MAC Cosmetics Marketing Analysis

This assignment delves into the comprehensive marketing strategies employed by MAC Cosmetics. It examines their successful branding, explores their global pricing tactics, analyzes their effective segmentation and targeting plans, and highlights their key competitive advantages within the beauty industry. The analysis draws upon various sources including academic journals, industry reports, and online publications to provide a thorough understanding of MAC's marketing approach.

RUNNING HEAD: Cosmetic industry and its marketing strategy
cosmetic industry and its marketing strategy
MAC Cosmetics

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History and Introduction
MAC brand was founded by Frank Toskan and Frank Angelo in 1984. It as a cosmetic brand
which was founded in Toronto and headquartered in New York City. It is an abbreviation of
Make UP Art Cosmetics. The need for makeup aroused when the people thought there should be
availability of different colors for the many photo shoots. So, the first inspiration of makeup
came from the need of shades of many colors (Benoit, 2014). In 1994, MAC AIDS FUND was
founded which aimed at supporting the AIDS victims. For it, they also launched many diva
collections like lipstick and nail polish. Later in 1995, Estee lauder acquired the whole company
and John Densey became the chairman of the company in 1998. Similarly, the first store of Mac
was opened in New York. The company offers huge shades of products to its customers. The
company at first used to sell products to only makeup professionals but slowly and gradually it
was liked by models and then from models to their relatives and sisters and friends and many
more. The demand for it kept on increasing day by day and today is had placed itself as a global
brand preferred by every female. Today Mac cosmetics is sold in more than 15 countries with
38500 employees across the globe (Farnetani, 2015).
Mission
The mission statement followed by the brand is “All races, all sexes and all ages”. It aims to be
the world’s leading makeup brand for the consumers and professionals by providing the best
quality of products. Consumers should feel good, look good after using the brand and made a
concept that pains have gains in the minds of consumers. It aimed at launching the products for
males, females, and children. It also introduced “Kid's helping Kids” where kids used to paint
many greeting cards and donate them to pediatric organizations (Basnet, 2015).
Vision
This brand was founded with a vision to huge gap between makeup artistry and fashion photo-
shoots. The beauty professionals who used to depend on heavy makeups, Mac used to provide
them wide range of products which used to enhance visual effects during shoots (Neil, 2014).

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Slogans
“All Races, all sexes, all ages” is one of the most common slogan used by Mac.
What makes up Mac?
Mac is considered to be one of the most leading make up brand. It aims at focusing on diversity
and individuality. Mac is one of the proud community where many artists work together to
complete the company’s mission statement (Rivera, 2016).
Products offered
It includes huge range of products for all men, women and children.it offers make which include
eye shadow, mascara, liner, foundation, lip gloss, lipstick, powder, primer, lip liner, bronzer,
highlighters, and many more. It also provide skincare products like moisturizers and removers. It
also offers makeup brushes for eyes, lips and faces and tools like applicators and containers.
Moreover, it also include fragrances for men and women in it (Hoang, 2015).
Role of Mac brand in cosmetic industry
Since, mac is a brand in itself. It makes their product unique and expressive. It catches the eye
and make the consumers spend their money on the cosmetic products. Mac really worked hard to
build that is not like anything which already exist in the market. It aimed at creating a uniqueness
and something different (Brook, 2014).
5 c’s of Mac
 Company: SWOT analysis of Mac. Strength: it is highly reputed brand and which created
a responsible image and goodwill. It is available in 200 locations with 2500 employees in
15countries across the globe.
Weakness: it has limited number of products if compared to other brands and it has many
controversies related to its products and services.

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Opportunities: It provides all the required information about its product on its website
only and it also sell its products through retailer website as well.
Threat: there is huge number of brand that provides the cosmetic products. So, it
automatically creates huge number of competitors too. The major competitors are
L’Oreal, Revlon, Lakme, and Maybelline (MBA, 2012).
 Customers: the company serves all ages of consumers with every genders. It offers
variety of products to the men, women and children as well. Customers who buy this
brand has some different personality traits like it reflects luxury and lush. So high
segmented income range are preferred by this brand (Weinstein, 2012).
 Collaborators: Mac provides a digital platform to its consumers where they are provided
plenty of information required before buying a product. It makes the customers buy the
products according to their need and budget and get their products delivered at home
Moreover, mac also has their stores opened in malls and supermarket where customers
can walk in and buy the products as well. It has distributors and retailers across the globe
to serve their products worldwide.
 Competitors: The major competitors of mac are Lakme, Revlon, L’Oreal and Maybelline
which also provides huge variety of cosmetic products and creates a threat in the
industry.
 Context: There are also many legal and political factors involved in the brand. There was
legal controversies when the brand was launched and many other factors were creating a
challenges to establish the brand in the cosmetic industry.
Market research and market intelligence
What customers want?

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Consumers who use cosmetics are obsessed with the products and brands. They just want to feel
good and look good. Customer want product which provides quality feels. Today customers are
more focused to quality rather than price. They want the best quality products despite of high
prices (Williams, 2010).
Which competitors pose a threat?
The main competitors of brand are L’Oreal and Clinique. They produce variety of products same
as Mac. They also aim at maintaining the healthy relationship with all tits customers’ and serve
them happily.
How the context of business is changing, if at all?
Mac focuses on quality products. It differentiate its products from its major competitors. It offers
varieties in color and texture and quality products for the final look. It provides 18-30 category
of products to target its primary market and maintain a good will in the cosmetic industry. A
person with uniqueness, confidence, and fashion lovers usually prefer such brand. Such people
do not compromise with the new trends (Tasmia, 2014).
What role collaborators play in the process?
Mac provides digital platform to its customer where they are free to surf the required products
and buy them after getting all the information required. Distributors and retailers are the major
collaborators of the brand. They play a major role in the success story of this brand. They ensure
that the brand or the product selected by the customers are successfully delivered to them or not
and moreover they also makes sure that the customers are happy and satisfied or not with the
product they have applied on. Today, the customers of the mac are happiest and most satisfied.
Marketing Strategy

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Segment: when a market is divided according to identical groups is known as market
segmentation. Mac also uses market segmentation to reach its objectives and serve their products
to all races and all genders and all ages as well. Mac segments its market under four categories
i.e. demographic segmentation, geographic segmentation, psychographic segmentation and
benefit segmentation. Under demographic segmentation, it targets customers from all the
locations based on market size, density and climate. Mac mainly target Africans because they
have skin pigmentation problem (Reijntjes, 2012). Likewise, under demographic segmentation,
they target customers with high income and family background who can afford high range of
products. Mac also target its customers by providing packaging according the life style and
personality traits of the people like in India it focus on enhancing facial features and removing
pigmentation that comes under psychology segmentation. Some customers prefer mac because of
the benefits they gain from using such brand (Pou, 2014). Thus, it focus on segmenting young
women.
Target: the main target customers of mac are young women who are more obsessed with the
good look. Mac also aims at targeting professional makeup artists who are highly involved in
beauty industry. They also target models and actors who must look good during shoots. It targets
its customers by providing best quality products that lasts up to hours (Lush, 2013)
Position: from the very first, mac has positioned itself clearly in the market. It has ranked itself
by providing products with lush and extensive ranges of colors as well. Moreover, it is focusing
on producing professional quality products. It has also positioned itself by highlighting key
benefits along with the products. That makes the customers aware about the products and get the
detailed information about the product (Arusha, 2015).
Branding Strategies of MAC (Jahan, 2014)
Product differentiation strategy:
It includes enhancers, drivers and quality aesthetics.

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Enhancers: It offers products that blends with the customer needs and also provides huge range
which can best match with the customers’ skin.
Drivers: It aims at providing huge number of products with high durability and long lasting
features that driven the customers more.
Quality aesthetics: Mac provides packaging of its products with distinct quality and limited
edition with the brand name mentioned on it.
Pricing strategy:
Value-in-use premium pricing strategy: It aims at ensuing the benefits to the customer is more
than the cost incurred by the customer i.e. consumer benefit must be > cost (Kim 2016).
Company life cycle: It uses skimming pricing strategy where the prices are kept high at first and
then lowered later. Mac also offers multi segmented pricing.
Comparable prices to competitors: It differentiate its products by providing uniqueness and aims
at focusing on customer loyalty.
Product line pricing: It also aims at providing complementary products to its customers.
Promotional strategy:
Words of Mouth: It builds it image by creating a goodwill in the market by making a strong
relationship with celebs and makeup artists who speaks good words about the brand. They also
helps to provide a positive feedback to others.
Motivating action communication: It also aims at “back to MAC” slogans where it rewards to it
stop customers and they are highly motivated by the brand. It also enables to maintain customer
relationship management by providing a strong bond between the service provider and
consumers.

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Social media: it promote itself using plenty of social media like FB, twitter and it also promote
its brand by participating in many fashion shows along with the models and celebrities (Shen,
2013).
Placing strategy:
It has spread a wide network across the globe. It has several locations located domestically and
well as internationally. It has a huge network of employees and many happy customers all over
the world. It is available at malls, super markets and airports.
Recommendations
 Since the brand itself reflects luxury, it offers products with high price which are not
affordable for the people with the low income. So, it should also focus on providing the
rage with low price which can easily be affordable with the people are love mac makeups
but cannot afford it.
 It offers products line like brushes, foundations, lipstick and fragrances which limit its
product line. So, it should also aim at increasing the product line by including soap,
shampoo, cream and lotions too.
 It should focus on its distribution channel because sometime their products are not easily
available to its customers.
Conclusions
From all the above mentioned points and analysis, it can be concluded that the brand MAC itself
reflects luxury and confidence. It offers plenty varieties of products to its customers based on all
the races, genders and ages. It provides cosmetic ranges for young women, men and children too.
Despite of its major competitors in the market, it has maintained its good image in the cosmetic
industry. Today. Every individual wishes to look beautiful and gorgeous and taking this on
highest priority, mac has successfully placed itself in the market. It aims at providing such
quality in the product that automatically fits and blend with the needs of the customers and

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satisfies them as well. Thus, Mac has proven itself to be one of the best brand in the cosmetic
industry. Moreover, mac also supports AIDS patients and they also organize many programs in
which children participate and make greeting cards and then donate them to patients and makes
them happy. Mac is the only brand which has diversified its reach and made the maximum of its
customers satisfied and happy. Nevertheless, it also aims at enabling its reach to its customers by
providing an online platform i.e. digital platform. All the information required before buying a
product is clearly mentioned and is transparent enough to make a purchase decision. It targets
Africans more and more because their skin is pigmented and they need more quality products to
look beautiful. Mac thus also works for reducing pigmentation, so it helps its customers to satisfy
their skin problem by applying mac cosmetics. Today among the majority of the young women
prefers mac brand and are happy using it.

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References
Arusha. R, 2015, brand positioning of mac cosmetics, viewed on 24th January, 2018. Available
on: http://rabiba-rc.blogspot.in/2015/02/brand-positioning-of-mac-cosmetics.html
Basnet. B, 2015, history and mission statement, viewed on 24th January, 2018. Available on:
http://bivonmac.blogspot.in/2010/09/week-1-history-and-mission-statement.html
Benoit, A., 2014. “An advertising world gone completely haywire": MAC VIVA GLAM.
Advertising & Society Review, 15(1).
Brook. Z, 2014, Mac makeup marketing, viewed on 24th January, 2018. Available on:
https://www.slideshare.net/zoeparisbrook/mac-makeup-marketingbrand-assessment
Farnetani. A, 2015, Are you curious to know the history of MAC Cosmetics one of the most
famous cosmetic brand, viewed on 24th January, 2018. Available on:
https://www.linkedin.com/pulse/you-curious-know-history-mac-cosmetics-one-most-famous-
farnetani
Hoang. L, 2015, Mac cosmetics, viewed on 24th January, 2018. Available on:
https://prezi.com/pfrp-fs87uun/mac-cosmetics-marketing-mix/
Jahan. N, 2014, Branding Strategies of MAC cosmetics, viewed on 24th January, 2018. Available
on: http://nusratjahan-1332.blogspot.in/2014/11/branding-strategies-of-mac-cosmetics.html
Kim, S.J., Lee, J.Y. and Lee, K.H., 2016. Global Pricing Strategy of the SPA Brand: Comparison
with GDP and Big Mac Index. Fashion & Textile Research Journal, 18(3), pp.301-316.
Lush. L, 2013, Mac cosmetics, viewed on 24th January, 2018. Available on:
https://prezi.com/jmwgn03nwvp3/mac-cosmetics/
MBA, 2012, SWOT analysis, viewed on 24th January, 2018. Available on:
https://www.mbaskool.com/brandguide/lifestyle-and-retail/12949-mac-cosmetics.html
Nagle, T.T., Hogan, J. and Zale, J., 2016. The Strategy and Tactics of Pricing: New
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Pou. N, 2013, segmenting and targeting plans, viewed on 24th January, 2018. Available on:
http://nataliawordsbeyondbeauty.blogspot.in/2013/12/chapter-8.html

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Reijntjes, D. and Wagijo, R., 2012. Market Potential Analysis–A study of the Cosmetics Industry
in the ABC Islands.
Rivera. J, 2016, Mac cosmetics, viewed on 24th January, 2018. Available on:
https://prezi.com/ynpufz2gjspl/mac-cosmetics/
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651.
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Available on: http://rjtasmia.blogspot.in/
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CRC Press.
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