Mary Kay

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TONYA HUMPHREY, CARRIE MAYS, and DEBBIE GRANT
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About Mary Kay Ash
This mother of 3 studied to be a doctor while
working part-time as a salesperson---until she
realized in an aptitude test she scored higher in
sales than science.
After retirement in 1963 she began writing a
dream company book for women. Started Mary Kay
Why theorize? She was the author of 3
bestsellers and recipient of countless awards
Mary Kay Ash (1915-2001)
If you think you can, you can. And if you think
you cant, youre right.
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About the Company
1963-Mary Kay Cosmetics is founded 1969-First
Pink Cadillac is awarded 1971-First International
subsidiary opens in Australia 1976-Mary Kay is
listed on the NYSE 1980-Mary Kay International
opens in Canada and Argentina 1985-Mary Kay
returns to family ownership in a leveraged
buyout 1990-Mary Kay operates in 10 markets
worldwide 1996-Wholesale sales surpass 1
billion 2004-Mary Kay has over 1.3 million
consultants in 30 global markets
Although Mary Kay is prominent in 30 markets
worldwide, this project will cover the systems
within the continental US only.
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Marketing Strategy

• Dual Marketing Concept
• Corporate Management
• plan product and market development
• provide the most liberal discount structure and
  highest commission opportunity
• offer incentives and awards to consultants
• advertise products to give marketing support to
  consultants
• Independent Contractors
• operate independently of corporate management
• derive earnings from retail sales

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Marketing Plan

• Direct Selling the sale of a consumer product or
  service, person-to-person, away from fixed retail
  locations. Products are sold primarily through
  in-home product demonstrations.
• Internet and Mall Kiosks
• Although these techniques are less prevalent,
  they seem to be increasing, however Mary Kay
  still stands by the more individual approach to
  direct selling

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Organizations within the Supply Chain

• Internal
• Research and Development
• Scientists to develop and test different
  products
  
  

• Manufacturing and Packaging
• Majority of products are manufactured and
  packaged in Mary Kays state of the art plants in
  Dallas and China

• External
• Raw Materials are provided by many companies
  outside the firm, as well as inside
• Mary Kay Cosmetics Preferred Partners Include

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Inventory Management

• Push Inventory Systems
• Mary Kay Cosmetics produces to projected
  sales based on past history, and outside factors
  to determine how much of each product to produce
• After production, products are warehoused
  within the 5 branch distribution centers
• Beauty Consultants also store extra products
  in order to anticipate their individual clients
  needs

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• Product Distribution
• Ordering
• Logistics
• Branches
• Consultants

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Ordering

• Customers place orders with their individual
  Consultants

• Consultants take orders and submit them to
  Mary Kay headquarters
• Mail
• Phone
• Internet

• Orders and inventory are tracked on a main
  electronic database system within headquarters

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Logistics

• Main manufacturing center in Dallas sends
  all products to the
  branches by truck
• 5 Statewide Branches are located in Texas,
  Illinois, California, New Jersey, and Georgia
• Products are distributed to the individual
  beauty consultants directly to their door via UPS
  or USPS

Beauty Consultants deliver the products to their
clientele in person to ensure Customer
satisfaction
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Logistics within the Supply Chain
Customers
Mary Kay Star Consultants
GA
IL
TX
CA
Mary Kay HQ
Raw Mat.
NJ
Raw Mat.
Raw Mat.
Raw Mat.
Raw Mat.
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Information Systems
Although Mary Kay was unable to disclose
particulars about their information systems, we
have concluded the following
Consultants Whenever a consultant contacts
corporate headquarters, they are either
immediately recognized by their telephone number,
or their consultant ID number Internet Online
ordering through a rotation process of
consultants based on the entered zip code while
using the consultant locator Inventories
Balances are automatically updated through a
computerized Inventory Control System during
production and shipping
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Questions and Answers