Master Copy Mary Kay Media Plan
Master Copy Mary Kay Media Plan
Master Copy Mary Kay Media Plan
JOSHUA CUPPY
TABLE OF CONTENTS
SITUATION ANALYSIS ............................................................ 3
INDUSTRY ANALYSIS ............................................................. 4
COMPETITIVE ANALYSIS ....................................................... 5
TARGET AUDIENCE ANALYSIS ........................................... 6
SEGMENTS .............................................................................. 7
KEY MARKETS ........................................................................ 9
MARKETING ........................................................................... 10
MARKETING OBJECTIVES ................................................... 11
SWOT ANALYSIS .................................................................. 11
ADVERTISING OBJECTIVES ................................................ 13
MEDIA OBJECTIVES ............................................................. 14
TARGET AUDIENCE .............................................................. 15
MEDIA MIX ............................................................................. 15
REACH & FREQUENCY ....................................................... 15
SCHEDULING & TIMING ...................................................... 15
MEDIA BUDGET .................................................................... 15
GEOGRAPHY ......................................................................... 15
MEDIA STRATEGIES ............................................................ 16
MEDIA TACTICS ................................................................... 18
APPENDIX .............................................................................. 19
Situational Analysis
Like most businesses, the beauty landscape is ever evolving. While
the beauty industry only included beauty and skin care products in the
beginning of its life stage, it has grown to encompasses much more than
that today. It has grown to include hair care, fragrance, nail polish, lotion
and hair care. This growth exist because the people of today demand it.
The industry continues to expand globally. The cosmetics industry accounts
for $160 billion a year. Beauty sales in the United States alone made $63
billion in 2012 with a 3.4% increase in sales from 2011. Not only does
the industry change but the retail landscape for cosmetics is changing as
well. E-commerce accounts for 5% percent of all cosmetics sales globally.
E-commerce is expected to see the highest gross of sales for cosmetics
in the next 5 years. While online shopping has came on strong recently,
the bulk of sales still come from traditional stores and direct selling. Direct
selling accounts for 11% of all sales while store based accounts for 805 of
all sales.
Mary Kay is a privately held company that specializes in skin care
and color cosmetics through direct selling. Mary Kay has built a reputation
as a company that cares. They have recently made waves with their cor-
porate social responsibility programs such as Pink Doing Green and Pink
Changing Lives. Mary Kay does have a reputation as an older genera-
tions brand, with the average age of users being 36 years old. Mary Kay
has moderate brand awareness among young women, ranking as high as
number 2 in beauty products ranking, even with the perception that its for
older women. This perception has led to Mary Kay being ranked behind
companies such as Estee Lauder, LOreal Paris, Revlon, Dior and Avon.
Due to this perception that Mary Kay sells a product for older people,
Mary Kay has struggled somewhat to engage Gen Y, 18-25 year olds, and
build a platform to attract this audience.
Situational Analysis
Founded in 1932, Revlon is one of the older cosmet-
ics brands. Revlon, whos logo is Feel like a woman,
recently made waves by bringing back 1953 Fire
and Ice campaign with Jessica Biel. Revlon has a
high market share in color. They have a 5.6% of color
while Mary Kay only has 3.6%. In 2012, Revlon had
an annual sale of $1.4 billion, down from the year
before.
Founded in 1946, Estee Lauder is in direct compe-
tition with Mary Kay. Estee Lauder also owns other
brands that Mary Kay is in direct competition with as
well such as MAC and Coach . Both Estee Lauder
and its subsidiary MAC have a higher market share
than Mary Kay in color. Estee Lauder also has a
higher market share than Mary Kay in skin care.
LOreal is the worlds largest cosmetics company.
Founded in 1909, it is one of the most well known
companies in the world. Known for the famous slogan
Because Im worth it, it was changed to Because
were worth it in 2009. LOreal is one of the bigger
names in the color industry. LOreal has a 7.1% mar-
ket share of color.
Avon is another direct selling company that is in competi-
tion with Mary Kay. Known as the Company for Women,
Avon is currently in direct competition for the 18 to 25
millennials with the Mark product line Avon is ranked
second in the top 10 direct selling companies. Avon is the
fifth largest beauty company in the world. Avon is sold in
over 140 countries across the world. In 2012, Avon had
an annual sale of $10.7 billion worldwide, down 5.3% from
the year before.
Competitive Analysis
TARGET AUDIENCE
Target Audience
Our goal is to reach and attract 18 to 25 millennial women. Our research team had originally separated this audience
into two-cohorts because women buy their makeup differently based upon their age. However we determined that both
groups bought makeup the same way. What was different was what they were buying it for. The older groups bought it to
look presentable for their place of work while the younger group was buying makeup for their social life. Using this piece
of information, the groups have been split from age to lifestyle groups, the beginning professional and the social butterfly.
The beginning professional is a strong independent woman starting her career after college. They are transitioning from a
socialite to a business woman. While social events are still important to this group, being presentable to employers and
clients are a big factor. The social butterfly is a woman who is more focused on her social life. Their makeup habits would
be based on what social event theyd be attending or based on the group of friends that they would be associating with.
Segment 1: The Beginning Professional
Vals: Believers, Achievers, Experiencers
Prizms: Boomtown singles, City Startups and New Beginnings
Kayla Johnson: Kayla, a recent college graduate, has moved into a middle-class suburb of Louisville, Kentucky to begin her
new career. For her day-to-day looks, Kayla prefers to wear light amounts of makeup, generally either focusing solely on
the eyes, or if complexion is an issue, solely on foundation and concealer. Kayla has different reasons for wearing makeup,
ranging from looking more professional and polished to trying to attract attention, and to trying to draw attention away from
blemishes. Although she is very confident with her looks, she enjoys the confidence boost that makeup gives her. Kayla is
not brand loyal. Rather, she wants the best quality makeup for her limited budget. Kayla uses social media platforms such
as Pinterest, Facebook, Twitter and YouTube to stay updated on makeup and fashion trends.
Segment 2: The Social Butterfly
Vals: Makers, Strivers
Prizms: Up-and-Comers and Bohemian mix
Caroline Miller: Caroline is currently working her way through college at a public university in Memphis,
Tennessee. Caroline loves to go out and have a good time and attract people. Caroline looks for a
makeup brand that will give her that instant satisfaction and confidence. When it came to older brands,
Caroline was not favorable to them. Caroline feels that older brands appeal more to an older genera-
tion and that they are not hip and stylish. Caroline is a big user of social media and uses it to stay
connected to friends and find the hottest local party spots.
Key Target Markets
1. Waco- Temple-Bryan, TX
2. Tallahassee-Thomasville, FL
3. Lansing, MI
4. Columbus, OH
5. Lafayette, IN
6. Johnstown-Altoona, PA
7. Santa Barbara-Santa Maria-San Luis Obispo, CA
8. Phoenix, AZ
9. Boston, MA
10. Los Angeles, CA
Campus Coverage
West coast colleges and universities
With one of our key segments in school, plac-
ing extra emphasis on college campuses would
be beneficial to Mary Kay. These are the col-
leges and universities with the heaviest 18 to
25 millennial population in the top 10 DMAs.
1.Westmont College
2. Antioch University
3.California State university, LA
4.California State, Northridge
5. University of California, LA
6. Arizona State University
Southern colleges and
universities
North and northeastern colleges
and universities
1. Baylor University
2. Florida State University
1. Michigan State University
2. Ohio State University
3. Boston University
4. Boston College
5. Purdue
6. Pennsylvannia State University
MARKETING
Marketing Objectives
1. Increase awareness among female consumers age 18-25
2. Increase positive perception among female consumers age 18-25
3. Increase consideration for product purchase and for the Mary Kay
business opportunity amount female consumers ages 18-25
SWOT Analysis
Strengths
An established brand.
Has an established presence on social media
Ranked in top 10 in color, skin care and beauty and per-
sonal
Strong promotional and PR presence with social responsi-
bility programs such as Pink Doing Green and Pink Changing
Lives
Made $3.1 billion in sales in 2012, an increase of 6.9% from
2011
Weaknesses
Does not sell product in an established location.
Must rely on IBC purchasing Mary Kay Stock. IBC may
not be able to afford her stock for that month.
Consumers cannot purchase the product on the compa-
nys website
Company has an image of grandmother makeup
Poor website that does not allow for purchasing or view-
ing prices.
Poor advertising presence in media.
Reports that Mary Kay is pyramid scheme
Opportunities
Use Social Media platforms like Pinterest, whose target
audience is women 18-34, to attract Gen Y females
Using cheap pop-ups on college campuses to attract
younger audience
enhance digital customer experience with an updated
website could lead to more sales
Capitalize on Avons decrease in sales by 5.35 in 2012
Capitalize increase of social media activity of 2012
High demand of cosmetics
Demand for products that boost confidence
Threats
Rival companies increasing market share because of
ease of acquiring their product
Avon has the market share over Mary Kay in fragrance.
Consumers have wide availability of makeup options
Other brands have a stronger social media presence
face a high competitive landscape
Green movement against chemical based products
ADVERTISING OBJECTIVES
Advertising Objectives
1. Increase Knowledge of Mary Kay make up
2. To position Mary Kay as a way for members of the target audience to define them-
selves and their actions as self-expression.
3. Reposition Mary Kay as a young, hip, and fashionable brand of makeup; not your
grandmothers makeup.
MEDIA OBJECTIVES
Media Objectives
1. Target Audiences: Build awareness and purchase consideration of Mary Kay cosmetics among age
18 to 25 millennial females.
2. Media Mix: To implement a flighted media mix focused on social media, television, magazines and
promotions.
3. Reach and Frequency: Achieve a reach of 70% and a frequency of 3.0 during flighted months.
4. Scheduling and Timing: To Launch a one year campaign with a flighted schedule running from Feb-
ruary 1, 2015 to February 2016.
5. Media Budget: Achieve marketing objectives with a budget of $10 million.
6. Geography: To focus the media plan nationally and heavy-up in 10 key DMAs with high concentra-
tions of 18 to 25 millennial women.
MEDIA STRATEGIES
Media Strategies
Create a continuous online presence using social media
Flight pop up events at colleges in the top ten DMAs
Target the top ten DMAs with age 18 to 25 female millennials.
Heavy up in spot markets during the month of February 2014.
Shared Media
Facebook
Twitter
Instagram
Pinterest
YouTube
Owned Media
Mary Kay website
Mary Kay mobile app
Mary Kay YouTube videos
Earned Media
Beauty That Counts donations
Mary Kay Pink Doing Green initiative
Donations to domestic shelters and programs
Purchased Media
Internet display advertisements
Product placement
Pop-Up events
Magazines 4PG4C
MEDIA TACTICS
Media Tactics
National Flighted
1. Social Media: Internet banners on social media and sponsored social media pages designed to attract 18 to 25 millennial
females - 6,500,000
2. Magazine: Full page four color ads placed in Teen Vogue(average reader age 23.1) and Seventeen Magazine(average
reader age 25) - 1,000,000
3. Television: 15 second spots placed in front of shows such as The Vampire Diaries, The Carrie Diaries and Americas
Next Top Model on The CW network-1,500,000
4. Product Placement: The use and scenes showing Mary Kay makeup in the 2014 film 50 Shades of Grey - 500,000
5. University Pop-Ups: Pop-up events during the months of February, March, April and October. These will be held at col-
leges in our top ten markets where students can sample Mary Kay makeup and meet local independent beauty consultants
- 500,000
APPENDIX
Sources
1. NSAC 2013 Mary Kay Case Study
2. Ad-ology
3. SRDS
4. Census.gov
5. Vals(http://www.strategicbusinessinsights.com/vals/presurvey.shtml)
6. Prizms(http://www.claritas.com/MyBestSegments/Default.jsp)
7. Census.gov
8. Nielsen.com/
9. Pewinternet.org/
10. LexisNexis
11. MaryKay.com
12. Avon.com
13. Revlon.com
14. LOreal.com
15. EssteeLauder.com
16. fashionista.com
17. Mediaflightplan.com
18. CWTV.com
19. Condenast.com
20. Seventeenmediakit.com