Mac Cosmetics Research Paper

Founded by Frank Toskan of Canada in 1984, Makeup Art Cosmetics company is one of the few companies which has used innovative PR and unconventional marketing to create a niche for itself without spending millions of pounds in advertising. The company began by giving away their cosmetics to makeup artists that worked with top models and actresses. MAC developed products that helped artists achieve the right look for stage lighting conditions. It is one of the few brands on the market which has colours to match every skin tone and colour.

Working on a simple all encompassing Brand Positioning of Makeup for All ages, all races, all sexes, its brand values project MAC Makeup as attitudinally hip, artfully irreverent, dedicated fully to the art of self-decoration and the realization of the Individual. The brand personality is cosmopolitan, innovative, irreverent, Original, which has almost created a Cult like following. Loved by women of all ages, it is one of the few fashion brands which truly transcend age. (Viral Marketing, November 9, 2007). MAC fits into the classification of consumer products known as “shopping products”.

A shopping product is usually more expensive than a convenience product and is found in fewer stores. Consumers usually buy a shopping product only after comparing several brands or stores on style, practicality, price and lifestyle compar-ability. They are willing to invest some effort into this process to get the desired benefits. There are two types of shopping products: homogenous and heterogeneous. MAC is a perceived as a heterogeneous product because consumers perceive it as being essentially different – for example, furniture, housing, clothing and universities. ( MKTG 200 – Student Edition, 2013. Lamb/Hair/McDaniel)

As one of the 25 individual cosmetic brands that are owned by Estee Lauder cosmetics, MAC varies in use and performance and meets the needs of specific market of women with its products. (MKTG 200 – Student Edition, 2013. Lamb/Hair/McDaneil). From the very beginning the marketing strategy was to created makeup for makeup artists for fashion, movies and theatre. Endorsement through word of mouth was generated by giving away cosmetics to makeup artists who worked with top models and actresses in the early years of the Franks venture.

The early adopters are still what gives MAC its solid foundation in the industry. As well over the years, MAC has built a reputation for itself by unconventional and innovative marketing, breaking away from the safe and obvious. This is where they captured the industry professional as well as the upwardly mobile woman who loves fashion and looking good. Through the maturity stage, MAC has transitions beautifully and marketing its brand where it is accepted and loved by women from all social and economic classes. They have a keen sensitivity to pop culture and helps to guide what they do.

Since its philosophy is to create makeup for all ages, sexes and races, it has never shied away from affiliations with controversial artists and personalities that are known the world over (Love to Know Makeup. Michalak, Jodie. www. lovetoknowmakeup. com). MAC is currently in its maturity stage. It is a well received brand that is currently expanding its product presence into other countries outside of the United States. Many of these countries are impoverished, such as Nigeria, but it has not stopped MAC from going against what is considered to be normal to create new clients and expand its market.

Because the North America market has been struggling, they felt it was wise to take chance out of the country to capture new markets (Coleman-Lochner, Lauren. 2013). MKTG 200 Paper #3 – Place Strategy Place, or distribution, strategies are concerned with making products availanle when and where customers want them. A part of this P – place – is physical distribution, which involves all the business activities concerned with storing and transporting raw materials or finished products. The goal is to make sure products arrive in usable condition at designated places when needed. (MKTG 200 – Student Edition, 2013.

Lamb/Hair/McDaniel). MAC uses distinct placement strategies to distribute its product. MAC Cosmetics intensive distribution takes place at mainly all MAC Pro stores, major department stores or international perfumeries, (Nordstorm’s, Dillard’s, Macy’s, Bloomingdales, Neiman Marcus). This allows them maximum coverage and keeps the product available in every outlet where the potential customers might want to buy it. If buyers are unwilling to search for a product, it’s very accessible. They accomplished this by placing it in the types of stores that their target market frequents. (MKTG 200 – Student Edition, 2013. Lamb/Hair/McDaniel).

The only difference between the MAC Pro Stores and the department store counters is the variety of products that are available. Because MAC was first created to cater to the needs of the make-up industry professionals, it’s lines within the PRO stores cater to those needs. There you will find, pigments, palettes, some primers, air brush machines along with old and new limited edition items that are specific to their store and will not be found at the department store counters. This is the only distribution that MAC uses.

They do not use wholesalers, and although many inquire about becoming a wholesalers, they currently only use the aforementioned type of placement for their products. ( MAC Cosmetics Frequently Asked Questions. www. maccosmetics. com) The retail classifications that MAC uses are department and specialty stores. The department stores carry a wide variety of shopping and specialty goods, including apparel, cosmetics, housewares, electronics and sometime furniture. Macy’s, Nordstrom’s, Neiman Marcus, and some of the larger US department stores that carry MAC. On an international level they are carried in perfumeries.

(McKelney, Lauren. www. wordpress. com, April 30, 2012. MAC Promotion Proposal) (MKTG – 200, 2013. Student Edition. Lamb/Hair/McDaniel) After much research I was unable to find the shipping information for MAC. I do know that currently they are unable to ship cosmetics out of the United States to foreign countries and they ask that clients go to the stores nearest to them in their country. Outside of the stores, MAC has a strong on-line presence with clients purchasing products. You can ship same day, next day, two day or just standard mail which takes up to 5-7 business days. These products are all shipped within the US.

The cost of the shipping depends on how soon you want your product to arrive and can range in price from $5. 00 to $17. 00 for product ranging in price from $0-$50 USA dollars. A standard package over $50 US dollars is free and is minimal cost for same and next day service. (MAC Cosmetics. Shipping & Handling Fee, 2013. www. maccosmetics. com) MAC ‘s distribution process has worked very well for the company over its 29 year existence. Customer service is there #1 concern, and not just selling the products to women, but making sure they know how to confidently wear them, and wear them well.

The make-up artist at the counter is their most valuable asset, the president of the company will brag. It is there one on one approach to the customer that has made it a company that is demanding to be noticed both in and out of the United States. (Estee Lauder News. Company Newsletter, 2013. www. esteelaudernews. com)

Works Cited

  • McKelney, Lauren. www. wordpress. com. April 30, 2012. MAC Promotion Proposal.
  • Belacel, Amel. ISSUU. MAC Cosmetics Brand Analysis.
  • Viral Marketing. www. viralmarketing. com. November 9, 2007
  • MKTG 200. Student Edition, 2013. Lamb/Hair/McDaniel. Page 214, 234-235.
  • Michalak, Jody. Love to Know Makeup (website) Company History MAC Cosmetics.
  • Wikipedia, the free encyclopedia. MAC Cosmetics.
  • Coleman-Lochner, Lauren. (March 21, 2013) Bloomberg Businessweek. With MAC, Estee Lauder Enters Emerging Markets
  • Estee Lauder News, 2013. Company Newsletter. www. esteelauder. com. Daphine Whitfield MKTG 200 – Papers 2 & 3 Professor Rich Lewis September 24, 2013
  1. MAC is sold in 66 countries across the globe in 1000 outlets.
  2. MAC’s founder says “I don’t have the luxury of communicating with my clients, so therefore my salespeople are the link between my philosophy and their customers. “This is the reason why MAC assistants on shop counters are trained to advice customers on makeup techniques, formulas, and latest trends.
  3. MAC is present in 53 stores across UK out of which 8 are MAC’s flagship stores proving the fact that the brand pull is so strong that consumers flock these few stores to buy MAC cosmetics giving it a cult like following. So when a mass market brand like L’Oreal or a premium brand like Clinique spend millions on advertising, a brand like MAC does it all by inspiring its stakeholders in non intrusive and subtle ways without spending a fortune on advertising.

In 1994 MAC started retail industry’s first charity called MAC AIDS fund. In 1994, Mac was one of the first to bring charity to retail sector. They started MAC AIDS fund for men, women and children affected by AIDS. The same year they launched VIVA GLAM lipstick. MAC decided that every cent of the selling price of the VIVA GLAM lipsticks would go to the M·A·C AIDS Fund. VIVA GLAM’s first lipstick was red in colour which symbolizes the fight against AIDS/HIV throughout the world.

With a total of six shades of Viva Glam lipstick and two shades of Viva Glam ‘lipglass’ now sold worldwide, and through the annual Kids Helping Kids Card Program, M·A·C Cosmetics has provided over $95 million (US) to date for the M·A·C AIDS Fund. MAC pays for the ads and its production, the packaging, the shipping and of course their lost profit margin out of their own pocket. It worked wonders for the MAC brand as the offer was refreshingly straightforward “Every cent of the selling price of MAC Viva Glam Lipstick and Lipglass is donated to the MAC AIDs Fund to support men, women and children living with HIV and AIDs.

”MAC holds Viva Glam gala and fundraiser annually to raise funds for its charity and VIVA GLAM lipstick has become one of the fashion world’s most glamorous and successful fundraising initiatives of all time. From the beginning the brand has targeted the premium segments with its pricing. Regular introduction of new trendsetting ranges and colours kept the excitement alive like the latest one is ‘Antiquitease’ inspired by antique look. MAC has done some Periodic ads featuring unlikely celebrities such as flamboyant entertainer RuPaul and Elton John.

In 1995,RuPaul was signed to a modelling contract for MAC cosmetics, making him the first drag queen supermodel. M. A. C has never shied away from affiliations with controversial artists. PR strategies used by MAC: Apart from traditional media, MAC regularly gives out new launched products to be reviewed by various beauty websites and beauty blog owners which is one very powerful SEO tool and increase the credibility of the brand. A few examples are as below: http://beautybanter. blogspot. com/2007/10/praying-to-god-of-mac.

html Off late MAC has started heavy usage of PPC advertising. Search for cosmetics or any beauty related term on the Internet and you can see MAC all over the Internet. Marketing Tactics used by MAC over time:

  1. Halloween: 25 different looks for Halloween—from ghoulish to feminine to downright scary— highlighted on its Web site,Maccosmetics. com and at all M. A. C. counters.
  2. Back to MAC: “Because we share your commitment to the environment, M·A·C accepts returns of its primary packaging through the Back to M·A·C Program. By returning six M·A·C primary packaging containers to a M·A·C counter or M·A·C Cosmetics Online, you receive a free M·A·C Lipstick of your choice as our thanks to you.
  3. Barbie colours cosmetics line of cosmetics: MAC has teamed up with Mattel to launch a Barbie line. The line is intended for adults, and comes with its own limited-edition MAC-themed Barbie doll
  4. Temporary websites dedicated to a particular new launch like http://www. barbielovesmac. com/
  5. BoomBox – BoomBox is London’s first free for all Fashion Club in East London.

BoomBox isn’t serious, posey or full of egos; it’s fun, inclusive and unpretentious club unlike fashion which is meant to be exclusive. The fashion ethos at BoomBox is simple: if all else is luxury brands, don’t try and compete – be different, be brilliant on your own terms, create something out of nothing and feed off the sense of community surrounding you. Its frequented by fashion celebrities and is said to have revived London’s fashion scene and London Fashion Week. MAC has tied up with it in smart way by selling MAC and BoomBox co-branded T-Shirts. Team 4: MAC Cosmetics.

MDSE 3850 Promotion of Apparel and Home Furnishings Promotion Campaign Report 1. Executive Summary: This promotion plan for MAC Cosmetics seeks to improve the innovative promotions that MAC is already implementing and add new ideas to the mix. The overall goal of the plan is to get MAC to its full potential through the use of fresh advertising and marketing techniques that will fully showcase the company’s many unseen strengths. The MAC brand has many different opportunities in its current field and target market and can be further pushed to its entire capability to achieve a wider range of consumers.

Other opportunities for MAC include using new forms of advertising to reach new cohorts of consumers, showing how MAC can transition from a daytime look to a nighttime look, and, of course, implementing most of MAC’s current promotions in a new and improved way. MAC’s new promotion plan will use its current strengths to its advantage and help redirect the brand so the strengths do not pose any sort of threat to its overall success. MAC’s competitors range from drug store makeup brands to higher end, more luxurious brands. MAC’s position relative to its competitors is extremely important to the future of the company and its promotions.

MAC has always been seen as a more expensive and more avant-garde brand. Through this new promotion plan, the company will be repositioned to reach more consumers that might have been scared to try MAC products due to its perceived extravagance. The target market for MAC Cosmetics will experience some changes with this new promotion plan as we strive to include a more conservative, mature consumer. While redirecting this brand, the plan will work to keep the original target market by simply using tactics to appeal to a broader range of individuals.

The new promotion plan for MAC will focus on print advertising, direct mail, and interactive advertising. The plan is to focus on MAC’s current promotions and further develop these ideas into successful marketing tactics. This new plan will add a new look to the print advertisements that MAC is already executing, send out direct mail-outs to customers to develop more brand loyalty and appeal to new consumers, and introduce the concept of interactive media to the brand through smart phone applications, interactive store kiosks, and mall events.

Preliminary Research:

Current Marketing Plan

Frank Toskan founded MAC Cosmetics in 1984 (“The MAC Cosmetic,” 2007). He was a photographer from Canada who wanted to invent a cosmetic product that was more artistic and achieved the right look for stage lighting conditions. The cosmetics company is one of the few brands on the market that has colors for all skin tones. MAC has created over 160 lipsticks and 150 eye shadows to date, while also creating limited edition lines (“The History behind,” 2006). According to Viral Marketing “The Brand personality is cosmopolitan, innovative, irreverent, original, which has almost created a Cult like following.

Loved by women of all ages, it is one of the few fashion brands which truly transcend age (“The MAC Cosmetic,” 2007). ” MAC’s current promotion plan is to portray this personality to their niche market through word of mouth, which Toskan did so by giving the products to top notch make up artist who work with models and actresses. Through this MAC has built a well-known reputation for itself with using very little advertising. In 1994, once MAC’s name had become better known, MAC started a new charitable promotion plan, the MAC AIDS Fund.

MAC was on of the first to bring charity to the retail sector. MAC started this with their new line VIVA LA GLAM, which was a lipstick where every cent went towards men, women and children fighting against AIDS. The first lipstick was the color red, which symbolizes the fight against AIDS throughout the world. MAC has always used celebrity endorsements to advertise for VIVA LA GLAM. Currently they have been using Lady GAGA for their advertisement, GAGA is a women who has struggled with her sexuality, hence why she is the perfect person to represent for the MAC AIDS Fund.

MAC has provided $128 million dollars towards the MAC AIDS Fund, while paying for their own advertisements, packaging, and shipping out of their own pocket (“The History behind,” 2006). MAC also gives back to the community by being environmentally friendly through their BACK 2 MAC campaign. The BACK 2 MAC campaign helps the environment by encouraging consumers to recycle their old cosmetic containers. When a consumer returns six of their old MAC containers they will receive a free lipstick of their choice.

The BACK 2 MAC campaign is not only helping out the environment but also giving their customers an opportunity to try out a product that they might not necessarily buy with their own money. MAC is sold in 66 countries around the world and in 1,000 outlets (“The MAC Cosmetic,” 2007). MAC is considered a high quality cosmetic company, selling their products in a higher price range. With their average pricing ranging anywhere from fifteen to twenty dollars for their basic make up, and for a more high end products it can price much more than that. MAC products are often sold in more high-end malls generally having their own stores. If you were to see MAC in a department store it would be a more luxurious department store such as Nordstrom and Dillard’s.

Target Market Analysis Since

MAC was founded as a product made for an artistic community based off of stage lighting, it is geared towards more of a niche market segment. MAC is a cosmetic company meant for all ages, sexes, and races. But when said that it is meant towards all ages, sexes, and races it is not always meant for your average everyday makeup. It is targeted to the more artistic person, who is daring to be different and innovative.

As stated earlier in the paper, MAC is a more “cult” like culture. Their products are more vibrant and out there, which is meant for a very small segment in the cosmetics market. MAC doesn’t attract the consumer who is looking for cosmetics that they could wear to work or school, they attract the consumer who is artistic and independent in their life style. While MAC does have it’s charitable organizations through MAC AIDS Fund and BACK 2 MAC to draw in consumers who are willing to give back to their community while also doing something for themselves.

MAC doesn’t advertise these organizations well enough to bring in new consumers who are looking for a cosmetic company who gives back, it is more known to their already existing consumers and that is what MAC wants to achieve through this promotional campaign, to broaden MAC’s customers. They have a strong customer loyalty through their existing consumers, but MAC needs to draw in new consumers. The way to do this is to change their promotional strategies and use more than just word-of-mouth.

Situational Analysis

Internal Factors

MAC’s current promotion campaign consists of word-of-mouth, magazine ads, online videos, celebrity endorsement and partnerships with other brands. ”M. A. C spends merely $7,795. 8M on advertisement each year, which is nothing compared to what other cosmetic companies spend for advertisement, estimated at 2. 7 billion yearly (Lootawan, 2010). ”MAC relies on word-of-mouth and letting loyal consumers spread their love of MAC Cosmetics. “M. A. C word-of-mouth promotional strategy helps M. A. C cosmetics promote itself by “letting the brand speak for itself.

This particular strategy has been used by M. A. C since it was first introduced to famous celebrities, which allowed M. A. C to be exposed to the public and become one of the most famous cosmetic lines today (Lootawan, 2010). ” MAC uses celebrity endorsements in almost all of their magazine advertisements. “M. A. C is well-known because of the celebrity exposure it gets from high rank clientele. ” Some of MAC’s current celebrity endorsements include Lady Gaga, Boy George, Fergie, Cyndi Lauper and many more (Celebrity Endorsement Ads, 2011).

MAC is very successful at promoting its cosmetics through social media like Facebook, Twitter and Youtube. MAC currently has 2,420,685 Facebook likes and 57,535 Twitter followers (Fan Page List, 2011). MAC Cosmetics Youtube channel consists of promotional videos featuring celebrities as well as how to videos from MAC makeup artists (MAC Cosmetic’s Channel, 2011). MAC has also had successful promotions through creating product partnerships with other brands such as Hello Kitty, Barbie, Wonder Woman, Lilly Pulitzer and Alice + Olivia (Temptalia, 2010). SWOT Analysis STRENGTHS:

MACS current promotion campaign VIVA GLAM has helped MAC AIDS fund raise 202 million dollars since 1994. MAC promotes its products to all ages, sexes and races by using endorsements from different celebrities like Lady Gaga, Boy George, Lil Kim, Pamela Anderson, Johnny Weir, Missy Elliot, Fergie and many more. MAC has made itself really well known by using bright flashy advertisements. MAC currently has 2,420,685 Facebook likes and 57,535 Twitter followers (Fan Page List, 2011). WEAKNESSES: MAC only advertises their products online and with magazine ads, not utilizing other forms of promotion.

MAC primarily uses extreme makeup in their advertisements, which doesn’t attract a broad audience of people. MAC doesn’t promote their BACK 2 MAC recycling program very well and many consumers don’t know what it is. MAC primarily focuses their promotions on their VIVA GLAM line of products and not all of the other lines they carry. OPPORTUNITIES: By using other forms of advertising, such as direct mail, kiosks and a phone application MAC will reach more consumers. By informing consumers about the BACK 2 MAC program MAC will recycle more used containers and get more consumers shopping in their stores.

By showing advertisements with day time makeup looks MAC will attract more conservative women who want to wear their makeup to work and out at night. By using other celebrities like Jennifer Aniston who aren’t as flashy as MACS current endorsers MAC will attract the consumer who wants to wear her makeup a little more modestly. THREATS: By using multiple advertising outlets MAC could possibly over saturate their consumers with too many advertisements.

By showing how MAC makeup can be used for daytime looks consumers may too closely compare MAC to other makeup brands such as Covergirl and Clinique. By providing direct mail coupons customers may only buy MAC products with coupons or during sales promotions and not at full price, which could cost MAC some revenue. While giving free samples and complementary makeovers will draw consumers into MAC they may just take what is free and not make any purchases, loosing revenue for MAC. SWOT Analysis

External Factors

General Dynamics

MAC is known for taking a bold approach to cosmetics and not being timid by what the standard is to achieve beauty. They were founded as a cosmetic line for artists and that still stays true today.

The company’s dynamic reflects a daring side to cosmetics and allows make-up artists to be free of creativity and ideas. MAC has been very successful in producing a quality brand but with such an extreme dynamic look it can shy off the everyday consumer. The industry of cosmetics is various in all different types of products while marketing to all different types of consumers. Instead of taking the “matchy-matchy” approach that most cosmetic company’s do with matching the right eye shadow with the appropriate eye color, MAC used a more untraditional route (Harris, 2011).

Consumer Behavior

This industry is all about enhancing and beauty with products that make the skin more even, the eyes more radiant and the lips more luscious. Although MAC offers products that do what all the traditional make up lines do, MAC takes the meaning of beauty and mixes it with art. They advertise these traditional products in a unique way by favoring the art side by adding words like “studio” and “glamour” into their product names (Harris, 2011). Although MAC has a solid product it is seen that a softer approach would be in their benefit.

A softer approach will draw in the everyday consumer instead of having the feeling of intimidation. The consumer demands that their cosmetics boost their self-esteem and enhance their feature to help them feel more beautiful. In the narrow product category of art make up there are changes that could be an advantage to companies with this category. When advertising art make up it creates a very small target market and can eliminate possible sales. MAC should try and shy away from a narrow market and market to a more general audience.

Instead of using gallant ad campaigns with bold celebrities, maybe consider putting an average consumer in an ad to show the versatility of the products (Irosado, 2009). As it could appear MAC could use different promotion strategies to achieve this goal of relating more to the traditional consumer. The promotions that they have now are good ideas but not implemented well enough to increase revenue.

Competitors

The competitive situation of MAC is that they are limiting themselves and not using all the resources, opportunities, and marketing strategies to the best of the company’s ability. The competitors are higher priced cosmetics that are also known for a great quality and have the approachableness that MAC does not. Because this industry will always be in high demand and new products are coming out daily to fix the new thing that has become ugly, this segment is very competitive. MAC’s competitors are doing well but may be looking for a change as well.

Communication Process

Promotional Objectives

The overall goal of the promotion objectives is to increase revenue by expanding the current target market while reaching out to a new consumer with new marketing tactics.

The promotional campaign intends to add marketing by adding social media, interactive advertising, and connecting with the everyday consumer more efficiently. The goal is by the end of 2012 MAC has executed all the marketing efforts that are being created with this plan and to see results and feedback by the end of 2012. The plan is to execute brand awareness by the consumer of all the current promotion strategies like Back 2 MAC, AIDS charity, and the makeovers offered with a product purchase of fifty dollars.

To implement this plan MAC must first launch the new print ads and to send out the direct mail created to highlight these promotions. The rest of the promotion mixes will begin and to start measuring results. Results could vary by seeing if there are more conservative women walking in asking about the products to an increase in consumer wanting to use the back to MAC to their advantage. We plan to benchmark our performance by comparing sales to previous years and seeing how he consumers respond to all the new marketing efforts.

It is possible to achieve this in various ways with the promotion plan. Measurements will be taken with how many consumers come in talking about or using the direct mail to their advantage. By benchmarking the progress MAC is able to measure the results in an accurate way and see tangible improvement.

Positioning Strategy

Positioning

The MAC Cosmetics brand was founded with the intentions to market towards makeup artists in the fashion, theatre, and movie industries (“The MAC Cosmetics Story,” 2007).

In more recent years MAC has expanded to more of a mass market but still focuses on the original extravagance and innovative looks that it began with. MAC has generally focused on a price-quality positioning strategy. Through this strategy, MAC keeps product prices in a higher range to highlight the superior quality that the products offered are believed to possess (Roy, 2010). Although this positioning strategy seems to work well with MAC’s minimal marketing and advertising strategy that depends widely on word-of-mouth communication, there are some changes that would greatly increase the success that MAC is already experiencing.

If MAC were to change their positioning strategy to focus not only on its products’ superior quality through higher prices, but also on the many features and benefits offered, the company would be much more well-known and successful (Roy, 2010). With the use of positioning strategies that showcase product features and benefits, there will be much less dependence on word-of-mouth since consumers will already be aware of the many wonderful programs and special features that MAC has to offer. Through MAC’s many unique aspects and new promotion mix ideas, the company will be much more apparent and appealing in the consumer’s mind.

Instead of just hearing about how great MAC’s makeup products are, the consumer will actually be able to see, through increased promotion efforts and unique advertising, how MAC truly is superior in product quality, despite its higher prices. The repositioning of MAC will also focus on making the brand appeal to a broader market by showing how the products offered can be worn as day-to-day makeup and do not always have to be seen as extravagant. There are several possible risks involved with changing MAC’s positioning strategy and pushing it to appeal to a more conservative consumer.

As the brand seems to go more mainstream and become more visible to the public eye, it could lose some support from its original market. The new positioning strategy must take precautions as to not lose the original market by keeping MAC’s initial image in tact by simply featuring what MAC already has to offer in new and innovative ways. This shift of positioning strategy to highlight MAC’s best product features and benefits is the best move for MAC to become more prominent in the cosmetic market and is necessary for the growing success of the brand.

The MAC brand has typically been positioned as a more expensive and extremely avant-garde cosmetic company in relation to its competitors. Some of the main competitors that MAC faces include Sephora, Urban Decay, Lancome, and many others that are featured in the positioning map below (“JGlamour Makeup Brushes,” 2009). Currently MAC. seems to fall in the higher end as far as pricing goes and extremely avant-garde in style (Belacel, 2010). The consumer has generally seen MAC products as too extravagant and too innovative when it comes to style, colors, and the overall look the makeup usually is shown to create.

With new positioning strategies in place, the MAC brand will seek to appeal to more conservative consumers by showing the market the wide range of looks MAC makeup products are capable of without losing the original market’s interest. The shift in positioning strategies will leave MAC in the same place as far as quality and price go in relation to competitors, but will attempt to cover a wider range of styles to appeal to a wider range of consumers while still maintaining the edgy extravagance that captured the loyalty of the original market.

 Target Market

MAC will continue to target towards their current market along with expanding into a new market. The target consumer for the new MAC promotion campaign is the female of all races within Generation X. The target consumer ages between 30 and 50, born between 1961 and 1981 and estimated at 50 million (Dawson, 2011). These individuals grew up in tough economic times mainly in two-income families. However, during the Gen Xers childhood, parents started to divorce and the women of the household began to join the workforce.

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What you will find in this Case Study?

  1. About M.A.C Cosmetics
  2. Let’s start at the beginning?
  3. Timeline of M.A.C Cosmetics
  4. Brand Quintessence
  5. Branding Strategies of M.A.C
  6. A.C’s presence in the Social Media
  7. Facebook Marketing
  8. Twitter Marketing
  9. Instagram Marketing
  10. YouTube Marketing
  11. Content Marketing
  12. Public Relation
  13. Multichannel Marketing via Direct Mail and QR codes
  14. Mobile Marketing
  15. MACnificent Me Campaign
  16. Conclusion

About M.A.C Cosmetics

“All Ages, All Races, All Sexes”, this is the motto for one of the fastest emerging cosmetics brands in the world, M.A.C Cosmetics. M.A.C celebrates diversity and Individuality. For M.A.C makeup-artists and M.A.C users, this motto is not just words it is truly what drives the culture of this stunning Company.

M·A·C is at the vanguard of fashion TrendSetting, collaborating with leading talents from fashion, art and popular culture. M.A.C artists set trends backstage at fashion weeks around the world.

In this case study you will find every aspect of what makes MAC Cosmetics; ‘M.A.C’ being its products, its location, its brand image, or its remarkable price range is unique and goes contrary to most typical marketing methods.

Let’s start at the beginning?

Makeup Art Cosmetics (M.A.C) was established in Toronto (Canada), 1984 by the makeup artist and photographer, Frank Tosken and the beauty salon owner, Frank Angelo.

They found that cosmetic products had a little color payoff that were not performing well under the intense surroundings of studio lights & moisture. Their aim was to develop a studio line makeup line that met their professional needs.

Their first customers were Fellow makeup artists, models, and photographers. With every color, every magazine and every word of mouth their popularity grew and in 1984 a single kiosk in a department store was opened.

In 1995, the Estée Lauder Companies bought a percentage of the M.A.C and it helped the brand much in becoming global. Currently, M.A.C Cosmetics has over 1,000 locations around the world. M.A.C continues to fulfill the needs of its users by launching new categories of products frequently.

M.A.C is one of the world’s leading producers and markets of quality skincare, makeup, and fragrance and hair care products.

Timeline of M.A.C Cosmetics

Brand Quintessence

  • Product: MAC products are colorful, bold, and custom. It caters to its target market by offering products for all ages, sexes, races, socio-economic groups and also available in cutting-edge seasonal lines.
  • Environment: Backstage makeup studio, Diverse, Professional.
  • Behavior:  involves low-pressure, cooperative, expert assistance, reliable, playful.
  • Communication: Word-of-Mouth, SEO (Search engine optimization), Social Media, Print & Outdoor advertising Public Relations.

Branding Strategies of M.A.C

Product Differentiation Strategy
  • Develop different blends of pigments to match customer’s needs in the international market.
  • Develop different durability/intensity of pigments and viscosity to meet PRO versus users/ customer needs.
  • Permanence of long lasting pigments and pretty large product sizes.
  • Distinct packaging and limited edition.
Pricing Strategy
  • Consumer benefit > cost
  • Brand extensions justify premium “skimming” price
  • Multi-segment Pricing
  • Focus on customer loyalty
  • Cost of switching
  • Complementary Products
Promotional Strategies

Word of Mouth:

  • Free products for professionals, celebrities and media
  • Builds credibility, awareness

Motivating Action Communication:

  • “Back to M.A.C” – Rewarding top performers, motivating high potentials
  • CRM

Social media:

M.A.C’s presence in the Social Media

M.A.C Cosmetics was revealed as the runaway leader, leading the colour cosmetics sector due to the all-in-one integration between its social channels and brand website. It uses social media marketing in order to accomplish marketing communication and branding goals.

M.A.C covers activities involving social sharing of content, videos and images for marketing purposes. Each channel has its own unique environment and voice, its business’ core identity stays consistent.

Its objectives are:

Facebook Marketing

M.A.C promotes its latest products illustrated with beautiful swatches on Facebook. It offers information about products and promotes its events. It has 16.2 million Likes and 16 million followers on Facebook.

M.A.C specialized and has chosen its target audience specifically. After publishing its content, it never disappears but stays available to its audience. That means it consistently publishes content and participates in conversations.

Twitter Marketing

Twitter is the social media marketing tool that allows M.A.C broadcast its updates across the web. It follows tweeters in its industry or related fields, and it gained a sound stream of followers in return. It has massive 1.31 million followers on Twitter.

M.A.C mixes up its official-related tweets about specials, discounts, and news updates with some fun and quirky tweets spread. It always retweet when a consumer has something nice to say about it, and never forgets answer people’s questions when possible.

Instagram Marketing

For M.A.C, product highlights and anticipation drove immense engagement with 12.8 million followers on Instagram. M.A.C featured several images of products from a Ruby Woo dipped in glitter collection. Many of these images used filters designed to evoke a glittery feel, adding to the overall visual of the collection. One of these images earning over 44.6K engagements.

MAC, like several other names on this list, has an advantage in that its products tend to have colorful, eye-catching designs. The visual appeal of the products themselves makes them stand out in users’ feeds, with bright, vibrant colors directly appealing the eye in Instagram’s polished timeline

YouTube Marketing

M.A.C has an own YouTube channel with 360K subscribers, where it uploads make-up and campaign videos. YouTube is the number one place for creating video content, with can be an amazingly powerful social media marketing tool. MAC focuses on creating useful, instructive “how-to” videos. These videos are professional make-up tutorials.

Content Marketing

M.A.C is offering valuable information that its ideal customers find exciting. It is frequently uploading professional makeup videos and tutorials. It created a variety of content by applying social media images, videos next to classic text-based content. It links to outside articles as well. Linking to outside sources improves belief and loyalty, and it even gets some links in return.

Public Relations

Apart from digital & traditional media, MAC regularly gives out new launched products. M.A.C Cosmetics will continue to build awareness in the community by publishing articles in different Medias and educating the public. Search for cosmetics or any beauty related term on the Internet and you can see M.A.C all over the Internet.

Multichannel Marketing via Direct Mail and QR codes

M.A.C Cosmetics launched a new campaign that combines direct mail with mobile marketing. Many times, retail stores will use direct mail to reach out to potential customers or distribute rewards coupons to customers enrolled in their loyalty programs.

M.A.C took a little different approach with this recent campaign. To say thank you for recent customers, M.A.C. has created a postcard with a friendly note and a scan-able QR code. Customers can easily view a series of tutorial videos related to its products and access tips and tricks from professional makeup artists on how to make the most of their recent purchases.

Mobile Marketing

M.A.C’s new promotion campaign includes a new phone application that will make the M.A.C make-up world more accessible to all consumers who own Smartphone’s.

The M.A.C phone application has feature icons for the M.A.C shop, new products, today’s obsession, what’s hot now, and a shopping cart. By creating  M.A.C phone application customers will be able to shop whenever and wherever they are.

MACnificent Me Campaign

The MACnificent Me campaign consists of six videos. Each video includes an everyday person, who has been chosen by MAC Cosmetics to participate in the MACnificent Me campaign. The videos range from 1m 30s to 2m 30s. On the campaign website, each participant has a microsite, where photos, inspirational quotes appear along with the video.

Conclusion

The MAC cosmetics brand has experienced great success by evolving to stay significant, developing effective positioning in terms of core values, brand personality, advertisement and customer relationships as well as constantly delivering the brand promise over time.

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