Marykay Study
Mary Kay – Study
Market potential – how much are you going to sell and for what price? Who are the competitors? What are they doing that is different to the competitors?
The company consists of branded and packaged hair products including colorants, conditioners, shampoos, lotions.
This category produced 14.0 billion shampoo and conditioners accounted for 81% of hair care 11.34 bill
Branded and packaged account for small Indian market
40% I urban households and 10% rural and semi-urban
Substitutes – bath oil
Competitors
40 competitors – multinational brand firms and local Indian brand firms
– 10 companies captured 77%
– Two Indian firms
Retail channels – 96.4% sales other 6.4% direct sellers. Mary k don’t exist in 96%
Differentiation
Formula already produced by local firms
Product benefit platform – Unilever sells conditioners for each shampoo
Pricing – Products must be of a high quality but sold for a low price. Keep price low and maximize sales
MaryKay sells skin care and color cosmetics through personal selling
However, shampoo and conditioner not popular in india
The company does not yet sell hair care products
The company is not sure if they can sell shampoo and conditioners through direct selling.