Mary Kay Group 8

Would you like to join the following company? • A company having the following:– Ranked second according to sales in direct selling companies – Offering autonomy to people. – Offering flexible work hours. – You work up to management because of your own efforts and merits – High growth – Incentives for • Pink Cadillac • Pearl/Ruby ring – Offers recognition in National Guest Night in form of awards – Praises people to success – Where human values are considered – Having heavy emphasis on personal relationships – Providing opportunities to women empowerment – No geographic restriction to sales territories

Philosophies…….

• Open door philosophy  First second etc positions not declared. • You can do it ! • Make me feel important • Treating others as you would have them treat you ! • God first, family second and career third

Mary Kay Facts

Growth rate of recruitment increasing at 13%

in 1983 as against 78% in 1980 Target clientele : 18-34 years and 35-44 age group Competitors Direct competitors : Direct selling business as

well as retailers of cosmetics Eg. Avon Jafra Indirect competitors: Direct selling of other products to compete for sales force Eg.Tupperware(plastic dishes)

80% of R & D budget allocated to improving

existing product  Strategy to avoid bad debts Replenishing and expanding sales force Mr. K : Men’s product

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Organization of Mary Kay

Retention and new recruitment of sales force 

Direct marketing  No fringe benefits  No security  No

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fixed timings

Trend change  Rising divorce rates  Scattering of relatives and families  Weakening ties to ethnic neighbourhood

Change of external environment

External environment Company

Recommendations/Soluti on Make job more lucrative by paying higher

commissions Offer fringe benefits Promote Mr. K product