Branding Strategies of MAC Cosmetics

MAC is an international Cosmetics brand, founded by Taskan and Angelo Targeted to fashion industry professionals in 1984.

In 1991, First US store opened in NYC Greenwich Village.

Estee Lauder gains control (bought 51%) and MAC Aids Fund introduced in 1994.

Also Lauder purchased remaining 49%, MAC had sales of ~ $100 mill in 1998.

Currently MAC sells to consumers in 79 countries.

Timeline of MAC Brand:

 

MAC's Brand Promise:

MAC promises on 4 things:

1. Distinctive
2. Valued
3. Consistently delivered
4. Kept over time 

Elaborately MAC brand promises a creative makeup experience giving you the confidence to stand out and be stylish.

 

Statements of MAC's Vision:

• A time when creativity and beauty rule for all ages , all races, all sexes.
• To create confidence and celebrate individuality through the MAC look.
• Plaful irreverence, cool confidence, socially-aware.

MAC Brand Culture:

• Artefacts: Eye-catching, chic, stylish High profile backstage make up studio
• Rural Values: Elite, Equality
• Fashions: Makeover.

MAC Objectives:

• In long term objective is to consistently deliver trusted creativity.
• In short term objective is to staing ahead of fashion and trends.

Brand Essence:

 

1. Product: MAC products are colorful, bold, custom. Matches every skin tone. Cutting-edge seasonal lines.
2. Environment: Backstage makeup studio, Cosmopolitan, Professional.
3. Behavior:  involves low-pressure, collaborative, expert advice, trusted, playful.
4. Communication: Word-of-Mouth, SEO(Search engine optimization), Print & Outdoor advertising Public Relations.

 MAC Brand Pleasure:  

1. Personal Satisfaction:
• Creative license
• Individuality
• Confidence
• Style
2. Group/Belonging:
• Aspirational
• Social badge
• Insider
• Fashionista
3. Cultural/ Elite Equality:
• Diversity of Icons
• Special attention paid to opinion leaders
• Staff of make-up artists

Branding Strategies of MAC:

Product Differentiation Strategy: 

1. Enhancers:
• Develop different blends of pigments to match customer's needs in international markets(BRIC)
• Develop different durability/intensity of pigments and viscosity to meet PRO versus consumer/ customer needs.
2. Drivers:
• Durability of long lasting pigments and relatively large product sizes.
3. Quality Aesthetics:
• Distinct packaging and limited edition.

Pricing Strategy:

1. Value-in-Use Premium Pricing strategy: 
• Consumer benefit > cost
  
2. Company/Product Life-cycle:
• Brand extensions justify premium "skimming" price
• Multi-segment Pricing
3. Comparable Prices to Competitors: 
• Differentiations
• Focus on customer loyalty
• Cost of switching
4. Product Line Pricing: 
• Complementary Products

Promotional Strategies:

1. Word of Mouth:
• Free products for professionals, celebs and media
• Builds credibility, awareness
2. Motivating Action Communication:
• "Back to MAC" - Rewarding top performers, motivating high polentials
• CRM
3. Social media:
• Customer Participation on website, FB and Twitter
• Message comprehension, frequency
  

Economies of scope through product family strategy:

Aggregated materials and production processes over brand extensions lowers VC, allows for more frequent extensions.

MAC Cosmetics Social media strategy triumphs over L'Oreal, Benifit and Chanel: 

 

MAC Cosmetics runway social media in cosmetics sector:

The cosmetics sector has a long way to go to rival the most compelling brands in the social media space, particularly if you compare the sector as a whole to the fashion retail space. The report, Color Cosmetics Social Engagement Report analyses the social media strategies of 20 of the UK’s most recognizable cosmetic brands including MAC, Clinique, L’Oreal, Chanel, Benefit, Estee Lauder, Clarins, Dior, Maybelline and Lancome.

Uniquely, the report doesn’t just rank the brands that produce the greatest volume of content or have the largest following but looks at how brands engage with their customers, where they engage with them and how brands are benefiting from this engagement.

MAC Cosmetics was revealed as the runaway leader, dominating the colour cosmetics sector due to the seamless integration between its social channels and brand website. It has a highly targeted content strategy that is fulfilling the needs of consumers, earning shares and interactions on the key social media platforms including Facebook, Twitter and YouTube.

A Multi-Faceted Approach to Marketing by MAC Cosmetics:

Direct Mail and QR codes:

Recently, the MAC Cosmetics team launched a new campaign that combines direct mail with mobile marketing. Many times, retail stores will use direct mail to reach out to possible customers or distribute rewards coupons to consumers enrolled in their loyalty programs. Rather than targeting potential customers locally or offering exclusive discounts to rewards program members, MAC took a slightly different approach with their recent campaign.

Customers who shop at MAC’s U.S. flagship store in New York City and sign up for the retailer’s mailing list at check out receive special deliveries from the retailer. But these deliveries aren’t coupons or free products. To say thank you for recent purchases, MAC Cosmetics has created a postcard with a friendly note and a scan-able QR code. When a mobile user scans the code, they have the option of viewing a series of tutorial videos related to some of MAC Cosmetics’ most popular products. Customers can easily access tips and tricks from professional makeup artists on how to make the most of their recent purchases.

Social Awareness by MAC: 

1. Viva Glam Aids Fund:
• Counseling Session for an HIV+ Woman
• Safer-sex kits (Condoms, Lube, Dental Dams and Information)
• Deliveries of dietetically sound meals
• Pair of school Shoes for a child orphaned by Aids.
2. MAC PRO
3. Cruelty-free products 
4. Back to MAC recycling 

Recommendation:

1. Long-Term:
• CRM via Digital Marketing (MAC Mobile App, Database Tracking on website)
• MAC Micros (Mini Sizes)
• All Sexes (Men's Product Line, Male Role Models)
2. Short Term:
• Employee Attitudes: Increase store & employee evaluations focus on industry pros introduce store etiquette page positivity.

In a nut-shell, 

The MAC cosmetics brand has experienced great success by evolving to stay relevant, utilizing effective positioning in terms of core values, brand personality and customer relationships as wel as consistently delivering  the brand promise over time.

References: 

• http://en.m.wikipedia.org/wiki/MAC_Cosmetics
• http://en.m.wikipedia.org/wiki/Estée_Lauder_Companies
• http://www.maccosmetics.jobs/mac/our-history.html
• http://www.stickyeyes.com/2014/04/23/mac-cosmetics-runaway-leader-in-cosmetics-social-engagement-report/ 
• Byron, E. (2009) "Estee Lauder profit Declines 30%" Wall Street Journal. [Online] Feb 6 p.B3
• Estee Lauder, 2008. Annual Report 2008. [Online]
• Ross, E. & Holland, A. (2007) "MAC Cosmetics - Two Franks are Better than one" The Cool Hunter. [Online] Apr 24
• Sacks, D. (2007) "MAC Cosmetics" Fast Company. [Online] Dec 19
• Wharton Business School, (2008) "MAC AIDS Fund's Nancy Mahon: Tying the Cause to the Brand" knowledge@Wharton. [Online] Oct 15