Mary Kay Media Plan

Client Media Plan

A privately held corporation and one of the largest direct sellers of premium skincare and color cosmetics globally.

•  Trusted brand with a high- quality image

•  Company driven by over 3 million IBC’s

•  Global wholesales at $3 million

•  “Try before you buy” approach

•  Top 10 premium skincare brand globally

& top 15 color makeup brand globally

Task at hand •  To create a media plan promoting three new Mary Kay product lines (Mary Kay at Play, Botanical Effects and ClearProof Acne) that will increase brand recognition and sales among our target audience.

Industry Data: Color Cosmetics

Source: Mintel, Color Cosmetics US, July 2013

•  2008- 2013: Total Sales have grown 13% to $9.3 billion •  By 2018: Total sales estimated $10.5 billion

Cosmetics Industry Data


•  Growth: •  Led by facial & eye segment •  Decline in lip segment •  Crowded and competitive nature of the category




•  5,200 new product launches (2012)

•  Makes category difficult to navigate/ overwhelming

Industry Data: Facial Skincare

Source: Mintel, Facial Skincare US, May 2013

•  2007- 2011: Total Sales grew 11% to $5.6 million •  By 2017: Total sales estimated $7 million



•  Growth: •  Improving economic conditions •  Emerging new segments

• Women 35-‐ 54 are interested in anti-‐ aging skincare segment

•  50% of women 20-‐29 are still using acne facial cleansers



•  42% of users look for products that have multiple benefits

•  Main motivators: -saving time - saving $$

Retail Industry Data

●  Simmons data shows that respondents report buying cosmetics at mass stores such as Walmart, Target, Kmart, and Costco more than any other type of retailer

●  Mass retailers most often shopped by 18 - 24 year olds ●  Get to test products ●  Professional advice

●  Fastest growing segment ●  Convenience and time saving

Retail Industry Data

Consumers with more than $100,000 income are 11% more likely to buy online Among all income levels Walmart is still the site of most cosmetics purchases (71%)

Retail Industry Data: Direct Selling

●  2012 estimated retail sales of $31.63 billion ●  The number of people involved in direct selling in the U.S.

increased 1.9% to 15.9 million in 2012 Source: www.dsa.org, 2013

Industry Data: Direct Selling

Source: www.dsa.org, 2013

Competitive Analysis

Competitor Product Strengths Product % of Target that are Heavy brand

users

Eye Shadow CoverGirl (23.3%) , Maybelline (20.4%)

Eye Liner Covergirl (20.9%) , Avon (15%)

Acne Cleanser no dominant brand

Foundation CoverGirl (13.5%) , Maybelline (20.4%)

Lipstick/Lip Gloss CoverGirl (11.6%)

Competitor Overview:Drugstore Brand Innovations Convenience Advantages Disadvantages

CoverGirl moderately priced products -‐ “Beauty Buzz” social media -‐ “Fab Lab” beauty recommendations

-‐Have to travel to store -‐ No in-‐store beauty consultant -‐ Consumer uses own knowledge to make purchase -‐vast product assortment

-‐ strong celebrity spokesmen -‐ Effectively targets Disheavy users of make-‐up -‐ extensive social media presence -‐ brand presence

-‐ no person to person relationship -‐ Indirect beauty tips -‐ Overwhelming frequency of brand -‐ Have to pick and choose from store availability

Revlon -‐ Makeup guides and virtual makeovers -‐own Youtube channel -‐ uses celebrities on social media

-‐ Travel -‐ Own purchasing power -‐ offers more than just cosmetics

-‐Popular celebrity endorsements (Emma Stone) -‐ mass media presence

-‐ indirect relationship with both company and products -‐user has to have extensive knowledge

Competitor Overview: Specialty Stores Brand Innovations Convenience Advantages Disadvantages

Sephora -‐XpresSpa -‐ offers products in JCPenny -‐Beauty Insider -‐educational workshops -‐mobile bar code app

-‐Locations vary -‐ Have in-‐store consultants -‐”unparalleled assortment”

-‐own private label -‐”science of Sephora” -‐ prestigious label -‐ great in-‐store customer service

-‐ products more expensive -‐ lacks mass media presence -‐ location could be far away

Ulta -‐numerous online bundling deals -‐ plans to open 134 stores in 2013 -‐ beauty match links

-‐ Over 20,000 products -‐ high traffic locations

-‐ prestigous -‐brand loyal -‐ products for overall beauty

-‐ fragrances are their big ticket item -‐ business relationship in-‐store -‐

Competitor Overview-‐ Direct Sellers Brand Innovations Convenience Advantages Disadvantages

Avon -‐ Avon Foundation for Women -‐ largest corporate affiliated philanthropy

-‐ personal 24/7 online service -‐ free personal delivery -‐ Free shipping on orders $30+

-‐ 6 million active independent representatives -‐ available in over 100 countries -‐ reasonably priced items

-‐ start-‐up fees are pricey -‐ not a quick shipping time

Arbonne -‐Green Initiative -‐ nutrition products

-‐ no in-‐store beauty consultants -‐ Representatives around the world

-‐ stands out by offering a variety of products from cosmetic to nutrition to sun.

-‐ Arbonne charity foundation

-‐ expensive -‐ poor customer reviews online

Department Stores Brand Innovations Convenience Advantages Disadvantages

Clinique -‐ skin supplies for men -‐ Clinique Consultants lab coat uniforms

-‐ in-‐store and online -‐ cosmetics + dermatology/ medicine -‐ free giveaways with purchases (example: makeup bags, sample products)

-‐ lack of multifunctional products

MAC -‐ “All races, all sexes” -‐ social consciousness initiatives (example: fight against HIV/ AIDS efforts-‐ MAC AIDS fund)

-‐ in-‐store beauty consultants

-‐ popular use of color cosmetics

-‐ lack of skincare products

Media Mix •  Premium skincare &

beauty products •  Personal aspect-

buying directly from an IBC

Product

•  $$ •  Mid-tier •  Products start at $7.00

and end at $199.00

Price

•  Direct selling to consumer through IBC’s

•  Online

Place

•  IBC personal promotions/incentives

•  Mary Kay parties •  Utilize Facebook,

YouTube & E-catalog •  Email promotions

Promo

• Intense competition • Category saturation

• Professional advice • Power of social media • Spending power of 18-24 year old market

• Growth of color cosmetic & facial skincare industries

• Environmental Packaging • Customer service issues with salesforce

• Criticism of “exploitation” of consultants

• Ownership status: Privately owned limits raising capital

• Lack of training for IBC’s

• Strong market position with significant global presence • Diverse product portfolio • Unique business model- IBC’s, allowing trial before purchase

• Well established reputation, quality products

• In the top 20 Direct Selling Companies

Strengths Weaknesses

Opportunities Threats

Market Trends: Gen Y

Source: U.S. Census Bureau, 2010 Census

Market Total: 15,000,000 women

Market Trends: Income

●  Majority have an income below $50,000

●  44% have an income less than $25,000

●  17.3% aren’t even working

Source: Mintel, Social Dynamics of 18-24 US, Nov 2013

Market Trends: Education

●  Over half are college students ○  55% are full-time college students

●  24% of respondents belonged to a college sponsored club or organizations

Source: Mintel, Social Dynamics of 18-24 US, Nov 2013

Market Trends: Gen Y

Source: www.dsa.org, 2013

• Word of Mouth •  94.6% prefer to share opinions about products they love in person

• Want to feel like they’re the decision makers •  Want to see their interaction being recognized

•  Incentive- driven •  Want reward for job well done

•  Strong sense of what’s right/ ethical •  Vigorous corporate watchdogs

Market Trends •  Consumers 18- 24: Spending power of $6.9 billion

•  More than 50% of millennials say they tend to make impulse purchases

•  54% of females and 44% of males use Facebook and Twitter to receive notices of sales, specials, discounts

•  27% of millennials agree that having a loyalty program or special “status” credit card is important to them

•  Millenials: •  Want to bond with brands via a story

Source: State of the YAYA Report, 2013

Market Trends


•  26% of makeup wearers are not confident in their ability to apply make up well

•  Interest in professional advice

•  12% of women feel more comfortable shopping at beauty counter when salesperson is same age as them

•  21% of women 18-24 feel this way

Market Trends


Market Trends

•  32% of target market believes product claims

• Multifunctional products • Beauty box & mobile app interest

•  34% have tried them

•  40% are interested in trying

• Online tutorials •  20% have tried them

•  38% are interested in trying

A Snapshot of Our Target Audience •  20 years old •  Single •  Attends a 4-‐ year institution •  Has a part-‐ time job •  Heavy user of social media •  Heavy user of internet, outdoor & magazine

•  Values convenience & affordability •  Convenience defined by how easily product can be obtained

•  Moderate user of makeup •  Daily usage, but not power-‐ user

Meet Jessica

Target Audience

4,329,000 18-‐24 year-‐old women who use makeup are enrolled in college, full or part-‐time.

Target Audience

3 out of 4 women 18-‐24 years-‐old in the United States attend college.

Target Audience

Almost 2 out of 3 women who attend college attend a 4-‐year institution.

Unemployed12%

41%

47%

Employed 88%

Employment Status of Female College Students

Unemployed Full time Part time

Weekly Product Usage Product # times per

week % of Target Relative

estimate

Eye Shadow 2-‐3 12.6% 545,000

Eye Liner 7 29.4% 1,274,000

Acne Cleanser 7 10.6% 457,000

Foundation 7 14.8% 640,000

Lipstick/Lipgloss

4-‐6 10.4% 450,000

Mary Kay Product Usage

Product Weekly Usage

Eye Shadow 2-‐3 (38.7%)

Eye Liner 2-‐3 (49.9%)

Acne Cleanser 7 (59%)

Foundation 2-‐3 (42.3%)

Lipstick/Lipgloss 2-‐3 (26.5%)

Facial Cleansers •  43.5% of all women 18-24 use facial cleansers

–  21.7% using for acne care –  22.7% using just to wash their face

•  42.4% of all women 18-24 who are college students use facial cleansers –  21,8% using for acne care –  19.8% using just to wash their face –  most use 7 times/ week (likely once per day)

•  Currently, Mary Kay customers are more likely to be using facial care products for anti- aging

Product Usage Summary • Daily users of acne products, facial cleansers, foundation, eye liner

• Use eye shadow, lip gloss 2-‐3 times a week

Media Quintiles (F,18-‐24,College,Make-‐Up) Media Type Level of Usage Standout

Quintile Index

Magazines Moderate/Heavy

III 130

All-‐day Radio Moderate/Heavy

II 114

Newspapers Light V 172

TV-‐Primetime Low/Moderate V 186

Internet Heavy I 205

Media Usage:Internet 18-‐24 year old females •  86% of our target click on e-‐mail ads

–  higher than any other Internet ad form •  83% click pop-‐up/under ads •  4% of target who click e-‐mail ads, floating ads, full-‐motion video ads,

sponsored websites and webpage links are Mary Kay users Mary Kay Users •  88% of Mary Kay users click on e-‐mail ads

–  Banner ads least clicked by Mary Kay users •  Most likely to click on Full-‐Motion Video Ad or Sponsored Website from

Search

Media Usage: Magazines •  27% of women 18-‐24 are using entertainment magazines •  31.2% using women’s magazines •  15% using women’s fashion, beauty & grooming magazines •  Mary Kay users are most likely to be reading:

–  Health & Fitness magazines –  Teen magazines –  Women’s magazines

•  Mary Kay users who are college students are most likely to be reading: –  Women’s magazines –  Entertainment –  Women’s fashion, beauty & grooming

Media Usage: Radio

7 p.m.-midnight for 1 hour other (index of 1,250)

7 p.m.-midnight for 2+ hours car (index of 370)

7 p.m.-midnight for 1 hour work (index of 321)

Source: Simmons Radio Data 2010-2013 -Experian Information Solutions, Inc.

6 a.m. for 1 hour home (index of 295)

midnight-‐6 a.m. for ½ hour school (index of 101)

Base: Women in college ages 18-24 listen to radio via satellite at the following times and locations the most:

Objectives Advertising Objective: 1.  Promote the convenience of the IBC relationship to sell more Mary Kay at

Play, Botanical Effects and Clear Proof acne products among 18-24 year-old female college students to increase brand sales.

2.  Increase consideration for independent beauty consultant opportunities to the target audience.

Objectives Media Objective: •  Get 30% of target audience to buy two Mary Kay at Play cosmetic line products one or more times.

•  Get 3% to buy one Botanical Effects and Clear Proof acne product one or more times.

Objectives Marketing Objective: •  Reach #6 in color cosmetics by increasing sales by 2% to $23.2MM, which is equivalent to 2,320,000 Mary Kay at Play products.

•  Reach #5 in facial skin care by increasing sales by .1% to $1.56MM, which is equivalent to 104,000 Botanical Effects products or 78,000 Clear Proof Acne to-‐go sets.

Strategies: What •  Promote Mary Kay as a multifunctional make-‐up line that has a duality of professional and play. The customer/IBC relationship will help young women to look their best.

•  Promote the relationship with IBC makes buying Mary Kay more valuable than purchasing make-‐up in store.

●  Emphasis on Mary Kay at Play, Botanical Effects and Clear Proof acne products.

Strategies: When •  January 2015 -‐2016 •  During school year •  Heavy up January-‐February and August-‐September Rationale: These time periods are transitional phases for incoming

college students.

Impact Moments 1. Mary Kay helps girls look their best. -‐ Girls trying to look their best for important events

2. Mary Kay helps girls transition to a more professional look. -‐ Career searching

3. Mary Kay promotes everyday healthy skin. -‐ blemish control

Strategies: Where •  National Campaign

•  Emphasis in West and South

•  Heavy up in 30 university cities -‐ Los Angeles, San Francisco, Houston, Chicago *based off of Simmons data: 18-‐24 college females

Universities • University of Alabama • University of Missouri • Arizona State University • University of Florida •  Texas A&M College Station • University of California-‐ Berkeley • University of Oklahoma •  Tulane University…

Strategies: How •  High Frequency Campaign ●  $10 MM

Tactics • Magazine •  Paid Search •  Campus Promotions •  IBC Scholarship Sweepstakes •  IBC Video Contest

Magazine Ads •  Full-‐ page 4 Color •  Lays the national foundation and associates Mary Kay with big-‐name competitors

•  Cosmopolitan, Seventeen & Elle •  6 months of circulation

•  January, February, March •  July, August, September

Publication Choices Publication MRI Audience 4C Base Rate Total Paid and

Verified Circulation

Rate Base Frequency

Cosmopolitan 16,470,000 297,735 3,001,894 3,000,000 12

Elle 5,245,000 163,465 1,125,648 1,100,000 12

Seventeen 8,499,000 145,155 2,071,395 2,000,000 12

US Weekly 3,390,000 139,035 1,019,487 1,000,000 10

Teen Vogue 12,272,000 231,310 1,902,355 1,950,000 52

Magazine Popularity (Simmons) •  Cosmo -‐ 32.9% -‐ 1,426,000 •  Elle -‐ 10.8% -‐ 469,000 •  Seventeen -‐ 23%-‐ 997,000 • US Weekly -‐ 14.2% -‐ 616,000 •  Vogue -‐ 8.8% -‐ 382,000

Recommended -‐ Use Cosmo, Elle and Seventeen magazines -‐ all part of Hearst Publishing Corporation -‐ Average monthly 4C cost -‐ $181,906 -‐ 3 publications per month with 30% discount (because of 6 month duration) -‐ $545719.5 per month -‐ 6 month duration -‐ Total magazine cost -‐ $3,274,317 Total Magazines distributed -‐ 6,198,937 per month (6,100,000 guaranteed)

Attitudes -‐ Magazines -‐ Main source of entertainment -‐ 20% -‐ 854,000 -‐ Worth the money -‐ 24% -‐ 1,016,000 -‐ Enjoyment of reading ads -‐ 31% -‐ 1,340,000 -‐ Read ads out of curiosity -‐ 32% -‐ 1,389,000

Tactic: Paid Search Acne Cleanser

•  Aim for a 2% CTR for paid search ads •  Geo-‐target campaign to heavy up regions •  Keywords: Acne cleanser, facial cleanser, Mary Kay, face wash, Neutrogena,

acne treatment, get rid of acne •  Want to reach 25% of total audience acne cleanser users 18-‐24, roughly 2.7

million

Paid Search Rationale: Paid search ads have the ability to be very targeted and specific, which is an advantage with our large market of college women, ages 18-‐24. Through paid search, we can bid on keywords to complement the Acne Facial Cleanser. With these keywords, we will set a budget, a targeted area and specifically what regions of the country we would like to heavy up on.

Tactic: Campus Promotion •  IBCs will host events at sororities at each of the 30 college campuses

(organization through PanHellenic Association) •  Also at Professional Sororities

•  Events will happen three times per year –  Beginning of April and November before formal seasons and beginning of

August before recruitment. These times will hit our impact moment of helping girls look their best.

–  May vary depending upon college schedules •  Girls will be able to get tips from the IBC, try free products, buy products and

get information about how to become an IBC.

Campus Promotion Rationale Rationale: One of our key opportunities is targeting women entering the college community who are gaining a large social network and have the ability to become an Independent Beauty Consultant. By hosting sorority events during these impact times, Mary Kay can reach a large population of students while potentially gaining new customers through free samples and IBC information.

Tactic: IBC Sweepstakes •  College-‐ campus level sweepstakes •  Each 18-‐24 year old IBC is entered into sweepstakes to win $500 scholarship each semester for 2 years ($2,000 value)

•  One winner at each of the 30 college campuses

Tactic: IBC Contest -‐  Nationwide Online Beauty Tutorial Contest Introduced 1 July, 2015 •  Must be an IBC between 18-‐24 years old in the United States to be eligible. •  IBC’s will create an online tutorial demonstrating Mary Kay at play products

and upload them to the Mary Kay Contest page via Youtube by 15 October, 2015.

•  Videos can be shared across social mediums. •  The IBC with the most votes for their tutorial video on the Mary Kay website

and product sales during the month of November will win the following grand prize: An all-‐expense paid week trip for the winner and two of their friends to Paris Fashion Week Feb.2016.

Tactic: Nationwide IBC Contest •  Eligibility: must be an IBC between 18-‐24 years old in the United States to enter

•  IBC’s will create an online tutorial demonstrating Mary Kay At Play product application

•  Videos submitted through Mary Kay contest website •  Videos posted to Mary Kay YouTube channel

•  The IBC with the most votes for their tutorial will win the Grand Prize of a trip for 3 to Paris Fashion Week in February 2016.

IBC Contest Calendar •  Contest introduced July 1st •  Video must be submitted by October 15th • Mary Kay will launch contest website and post videos to YouTube on November 1st

•  Voting begins and continues throughout the month of November •  Winner selected based on number of votes as well as product

sales during the month of November

• Winner announced December 15th

Questions?

Mary Kay Media Plan

Marketing

store beauty

facial skincare

color cosmetics

market trends

mary kay

facial skincare

color cosmetics

media usage