2. MAC COSMETICS
(ALL AGES, ALL RACES, ALL SEXES)
INTRODUCTION
• Originally started in Toronto, Canada by make up artist Frank Toskan and
Frank Angelo a salon Owner.
• They wanted to create make up that look good when photographed. Was
originally sold to models, photographers and make up artists.
• Eventually sales expanded when fashion editors and stylists. Soon through
‘word of mouth’ MAC ‘s sales expands..
• Around March 1984 MAC was launched from a department store (over the
counter) in Toronto. Celebrates diversity and individuality.
• What set MAC apart from other brands id they focused on colour make up
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3. THE MAC Approach
• Initially used an approach named ‘chic utility’, basically instead of the
usual packaging of compacts that cosmetic came in they packaged
their make up in black pots. Tapped into a niche market of that time,
as major makeup brands were primarily skincare companies.
• M·A·C relied on the integrity of its carefully formulated product line.
Adding to the image was a dash of sensibleness.
• A company that honours individuality and self-expression above all
else, it brought a brilliant sense of drag and theatre into the sleek
M·A·C stores and department store counters.
• Has always been at the fore front of raising awareness of issues
affecting the world, e.g. In 1994 when HIV/AIDS became a global
pandemic. MAC created the MAC AIDS Fund, made HIV/AIDS
organizations the beneficiaries of the company’s charity. Has
collaborated with big names in Hollywood
4. Problems
• MAC has been facing declining sales in recent years of
2017 – 2019 especially in the US Market. Where digitally
native labels like Glossier have invented a new way of
selling makeup centred on “building community” among
consumers under the age of 25
• At this time, MAC does not have a branded mobile
application.
• MAC was able to scale because its expansive selection
provided something for everyone and it was primarily sold
at department stores,
• Once the leading sales channel for prestige beauty. Plus,
there were less makeup brands, which gave fewer
options to consumers, however now consumers are
bombarded with new launches from different brands on a
daily basis.
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5. 5
Problems
Did not fundamentally understand the fragmentation and profound disruption
of what social media and content brought to the marketplace and the
conversation, particularly with Gen Z. Hence they were not in the channels
of distribution where young people were shopping
6. BUSINESS ANALYTICS ADVANTAGES
Competitive edge
the cosmetics market is a unique
landscape and marketing professionals
must understand the ins and outs to truly
succeed in:
boosting their brand’s visibility,
increasing sales
building brand loyalty.
How it works
A good example is IBM:
IBM was exployed BM delivered a makeover with a
master data management (MDM) approach that
satisfied the cosmetics company’s needs for
expertise and flexibility.
The organization used IBM Info Sphere Master
Data Management Collaborative Edition to
capitalize on its solid foundation and processes for
providing a highly accurate, trusted view of its
product information.
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7. BUSINESS ANALYTICS
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Vestibulum congueVestibulum congue
in the highly competitive and increasingly digitized beauty industry, remaining
relevant is more than simply maintaining a presence and an extensive
product inventory. It’s about building customer strategies based on big data
and analytics to provide unforgettable experiences that grow both loyalty and
revenues in one fell swoop.
Vestibulum congue
In a highly competitive and increasingly digitized beauty industry,
remaining relevant is more than simply maintaining a presence and an
extensive product inventory.
It’s about building customer strategies based on big data and analytics to
provide unforgettable experiences that grow both loyalty and revenues “in
one fell swoop.” The strategy adopted by US largest beauty supply retailer
and distributor Sally Beauty
8. “STRATEGIES USED BY MAC
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MAC Cosmetics is maximizing its direct mail with QR codes that drive commerce and sign-
ups for the makeup brand’s SMS program.
• “Adding a QR code makes existing marketing materials work harder and often more
trackable. Direct mail pieces have moved from passive to interactive, which is smart
given the fact that calls-to-action are seen and acted upon by meaningful numbers of
mobile users.”
The direct mail piece feeds into a larger marketing strategy that MAC is carving out to bring
the in-store and online experiences together.
Image is very important to all retailers, and it is of utmost importance to cosmetics
companies whose unstated goal is to ensure consumers: “If you buy our products, you can
look like or be like us.” Known for its bold colours and edgy advertisements and sales staff,
which is conveyed by its photo-dominant Web and mobile sites and direct mail pieces.
9. STRATEGIES USED BY MAC COSMETICS
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Consumers also can sign up to receive email or text messages,
which helps MAC expand its customer database.
As mobile commerce continues to grow, these types of personal
recommendations will be key for MAC Cosmetics in strengthening its
digital marketing strategy.
