Cooper minerals, perfumed oils, cream made of sheep fat, lead and soot were used as face make-up to bestow beauty and style. In 1984 Make-up Art Cosmetics, better known as M. A. C was founded in Toronto, Canada by Frank Toskan and Frank Angelo. Toskan was a former make-up artist and photographer and Angelo a former hair salon owner. Both men saw the need for cosmetics that held up under high powered lights found in a photo shoot or runway show. Toskan and Angelo’s test market was in the basement at the Toronto department store Simpson’s. M. A.
C was a hit, with its slick modern packaging and its hip and unique names. Once celebrities and fashion moguls started to use M. A. C its popularity exploded worldwide. M. A. C has become the leading brand of professional cosmetics. Majority interest acquired in 1994 by The Estee Lauder Companies Inc a $6. 3 billion dollar cosmetic tycoon. Sold in over 60 countries and territories M. A. C is a multimillion dollar bricks and clicks organization. M. A. C’s product categories include lip, eye, face, nail, skincare, brushes, tools/accessories, and fragrances. M.
A. C products are used in films, television, theatre, music, fashion, special events and award shows. M. A. C’s philosophy is all races, all sexes, and all ages. M. A. C also has the website www. macpro. com designed only for cosmetic professional. They can learn new tips and get discounts on products. PRODUCT: M. A. C eyes product line consist of several different products from primer, shadow, mascara, liner, brow and lash. Its shadows play apart in all of M. A. C’s different collections and come in over 100 colors with creative names and different textures.
Made in Canada by M. A. C chemist and manufactured by The Estee Lauder Companies Inc. Their shadows are highly pigmented applies evenly and blends well. Any product in the Viva Glam collection like the Warm Chill eye shadow, proceeds go directly to the M. A. C Aids foundation. Unlike other cosmetic companies M. A. C only hires skilled make-up artist to represent their products. M. A. C is one of the only companies that when you purchase their products a skilled make-up artist will show you exactly how to use the products by demonstration. M. A.
C holds make-up seminars for their customers and conducts runway shows. Single powdered shadows are packaged in a round black container with a clear top in order to see the color and the bottom has the colors name. Combination shadow sets normally are in a rectangular shape. The majority of the time black, compact, and a sleek design are consistent with all M. A. C product packaging regardless of the product. Make-up Art Cosmetics trademark is M. A. C and is printed on all of their products and storefronts. To the left is an image of a wall in a Make-up Art Cosmetics store.
PRICES: Compared to its popular competitors like Lancome $16. 50 US per shadow, Nars at $22. 00 US per shadow, Vincent Longo at $24. 00 US per single shadow, M. A. C’s eye shadows is only $14. 00 US below the market price for a single eye color shadow and even less expensive at $32. 50-$36. 00 US for color combination sets. M. A. C’s shadow prices don’t come with sticker shock and should attract any class of people. They don’t shout “I’m high end and only the rich can afford me”. The prices are affordable and they don’t fluctuate.
The shadows are one fixed price and although they do not go on sale or clearance they are still a bargain for professional style products for consumers. PLACE: Before M. A. C consumers as I can get M. A. C product a channel of distribution must take place. M. A. C’s channel consists of a manufacturer The Estee Lauder Companies Inc – a billion dollar corporation, to several different wholesalers such as Florence’s Enterprises and Sage Within, masses of different retailers. Some retailers of M. A. C cosmetics are the M. A. C. Stores, Nordstrom’s, Bloomingdales, and Macys to name a few.
M. A. C is sold in over 60 countries and territories to date. M. A. C can also be purchased on its website at www. maccosmetics. com. The consumer has the option to purchase M. A. C at their favorite department store or online within the comfort of their home. Marketing intermediaries are critical in this billion dollar industry of beauty and M. A. C cosmetics with its popular status is no different, M. A. C is too “big time” not to have marketing intermediaries in place. M. A. C cosmetics can be found in almost every US mall, whether it is in a popular department store or a M.
A. C exclusive store providing place utility. PROMOTION: M. A. C stays innovative, very artsy, fashion forward and their advisements are always very colorful demanding attention when walking by a poster or flipping thru the pages of a fashion magazine. Their advertisements are never restrained always dramatic and in your face. M. A. C has a number of collections and one of them is their Viva Glam collection and celebrities are always used for this collections advising. Such celebrities as Pamela Anderson, Fergie, Eve, and Dita Von Tesse can be seen in Viva Glam advertisements.
Expressing to consumers that if it’s good enough for this celebrity then it is good enough for you also creating brand association. All of the collections proceeds go to the M. A. C Aids fund. M. A. C even collaborated with Disney in 2005 when M. A. C. Cosmetics introduced the Tint Toons collection based on classic Disney animals like Daisy Duck. (HOWARD, H 2010). As noted earlier M. A. C is a bricks and clicks organization. On their website www. maccosmetics. com standard shipping is free in the US with any $60 purchase and free standard shipping on and summer selects purchases until July 8th in the US only.
M. A. C also mails brochures to existing customers advertising their newest collections. I just received a little pamphlet promoting their new Neo SCI-FI collection. Eye shadows remain the same price at $14. 00 US but come in a neon orange container versus the usual black. With spunky names like Time & Space, Magnetic Fields, and Expensive pink. You will not see M. A. C advertising in a commercial or infomercial but you will see global advertising as they are located all over the world. M. A. C does however partner with the department store Nordstrom’s and take part in their annual in house fashion shows.
After the show guest can sign up with M. A. C to have a M. A. C artist do their make-up for free. During this time an artist will makeup your face encouraging you to purchase M. A. C products. I can contest it works every time! SRTATEGIC DECISION MAKING: M. A. C’s organization has utilizes the marketing mix in a victorious way creating a Multi million dollar organization that is well-known worldwide. Their shadows come in almost every color imaginable and some with names like Shadowy Lady, Nocturnelle and Poison Pen. M. A.
C’s products are priced below market when compared to its competitors for professional style goods. Like most other big chain cosmetic companies M. A. C’s channel of distribution uses intermediaries and tons of retailers. M. A. C has some excellent promotional programs in place, bringing in empty containers in exchange for a free lipstick, free shipping on online purchases, using very artistic style advertisements. Hiring only professional artist and having them sell the product is genius, who better to explain a product and show you how to use it then a professional instead of a regular employee off of the street.
Donating proceeds to their AIDS fund and using trendy celebrities to promote collections. I wouldn’t change a thing, I think what M. A. C is doing works and I wouldn’t try to fix something that isn’t broken. SOCIAL RESPONSIBILITY: M. A. C practices its social responsibility through the M. A. C Aids fund founded in 1994 by Toskan and the Back to M. A. C Program. M. A. C Aids fund supports men, women and children all over the world. The proceeds earned by M. A. C when it sells a Viva Glam lipstick are given to their AIDS fund, every cent. The company had many $128 million up to date for this AIDS find.
The companies 11 board members are responsible for keeping what Toskan started in 1994 the success it is today. The Back to M. A. C Program is M. A. C’s way on helping the environment. For every seven empty M. A. C containers you return to a M. A. C store you will receive one free lipstick of your choice excluding the Viva Glam collection. ORGANIZATIONAL DESIGN: Posted in all of Estee Lauder offices are the following principles: •Strive for excellence – deliver your best. •Put your customer first. Know your customers, understand their needs and surpass their expectations. Be passionate about what you do! Enthusiasm and energy are contagious. •Never stop caring. Show concern and respect for every individual, regardless of position or title. •Understand your role in the big picture. We’re all part of a larger whole. •Look for new and better ways to do things to continually raise our standards. •Communicate! Voice your ideas, share your concerns, pass on what you know and be honest. •Be a team player. We’re stronger when we work together. •Listen when others speak. Good ideas can come from anywhere. •Be flexible.
Success depends upon willingness to adapt when situations change. •Pay attention to details – little things do make a difference. •Solve the real problem, don’t treat the symptom. •Spread the good news. Let others know when they’ve done a good job. •Smile.... and have fun! (elcompanies,2010) These are characteristics of a learning organization. Creating a sense of community in their organizational culture, caring and strong mutual relationships. Utilizing teams and empowerment in their organizational design. Promoting information sharing and leadership. Robbins & Decenzo, 2008). CEO: As of July 2006 Mr. John Demsey oversees Estee Lauder, M•A•C, Tom Ford Beauty and Prescriptives brands as well the company’s Specialty Group of brands, Bobbi Brown, Jo Malone and La Mer, which were added to his portfolio in July 2009. (elcompanies, 2010). But from 1998-2005 when Demsey was M. A. C’s president he expanded the company from 19 global markets to over 65 and is credited for making M. A. C into the billion dollar powerhouse it is today. Demsey has held several positions with the Estee Lauder corporation working his way up the ranks.
In a nutshell, I wonder in founders Frank Toskan and Frank Angelo could have ever imagined that M. A. C would turn out to be such a huge empire. M. A. C has come a long way from selling in a departments store basement to selling all over the world in the companies own brand stores and in a multitude of popular retailers. M. A. C stays innovative, creative and all the rage. Their eye shadows are far form boring with a broad range of colors with great pigment and longevity in sleek round compact design packaging. M. A. C is reasonably priced for the average fashionista to afford.