Mary Kay Incentive Program RenewalExecutive SummaryThis proposal will attempt to renew the Mary Kay Incentive Program. The three issues I will address are: consultant morale, sales motivation/stagnation, and poor or weak directors and consultants. In addressing these issues I will refer to other companies that have used different motivational techniques in these situations. By the end of my proposal I hope to have at least 3-4 viable options that could be implemented in the Mary Kay company to solve the problems mentioned above. Introduction: The Problem The problem Mary Kay Inc. faces today is that their incentive program is not working. Based on data used in Mary Kay Cosmetics: Sales Force Incentives, the company introduced the VIP Car program to motivate its consultants to sell its cosmetics. Top sellers would be rewarded with a graduated car program. You will initially receive a red Grand Am and then a pink Cadillac. However, in making this program they ran into problems they hadn't thought of. This program was initially created to keep morale high and drive sales growth. In reality this led to the company having poorly trained directors who created a “team” of salespeople under them but lacked the experience to be a leader. This also caused sales to stagnate once the leaders received the car. The motivation to continue increasing sales was gone. Background: History In 1984, Mary Kay Cosmetics introduced the VIP car program. After several years of incredible growth thanks to this incentive, the company began to notice a 14% drop in sales. Between the years 1983 and 1989, Mary Kay's automotive program... middle of paper... works with a company until it feels successful and achieves goals. By decreasing incentives to larger levels, rewards will become more frequent and less costly to the company. References Coleman, Toni (2005). Objective: homes for minorities. Saint Paul Pioneer Press(MN)Jackson, Alphonso (2005). Closing the gap in homeownership. National Mortgage News. Volume 29, number 25Hannon, Kerry; Mulrine, Anna; Beddingfield, Katherine T. Mortgage Lender Report Card. US News & World Report. 26 August 1996 v121 n8 p58(1)Perlo, art. People before profits: Systemic discrimination in homeownership. People's Weekly World. (National edition). New York: 8 February 2003. Vol.17,Iss.36; page 8Sitaramiah, Gita. (2005). Buying in the dream. Saint Paul Pioneer Press (MN)U.S. Census Bureau. www.census.gov