Understanding Principles of Marketing for MAC Cosmetics

This report provides an overview of MAC Cosmetics, including critical success factors, marketing mix, and recommendations for future growth.

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UNDERSTANDING PRINCIPLES OF MARKETING
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Executive summary
MAC is popular around the world for its quality products, high service to the customers and the
product diversity. In fact, the company succeeds to achieve its long term goals by putting more
emphasis on the operation and marketing of the MAC products. From that point of view, the
report is going to perceive an idea about different attributes of MAC. Therefore, the background
of the company has been discussed and in this context, the key success factors are also
addressed. In addition to this, the report also conducts an in-depth study on the marketing mix of
MAC in order to make the report more justifiable and relevant.

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Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................4
Overview of the organisation.......................................................................................................4
Critical success factor..................................................................................................................5
Marketing mix.............................................................................................................................5
CSF 1.......................................................................................................................................5
Place.........................................................................................................................................5
Price.........................................................................................................................................6
Product.....................................................................................................................................6
Promotion................................................................................................................................7
CSF 2.......................................................................................................................................7
People......................................................................................................................................7
Physical environment...............................................................................................................8
Process.....................................................................................................................................8
Recommendations............................................................................................................................9
CSF 1...........................................................................................................................................9
CSF 2...........................................................................................................................................9
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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Introduction
MAC is considered to be one of the major and renowned cosmetic company across the
world and popular for its unique and quality beauty products. In fact, the company is one of the
leading makeup authority because of their expertise in the makeup products. MAC is succeeded
to establish a trend in the leading fashion, art and popular culture through its innovative and
unique cosmetic products (maccosmetics.com 2018). Based on this understanding, the report is
going to discuss a brief overview of the organisation and in addition to this, the critical success
factors are also incorporated into the discussion. Furthermore, the report also encompasses
insights of 7P model for MAC and understanding various attributes of the company.
Discussion
Overview of the organisation
MAC, the name of the company is an abbreviation stands for Make-up Art Cosmeticsthat
was founded by Frank Toskan and Frank Angelo in 1984 in Toronto, Canada. The company has
its headquarter in New York City and became a subsidiary of the Estee Lauder Company. In this
regard, it can be stated that during his time as photographer and make-up artist Frank Toskan
realised that attractive colours and effective textures of the MAC products can create a better
market exposure for MAC (maccosmetics.com 2018). Putting emphasis on the niche customers
provides MAC a strategic advantage to expand its market. Despite of having a great deal of
importance on the niche marketing, MAC is primarily developed its products to serve the
professional purposes. Popular celebrities like Naomi Campbell, Mariah Carey and Princess
Diana increased the brand value of the company more extensively. At the end of the annual year

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of 2012 the revenue of the company was $3,697 million whereas after the end of the financial
year of 2017 it was escalated to $5,054 (maccosmetics.com 2018).
Critical success factor
As far as the critical success factors (CSF) are concerned, they are as follows,
 CSF 1- The quality of the MAC products is quite popular in the professional world. In
most of the big fashion houses MAC products are very common to use by the make-up
artists. As a result of that having a strong brand image helped MAC to enter into the
general market as well.
 CSF 2- Besides this, the tagline of MAC is “all ages, all races, all sexes” is considered to
be portrayed an anti-discriminatory business practice that is enjoyed by the company
since its initiation. Through this benevolent image it became easier for MAC to penetrate
the cosmetic market more extensively by celebrating diversity and individuality.
Marketing mix
CSF 1
Place
MAC had started its journey by opening the first international outlet at Greenwich in the
year 1991. Gradually, the popularity and fame and the quality for MAC products led the
company to open more than 1000 stores in over 70 countries (Kapoor 2014). Besides these,
direct outlets there are also authorised retails stores that the MAC has used strategically. Such
retail stores are like Sephora, Frasers and Debenhams. There are no individual vendors with
whom the company makes a deal and no street vendors are licensed to sale MAC products. Close
relationship with the customers is always coupled with making better relation with the retailers

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and authorised vendors as well (Zahirović Suhonjić 2014). As a result of that MAC is able to
expand its market promisingly. In addition to this, there is also online channels through which
the company sale its products direct to the customers.
Price
MAC has established itself with a brand value of more than $2 billion. However, it can be
argued that most of the MAC products are higher in price in compare to the competitors like
Lakme or Maybelline (Ahmad, Yunus and Rose 2015). Nevertheless, it can be stated that the
high price never curtailed the sales growth of the company because MAC offers the high quality
products. As a matter of fact, the promotional techniques also facilitate a better environment for
the sales of MAC products through offering complimentary items or buy one get one offers. In
this context, the company strictly follows the multi-segment pricing techniques that enable it to
target more customers and foster better purchasing options to the existing ones (Lee 2015).
Product
MAC is popular for its wide range and variety of products. There are regular and
premium quality product segments that help the customers to choose and purchase their products
in accordance with requirements (Halkola 2017). The brand segment also includes sections like
Makeup, brushes and tools, travel size kits, perfumes and items for VIPs. Moreover, as per the
mission and vision of the Company, MAC claims to lead the fashion trendsetting with an
unrivalled expertise in makeup artistry (Alhedhaif,, Lele and Kaifi 2016). Besides this, the social
responsibility of MAC drives the company to donate in the AIDS program and other
philanthropic activities that are also considered to be the products that MAC has offered.

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Promotion
In its nascent phase MAC followed the traditional techniques of promotions and
advertisements. At that time word of mouth was the most followed practice that the company
was used to (Haghighi, Yasvari and Tabrizi 2015). However, in course of time, there were
significant changes in the business process of the company and it pushed MAC to incorporate
advanced promotional props like television and social media. After the 1990s the company was
willing to expand its market and inclusion of the celebrities for promotion became a common
phenomenon for the company (Bechan and Hoque 2016). Once Madonna was asked for a
specific shade of lipstick and that products became one of the best selling. For their collaboration
with the popular celebrities MAC conducted Viva Glam campaign which was highly successful
for the company.
CSF 2
People
Segmentation of customers is identified as an important aspect for the cosmetic
industries. In most of the cases women are considered to be the primary target customers for the
cosmetic companies (Azizpour, Abbasnejad and Siyavooshi 2017). However, in case of MAC
the scenario is a bit different. Both geographic and demographic segmentations are followed by
MAC but the mission and vision of the company lead it to follow a discrimination free attitude
resembled with respect for each and every customer irrespective of their class, creed, race,
religion or gender. As a matter of fact, the company operates business over 70 countries.
Therefore, wide ranges of customers are associated with MAC.

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Physical environment
According to Mohammadzadeh et al. (2017) the physical environment of an organisation
is referred as the comfort, facility and the interface. From that point of view, it can be opined that
the comfort and luxury provided by MAC is beyond any competition. The quality and variety
that the company offers are outstanding. Moreover, the facilities in terms of the MAC outlets are
also full of surprises for the customers. Choice of colour and the ambience also suits the
behaviour of the buyers. Based on this understanding, it can be stated that MAC successfully
maintains a global standard of service offerings to its clients. Furthermore, the online interface is
also very helpful for the online buyers to understand. The pictorial depiction with creative
designs makes the MAC application more attractive. In fact, the service facility is also
satisfactory enough to maintain a good business relationship with the customers.
Process
As per the research done by Bahl and Chandra (2018) it can be argued that the aspect of
process in the marketing mix strategy connotes the relevant service industry and the services that
are implemented for the benefits of the customers. Based on this understanding, it can be
ascribed that MAC is always emphasised on the customer satisfaction through product variation
and prime quality. This trend is not only being seen in their outlets and product manufacture but
also for the online customers there is a 24/7 customer service with reviews and feedback section
where the customers can share their experience as well.
Recommendations
The recommendations are as follows,

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CSF 1
 Place- Expanding market in the developing and under-developing countries will foster
better market capitalisation for MAC cosmetics.
 Price- It will be better for MAC to offer products in reasonable prices then it will be a
strategic advantage for the company to participate in the competitive market more
intensely.
 Product- More organic cosmetic products can facilitate strategic advantage for MAC to
expand market in Asian market.
 Promotion- Moreover, putting more emphasis on the brand value through the social
campaigns and online shopping experiences would pave the way for MAC to become
superior to other competitors.
CSF 2
 People- In addition to this, manufacturing more products for the male customers can be a
significant step for solidify market for MAC Cosmetics.
 Product environment- Anti-discriminatory campaigns will be beneficial for the
company in order to go with the motto.
 Process- Making a better service delivery with the online shopping portal can be
identified as an advantage for MAC.
Conclusion
From the above discussion, it can be argued that the market capitalisation of MAC is
quite effective. The former establishment in the professional fashion world helped the company a
lot to get a solid platform in terms of entering into the general market. In this context, the niche

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marketing strategy with its effective market segmentation is the unique method on which the
company is relied greatly. Moreover, the promotional strategy and the unique pricing strategy
facilitate more strategic advantage to MAC and help the company to achieve a strong market
capitalisation in order to retain its business in near future.

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Reference
Ahmad, S.N.B., Yunus, S. and Rose, R., 2015. Influence of Attitude on Consumers’ Awareness
toward Halal Cosmetics in Malaysia.
Alhedhaif, S., Lele, U. and Kaifi, B.A., 2016. Brand Loyalty and Factors Affecting Cosmetics
Buying Behavior of Saudi Female Consumers. Journal of Business Studies Quarterly, 7(3), p.24.
Azizpour, R., Abbasnejad, T. and Siyavooshi, M., 2016. Effective Factors on Purchasing
Intention of Cosmetics and Health Products in Tehran City. International Journal of Academic
Research in Business and Social Sciences, 6(11), pp.449-458.
Bahl, S. and Chandra, T., 2018. Impact of Marketing Mix on Consumer Attitude and Purchase
intention towards' Green'Products. A Journal of research articles in management science and
allied areas (refereed), 11(1), pp.1-11.
Bechan, K. and Hoque, M.E., 2016. Influence of income growth on purchasing patterns of luxury
cosmetic products among Nigerian customers.
Haghighi, M., Yasvari, T.H. and Tabrizi, A.T., 2015. Evaluating consumers’ assessment of
marketing mix in Pakat complex and the role of demographic characteristics in it. Indian Journal
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Halkola, V., 2017. Effects of behaviorally targeted online marketing in high involvement
purchasing decisions.
Kapoor, N., 2014. Principles of Marketing. PHI Learning Pvt. Ltd..

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Lee, J.Y., 2015. The Analysis of Skin Care Service Marketing-Mix Factor of Skin Care Shops
Satisfaction and Loyalty. Kor J Aesthet Cosmetol, 13(6), pp.873-881.
maccosmetics.com 2018. Our Story. [online] MAC Cosmetics - Official Site. Available at:
https://www.maccosmetics.com/our-story [Accessed 4 Nov. 2018].
Mohammadzadeh, M., Hashemi, S., Salmannejad, F. and Ghari, T., 2017. Identification of key
success factors in the marketing of cosmetics based on knowledge, attitude and practice (KAP)
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Zahirović Suhonjić, A., 2014. Determinants of Customers Behavior in Online Group Buying
Markets of the Western Balkans Countries. Economic analysis, 47(1-2), pp.175-192.