MARY KAY Introduction: Mary Kay is one of the largest cosmetic companies in the United States.
Mary Kay Ash started her dream in 1963 when she first opened the doors to the very first Beauty by Mary Kay in Dallas, TX (Mary Kay, Inc. ) It all began after she spent 25 years in direct selling for Stanley products. After a successful career with Stanley products, she started writing a book about direct sales, but it became a book about managing people. She started thinking about what a “dream company” would look like.
It took her 20 years to actually publish the book. She decided to start a direct sales company since she was so familiar with it.She wanted something that would be appealing to women who could sell according to their own schedule. Once she found the proper structure, she decided on a product line of skin care. “I envisioned a company in which any woman could become just as successful as she wanted to be. The doors would be wide open to opportunity for women who were willing to pay the price and had the courage to dream,” said Mary Kay Ash (Mary Kay 2007-2010). Mary Kay Ash and her husband went ahead and invested their $5,000 life savings to rent an office and manufacture inventory of skin care products.
They also employed nine independent sales representatives, which were called “beauty consultants” (Mary Kay, Inc). A month before opening the doors of Beauty by Mary Kay, her husband passed away. Her oldest son, which is now the Co-founder, Richard Rogers, quit his job and helped Mary Kay Ash realize her dream. Organizational Structure: Mary Kay Inc. has grown into a multi-billion dollar cosmetic company housing 4. 500 corporate employees and 1.
7 million independent sales members worldwide throughout 35 markets (Mary Kay 2007-2010).It still remains precisely what Mary Kay Ash envisioned – making a positive difference in communities while finding new and meaningful ways to make life more beautiful. Mary Kay Ash developed a marketing plan that ensured every beauty consultant would have an equal opportunity to make it in this business. The whole marketing structure is based on retail sales, with commissions earned based on the products being sold at retail cost. All Sales Director and Beauty Consultants buy the products directly from the company. There is only one wholesale sale, which is from the company to you, and one retail sale, which is from you to your customer.Mary Kay products do not have to go through any type of distribution before being sold to the intended customer; it comes directly from the company to the beauty consultant.
Mary Kay has five ways to market their products. On Paper: Sales made through catalogs and brochures only. This does not include any facial or skin care appointment. On The Face: Sales made at a facial or skin care class.
On The Go: A quick appointment, usually 15 minutes or less. On With The Show: Appointments where the beauty consultants demonstrate product sets. They usually have groups of 6 or more in them.The last one, Online: Selling Mary Kay on the internet through consultants’ individual sites or the Mary Kay website (Mary Kay Terminology). Mary Kay develops, manufactures, and tests the majority of their products at their very own state-of-the-art facilities in Dallas, TX and China (Mary Kay 2007-2010). Product safety is Mary Kay Inc. ’s highest priority.
In a usual year, the company spends millions of dollars conducting more than 300,000 tests to ensure that every Mary Kay product meets the safety, quality, and performance standards.They have scientist watching every step to make sure each individual ingredient is added at the correct time to make the complete product. Dermatologists are on hand to do special allergy testing on volunteers, not animals, which they completely stopped doing any testing on in 1989 after they started their recycling program (Mary Kay 2007-2010). “One of our corporate goals at Mary Kay is to achieve total consumer satisfaction worldwide by focusing on quality, value, convenience, innovation and personal service,” said Terry Jacks, Vice President of Research & Development.
SWOT Analysis: Strengths: Mary Kay found her company on what she calls the Golden Rule – on praising people to success – and on the principle of placing faith first, family second and career third. It was a company, as Mary Kay Ash often said, “with heart,” (Mary Kay 2007-2010). The primary strength of Mary Kay Inc.
is that Mary Kay Ash’s vision continues to bring women the chance to achieve their potential and bring their dreams to life. Mary Kay Inc. Is continually growing by the day and making their products according to women’s needs.They have state-of-the-art testing facilities in which scientist and dermatologists are always active. They do not do animal testing since 1989, and they are active in “going green.
” Mary Kay Inc. is also active in the community, such as the Red Cross, national Network to End Domestic Violence, and Contributions to Cancer Care. Weaknesses: One of their weaknesses could be that they only have 2 manufacturing sites currently, but as they continue to grow I am sure another one will be built. They are also competing against several other cosmetic companies that can be bought in a store, and for a bit less.
Opportunities: Mary Kay focuses on cosmetics and skin care for all ages. The demand for anti-aging skin care products allowed Mary Kay to bring out their Time Wise collection in 2000. In the Time Wise collection you can get 3-in-1 cleansers, moisturizers, and day solution with a SPF 25, night solution, firming eye cream, age-fighting eye cream, age-fighting lip primer, visibly fit body lotion, microdermabrasion set, even complexion essence, cellu-shape contouring system, targeted-action eye revitalizer and line reducer (Mary Kay 2007-2010).All of their products are registered patents to Mary Kay, so people who really like this product may try to find it somewhere else, but will not be able to because it belongs to Mary Kay. Threats: Potential threats are every cosmetic and skin care company.
In 1989 Mary Kay tried to take over its largest rival, Avon, but was unsuccessful (Mary Kay Inc. ). A year later after adding more beauty consultants they rose to the occasion and made surpassed Avon. So knowing that this happened before, it can always happen again, whether it is Avon, Covergirl or Maybelline.Mary Kay Inc. knows the potential Marketing Strategy: In the beginning, Mary Kay advertized with posters and signs in Dallas, TX where she first started out. As she grew into the robust company she is now, she has been able to advertise on television stations such as the Entertainment channel and Style network. There you can see people getting makeovers and view some of the products.
Mary Kay Ash has been in several magazines, such as Fortune, Sales & Marketing Management and Interactive Week magazine.She also made it into The World Almanac and Book of Facts in 1985 as one of “America’s 25 Most Influential Women,” (Mary Kay 2007-2010). Mary Kay Inc. has strived to expand the company, while still keeping the same values. They are currently still doing this.
Currently they have 35 markets worldwide. There are currently 36,000 Independent Sales Directors Worldwide, and 500 Independent National Sales Directors Worldwide, which is the ultimate goal (Mary Kay 2007-2010). Mary Kay also promotes “You can do it” as their slogan.
These words didn’t just come from anywhere though; Mary Kay Ash’s mother constantly told her “You can do it. ” Today these words symbolize the spirit of Mary Kay Ash and the company she started. Bibliography Mary Kay Inc.
(2007-2010) Mary Kay Embracing Women’s Lives. Retrieved April 15, 2010, from www. marykay. com Mary Kay – Inc. (2010) Mary Kay Inc.
Retrieved April 15, 2010, from www. answers. com/topic/mary-kay-inc Mary Kay Terminology J thru R (2006-2010) Mary Kay Terminology J thru R. Retrieved April 15, 2010, from www.