Mac Cosmetics Marketing Mix Analysis: A Comprehensive Report

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Activity B - Mac Cosmetics
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Table of Contents
LO2 Compare ways in which organisations use elements of the marketing mix (7Ps) to achieve
overall business objectives..............................................................................................................3
References......................................................................................................................................11
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LO2 Compare ways in which organisations use elements of the marketing mix (7Ps) to
achieve overall business objectives
Marketing is developing and continue evolving with the increase of era of globalisation.
Marketing mix includes various factors that can attract the customers to purchase the products
and the company controls that factors (Abidemi et al., 2017). The Mac Cosmetics is a company
deals with the makeup and lifestyle sector. The 7Ps of marketing mix used by the Mac Cosmetics
and L’Oreal in order to promote its brand in the market and meet its business objectives are as
follows:
Figure 1: 7Ps of the marketing mix
(Source: Mohammad, 2015)
Comparison
Particulars Mac cosmetics L’Oreal
Product The Mac Cosmetics launched tested
products, which smooth skin and reduce
wrinkles. The product portfolio of the
Mac Cosmetics includes are makeup.
Skincare moisturiser, cleansers, primer,
brushes and tools, fragrances. The
The L’Oreal has launched products like
skincare products, makeup, hair care
products, hair colour, sun protection
products and perfumes for the women
customers. The L’Oreal also has products
for the men customers also such as
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products of the Mac cosmetics are famous
among the women customers as because
of the good quality of the product (Batat
2019).
professional product division and body
shops.
Place The Mac Cosmetics products are famous
among the customers globally. The
headquarters of the company is in Toronto
in Canada. The Mac Cosmetic is spread in
all over the world across 120 countries.
Mac Cosmetics only prefer to sell their
products with the authorize retailers and
boutiques. The company has also
developed an online market in year 2017
L’Oreal has grown and is now present in 5
continents and 130 countries. The
products are sold at retailer and
departmental stores and also in salons and
in their own brand outlets. They have
cosmetics stores and the online market.
L’Oreal was having online market a way
before since 2007.
Price Mac Cosmetics decide the price, which is
high product price from its competitors.
The product is famous with the women
customers and due to goodwill of the
brand and product quality, the customers
pay astronomical price.
L’Oreal products determine price
according to customers and they pay a
premium price for the products owing to
quality and reliability over competitors.
The L’Oreal has maintained the price
strategies for all class of the customers
(Maisarah 2016).
Promotion Mac Cosmetics target the high society
customers and have less promotion
strategies. The Mac has the loyal
customers who purchase the product at
the price also (Lee et al., 2016).
L’Oreal has focused on the advertisement
strategies this brand is famous among all
the celebrities and all class of women
customers. The promotional activity is
made on Television, print media and
social media as well. There are various
salons of the L’Oreal for both men and
women.
People The Mac cosmetics focus on the
employees who can sell product to the
customers of the high-class society. The
stakeholders invest in the company
The L’Oreal has the employees both the
stores and the salons run by the
companies. The company focus on the
customers of all class of the society. The
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because of the reliability of the brand
name (Batat 2019).
stakeholders invest in the company
according to the profit made by the
company.
Process The company product price is high due to
which have limited supplies. The Mac
cosmetics have limited distribution to the
big stores and showrooms.
The company makes products and have a
huge demand among the customers. The
supplies are in big stores as well as on the
retailer stores also.
Physical
evidence
The Mac Cosmetics only sell their
products and does not provide any of the
services of the salons individually.
However, the Mac is a loyal brand so it
attracts customers from all over the world
(Saidani and Sudiarditha 2019).
L’Oreal company not only sell its
products but also have physical stores of
beauty salons. The L’Oreal has developed
the loyalty for its brand in past few years.
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The different tactics used by the Mac Cosmetics to achieve their objectives are as follows
The branding tactics used by the Mac Cosmetics are (MAC Cosmetics vs Rimmel London,
2017) recognised below -
Product Differentiation Strategy
 The product available in limited Edition and have distinct packaging
 The size of the product is large and permanence of long lasting pigments of the product
 The durability of the product is long lasting to fulfil customers demands
 There are different blends of the pigments which can fulfil the need of the customers
worldwide.
 The product of the Mac is good to skin and suit to 99% customers to can match the
demand of the women customers easily.
Pricing Strategy
 The cost of the product is less than the product benefited to the customers.
 The quality used in the product justifies the premium skimming price
 The different product have multi segment pricing
 The product is complementary which is more used by the customers.
 The Mac focuses upon the loyalty of the customers towards the brand.
Promotional Strategy
 The Mac provides to use the product by the professionals and celebrities. The tested and
then launch the product policy is a strategy of the company to promote the brand.
 The customers are allowed to use free tester before purchase of the product. This
satisfies the customers in order to buy the makeup and skincare products.
 The Mac cosmetics build its creditability by having a policy quality over the price. This
has gained awareness among the customers and builds its goodwill over the past years.
 The programs and events were organised by the brand in order to promote its product in
among the customers.
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 The Mac has used social media to popularise its brand at large to the customers. The
company shows the various makeup tutorials and advertisements on how to use the
products.
Motivating action
 The Mac Cosmetics has the tendency to motivate and reward the employees in selling the
product.
 The Mac Cosmetics also build and organise various awareness programs related to skin
care and has awarded to customers in order to motivate them to purchase the product.
 The Mac Cosmetics serves products to all races and ages women customers.
 The brand promised for things i.e. value, distinctive, consistently delivered and kept over
time.
The above are the strategies, which are fulfilled by the Mac cosmetics in order to receive trust of
the customers and remain loyal towards the brand. The pricing strategies have benefited the
customers to attract them towards the loyalty if the brand. The product differentiation strategies
have made the Mac Cosmetics product different from the other brands which have given rise to
satisfaction of the customers and more customers prefer to purchase the product of the Mac
Cosmetics. The employees of the company are being satisfied with the plans implemented by
the company through motivation action. The promotion strategy has increased the sales and
demands of the product which has raise the profit in the business by the company.
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There are different strategic marketing plan that can be implemented by the Mac
cosmetics by 7Ps of the marketing mix to achieve the objectives of the company business
are as follows:
Product: The product is always a main element, which has to be sold to the customers by the
company in order to gain the profit. The Mac cosmetics have gained its important by selling its
product all over the world and it is popular among the customers. The Mac ha only focused on
the customers of the high-class society and only the women customers. The Mac cosmetics can
launch new products for men customers in order to expand its more business worldwide. The
planning can be made by surveying how many men customers are interested in using the Mac
products. The product can be related to hair care product such as shampoo and body care
products etc. This can increase the more demand of the product as the customers would be
increase (Reed 2015).
Place: The place is defined by the Company according to the demand by the customers of the
product. The Mac Cosmetics believes to choose the place according demand and supply of the
product. Mac Cosmetics has the limited store and only supply of the products. In order to expand
their business, the company can sell its products to retailer stores and local dealers. The company
can also open the makeup studio and salons for attracting more customers towards their brand.
This develops the direct relationship between the customers and the company and helps the
company in attaining its objectives (Chęś 2016).
Price: The Company determine price according to the product value and costing in making the
product. The other factors for deciding price are the cost of competitor product and the
willingness of the customers purchase. The Mac cosmetics though do not decide the price
according to the competitor company such as L’Oreal Revlon etc. The prices of the Mac
products are comparatively high which can be affordable by the all sections of the customers.
The company can launch products, which can have comparatively less price and can be used by
the more customers. This can help the company to gain more demand and profit and increase the
business globally more (Yang and Lee 2016).
Promotion: The promotion of the product is necessary for the customers to acknowledge about
the products of the company. The Mac Cosmetics has comparatively less promotional activities
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in comparison to L’Oreal, Revlon, Maybelline and other competitor companies. The Mac
cosmetics can increase its promotion and advertisement tactics in order to gain more attraction of
the customers. The company can use the way like television. print media such as newspaper,
magazines etc to advertise about the product launching and about the existing product in the
market too. In today global world, the best way of advertising cosmetic product is through social
media like facebook, Instagram and youtube. The Mac cosmetics have started its makeup
tutorials at various platforms of the social media which has to be increased more in order to
achieve more objectives of the company (Alina 2018).
People: In order to run a company the most important people of the company are its employees,
stakeholders and customers. The Mac Cosmetics have stakeholders who trust the brand name but
in order to increase more stakeholders the company must show more profits and advertise its
product demand in its annual report. The employees of the company are limited as brand is
popular to a limited and one class of the society. Hence, the employee’s recruitment are done in a
limited prospective. The Mac cosmetics must make more products for the other class of the
people that can generate more employment in the company. The customers of the company are
also limited, the loyal customers are attached to the brand but the price is not affordable by
customers at large. The company can make product, which can attract more customers and
increase more demand of the product. The company can target both men and women customers
that can further certainly bring more profits to the company (Mohammad 2015).
Process: The process is a way of manufacturing and distribution of the product among the
customers. The Mac Cosmetics have limited distribution only limited to the big stores and
showrooms. The company has a policy to supply products to authorised dealers and boutiques.
This has limited the range of selling of the products and the customers demand is low. The
company can engage its product by distributing the products at the retail stores, which can
increase the demand of the product among the customers. The supplies must be increased with
the demands of the customers. The Mac cosmetics can open its individual stores more in the
countries so that customers can purchase the products only to a brand of Mac cosmetics (Anjana
2018).
Physical evidence: The physical evidence is important to provide the service to the customers
more easily. The Mac cosmetics have only limited stores and products selling related to makeup
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and skincare. The company do not have the salons and makeup studio to provide services to the
customers. Many of the competitor company have launched salons and makeup studio which not
only sell their products but also provide the services to the customers. The customers enjoy the
facilities of salon and more closely observe the products and willing to purchase. This can
increase the sale of the products. The Mac cosmetics can also open salons and makeup studios in
order to attract more customers. This can help the company to grow more and achieve more
profits.
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References
Abidemi, B.T., Halim, F.B. and Alshuaibi, A.I., 2017. Service marketing mix, market orientation
and Organizational Performance: A proposed conceptual model. Asian Journal of
Multidisciplinary Studies, 5, p.7.
Alina, I., 2018. The Effect of Online Promotion on Consumer-Based Brand Equity Components
in the Color Cosmetics Market.
Anjana, S.S., 2018. A study on factors influencing cosmetic buying behavior of
consumers. International Journal of Pure and Applied Mathematics, 118(9), pp.453-459.
Batat, W., 2019. Experiential Marketing: Consumer Behavior, Customer Experience and The
7Es. Routledge.
Chęś, A., 2016. The middle eastern market of cosmetics and toiletries: characteristics underlying
demand and potential for growth. Studia Ekonomiczne, 303, pp.114-133.
Lee, Y.G., Yim, B.H., Jones, C.W. and Kim, B.G., 2016. The extended marketing mix in the
context of dance as a performing art. Social Behavior and Personality: an international
journal, 44(6), pp.1043-1056.
MAC Cosmetics vs Rimmel London. (2017). The Marketing Mix. [online] Available at:
https://courtneylweb.wordpress.com/the-marketing-mix/ [Accessed 20 Jun. 2019].
Maisarah, M., 2016. The impact of marketing mix elements on consumer preference towards
supplement product among UUM students (Doctoral dissertation, Universiti Utara Malaysia).
Mohammad, H.I., 2015. 7PS marketing mix and retail bank customer satisfaction in northeast
Nigeria. British journal of marketing studies, 3(3), pp.71-88.
Mohammad, H.I., 2015. 7PS marketing mix and retail bank customer satisfaction in northeast
Nigeria. British journal of marketing studies, 3(3), pp.71-88.
Reed, J., 2015. The Beauty Gap: Black Women and the Relationship Between Beauty Standards
and Their Decision to Purchase MAC Cosmetics (Doctoral dissertation, University of Georgia).
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Saidani, B. and Sudiarditha, I.K.R., 2019. Marketing Mix-7Ps: The Effect on Customer
Satisfaction. Jurnal Pendidikan Ekonomi Dan Bisnis (JPEB), 7(1), pp.72-86.
Yang, D.J. and Lee, C.W., 2016. In-store promotional mix and the effects on female consumer
buying decisions in relation to cosmetic products. International Journal of Management,
Economics and Social Sciences, 5(2), pp.35-56.
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