...or so it appeared. But the plan was not entirely ‘little’ we discovered
Indian eves have been enticing players from across
the world to bet big on the Rs.450 billion Indian FMCG industry. That’s not-so-obvious. But then, only a woman can understand a woman better and that’s the obvious! And cashing-in on this standard rule is Hina Nagarajan, Country Manager of Mary Kay Cosmetics Pvt. Ltd., the US-based company that forayed into India late last year. The company has taken select markets in India by storm in a span of just six months. In such a short breath, through its unique direct selling model, they have roped in over 2000 women dealers. Like other now-successful multi-level-marketing companies, this one too steers clear of the retailing strategy, but with other cosmetics player growing from big to bigger, the question of Mary Kay’s continued success does arise. But, with its unique game plan, this personal care player isn’t oblivious to the threats and consequences, and is willing to play hardball with the Goliaths of the tournament. In conversation with 4Ps B&M, Hina Nagarajan shares future strategies for the Indian market.
How is Mary Kay’s positioning unique vis-á-vis competition?
We do follow the multi-level marketing (MLM) model, but we are very different from them in terms of selling. In MLM, the dealer benefits when he brings in other dealers and consumption is mainly limited for private purpose. But in case of ours, we believe more in direct selling and the dealer earns margins from a sale while adding another dealer.
What is your target segment?
We are focussing on sections of society which can afford luxurious skincare products. We are a company run by women, for women. Also, like many players, we never claim falsely – become our member & your life will change. We don’t promise a makeover in seven days too!
Some lines on your retail plans...
We won’t follow the regular retail outlets model as we believe that none except our members can sell our product. Also, if we follow the retail model, we would be killing the business of one woman. Considering that 200 women join our organisation every month, we don’t want to kill their business.
What are your offerings?
The whole skin care market is worth Rs.16 billion in India and a very high growth-potential segment is the anti-aging market which is worth only Rs.500 million today. Thus, our specialty will be anti-aging offerings. But we have a wide product portfolio addressing all the needs of women. Besides, we will also launch our own salons alongwith men’s products.
Isn’t pricing a ‘bottleneck’ when you want fat-growth in India?
Though our prices are premium, they lie at the bottom of premium skin-care prices. Then again there is the fact that we are telling consumers that a small bottle of ours lasts longer then any other product available. Our sales team are also being educated to change consumer behavior. Its all about addressing it from the consumer point of view and then price can act as a barrier.
What are Mary Kay’s future plans for the Indian market?
Right now, we have a presence in Northern India but we will have a pan-India presence by the end of this year. We plan to invest more on beauty salons and for funds to do so, we have full support of our parent company.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
Indian eves have been enticing players from across
the world to bet big on the Rs.450 billion Indian FMCG industry. That’s not-so-obvious. But then, only a woman can understand a woman better and that’s the obvious! And cashing-in on this standard rule is Hina Nagarajan, Country Manager of Mary Kay Cosmetics Pvt. Ltd., the US-based company that forayed into India late last year. The company has taken select markets in India by storm in a span of just six months. In such a short breath, through its unique direct selling model, they have roped in over 2000 women dealers. Like other now-successful multi-level-marketing companies, this one too steers clear of the retailing strategy, but with other cosmetics player growing from big to bigger, the question of Mary Kay’s continued success does arise. But, with its unique game plan, this personal care player isn’t oblivious to the threats and consequences, and is willing to play hardball with the Goliaths of the tournament. In conversation with 4Ps B&M, Hina Nagarajan shares future strategies for the Indian market.How is Mary Kay’s positioning unique vis-á-vis competition?
We do follow the multi-level marketing (MLM) model, but we are very different from them in terms of selling. In MLM, the dealer benefits when he brings in other dealers and consumption is mainly limited for private purpose. But in case of ours, we believe more in direct selling and the dealer earns margins from a sale while adding another dealer.
What is your target segment?
We are focussing on sections of society which can afford luxurious skincare products. We are a company run by women, for women. Also, like many players, we never claim falsely – become our member & your life will change. We don’t promise a makeover in seven days too!
Some lines on your retail plans...
We won’t follow the regular retail outlets model as we believe that none except our members can sell our product. Also, if we follow the retail model, we would be killing the business of one woman. Considering that 200 women join our organisation every month, we don’t want to kill their business.
What are your offerings?
The whole skin care market is worth Rs.16 billion in India and a very high growth-potential segment is the anti-aging market which is worth only Rs.500 million today. Thus, our specialty will be anti-aging offerings. But we have a wide product portfolio addressing all the needs of women. Besides, we will also launch our own salons alongwith men’s products.
Isn’t pricing a ‘bottleneck’ when you want fat-growth in India?
Though our prices are premium, they lie at the bottom of premium skin-care prices. Then again there is the fact that we are telling consumers that a small bottle of ours lasts longer then any other product available. Our sales team are also being educated to change consumer behavior. Its all about addressing it from the consumer point of view and then price can act as a barrier.
What are Mary Kay’s future plans for the Indian market?
Right now, we have a presence in Northern India but we will have a pan-India presence by the end of this year. We plan to invest more on beauty salons and for funds to do so, we have full support of our parent company.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
3 comments:
i think iipm is no. one in international placements
me agree with anita
iipm is great indian dream initiated by prof. arindam chaudhuri
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