Source: The Econonic Times 8/23/2006

Mary Kay Cosmetics Begins Test Marketing in India

The Economic Times in New Delhi ran an article on Mary Kay Cosmetic's test marketing in the country: ...It's a song that the Boss made memorable. It's a film that Clint Eastwood starred in. But most famously, it's a concept that Mary Kay popularised. Yup we're talking about the pink Cadillac. And the feisty bunch of sales women for whom it's has always been the ultimate prize. Now the pink wheel brigade will soon be at your doorstep as Mary Kay, one of the world's largest direct sales beauty product companies, debuts in India.

The US-based $2.2-billion company runs a one-of-its kind career car reward programmes for its top performing sales professionals with customised pink coloured cars. And although its stable is fairly varied including everything from Pontiacs to Mercs, the Mary Kay rewards programme has always been about the pink Cadillac.

According to sources, Mary Kay is starting test marketing in India and will consider going into full-fledged local manufacturing later. It is setting up a wholly owned subsidiary which will import skin care and cosmetic products for test marketing.

Sources say the company will then consider either making its products in India on its own or opting for contract manufacturers. If the test run is successful, Mary Kay will invest between $1-5 million over the next five years for manufacturing related activities...

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