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COMPANY PROFILE

Mary kay which is founded on 13th

September ,1963 by Mary kay Ash. It is one of the

largest cosmetics company in the United States. It specialized in the sales of more than

200 product industry skin cream cosmetics fragrances .It mainly focus on women product

to that of man product .

It is one of the largest direct seller skins care an color cosmetics in the world .It has more

than 200 million of independent beauty consultant it more than 30 country world wide .It

is not just a ordinary cosmetics manufacturing company other than. It has conglomeration

of different services for different product to independent consultant services.

Mary Kay Inc. is a multi level marketing company that sells skin care and cosmetics

products. Mary Kay World Headquarters is located in Addison, Texas, United States, aDallas suburb. Mary Kay Ash founded Mary Kay Inc. on Friday, September 13, 1963.

Richard Rogers, Mary Kay's son, is the executive chairman, and David Holl is president

and was named CEO in 2006. A direct sales career allowed her the flexibility she needed

as a single mother raising three children.

There are some of the product which Mary Kay have in the market such as Bella perfume

,Skins freshener, Skins care moistures ,Dry skins Cleanser, different resources likes

lipsticks, lipslinear, lipsgloss. These product are highly demanded in the globalized market

in the globalized world. This company have a great history it good track record of

introduced new & innovative cosmetics product for its customer .It also offer rather

supports or give opportunity to people to earn money by selling product.

Mary Kay and the DSA

The Direct Selling Association (DSA) is a highly regarded U.S. national trade association

of firms that manufacture and distribute goods and services sold directly to consumersthrough an independent field sales force. Mary Kay Inc. has been a member of the DSA

since 1970, and Mary Kay executives have a history of involvement with the organization.

Several have served or currently serve on the governing board and have been instrumental

in shaping policies for the industry, particularly the Code of Ethics.

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Direct Selling Association:Industry AwardsMary Kay Inc. has been honoured with several DSA awards over the years: The DSA

awarded Mary Kay Inc. with its Vision for Tomorrow Award in 2002, 2006, and 2007 for

the companys community service efforts. In 2006, the Company also earned the

Education for Life Award from the DSA for its investment in independent sales force

education and the Success Award for its 2005 Fall In Love advertising campaign. In

2002, Mary Kay Inc. received the Vision for Tomorrow Award for underwriting a

groundbreaking television documentary, "Breaking the Silence: Journeys of Hope," In

2001, the Company received the DSA Industry Innovation Award for its groundbreaking

Personal Web Site program, which assists the independent sales force with conducting

their businesses.

Selling Structure Of Mary Kay

It is the selling structure of Mary Kay .The company had an innovative sales force by way

of 1.3 million beauty consultants who were independent of the company. To be a active

player as in this company the consultant had to buy US$ 200 worth of products

additionally every quarter. The consultant was then trained by the company to conduct a

Sales Director

Future Sales Director

Team Leader

Senior Consultant

Beauty Consultant

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sales session through parties held at private homes. The income of the consultant was from

dual sources- from the sale of beauty products as well as from adding more saleswomen.

Each women started as a beauty consultant, a beauty consultant became a Senior

Consultant by recruiting two women as beauty consultant. A senior consultant received

4% of the commission made by her recruits. On recruiting four person, she moved up thehierarchy to become a Team Leader and was eligible to earn 9% of the commission of her

recruits. If she recruited eight persons, she became eligible to be a future sales director. At

this position, she was expected to have 30 recruits (including 8 personal recruits) and sales

of US$ 16000 to become a sales director. She could then become a senior sales director

and nominate a personal recruit as a sales director in her place.

Selling Style Of Mary Kay

5

Selling

Style

On the Face

On the Go

On PaperOnline

Party

Environment

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Challenges

Executives and sales managers at Mary Kay wanted to increase the number of quality

participants in the companys Star Consultant program, because many of the same

consultants were winning every quarter. They wanted more consultants to enjoy thefeeling of accomplishment that would come from doing well and being recognized for

their efforts. Ultimately, the company believed recognition of more consultants could lead

to a higher level of loyalty and even greater sales. The company realized that the eight

performance and reward levels previously established were not flexible enough to allow

wide participation. The reward values ranged from $20 to $350; however, the choices at

each level were fixedthere were no opportunities for consultants to choose rewards that

were meaningful to them. If a consultant personally liked the reward offered, they would

feel motivated to work toward it. If the standard gift was not appealing to anotherconsultant, the motivation was lost.

Solution

Mary Kay turned to GiftCertificates.com to offer a reward program that delivered

more flexibility to fit rewards to personal preferences of the consultants. The program

included a greater number of rewards to choose from in the generous list of merchants

available through the Super Certificate REWARD.

Conclusion

Mary Kay believed that constant motivation and incentives to its salesperson would

improve its business. Mary Kay added a white GMC Jimmy to give variety to its sales

force. Mary Kay also believed in giving free products as gifts or bonuses in short periods.