Mary Kay Cosmetics: Sales Force Incentives Case Analysis Mary Kay Cosmetics is a company known for offering women exceptional opportunities for professional fulfillment and economic success and for reward women for their success. Mary Kay Cosmetics uses several programs to motivate, recognize and develop its beauty consultants, which include recognition in a monthly magazine, annual events, gifts and awards and, most importantly, financial incentives. At the heart of the financial incentives provided by Mary Kay are the three auto programs offered to beauty consultants at different stages of their careers. Automotive programs have proven to be effective motivators; However, costs to the company have skyrocketed as the number of winning cars as a percentage of beauty consultants has doubled, despite the program's increased qualification requirements. The VIP car program is a major cause of concern for May Kay due to the large number of VIP cars rented, high interest rates and insurance premiums, and large losses on cars in service for short periods of time. Mary Kay's top management must now find a solution to the rising program costs of their powerful incentive plan, while maintaining sales force morale and motivation. Key issues to consider in finding a solution to Mary Kay's high marketing plan costs are how beauty consultants will respond to changes in the incentive plan and how implementing the necessary changes will affect the sales force . One of Mary Kay's Problems Top management believes that raising program qualification requirements as a solution to reducing program costs has created a "rush" by beauty consultants to obtain VIP status before the launch date. program goes into effect... middle of paper.... Because an incentive program is important to them, Mary Kay Cosmetics can successfully revise their marketing plan to save money and keep morale high and motivation. Anonymous works cited. (1991, January). Performance Through People Awards. Incentive, 165. Retrieved February 6, 2005, from the ProQuest database. Ash, Mary Kay. (2000, September). It's time for a change. Workforce, 79. Retrieved February 6, 2006, from the ProQuest database. George, J., & Jones, G. (2005). Understanding and managing organizational behavior. New Jersey: Pearson Education, Inc. Lawler, Edward E. III. (1994). Motivation in work organizations. San Francisco: Josey-Bass Publishers.Locke, Edwin A. (2004). Linking goals to monetary incentives. Academy of Management Executive, 18, 4.Schuster, J., & Zingheim, P. (2000). Pay people well. San Francisco: Josey-Bass Publishers.
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