CASE 4-8 Mary Kay in India
Sheryl Adkins-Green couldn’t ask for a better assignment. As the Mexico are the top four markets served by the company. The com-
newly appointed vice president of brand development at Mary Kay, pany’s global independent sales force exceeds 2 million. About
Inc., she is responsible for development of the product portfolio 65 percent of the company’s independent sales representatives
around the world, including global initiatives and products specifi- reside outside the United States.
cally formulated for global markets. She is enthusiastic about her Mary Kay Ash’s founding principles were simple, time-tested,
position, noting that, “There is tremendous opportunity for growth. and remain a fundamental company business philosophy. She
Even in these economic times, women still want to pamper them- adopted the Golden Rule as her guiding principle, determining the
selves, and to look good is to feel good.” best course of action in virtually any situation could be easily dis-
Getting up to speed on her new company and her new position cerned by “doing unto others as you would have them do unto you.”
topped her short-term agenda. She was specifically interested in She also steadfastly believed that life’s priorities should be kept in
the company’s efforts to date to build the Mary Kay brand in India. their proper order, which to her meant “God first, family second,
and career third.” Her work ethic, approach to business, and suc-
THE MARY KAY WAY cess have resulted in numerous awards and recognitions, includ-
ing, but not limited to, the Horatio Alger American Citizen Award,
Mary Kay Ash founded Mary Kay Cosmetics in 1963 with her life recognition as one of “America’s 25 Most Influential Women,” and
savings of $5,000 and the support of her 20-year-old son, Richard induction into the National Business Hall of Fame.
Rogers, who currently serves as executive chairman of Mary Kay, Mary Kay, Inc., engages in the development, manufacture, and
Inc. Mary Kay, Inc., is one of the largest direct sellers of skin care packaging of skin care, makeup, spa and body, and fragrance prod-
and color cosmetics in the world with more than $2.5 billion in ucts for men and women. It offers anti-aging, cleanser, moisturizer,
annual sales. Mary Kay brand products are sold in more than 35 lip and eye care, body care, and sun care products. Overall, the
markets on five continents. The United States, China, Russia, and company produces more than 200 premium products in its state-
of-the-art manufacturing facilities in Dallas, Texas, and Hangzhou,
China. The company’s approach to direct selling employs the
“party plan,” whereby independent sales representatives host par-
ties to demonstrate or sell products to consumers.
GROWTH OPPORTUNITIES
IN ASIA-PACIFIC MARKETS
Asia-Pacific markets represent major growth opportunities for
Mary Kay, Inc. These markets for Mary Kay, Inc., include Austra-
lia, China, Hong Kong, India, Korea, Malaysia, New Zealand, the
Philippines, Singapore, and Taiwan.
China accounts for the largest sales revenue outside the United
States, representing about 25 percent of annual Mary Kay, Inc.,
worldwide sales. The company entered China in 1995 and currently
has some 200,000 independent sales representatives, or “beauty
consultants,” in that country.
Part of Mary Kay’s success in China has been attributed to the
company’s message of female empowerment and femininity, which
has resonated in China, a country where young women have few
opportunities to start their own businesses. Speaking about the
corporate philosophy at Mary Kay, Inc., KK Chua, President, Asia-
Pacific, said, “Mary Kay’s corporate objective is not only to create
a market, selling skin care and cosmetics; it’s all about enriching
women’s lives by helping women reach their full potential, find
their inner beauty and discover how truly great they are.” This view
is echoed by Sheryl Adkins-Green, who notes that the Mary Kay
brand has “transformational and aspirational” associations for
users and beauty consultants alike.
Mary Kay, Inc., learned that adjustments to its product line and
message for women were necessary in some Asia-Pacific markets. In
China, for example, the order of life’s priorities—“God first, family
second, and career third”—has been modified to “Faith first, family
second, and career third.” Also, Chinese women aren’t heavy users
Shelly Katz/The LIFE Images Collection/Getty Images of makeup. Therefore, the featured products include skin cream,
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Cases 4 Developing Global Marketing Strategies CS4 23
Exhibit 1
Social and economic India 2007 China 1995
statistics for India Population (million) 1,136 1,198
in 2007 and China Population age distribution (0–24; 25–49; 50+) 52%, 33%, 15% 43%, 39%, 18%
in 1995.
Urban population 29.2% 29.0%
Population/square mile 990 332
Gross domestic product (U.S.$ billion) 3,113 728
Per capita income (U.S.$) $950 $399
Direct-selling sales percent of total cosmetic/skin care sales 3.3% 3.0%
anti-aging cream, and whitening creams. As a generalization, whit- Brand building in India also involved product mix and pricing.
ening products are popular among women in China, India, Korea, Four guidelines were followed:
and the Philippines, where lighter skin is associated with beauty,
class, and privilege. 1. Keep the offering simple and skin care focused for the new
Indian sales force and for a new operation.
MARY KAY, INDIA 2. Open with accessibly priced basic skin care products in
relation to the competition in order to establish Mary Kay
Mary Kay, Inc., senior management believed that India represented product quality and value.
a growth opportunity for three reasons. First, the Indian upper and 3. Avoid opening with products that would phase out shortly
consuming classes were growing and were expected to total over after launch.
500 million individuals. Second, the population was overwhelm-
ingly young and optimistic. This youthful population continues to 4. Address the key product categories of Skin Care, Body
push consumerism as the line between luxury and basic items con- Care, and Color based on current market information.
tinues to blur. Third, a growing number of working women have Brand pricing focused on offering accessibly priced basic skin
given a boost to sales of cosmetics, skin care, and fragrances in care to the average middle-class Indian consumer between the ages
India’s urban areas, where 70 percent of the country’s middle-class of 25 and 54. This strategy, called “mass-tige pricing,” resulted
women reside. in product price points that were above mass but below prestige
Senior management also believed that India’s socioeconomic competitive product prices. Following an initial emphasis on offer-
characteristics in 2007 were similar in many ways to China in 1995, ing high-quality, high-value products, Mary Kay introduced more
when the company entered that market (see Figure 1). The Mary technologically advanced products that commanded higher price
Kay culture was viewed as a good fit with the Indian culture, which points. For example, the company introduced the Mary Kay Mela-
would benefit the company’s venture into this market. For example, CEP Whitening System, consisting of seven products, which was
industry research has shown that continuing modernization of the specifically formulated for Asian skin in March 2009. This system
country has led to changing aspirations. As a result, the need to was “. . . priced on the lower price end of the prestige category with
be good looking, well-groomed, and stylish has taken a newfound a great value for money equation,” said Hina Nagarajan, country
importance. manager for Mary Kay India.
Mary Kay initiated operations in India in September 2007 with
a full marketing launch in early 2008. The initial launch was in
Delhi, the nation’s capital and the second most populated metrop-
olis in India, and Mumbai, the nation’s most heavily populated
metropolis. Delhi, with per capita income of U.S.$1,420, and Mum-
bai, with per capita income of $2,850, were among the wealthiest
metropolitan areas in India.
According to Rhonda Shasteen, chief marketing officer at Mary
Kay, Inc., “For Mary Kay to be successful in India, the company
had to build a brand, build a sales force, and build an effective sup-
ply chain to service the sales force.”
Building a Brand Mary Kay, Inc., executives believed that
brand building in India needed to involve media advertising; lit-
erature describing the Mary Kay culture, the Mary Kay story, the
company’s image; and educational material for Mary Kay indepen-
dent sales representatives. In addition, Mary Kay, Inc., became the
cosmetics partner of the Miss India Worldwide Pageant 2008. At
this event, Mary Kay Miss Beautiful Skin 2008 was crowned. ismagination/Shutterstock
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CS4 24 Part 6 Supplementary Material
Building a Sales Force According to Adkins-Green, independent sales representatives in India present in some 200 cit-
“Mary Kay’s most powerful marketing vehicle is the direct selling ies, mostly in the northern, western, and northeastern regions of
organization,” which is a key component of the brand’s marketing the country.
strategy. Mary Kay relied on its Global Leadership Development
Program directors and National Sales directors and the Mary Kay Creating a Supply Chain Mary Kay, India, imported
Sales Education staff from the United States and Canada for the products into India from China, Korea, and the United States.
initial recruitment and training of independent sales representa- Products were shipped to regional distribution centers in Delhi
tives in India. New independent sales representatives received two and Mumbai, India, where Mary Kay Beauty Centers were located.
to three days of intensive training and a starter kit that included Beauty Centers served as order pick-up points for the independent
not only products, but also information pertaining to product dem- sales representatives. Mary Kay beauty consultants purchased
onstrations, sales presentations, professional demeanor, the com- products from the company and, in turn, sold them to consumers.
pany’s history and culture, and team building.
“Culture training is very important to Mary Kay (independent LOOKING AHEAD
sales representatives) because they are going to be the messengers
of Mary Kay,” said Hina Nagarajan. “As a direct-selling company Mary Kay, Inc., plans to invest around $20 million in the next
that offers products sold person-to-person, we recognize that there’s five years on product development, company infrastructure, and
a personal relationship between consultant and client with every building its brand in India. “There is a tremendous opportunity for
sale,” added Rhonda Shasteen. By late 2009, there were some 4,000 growth,” says Sheryl Adkins-Green. India represents a particularly
attractive opportunity. Developing the brand and brand portfolio
and specifically formulating products for Indian consumers will
require her attention to brand positioning and brand equity.
QUESTIONS
1. A positioning statement briefly identifies the target market
and needs satisfied, the category in which the product com-
petes, and the unique attributes or benefits provided. What
information should be included in a written positioning state-
ment for Mary Kay
2. How would you draft a formal, written positioning statement
for Mary Kay using the information detailed in question 1
3. Is Mary Kay a global brand Why or why not
4. What advice would you have for the management of Mary
Kay in India going forward
Samantha Nandez/BFA/Shutterstock
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The Study of the Case - Mary Kay in India
1. A positioning statement briefly identifies the target market and needs satisfied, the category in which the product competes, and the unique attributes or benefits provided. What information should be included in a written positioning statement for Mary Kay
（1）principle：doing unto others as you would have them do unto you.
（2）Plan: party plan- whereby independent sales representatives host par_x0002_ties to demonstrate or sell products to consumers
（3）Objective: enriching women’s lives by helping women reach their full potential, find their inner beauty and discover how truly great they are
1. A positioning statement briefly identifies the target market and needs satisfied, the category in which the product competes, and the unique attributes or benefits provided. What information should be included in a written positioning statement for Mary Kay
（4）special products：skin cream，anti-aging cream, and whitening creams.
（5）brand: build a sales force, and build an effective supply chain to service the sales force
（6）aim：around $20 million in the next five years
2. Is Mary Kay a global brand Why or why not
Yes, it is a global brand.
Reasons:
（1）The imported products were sent to India from China, Korea, and the United States.
（2）Products were shipped to regional distribution centers in Delhi and Mumbai, India, where Mary Kay Beauty Centers were located.
（3）Object is to create a market, selling skin care and cosmetics
2. Is Mary Kay a global brand Why or why not
（4）It is about enriching women’s lives by helping women reach their full potential, find their inner beauty and discover how truly great they are.
（5）Brand pricing focused on offering accessibly priced basic skin
care to the average middle-class Indian consumer between the ages
of 25 and 54.
（6）It is priced on the lower price end of the prestige category with
a great value for money equation
2. Is Mary Kay a global brand Why or why not
All in all, the whole brand not only focus on several countries around the world, but also have some specific areas and aims at developing customers’ feeling and satisfying customer’s needs.
We can see that the market it focusing is all-round market. It can help itself broaden its horizons and widen its expansion. The whole market focus on the customer-centered price and experience. It is suitable for customers to build up his or her marketing confidence.
Therefore, it can be a global brand.
3. What advice would you have for the management of Mary
Kay in India going forward
(1) Actively adjust business development ideas and seize market opportunities. Improve rules and regulations, improve incentive policies, and constantly improve the enthusiasm of business personnel. The company's leaders, the Marketing Department, all subsidiaries and branches, and the Project Department are organically combined as the three levels of business development. Under the unified scheduling of the company, the three parties coordinate the marketing work.
3. What advice would you have for the management of Mary
Kay in India going forward
(2) Strengthen basic management and improve the competitiveness of enterprises. Pay close attention to project process management. Seriously implement the standardized documents of projects, do a good job in the pilot work of standardized management of key projects, conduct standardized training for key enterprises, and constantly promote and implement.
3. What advice would you have for the management of Mary
Kay in India going forward
(3)The structure of educational level has a great impact on the competitiveness of enterprises, and the education background of participating employees should be improved. The competitiveness of an enterprise to a large extent reflects the cultural heritage of the enterprise. The structure of the cultural level in the construction team has a great impact on the competitiveness of the enterprise. When building the enterprise team, enterprises should improve the cultural level of employees. When introducing talents, master’s and doctoral students are preferred.
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