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Positioning Statement MC 4040 Mary Kay

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Positioning Statement Proposal for Advertising Problems at Louisiana State University

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Positioning Statement MC 4040 Mary Kay

  1. 1. GSD POSITIONING STATEMENT PROPOSAL
  2. 2. Executive Summary Problem Statement Critical Factors Target Audience Positioning Strategy 1 Positioning Strategy 2 Strategy Decision Measuring Success Media Mix What We Will Discuss
  3. 3. THE PROBLEM GSD’'s challenge is to discover the most efficient way for Mary Kay to position itself as a relevant appealing brand to female Gen Y consumers. Because of Mary Kay's lack of positioning, the typical young woman associates the brand with an older audience. We need to find a way to embrace the brand's values while attracting a previously untouched target. Gen Y needs to know Mary Kay is the best quality for the best price and that it’s not just for older women. Mary Kay relies on its unique independent beauty consultant program to sell its products. While the IBC system should continue to be embraced, it causes problems for Gen Y consumers whom primarily shop in store or online. Gen Y consumers do not relate to the personal shopping experience as older generations have, and Mary Kay has to change that perception. GSD’'s objective with Mary Kay is to continue to celebrate the company's core values and traditions while establishing a modern and appealing positioning message to younger consumers. With Mary Kay;s new position, young consumers will see Mary Kay's cosmetics as sophisticated and empowering while coming to appreciate the company's respected history and values. The Challenge
  4. 4. THE PROBLEM If We Do Nothing If a new positioning strategy is not implemented, Mary Kay will not enter the minds of Gen Y consumers. They will stay loyal to their current brands and will not explore new options for Mary Kay's better quality products. The longer Mary Kay stays irrelevant to Gen Y consumers, the longer the stigma of being a brand for only older women will remain.
  5. 5. THE PROBLEM 96% of cosmetics users buy them IN A STORE MOST were VERY DISSATISFIED with the EASE OF ACCESS to Mary Kay but were VERY SATISFIED with the QUALITY of the products and VALUE RECEIVED Average ranking by our participants of IMPORTANCE when buying cosmetics 1 2 3 4 5 6 QUALITY OF A PRODUCT PRICE OF A PRODUCT BETTER THAN A COMPETITOR CULTURE OF THE BRAND EVENTS OR PROMOTIONS CELEBRITY ENDORSEMENTS Only 26 PARTICIPANTS use MARY KAY Products Neutrogena Clinique Maybelline Cover Girl Sephora Urban Decay ALL had over 60 USERS 37% of our study participants said they had used Mary Kay 63% had not
  6. 6. CRITICAL FACTORS Stores Cosmetics bought in store accounts for 80% of total purchases, and shopping together as a group is a common social event for Gen Y consumers. This is being enhanced by stores introducing ways to innovate the shopping experience, such as virtual make-up applications and touchscreen stations that conduct skin analysis. Furthermore, traditional stores such as Walmart and Target have introduced beauty advisors that provide on demand advice to shoppers. Digital Presence Mary Kay has made some solid improvements with their digital presence, increasing their digital IQ by 30% in the last year. Additionally, they rank 2nd in Pinterest followers of all global cosmetics brand. As brands are finding more and more ways to engage consumers through the digital medium, Mary Kay must continue its efforts in staying digitally relevant. Direct Selling Model Independent beauty consultants will be able to leverage the campaign to reach Gen Y consumers. IBC represent all types of women. Some work part time, while others use it as their primary income source. The Mary Kay IBC program is flexible and allows each consultant to manage their business in accordance with their lifestyle. This needs to be stressed to younger consumers who could easily make being a IBC a part of their busy lives. Competitive Factors
  7. 7. CRITICAL FACTORS Consumer Factors Perception Of Current User Mary Kay's current primary users are middle-aged female. The older crowd is loyal to and respects Mary Kay's history and core values. They appreciate the personal connection of IBC’s they have when purchasing products from an independent business consultant. While this is efficient for keeping their older audience loyal, the lack of innovation is not bringing younger consumers into their market. Social Factors When conducting research only 19 of 106 women ages 18-25 use Mary Kay on a daily basis. Mary Kay currently is not the brand you share with your friends and family that you use. It is more of a hidden brand since the association is with older women. Until the stigma that Mary Kay is for older women is erased, it will hurt the chances for Mary Kay to be introduced into social interactions of Gen Y consumers.
  8. 8. CRITICAL FACTORS SWOT Analysis STRENGTHS Mary Kay sells high quality products with reasonable prices. In addition, it offers three different cosmetic categories to embrace various levels of engagement (entry level, core and premium). Furthermore, Mary Kay conducts millions of tests each year to ensure that its products meet the highest level of quality, safety and performance. Overall, the company produces 200 premium products in its Dallas state-of-the-art manufacturing facility. Mary Kay is a company that proudly represents its founder's’ core values and beliefs. Mary Kay adopted the Golden Rule as her personal and professional principle, determining that the best course of action can always be related to ’doing unto others as you would have them do unto you.’ Today, the company continues to uphold these values and consciously considers its corporate responsibilities. Shopping with a Mary Kay IBC is an opportunity to receive personal assistance and buy products in a more personalized manner. By shopping with an IBC, consumers are able to try on products before buying them and receive advice by a consultant whose primary concern is her clients’ beauty needs WEAKNESSES The Mary Kay brand is not seen as innovative by younger consumers. Most Gen Y consumers think of Mary Kay as a brand targeted only toward older generations. Furthermore, there is a tremendous generational gap of attitudes toward the IBC model. Younger consumers do not share the same interest in being personally connected to a business consultant as older generations do. In addition, Mary Kay's IBCs are typically older women which makes it more difficult to reposition the brand to a younger audience.
  9. 9. CRITICAL FACTORS OPPORTUNITIES Mary Kay has the opportunity to tap into the Gen Y market. Mary Kay has not had any previously failed attempts toreachthe audiencebecausetheyhavesimplenot yet tried. Mary Kay does not have a negative brand perception with Gen Y, but it does not have much awareness or relevance to the target. By realigning its positioning, Mary Kay can gain relevance with Gen Y and increase its market share with an untapped audience. Mary Kay's unique IBC program allows consumers to have a personal connection with the brand and its products. While this model is currently unappealing to the Gen Y audience, Mary Kay has an opportunity to recapture the glamour and intrigue of buying from an IBC. THREATS Mary Kay does not offer any products in store or online. Gen Y consumers are attracted to the convenience of these shopping methods, and in store shopping accounts for 80% of total cosmetic sales. Gen Y consumers see shopping together in stores as a social experience and often go as a group. Furthermore, stores are beginning to innovate the shopping experience by introducing features such as touch screens that offer skin analyses. In addition, perhaps the largest threat Mary Kay is facing, is that stores such as Walmart and Target are beginning to hire in-store consultants who offer the same functions as a Mary Kay IBC. SWOT Analysis
  10. 10. TARGET AUDIENCE The Target Demographics - Females aged 18-25 years old - Wear makeup 5-7 days a week. - Most shop in stores - Most are single and have never been married - Annual income is $20,000 or less - Students and Young Professionals Psychographics - Our target audience wants a sophisticated makeup that’s both - Being well respected is an important quality, but they still like to - They like good customer service. - They value shopping as a social experience. - They are hesitant to try new brands and stick to the ones they’are - Do not mind being exposed to new products and information. good in quality and good in price. have fun and experience life. loyal to.
  11. 11. TARGET AUDIENCE Meet Classy Karly Karly is 22 and just graduated from Louisiana State University with a degree in Business. She is headed to Chicago for a internship at her dream company. She was a leader on campus and enjoys a good book and an occasional drink on the weekend with friends. Shopping is her favorite past time, and always want the best quality products for the best price. She's the kind of girl you want as your best friend because she always seems to have it together and knows how to be classy and fun at the same time. Karly is the girl who inspires you to be better.
  12. 12. PRICE and QUALITY are the main things she considers when buying a product. She buys most products UNDER $25 and very rarely OVER $50 She enjoys WARM RELATIONSHIPS with others and values her SOCIAL LIFE She values CONVENIENCE and ACCESSIBILITY when shopping for cosmetics, and most commonly buys her product IN STORES She values SELF-RESPECT and FULFILLMENT, butstill has fun and ENJOYS LIFE She DOESN’T tend to venture outside the brands and products she TRUSTS, but is still open to NEW PRODUCT information and exposure TARGET AUDIENCE
  13. 13. POSITIONING STRATEGY #1 To women aged 18-25 who wants to look classy and sophisticated without buying overpriced products of the same inferior level quality. Mary Kay is the brand that let’s you have it all. That offers the high quality products you want for a reasonable price. After all, there’s a reason Mary Kay has been around for over 50 years and is used by over 3 million customers worldwide. PRODUCT CLASS You Can Have It All
  14. 14. Slogan YOU DON’T HAVE TO HAVE A MILLION BUCKS To Look Like It
  15. 15. PROS -Emphasizes the AFFORDABILITY of Mary Kay’s HIGH QUALITY products. -Appeals to GEN Y’S who are in college and/or have a LOW INCOME. -Showcases Mary Kay’s product QUALITY. -Lets WOMEN know they are in CONTROL. CONS - Could be seen as “CHEAP.” - Message may MISS our target audience and instead APPEAL TO EVERYONE with a low income. - Affordability DOWNPLAYS the brand’s VALUE.
  16. 16. PRINT This will serve as the basic ideal for this position’s ad series. This ad is visually appealing and highlights the concept that you can have great cosmetic products at reasonable prices, while also showcasing MaryKay's products.
  17. 17. SOCIAL MEDIA We will post content related to our slogan on all major social media platforms and update Mary Kay’s current website. In addition to this, we will start a Pinterest board where consumers can come find makeup ideals.
  18. 18. TELEVISION This ad films two Gen Y consumers simultaneously getting ready through two different scenes split down the middle on the same screen. They’re getting ready in similar fashions, except Classy Karly (left scene) is smiling while she effortlessly applies her Mary Kay cosmetics while Karly’'s peer (right screen) struggles through her vast assortment of overpriced ’other brand’ cosmetics. The two screens merge together in the next scene as they arrive at the entrance to a sophisticated looking nightclub. The bouncer stops them, and to their surprise, there’s a $20 cover. Karly’'s peer has a look of shock as she realizes she can’t afford it, but Karly smiles (and looks beautiful) because she has money to spare and can cover her friend ’ thanks to the money she saved from buying affordable cosmetics from Mary Kay. You Can Have It All
  19. 19. EXPECTED OUTCOMES GenYwillstarttothinkoftheMaryKaybrandmorepositively.Theywill identifyMaryKayproductsashighquality,yetreasonablypriced.Saleswill goupwithinthetargetaudienceandbrandawarenesswillincrease.MaryKay willbegintobearelativecompetitorwithotherbrandsthatarealreadyinthe mindsofyoungconsumers.Finally,GenYconsumerswillretainlessloyaltyto competitorsastheystarttobranchoutandbeexposedtoMaryKay.
  20. 20. POSITIONING STRATEGY #2 Young women aged 18-25, who have high aspirations in life and strive to look classy but don’t mind letting their hair down and having fun. Mary Kay is the brand that helps you stand out in a crowd, leave a lasting impression and never be missed. Mary Kay represents a girl that values self-respect, has confidence, is so- phisticated and has it all together. Mary Kay will help you be the successful sophisticated women everyone will notice. PRODUCT USER You do your job. Does your makeup do its?
  21. 21. PROS - Gives target audience an EMPOWERING VISUAL/ideal of a young, - Establishes an appealing image for the ideal YOUNGER MARY KAY USER. - Steers Mary Kay AWAY from the image of being an older woman makeup. SOPHISTICATED and intelligent young woman using Mary Kay’s products. CONS - Can give the WRONG IMPRESSION if not done tastefully. - Might possibly give off a “PRETENTIOUS” rather than sophisticated image. - Can TURN OFF CONSUMERS who don’t relate or APPEAL to the people identified in the advertisements. - Keeps from focusing on the brands QUALITY and REASONABLE PRICE.
  22. 22. Slogan You do your job. Does your makeup do its? Brand Representative Based on the nature of this campaign, we decided it would be beneficial to have a brand representative. After conducting some primary research, we found that 53% of our participants would buy a product from Blake Lively. She makes a good spokesperson for this strategy because sheconnects with the target audience and they connect with her from her personal and acting experience. We believe that by using her in both print and television ads, we could peak new interest into Mary Kay's products. Blake Lively is classy Karly.
  23. 23. PRINTThis ad visualizes a Classy Karly being ahead of the game, and ahead of her peers, by sitting in the front row of her class taking notes. She is actively asking questions while her peers are around her playing with their makeup. Karly doesn’t need to constantly be worrying about her makeup though because she uses Mary Kay. Her Mary Kay cosmetic products help her be classy and confident, and show the worlds that she knows it.
  24. 24. SOCIAL MEDIA We will run a social media campaign in conjunction with our TV and print ads. We will post content on all social media platforms related to our slogan: “You Do Your Job, Does Your Makeup Do Its?“ Social media posts will include a sweepstakes with the theme of “Mary Kay cosmetics does its job. What“s yours?“ and encourages followers to post responses and pictures of themselves while sharing their aspirations (examples: having a successful job interview or making a 4.0 for the semester). Followers will be chosen at random and will receive $250 Mary Kay gift cards. In addition, we will create a Pinterest board where inspirational images are posted that relate to our target audience. Finally, we will update Mary Kay“s current website to be more modern and appealing to Gen Y.
  25. 25. TELEVISION This ad shows Classy Karly killing it with both her confident looks and her hustle game. Her cosmetics help her look classy while she waits outside an office as for her big job interview. She confidently smiles as she reviews her notes while to her left, a fellow interviewee is busy pampering and fixing her makeup. Karly goes in for her interview while her peer is still nervously applying makeup. Karly walks out, obviously very pleased with how her interview went, and does a slight (not pretentious) smirk as her peer is still struggling with her looks. This ad represents that Karly doesn’t need to waste time on her looks, because Mary Kay products do their job. They have a high quality that will help you through any situation. Karly is on top and is too busy making moves and achieving her goals to worry about her makeup.
  26. 26. EXPECTED OUTCOMES With this positioning strategy, we expect positive brand perception to greatly increase with Gen Y consumers. By giving Gen Y consumers a visual representation they can relate and identify with, they will begin to steer away from the thought of Mary Kay only being “for older women” and start to think of Mary Kay as a more modern brand. Furthermore, with this change in perception, Mary Kay’s brand awareness will improve tremendously in the minds of Gen Y consumers. Finally, with an improvement in both brand awareness and perception, Mary Kay product purchases by Gen Y consumers will increase as a result.
  27. 27. STRATEGY DECISION Based on research and our logical reasoning, we concurred that our second recommendation of creating a new product user positioning will be more effective. In order to truly resonate with Gen Y consumers, we need to establish a powerful, relatable image that puts the Mary Kay brand in the forefront of their mind. While our other recommendation of creating a new product class position has some good qualities to it, we are afraid that highlighting the affordability will downplay the brand more than establish a new positive perception. You do your job. Does your makeup do its?
  28. 28. STRATEGY DECISION MEASURING SUCCESS FOCUS GROUPS GOOGLE ANALYTICS TEXT-MINING MARKET SHARE BRAND AWARENESS In order to measure our results, we're going to track three things: brand awareness, brand perception and market share. To measure brand awareness, we’ll use Google Analytics to track Mary Kay searches, views and likes on each of the main social media platforms. To track brand perception, we’ll do a series of Text- Mining using R with replies about Mary Kay on Facebook and analyze the percentage of positive and negative responses. In addition, we will hold focus groups with both past and new consumers and see if their opinions have changed about Mary Kay. Finally, we’ll track Mary Kay’s market share to see if product purchases have increasedwithGenYconsumers.
  29. 29. MEDIA MIX Regional Promotion Mix Data showed that the largest amount of women aged 18-25 lived in the West and South regions of the United States. Additionally, we found the top 10 DMA for women 18-25. We will focus advertising efforts in these cities where we will achieve the best ROI. Additionally, National print and television advertisements will be placed in These cities include; Miami Philadelphia SanAntonio LosAngeles NewYorkCity SanFransisco Atlanta Houston Dallas Chicago
  30. 30. MEDIA MIX NewYorkCity LosAngeles Miami Dallas Philadelphia SanAntonio Atlanta Chicago Houston SanFransisco MaintainStrategy ExtremelyAggressiveStrategy AggressiveStrategy AggressiveStrategy BDI CDI The chart chows what strategies will be implemented in each of the 10 target cities. This is based off of the BDI and CDI found for Mary Kay's brand. Additionally, an Aggressive tactic will be used throughout the campaign.
  31. 31. MEDIA MIX Media Mix YouTube Yahoo Wikipedia Twitter Pandora Facebook Google Instagram Pintrest Social Media Placement TV Placement That70s Show 2 And A Half Men Big BangTheory Bones Criminal Minds Scandal Magazine Placement ALLURE Better Homes and Garden Cosmopolitan Entertainment Weekly GLAMOUR InStyle PARADE US Weekly VOGUE Product Placement Project Runway Upcoming Romantic Movies Celebrity Reality TV Women's Events
  32. 32. MEDIA MIX Timing We will use a pulsing strategy, spending in all periods and concentrate more heavily in certain periods. We plan to run the advertisements ranging from 4 p.m. to 2a.m. on weekdays and during select television shows on the weekends. December , January, March and September are the months we plan to concentrate on and will heavily focus spending during these high cosmetic selling months.
  33. 33. MEDIA MIX Budget 0   1,000,000   2,000,000   3,000,000   4,000,000   5,000,000   6,000,000   Total  10,000,000  Budget   Television   Print   Internet   Social  Media   Product   Placement   Giveaways   TELEVISION PRINT INTERNET SOCIAL MEDIA PRODUCT PLACEMENT GIVEAWAYS $5,010,000 $3,014,050 $920,000 $700,400 $350,000 $5,550
  34. 34. MEDIA MIX Flowchart Media Vehicle January Febuary March Big  Bang  Theory Scandel Television Bones CBS E!  News ALLURE Cosmopolotin Print US  Weekly Entertainment  Weekly YouTube Internet Pandora Yahoo Instagram Social  Media Twitter Facebook Promotional  Giveaways Product  Placement Television 5,010,000 808064.51 161,612.90 808064.51 Internet 920,000 138000 46000 138000 Print 3,014,050 452107.5 150702.5 452107.5 Social  Media 700,400 105060 35020 105060 Promotional  Giveaways 5,550 1110 0 1110 Product  Placement 350,000 70,000 0 70,000 TOTAL   10,000,000 1,574,342 393,335.40 1,574,342 April May June July August Spetember October 161,612.90 323225.81 323225.81 323225.81 161,612.90 808064.51 161,612.90 46000 46000 46000 46000 46000 138000 46000 150702.5 150702.5 150702.5 150702.5 150702.5 452107.5 150702.5 35020 35020 35020 35020 35020 105060 35020 0 0 1110 0 0 1110 0 0 0 70,000 0 0 70,000 0 393,335.40 554948.31 626,058 554948.31 393,335.40 1,574,342 393,335.40 November December 161,612.90 808064.51 46000 138000 150702.5 452107.5 35020 105060 0 1110 0 70,000 393,335.40 1,574,342
  35. 35. 2.277 BILLION dollars are annually spent on cosmetics. It’s time for MARY KAY to be at the TOP
  36. 36. You do your job. Does your makeup do its?
  37. 37. REFERENCES SimmonsOneViewSM. (n.d.). RetrievedFebruary12, 2015, fromhttp://www.experian. com/marketing-services/simmons-oneview.html Creativeimages. (n.d.). RetrievedFebruary12, 2015, fromhttp://www.gettyim ages.com/CreativeImages?esource=SEM_GI_GO_US_Competitive_ Strategy_EN_Stock_Photo&kw=US_stockphotos_exact_stockphotos_e&k MaryKayeCatalog. (n.d.). RetrievedFebruary12, 2015, fromhttp://www.marykay. com/en-US/TipsAndTrends/MakeoverAndBeautyTools/Pages/ Mary-Kay-eCatalog.aspx 59% ofWomenSpendOver$150 onCosmeticsAnnually. (n.d.). RetrievedFebruary12, 2015, fromhttp://insights.popsugar.com/59-Women-Spend-Over-150-Cosmet ics-Annually-35031000 VanityFlair. (n.d.). RetrievedFebruary12, 2015, fromhttps://www.motifinvesting.com/ motifs/vanity-flair#/overview Qualtrics: OnlineSurveySoftware& InsightPlatform. (n.d.). RetrievedFebruary12, 2015, fromhttp://www.qualtrics.com/ MaryKay| OfficialSite. (n.d.). RetrievedFebruary12, 2015, fromhttp://www.marykay. com/en-US/Pages/default.aspx Top50 CosmeticsBrands2013. (n.d.). RetrievedFebruary5, 2015, fromhttp://brandirec tory.com/league_tables/table/cosmetics-50-2013 Lyle Currier & Nichole Wierschem GSD

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