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

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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