Week 14 -Segmenting and Targeting Markets

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.

Week 13 - Developing and Managing Products

M.A.C. Cosmetics introduces new collection every season, developing new product ideas from many sources, including customers, employees, distributors, competitors, vendors, research and development and consultant. M.A.C. Cosmetics new Holiday/Winter 2010 collection of eye-catching, “A Tartan Tale,” is in all its posh, punk, ancestral, anarchic, noble and naughty glory. They range from makeup bags, to the eyes and face products that have some flasher fun with mirrored compacts. It also includes two exclusive collectable limited-edition sets packaged in a chic and reusable M.A.C. Holiday tartan tin, M.A.C. glamorous and my scottish fling mineralize Kits. This holiday season, M.A.C.'s special project for Kids Helping Kids is Sir Teddy. All proceeds go to the Kids Helping Kids program, supporting children and people around the world living with the effects of HIV/AIDS. Sir Teddy mini is $12 while Sir Teddy Bear is $15. The Viva Glam holiday kit goes full-out tartan in a bag featuring a clash of red. Another new product launched on November 24^th, 2010 is M.A.C. & Marcel Wanders Collection of Air of Style Solid Perfume, Lipsticks, Lipglosses, Sheer Mystery Powder. Upcoming M.A.C. Cosmetics collection for 2010 and 2011 are M.A.C. & Nicki Minaj Pink Friday 4 Lipstick, U.S. Launch Date: November 29^th, 2010, Cham-Pale Collection, U.S. Launch Date: December 26th, 2010 M.A.C. Stylishly Yours Collection, U.S. Launch Date: December 26th, 2010, M.A.C. False Lashes Mascara, U.S. Launch Date: December 26th, 2010, M.A.C. Peacocky Collection, U.S. Launch Date: January 6th, 2011 MAC & Mickey Contractor Collection, U.S. Launch Date: January 6th, 2011

Week 12 - Customer Relationship Management (CRM)

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. focuses 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. Like, I have become one of their valued customers!!

Holiday 2010 MAC Tartan Tale Swatches & Product Details

Week 11 - Happy Holidays to All!! and come celebrate this holiday season with M.A.C. Cosmetics

Go! and shop for yourself and your loved ones this holidays at M.A.C. Cosmetics and feel the difference!! Remarkable news of M.A.C. Cosmetics, celebrating this 2010 holiday season with their collection of eye-catching, “A Tartan Tale,” in all its posh, punk, ancestral, anarchic, noble and naughty glory. Royal and raunchy, colors and patterns collide, fantasies come true, punk fairies take flight with enchanted new looks. They range from makeup bags, to the eyes and face products that have some flasher fun with mirrored compacts. It also includes two exclusive collectable limited-edition sets packaged in a chic and reusable M.A.C. Holiday tartan tin, M.A.C. glamorous and my scottish fling mineralize Kits. This holiday season, M.A.C.'s special project for Kids Helping Kids is Sir Teddy, officially knighted as the international symbol of KHK, at the pleasure of her M.A.C. Majesty. All proceeds go to the Kids Helping Kids program, supporting children around the world living with the effects of HIV/AIDS. Sir Teddy mini is $12 while Sir Teddy Bear is $15. The Viva Glam holiday kit goes full-out tartan in a bag featuring a clash of red. M.A.C. crest and the complementary duo of Viva Glam lipstick and lip gloss. All proceeds go to the M.A.C. Aids Fund to help support people living with HIV/AIDS and the best part is about the annual Kids Helping Kids greeting cards.

Week 11 - Integrated Marketing Communications

M.A.C. Cosmetics does their promotion in the most unique way and have always been on the cutting edge with their way of promoting their brand image. They inform, persuade and reminds potential buyers through the word-of-mouth strategy. First of all, M.A.C. knows their target audience and knows how to focus the promotions. M.A.C. has a total competitive advantage in the cosmetics market and are recognized by their target market as significant and superior. Moreover, there are no media advertisement and no online sale through Internet outside the United States and people often do not even know about the products and their advantages. Since there is a lack of promotional campaigns with no free samples, the company can only rely on the existing customers to spread the information about M.A.C. products. The company uses celebrities as representatives or models. However, there is lack of advertisements and promotional campaigns that would attract ordinary women to try the brand make-up. M.A.C. sure knows how to keep a positive public image when it comes to public relations. M.A.C. is known for the back to M.A.C. program and M.A.C. Aids fund program where they stand out for being a socially responsible company. It is for all age, sex and race. Also, they have fashion parties for different occasions, where it brings the celebrity world and the outside world together. This way, M.A.C. benefits a great deal for their publicity. The highlight of M.A.C. is their sales promotion which stimulates their immediate increases in demand. Their employees are well trained for their job. Their sales representatives offer the best personalized customer service. Research has shown that sales promotion yields faster sales. Personal selling between M.A.C. and its customers is a well paid-for communication where the customer is ultimately satisfied with the product and its affordable prices. M.A.C. believes in interpersonal communication which is direct and a face-to-face communication. In every M.A.C. stores, the sales representatives are very attentive and their direct speaking with their customers is an advantage and an effective way of selling their products. Facebook, Twitter, My Space have a strong impact for M.A.C. Cosmetics. M.A.C. has its corporate blog under www.maccosmetics.com, where one can get all the updated information about M.A.C.

Week 10 - Product Concepts

M.A.C. Cosmetics is a specialty product and consumers are very satisfied with it because their extensive search is worth it. M.A.C. uses their word-of-mouth strategy and are status-consious to maintain their product's exclusive image. 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, mineralize, multi-use, 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 homebase of customers, and has publicly available marketing. Repeat sales takes place in M.A.C. since, the consumers have known their own favourite brand M.A.C. and are satisfied, they wish to buy again and avoid those they do not. Back to M.A.C. recycling program is available at all M.A.C.'s counters & stores. At the M.A.C. stores you can return 6 empty primary containers and you can redeem them for 1 lipstick or lipgloss.

Join us for M·A·C Halloween Face-Off, our first ever reality inspired co...

M·A·C Halloween Face-Off: Episode 2

M·A·C Halloween Face-Off: Episode 1

Week 9 - Sales Promotion and Personal Selling

Personal selling is one of the oldest forms of promotion. M.A.C. Cosmetics follows this strategy and is a stand-out in the beauty world today. M.A.C. performs the task of selling through individual or representative by face to face, an oral communication with potential buyers of a product with the intention of making a sale. M.A.C. focuses initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to “close the sale”. Whereas, for sales promotion, M.A.C. does short-term use of incentives like discounts, displays, exchange offers, exhibitions, fashion shows and movies and television, to attract the potential customers and to achieve more sales value. M.A.C. promotes recycling through their Back to M.A.C. program where if you return six M.A.C. primary packaging containers to either a M.A.C. counter or online, then you will get a Free M.A.C lipstick of your choice. This is their way of “thanking you” for helping them keep our planet "green.” The WAD promotion doubles M.A.C.’s usual philanthropic commitment, which directs 100 percent of the sales price of its Viva Glam line of lip products to the M.A.C. AIDS. M.A.C. Pro, M.A.C. Pro Student and M.A.C. Pro Preferred members can redeem their discount in selected partnered stores, at any freestanding M.A.C. Store or M.A.C. Pro Store around the world. Discounts may vary from country to country. M.A.C. is for all occasions from high school proms to fashion shows. M.A.C. is so much fun especially on holiday season like their new Halloween Faceoff. They make the scariest of the holidays into a stylish one. They have got three of their makeup artists, going to create an amazing Halloween costume in under three hours. All they will use is their makeup kits, creativity, and a mischievous mix of hair-raising hardware, wacky wigs, and other perilous props.

MAC AIDS FUND

MAC AIDS Fund's Nancy Mahon: Tying the Cause to the Brand

MAC Cosmetics Hosts An Electric Audience with Lady Gaga and Cyndi Lauper.

MAC Cosmetics Ad Designs

Week 8 - 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 roof.

Website: http://www.maccosmetics.com

Week 7 - Retailing

I needed a new compact and as I walked in the M.A.C. Cosmetics store in Soho, Prince Street, as usual, one of the sales representatives greeted me and helped me with my purchase. I did not have to spend much time inside the store too. I am very satisfied with their products and most importantly their personalized customer service. I am a loyal M.A.C. customer and I always get what I want. Customer service is an important factor in M.A.C. retailing and which you can find it in this cosmetic store. I also wanted a red lipstick and as I was looking at them, the sales girl asked me if I would be wearing this lipstick to work or out on a date? She asked me relevant questions like whether I wanted it matte or to sparkle or shine? If I ever tried wearing it with a lip liner or lipgloss? You may go in to just have a look but because of this kind of customer-friendly service, I bet most people decide to purchase at least one or two of their products. M.A.C. Cosmetics has been a successful power retailer and has chosen to excel on selection while maintaining consumer experience, convenience and affordable prices. M.A.C. is one company that caters to its customers. All makeup counter employees are thoroughly trained before they deal with customers. Their artists have been trained to focus on the customer and not the sale. They know their stuff and they know their products. From skin care to hair care, they learn it all. They master all the techniques and adapt them to all different face shapes, eye shapes, skin colors, skin textures and most importantly - customer's experience. The highlight of this store is any woman can get a makeup consultation and application lesson by any one employee for a nominal fee which is applied towards the purchase of any of the cosmetics. This company has a conscience, it loves to make people look and feel good on the outside and on the inside. 

Week 6 - Consumer Decision Making

The decision of a consumer is affected individually, culturally, socially and psychologically, when buying M.A.C. products. Consumer decision-making process is the process we go through when we decide to purchase something. A decision-making process like this can be described as five different stages: Consumers need to make a recognition of the brand M.A.C. Cosmetics first. Then, they need to do a research for the information about the M.A.C. Cosmetics. By doing the research for the information of the product, they have been successful and satisfied when purchasing the product. Moreover, the word-of-mouth strategy is favoring in retaining the M.A.C. market. The name itself promotes to the consumers evaluation of the product. Consumers buy this product unplanned initially and they are not making a mistake on the quality and the product appealing to them. Post-purchase of M.A.C. Cosmetics has always been the right decision they are making on the money they are spending for that product. Therefore, customer loyalty is gained. For example: A dual compact which has both foundation and powder, can make the skin smooth and flawless as compared to a lower price product of a lower quality. Consumers trust recommendations from their real friends as seen in the statistics chart.

Week 5 - Developing a Global Vision

M.A.C. Cosmetics is a multinational corporation and is the number one makeup artist brand in the world. M.A.C. is sold in more than 70 countries and territories worldwide. For 2010, the company estimates revenue of 1.95 trillion won ($1.65 billion) and net profits of 330 billion won compared with roughly 1.77 trillion won and 300.6 billion won last year. M.A.C. Cosmetics sells extremely well globally in Doha, Qatar and the United Arab Emirates. One of their target markets is the Airline Industry and there are consumers who are able to use the best quality cosmetic product at a value they are ready to pay. From my personal perception, when I used to fly for Qatar Airlines as a Flight Attendant I loved all of M.A.C. Cosmetics and still do. It gave me a great satisfaction for the value for money I spend and I really saw a lot of difference compared to the rest.  When I walked into any of the M.A.C. stores, the sales representatives always wore a smile and gave the best personalized customer service. Also, M.A.C. Cosmetics offering a free glam lipstick for every 5 of their used products is another attracting offer for me, which adds to being globally conscious of the green marketing. Services available at these M.A.C. Cosmetic stores include:

• False eyelash application
• Full make-up application up to one hour
• Make-up lessons up to 90 minutes.

The Gulf region is one of the fastest growing cosmetics markets in the Middle East, characterised by high purchasing power, sophisticated tastes and a multicultural environment to absorb much of what global brands have to offer. One of the unique brand initiatives seen in the market was by M.A.C. - the hosting of "Industry Parties". Invitations to a party are given out by M.A.C. to industry professionals from the fields of music, media, modeling, photography, movies and event management to gather under one roof and get to know the brand and its representatives. Adding to that exciting way to build rapport with its target audience, every six months, M.A.C. conducts a "Trend Presentation" by professional make-up artists immediately following major fashion shows worldwide. Make-up artists from New York fly in to give a demonstration of the latest trends to users.

Step by Step guide to the ultimate smoky eye - MAC makeup

Makeup Tips From the Experts at MAC Cosmetics

Corporate Irresponsibility - Toyota

Toyota, a reputed Japanese, world market, automaking company has a history of a longstanding reputation not only for business prowess but also for social responsibility. But, these days, Toyota is facing the unbearable heaviness of being exposed as just another bad automaker who is not socially responsible for their customers lives. The company knew that the defective gas pedals for years and had hidden the existence of tests that would be harmful to its legal position and claimed key material was difficult to get at its headquarters in Japan. It has withheld potentially damaging documents and refused to release data stored electronically in its vehicles. This resulted in a sharp drop in buyers confidence when purchasing Toyotas. Toyota now faces nearly 100 federal wrongful death and injury lawsuits by victims who blame their crashes on sudden acceleration. Toyota hid the existence of its roof strength tests in numerous cases. For example: In California, two women were left paralyzed by separate Toyota rollover crashes and they filed a lawsuit against Toyota, that recently uncovered company documents with sworn testimony by Toyota officials that the company had no written standard for how far vehicle roofs could be crushed. Toyota has behaved unethically and immorally affecting a huge impact on their brand image.

Week 4 - The Marketing Environment

M.A.C.'s target market would be Generation Y. Considering my demographic of Generation Y, who possess, all of these characteristics, such as impatient, family oriented, inquisitive, opinionated, diverse, good time managers, street smart, and connected, all fall into place. Generation Y were born between 1979 and 1994. They are about 60 million strong, one and a half times as large as Generation X. They are also known as "echo boomers." They range from college graduates to kids in their teenage years.  They already spend nearly $200 billion annually and over their lifetimes will likely spend about $10 trillion. Some have already started their careers and are making major purchasing decisions such as cars and homes. Most consumers who purchase M.A.C. products are Generation Y consumers. These consumers are not afraid to purchase two $18.50 products in comparison to the drugstore, where you could find a foundation for $7.00. These consumers know that their skin is important and they will get the best products possible for them and their skin. M.A.C. is the most popular and most demanded cosmetics available in the market today.M.A.C., a company that was originally geared toward the Caucasian market, now attracts a 50% ethnic customer base.

Week 2 - Strategic Planning 3

Disney And M.A.C. Cosmetics Team Up For Villains Collection:

M.A.C. Cosmetics has teamed up with Disney to create a devilish collection inspired by some of the most famous Disney villians. The Venomous Villains collection arrives at M.A.C. stores on September 30^th. It highlights favorite animated antagonists. Cruella De Vil from "101 Dalmatians," Maleficent from "Sleeping Beauty," "Snow White’s" Evil Queen and Doctor Facilier from the "Princess and the Frog," are represented in blush, beauty powder, eye shadows, lipstick and nail polish. There are the light and dreamy shades such as “Oh so fair”, a pale pink beauty powder in the Evil Queen’s collection and “Innocence Beware” a taupe shade of lipstick with Cruella de Vil’s mean old mug adorning the packaging. And for the more adventurous, there are plenty of wild and wicked colors to be had. A nail lacquer inspired by Maleficent called “Mean & Green” is a swirl of gun-metal and purple-green that would compliment fall’s gray color palette. And every villainess needs a blood-red lipstick. “Toxic Tale” matches Snow White’s fateful fruit. “I’m sure every woman in the world has a little villain in her somewhere, whether she wants to admit it or not!” says James Gager, senior vice president and creative director of M.A.C. Cosmetics, “It comes out from time to time in all of us. So I don’t think it will be too difficult to relate to at least one of these characters, if not all of them.” The Venomous Villains collection ranges from  $12 to $30. The colors for the 40 item collection, which feature uniquely designed and extremely collectible packaging, were created from Pantone reproductions of original Disney drawings. 

Week 3 - Ethics and Social Responsibility 2

A.C.'s and Rodarte apology on "Juarez" makeup line:

M.A.C. Cosmetics and high fashion designer Rodarte teamed up to release a new line of make up called “Juarez” for September 2010. However, upon release they were swarmed with criticism, not from human rights activists but first from fashion critics and bloggers. According, to M.A.C. and Rodarte cosmetic line creators, "Juarez" was inspired by the beauty and struggles of women living in Juarez. The inspiration of this line came from a road trip that several fashion designers took through Texas and the Southwest. The cosmetics product names included "Juárez," "Bordertown," "Sleepless", "Ghost Town," and "Factory." The names were to be paired with pale nail colors and bloodstained eye shadows. Sleepless was "inspired" by the thousands of women who trek to work early in the mornings in hopes to provide for their families. "Factory" was meant to catch the hardworking spirit of these women working unthinkable hours in the maquiladoras with a glamorized pail mint colored nail polish. These names, referenced the lives of the residents of Ciudad Juarez, the Mexican city on the Texas border that is consistently making headlines because of rampant violence and poverty and huge amounts of bloodshed that goes on in towns on the US-Mexico border. M.A.C. and Rodarte makeup collection apologized and said that they did not intend to represent the violence against women in Juarez. They said the company would change the product names and it is committed to donating $ 100,000 to a non-profit organization that has a proven, successful track-record of helping women in need and that can directly improve the lives of women in Juarez in a meaningful way. Therefore, this issue has raised the global awareness and they are going to move forward in a constructive way to do their part to make a positive difference in that community.

Country of Origin - My Clothes I wore today

Shirt - Made in Morocco

Denim Shorts - Made in Morocco

Undergarments - Made in China

Sandals - Made in India

Guess Watch - Made in Japan

Bag - Made in China

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

History

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. 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.

Week 2 - Strategic Planning

Strategic Planning:

M.A.C. has propelled to incredible heights since it’s founding in 1985. Even with a marketing strategy based solely on word-of-mouth, MAC 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, MAC 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. In the future, M.A.C. plan 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. 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 serious 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.

Week 1-History and mission statement

History

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.

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.