Company Profile – Mar Kay India

About the Company Mary Kay Inc., one of the world’s largest direct sellers of skin care and color cosmetics, today announced
the launch of a new subsidiary, Mary Kay Cosmetics Pvt. Ltd., which based in Gurgaon, near New Delhi.
With the addition of India to its international portfolio, Mary Kay Inc., headquartered in Dallas, Texas, has
operations in well over 30 markets worldwide.
Address + Phone + Fax kathrina.mcafee@mkcorp.com
+email
The website https://www.marykay.com/
The Vision he company's vision is always forward thinking
The Mission Help women achieve personal growth and financial succes
Product (s) Hair care and personal product

1. Performing Situation Analysis – INTERNAL ANAYSIS

A. DETERMINATION OF STRENGTHS AND WEKANESSES FOR MARY KAY INDIA

Factors/Items Strengths Weaknesses

Company Achievement
KPI – BSC Achieved? Financial KPI/Objectives – YES – Lack of customers, IP and L & G
Financial, Customer, Internal Process, Learning DEVELOP MARKETING OBJECTIVES KPI/Goals/Objectives
& Growth? COVERING THE OTHER THREE
PERSPECTIVES Bias to financial perspectives

KPI Achieved? Achieved the KPI Most KPIs are not achieved
Gross margin?/profit margin High(wide market penetration) 15% available market share
Cash flow? Limited cash flow/Poor
Share price? low
Customer-oriented goals – or marketing objectives
Hard goals - sales, turnover, market share? High Low – Low sales and low market share –
2%
Customer satisfaction & Customer loyalty? CSI >80%
Loyalty – 80% (Repeat purchase)
Perceived quality of products? High (Consumers’ perceived of Mary Kay
India products)
Number and content of complaints? No complaints
Internal goals
Accounts receivables? OK
Liquidity? Low
Financial resources High Lack of financial resources
Overhead costs?/ Production cost? Cost advantages (Low) Rising costs
Employee satisfaction Skill workforce Employee satisfaction – Moderate
- Work atmosphere and morale Unskilled workforce
- Staff turnover
- Used of sick leave
- Turnover per employee
- Skill workforce

Innovation goals
Turnover of new products? >5 years – new product
less focus on R & D
Marketing Strategy
Product-value strategy? Match – High quality product, high price, high Mismatch..
value…
Product-segmentation basis? Highly quality, suitable with the demographic
characteristics of targeted consumers?
Product – Target market? Rural segment Urban segment
-using traditional shampoo -frequent usage
-once for a week
 Product-positioning strategy? Innovative product?
Company-positioning strategy? Consistent Inconsistent
Product features?
Branding Positive brand recognition Negative brand recognition
Price? High proce compare to competitor

Pricing strategy
Place? Wide market People low income
Distribution channel Two branch in new delhi&mumbai Long distance
Promotion? Mismatch
Low coverage
Competitive Advantage? Products price lower

Marketing - quality of marketing department

Do clearly formulated objectives and strategies Objectives – more to sales
exist? No clear marketing strategies
Do strategies actually related to environmental Not really related to the environments
factors?
What does firm know about development in Not clear
macro environment?
Others

NOTE: For weaknesses identified, you need to determine whether or not they could be turned into strengths
2. Performing Situation Analysis – EXTERNAL ANAYSIS: CONSUMER ANALYSIS
A. CONSUMER ANALYSIS - The objective of consumer analysis is to find group of individual of similar
needs and liking (Target Market) and their characteristics/preferences so that the 4Ps could be
designed and targeted to them.
B. Understanding customers of Mary Kay India – The Six W’s

Understanding customers - The Six Mary Care India – Hair Care Products Line
W’s

Who are our current and potential  Current – Urban, Sub-urban and rural women Prospects – age between 25-35 young
customers? consumers generation
Aged – 25 - 54

What do our customers do with our
products (use situation)
Where do our customers purchase
our products?
Why and how do our customers
choose our products? E.g.
perception of brands and products
and needs?
Why do potential customers not
purchase our products?
 Hair care treatment .alternatives to traditional shampoo
 Agents, Distributors
 Direct selling
 Hair treatment
 Using traditional ingredient
 Reasonable prices
 Use of substitute products
 Limited promotion
 Lack of brand awareness

C. Consumers’ characteristics/Preferences & Their Implication to the 4Ps of Mary Kay India

Factors The Target Markets – Implication to the 4Ps

Urban & Sub-Urban Products Price Promotion Place
Consumers – Consumers’
characteristics/Preferences
Culture Good fit between Mary Package size, type of Expensive in rural Billboards,sponso Hard to
Care culture and Indian packaging – Sachets but cheaper in rship penetrate in
culture (continuing (small, closed plastics urban rural area
modernization, stylish, packets), bottles (80 –
good looking) 400 ml or 100ml) –
Bottles – more to urban
areas.
Demographics The growing of Indian Product variants Mass-tige pricing Young generation Good to high
(Gender, Age, upper and consuming (the price aware of the new income but not
Income, classes (500 million Products – Shampoo + charged is above MKI product but to low income
occupation, etc) individuals) Oil, a 2-in-1 shampoo, mass-market not senior
normal/dry hair and oily retail prices (25 – generation
Youthful population hair, shampoo variants 30% higher)
(median age of 26 years) containing local/regional
fragrances and Taking into
Growing number of working ingredients (to consideration of
women, middle class differentiate company 30-40% discount
women offering) to sales
representative,
Longer hair of Indian variants of hair
women care products,
package size
Low income consumers (e.g. sachets - 6-
from sub-urban 8 ml with 2 – 5
rupees; bottle –
80 – 400ml
between 27-369
Geographical Urban and Sub-Urban – High potential reasonable good strategic
areas New Delhi, Mumbai, etc
Social – culture High demand due to Affordable price -good strategic
(Generation, The needs for grooming career woman
Social changes in among Indian woman.
family
households, Use of traditional hair oils
Marrying at later
stage; increasing Increasing environmental
role of women in awareness
labor forces;
increase role of Increasing attention to
men in health
household;
delaying in
childbearing;
changes in
upbringing of
children

Technology – New generation follow the applicable

technology savvy, technology
social; media,
Internet, Apps.
Changes in
media use (TV, IT
gadgets etc)
Economics - –
purchasing power
Consumer
decision making
drivers
- Price vs.
Quality
- Basic
product vs
innovative
products
- Buyers vs
users

Values and The at-home use of

Lifestyles unbranded and
(innovators, unpackaged herbs and oils
survivals, (e.g. Henna, Shikakai) and
thinkers, coconut oil
believers, etc)
Loyalty of consumers to
Indian traditional brands

Infrequent use of shampoo

(once every 7-14 days)

Use of bath soap as

substitute to shampoo

Factors The Target Markets – Rural Implication to the 4Ps

 Area Consumer Products Price Promotion Place
characteristics/Preferences
Culture -Still using traditional Package size, type of Low price effective Brand
shampoo packaging – Sachets awareness
(small, closed plastics
packets), bottles (80 –
400 ml or 100ml) –
Bottles – more to urban
areas.
Demographics Youthful population (median Product variants Taking into -Mouth to mouth With good
(Gender, Age, age of 26 years) consideration of due to rural area logistic
Income, Unsophisticated consumers Products – Shampoo + 30-40% discount -poster
occupation, etc) Oil, a 2-in-1 shampoo, to sales
Low income consumers from normal/dry hair and oily representative,
rural and sub-urban hair, shampoo variants variants of hair
containing care products,
local/regional package size
fragrances and (e.g. sachets - 6-
ingredients (to 8 ml with 2 – 5
differentiate company rupees; bottle –
offering) 80 – 400ml
between 27-369
rupees),
Geographical Chennai,goa
areas
Social – culture Use of traditional hair oils
(Generation)
The at-home use of
unbranded and unpackaged
herbs and oils (e.g. Henna,
Shikakai) and coconut oil
Technology –
technology savvy,
Economics - –
purchasing power
Consumer
decision making
drivers
- Price vs.
Quality
- Basic
product vs
innovative
products
- Buyers vs
users

Values and Loyalty of consumers to Create a new design Less than billboard in the area
Lifestyles Indian traditional brands shampoo competitor which high user
(innovators,
survivals, Use of bath soap as
thinkers, substitute to shampoo
believers, etc)

D. Determination of Opportunities and Threats - MORE

Factors/Items Opportunities Threats
culture Good opportunities that can be -People in rural area only
spotted. shampoo once a week
-always using traditional shampoo
instead of modern shampoo
industry change in technology and market -Activities of competitors
strategies
economy People in urban needs new body -people in rural area have low
care product and use everyday income and cannot afford MKI
product
Distribution channel Many agent in India The supplier is in new delhi and
Mumbai only
3. Performing Situation Analysis – EXTERNAL ANAYSIS: INDUSTRY ANALYSIS
Objective: An analysis of the intensity of the competition in a market to determine market attractiveness for
Mary Kay India Hair Care Product lines
A: Structure of the industry and the five factors of Michael Porter’s competitive forces
Structure of the industry analysis that influences market attractiveness
Macro environment factors (e.g. Demographic, e.g. the number
demographic, economic, and size of households, the
technological, social cultural , composition of the population,
political/government, etc.) the size of the population in an
area)
Economic, The purchasing
power of consumers
Booming/Recession
Sensitivity to economics and
seasonal trends
Social cultural – increasing
attention to health, increasing
environment awareness and
attention to nature
Technological factors
Aggregated Market factors market size, -
Opportunities Threats
The growing of Indian upper and
consuming classes (500 million
individuals)
Youthful population (median age
of 26 years),
Spending power of upper class Spending power of youth
consumers? population?
Low income consumers
form rural and sub-urban
Recession – oil price
decreasing
Not really/limited Highly sensitive
Good fit between Mary Care
culture and Indian culture
(continuing modernization,
stylish, good looking)
Ingredient of products –
Traditional mix…
The needs for grooming among
Indian woman
A trend toward up-grades
unpackaged herbs and hair oils
to package goods for washing
and conditioning hair
The switch from bath soap to
shampoo for hair washing
The strong support from the
government/ NGOs (e.g. policy,
awareness programs) related to
environment protection
The growing awareness and
demand for eco-friendly products
-Existing technology that can
facilitate the company
-Research areas of government
and education institutes in which
the company can make any
efforts
HIGH
( market size, market and sub-
market growth and phase in
product life cycle)
Industry structure factors (e.g.
profitability, threat of new
entrants, threat of substitute
products)
Industry structure - The external factors and internal factors - The five factors of Michael Porter’s competitive forces
(the external factors) – Level of
competition between companies
or brands.
Threat of potential entrants
Bargaining power of suppliers
bargaining power of customers
Threat of substitute products
The internal factors –
The supply structure
market and sub-market growth –
Phases in product life cycle
Profitability – Profit margin
Threat of new entrants
Threat of substitute products
Level of competition (Company)
Level of competition (Brands)
MARKET SEGMENT
DISTRIBUTION CHANNEL
PROMOTION
Threat of substitute products
Zero level channel
(upper class consumers) – Huge
Market growth (50%)
market and sub-market growth –
urban (personal grooming and
use of branded and packaged
shampoo/conditioners), rural and
semi-urban areas
Introduction, growth
High
Difficult to enter hair care
products market segment
Low/moderate
Low/moderate
Difficult to enter hair care
products market segment
Not really depend on a supplier
Low
OFFERING PRODUCT USING
ELEMENT OF TRADITIONAL
Efficient movement of products
from company-suppliers-retailers
Decline, maturity,
saturated
Low
Easy to establish new
company/to offer new hair
care products
Use of traditional hair oils
The at-home use of
unbranded and
unpackaged herbs and
oils (e.g. Henna,
Shikakai) and coconut oil
Use of bath soap as
substitute to shampoo
Bath soap (also the lotus
& Bamboo Indulgent Bath
Bar), traditional oils,
coconut oils
Intense competition
(Hindustan Unilever,
Colgate-Palmolive; India,
Dabur India ltd, L’Oreal
India ltd, Procter and
Gamble, India, etc.),
High
Easy to establish new
company/to offer new hair
care products
High/Dependable
High
Use of traditional hair oils
The at-home use of
unbranded and
unpackaged herbs and
oils (e.g. Henna,
Shikakai) and coconut oil
Use of bath soap as
substitute to shampoo
cleaner
Inefficient distribution of
Mary Kay products to
distributors and final
consumers
NOTE: For threats identified, you need to determine whether or not they could be turned into opportunities

B: Determining the market attractiveness for Mary Kay India – Hair Care Products

The calculation of the attractiveness score of the market for Hair Care Products –
Shampoo (1 = Unattractive; 5 = Very attractive)

Factor Weight -1 Assessment & Justification Score Value

AGGREGATE MARKET FACTORS
Market size/ sub-market size or ATTRACTIVE 4
growth
Market growth VERY ATTRACTIVE 5
Phases in product life cycle VERY ATTRACTIVE 5
Sensitivity to economic and ATTRACTIVE 4
seasonal trends
INDUSTRY STRUCTURE FACTORS
Profit margin VERY ATTRACTIVE 5
Threat of new entrants VERY ATTRACTIVE 5
Negotiation power of customers VERY ATTRACTIVE 5
Negotiation power of suppliers VERY ATTRACTIVE 5
Intensity of competition VERY ATTRACTIVE 5
Threat of substitute products VERY ATTRACTIVE 5
TOTAL 1.0 48/50
4. Performing Situation Analysis – EXTERNAL ANAYSIS: COMPETITOR ANALYSIS

Competitor Analysis (An analysis of the behaviour of individual competitors – strengths and
weaknesses of major competitors and their future behaviour)

Objective: To determine the company’s competitive advantage relative to its competitors

A. Scores on Key Success Factors of competitors and Mary Kay India (1 = Very Weak; 5 = Very strong)
OR HIGH (H), MEDIUM (M) AND LOW (L)

Factors Major Competitors

Hindustan Colgate- Dabur India Procter and Marico Mary Kay How MKI
Unilever Palmolive, India ltd Gamble, India Ltd India - should
Shampoo respond
Buying Criteria in Priority
Benefits - shine, health, & different from
strength, anti-dandruff and the others
damage repair, fragrances
SCORE/H, M, L H L H L M L
Medical Ingredient
SCORE/H, M, L L L H H L L
Local ingredients Shampoo
variants
containing
local/regional
fragrances
and
ingredients
SCORE/H, M, L L L H H L H
2-in-1 shampoo, normal/dry
hair and oily hair
SCORE/H, M, L L L L L L M
Consultation (Suitability of Styling Beauty
shampoo, how to use it, agents, consultants
advanced products, etc.) salon hair
care
SCORE/H, M, L H H L L L H
Package size, type of Sachets
packaging (small, closed
plastics
packets),
bottles (80 –
400 ml or
100ml) –
Bottles –
more to urban
areas.
SCORE/H, M, L H H L L L H
Accessible to buy
SCORE/H, M, L H H H L L L
The 4Ps
Products As Above
SCORE/H, M, L H H L L L L
Promotion
SCORE/H, M, L H H H L L H
Price
SCORE/H, M, L M H M M L M
Place
SCORE/H, M, L H H H M L L
Market share, brand position
 Market share
SCORE/H, M, L H H M M L L
Brand awareness
SCORE/H, M, L H H H M M M
Brand association
SCORE/H, M, L H H H M L L
Brand loyalty
SCORE/H, M, L H H H M M L
Customer satisfaction
SCORE/H, M, L H H H M M M
Brand image
SCORE/H, M, L M M M M H H

B: Determination of Opportunities and Threats

Characteristics Hindustan Unilever Colgate- Dabur India ltd Procter and Marico Ltd O/T – May Kay
Palmolive, India Gamble, India
O T O T O T O T O T
Brand Awareness / / / / / O
Market leader / / / / / O
Innovative company / / / / / O
Extensive / / / / / O
&integrated
distribution
Product line / / / / / O
Financial position / / / / / O
Price of / / / / / O
commodities
Buyer power / / / / / O
Expanding market / / / / / O

NOTE: For threats identified, you need to determine whether or not they could be turned into opportunities

MORE
 5. Performing Situation Analysis – EXTERNAL ANAYSIS: DISTRIBUTION CHANNEL ANALYSIS

Objective: Supplier Analysis - to gain advantages from good relationships with suppliers through an
effective channel strategy.

A. The current marketing channels of Mar Kay India.

Marketing channels The MKI marketing List of distribution channels

channel
MKI – Final consumers / e-commerce e-order, Facebook, Twitter,
Instagram
MKI – Wholesalers – Final Consumers
MKI – Wholesalers – Retailers - Final
Consumers
MKI – Distribution Centre – Final /
consumers
MKI – Distribution Centre – Distributors /
– Final consumers
MKI – Distributors – Final consumers /

B. The distribution analysis (MKI – Wholesalers)

Factors
W1 W2 W3 W4
O T O T O T O T
The importance of wholesalers –  High – Low - xxx High – xxx Favor
Sales in the product category xxxx local
 The sales of the  Favor manufact
manufacturing’s brand (MKI) MKI ures?
at xxx in relation to other sales
outlets and/or in relation to
other distributor brands.
 Any preferred manufacturer?
The role of wholesalers A A customer Carry
 a ‘customer’ (resell the competitor - it carries competit
product to final consumers) only MKI ors’
 ‘a competitor’ - It carries its brand of products
own brand hair care
 Carry competitors’ products products/
Shampoo
The position of the brand (MKI) at Eye-level Below-eye Above eye-
the retailers’ premises level level?
 The shelf position First level Second
 The number of facings level
The objectives, strategy and Highly Moderate Low
wishes of the wholesalers satisfied
 Satisfaction of the wholesalers
 Ambition (limited or fast Growing Fast Growing –
growth, growth with existing or growing – electronic
new activities, etc.) hair care/ products
cosmetic
products

The strengths and weaknesses of

the wholesalers
 High sales per customer High, many Longer Longer
(high/low), friendly staff, counters, Waiting waiting
 waiting time at the cash easy time time
register (short/long) payment
system
 Consistency between -
retailer’s target audience and Positioning
positioning strategy strategy – Positioning
- The 4Ps of the retailers quality & strategy – Cost Inconsist
local quality & leadership ent –
ingredient local – low More to
ingredient income cost
Consistent consumers/ leadershi
with MKI – Consistent survivors p,
product with MKI – targeted
lines, width, product to the
depth lines, width, survivors
depth

Limited
product
lines
The purchasing Regular
 The purchasing process (monthly), Regular Bad
 Purchasing terms efficient e- purchase, paymast
procurement credit term er
system (<3 months
payment)
Cash
term/CoD
Wholesaler’s reputation/ Image International Internation Local-
image, al? based
Indian-based company?
Xxxx
xxxxx

C. The distribution analysis (MKI – Distribution Centres)

Factors of DC
DC - Delhi DC - Mumbai DC xxx DC xxx
O T O T O T O T
The importance of DC– Sales in  High – Low - xxx High – xxx Favor
the product category xxxx local
 The sales of the  Favor manufact
manufacturing’s brand (MKI) MKI ures?
at xxx in relation to other sales
outlets and/or in relation to
other distributor brands.
 Any preferred manufacturer?
The role of DC A A customer Carry
 a ‘customer’ (resell the competitor - it carries competit
product to final consumers) only MKI ors’
 ‘a competitor’ - It carries its brand of products
own brand hair care
 Carry competitors’ products products/
Shampoo
The position of the brand (MKI) at Eye-level Below-eye Above eye-
the retailers’ premises level level?
 The shelf position First level Second
 The number of facings level
The objectives, strategy and Highly Moderate Low
wishes of the DC satisfied
 Satisfaction of the retailers
 Ambition (limited or fast Growing Fast Growing –
growth, growth with existing or growing – electronic
new activities, etc.) hair care/ products
cosmetic
products

The strengths and weaknesses of

the DC
 High sales per customer High, many Longer Longer
(high/low), friendly staff, counters, Waiting waiting
waiting time at the cash easy time time
register (short/long) payment
system
 Consistency between - DC’s
target audience and Positioning
positioning strategy strategy – Positioning
- The 4Ps of the DC quality & strategy – Cost Inconsist
local quality & leadership ent –
ingredient local – low More to
ingredient income cost
Consistent consumers/ leadershi
with MKI – Consistent survivors p,
product with MKI – targeted
lines, width, product to the
depth lines, width, survivors
depth

Limited
product
lines
The purchasing Regular
 The purchasing process (monthly), Regular Bad
 Purchasing terms efficient e- purchase, paymast
procurement credit term er
system (<3 months
payment)
Cash
term/CoD
DC reputation/ Image Favorable Bad
image reputatio
n – High
consume
rs’
Complai
nts
Xxxx
xxxxx

D. The distribution analysis (MKI – Distributors)

Criterion Distributors/Agents/ Distributors/Agents/ Beauty xxx xxx

Beauty Consultants?– Consultants?– Mumbai
Delhi?
O T O T O T O T
 The importance and role of High High Very Low
distributors/Agents/Beauty low
Consultants - Sales
The objectives, strategy and Independent, Highly
wishes of distributors/Agents/ Less supervision dependable
Beauty Consultants – on HQ
Independent, Supervision, etc.
The strengths and weaknesses Highly Unfavorable
of the distributors/Agents/ competence – image
Beauty Consultants – Product among
Competency, customers’ knowledge, customers,
complaints, personal image, professional high
etc. services complaints
The purchasing process/terms Cash Credit - >3 Credit Bad
months paymaster

NOTE: For threats identified, you need to determine whether or not they could be turned into opportunities

E. The distribution analysis (MKI – Final consumers)

Online Channels
e-order Facebook Twitter Instagram
Online sales N/A N/A N/A N/A
e-SQ (Efficiency, Fulfillment, N/A N/A N/A N/A
Availability, Contacts, Compensation,
Quality information, etc.)
e-CS
e-Loyalty (Repeat purchase, etc.) N/A N/A N/A N/A
e-WOM (positive vs negative e-WOM) N/A N/A N/A N/A
Online consumers’ viral advertising N/A N/A N/A N/A
behavior
Among group, between group

Treacy & Porter Ansoff Marketing Strategy

SWOT Wiersema
OE PL CI OCL D F MP PD MD D ML MC MF MN
C DF
F
S1-Competitive /   / /   /  
advantages – service
S2 - Customer /   / /   /  
satisfaction &
Customer loyalty- high
S3 - Financial /   /   /   /  
resources - high
S4 - Product- /     /   /   /  
segmentation basis –
high quality and
suitable with target
market
S5 - Product- /     /   /   /  
positioning strategy –
Hit company quality
standard
W1 - Profit Margin – /   /   / / /  
low
W2 - Share price – low /   /   /   /  
W3 - Turnover of new /     /   /   /  
products – Low
W4 - Distribution /   /   /   /  
channel – poor selling
(direct selling)
W5 - Promotion – high /     /   / /  
introduction cost
CO1 - Product values – /     /   /   /  
Environmental
concern
CO2 - Service quality – /   / /   /  
empathy (direct
selling distribution)
CO3 - Why – benefits /     /   /   /  
traditional ingredient
and quality of
products
CO4 - Brand image /     /   /   /  
and product
characteristics –
match
CO5 - Heterogeneity – /     /   /   /  
offer high quality with
reasonable price
CT1 - VALS – believer /     /   / /  
(easily influence by
other brands)
CT2 - Limited /   /   / /  
distribution channel
CT3 - Low brand /   /   /   /  
awareness
CT4 - Too focus - /   /   /   /  
Demographic factors
CT5 - Difficult to / /   / /  
isolate consumers
who value innovative
product/high price
with economic-
minded consumers
IO1 - Demographic- /   /   /   /  
growing population in
India
IO2 - Economic-used /     /   /   /  
branded shampoo and
conditioner
IO3 - Social cultural-Fit /   / /   /  
to the culture
IO4 - Technological /     /   /   /  
factors-advance
product
IO5 - Internal factors – /   /   /   /  
Efficient movement of
products from
company-suppliers-
retailers
IT1 -Substitute /   /   /   /  
product - Homemade
Traditional hair oil
IT2 - New entrant- /     /   / /  
Easy to offer new
product
IT3 - Level of /     /   /   /  
Competition (Brands)
- High
IT4 - Bargaining power /   /   /   /  
of Supplier - High
IT5 - Internal factors - /   /   /   /  
Inefficient distribution
of Mary Kay products
to beauty consultant
and final consumers
CO1 - Target local /   / / /  
people who herbs and
organic users
CO2 - Beauty /   /   /   /  
consultant - effective
CO3 - Package size /     /   /   /  
and type of packaging
- user friendly & suit
with target market
CO4 - Brand loyalty /   / /   /  
high- good customer
service from beauty
consultants
CO5 - Avoid making /   / /   /  
these customer
retention mistakes,
set customer
expectation early
CT1 - No medical /   /   /   /  
ingredient
CT2 - Not offer /   /   /   /  
shampoo that give
more advantage to
customers
CT3 - Price-higher /     /   / /   /  
than other competitor
CT4 - Place – use only /   /   /   /
direct selling
CT5 - Brand Image /   /   /   /  
Low- not attract more
customer
DO1 - Important of /   /   /   /  
Distribution Channel -
High Sales
DO2 - Purchasing– /   /   /   /  
Fast and growing of
distribution centre;
use cash and credit
for purchasing
payment
DO3 - target audience /     /   /   /  
positioning strategy –
focus on local
ingredient quality and
consistent
DO4 - Distribution /   /   /   /  
centre - favourable to
customer
DO5 - The objectives, /   /   / /  
strategy and wishes of
distributors -
Independent, Less
supervision
DT1 - Role - Compete /     /   /   /  
with other competitor
DT2 -Distributors - /   /   /   /  
High dependable on
HQ
DT3 - weaknesses - /   /   /   /  
High complaint
DT4 - The purchasing /   /   /   /  
process – limited
purchasing payment
DT5 - 4Ps - focus only /   /   / / /  
cost leadership
 Total 23 17 10 24 17 2 7 23 4 17 9 8 19 23 1
BSC for STARTEGIC MARKETING – THE ACTION PLAN FOR MKI (2018 - 2020)

Perspectives Strategic MEASURE Target Strategic The

Objectives Initiatives Champion
2018 2019 2020

Financial F1: To enhance F1.1: MKI F1.1.1: MKI - Top Top15/2 Top 10/25%  Provide VP -
MKI market market position/ 20 in Indian market 0% sales Marketing
position in India % of market for hair data to
share captures care/shampoo/ 15% xxx.
(market share)  Strategic
captured implemen
tation of
the
marketin
g plan
2018-
2020
F2: To increase F2.1: F2.1.1  Aggressiv VP -
sales/profit in a. Total sales a. 4b/USD a. 5b c. 6b USD e sales Marketing
the targeted of MKI (M/R) i. Delhi – xxx US promotion
market b. Total profit of ii. Mumbai – xx D in all
segments MKI (M/P) iii. Chandigarh segments
iv. Chennai - xxx  Product
v. Aligarh - xxx launching
in Chennai
b. 1b USD d. 2.5b and
Aligarh
i. Delhi – xxx b. 1.5  Increase
Mumbai – xx b usage rate
iii. Chandigarh among
iv. Chennai – xxx Indian
Aligarh - xxx consumers
(Rural
segments)
 Increase
use of hair
care
products
among
Indian
upper and
consuming
classes +
working
women
(Urban
and sub-
urban)
 Increase
usage
among
youth
population

To penetrate Total i. Delhi – xxx VP -

the current sales/Total ii. Mumbai – xx Marketing
market profit of MKI in iii. Chandigarh
segments the current
markets
 To enter new Total i. Chennai - xxx
market sales/Total ii. Aligarh - xxx
segments profit of MKI in
the new
markets
F3: To improve Average cost a. Current a. 190 a. 190  Enhanc Senior
Distribution per/order for segments – b. 280 b. 280 quality of Marketing
Channel cost each DC/outlet 200R/per order c. 200 c. 200 supply Manager
efficiency/ Value (Urban/sub- d. 280 d. 280 value
delivery network urban) chain
(MKI-supplier- b. <300R/per  Develop
distributors/DC, order (Rural – database
etc) Delhi, Mumbai for
& Chandigarh) DC/outlets
c. <250R/per /agents/su
order plliers
(Chennai)
d. <300R/per
order (Aligarh)
Customers C1: To C1.1: C1.1 .1  Customer Senior
enhance a. % of a. 85% (MKI – All a. 85 a. 85% satisfactio Marketing
customer Customer segments) % b. 85% - All n survey Manager
satisfaction of Satisfactio b. Repeat b. 80 segments  Develop
MKI n Index purchase %- loyalty
b. % of (Loyalty) - 80% All programs
repeat i. 90% - seg for loyal
purchase Delhi, me consumers
Mumbai & nts  Develop
Chandigarh CRM
ii. 70% - database
Chennai &
Aligarh
C2: To enhance C2.1: C2.1.1:  To provide Marketing
quality of a. Star a. 4 out 5 Beautician Manager
beaiticians/agen rating star rating a. 4 a. 4 out 5 star s/Agents
ts services of MKI on 35 out rating on profession
b. No of ratings 5 35 ratings al tools kit
compl b. No of star b. No of  Participate
aints compaints rati compaints in Star
-< ng -0 Rating
5/yearly on  E-custome
(each 35 complain
DC/outlet rati &
s) ngs feedback
b. No  Establish
of complaint
co monitoring
mp system
aint
s-
0
C3: To C3.1 a. % of C3.1.1 – 80% 85% 90%  Brand Marketing
enhance brand Brand awareness Manager
awareness of awareness b. 70% b. 80% survey
MKI products  Brand
b. Brand awareness
association programs
 To work
with the all
DCs to
promote
awareness
of MKI
 products
(circulating
on new
pamplets
to
consumers
)
 Brand
associatio
n survey

C4: Fast C4.1: No of C4.1.1: 3 days 3 days 30 hours  Inventory Marketing

delivery of days to deliver upon receive of managem Manager
products products to order ent system
consumers  Customer
order
tracking
system
Internal P1: To position P1.1: No of P1.1.1:  To convey Senior
Process MKI brand as uniform a. Delhi & a. Del a. Delhi & attribute of Marketing
aprefered brand advertisements Mumbai – 20 hi & Mumbai – MKI Manager
relative to across India b. Chaligarh – Mu 25 products
substitute 10 mb b. Chaligarh  MKI – ‘The
products and c. Chennai – 15 ai – – 20 best hair
competitor d. Aligarh - 5 20 c. Chennai – care
offering b. C 20 solution to
ha d. Aligarh - Indian
lig 15 women’ –
ar Conveying
h specific
– benefits of
10 MKI’s
c. C products
he
nn
ai
–
15
d. Ali
ga
rh
-
10

P2: To P2.1: No of P2.1.1:  To Marketing

aggressively marketing a. Sales xxx convince Manager
pronote MKI’s programs promotion – xxx and to
products in the implemented quarterly feature
targeted b. Viral highly
markets marketing on satisfied
social media – customers
2 times a to engage
week in the
c. Advertisement MKI’s viral
(billboard) marketing
d. Advertisement efforf -
s (Indian promotion
movies,  To feature
theatre) – highly
2/week satisfied
e. Electronic customers
advertisement (professio
s (Website) - nal
 Continous working
f. Promotion kits women) in
for the MKI’s
beauticians/a website
gents spreading
g. Sales party – positive e-
7/ week for WoM
each DC campaign
h. Consumers’  Switching
exhibition – of usage
2/yearly for of
each DC traditional
soap, oil,
etc. to
MKI’s
products
 Featuring
satisfied
rural
consumers
using
MKI’s
products in
the advs.
promoting
effective
use of
MKI’s
products
 Highlightin
g buying
criteria of
consumers
that favour
MKI
P3: To improve P3.1: Time P3.1.1:  Inventory Senior Marketing
supply chain taken to deliver a. 24 hours – a. 24 a. 24 hours managem Manager
performances product from Delhi, Mumbai ho b. 30 hours ent system
between MKI - - MKI to & Chennai ur for
DC - frontage DC/Frontage b. 2 days – s MKI/DC/
shops - shops Chaligarh & b. 2 Frontage
consumers Aligarh da shops +
c. E-commerce ys online
c. Availabili – April 2018 ordering
ty of e- system
commer  Use of
ce quality
transporter
s
 Develop e-
commerce
P4: To practice P4.1: Cost/per P4.1: xx USD/unit xxx xxx  Implement Production Manager
manufacturing unit product product lean
excellence and managem
improve ent
production  Implement
efficiency Good
Manufactu
ring
Practices
Learning & L1: To excel in L1.1: No of new L1.1.1: 1  Establish VP - Marketing
Growth distribution DC established Chennai – 1 TBD TBD new
channel & (Chennai, L1.1.2: 16 partnershi
 supplier value Aligarh, etc) Delhi – 4 p with xxx
chain (OE) L1.2: No of Mumbai – 4  Franchise
frontage shops Chennai 6 program?
established Aligarh – 2  Develop
(Delhi, Mumbai, L1.3: 300 business
Chennai, Delhi – 50 plan for all
Aligarh) Mumbai – 50 DCs
L1.3: No of new Chennai - 100  Strategic
agents Aligarh – 100 alliances
appointed with xxx
L2: To enhance L1.1: % of L1.1.1: 70% 70% 75%  Introduce GM
agents/beauticia agents/beauticia engageme
ns satisfaction ns satisfaction nt days
with MKI index and
programs
MKI
 Propose
new
promotion
system

L3: To equip L3.1: L3.1.1:  To design and implement

employess with a. No of a. 2 a. T a. TBD hands-on
necessary training training/agent/ B b. 15% training related to marketing,
marketing attended/ beauticians D c. 15% Management of supply chain,
competencies to agent/bea b. 10% increase b. 10 quality of services, etc.
effectively carrt utician in sales %  New reward system (sales)
out the strategic b. % of (Delhi, c. 5
marketing plan Sales Mumbai) & %
increase 5%
per (Chandigarh,
agent/beu c. Chennai &
atician Aligarh)
L4: To develop L4.1: No of L4.1.1: 2 (Chennai New New profile  Part of MKI’s marketing
strategic consumer and Aligarh) profile (TBD) intelligence
consumer profile (TBD) system
profile established

Tactical, strategy map

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