Mary Kay Inc

Topics: Mary Kay, Multi-level marketing, Marketing Pages: 40 (11101 words) Published: July 20, 2006
Mary Kay Inc

December 2005

List of Contents and Tables

1.1Key Facts1
Summary 1Mary Kay Inc: Key Facts1
2.1Financial Performance1
Table 1Mary Kay Inc.: Financial Summary 2000-20041
2.2Geographic Coverage2
Table 2Mary Kay Inc.: Sales by Region 2000-20042
2.3Business Focus3
Table 3Mary Kay Inc.: Sales by Division 2000-20043
Chart 1Mary Kay Inc.: % Sales by Division 20043
3.1Operational Strategies3
3.2Market Development4
Table 4Mary Kay Inc.: World Sales Performance of Company's Major Markets5 4.COSMETICS AND TOILETRIES BUSINESS OF MARY KAY INC5
4.1Cosmetics and Toiletries Business Development5
4.2Cosmetics and Toiletries Net Sales & Profits6
Table 5Mary Kay Inc: Cosmetics and Toiletries Sales 2001-20047 5.MARY KAY INC PERFORMANCE IN COSMETICS AND TOILETRIES7
5.1Competitive Context7
5.2Company World Market Shares7
Table 6Mary Kay Inc: World Cosmetics and Toiletries Shares & Rankings by Sector 2001-20048 5.3Company Shares by Region and Sector8
Table 7Mary Kay Inc: Regional Shares of Cosmetics and Toiletries by Sector 20049 5.4Marketing Strategies10
5.5Distribution Strategies10
6.2New Product Development12
6.3Core Brands12
Table 8Mary Kay Inc: Mary Kay Brand Shares in Cosmetics and Toiletries 2001-200413 Table 9Mary Kay Inc: Mary Kay Regional Shares by Sector 200414 7.MARY KAY INC COSMETICS AND TOILETRIES STRATEGIC EVALUATION15 7.1Mary Kay Inc Sector Potential15

Table 10Mary Kay Inc: World Sales Performance of Key Sectors of Involvement 200416 7.2SWOT Analysis17
7.3Future Prospects for Cosmetics and Toiletries Business18 8.APPENDICES19
8.1Appendix 1 – Mary Kay Inc Brand Portfolio20
Summary 2Mary Kay Inc: Cosmetics and Toiletries Brands 200420 8.2Appendix 2 – Subsidiaries and Affiliates of Mary Kay Inc20 Summary 3Mary Kay Inc: Subsidiaries 200420
8.3Appendix 3 – Websites of Mary Kay Inc21
Summary 4Mary Kay Inc: Websites21
8.4Appendix 4 – History and Corporate Development21
Summary 5Mary Kay Inc: Historical Development21



1.1Key Facts

Texas-based Mary Kay Inc is one of the leading cosmetics and toiletries companies in the world, ranked in the top 20 in 2004. The company sells more than 200 products in eight product categories: facial skin care, cosmetics, fragrances, nutritional supplements, sun protection, nail care, body care and men's skin care.

As a direct selling operator, key rivals include Avon and Alticor, with multinationals L'Oréal, Procter & Gamble and Estée Lauder also providing fierce competition. Approximately 1.3 million direct sales consultants demonstrate Mary Kay products worldwide. Around 70% of sales are generated in the US, with the remaining sales derived from 34 other countries.

Continuing domestic market difficulties brought a period of robust growth to a halt in 2004. Mary Kay has the cachet and experience to weather the storm, although, recent activity, or inactivity, has raised doubts over its ability to maintain its position among the world's leading cosmetics and toiletries players.

Summary 1Mary Kay Inc: Key Facts
Company name & status:Mary Kay Inc
Sector involvement (2004):Bath and shower products, Colour cosmetics, Fragrances, Skin care, Sun care Region involvement (2004):Eastern Europe, North America, Latin America, Asia Pacific World ranking (2004):18

World % share (2004):0.99
from company reports.


2.1Financial Performance

As a privately held company, Mary Kay releases a very limited amount of financial data. Between 2001 and 2003 net sales growth was robust, at double-digit level. However, during this period, the growth rate declined steadily, reflecting the growing pressure of rising competition, increasing...
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