This project was the final project for the Marketing Management 2 course at McGill university. We represented team MAC, and "battled" against team Make Up Forever, a competing cosmetics brand. This project resulted in our team winning the battle, as well as top marks in the class.
17. INDUSTRY
A N A LY S I S
context
Five Forces Analysis
Buyer Power
market
5
4
3
strategy
Substitutes
results
2
1
Supplier
Power
0
tips
Degree of
Rivalry
Barriers to
Entry/ Exit
18. G L O B A L M A R K E T V A L U E
40
35
context
strategy
results
tips
$3.5 Billion
30
Millions
market
Sales ($M)
25
20
Increasing
Trend
15
10
5
0
2006 2007 2008 2009 2010
19. G L O B A L V O L U M E S O L D
Units in millions
3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000
2006
context
market
strategy
2007
Units
2008
2009
2010
results
tips
$3.9 Million
Increasing
Trend
20. MARKET
A N A LY S I S
context
market
strategy
results
tips
Market Segmentation by Make-up
Component
Eye
28%
Lip
25%
Face
36%
Nail
11%
21. MARKET
A N A LY S I S
context
Global Market Segmentation
market
strategy
results
Europe
2.5
25.7
41.2
30.5
Americas
Asia-Pacific
tips
Africa and
Middle East
22. MARKET
A N A LY S I S
Global Make-up Market Share in 2010
context
L'Oreal S.A.
market
23.7
strategy
results
tips
7.7
61.2
7.4
The Procter
Gamble Company
The Estee Lauder
Company
Other
23. COMPETITOR
A N A L Y S I S
MAC
MUF
context
$20
$20
market
strategy
results
tips
$60.79 SP €126.75 SP
63 countries
52 countries
28. P R O D U C T
context
market
strategy
results
tips
Critter
Friendly
150 shadow shades
eye
160
lipstick shades
40
foundation shades
29. context
market
strategy
results
tips
Product
Differen1a1on
Strategy
-‐ Enhancers:
-‐ Develop
different
blends
of
pigments
to
match
customer’s
needs
in
interna1onal
markets
(BRIC)
-‐ Develop
different
durability/intensity
of
pigments
and
viscosity
to
meet
PRO
versus
consumer
customer
needs.
-‐ Drivers:
-‐ Durability
of
long
las1ng
pigments
and
rela1vely
large
product
sizes
-‐ Quality
Aesthe1cs:
-‐
dis1nct
packaging
and
limited
edi1on
32. P L AC E
2012 net sales by distribution Estee Lauder
context
market
strategy
results
tips
Other
8%
Salon
Spas,
10%
North
American
Department
Stores,
27%
Travel
Retail,
11%
Retail
Stores,
10%
Perfumeries,
13%
Interna1onal
Department
Stores,
27%
33. P L A C E
MAC Canadian Channel Direct
Distribution
context
market
strategy
www.
results
tips
End
consumer
End
consumer
34.
CHANNEL
P E R F O R M A N C E
1. Customer Reach (volume)
• Professional + Consumer
• Trade shows, E-marketing
context
market
2. Operating Efficiency (cost to serve)
• Higher margins
• Subsidiary Benefits
strategy
results
tips
3. Service Quality (retention)
• Customer Intimacy
• CRM
• Value added sales and services
35. P R I C E
1. Value-in-Use Premium Pricing
Strategy
•
context
market
2. Company/Product Lifecycle
•
•
strategy
results
tips
Consumer benefit cost
Brand extensions justify premium
“skimming” price
Multi-segment Pricing
$20
3. Comparable Prices to
Competitors
•
•
•
Differentiation
Focus on customer loyalty
Cost of switching
4. Product Line Pricing
•
Complementary products
$22
36. P R O M O T I O N
context
market
strategy
results
tips
39. R E S U LT S
2012 Estee Lauder Financial Highlights
context
market
strategy
results
tips
$9.7 Billion in Net Sales à 10% Growth Rate
$8.56 Billion in Net Earnings à 20% GR
40. 2011 SALES
R E V E N U E S
Estee Lauder
context
market
strategy
results
LVMH
$8.8
$3.2
Billion
Billion
tips
COSMETICS FRAGRANCES
41.
BRAZIL
BRAZIL BRAZIL
context
market
strategy
results
tips
3rd Largest Global Beauty Market
MAC had a 40% Growth Rate in 2011
Succeeding in NINE Cities since 2002
Makeup Forver Opened FIRST Store
This Year
43. R E C O M M E N D A T I O N S
Short Term
Employee Attitudes
Increase Store Employee Evaluations
context
Focus on Industry Pros
Introduce Store Etiquette Page
Positivity!
market
strategy
results
tips
44. R E C O M M E N D A T I O N S
context
market
strategy
results
tips