Index 1. Millennials: A Snapshot Of a Generation Millennials vs. Baby Boomers Make-Up Usage of Millennials Make-Up Rituals of Millennials How to Get a Millennials Attention How to Get Millennials to Share & Love Your Product Media Usage of Millennials Marketing & Advertising to Millennials
3. Mary Kay Experience
2. Competitors
Mary Kay Overview
Cosmetic Market & Trends
IBC’s Point of View
Eyes
Attitude towards Mary Kay
Lips
Current Advertising Case Studies
Facial
Case #1: “Project Runway All Stars Season 3”
Direct Competition: Avon
Case #2: “Mary Kay Fall Into Your Beauty 2013 Tour”
Field Observations & Findings Mary Kay Perceptual Map
4. Insight Facts on Potential Consumers Latinos and New Media Advertising to Latinos Latinos and Cosmetics
5. Methodology & Creative Brief 6. References
1. Millennials: Snapshot Of a Generation
2. Competitor
3. Mary Kay Experience
4. Insight
5. Methodology & Creative Brief
6. References
Millennials vs. Baby Boomers In terms of population, Millennials exceed the Baby Boomer generation. They formed the largest consumer group, and is the most diverse group in regards to ethnicities. Millennials are more educated than previous generations. Since this generation’s current financial restraint, they tend to live with their parents longer (Mintel, 2012). Also, Millennials have distinct views on the world that are very different from older Baby Boomer Millennials follow the most advanced technology and societal trends, and most likely to try out new products. The advance technology has helped them view the world differently, and has changed their lifestyles (Mintel, 2012). Compared to female Baby Boomers, Millennial women have very different opinions towards the traditional feminism. Since Millennials tend to live with their parents longer compared to older generations, they respect their elders and take responsibility to take care of their parents. Also, they don’t regard the workingwoman as the ideal feminist figure. They prefer to enjoy life outside of work, and ideally want to form a family in the future (Pew, 2010).
Make-Up Usage of Millennials Many women from our target age group started wearing makeup in middle school, some using their mom’s makeup. Not many had the opportunity to have a professional teach them. In addition, most women in the target group described that their ideal makeup is the one that perfectly blends in
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(Source: Mintel, 2012)
generation. Even with the financial instability,
with their skin. In their opinions, it is difficult to match foundations to their skin tones. If they are to able to find that ideal brand, they will be loyal to that brand. When respondents were asked to associate a word with Mary Kay, many thought of the brand was old, cheap, and for makeup parties. Some had
(Source: Mintel Color Cosmetic, 2013)
never even heard of the brand. (Focus groups, 2013).
- Eye Makeup: Mascara is the most frequently used eye makeup for both Millennials and Baby Boomers followed by eyeliner and eye shadow. - Face Makeup: The facial cosmetics segment is projected to grow the strongest among other categories. - Nail Polish: There are opportunities for small industry to grow in nail category. Young women are the primary market.
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(Source: Mintel Color Cosmetic, 2013)
According to each category risk level, Millennial women tend to adjust their budget for the expensive product that work best for them. They are more likely to try lower-risky items like mascara or lip-glosses at drugstores, while purchasing less-risky products like foundation at more prestigious stores (Mintel, 2013). (Source: Mintel Color Cosmetic, 2013)
Female Baby Boomers tend to use less color makeup as they age. Women
ages 18-25 use more makeup products than women 25 and older. Women ages 65 and up wear makeup to look natural while seeking anti-aging solutions. While natural makeup is still the main reason for younger women to wear makeup, younger women’s attitudes towards color cosmetics were more diverse. It makes them feel confident and look professional (Mintel, 2013). 3
The majority of Millennials ritually wear makeup in the morning. They spend 172 hours on applying cosmetics every year, but still 26% of them are not confident in their ability to apply products correctly (Adv 612 note, 2013).
Make-Up Rituals of Millennials “I feel more confident when I know I look my best” “Enhance facial features” “I feel more presentable when wearing them” “To make my face look beautiful” “Confidence”
Here are some reasons why Millennial women wear makeup. In our qualitative study, we surveyed 40 Millennial women ages 18-30 about their views on makeup. 48% of the respondents wear makeup often, and 30% of them occasional wear makeup. For makeup recommendations, 25% of them rely on their friends while 23% of them do not seek out any recommendations for cosmetics. Our survey found that makeup made our respondents feel: · Nothing (2) · Fun (2) · Artistic (1) · Neat (1) · Clean (1) · Enhanced (15)
· Sociable (7) · Beautiful (4) · Presentable (3) · Confident (2) · Cute (1) · Nice-Looking (1)
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· Serious (1) · Awake (1) · Responsible (1) · Different (1)
(Source: Google Survey September 10 – September 19, 2013)
“It’s the art of beauty – just another form of expression”
Lab42 conducted a survey among 500 millennial women, ages 18 to 34, in the United States, who purchase makeup products. The research ran from May 6 to 8 in 2013. Here are some key highlights from the survey: · Free samples are the no. 1 way to influence these women to try a new makeup brand. · Mascara is the no.1 makeup product that they would wear everyday if they were to choose only one. Foundation came in at second. · 42% follow beauty brands on the social media. Nearly about a half of them received a discount as a result. · 95% use makeup to enhance their features. · 94% indicate that wearing makeup make them feel more confident. · 84% use it to hide their flaws. · 36% feel obligate to wear makeup.
(Source: Lab42)
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How To Get A Millennials Attention “In cosmetics, if Millennials don’t see the package they expect, they will walk out of the store, because they’re focused on the visual, not the content.” (Turner, 2013) Having a striking image attracts Millennials attention. They pay great attention to design, especially as it relates to how information is displayed. They will notice how photos are laid out on a page but overlook what is said in the featured article (Turner, 2013). Millennials need to be warned that a package change is coming and be shown, repeatedly, what the new package will look like, so as not to be frustrated when they no longer see the box or bottle they have come to recognize (Turner, 2013). Our focus groups contained a photo sort exercise where the respondents were assigned a female celebrity between the ages of 18-25 (Adele, Jennifer Lawrence, Ariana Grande, Rihanna, Jordin Sparks, Emma Watson, etc.). With their assigned celebrity, they were to select which of the following makeup ads (Clinque, Maybelline, Bobbi Brown, Mary Kay, M.A.C, CoverGirl, Estee Lauder, Revlon, Elf & L’Oreal) would their celebrity use. The respondents chose ads that were simple and natural like Bobbi Brown, Estee Lauder and L’Oreal or chose ads that were vibrant and full of color like M.A.C, CoverGirl or Maybelline. None of the respondents selected Mary Kay in our photo sort exercise (Focus Groups, 2013).
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How Get Millennials To Share & Love Your Product In reaching Millennials, it’s important to have a product that they will love and would want to share with their friends and family.
MILLENNIALS CELEBRATE BRANDS WITH PURPOSE Millennials are known to be the most compassionate with regard to social issues. Millennials will seek out and buy brands that support a cause that align with their values. Target, Gap, and Nike are brands that are strongly connected with a social purpose that makes the buyer feel better about him or herself (Fromm, 2013).
MILLENNIALS WANT A PERSONAL CONNECTION Millennials don’t want to be spoken to; they demand to be spoken with. Again, Nike is a prime example of a brand that allows Millennials to make personal connections (Fromm, 2013).
MILLENNIALS ACCEPT DIFFERENCE Millennials were raised to accept differences. Dove’s “Real Beauty Campaign” resonates with Millennials based on acceptance of one’s inner true beauty. However, the “sex sell” approach from Abercrombie & Fitch falter due to Millennials growing tiredness of this tactic (Fromm, 2013).
MILLENNIALS EMBRACE DISRUPTION Millennials love something different. Dollarshave.com and Jay-Z’s Samsung collaboration release of his album Magna Carter…Holy Grail are examples of flipping the script and being rewarded for it. Dollarshave.com offers cheap razors with no frills for a small charge, without focusing on the features and benefits of their competitors. Jay-Z’s exclusive launch with Samsung caused disruption in the music industry by providing 1 million Samsung subscribers copies of the latest album. This disruption helped Jay-Z earn his 12th number one album (Fromm, 2013). 7
MILLENNIALS EXPECT A DIALOGUE Brands must embrace a two-way dialog in the form of story-doing. This means giving the consumer the opportunity to co-create products and services, the experiences in which these products/services/ideas are delivered and enjoyed and the marketing and social media messages. Optical company Warby Parker used this technique in their approach with their expensive eyeglasses. In order to offer a cheaper, high quality alternative in the industry, they incorporated the purchaser by donating one pair of glasses to someone in need for every pair of glasses purchased. This became a success with Millennials and they responded by sharing with their peers and pushed the brand into record sales (Fromm, 2013).
Shopping With Millennials Millennials shop where they live. Retailers become local resources for what’s hot and provide reasons for shoppers to come into their store. They want the latest and greatest. They are well informed and know exactly what they are looking for. They are open to new experiences and enjoy trying new things (Turnder, 2013). One key characteristic of millennial shoppers is that they view shopping as an experience rather than a chore. For example, Millennials are more likely than all consumers in the 30+ age group to visit a variety of stores when they are on a shopping expedition and to spend long periods of time browsing in stores and to buy things on the spur of the moment (Marketresearch.com, 2013). Location-based deals allow companies to advertise and target to customers in their immediate area. Future opportunities for social discount targeting could focus on demographics, lifestyle and interests, and special dates (“Deal or No Deal�, 2012).
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Media Usage Of Millennials “Quantity suggest quality when it comes to opinions” (Turner, 2013) Millennial women are in the forefront of the Social Media Revolution with 86% of women 18-29 more likely to use social media than 71% of men 1829. They are more likely to blog than any other consumer segment, with 13% of them reporting they visit blogs six or more times within the last 30 days (Marketresearch, 2013). 45% of Millennials between the ages 18-34 are using Smartphones as their primary medium of communication. Millennials are looking to mobile applications on their Smartphones for various phases of the shopping lifecycle: finding, purchasing, and sharing discounting deals (“Deal or No Deal”, 2012). On average, fans spend $71.84 more on products they are fans of, compared to non-fans, who are 28% more likely than non-fans to stay with a brand. They are 41% more likely than non-fans to recommend to friends a product they are a fan of (“Deal or No Deal”, 2012). Keep in mind that if Millennials are fans of your product they will share their enthusiasm. However, if Millennials lose trust of your brand, they have no problem sharing their dissatisfaction. 54% share negative experiences with their friends and family, 41% boycott the company, and nearly one-third post something on their social network about the brand (32%) or have joined a community of people who dislike the brand (29%) (“Deal or No Deal”, 2012).
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Marketing & Advertising To Millennials Millennials more interested in cell phone ads Advertisers have a higher likelihood of engaging Millennials on their cell phones than they do other consumer segments (Marketresearch, 2013).
TV commercials are more interesting to Millennials than older viewers Millennials are more likely than those in older age groups to agree that they find television advertising interesting and that, quite often, it gives them something to talk about (Marketresearch, 2013).
Marketing messages should focus more on activities they enjoy Traveling or Fitness are prime examples of this (Turner, 2013).
The best way to reach Millennials is online Having a website is key, but you must also have pages on various social media platforms like Facebook, Twitter, Instagram and Pintrest (Turner, 2013).
Have a consistent product brand image Consistency is important for the millennial targets. 86% of millennials consult one to three information sources (family, friends, search engine specialist website) before choosing a brand, product or service to buy (“Deal or No Deal”, 2012).
Create repeat business Companies must be strategic in selecting the right product offering for the social discount. They could focus on longer-term offerings, such as productof-the-month options, to get consumers hooked on the product instead of using deals for one-time purchases (“Deal or No Deal”, 2012).
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Cosmetic Market & Trends According to Mintel market research on color cosmetics, this category has risen by roughly 13% over the past five years. Total sales in 2013 were 9.2 billion. It is forecasted to grow by roughly 2-3% every year through 2018. (Mintel, 2013) Cosmetic trends in the makeup category includes the chubby eye pencil that is useful for the “on the go� woman and the BB cream (a.k.a. the multi functional facial cream) is also very popular among women. Both the cream and the pencil are multifunctional, saving time and money. Nail polish is the gateway to wearing makeup. Majority of teens get started with nail polish before moving into actual makeup. Interestingly, little are girls are influenced to wear makeup when they watch their favorite Disney princesses or play with Barbies. Price is the major factor when buying makeup, sometimes over quality of makeup. This is good news for the Mary Kay botanical line. It is less clinical, more approachable and contains natural ingredients for sensitive skin (Tracy Perez, 2013).
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(Source: Mintel Color Cosmetic, 2013)
Eyes
Mascara is the most used item among Millennial women. The majority of our respondents said they use mascaras on a daily basis. Eyeliner and eye shadow are the next popular items (Focus groups, 2013). L’Oreal’s Maybelline and P&G’s CoverGirl are the most purchased brands in the eye makeup category. L’Oreal cosmetic is the leading brand for this category with 50% of the market share followed by P&G with 20% market share and Revlon with 13.4% (Mintel, 2013). 12% of Millennial women mascara consumers use Mary Kay mascara. While Avon, its direct competitor is slightly performing slightly better. 19% of Millennial women who uses eye products prefer Avon’s. CoverGirl is the leader in both mascara and eye product usage among Millennial women ages 18-24 (Mintel, 2013). 12
Millennial consumers prefer to use lipglosses and lipsticks from brands such as CoverGirl and Avon. At 21%, Avon’s lip products have the second highest usage among young Millennial women. With similar direct sales approach like Avon, we believe that Mary Kay has a huge potential for growth with this target demographic (Mintel, 2013).
(Source: Mintel Color Cosmetic, 2013)
Lips
Facial Women tend to spend more money on facial foundations over mascaras or eyeliners. However, the overall facial cosmetic usage among Millennials is (Source: Mintel Color Cosmetic, 2013)
relatively lower than older women (Mintel, 2013).
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Direct Competition: Avon Avon is Mary Kay’s biggest competitor in the direct selling market. The company’s 97% of BPC (Beauty and Personal Care) sales were generated by mass cosmetics. Their core products are color cosmetics (25.7%), skin care (24.8%) and fragrances (24.3%). According to Euromonitor, Avon is known as “the company for women”, and is currently considered the leading direct selling company in the word. They position themselves as “the oldest and best known of all direct sellers”, “as a glamour-lead-mass-marketing proposition” and “The use of celebrity faces in representing their brand” (Euromonitor, 2013). Avon has sales and distribution operations in over 100 countries, operated by 6.4 million distributors. Latin America is currently Avon’s most successful region in sales. With 5 million in sales, Latin America generated more than 3 million dollars in sales for Avon over North America. Avon has seen a total decline in total revenue by 6% due to exchange rates but has seen sales grow by 5% and an increase in active participants by 2% (Euromonitor, 2013). Latin America continues to be Avon’s main focus. The company has shifted their focus away from other countries and territories. In the last few years, Avon has pulled out of several markets including Japan, South Korea & China. By the end of 2013, Avon plans on shutting down plants in Ohio and Germany to focus on other territories (Euromonitor, 2013).
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Field Observations
Sephora
Ulta
Macy’s
Layout
- Black and white palette - Lots of mirrors - Club atmosphere - Mid-tempo music
- Supermarket like layout - Bright but lacked the sophistication in interior layout
Cosmetic section is located near the mall entrance next to women’s clothing.
Products
- Top Brands: Dior, Lancome, Benefits and Givenchy - Each lines had its own sub-branded section -Editorial photographs and sample of products placed in front of packaged boxes. - Beauty Studio - Sephora’s Favorite
- Top brands: Benefit have its own full storefront inside Ulta - Mostly low-end of drugstore cosmetic - Many products were placed in lower shelf - Some samples are available but mostly packaged.
- Brands were Clinique, Origins, M.A.C, Dior, and Channel. Mostly high-ended brand. M.A.C was the only brand to have section off completely from the rest of the brands. Each brands had a designed section – Chanel had a fancy black chair and distinctive shelve design.
Employees
- All sales reps wear black dresses/skirts with pink stripes. - Diverse with ages, races, body types - Friendly - Constantly asking for assistance
Unlike Macy’s and Sephora, we weren’t greeted at the time of observation.
Each brands had own representative with different uniforms.
Customers
- Mostly 21-45 - Some mothers with children
Mostly around 18 to 25, some significantly older women.
Mostly Macy’s shoppers
Disadvantage Lack of promotional deals
Lack of store branding
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(Source: Store Field Observation, 2013)
Participate observation was conducted in Destiny USA.
Findings: Sephora and Ulta both appeal to the same target group that Mary Kay is trying to reach. Sephora brings a more aspiring attitude for this target with the layout of the store and more expensive beauty products. Ulta’s presentation is more attainable for customers with more affordable cosmetics and an more inviting layout. Although, Ulta’s store appearance is not as flashy as Sephora, this could be a welcome change for those who may feel that Sephora is out of their league price wise. Sephora has the Beauty Studio where customers can get their makeup done. Ulta has a salon, and Macy has makeup experts for each brand to enhance the customer shopping experience (C4, 2013).
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Mary Kay Perceptual Map
(Source: (Focus Group, 2013)
Many survey respondents felt that Mary Kay is an inaccessible and outdated brand. Among other leading brand, M.A.C and Clinique tends to have the most positive perception with young Millennials. Maybelline is the trendiest brand among other drugstore brands such as CoverGirl and Revlon. (Focusgroups, 2013)
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Mary Kay Overview Mary Kay depends on word-of-mouth promotions. The company’s the most effective advertising tool is Mary Kay’s own story, which has been widely publicized. The beauty consultants are independent businesswomen who sell through in-house demonstrations. Their earnings consist of the markup they make on the products they sell, plus a percentage of the revenue produced by the people they recruit. In 1978, the company increased the recruitment commission, from a maximum of 4% of sales to a maximum of 8%, depending on the number of recruits. The company also nearly doubled the earnings of its sales directors, who supervise at least 24 beauty consultants and do some selling on their own (Business wire, 2011). China, responsible for about a third of the total revenue, is set to overtake Mary Kay’s U.S. home market as its biggest revenue earner. The company’s business philosophy combines rewards, recognition and faith, anchored around four core values: the “go-give” spirit, the Golden Rule (“Do unto others as you would have them do unto you”), making oneself feel important and balancing one’s priorities (“Mary Kay china,” 2013).
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MK’s Performance on Social Media Mary Kay & Social Media Platform
Likes/
Features
Followers 1.4 million likes
Videos and photos from Fall into Your Beauty College Tour Photos of products Post of product mentions in magazines
44K followers
Posts about hot and trending makeup from Mary Kay
26K followers
Features the tagline “Mary Kay inspires, enriches and empowers women to do great things“ Page contains photos of products, customers and fans of Mary Kay and photos of celebrities
31K followers
Consist of several themed boards including: Inspirational Quotes Tips & Trends Mary Kay at Play Hollywood Inspiration Wedding Day Inspirations
35K subscribers
Over 350 videos uploaded. Featured video sections includes: How-to Videos from Global Makeup artist teams About Mary Kay Mary Kay Products Mary Kay at Play line Acne
Mary Kay promotes their connection with multiple social media channels on their official website. These include Facebook, Twitter, Pinterest, YouTube, Instagram, and MK’s very own blog:
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IBC’s Point Of View Based on our interviews with two Mary Kay employees (Sales Director and IBC Consultant) we learned the following:
Makeup Usage: - Makeup is for self-expression. - Most woman are willing to try products, but the most advanced age group of 70 + sometimes pass on sampling. - Not very often, but occasionally a woman will have the misconception of the “it’s too late” mentality. It’s never too late.
Mary Kay Products: - Skin care lines produce the highest sales, while fragrance and shower gels produce the lowest. - Woman end up loving colors & shades they never would have thought they would by looking at a product in a store or online. - Once they fall in love with a product it is easy for them to place an order online or call me for a reorder, and become a loyal customer! - It’s fun to get together and sample skin care products & colors they may not have otherwise had access to in a store or online. - Acne treatment products are the most popular products your age group is seeking.
Mary Kay Experience: - The Mary Kay reps love the packaging and, when asked, wouldn’t change anything. - They actually believe top of the line packaging and labeling is proof that Mary Kay is a top of the line cosmetic company. - The amazing & creative marketing and advertising team are producing quality packaging & displays that catch and captivate the consumer. - Mary Kay funds charities for women who battle with cancer and woman and young girls who suffer from unhealthy relationships and domestic violence. - Mary Kay has e-catalogs with different looks and virtual makeover links to “try before you buy”, even online. - Mary Kay has a customer delivery program that allows you to have your product delivered right to your door with free shipping!
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(Source: Personal interviews, 9/30/13 & 10/04/13)
- The Clear Proof line is delivering these results in as little as seven days!
- The training is none other than I have ever experienced in any job I have had. - There are countless ways to train: Support and ideas of fellow consultants, attending weekly success meetings, conducting parties (on the job training), an amazing website created solely for consultants that teaches you how to operate - Holding events and skin care classes. - Marketing and advertising created solely for consultants. - Consultants are constantly learning and training as they grow their business.
Girls & Makeup: - Common problems girls have with makeup is in the application; how much or little to use, matching shades, choosing the right color to compliment skin tone, not using the proper tools, not being able to afford quality make up. - As for confidence, girls tend to play it safe rather than explore colors. - Girls love to try the products! - This age group does not have the funds to order these products so they are typically customers through their mothers who purchase the products. - They want to prevent & control breakouts and even out their skin tone and complexion.
Attitudes towards Mary Kay “Pink”
“Boring”
“Expensive”
“That’s what my mother/grandma use”
“House Parties”
“Nothing”
These were some of the first thoughts that came to mind about Mary Kay based on our Google survey of 40 Millennial women ages 18-30. 40% of those were surveyed have attended a Mary Kay party/event. The respondents first attended a Mary Kay party between the ages of 8-23 with their mom, at college or for special occasions such as Prom, and 5% of the respondents hosted a Mary Kay party. For those who have attended a Mary Kay Event/Party, the responses were even for those who purchased products and those who didn’t (Google Survey, 2013). 21
(Source: Personal interviews, 9/30/13 & 10/04/13)
your business, CD’s, videos, tutorials.
Reasons for those who did purchased products from Mary Kay Party: - Loved their Eye brow liner
- Feel obligated to buy something
- Found the foundation to be terrific
- Have a great time
- Loves to try them and see what look good
Reasons for those who didn’t purchase products from a Mary Kay Party: - No need of the product
- Unnecessary to their lifestyle
- Rarely wear makeup
- No real interest
- Overpriced When using word association for Mary Kay in our focus groups, most frequent words used were “direct sale”, “older female”, “diverse”, “makeup party”, “IBC” and “not expensive”. When talking about online shopping, “timely” is the primary issue. When talking about the ideal product, natural and simple looks are most important. (Focus Groups, 2013). Most of the target group do not prefer going to a Mary Kay party. However, they stated that if their friends invited them, then they might attend the party. They were more interested in attending higher-end brands’ parties, such as Channel (Focus Groups, 2013). There are some problems about Mary Kay’s previous At Play commercials. In each of the focus groups, we showed the current commercials for Mary Kay At Play cosmetic line and Mary Kay’s 50 th Anniversary. Each Mary Kay At Play video gave off similar feelings. They featured very young girls wearing outrageous, colorful, and playful clothes. Their makeup matched their outfits; bold and colorful. They were loud and descriptive, telling the girls how to wear the makeup and what colors paired well together. Many reactions we received from focus groups felt very turned off by the commercials, pointing out how the makeup looked like “starter” makeup for girls possibly in 5th or 6th grade. The commercials seemed immature and the style was unrealistic. Regarding Mary Kay’s 50th anniversary commercial, they responded it was just okay, and the information was kind of confusing (Focus Groups, 2013). 22
(Source: “Mary Kay Rocks…”, 2013)
Case #1: Project Runway- All-Stars Season 3
On October 24, 2013, Mary Kay announced in a press release that they are the official beauty sponsor of the Emmy-Award© winning Reality Show “Project Runway All Stars: Season 3”. “Project Runway All Stars is the perfect platform to showcase our legendary beauty products and introduce our newest line of born-to-be-fun color cosmetics, Mary Kay At Play™, which focuses on Gen Y and the next generation of Mary Kay brand lovers,” said Sara Friedman, Vice President of U.S. Marketing for Mary Kay Inc. Friedman goes on to say “We know our independent sales force members will also love tuning in each week to watch the show as celebrity makeup artists apply Mary Kay® products that their customers at home can replicate for a runway inspired look.” (“Mary Kay Rocks…”, 2013) “Project Runaway” currently airs on Lifetime, a cable network geared towards female-focused entertainment. In 2012, as a result of its aggressive programming strategy that doubled the hours of original programming, Lifetime posted its strongest year-on-year growth among the key demographics in 10+ years, while also reaching its youngest median age in 16 years. Season 12 of “Project Runway” saw double-digit growth among key demographics versus last season with a jump of +9% of Total Viewers, +27% with Women 18-49, +18% in Adults 18-49 (Gorman, 2013). 23
Mary Kay in collaboration with Cosmopolitan and Seventeen magazines toured ten different college campuses in the United States. University students received free makeovers
(Source: Marykay.com, 2013)
Case #2: Mary Kay Fall Into Your Beauty 2013 College Tour
from professional makeup artists, and got free Mary Kay At Play samples. Many girls took Instagram photos of their makeover to share with their friends. Besides satisfying the needs of Millennials in wanting free gifts, the tour also tapped into Millennials’ attachment with social causes. In the end, students were asked to sign their name in support of loveisrespct.org, an organization geared towards young women in providing their tips on how to maintain a healthy
(Source: Marykay.com, 2013)
relationship. (Marykay.com, 2013)
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Facts on Potential Consumers Hispanics are the youngest and fastest growing demographic in the United States. Over the next 10-years, Latinas 18-49 will grow by another 3.2 million while non-Hispanic women in that age group will decline by a million (Filiaci, 2011). According to Simmons database, 21% of women ages 18 to 24 are Hispanic (Simmons OneView, 2010). Currently, Latinas represent one of every six women 18-49 in the U.S. By 2020, they will represent one of every five women (Filiaci, 2011). 29% of all Hispanics are Millennials (“The Cultural Connection”, 2012). Today, the Latino market has the utmost purchasing power of any other racial groups in the United States. In 2013, the market captured $1.2 trillion (Waldman, 2012). The projected growth of buying power from Latino consumers will be at $1.5 trillion by 2015. The majority of Latino households are “economically indifferent” and “fiscally fit” with index numbers of 124 and 118 respectively. Most Latino household income levels falls into $25,000 to $29,999. Target location would be West, especially the Great Los Angeles area, because the index numbers is 291. 41.7% of the population is Latino/Hispanic (Simmons OneView, 2010). According to Univison and Ad Age, insight research on Millennial and non-Millennial Latina culture, their society is associated with self-identity. Univision research developed a quantitative metric that identified the relative importance of cultural influences based on three specific dimensions: family, heritage and community. It helps explain what influences Latina Behavior, also known as the Cultural Connection Index (CCI) (Bulik, 2012).
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(Source: Bulik, 2012)
Family: 86% of the high CCI Millennial indicated that their parents have
(Source: Bulik, 2012)
always inspired and guided them.
Heritage: 94% of high CCI Millennials have high regards and respect for their elders. 97% of them also agreed of the importance of passing down customs to future generations.
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(Source: Bulik, 2012)
Community: 78% of the Millennials agreed that most of their friends are Latina and 74% of them can understand Spanish. The research team found that Millennial Latina might use Spanish as a kind of glue to cement their social relationships (Bulk, 2012).
Latinos and New Media Hispanic shoppers are more likely to use Internet and mobile features to help them browse the beauty category. According to the Pew Report, 80% of Latina adults use social media in the United States (“Latinos Top Everyone‌â€?, 2013). Moreover, 42% of Latina respondents stated that they prefer to use mobile apps with product recommendations features (Mintel, 2012). Hispanics engage in 53% more word-of-mouth than the total public, 110 brand conversations per week vs. 72 for the total public. Latina wordof-mouth is highly actionable. They are more like to follow a buy/try recommendation, be passed along or lead to purchase (Keller, 2013). 44% of U.S. Latina social media users in October 2012 were between the ages 27
of 18-29. Latinas are recommending products or services based on their experience as consumers. They follow fashion and beauty blogs, and seek recommendations from authors who they trust or are similar to them (Boden, 2013).
Advertising to Latinos According to Nielsen, Latino consumers are the most responsive to advertising. However, many brands are not making enough advertising to make their apps accessible to Spanish speakers (“Latinos Top Everyone…”, 2013). Latina consumers love to hear from marketers. Once they are spoken to, they come out in huge numbers to support. Latinas are twice more likely to consider ads for beauty products as educational (Filiaci, 2011). Latina consumers want to see ads that look like them. More than 100 Macy’s locations, in-store visuals for Lancôme have changed to show faces and skin tones that resemble Latina consumers. Those test stores performed much better than Macy’s overall sales trend (Filiaci, 2011). Latina consumers want to see commercials that are in their native language. 51% of Latinas agree that a Spanish-speaking TV commercial would entice them to buy a new beauty product (Filicai, 2011). Suave experienced success with a social media campaign that allowed fans to dress and style telenovela star Blanca Soto for an upcoming award ceremony. Suave also created a series of Webisodes that featured step-by-step tutorials on how to achieve the same look as Soto. In addition to television, online, and print advertising throughout the campaign, Suave also included product packaging and in-store promotions to drive votes. Suave experienced a 477% increase in Facebook likes and received more than 36,000 request for a coupon during the first 24 hours of the promotion (Filiaci, 2011). 28
Latinos and Cosmetics Many leading fashion magazines are taking actions to reach Latina consumers. Glamour magazine recently introduced a pocket magazine called ‘’Glam Belleza Latina” to attracts its 1.6 million Latina market. According to Glamour’s Marketing Director, Latina consumers’ spending power is increasing. Over $200 billion is spent by Glamour Magazine’s Latina readership on fashion and beauty categories (Christine, personal interview, 2013). In terms of digging into Latina attitudes and beliefs towards cosmetic, Simmons database has provided solid evidences. It helps in knowing the competition in different cosmetic categories. According to Simmons research of Millennial women ages 18-24 , 5.7% use Mary Kay eye shadow, 4.1% use Mary Kay mascara, 4.4% use Mary Kay foundation. Overall, 9.8% are customer of Mary Kay (Simmons OneView, 2010). Looking through Latina consumers’ performance on specific cosmetic categories. In terms of eyeliner brands, M.A.C is the leading. 32.3% of M.A.C eyeliner users are Latina, with Index numbers as high as 225. Mary Kay is ranked number five with 18.8% and an Index of 131
(Source: Simmons OneView, 2010)
(Simmons OneView, 2010).
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Similar situation occurs in the eye shadow category. M.A.C is the leading brand among Latina customers. Mary Kay has intense competition with L’Oreal and Revlon. 18.3% of Mary Kay eye shadow users are Latina with an index number of 128 (Simmons OneView, 2010).
(Source: Simmons OneView, 2010)
In the mascara category, M.A.C is still in the lead. Mary Kay is close to
M.A.C with an Index number of 185. 26.6% of Mary Kay mascara users are Latina. M.A.C’s index number is 25 points higher than Mary Kay’s. Meanwhile, its percentage of Latina consumer is 3% higher than Mary Kay’s (Simmons OneView, 2010). Mary Kay has a similar performance in the Hispanic market for lipstick and foundation. In terms of foundation brands, M.A.C is leading with an Index of 166; meanwhile Mary Kay’s index is 120. It should be noted that Maybelline is very competitive with Mary Kay, with four more index points than Mary Kay’s. Mary Kay’s lipstick has relative high potential for Latina consumers, which the index number 139 and 20% of its users are Latina. However, when we look at M.A.C’s performance, there is a gap between M.A.C and Mary Kay. M.A.C’s index number is as high as 206 with 29.5% being Latina consumers (Simmons OneView, 2010).
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(Source: Marykay.com)
Mary Kay Products have been featured on several Latina magazines including Cosmopolitan en Espanol, Agenda para la Quinceanera, TV y Novelas and Latina Magazine (Marykay.com, 2013). Mary Kay has enormous potential in the Latina market. Additionally, influence of the Latina culture has expanded rapidly as expected. The purchasing power and population of Millennial Latinas will grow extremely fast. Mary Kay cannot miss the opportunity to target Latina female Millennial.
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32 Mary Kay Director Mary Kay IBC Sephora Sales Director Sephora Sales Rep
Personal Interview E-mail Interview Personal Interview Email Interview
Ida Branch Laurie DePalma Emy Amy Defrancesco
Sample size 7 10 4 1 1 1
Personal Interview
Beauty Editor at Parents magazine Tracy Perez Marketing Manager at Glamour Christine Personal Interview magazine Tebcherany Online Survey: Google Women 18-25 40 ADV 612 Class Discussion Participant Observation Sephora / Ulta / Macy's 3
Participants Undergraduate student(18-25) Undergraduate student(18-25) Undergraduate student(18-25) Latina Student(23) Graduate student(18-25) Undergraduate student(18-25)
Research Method Focus Group 1 Focus Group 2 Focus Group 3 Personal Interview Personal Interview Personal Interview
12:30 pm - 1:50 pm 2:00 pm - 3:00 pm 9:30am - 11:00 pm 2:00 pm - 5:30 pm
Fri, Oct 25 9/14 - 10/31 Th, Oct 10 Mon, Oct 7
11:00 am - 12:00 pm 10:00 am - 11:00 am 1:30 pm - 2:20 pm 10:00 pm - 11:00 am
Duration 6:30 pm - 7:30 pm 12:30 pm - 1:30 pm 12:30 pm - 1:30 pm 10:00 am - 11:00 am 12:30 pm - 1:30 pm 4:00 pm - 5:00 pm
Th, Oct 17
Mon, Sep 30 Wed, Sep 25 Fri, Oct 11 Fri, Oct 11
Date Th, Oct 10 Fri, Oct 11 Fri, Oct 18 Mon, Oct 28 Fri, Oct 25 Wed, Oct 16
Methodology
Creative Brief
1) What are we advertising? To generate a connection between Mary Kay and Latina Millennials.
2) Whom are we talking to? Fernanda, 21-year-old, is pursuing B.B.A. in Accounting at San Diego State University. She is Vice President of the Chi Upsilon Sigma, her college’s Latina sorority. Fernanda and her sorority sisters are enthusiastic about makeup, but are struggling to find the perfect brand to match their skin tones. She believes it will be vitally important to express herself with makeup.
3) What do they currently think? “Well, Mary Kay is boring, expensive and old. I’m not sure about direct sale and makeup parties.”
4) What would we like them to think? “Oh my god! I don’t have to look for multiple cosmetic brands”
5) What is the single most persuasive idea we can convey? Mary Kay is the only brand that empowers your unique identity.
6) Why should they believe it? Mary Kay has interpersonal relationships with multicultural communities. Mary Kay helps Latina Millennials express their uniqueness.
7) Are There Any Creative Guidelines? Add Hispanic cultural elements that our target can relate to.
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