Mac Cosmetics Analysis

Makeup Art Cosmetics Inc. , more commonly known as Mac Cosmetics, is a popular high-end personal care brand that markets to women. In fact, it is so popular and prestigious in the celebrity world that it has been mentioned in pop songs, such as “Unpretty” by TLC. The MAC brand is exclusively sold in department stores and on the Web. You will not find it at discount outlets or drug stores. Beginnings: Two Canadians, a hair salon chain owner and a makeup artist, named Frank Angelo and Frank Toskan, respectively, started MAC in Toronto in 1984. The first U.

S MAC store opened in 1991, located at Greenwich Village, New York. They wanted to create cosmetic products that could better withstand the rigorous wear required to withstand photo shoots, such as the heat from bright lighting. Toskan was the idea man in the company. Before he partnered with Angelo, he spent hours experimenting with formulas with the help of chemist Victor Casale, who was also his brother-in-law. He formed a business relationship with Angelo since he was a skilled entrepreneur. M. A. C. has propelled to incredible heights since its founding in 1985.

Even with a marketing strategy based solely on word-of-mouth, M. A. C. has managed to rise as a global giant in the $160 Billion beauty industry. From sponsoring international fashion weeks to hosting slick celebrity powered parties. M. A. C. has become synonymous with glamour and stardom. Every aspect of what makes MAC Cosmetics; “MAC” being its products, its location, its brand image, or its phenomenal price point is unique and goes against most typical marketing methods. As we all know product, price, promotion and place are the four fundamental variables that either make or break a company.

There are currently 108 locations between Canada, the U. S. , and Europe, with extreme success in London, England. MAC is present in 53 stores across UK, out of which 8 are MAC’s flagship stores. One of the remarkable aspects of the success of M. A. C. Cosmetics is the way the company has grown without the conversational help of big advertising campaigns. Being true to the customer and serving their needs brings success. This company is a leader and never follows what other companies do. Success can be found in many different ways, keeping in mind innovation and constant creation of new ideas. M. A. C. s known to be an honest, caring and different company that strives to make the consumer happy and satisfied, while always remaining concerned with its social responsibility. Mission Statement: “All Races, All Sexes, All Ages” conceived to embrace all consumers. To be the worlds leading make-up authority among both professional make-up artists and consumers. To meet customers need for superior quality services and to provide secure & challenging work environment for all employees. To meet everyday needs for nutrition; hygiene and personal care with brands that help people feel good, look good, and get more out of life.

As an organization it commits itself to high standards and creative development with an enterprise concept that all pains have gains. M. A. CAIDSFUND. ORG was launched in 1994, supporting men, women, and children affected by AIDS/HIV globally. M. A. C. introduced the “Kid’s helping Kids” which, with the sale of greeting cards, painted by the kids, will be donated to pediatric organizations. M. A. C cosmetics has a great position on corporate and social responsibility. The public image of this business is supported, due to many different surroundings. M. A. C. s “cruelty-free” and does not test its products on animals. They use simple black and white (recyclable) packaging and they encourage Recycling with the “Back-to-Mac” programme. Customers are given a free lipstick of their choice with the return of six empty containers. The company offers good prices compared to other ‘big name’ companies without any false promises such as miracle (age reducing) creams. M. A. C. is upfront in promoting its support of the fight against AIDS, with its popular lipstick -‘Viva Glam,’ 1992 (which also come with a condom) donated to various AIDS organizations.

Nancy Mahon doesn’t consider herself a glamour girl, but she believes in the power of lipstick — Viva Glam shades 5 and 6 in particular. Mahon is a senior vice president of MAC Cosmetics and executive director of the MAC AIDS fund, which last year donated $20 million to programs in 57 countries, including South Africa, the Caribbean and the United States. The non-profit program makes MAC the third-largest corporate donor to AIDS-related causes, and is funded entirely by sales of MAC’s Viva Glam lip products.

Unlike other business philanthropy models, 100% of the $14 suggested retail price tag for each lipstick goes to the AIDS fund — even retailers are expected to forgo their margin, Mahon noted at a recent Wharton Leadership Lecture. She told students that it is important for a company not only to be good at business,but also to treat employees well, conduct business responsibly and behave as a good global citizen. “It’s one thing to sell lipstick,” Mahon said one associate told her. “It’s another to sell lipstick and make a difference. ” The company chooses the Viva Glam celebrity faces based on their ties to the cause.

So far, the biggest success in terms of sales has been former Baywatch star Pamela Anderson, in part because the actress was so open and honest. “She got up and said, ‘I have hepatitis. No one should be ashamed of getting an illness. ” Since the fund’s inception, the company has given more than $128 million to various AIDS-related projects, including $4. 5 million for a prevention and treatment initiative in the Caribbean, $100,000 for a needle exchange program in Washington, D. C. , and almost $200,000 for a prevention and education project aimed at youth living along the Mexican border who are at increased risk of infection.

The commitment to the cause keeps the company’s customers coming back for more MAC products — and employees from leaving, said Mahon. “The average [employee] retention rate in the industry is 30% and we have an 80% retention rate,” Mahon noted. “When they’re asked why they stay, one of the top reasons is the AIDS fund. ” Customers, too, pay attention to the beliefs behind the corporation, she said, citing a study that found that Ebay purchasers were willing to pay up to 8% more for an item if they believed in the cause the money supported. “Customers care that you do good in the world. Recently, M. A. C. introduced the “Kid’s helping Kids” which, with the sale of greeting cards, painted by the kids, will be donated to pediatric organizations. The M. A. C. PRO Program is provided to professionals in the industry. An annual fee must be paid for this service. Cosmetic professionals and students receive discounts on purchases. M. A. C. Cosmetics was initially distributed among friends only in the fashion industry and till today M. A. C. does not ever have to conduct any kind of advertising, and yet all the same succeeds in bringing in the customers and make a great deal of sales.

This is all credited to word of mouth publicity and celebrity endorsements, which usually includes models, pro make-up artists and actresses. M. A. C. Cosmetics are endorsed by celebrities like Diana Ross, Elton John, Boy George, RuPaul, Kd Lang, Sandra Bernhard, Raquel Welch, Eartha Kitt, Missy Elliott, Dita von Teese, Mary J. Blige, Pamela Anderson, Fergie, Christina Aquilera, Cyndi Lauper, Lady Gaga and more. “I have always resented the image of the nineteen-year-old beautiful blonde, white model being shoved down people’s throats. ” To prove the point, M. A. C. ’s first spokesperson was drag queen Ru Paul. M. A. C. has broken the traditional industry way of selling product,” says Toskan. Toskan and Angelo’s business model relied on a formula of low prices and word of mouth, no advertising, and no gift with purchase promotions. “I always believed in earning your customer, not buying her,” says Toskan. Without this sales pressure, the M. A. C. people could concentrate on giving service that would keep the customers coming back. In addition to creating the beauty trends on the runway, fashion shows around the world play a critical role in the M. A. C. Cosmetics Product Development process.

Artists use this unique opportunity to test-drive product prototypes sometimes years before they reach consumers. M. A. C. Cosmetics is the official sponsor of Fashion Week in London and Sydney and supports fashion weeks in cities throughout the world including Athens, Copenhagen, Delhi, Madrid, Milan, Paris, Singapore, New Zealand, and Moscow. M. A. C. also co-sponsors Tokyo Fashion Week. Beginning in New York, M. A. C. ’s international team of over 120 PRO Makeup Artists joined by the most talented freelance artists from around the world embark on the fashion migration trail going from New York to London, Milan and Paris.

The M. A. C. PRO Teams work closely with such legendary makeup artists as, Charlotte Tilbury, Val Garland, Lucia Pieroni, James Kaliardos and Polly Osmond and play key roles in creating the makeup looks on the most famous runways in the world. M. A. C. signature cosmetics are also co branded with Hello Kitty to target bubbly younger girls attracted to use luxury cosmetic brands. Along with treating customers with respect, M. A. C. Cosmetics is also acknowledged for its recycling program. In return of every 5 products, M. A. C. gives each customer one free lipstick of her choice.

Viva Glam lipstick was introduced in 1994, and since then, the highlight of M. A. C. , is with every purchase of this lipstick or Lipglass (retail price 14 $), 100% of the selling price is donated to the M. A. C. AIDS Fund. When it comes to Public Relations, M. A. C. is very efficient and has earned their brand image. You can walk into any one of M. A. C. stores and trust me, you will get a personalized customer service. I, personally have been their loyal customer for 10 years now. The sales representatives are very customer friendly and knows their job value. They use bold PR.

That is, they make sure their clients’ messages are being heard, valued, and covered by the media. This is the most important aspect of public relations, but that goes hand-in-hand with the need to maintain strong media relationships. Editors/writers must know they can rely on them for newsworthy information and angles, to get them what they need in a timely and respectful manner. Plainly, this philosophy is what makes M. A. C. Cosmetics so successful. More significantly, M. A. C. holds parties for different occasions globally, all over the world. Thus, it naturally brings the celebrity life world and the people together under the same roof.

Customer relationship management is the ultimate goal for M. A. C. Cosmetics because they understand their customers as individuals instead of as part of a group. CRM management further enables M. A. C to design its marketing strategy and time focused customers. M. A. C. has an ultimate advantage of the customer value management and they strengthen their customers knowledge or understanding in order to provide strong support for business decision-making. M. A. C. ’s latest information technology today, enables and stores customer data and ultimately gets to know their potential customers on a personal basis.

M. A. C. does their marketing effectively and efficiently which increases their sales and customer service simultaneously. Thus, resulting in their customer intelligence strategic and tactical decision-making for support. M. A. C. ’s customer relationship management highly maintains their customer satisfaction while maximizing overall customer profit contribution. M. A. C. eventually makes a valuable customer information into customer knowledge. They emphasize on enhancing customer relationships by getting the right information to the right person, in the right place at the right time.

M. A. C. is a customer-centric company because they build long-lasting relationships by focusing on what satisfies and retains valuable customers. Knowledge management is definitely the most important for M. A. C. to build better relationship between customers and M. A. C. Empowerment is seen strongly as the company values each of their customers. The good interaction between the customer and M. A. C’s representatives is the foundation to develop learning and valued relationships which results in the success of M. A. C. into a lasting and a profitable one. M. A. C. ocuses strongly on touch points too, making sure their customers understand and communicate with them. Wholesale M. A. C. online is a very popular touch point for customers since they can evaluate and purchase products. M. A. C. knows their target individual customer needs and wants and have succeeded in profitability with their potential customers for lifetime. When the product and time are both valued, then M. A. C. respectively earns their brand loyalty. Women love to beautify themselves using the best cosmetics for an affordable price, so M. A. C. does their best to influence consumers buying decisions for a lifetime with no regrets.

M. A. C. Cosmetics have a potential market for the buyers offering an affordable prices for all ages, sexes, races, gender and socio-economic groups. Their target market or target audience is the market segment which their product is marketed to globally. M. A. C. ’s market targeting is the process in which the intended actual markets are defined, analyzed and evaluated just before the final decision to enter is made. M. A. C. targets its market, which is their strategic approach to creating a marketing mix for a specific, targeted market segment and set of buyers.

Therefore, it leads to the company’s success. The beauty of M. A. C. ’s target marketing is that it makes their promotion, pricing and distribution of M. A. C. ’s products and services easier and more cost-effective. Target marketing provides a focus to all of M. A. C. ’s marketing activities. M. A. C. Cosmetics knows who they are targeting to on the basis of demographic information because it is widely available and often related to consumers buying and consuming behavior on bases of age, gender, income, ethnic background and family cycle.

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