Post on 12-Nov-2014
description
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
CompetitorsDirect competitors : Direct selling business as well
as retailers of cosmetics Eg. Avon JafraIndirect 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 debtsReplenishing and expanding sales forceMr. K : Men’s productCompany split its stock 2:1
Hence stock prices tumbled
Organization of Mary Kay
Ladd
er o
f suc
cess
Retention and new recruitment of sales force Direct marketing
No fringe benefits No security No 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/SolutionMake job more lucrative by paying higher
commissionsOffer fringe benefitsPromote Mr. K product