20

Philanthropy The Many Faces of Survivors • This campaign, a part of Beauty That Counts®, would run during October, which is Breast Cancer Awareness Month.

• People submit story and a photo on the Mary Kay Facebook page of someone they know who survived breast cancer.

• Mary Kay randomly selects ten winners who, both the person who submitted the story and the survivor, would receive a Mary Kay makeover and free Mary Kay products for a year.

• This campaign would increase awareness of Mary Kay’s corporate social responsibility, which is very important to 18-25 year olds, while also promoting Mary Kay’s product line through the prize.

The Many Faces Mary Kay Touches • This campaign, also a part of Beauty That Counts®, would give college students and young people living in cities a chance to volunteer in orphanages and women’s shelters.

• These 18-25 year olds, alongside local Mary Kay consultants, would spend time with the girls and women and raise their spirits, as well as do makeup for those women that are interested.

• The visits would be promoted through Facebook Events and Twitter, the first X number of people to join the Facebook Event receiving a Mary Kay gift basket.

• This campaign, in addition to raising awareness of Mary Kay’s products and CSR, would introduce young people to local consultants in an effort to build relationships and potential future Mary Kay customers.

The Many Faces of the Future • This brand new campaign would target 18-25 year old women looking to start their own business.

Mary Kay would hold a business plan contest, with the winner receiving $10,000 toward making her idea come to fruition.

• Young women would create a video explaining their business idea and why they feel that they deserve to win and send it to Mary Kay to be posted on the company’s YouTube channel.

• Mary Kay would choose ten finalists that best portray Mary Kay’s company values and post them to the company Facebook and Twitter page for fans to vote on.

• The winner would receive the $10,000 and be featured across all of Mary Kay’s social media platforms.

• This campaign would help build awareness of Mary Kay’s brand among 18-25 year olds and align with the company’s core value of empowering women.

21

Media Schedule FEB.

MAR.

APRIL

MAY

JUNE

JULY

AUG.

SEPT.

OCT.

NOV.

DEC.

JAN.

FEB.

MAGAZINES COSMOPOLITAN MARIE CLAIRE INSTYLE PEOPLE ONLINE FACEBOOK TWITTER INSTAGRAM BUZZFEED YOUTUBE SPOTIFY HULU PANDORA SEO WEBSITE BANNER ADS APP COMMUNITY PHILANTHROPY CAMPUS TOUR CAMPUS AMBASSADOR LOCAL PARTNERSHIP COLLATERAL MATERIALS WEBINARS

22

Budget Channel Allocations Print... $990,732 Online... $6,000,000 College... $998,000 Consultants... $500,000 Philanthropy... $1,000,000 Contingency... $500,000 __________________________________ TOTAL $9,988,732

Online

Campus

Hulu...

$900,000 Pandora...

$240,000 Spotify... $100,000 YouTube... $1,200,000 Website... $10,000 Banner Ads... $350,000 SEO... $500,000 Facebook... $1,416,000 Twitter... $708,000 Instagram... $236,000

Campus Tour - Posters...

- Planners...

- Other...

Campus Ambassadors...

$50,000 $300,000 $300,000 $348,000

__________________________________ TOTAL $998,000

__________________________________ TOTAL $6,000,000

Print Cosmopolitan...

Marie Claire...

InStyle...

People...

Consultants $399,000 $158,532 $321,000 $112,200

__________________________________ TOTAL $990,732

Webinars...

Collateral Materials...

Local Partnerships...

$40,000 $50,000 $410,000

__________________________________ TOTAL

$500,000 Sources: BlueCloud Solutions, Comcast,

23

Evaluation Goal:

“Forget traditional ROI. Instead of calculating the return on the company’s investment, managers should assess consumer motivations to use social media and measure the social media investments customers make as they engaged with the brand.”

- Donna. L Hoffman and Marek Fodor

Online: Measure engagement, not “likes” PopTip • Conversation analysis platform social media • Mary Kay will select words and phrases to track • Real time text analytics for multiple platforms, including Facebook, Twitter, and Instagram • Accounts for misspelled words and responses in hash tags • Clients include L’Oreal, ESPN, Spotify, and Budweiser

Google Analytics and Adworks • View Engagement • Track sales and other conversions • Monitor ads and keywords • Evaluate advertisement performance on Google • Measure video advertisement performance

Perceptions & Community Outreach • Distribute surveys to compare perceptions towards Mary Kay prior to and following The Many Faces of Mary Kay campaign • YouTube video views and shares • Compare sales before and after campaign • Contrast age of average beauty consultants before and after campaign

Source: “Can you measure the ROI of Your Social Media Marketing?”

24

Future Recommendations College Tours

Free Gift with Purchase

This past fall, Mary Kay partnered with Cosmo and Seventeen Magazine. We suggest only partnering with Cosmopolitan in the future, as 93% of Seventeen readers are females ages 12-19, which is not the desired target market.

Estee Lauder has recently partnered with Lilly Pulitzer. Lilly has created a limited edition cosmetic bag for Estee Lauder that is free with purchase of their makeup.

Partnering with a brand that resonates with the target market will demonstrate that Mary Kay understand the needs of females 18-25. Furthermore, it will attract new consumers, as our survey revealed that the demographic is influenced by a free gift with purchase of makeup,

Online Shopping Online shopping is becoming increasingly popular. Survey respondents were comfortable making online purchases given free shipping and returns as well as user reviews were available. We suggest making these additions to online shopping to increase sales.

Host Parties at Venues Outside Home Hosting a party is seen as overwhelming and time consuming according to our research. Women will find it easier to go to a location where everything is set up as opposed to having to put in the time themselves. It makes the experience a treat as opposed to a hassle.

Add Variety to the Mary Kay at Play Brand Not all women in the target demographic were thrilled with the color pallets and were seeking more neutral tones for everyday. We recommend adding more subtle eye shadows to the line.

Sources: Seventeen Media Kit

25