Mary Kay

Mary Kay is a trademark of the U.S. cosmetics company Mary Kay Inc., under the especially facial skin care products and color cosmetics are sold. The products are available in Germany since 1986, headquartered in Germany is Munich. The Group had a turnover of 2.2 billion U.S. dollars in 2005. Is headquartered in Dallas, Texas.

Business strategy

The Group was founded in 1963 and is headed by a standard established by the founder Mary Kay Ash business strategy. Since 1976, the brand on the New York Stock Exchange traded; In 1985 the company went back through a leveraged corporate takeovers in the private ownership Ash. Thus, the company is no longer required to disclose all financial data.

Distribution

Distribution is organized as a multi-level marketing, ie independently working "Beauty Consultants " ( " beauty consultants " ) lead the products before at the customer's home. The customers have the opportunity to try the products before buying.

The members can recruit other people and thus build up their own group. If there is sufficient revenue so is a new business unit whose leader is called the " Director ". This will get a commission on the turnover of its members as well as a pink company car.

Criticism

Animal experiments

In the People's Republic of China, it is mandatory by law to get tested cosmetics on animals before they appear there on the market, have to be submitted for testing there also products of Mary Kay.

Distribution system

The distribution system of Mary Kay based on the fact that clients recruit more customers and as a saleswoman at a part of the system so myself. The sellers have this buy the products from Mary Kay at a specified price first yourself and can resell at a suggested price then, the difference to a maximum of 50 % remains as revenue. Since the price for the purposes of the rebate but may deviate down, 50 % according to some sellers are very rarely achieved.

Market risk is thus transferred from the Group to the individual sellers who are at risk of not being able to sell the goods and thus to lose their investment for the purchase of goods. To counteract this risk, Mary Kay offers the sellers have a possibility to take back the goods, although only 90 % of the purchase price will be refunded. As a result, a return some considerable pressure on the sellers is exercised.

On the part of the company 's distribution system is, however, still advertised aggressively. Details former saleswomen According to Mary Kay promises high income for little work, although this is not achieved in practice in most cases. Only about 300 of the 600,000 American distribution members achieve a six figure income. Another criticism the use of specially female on the target group here is tailored, partly feminist rhetoric that simulates the women involved to be able to fulfill both their right under the conservative American values ​​system duties as a wife and mother with the entry into the distribution system and at the same time a private to conduct business.

In summary, the distribution system can be referred to in practice as a product- based pyramid scheme, although it is theoretically shown otherwise.