MAC Cosmetics: Retail Trends, SWOT Analysis, and Recommendations
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This report provides a comprehensive analysis of MAC Cosmetics within the context of the retail industry. It begins with an introduction to the retail sector, followed by an examination of current trends in the cosmetic industry, including the rise of smart beauty and e-makeup. The report then delves into an analysis of MAC Cosmetics, providing a background of the company and a detailed SWOT analysis, highlighting its strengths, weaknesses, opportunities, and threats. The report emphasizes MAC's strengths in professional makeup artistry and its extensive product range. It also discusses the company's weaknesses related to pricing and market adaptability. Finally, the report offers recommendations for MAC Cosmetics to enhance its online presence, leverage social media, and adapt to changing market demands, including an action plan to increase its market share. The conclusion summarizes the key findings and emphasizes the importance of adapting to industry trends for continued success.
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Table of Contents
INTRODUCTION...........................................................................................................................1
RETAIL TRENDS...........................................................................................................................1
Retail industry trends with prominent research...........................................................................1
ANALYSIS AND DISCUSSION...................................................................................................3
Background of selected company................................................................................................3
SWOT Analysis...........................................................................................................................3
RECOMMENDATIONS.................................................................................................................5
Recommendations and action plan..............................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
APPENDIX......................................................................................................................................8
INTRODUCTION...........................................................................................................................1
RETAIL TRENDS...........................................................................................................................1
Retail industry trends with prominent research...........................................................................1
ANALYSIS AND DISCUSSION...................................................................................................3
Background of selected company................................................................................................3
SWOT Analysis...........................................................................................................................3
RECOMMENDATIONS.................................................................................................................5
Recommendations and action plan..............................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
APPENDIX......................................................................................................................................8


INTRODUCTION
Retail Industry is a procedure which is useful and selling and exchanging goods and services
to the respective customers with the help of multiple channels of distribution to gain competitive
advantage and profitability. In simple words it is considered as an activity for a procedure of
providing commodities to general public usually in small amount (Balaji and Roy, 2017).
Retailers other individuals to satisfy the needs and requirements of customers by offering them
required commodities by using well established supply chain. This industry is concerned with the
collection of various commodities from the manufacturer in large amount of quantities and
supplying it to their respective customers in small lots. Cosmetic industry as a group of
Companies that goes from manufacturer to the customers and offer their beauty products to other
individuals. In order to carry forward this report company considered is Mac Cosmetics which is
the cosmetic manufacturer founded in Toronto, Canada in 1984 by two partners named Frank
Tuskan and Frank Angelo. Headquarter of companies in New York and MAC is an acronym for
Makeup Art Cosmetics. In addition to this report is going to cover current Trends of Retail
Industry with suitable research. It also analyse the strength and weaknesses of company in terms
of whole industry and its performance and lastly on the basis of its weakness suitable
recommendations is provided with prominent Action Plan.
RETAIL TRENDS
Retail industry trends with prominent research
International cosmetic market is expected to earn 429.8 billion by 2022 as it is determined
by analyzing their forecast period of 2016 to 2022. For this cosmetic market include makeup and
beauty products which is the combination of chemical and useful in order to enhance the
appearance and odor of human body as these products include skincare deodorants makeup and
many more that are used by many individuals. Retail stores include supermarket brand outlets
and stores in order to distribute their product as it is considered as their distribution channel
(Pantano and et. al., 2017). In relation with the growth in global economics it leads to change the
lifestyle of individuals and also increase the demand of cosmetic products because of dynamic
climatic conditions that encourages the growth of cosmetic market full stop despite of this now
people are more conscious about their skin which tends to increase the demand of natural, herbal
1
Retail Industry is a procedure which is useful and selling and exchanging goods and services
to the respective customers with the help of multiple channels of distribution to gain competitive
advantage and profitability. In simple words it is considered as an activity for a procedure of
providing commodities to general public usually in small amount (Balaji and Roy, 2017).
Retailers other individuals to satisfy the needs and requirements of customers by offering them
required commodities by using well established supply chain. This industry is concerned with the
collection of various commodities from the manufacturer in large amount of quantities and
supplying it to their respective customers in small lots. Cosmetic industry as a group of
Companies that goes from manufacturer to the customers and offer their beauty products to other
individuals. In order to carry forward this report company considered is Mac Cosmetics which is
the cosmetic manufacturer founded in Toronto, Canada in 1984 by two partners named Frank
Tuskan and Frank Angelo. Headquarter of companies in New York and MAC is an acronym for
Makeup Art Cosmetics. In addition to this report is going to cover current Trends of Retail
Industry with suitable research. It also analyse the strength and weaknesses of company in terms
of whole industry and its performance and lastly on the basis of its weakness suitable
recommendations is provided with prominent Action Plan.
RETAIL TRENDS
Retail industry trends with prominent research
International cosmetic market is expected to earn 429.8 billion by 2022 as it is determined
by analyzing their forecast period of 2016 to 2022. For this cosmetic market include makeup and
beauty products which is the combination of chemical and useful in order to enhance the
appearance and odor of human body as these products include skincare deodorants makeup and
many more that are used by many individuals. Retail stores include supermarket brand outlets
and stores in order to distribute their product as it is considered as their distribution channel
(Pantano and et. al., 2017). In relation with the growth in global economics it leads to change the
lifestyle of individuals and also increase the demand of cosmetic products because of dynamic
climatic conditions that encourages the growth of cosmetic market full stop despite of this now
people are more conscious about their skin which tends to increase the demand of natural, herbal
1
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and Organic products that develop potential opportunities for manufacturer to gain their
customers for longer period of time.
By determining the current market trends in cosmetic industry smart beauty and e-make-
up’s in Trend and followed by many individuals across countries. As smart beauty is the skin
care system and a Japanese electronic product that scan the skin in order to identify blemishes
with the help of serum and even out the skin tone of an individual in order to give them flawless
skin. This device represents and reveals the healthy skin in few minutes with the help of
identifying suitable skin care product (Zheng, 2016). Moreover e-makeup is considered as an
artist that create eccentric makeup look as it is a digitalization way to explore skin and also
termed as the filters which is provided on the Snapchat and Instagram. Describe the collaboration
with many artists medicines and models on Instagram along with some big brands and order to
develop looks that Bloom and sprout on the screen. Reason behind for the development of this
Trend is outlandish looks which is helpful in order to enhance the skin tone and share the photos
and videos online.
In present time the GDP of various countries is positively influences the international
cosmetic market and tends to continuously relies in the economy of various countries raise is the
spending capabilities of individuals. Moreover the market of cosmetic Industries depends on
various categories of cosmetics mode of sale Gender and demographic areas. For this the
category segment includes skin and sun care products, deodorants, makeup and fragrances.
Customer for purchasing the cosmetic products majorly preferred the retail mode for sale as it is
2
customers for longer period of time.
By determining the current market trends in cosmetic industry smart beauty and e-make-
up’s in Trend and followed by many individuals across countries. As smart beauty is the skin
care system and a Japanese electronic product that scan the skin in order to identify blemishes
with the help of serum and even out the skin tone of an individual in order to give them flawless
skin. This device represents and reveals the healthy skin in few minutes with the help of
identifying suitable skin care product (Zheng, 2016). Moreover e-makeup is considered as an
artist that create eccentric makeup look as it is a digitalization way to explore skin and also
termed as the filters which is provided on the Snapchat and Instagram. Describe the collaboration
with many artists medicines and models on Instagram along with some big brands and order to
develop looks that Bloom and sprout on the screen. Reason behind for the development of this
Trend is outlandish looks which is helpful in order to enhance the skin tone and share the photos
and videos online.
In present time the GDP of various countries is positively influences the international
cosmetic market and tends to continuously relies in the economy of various countries raise is the
spending capabilities of individuals. Moreover the market of cosmetic Industries depends on
various categories of cosmetics mode of sale Gender and demographic areas. For this the
category segment includes skin and sun care products, deodorants, makeup and fragrances.
Customer for purchasing the cosmetic products majorly preferred the retail mode for sale as it is
2

the way in which they can easily test and analyse the product in prominent way (Peres and et. al.,
2017). However online mode of purchase for cosmetic products is determined as the rising trend
among the customers and many other countries at Geographic level.
ANALYSIS AND DISCUSSION
Background of selected company
MAC cosmetic is the manufacturer of beauty products in cosmetics and incorporated in
1948 in Canada. The products of company was originally intended for makeup professionals
indirectly sold prospective customers across the world and because of its good quality product
company has become a global brand full stop as in 1990 the brand over hundred stores across the
world earning 200 million Francs. In addition to this company is named as one of the top three
Global makeup brands with annual turnover of around 1 billion and has 500 independent stores
in which 30 belongs to France.
SWOT Analysis
Strengths: This factor describe the best of company in terms of its operations image and
competitors as employees of makeup are selected and termed as the makeup artist of
professionals who have direct connections and experience in this industry as it makes
them export and also helps in influencing their respective customers (Arunraj and
Ahrens, 2016). Moreover company was initially developed professional models in order
to represent and promote the products buy strong lights and glare of Ramp. For this they
forecast their customers including their models, stylist, photographers etc. In order to
3
2017). However online mode of purchase for cosmetic products is determined as the rising trend
among the customers and many other countries at Geographic level.
ANALYSIS AND DISCUSSION
Background of selected company
MAC cosmetic is the manufacturer of beauty products in cosmetics and incorporated in
1948 in Canada. The products of company was originally intended for makeup professionals
indirectly sold prospective customers across the world and because of its good quality product
company has become a global brand full stop as in 1990 the brand over hundred stores across the
world earning 200 million Francs. In addition to this company is named as one of the top three
Global makeup brands with annual turnover of around 1 billion and has 500 independent stores
in which 30 belongs to France.
SWOT Analysis
Strengths: This factor describe the best of company in terms of its operations image and
competitors as employees of makeup are selected and termed as the makeup artist of
professionals who have direct connections and experience in this industry as it makes
them export and also helps in influencing their respective customers (Arunraj and
Ahrens, 2016). Moreover company was initially developed professional models in order
to represent and promote the products buy strong lights and glare of Ramp. For this they
forecast their customers including their models, stylist, photographers etc. In order to
3

introduce their brand and also influences the fashion world with the help of famous
fashion magazines. In addition to this, MAC cosmetics offer broad range of products
such as lipstick, blush, eyeliner, mascara, concealer, foundation, eyeshadow and many
more and also have mineral base makeup and most of its products include lotion as well
as powder form. In addition to this the product range of company is well known for their
lipstick which is designed exclusively for the brand as sum of the innovative
characteristics include Bullet shape and the texture. Moreover the packaging of the
products of company in signature black case which is the attractive feature of brand to
influence their customers.
Weaknesses: Company does not have large amount of weakness as the major weakness
that the face is related with their pricing of products as its products are largely available
for the professional and celebrities. Its products are only affordable for the selected
people as it relies on the value of sale. Moreover, MAC cosmetics is based on the
research which is done by their sales and marketing expertise and its products are more
suitable for the white skin and less suited for dusky skin tones and because of this it is not
so popular in Asia (Gullo and et. al., 2017). In addition to this company also face
difficulty in order to adapt changes as per the demands of market full stop for this the
cosmetics sector is filled with numerous players as the market is highly fragmented
which describes the ability to cope up with the changing demands that affects the market
position of company.
Opportunities: This component describe the various opportunities which arises in the
environment and surrounds the business in order to increase their returns. MAC
cosmetics has various market opportunities what is available for them and for this firstly
is to create more freestanding stores instead of having small design in the larger
departments. Moreover the millennial generation and the number of individuals who use
makeup on regular basis increases in terms of number (von Briel, 2018). Determine the
growth of online shopping of people repeat the experiment with new looks and also
capitalise fonts in huge amount and relation with branded cosmetics. In addition to this
many of the emerging countries and economics like India and China makeup is
considered as the traditional occasion which depicts the regional orientation is important
and Critical. As if company consider each region and area in terms of an opportunity
4
fashion magazines. In addition to this, MAC cosmetics offer broad range of products
such as lipstick, blush, eyeliner, mascara, concealer, foundation, eyeshadow and many
more and also have mineral base makeup and most of its products include lotion as well
as powder form. In addition to this the product range of company is well known for their
lipstick which is designed exclusively for the brand as sum of the innovative
characteristics include Bullet shape and the texture. Moreover the packaging of the
products of company in signature black case which is the attractive feature of brand to
influence their customers.
Weaknesses: Company does not have large amount of weakness as the major weakness
that the face is related with their pricing of products as its products are largely available
for the professional and celebrities. Its products are only affordable for the selected
people as it relies on the value of sale. Moreover, MAC cosmetics is based on the
research which is done by their sales and marketing expertise and its products are more
suitable for the white skin and less suited for dusky skin tones and because of this it is not
so popular in Asia (Gullo and et. al., 2017). In addition to this company also face
difficulty in order to adapt changes as per the demands of market full stop for this the
cosmetics sector is filled with numerous players as the market is highly fragmented
which describes the ability to cope up with the changing demands that affects the market
position of company.
Opportunities: This component describe the various opportunities which arises in the
environment and surrounds the business in order to increase their returns. MAC
cosmetics has various market opportunities what is available for them and for this firstly
is to create more freestanding stores instead of having small design in the larger
departments. Moreover the millennial generation and the number of individuals who use
makeup on regular basis increases in terms of number (von Briel, 2018). Determine the
growth of online shopping of people repeat the experiment with new looks and also
capitalise fonts in huge amount and relation with branded cosmetics. In addition to this
many of the emerging countries and economics like India and China makeup is
considered as the traditional occasion which depicts the regional orientation is important
and Critical. As if company consider each region and area in terms of an opportunity
4
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helps in scaling up for their business and useful in increasing their sales and revenues by
achieving their prominent goals and targets.
Threats: This element describe the issues which company currently faces and it is
divided among its competitors and pricing as both of the factors can become bread in the
growth and success of business (Li, Tan and Sha, 2016). Furthermore, modern people and
customers are concerned about their health risk and skin in terms of uses of makeup with
chemicals as it influences the natural beauty and this factor negatively impacts the sale of
cosmetic brands. Moreover its main competitors include Sephora, Maybelline, L’Oreal
and many more.
RECOMMENDATIONS
Recommendations and action plan
Fashion industry is currently facing frequent changes in the business environment which
forces retailers to charge low cost for its products and also provide flexible in terms of designs in
quality and it can become the key strategy to maintain profitable position in order to increase the
demand of market (Wei and et. al., 2018). For this company to adopt various changes and
conduct market research in order to acquire larger market share and improve its productivity and
profitability. By examining the above discussion in order to improve the productivity and
profitability of Retail Industry and company named Mac Cosmetics need to adopt changes
prominently in order to survive in frequently changing business environment. For this prominent
recommendation which Mac Cosmetics need to adopt is discussed as under:
MAC cosmetics need to increase its online presence as because of its widespread of
Technology of company offer more beauty products to its potential customers. As
company also provide them convenience to purchase 24*7 latest helpful for the
customers to compare products with their Rivals. This factor allows them to target more
customers which is useful in enhancing the profitability.
In addition to this respective company need to create awareness of its product with the
help of social media techniques such as Facebook, Instagram, Twitter and many more in
order to promote its products full stop as it is helpful for the company to develop huge
presence for its products in market as the increased target customer base tends to increase
its sales and revenues (Castillo, 2017).
5
achieving their prominent goals and targets.
Threats: This element describe the issues which company currently faces and it is
divided among its competitors and pricing as both of the factors can become bread in the
growth and success of business (Li, Tan and Sha, 2016). Furthermore, modern people and
customers are concerned about their health risk and skin in terms of uses of makeup with
chemicals as it influences the natural beauty and this factor negatively impacts the sale of
cosmetic brands. Moreover its main competitors include Sephora, Maybelline, L’Oreal
and many more.
RECOMMENDATIONS
Recommendations and action plan
Fashion industry is currently facing frequent changes in the business environment which
forces retailers to charge low cost for its products and also provide flexible in terms of designs in
quality and it can become the key strategy to maintain profitable position in order to increase the
demand of market (Wei and et. al., 2018). For this company to adopt various changes and
conduct market research in order to acquire larger market share and improve its productivity and
profitability. By examining the above discussion in order to improve the productivity and
profitability of Retail Industry and company named Mac Cosmetics need to adopt changes
prominently in order to survive in frequently changing business environment. For this prominent
recommendation which Mac Cosmetics need to adopt is discussed as under:
MAC cosmetics need to increase its online presence as because of its widespread of
Technology of company offer more beauty products to its potential customers. As
company also provide them convenience to purchase 24*7 latest helpful for the
customers to compare products with their Rivals. This factor allows them to target more
customers which is useful in enhancing the profitability.
In addition to this respective company need to create awareness of its product with the
help of social media techniques such as Facebook, Instagram, Twitter and many more in
order to promote its products full stop as it is helpful for the company to develop huge
presence for its products in market as the increased target customer base tends to increase
its sales and revenues (Castillo, 2017).
5

Action Plan
Currently the objective of companies to increase 20% of its market presence and share of
its product and for this company take suitable actions which are:
In modern time the manufacturers of company put emphasis on developing fresh products
and unique products which is useful for the different ingredients of cosmetic products. To
sustain and maintain the market position Mac Cosmetics need to adopt various strategies
in order to become leading company in fashion Retail Industry and also tracked from
recent developments of the past two years.
For this its prominent strategies include product launch, acquisition, expansion and
agreement of effective strategies is opted by MAC cosmetics.
CONCLUSION
From the preceding information it is summarised that retail stores are rapidly expanding
their business in order to earn more profitability and with the help of their expansion
employment level of country is also improve. Retail companies need to identify the requirements
of individuals and their respective customers in order to develop commodities to attract large
customer base that tends to increase profitability. In order to develop Product Company need to
identify current trends of industry and also determine the internal environment in order to
develop various strategies to manage and deal with changes. Moreover, weaknesses of company
are described with prominent recommendation and action plan it is useful to attain success in
future.
6
Currently the objective of companies to increase 20% of its market presence and share of
its product and for this company take suitable actions which are:
In modern time the manufacturers of company put emphasis on developing fresh products
and unique products which is useful for the different ingredients of cosmetic products. To
sustain and maintain the market position Mac Cosmetics need to adopt various strategies
in order to become leading company in fashion Retail Industry and also tracked from
recent developments of the past two years.
For this its prominent strategies include product launch, acquisition, expansion and
agreement of effective strategies is opted by MAC cosmetics.
CONCLUSION
From the preceding information it is summarised that retail stores are rapidly expanding
their business in order to earn more profitability and with the help of their expansion
employment level of country is also improve. Retail companies need to identify the requirements
of individuals and their respective customers in order to develop commodities to attract large
customer base that tends to increase profitability. In order to develop Product Company need to
identify current trends of industry and also determine the internal environment in order to
develop various strategies to manage and deal with changes. Moreover, weaknesses of company
are described with prominent recommendation and action plan it is useful to attain success in
future.
6

REFERENCES
Books and Journals
Balaji, M.S. and Roy, S.K., 2017. Value co-creation with Internet of things technology in the retail
industry. Journal of Marketing Management. 33(1-2). pp.7-31.
Pantano, E and et. al., 2017. Does innovation-orientation lead to retail industry growth? Empirical
evidence from patent analysis. Journal of Retailing and Consumer Services. 34. pp.88-94.
Zheng, F., 2016. Spatial competition and preemptive entry in the discount retail industry. Columbia
Business School Research Paper. (16-37).
Peres, I.T and et. al., 2017. Optimization in inventory-routing problem with planned transshipment: A
case study in the retail industry. International Journal of Production Economics. 193. pp.748-
756.
Arunraj, N.S. and Ahrens, D., 2016. Estimation of non-catastrophic weather impacts for retail
industry. International Journal of Retail & Distribution Management.
Gullo, P and et. al., 2017. State-of-the-art technologies for transcritical R744 refrigeration systems–a
theoretical assessment of energy advantages for European food retail industry. Energy
Procedia. 123. pp.46-53.
von Briel, F., 2018. The future of omnichannel retail: A four-stage Delphi study. Technological
Forecasting and Social Change. 132. pp.217-229.
Li, Y., Tan, W. and Sha, R., 2016. The empirical study on the optimal distribution route of minimum
carbon footprint of the retail industry. Journal of Cleaner Production. 112. pp.4237-4246.
Wei, C and et. al., 2018. Location-based pricing and channel selection in a supply chain: a case
study from the food retail industry. Annals of Operations Research. pp.1-26.
Castillo, J., 2017. The relationship between big five personality traits, customer empowerment and
customer satisfaction in the retail industry. Journal of Business and Retail Management
Research (JBRMR). 11(2).
Online
Cosmetics Industry Overview. 2020. [Online] Available through
<https://www.alliedmarketresearch.com/cosmetics-market>./
7
Books and Journals
Balaji, M.S. and Roy, S.K., 2017. Value co-creation with Internet of things technology in the retail
industry. Journal of Marketing Management. 33(1-2). pp.7-31.
Pantano, E and et. al., 2017. Does innovation-orientation lead to retail industry growth? Empirical
evidence from patent analysis. Journal of Retailing and Consumer Services. 34. pp.88-94.
Zheng, F., 2016. Spatial competition and preemptive entry in the discount retail industry. Columbia
Business School Research Paper. (16-37).
Peres, I.T and et. al., 2017. Optimization in inventory-routing problem with planned transshipment: A
case study in the retail industry. International Journal of Production Economics. 193. pp.748-
756.
Arunraj, N.S. and Ahrens, D., 2016. Estimation of non-catastrophic weather impacts for retail
industry. International Journal of Retail & Distribution Management.
Gullo, P and et. al., 2017. State-of-the-art technologies for transcritical R744 refrigeration systems–a
theoretical assessment of energy advantages for European food retail industry. Energy
Procedia. 123. pp.46-53.
von Briel, F., 2018. The future of omnichannel retail: A four-stage Delphi study. Technological
Forecasting and Social Change. 132. pp.217-229.
Li, Y., Tan, W. and Sha, R., 2016. The empirical study on the optimal distribution route of minimum
carbon footprint of the retail industry. Journal of Cleaner Production. 112. pp.4237-4246.
Wei, C and et. al., 2018. Location-based pricing and channel selection in a supply chain: a case
study from the food retail industry. Annals of Operations Research. pp.1-26.
Castillo, J., 2017. The relationship between big five personality traits, customer empowerment and
customer satisfaction in the retail industry. Journal of Business and Retail Management
Research (JBRMR). 11(2).
Online
Cosmetics Industry Overview. 2020. [Online] Available through
<https://www.alliedmarketresearch.com/cosmetics-market>./
7
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