Mary Kay, Inc. Qualitative Research Conducted by: Balay Hartman, Hilary Hayes & Chelsea LeGrange

Case Objective Increase product awareness, positive perception and consideration for product purchase by millennials.

Focus Group Summary Moderator was Balay Hartman Research conducted Monday, October 6, 2014 at 6 p.m. in North Hall, room 340 at OSU-Tulsa Total of 6 participants Participant profile consisted of women between the ages of 18-25

Details of Participants Participant 1: 20 years of age, no children, student and works in retail. Participant 2: 21 years of age, no children, student and bank teller. Participant 3: 24 years of age, no children, student and works with children. Participant 4: 24 years of age, no children, works in the restaurant business. Participant 5: 23 years of age, no children, works in textile industry. Participant 6: 25 years of age, no children, works in telecommunications.

Questions Asked How do millennials purchase makeup? Online, in-store, direct selling, etc. What drives the makeup buying decision? What does our target market look for in a makeup brand? What is the general perception of Mary Kay? How could Mary Kay change their consumer perception? Is Mary Kay an up-to-date makeup line? How often do millennials wear makeup? How do advertisements play a role in the makeup buying decision? How much does convenience matter to the consumer? What makes other major makeup brands successful?

Findings – Frequency Most participants wear makeup every day to a couple times a week. They wear their makeup heavier when going out or for a special event Brand preference is with Urban Decay and M.A.C.

Findings – Quality Plays the largest role in the buying decision Price is second, although participants are willing to spend more money for higher quality products Reviews influence purchase

Findings – Convenience 75% of participants consider convenience when making a makeup purchase Prefer brick-and-mortar store to test products rather than seeking out a sales representative for purchase

Findings – Friends/Peers Friends influence approx. 80% of the participants buying decision.

Findings – Deals/Discounts Deals, discounts and special offers play a minor role in the buying decision. May influence participants to “check out product” but may not purchase.

Findings – Packaging Bright, shiny and flashy packaging is attention-grabbing and may influence purchasing decision.

Findings – Direct Selling Participants all agreed they would like to test the products on their own rather than a beauty consultant helping with the application. They believe direct selling is inconvenient, annoying and pushy. About 50% of participants had participated in a Mary Kay party and felt the women selling the products were salespeople rather than beauty experts. “Parties are more of a social event.”

Findings – Demos Participants prefer to use YouTube for makeup demos rather than by person. Advertisements and celebrity endorsements are helpful in the buying decision, but only play a minor role.

Findings – Quality of Mary Kay Product was said to be too opaque, did not cover well and the price did not match the quality. Based on quality it was most comparable to a Wal-Mart brand such as Cover Girl or Revlon, but the price was more comparable to M.A.C. or Urban Decay. Outdated and trends are “old-school.” The lack of social media to reach millennials prevents Mary Kay from having a presence with this target market.

How to Succeed? All participants agreed Mary Kay will need to play into trends more, produce more advertising and change their direct selling strategy. All participants agreed that Mary Kay should focus more on one line of products versus multiple offerings.

Conclusion Participants agreed if Mary Kay produced a product line just for millennials, they would be more willing to try Mary Kay products again. Overall consumer perception is poor but could be improved with better marketing and selling strategies.

Limitations Our research is limited by the small sample of our target market. Participants were not chosen at random. Received quality information, but our participants views may not agree with the general public. Many participants had not tried the products.

Further Research Required Further research should be conducted on a larger scale with a broader target market to compare findings. Surveys would help reach more people to compare findings. Further attention to social media, advertisements in different forms, as well as product and packaging changes should be included in future research.

Thank you