Sales & Distribution Management

Submitted By: Group 8

 Introduction

• With one foundation and four skin

care products, it was founded in 1963
• Mary Kay is one of the world's most
well-known direct marketers of
women's cosmetics
• As part of its channel strategy, it sells
directly to clients via independent
distributors like beauty specialists
 Value Proposition
Customer
• In addition to buying products from consultants,
customers also learnt from them how to take care of
their skin, utilise cosmetics, and improve their self-image
• Face-to-face sales allow customers to test products
before making a purchase, which is an additional benefit
• There was a chance that consumers may turn into
distributors

For Consultants/Distributors
• Potential to make additional money outside of
traditional full-time jobs
• Possibility of receiving significant benefits and
advancements dependent on the efficiency of
distributors in the downline
• Obtain thorough instruction that is applicable to
different industries
• You may network with specialists from across the nation
and enter to win the iconic pink Cadillac at the seminars
 Challenges
Internal

• Orders that were lost because more people were calling

after hours problems with high order volume
turnaround
• Lack of technologically competent beauty professionals
needs training, which is costly and difficult to anticipate
acceptance rates
• Lack of use of cutting-edge technologies for forecasting,
inventory management, and product fulfilment
• Due to dissatisfied sales employees, the compensation
system must be changed

External

• Need to take into account customers' contemporary,

hectic lifestyles and changing purchase preferences
• Internet sales channels are being introduced and being
used more often
 Challenges Resolution – Mary Kay

• Modifying the marketing mix to take into account the

change in the target market's demographics

• Young consumers might be MK's target market when it

launches a high-end product range under a new brand
name.

• Innovation in products to keep up with consumers'

evolving lifestyles

• Create an online inventory checker that operates in real-

time to keep track of stock levels and stop product
substitutions

• Mary Kay should train and encourage beauty experts to

use this medium because they are not tech savvy
 Case Learnings
• Understood the advantages and disadvantages of direct
selling

• The case offers an insight into the substantial changes

that took place in the 1990s, when the dot-com boom
was accompanied by a change in consumer and
distributor behavior

• Understood how changing the selling method( from

direct to online) can lead to a variety of challenges and
concerns for the top management

• How altering distribution techniques may bring up fresh,

heated rivalry

• Whether to retain the status quo or implement radical

innovation in sales and distribution is the case's
fundamental contention.
Thank You!!