CHAPTER 7: BUSINESS MARKETING

M.A.C Cosmetics markets its goods and services to both individuals and organizations. In the early development of the company M.A.C make-up was made purposely for professional make up artists to with-stand rigorous wear of make-up for models during photo-shoot and fashion shows. Now M.A.C markets to women of all ages and ethnicities.
Over-deliver- M.A.C Cosmetics delivers to fashion companies and modeling agencies in ways that exceeds their customer expectations. In marketplace where most companies promise and under deliver M.A.C cosmetics is the opposite. For example, if when they promised 100 cosmetics products, they deliver 120 products.
Volunteer– M.A.C extends themselves to help people especially children with HIV/AIDS learn the importance of helping others through the program called Kids Helping Kids, in this program the children use there creativity to draw pictures which are later use or made into greeting cards. 
The revenue derive from the sales of the greeting cards is used to help with the treatment of the children's diseases.
Managing M.A.C Cosmetics brand - In today's digital world, there are thousands of places people can find information about M.A.C Cosmetics company.they make sure that the information people find is accurate. In today's digital world M.A.C Cosmetics makes it important that they are being properly represented everywhere online.
Advertising Viva Glam- M.A.C uses celebrities such as Nicki Minaj, Ricky Martin and the like to promote Viva Glam product line. These products were used to fund M.A.C AIDS Fund which was put in place in 1994 to help people affected with HIV/AIDS all around the world.

CHAPTER 8: SEGMENTING AND TARGETING MARKETS

M.A.C. Cosmetics caters to its target  market by offering products at affordable prices for all ages, sexes, races, and socio-economic groups. Their target market or target audience is the market segment which their products are marketed to globally. M.A.C.’s market segmenting is the process in which the intended actual markets are defined, analyzed and evaluated just before the final decision  is made. M.A.C. targets its market, with  their strategic approach of creating a marketing mix for a specific market segment and potential  buyers. Hence, the company’s continuous rising success. M.A.C.’s target market  adheres to the company's promotion, pricing and distribution of M.A.C.’s products and services. Target marketing provides a focus to all of M.A.C.’s marketing activities. M.A.C. Cosmetics uses demographic information as the basis to target their market within the ages of 18-49 because it helps them meet the needs of their consumers of  age, gender, income, ethnic background and family cycle

CHAPTER 11: DEVELOPING AND MANAGING PRODUCTS

 

M.A.C. Cosmetics introduces new collections as often as possible during seasons and for promotion. The inspiration for the creation of  new product comes from many sources, including customers, employees, distributors, competitors, vendors, research and development and consultant. M.A.C. Cosmetics new Winter 2012 collection is made up of products such as the taste temptation, which includes eye shadows, eye liners, lipstick and lip stain in blue and dark purple. On black Friday M.A.C also developed a product called Grey Friday, which is a dark grey lipstick and grey nail polish. Their Holiday 2012 products range from makeup bags, to eyes and face products that come in fun and exculsive packaging with mirrored compacts. The holiday collection also includes collectable limited-edition sets packaged in a chic and reusable M.A.C. Holiday kits. M.A.C. has grouped its most seeked after products such as brushes, eye shadows and lipsticks  into single set hloiday pakaging at affordable prices.

 

CHAPTER 16: INTEGRATED MARKETING COMMUNICATION

M.A.C. Cosmetics uses personal selling and sales promotion as a way of communicating with potential buyers and customers. They inform, engage, and persuade their target market as well as remind customers of new and existing products by word of mouth. M.A.C. has a total competitive advantage in the cosmetics market, and are recognized by their target market  world wide. There is no media advertisement, and some  people are not aware of the products and its advantages. The company also lacks promotional campaigns which could be inviting to potential customers and buyers. M.A.C. uses celebrities as representatives of the brand, which causes a lot of attraction to the company. The vast selection in makeup as opposed to other brands catering to women of all color is one of the company's advantages. M.A.C also organizes fashion parties where both celebrities and customers as well as potential buyers can interact, increasing their publicity. The highlight of M.A.C. is their personal sales promotion which stimulates their immediate increase in demand. Their employees are professionals who offer the best personalized customer service. M.A.C. believes in interpersonal communication, which is a direct face to face interaction when dealing with customers. Research shows that sales promotion and personal selling yields faster demanding sales. M.A.C. cosmetics customer service is a well paid for communication with customers that leave them satisfied and coming for more.

CHAPTER 10: PRODUCT CONCEPT

M.A.C. stands out for their personalized customer service. Different cultures favor brand name for their quality product and research has shown consumers do not mind paying a higher price to purchase M.A.C. Cosmetics which being a product line of Estee Lauder, is priced higher than the average drugstore cosmetics but consumers are aware of the higher quality they are paying for. M.A.C.'s product line ranges from eyes, face, lips, mineralizers, skincare, fragrances, brushes, nails, kit essentials and accessories. Over the last 10 years, 160 shades of lipsticks in 7 different finishes, 150 eye shadows, 60 blushes and hair care have been created for the public. M.A.C. is a global brand product and it is well-recognized outside its home base of customers, and has publicly available marketing. Repeat sales takes place in M.A.C. since, the consumers have known their own favorite brand M.A.C. and are satisfied, they wish to buy again and avoid those they do not.

CHAPTER 18: SALES PROMOTION AND PERSONAL SELLING

Personal selling is one of the oldest forms of promotion. M.A.C Cosmetics follows this strategy and stands out as the world's largest make up company. Through the execution of  make up tutorials by employees to customers, there is excellent communication which increases sales. M.A.C. focuses on developing a relationship with customers and potential buyers with the objective if making a sale. In terms of sales promotion, M.A.C. Cosmetics uses incentives like display of items, exchange offers, fashion shows, magazines, and the like to attract customers. With its "back to M.A.C" program, M.A.C. promotes recycling  by allowing customers to bring back six empty product containers for a free lipstick of your choice. The WAD promotion doubles M.A.C.'s usual philanthropic commitment, directing 100% of sales to the M.A.C. AIDS FUND.

CHAPTEER 17: ADVERTISING AND PUBLIC RELATIONS

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

CHAPTER 15: RETAILING

 

M.A.C is one of the most famous cosmetic retailing stores nationwide. M.A.C was a independent retailer it was first introduced to famous make-up artist  became a franchise when Estee Lauder decided to buy it over to widen its cosmetic line. M.A.C provides their customers with in-store retailing and non store retailing. Online retailing for M.A.C has increased dramatically due to the fact that most of M.A.C consumers have been with M.A.C since it was introduced to the public, so consumers trust that they are getting what the pay for just as if they were to visit the stores themselves.

M.A.Cs' first retailing mix of products attracts consumers by using celebrities to promote their products through high organized events to promote their product and to introduce a new product to the line. By staying in the spotlight, M.A.C observes fashion trends to influence the next product.

Since M.A.C cosmetics is influenced by fashion forward movements, M.A.C cosmetics open locations in countries that are fashion forward such as Italy, china and Canada. They open in major cities where the company can be exposed to high profile people, then slowly by word-of-mouth strategy, M.A.C is exposed to the locals, offering M.A.C products at affordable prices for the working class. Customer service is the eye catcher for M.A.C when selling its products. M.A.C allows its customers free make overs when the visit the stores for a celebrity treatment experience and will even give away product sample to allow the customer to use M.A.C at home to see that the product are truly easy

CHAPTER 6: CONSUMER DECISION MAKING

Consumer decision making is characterized by the individual, his or her cultural and social values and the willingness to make a purchase. In purchasing M.A.C. Cosmetics products a consumer uses a five stage decision making process. First the consumer must be triggered by M.A.C. products through their own personal usage, recommendation of others, advertisement and or packaging. Consumers may need to research M.A.C. Cosmetics either by using the internet, seeking information from a product user or by going to the store and asking for information about the products. This process fall under the external information source. Makeup Art Cosmetics, abbreviated M.A.C. is a way of narrowing alternatives and making it the ultimate choice. For first time users and customers of M.A.C. Cosmetics, their postpurchase behavior shows their satisfaction with their purchase.

CHAPTER 5: DEVELOPING A GLOBAL VISION

M.A.C. Cosmetics is a multinational corporation engaged in international trade beyond exporting and importing. Sold in over 70 countries worldwide, M.A.C. is the world's largest makeup company. Its global vision, M.A.C. AIDS FUND helps promote M.A.C. Cosmetics in other countries such as China. The prices of  M.A.C. products vary from country to country. M.A.C's variety in makeup caters to different ethnicity and cultures around the world, making them accessible to all.

 In China, M.A.C. developed Hello Kitty brand that fosters to help people affected with HIV/AIDS. M.A.C. created a line for Asian culture by making vegan based products and using henna ( a plant used to dye hair and create designs on the body), with products such as lip stain, eye shadow, nail polish and the like.

CHAPTER 4: THE MARKETING ENVIRONMENT

M.A.C. Cosmetics markets to mostly Generation X and Y; where Generation X includes people with their careers launched and families started, and Generation Y ranging from college students to kids in their teens. The company caters to all ethnicities which sets it aside from its competitors, hence making M.A.C. A multiculturalist company. These consumer are creative, innovative, spontaneous , and love to spend money on themselves, especially since they have little to no responsibilities. With a change in the social environment in the USA today, women have unprecedented financial power. This is an advantage for M.A.C. since majority of  theirs sales comes from women. M.A.C. Cosmetics uses technology to such as the Internet to market their products efficiently. The creativity and product lines on the cite has generated profits for the company.

CHAPTER 3: ETHICS AND SOICAL RESPONSIBILITY

M.A.C. Cosmetics is a great example of a company that practices corporate social responsibility.Their products are not tested on animals which make them "cruelty-free". The packaging of the products mainly made from glass and plastic are recyclable. M.A.C.'s programme "Back-to-MAC", encourages customers to bring their empty containers back to the stores. Customers are given a free lipstick of their choice with the return of six empty containers.

 M.A.C. Cosmetics supports the fight against AIDS around the world through a charity M.A.C. AIDS FUND, founded in 1994. The product line ViVa Glam is solely dedicated to fund the charity.The funding goes directly to care, prevention and global communities that assist those fighting HIV/AIDS. ViVa Glam consist of lipsticks and lipgosses of various shades. Celebrities such as Nikki Minaj, Lady Gaga, Ricky Martin and the like, have also contributed to make ViVa Glam, the most sort after product line in M.A.C. Cosmetics with their own special touch. M.A.C. Cosmetics is currently the leading non-pharmaceutical corporate fundraiser for HIV/AIDS worldwide and has raised over $224 million dollars to date. 

In 2002, M.A.C. began to offer "Good Spirits" makeovers to communities. The makeovers are free and desinged to teach poeple living with AIDS basic make-up skills that make them look and feel gooddespite their conditions.

CHAPTER 2: STRATEGIC PLANNING FOR COMPETITIVE ADVANTAGE

M.A.C. Cosmetics' objective is to offer high quality, innovative products to meet the needs of all races, ages, and gender. To become a global brand and share the philosophy of  M.A.C. around the world, by staying ahead of fashion trends and to consistently deliver trusted creativity. Viva Glam Lipstick is a collection that raises funds for M.A.C.'s AIDS FUND charity for men, women, and children with HIV/AIDS. 

M.A.C. Cosmetics has several collections for its product line, with intriguing names usually for a limited time only:

OFFICE HOURS is a collection which features M.A.C. Pro Longwear formulas, with the notion of staying glamorous when working full time, and over time without the makeup fading.

STYLE SEEKERS is a fall collection with vivid color influenced by the spirit and style of a global wanderer. The collection features four different shades of eye shadow, lipstick, blush and nail lacquer.

HAUTE AND NAUGHTY TOO BLACK LASH is a legendary mascara that comes in an intense shade of black, it can be defined naturally or full of drama.

these are a few of the new collections from M.A.C. displayed on their website and in stores. 

M.A.C. differentiates its makeup from its competitors Clinique, L'Oreal, etc. by offering large selections in color and texture, artistry professional quality products like brushes, hold, and final look. The company's target market primarily consists of consumers within 18-30 age category. Usually outgoing, confident, media savvy, fashion lovers that are seeking a unique look without compromising the latest fashion trends.

M.A.C. products have simple packaging made of plastic or glass with the company name on it. The products have straight forward names and trend setting colors which depict eye catching, chic, stylish, and high profile makeup. M.A.C. Cosmetics have minimal locations with displays of all the products (open tester units) available for use by customers with the help of professional makeup artists. Products can also be found online with detailed descriptions on each item and tutorials on how to use them. The brand commands premium prices because of good quality products and innovation customers desire. M.A.C. is a testimonial brand of cosmetics relying solely on word of mouth advertisements via fashion shows implications, celebrities and customers. M.A.C.'s Viva Glam lipstick is the only advertised product, usually a high profile event involving A-listers.

CHAPTER1: MISSION STATEMENT

                                                     "ALL RACES, ALL SEXES, ALL AGES"
       To be the world's leading make-up authority among professional make-up artists and consumers.

CHAPTER1: BRIEF HISTORY OF M.A.C. COSMETICS

MAKEUP ART COSMETICS INC., commonly known as M.A.C. Cosmetics is a popular high-end makeup brand that markets to women of all kind. It was founded by Frank Angelo  and Frank Toskan in Toronto in 1984. M.A.C. Cosmetics was created to withstand the rigorous wear during a photoshoot, since at the time it was used mainly by makeup artist for celebrities.M.A.C. Cosmetics launched an AIDS Fund known as M.A.C. AIDS Fund in 1994 to support people affected by AIDS/HIV. Estee Lauder acquired M.A.C. Cosmetics a year after the death of Frank Angelo in 1998. Now M.A.C. Cosmetics is used by women globally and the brand is exculsively sold in department stores and on the Web.