Marketing Portfolio - MARKETING 9: MAC Foundation Analysis, Fall 2019

This assignment presents a comprehensive marketing portfolio for MAC Foundation, examining various aspects of its business strategy. The analysis begins with an assessment of the external environment, including technological, economic, socio-cultural, regulatory, environmental, and demographic trends impacting MAC's marketing plan. It then delves into the competitive landscape, comparing MAC with direct competitors like Revlon, Maybelline, and Lakme, highlighting product offerings, pricing strategies, distribution channels, and promotional tactics. A SWOT analysis is conducted to evaluate MAC's strengths, weaknesses, opportunities, and threats. The portfolio also explores MAC's unique selling propositions and rationalizes its competitive advantages. Finally, it considers Global Citizenship and Equity (GC&E) perspectives, specifically focusing on environmental sustainability and social responsibility initiatives, such as recycling programs and animal testing policies. The assignment concludes with a list of references used in the analysis.

Running Head: MARKETING 1
Assignment title: Marketing Portfolio- MAC Foundation
Date: 20 September 2019
Name of class:
Instructor’s name:
Name:
Student number:

MARKETING 2
Trends and changes occurring in external environment that impact MAC Foundation
marketing plan.
a) External Trends b) Implications
Technology
MAC make use of e-commerce for
distributing and selling their products,
which simultaneously benefit the business
distribution channels.
Positive: Technological innovation help in
MAC product innovation.
Negative: Technological inclusion might
increase product price.
Economic
In the economy of Canada, the consumer
price index has increased by 1.7% and has
come across with a rise in core inflation of
around 2.2% as compared with last year.
Positive: Business expansion help in
increasing rate of employment and bring
growth in economy.
Negative: High price of product often
create different between classes in
economy.
Socio- Cultural
MAC foundation target people from every
sex, age, and race. The market is more
aware of corporate social responsibility
which adversely impacts them because of
Animal Testing involvement.
Positive: Social responsibility of MAC
towards the society help in building
company reputation.
Negative: Different cultural demands often
impact the business if they are not able to
fulfil it.
Regulatory Positive: Product, competitive and health
and safety regulations impact product

MARKETING 3
As China expect that all the imported
products of MAC should be tested on
animals, which negatively impact company
ethics (Bhasin, 2019).
demand.
Negative: Different Acts in different
countries impact the business
Environmental
MAC provides its products worldwide, and
that’s why its geographical location is
huge. It has 500 stores in Canada, the UK,
and many other countries.
Positive: Worldwide expansion of business
create availability of product
Negative: MAC should ensure that
chemicals used in cosmetics should not
harm the environment.
Demographics
Demographics related to location, age,
race, and gender is highly valuable, as it
supports in developing promotional
strategies. If the rate of birth increases, then
MAC will get older customers and has to
analyse a new group of customers and
adapt cosmetics as per customer needs
(Silva, 2011).
Positive: MAC come up with different
range of products for both genders. It can
include products for infants.
Negative: With business expansion for
different age group, quality should not be
compromise (Bhasin, 2019).
c) Actions Plans
Price: MAC has adopted premium pricing strategy
Place: MAC has 100 stores independent stores in 70 countries
Promotion: MAC endorse its products through popular make artist by word of mouth
(Bhasin, 2019).

MARKETING 4
Product: MAC offer different make-up products
Competitive environment for MAC Foundation
a) Direct competitors
MAC
Foundation
Revlon Maybelline Lakme
Product MAC offers
different make-
up products like
glitter, face
palettes,
highlighting,
bronzer and
blush,
foundation, and
powder. Its
brand includes
MAC Studio
NC35 Powder
Foundation
Mascara of
different length
and shades
It offers Kajal,
lip colour with
brands like
COLORSTAY,
ULTRA HD,
and SUPER
LUSTROUS
It also offers
nail and hair
products and
many other
grooming tools
Maybelline
products are all
related to colour,
innovation, and
style. It offers a
wide range of
products like
Mineral power
blush, colour
sensational
lipsticks, baby
lips lip balm,
Foundation, etc.
(Lee, 2008).
Lakme offer a
wide range of
products like
Lakme
radiance
complexion
compact,
absolute Blur
perfect
makeup
premier, gloss
stylish lip
gloss, true
wear nail
colour, etc.
(Bhasin,
2018).
Price MAC has
adopted a
premium pricing
It has adopted a
competitive
pricing
It has adopted
mid-premium
It has adopted
pocket
friendly rates

MARKETING 5
strategy for its
products, which
is higher from its
competitors.
strategy. It has
also set
different prices
for the upper
class and
middle class.
pricing policy for all its
customers
Place Currently, MAC
has 100 stores
independent
stores in 70
countries.
Revlon has its
presence in
more than 100
countries
Its major focus
is on retail
channels and
merchandise
stores
It holds a strong
distribution
network and has
become a leader
in initiating
mass-market
retailing.
It includes
retailers and
distributors to
meet customers
through
supermarkets,
drugstores,
specialty stores,
hypermarkets
and discount
stores (Bhasin,
It has 1200
sales outlet
along with
beauty
advisors. It
make its
products
available
through
stockiest,
distributors
and retailers.

MARKETING 6
2019).
Promotion MAC endorse its
products through
popular make
artist by word of
mouth.
Revlon has
conventional
way of
promotion for
creating brand
awareness. It
also connect
with customers
through social
media
It has launched
different ad
campaigns to be
shown on
magazines, TV,
billboards and
social media
Lakme
promote
through TV,
newspapers,
billboards,
fashion
magazines
and social
media like
blogs,
Twitter,
Facebook and
YouTube.
b) Unique Selling Difference
MAC has various unique selling points in terms of its brand USP. It has a huge range of
products and cosmetics. It offers different options for everyone and for all skin types. The
company has its own website, where they sell products that are also available in stores. The
company offers high-quality products, which are worth of price (Bhasin, 2019). The company
has received amazing feedback from customers, which offer an advantage to brand.
c) Three points that rationalize your unique selling difference
1. MAC Foundation is named under top three global brand under makeup category

MARKETING 7
2. MAC has released tests, which has depicted enhancement in smoothness and fairness
ins kin
3. In 2016, MAC launched MAC Selena and within few hours all were sold out. This
shows the popularity of brand (Brands: MAC Cosmetics, 2015).
SWOT Analysis
a) SWOT
Strengths
1. MAC Foundation is available in
around 200 locations in around 15
countries of world.
2. It hold socially responsible
reputation
3. It offer high quality products
Weaknesses
1. MAC has limited brand awareness
in comparison with other
international players
2. Controversy over the product
launch created problem for
company
Opportunities
1. MAC has very informational
website
2. It sell its products through retailer
website
3. It enhances brand reach and its
presence internationally (Ozlek,
2015).
Threats
1. MAC face threat from increasing
online competition
2. Retailers are selling other product
line

MARKETING 8
4. MAC take benefit of selling its
products online
b) Implications
Three things MAC needs to do differently:
1. As different culture react differently towards products and technological innovation,
MAC foundation should come up with a different range of products as per the culture
and skin type.
2. MAC should come up with different pricing strategy for a different class of people, so
that customer range can be enhanced (Ozlek, 2015).
3. MAC should promote their brand by more platforms like social media, television,
magazines.
Global Citizenship and Equity (GC&E) perspective on MAC Foundation
a) Environmental/sustainability
MAC has recycled and rewarded scheme, under which all the used or old cosmetic
bottles can be recycled. If the return of old packaging return they offer one lipstick as a
reward.
b) Social Responsibility
MAC, under its social responsibility, has taken initiatives like VIVA GLAM by its
unique culture. It also prohibits the policy of animal testing and also extends the same for all
its suppliers (Sharma, 2017).

MARKETING 9
References
Bhasin, H. (2018). Marketing Mix of Lakme – Lakme Marketing Mix. Retrieved from
https://www.marketing91.com/marketing-mix-lakme/
Bhasin, H. (2019). Marketing mix of MAC Cosmetics. Retrieved from
https://www.marketing91.com/marketing-mix-of-mac-cosmetics/
Bhasin, H. (2019). Marketing Mix of Maybelline – Maybelline Marketing Mix. Retrieved
from https://www.marketing91.com/marketing-mix-maybelline/
Brands: MAC Cosmetics. (2015). Retrieved from
http://www.prettycompact.com/brands/mac-cosmetics
Lee, C. (2008). Maybelline New York Cosmetics. Retrieved from
http://www.slideshare.net/Iampinkcrystal/Maybelline
Ozlek, J. (2015). Brand Analysis: MAC Cosmetics. Retrieved from
https://lipsandlashdotco.files.wordpress.com/2016/02/brand-analysis-mac-
cosmetics.pdf
Sharma, V. (2017). Marketing Mix of M.A.C. Cosmetics. Retrieved from
https://www.linkedin.com/pulse/brief-study-marketing-mix-mac-cosmetics-varsha-
sharma
Silva, B. (2011). MAC cosmetics: Digital storyteller. WWD, 202(82), 5-n/a. Retrieved from
http://search.proquest.com.libproxy.temple.edu/docview/902177698?accountid=1427