Running Head: Mary Kay Cosmetic SWOT Analysis Mary Kay Cosmetic SWOT Analysis Author Darlene Trotter Mary Kay History At a time when women were suppose to be home taking care of their families Mary Kay Ash was out working in a man’s world and achieving success. After 25 years working in direct sales and being passed over for promotions by men she had trained, in those times women were not given many opportunities for advancement, Mary Kay Ash handed in her resignation.
After she resigned she began writing a book about her experiences in the work force, she did not want other women to experience what she had, and soon discovered she had a marketing plan for a dream company. With her oldest son, Richard, $5,000 in savings, the skin cream she bought the manufacturing rights too, and her experience she started Beauty by Mary Kay which we now know as Mary Kay Cosmetic. With a force of nine independent sales representatives, whom she recruited and were friends of hers, who were eager to prove themselves Beauty by Mary Kay took off.
Her company is based on the principle of faith first, family second, career third. Mary Kay believed in rewarding hard workers and gave away jewelry, vacations, and pink Cadillics to her top sales representatives now referred to as Independent Beauty Consultants. Within two years sales neared $1 million and as the company grew new products were added. In 1996 Mary Kay Ash founded The Mary Kay Foundation in honor of her Golden Rule emphasizing the importance of giving back. The mission of the foundation is to eliminate cancer and to end the epidemic of violence against women.
In 2009 $5. 8 million was donated to cancer research and violence against women. With a sales force of 1. 8 million beauty consultants worldwide 500 of them National Sales Directors, the highest achievement at Mary Kay, is one of the most nationally recognized companies today. Since the inception Mary Kay has had double-digit growth. Mary Kay manufacturers and packages the majority of its products from its state-of-the-art facilities in Dallas and China. “The legacy of Mary Kay Ash continues to inspire, enrich and empower women around the globe to believe that they can do great things. (Marykayintouch. com) Mission Statement Mary Kay’s mission is to enrich women’s lives. We will do this in tangible ways, by offering quality products to consumers, financial opportunities to our independent sales force, and fulfilling careers to our employees. We also will reach out to the heart and spirit of women, enabling growth and fulfillment for the women whose lives we touch We will carry out our mission in a spirit of caring, living the positive values on which our company was built Integrity, Enthusiasm, Praise, Leadership, Quality, Teamwork, Service, Balance (faculty. nlv. edu. angel) Mary Kay’s Organizational Strengths Mary Kay Cosmetic does all its product research and development at is state of the art facility in Dallas. They stand behind their product and invest time and money to ensure it is the best. The teams of expert scientist use the most advanced skin care technology to ensure that consumers get a product they can believe in and are worth the money. The company is dedicated to having the best skin care product offered and wants the consumer to have absolute faith in it. They offer a 100% money back guarantee on all products.
This allows their sales force to offer products they truly believe in and can guarantee that the consumer will be happy with it and if they are not happy can be refunded their money no questions asked. If product is returned the beauty consultant can return the product and get a brand new replacement. The sales force of Independent Beauty Consultants is another strength that cannot be ignored. No one can say that Mary Kay does not take care of their sales force. Though they are “self-employed” Mary Kay offers the best training and rewards.
In their training each beauty consultant is encouraged to “consider herself Mary Kay” to project the founder’s charisma and selling ability (tshaonline. org). Beauty consultants are taught that they are in business for themselves but not by themselves. The rewards for sales and recruiting are numerous vacations, jewelry, and lots of recognition. One of the highest achievements is a pink Cadillac. With the training and rewards it is obvious why the beauty consultant works so hard to be successful. The fact that there are 1. million Independent Beauty Consultants attests to Mary Kay success. Product knowledge and safety are probably the biggest strength of the company. Beginning with the first skin cream that Mary Kay bought the manufacturing right to; to today’s anti-aging products she has always wanted to sell the best product. It was a tanner’s daughter who mixed up the cream and Mary Kay knew it was something special. Mary Kay spends millions of dollars a year and does more than 300,000 test to ensure every product meets the highest standard for safety, quality, and performance (Marykay. om). Each new product goes through stringent testing before being brought to market. With these standards the consumer knows they are getting a product they can count on. The dedication of Mary Kay Cosmetics to knowing what they sell and that it is safe for the consumer has made them the company they are today. Mary Kay Organizational Weaknesses Recruiting is the backbone of Mary Kay Cosmetics. However, it also can be their undoing. When you sign up to be an Independent Beauty Consultant there are two things that happen.
First, they want you to buy your store which can cost anywhere from $600 to $4800. This is a big investment and they don’t say anything until after you sign your contract. That can discourage the new consultant right away. The second thing is now they want you to sell the business to your friends and family. It called Building your own team. These two things are not mentions till after you sign your contract and they got you hooked. This is defiantly a weakness and has spawned some websites that are not friendly to Mary Kay a few examples are sequenceinc. om and pinktruth. com. I think there needs to be some better training of the directors to be more upfront with what is involved. Another weakness is there is a high rate of consultant who do not make it past the first year or who never see that wonderful income they are told about. Even though the numbers show that there are 1. 8 million consultants worldwide there are still high numbers who do not make it as a consultant or if they remain a consultant there income does not replace a full time job.
I believe that comes from the pressure that is put on them by their directors. Part of the problem is not fully disclosing how a consultant truly earns the big income. The product that is returned from dissatisfied sales consultants and what is done with it. When consultants decide to return the product for whatever reason the company gladly takes it back no questions asked but what do they do with it. The products are unopened and when received back it is destroyed. I believe this to be a weakness because there has to be a better way to use that product.
That is such a waste and with Mary Kay’s foundation for cancer and domestic violence I would hope they could find a way to donate some of the product to shelters or recovery centers. References http:/faculty. unlv. edu/angeline/mary%20kay%20/opportunity. ppt http:/www. tshaonline. org/handbook/online/articles/MM/dhm. html http:/www. marykay. com/company/companyfounder/default. aspx http:/www. entrepreneurs. about. com/od/famousentreperneurs/pl/marykayash. html http:/www. marykayintouch. com