Mary Kay Cosmetics

CHARACTERS IN THE CASE

DICK BARTLETT: PRESIDENT AND

COO, MARY KAY COSMETICS

MARY KAY: CHAIRMAN EMERITUS

ROGERS: CHAIRMAN AND CEO, MARY

KAY’S SON
R O L E P L AY 1

SCENE 1: BOARD ROOM MEETING, 1984

CHARACTERS:
• MARY KAY
• ROGERS
• DICK BARTLETT
R O L E P L AY 2

SCENE 2: 1989, DICK BARTLETT’S CABIN

 Skin Body Hair
care Care care

Products Range
Sales Strategy
• Products not available through retail
stores
• Sold by a network of over 175,000
independent women
• The sales force met directly with
customers in their homes and offices
• The original mission of company founder Mary Kay Ash
had been to be a “teaching-oriented” organization that
provided women with exceptional opportunities for
professional achievement, economic success
recognition, personal development, and independence.
• Later in the 1980s expanded it to include greater
emphasis on consumer needs, product innovation, and
quality.

Company’s Mission
Company Philosophy
Every person associated with the Company, from
Chairman Emeritus to the newest recruit, lives by the
Golden Rule, "Do unto others as you would have them do
unto you" and the priorities of God first, family second,
and career third.
In describing the company's commitment to the
independent sales force, Chairman Rogers asserted,
"Every aspect of the Mary Kay system is aimed at
promoting a successful career for the beauty consultants.
It's through her succeeding that we all succeed. . .. We're
committed to total customer satisfaction; and to the
customer, a beauty consultant is Mary Kay."
5 things that all
consultants seek - STORM

• Satisfaction with a task well done (self-

worth)
• Teamwork (a sense of belonging)
• Opportunity (to succeed)
• Recognition and Money
 Organizational
Beauty
Structure Consultants
Consumers
Directors

Marketin
g Group Sales
Group

Manufacturin Distributio
g Group n Group

Customer
Information System Human
Resource
Chief Chief
Finance Operating Scientific
Officer Officer
Legal & Public
Affairs
Goal is to support independent
sales force of 1,75,000 beauty Continual effort to improve the
consultants quality and selection of products

CATS – Creative Action Teams -

To break departmental fiefdoms
Creativity and flexibility

6 regional sales development directors

Bridge between sales organization and company

700-800 sales directors and 30,000- 40,000 beauty consultants

Information, conduit, administrator, motivator, personal and financial

advisor
Sales Force Support
Elaborate set of tools and programs

Motivate Recognize Develop

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Activities
COMMUNICATIONS

EVENTS

SALES FORCE ACTIVITIES

RECOGNITION AND PRIZES

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Financial Incentives
• Indispensable to the firm’s
selling strategy COMPENSATION

• No constraint set on pace of

advancement
• Commissions were key
• 5 Recruits  Team Leader  INCENTIVE ADVANCEMENT
RECOGNITION
SYSTEM OPPORTUNITY
Qualify for VIP Car
• Targets to keep car for 24
months
– Team monthly production volume
– Personal monthly wholesale PRIZE
production INCENTIVES

– Number of active recruits

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 History of VIP Car Program
No. of cars increased from 1100 to 5000

1963 1984 1988 1889

The company Introduced the Pontiac Grand Am Increase in
was incorporated VIP Car Program replaced requirements for
Oldsmobile Firenza VIP qualification
 General Motors discontinued
Interest Rates
Oldsmobile Firenza

Larger losses on
car serving for
shorter time

Cost of leasing a Car

Automobile Insurance
premiums
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CURRENT CHALLENGES

FINDING AN
EFFECTIVE
RISING COSTS AND REWARD SYSTEM
PRESERVING
CORRESPONDING FOR BEAUTY
SALES FORCR
DIMINISHING CONSULTANTS -
MORALE AND COST REDUCTION
RETURNS OF THE DECLINING
MOTIVATION IN MAINTAINING
VIP CAR INCENTIVE DIRECTOR LEVEL
AFTER CHANGES NON PERFORMERS
PROGRAM- PERFORMANCE
TO MARKETING
PERCENTAGE OF AND STAGNATED
PLAN
SALES PERFORMANCE TO
MAINTAIN VIP CAR
INCENTIVE

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