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Mary Kay Case Discussion

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Week 4 – Seminar 7 - Mary Kay India: The Hair Care Product Line Opportunity- Kerin & Peterson page 163 Case Questions:
1. How would you characterise the branded and packaged Indian hair care category in 2010? This category produced US$14 billion dollars. Shampoos and conditioners accounted for 81% of hair care sales or estimated US 11.34billion (.81x$14b).
Branded and packaged shampoos and Cons capture small amount of market place.

Competitors and marketing practices 1. 40 competitors – multinational brand firms and local Indian brand firms:
10 companies captured 77.4% category sales
Market leader Hindudin Unilever
Direct sellers (Amway india, avon, mark kay) account 3.6% of sales

Differentiation based on: * Formula * Product benefits shampoo – unilever sell cosmetic, dandruff and damaged hair and conditioners for each shampoo. * Pricing: l’oreal uses prestige, Hindustana uses mass mkt pricing

Retail channels – supermkts, drug, deptment and mass merchandise stores are dominant channel for selling 96.4% sales.

2. How would you assess the “fit” of a hair care product line with Mary Kay’s offering in India? How consistent is hair care line with Mary Kay’s current offerings?
- MK sells skin caar and colour cosmetics for everyday use, sells frangrance sold through independt sales reps
- shampoo and conditioners are not everyday products in India
MK doesn’t sell a hair product. 2 tries to launch hair care in US and EU failed

- MK has 4000 beauty consultants present in 200 Indian cities + regional distribution and beauty centres
- harid care line introduction need mktg fixed cost of $713000: 650000 develop place ads, copy website design and PR + $55000 sales training

Does MK have resrouces to intro and sustain a ahair care line?
Outcourscing to an Indian shampoo/con manu will be nesscary and require:
- min order quantity of 100000 unites per

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