M.A.C. Cosmetics

M.A.C. Cosmetics

Saturday, September 18, 2010

Week 2 - Strategic Planning 2

In the future, M.A.C. plans on opening locations in Hong Kong, the Far East, and more in Europe. Now in a joint venture with the U.S.'s largest privately owned cosmetics firm Estee Lauder, M.A.C. will distribute products in overseas markets. With each and every goal M.A.C. is soon to be destined to hit the top. 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.

M.A.C. Cosmetics follows a SWOT analysis. The name M.A.C. is actually the first letters taken from three words. "Makeup", "Art", & "Cosmetics". When M.A.C. began marketing to the professional community, their founders never wanted to exclude anyone in the public sector. It's just that there was no cosmetics line devoted exclusively to professionals and the goal of M.A.C. cosmetics was to dominate that market niche. It has undertaken many strategies which resulted in the successfulness of the company. M.A.C. Cosmetics has never tried to target a certain group. Toskan planned to create every shade possible in order to offer a wide variety of shades for each individual. 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. Sales for M.A.C. are growing rapidly. MAC is currently the only Estee Lauder brand that is not only meeting; but exceeding its annual sales goals. Last year MAC surpassed its sales plan by 121 million dollars! Which is unheard of in this industry. Everyday, this company comes one step closer to its ultimate goal of providing the utmost value for its customers. M.A.C. works from an inverted pyramid - where the customers are always at the top. It is the customers who inspire Toskan and the company. M.A.C. Cosmetics reasons for all its plans are derived from the fact that it is the 90's. There are many issues and many different needs required today. Everyone is an individual, and this company sees that, and deliberately tries not to exclude anyone. Some trends are also created by the media exposure. The media has so much to do with what's in and what's out. But, ultimately it is up to the consumer who decides. M.A.C. is and will always be a cash cow because this company makes more cash than it needs to maintain its market share.

Week 1 - History and Mission Statement 2


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.


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. is 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.

Week 3 - Ethics and Social Responsibility

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. is "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.