Strengths of MKC

Party Plan method: By using this method the number of customers visited per hour increase rather than the repetitive
person-to-person method. From the case we can see that Avon consultants can reach two customers per hour and in
the case of MKC they can reach 3 customers per hour.

Narrow product line: Having a narrow product line helps us in efficient training of the consultants and efficient
information delivery of the products by consultants. It also helps in fulfilment o f product delivery immediately. (Which
will create more trust of the consultants among the customers)

Seminars and Training Programs: This is important as the consultants will gain the info and training on selling the
products and understand the SOP of the company, increasing the relationship between the consultants and the
company.

Promotion opportunities in Salesforce: This will reduce consultant turnover and also make sure that the consultants
are encourages to make more sales and more recruits in order to achieve.

Sales incentive structure : The incentive is structured in terms of sales volume and recruit volume, encouraging
consultants to buy more product. The retail price being relatively high and generous incentive structure will encourage
more consultants join the organisation.

Beauty Consultants Guide and Show : This will help in understanding the products well and a very good training tool
Strengths of MKC Salesforce:-

Consultants: The consultants are female with average age 34 which provides more relatability to the customers. The
consultants will now the problems of the customers very well which increase the relatability.

Incentive structure : It is sales volume based and about 50% discount can be obtained on wholesale price. 4%-8%
incentive for recruits which is not available in other companies. And depending upon position incentive based on
recruit performance can also be obtained.

Promotion: The promotion hierarchy within the system. Since the higher –ups were already consultants, respect can
be easily obtained. The promotion structure is also done in a way a higher-up is at least brining in 10 people when he is
moving.

Risk and investment: There is little risk and investment required that many people can join as consultants and also
buyback of inventories at 90% of the price is a good scheme.

Price and Party Plan method:- This method brings in more profit per customer and more customer per hour as
described above.
Suggested Improvements:

Incentive Structure: From the case we can find that incentive structure is based on volume of sales, which means some
consultants can coast on repeat sales instead of getting new customers and the new customer might be brought only
by new recruits. So incentive can be tired in sales volume but in terms of new customers and repeat sales. Similarly
new products or the products to be pushed can also be added in the incentive tier.

New Products bundling: In the case it is mentioned that customers fail to buy the basic face care package when the
new products are introduced and this can be avoided by bundling the new product along with then basic kit and
offered at a discounted price.

Retention of Old customers: Customers after a certain point can be included in subscription system and the
consultants can visitation plan to keep the contact with them and sell more or new products. The consultants can also
have a small incentive for the subscription

Brochures for product pushing: Boucher's can be given to consultants every month specifying which product(new
release) to push more and how they can sell it in conjunction with other products.

Individual Assessment :- It is not mentioned in the case whether each consultant is individually assessed, so if not this
can be executed and advice to improve can be given.