Professional Documents
Culture Documents
Mary Kay Inc. is a multi level marketing company that sells skin care and cosmetics
products. Mary Kay World Headquarters is located in Addison, Texas, United States, a
Dallas suburb. Mary Kay Ash founded Mary Kay Inc. on Friday, September 13, 1963.
Richard Rogers, Mary Kay's son, is the executive chairman, and David Holl is president
and was named CEO in 2006.[2]
Contents
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• 8 References
In the United States, roughly 200 products are currently available. In other countries,
fewer products are available, because they are reformulated to meet local laws or, more
commonly, consumer preferences. For example, Asian makeup is sometimes much
whiter than European makeup. African makeup has traditionally been more ochre than
European makeup.
Some products, such as Mary Kay Whitener, are created for a specific country, or
geographic region. Other products, such as the Mary Kay Limited Edition, are created to
reflect seasonal changes.
In the early 1990s, recognizing that the majority of both its customers and consultants
were women of color, Mary Kay introduced colors that were more suitable for that
market.
The Mary Kay product line includes products in five categories: facial skin care, color
cosmetics, body care, sun protection and fragrance. Mary Kay develops, tests,
manufactures and packages the majority of its own products at its state-of-the-art
facilities in Dallas and China.[3]
PETA celebrated a semi-victory in the cosmetics industry in 1989, when Mary Kay
Cosmetics announced a moratorium on animal testing.[4] The sought for victory --- fur
coats are not prizes --- came in 1996, when Mary Kay stopped offering fur coats as
incentive awards for its sales force [5]. The final push may have been a series of
embarrassing cartoons that appeared in newspapers across the country in the years
immediately preceding the ban. In 1989 they were published in The Night of the Mary
Kay Commandos[6] by Berke Breathed. A famous line from the book reads Even their
Uzis are pink.
In 1995, to adhere to the laws of The People's Republic of China, Mary Kay opened a
plant in Hangzhou to manufacture and package products. A European plant was opened
in 1997, in La Chaux-de-Fonds, Switzerland, to serve the European market but was
closed in 2003.
In 2009, wholesale sales of Mary Kay products to the consultants exceeded $2.5 billion.[3]
This $2.5 billion[3] figure does not account for products returned by consultants to the
company.[7]
Sales Volumes
Wholesale
Wholesale National
Year Consultants Directors volume /
Volume Directors
Consultants
1963 $198,154[8] 318[8] 0 0 $623.13
1973 unknown 21,069[9] 450(?) 2(?) unknown
1983 $300,000,000[9] 195,000[9] unknown unknown $1,538.46
1989 $400,000,000 200,000 unknown unknown $2,000.00
1991 $511,000,000[10] 220,000[10] unknown unknown $2,322.73
1992 $500,000,000[11] 250,000[11] unknown unknown $2,000.00
1993 $735,000,000[9] 325,000[9] unknown unknown $2,261.00
1994 $850,000,000[12] unknown unknown unknown unknown
1995 $950,000,000[12] unknown unknown unknown unknown
1995 Russia $25,000,000[13] unknown unknown unknown unknown
1996 $1,000,000,000[12] unknown unknown unknown unknown
1997 China $12,000,000[14] 15,000 unknown unknown $800.00
1998 China $7,200,000[14] unknown unknown unknown unknown
2001 $1,400,000,000 800,000 unknown unknown $1,750.00
2001 USA Unknown 500,000[15] unknown unknown unknown
2001 Mexico $20,000,000[16] unknown unknown unknown unknown
more than
2002 $1,600,000,000 850,000 19,000[17] $1,882.35
300[17]
2002 USA unknown unknown 13,000[17] unknown unknown
2002 China $120,000,000[14] 120,000[14] unknown unknown $100.00
More than
2003 $1,800,000,000 1,100,000 18,500[18] $1,636.36
100[18]
2004 $1,960,000,000[19] 1,300,000[20] 27,000[21] 410[20] $1,507.69
2004 USA unknown unknown unknown 210[20] unknown
2004 Canada $125,000,000[22] 29,357[23] 661[23] 16[23] $4,257.93
2004 United More than
$7,700,000[24] 3,500[18] 0[18] $2,200.00
Kingdom 70[18]
2005 $2,200,000,000[21] 1,600,000 [21]
31,000[21] 500[21] $1,375.00
2005 China $300,000,000[25] 400,000[25] unknown unknown $750.00
2005 USA $1,300,000,000[25] 715,000[25] unknown unknown $1,818.18
2005 Canada unknown 32,820[26] 673[26] 17[26] unknown
2005
unknown 20,000[27] 500[27] 8[27] unknown
Argentina
2005 Mexico unknown 175,000[28] unknown unknown unknown
2005 United
unknown 5,000[29] 140[29] 2[29] unknown
Kingdom
2006 1,700,000 about
$2,250,000,000[30] unknown $1,323.53
Worldwide +[30] 500[31]
2006 Canada unknown 34,272[26] 724[26] 18[26] unknown
2006 USA unknown unknown 14,000+[31] unknown unknown
2006 UK unknown 5000 [32] 140[32] 2[32] unknown
2007 Canada unknown 31891[26] 659[26] 25[26] unknown
2007 USA unknown 700,000 14,000[33] 215 [34] unknown
2007 $2,400,000,000 [34]
1,700,000 [34] unknown unknown $1,411.76
Worldwide [34]
2008 Canada unknown 30,679 [35] 608 [35] 24 [35] unknown
2008 USA unknown 600,000[36] 13,000[36] unknown unknown
2008 $2,600,000,000[37] 1,800,000[37] 34,000[37] 500[37] $1,444.44
Worldwide
2009
$2,500,000,000[38] 2,000,000[38] 37,000[38] 600[38] $1,250.00
Worldwide
2009 China $600,000,000 [39] 200,000[39] unknown unknown $3,000
Notes:
[edit] Cars
In 1968, Mary Kay Ash purchased the first Pink Cadillac, where it was repainted on site,
by the dealership owner, to match the Mountain Laurel Blush in the compact.[40] It was
such a good rolling advertisement that Mary Kay Ash decided to reward her top five
producers, by providing them with a Pink Cadillac paid for by the company in 1969. Pink
was an obvious color choice --- matching the company's eye and lip color palettes. Since
1980, the shade used by the Mary Kay fleet has been exclusive to Mary Kay. Every two
years, a Director or National can requalify for a new Cadillac. When the two year lease
has expired, the cars are repainted, prior to being auctioned off. The shade of pink has
changed over the years. In 1998, the color was changed to "pearlized pink". In honor of
its 35th anniversary, the Mary Kay edition, white GMC Jimmy sport utility vehicle was
offered in the United States. In 2007, top Independent Sales Directors can still earn the
coveted pink Cadillac. The color of the other cars offered changed to black for
Independent Sales Directors and smoky platinum for Independent Beauty Consultants.
In the United States, the 2006 vehicle choice consisted of a Pontiac Vibe, Pontiac Grand
Prix or a Cadillac. A Mary Kay director that qualifies for a car may choose from a
Cadillac DTS, a Cadillac CTS, or a Cadillac SRX. In 2007 the offered cars were Saturn
Vue, Pontiac G6, Pontiac Vibe, Cadillac CTS, and Saturn Aura.[41]
In 2009 GM announced it would be discontinuing the Saturn and Pontiac lines, forcing
Mary Kay to choose new choices for Directors and Consultants to earn. Independent
Beauty Consultants can earn the use of a Smokey Platinum Chevy Malibu or cash
compensation of $375 a month. Independent Sales Directors can choose a Silver Toyota
Camry, Chevy Equinox, or $500 a month. Top Independent Sales Directors can choose
between the Pink Cadillac SRX Crossover, Cadillac CTS, or cash option of $900 a
month.[42]
In the United Kingdom, Germany, The Netherlands, Spain and Ukraine, the car is a pink
Mercedes-Benz. In Argentina, one receives a pink Ford, while in Taiwan, it is a pink
Toyota.[44]. In Australia, one gets to choose between a Ford Falcon, or Volkswagen
Beetle.[45] In China, the vehicle is a pink Volkswagen Santana. In the Nordic countries
you receive a pink Volvo V50.[46]
The specific qualifications for earning the car depend upon the country, and vehicle that
is desired. If those qualifications are not met, then the Car Driver has to pay for a portion
of the lease of the car for that month. Meeting the qualifications entitles the Car Driver to
pay no monthly lease and 85% of the car insurance, or a pre-determined cash
compensation award.[47]
Since the program's inception, more than 100,000 Independent sales force members have
qualified for the use of a Career Car or elected the cash compensation option.[7] It is not
known how many Directors select the cash option in lieu of the car, but GM estimates
that it has built 100,000 pink Cadillacs for Mary Kay.[40]
In July, some of these cars were awarded. More than 30,000 Mary Kay direct sellers
descended on Dallas to attend speeches, awards ceremonies and seminars at the Dallas
Convention Center to motivate them for the year ahead. The Convention and Visitor’s
Bureau estimates they pump $72 million into the local economy. Over the three weeks of
seminars, Addison-based Mary Kay Cosmetics will hand out an estimated $6 million in
dream vacations, cash rewards — and, yes, those famous pink Cadillacs, said
spokeswoman Kirsten Monberg Gappelberg. Despite the recession, Mary Kay Inc. and its
international subsidiaries reported $2.5 billion in worldwide sales last year. Its sales force
grew by 13 percent and the majority of women who joined were between ages 24 and 35
— perhaps reflecting challenges in the present job market.[48]
[edit] Earnings
As a private company, Mary Kay Inc. does not make all of its financial information
available to the public.[7] As a consequence, there is very little reliable information about
actual earnings by consultants.Nearly 300 Independent National Sales Directors in the
United States have earned more than $1 million in commissions.[3]
There are two ways for consultants earn money in Mary Kay:
• Retail sales;
• Recruiting;
"Recruiting commission earnings" reflects the commission and bonuses that one earns
from the wholesale purchases of their down line. It does not include income from retail
sales and it does not include income from the Mary Kay tools business.
In an April 2005 press release, Mary Kay (Canada)[50] claimed the following for Canada
in 2004:
In an April 2006 press release, Mary Kay (Canada)[50] claimed the following for Canada
in 2005:
In a February 2007 press release, Mary Kay (Canada)[50] claimed the following for
Canada in 2006:
In February 2009, Mary Kay (Canada) claimed the following for 2008[35]:
In February 2010 Mary Kay (Canada) claimed the following for 2010[51]:
A 68.6% per annum turnover figure has been calculated based upon information supplied
by Mary Kay (USA) to the FTC.[53]
A 85% per annum turnover figure has been calculated, based upon the data supplied by
Mary Kay (Canada).[50] That document excludes individuals who earn a commission and
are in the company for less than one year. It also excludes individuals who are in the
company for more than one year, but do not earn a commission check.
Individuals who qualified as National Director, prior to the age of sixty, are given the
status of National Director Emeritus at age sixty five. This status entitles them to a
retirement income that is equal to 60% of the average of the best three of the last five
years prior to retirement[citation needed]. That monthly is paid to the retiree or their surviving
family for 15 years.[citation needed] There is no retirement plan for other consultants.
Transcripts http://www.5thcoa.courts.state.tx.us/cgi-
bin/as_web.exe?c05_05.ask+D+800147
Judges sitting Justices Morris, Moseley, and FitzGerald
Case history
Case opinions
Woolf v. Mary Kay Cosmetics, was originally decided in favor of the plaintiff, Claudine
Woolf. In doing so it marked the first time[55] that workplace rights could be applied to
independent contractors who worked from their home. This decision was stayed and then
reversed after an appeal. The Supreme Court USA ruled Certiorari Denied 31 May 2005.
[54]
In this case, Woolf was terminated from her position as director because her unit failed to
make production for three consecutive months. Woolf contended that her firing was
illegal, because of her medical condition --- she was suffering from cancer.
On 20 July 2009, Mary Kay Inc sued Pink Face Cosmetics for violation of 15:1051
Trademark Infringement.[58]. The specific issue appears to be the use of the Mary Kay
name, in selling Mary Kay products on eBay, and other Internet venues, for less than the
wholesale cost of the products.
In May, 2006 The Foundation awarded 13 cancer research grants of $100,000 each to
esteemed doctors and medical scientists in the United States. In October 2006, the
Foundation awarded $20,000 grants to 150 women’s shelters across the United States for
a total of $3 million.
Additional information about the MKACF and annual fundraising/donations can be found
on their website.As a part of its Pink Doing Green initiative, Mary Kay Inc., planted
200,000 trees in the Bitterroot National Forest in Montana in conjunction with the Arbor
Day Foundation and the United States Forest Service.[3]
• Mary Kay was parodied as "Lila Lee" in the Murder, She Wrote episode "Murder
by Appointment Only."
• Kathy Bates' character in Fried Green Tomatoes became a consultant and
progressed to a pink Cadillac driving Sales Director.
• Mary Kay was parodied as "Carrie Fay" in the Honey, I Shrunk the Kids episode
"Honey, You're So Transparent."
• The made-for-TV movie "Hell on Heels: The Battle of Mary Kay" shows Mary
Kay Ash (played by Shirley MacLaine) and her competition with Jinger Heath
(Parker Posey), founder of BeautiControl Cosmetics.
• In "Hell's Bells," an episode of Buffy the Vampire Slayer, it is alluded to that
Anya is a Mary Kay Consultant. She wears a suit and talks about holding a
skincare class. Xander also refers to the fact that she has a pink car.
• A series of cartoons later published in 1989 as The Night of the Mary Kay
Commandos[6] by Berke Breathed.
• In the Seinfeld episode "The Wig Master", Kramer is lent a Mary Kay pink
Cadillac from his parking lot.
• On an episode of That '70s Show entitled "Eric's Naughty No-No", his Aunt Paula
(played by Valerie Harper), Kitty's sister, is a Kathy May Cosmetics
Representative, complete with a pink car that was awarded to her for being a top
sales representative.
• In Season 5 of Weeds, Mary Kay Cosmetics is parodied as "You're Pretty
Cosmetics." Celia Hodes includes marijuana with the cosmetics she sells as an
incentive to her customers.
• Mary Kay was parodied as "Lady June" in the Designing Women episode, "The
Junies", when the character, Charlene, began selling "Lady June Belle" products
and eventually meets "Lady June".
• A subplot of the book Divine Secrets of the Ya-Ya Sisterhood features a woman
selling a thinly veiled copy of Mary Kay called Beautiere (with a grand prize of a
pink Chrysler awarded to prolific salesladies).
• In the 2009 independent film "Drool", Mary Kay, is parodied as Kathy Kay
cosmetics, and Imma Jean drives a purple cadillac to see Kathy Kay herself.
• The film Were the World Mine features a cosmetic company called "Nora Fay"
with whom the main character's mother gets a job.
The Mary Kay Museum is located inside the
soaring glass lobby of the Mary Kay World
Headquarters. The museum is part history lesson, part
tribute and part recognition hall devoted to the life of
one of America’s most admired businesswomen,
Mary Kay Ash.
A dynamic speaker, motivator and entrepreneur, Mary Kay was recognized for her achievements through
numerous awards and honors including:
Charming. Spirited. A one-of-a-kind success story. Over the years, there have been many successful business
leaders but none as unique as Mary Kay Ash, Founder of Mary Kay Inc. Her accomplishments left an unforgettable
mark on American business and opened the door for women around the world to experience success on their own
terms.
That company story didn’t begin until Mary Kay Ash faced a situation all too familiar to women. After 25 years in
the direct selling business, Mary Kay Ash resigned her position as a national training director when yet another
man she had trained was promoted above her – at twice her salary. Her response was visionary. At first, she
started writing a book that would help women gain the opportunities she had been denied. But soon she realized
she was creating a plan that would do much more than give advice. It formed the foundation for a new opportunity
where women could develop their talents and achieve unlimited success.
“The success [of Mary Kay Inc.] is much, much deeper than just
dollars and cents and buildings and assets. The real success
of our Company is measured to me in the lives that have
been touched and given hope.”
Today her vision, her courage and her unwavering spirit continue to bring women the opportunity to
achieve their potential and bring their dreams to life. With more than 1.8 million Independent Beauty
Consultants throughout the world, Mary Kay carries on the legacy of Mary Kay Ash – inspiring, enriching and
empowering women to do great things.
Learn more about the remarkable story of Mary Kay Ash at www.marykaytribute.com.
Skin Care
Skin care products were the foundation of the company's products. Today, skin care product lines include
anti-aging products, cleansers, mosturization products, classic basic skin care, lip and eye care products,
and a men's skin care line.
Fragrance
They carry a full line of fragrances, ranging from light floral scents to heady, earthy ones. The fragrance line
includes "Journey", "Velocity", and "Angelfire" for women and "Domain", "Tribute", and "Velocity" for men.
Color Cosmetics
Mary Kay cosmetics color line includes products for lips, eyes, cheeks, and nails as well as foundation,
concealers, powders, compacts and applicators, and facial highlight pens.
Spa and body products are designed to pamper and indulge. Included are the "Private Spa Collection",
which features a series of scented body washes, candle sets, body mists, and mosturizing lotions. The line's
"Body Care" is a collection of buffing creams, cleansing lotions, hand cream, and hydrating gel. "Sun
Essentials" include sunblock products as well as sunless tanning lotion.