Mac Co

In: Other Topics

Submitted By ladygem6
Words 482
Pages 2
I. Summary of Facts
A. Market – cosmetics
1. Two revealed segments
a. Professionals – make-up artists, models and actors
b. Retail consumers – young, fashion-conscious individuals
2. Annual retail sales were Cdn$500 million worldwide by 1999
a. 27% from professional make-up artists
b. 23% from professional industry
c. 50% from retail customers
3. Products sold in international market
a. North America
b. Europe
c. Asia
4. Economic market – monopolistic competition
B. Product
1. Cosmetics and related accessories
a. Lipsticks
b. Eye shadows
c. Blush
d. Foundation
e. Brushes
f. Make-up bags/cases
g. Skin treatment products
2. M.A.C-PRO product line for professionals only
a. Cream colors
b. Primary colors
c. Mixable lip-cream
d. Professional tools (brushes, sponges, make-up cases)
3. Benefits
a. Core – improve/enhance appearance
b. Secondary
1) Social status
2) Have fun with various looks
3) Affordable
4) Boosts fashionability and self-esteem
5) Provides conformity and acceptance
4. PLC – maturity
C. Price
1. Lower end of prestige market
2. Preferred Professional Industry Discount (PPID) card
a. 40% for make-up artists
b. 20% for models, actors, make-up students
3. Lipstick pricing
a. M.A.C. $12 per lipstick
b. Department stores $14 - $20 per lipstick
c. Mass-market $4 - $8 per lipstick
4. Elasticity – relatively elastic to relatively inelastic
D. Promotion
1. No advertising or in-store gift-with-purchase promotions
2. Socially/environmentally-conscious programs
a. Back-to-M.A.C. rewards program for recyclable containers
b. Viva Glam fundraiser for AIDS and HIV
3. Celebrity make-up artists employed at fashion shows/special events
4. Word of mouth repeats and media attention
5. Expansibility – somewhat expansible
E. Place
1. Partnered stores
2. Company Owned and Operated Stores
3. 1-800 customer service call center…...

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