MAC COSMETICS- STP ANALYSIS

Page 1

BY: ANJALI

SASI

APARNA BRINDA SANJANA SHRADDHA

M S

MENON VIRMANI


Presentation Agenda

October

Key topics for discussion

2020

01

02

03

04

05

06

Introduction

4P's of Marketing

STP Analysis

Competitor

Brand Comparison

Conclusion


Founders

Need gap

Make-Up Art Cosmetics

They were dissatisfied by the

began in Toronto, Canada by

shortage of cosmetics that

Frank Toskan, a makeup

photographed well and

artist and photographer, and

decided to build their own.

Frank Angelo, a salon owner. Branding

Where did it start?

Initially, they produced the cosmetics in their kitchen and sold them to fellow makeup artists, models, and photographers directly from the salon

Their makeup came in black pots rather than compacts, and they took a sleek utilitarian style. Employees

The counter was staffed by professional makeup artists, which was a first in the

First store

business.

The team established M.A.C. in March 1984 from a counter in a Toronto department shop, as the magazine credits piled up and word-of-mouth popularity rose.

Most popular product

Deep matte red lipstick, gained popularity after appearing in a picture shoot with Madonna


M.A.C was founded with a creative vision to fill the gap between makeup artistry and fashion photography.

To be the world’s leading makeup authority among both professional make-up artists and consumers. To meet customers’ need for superior quality services and to provide a secure & challenging work environment for all employees.

To meet customers’ need for superior quality services and to provide a secure & challenging work environment for all employees.


NO. OF STORES

500 independent stores, and is sold in 105 countries across the world.



Product Place Price Promotion




Price is an important for many customers, especially in the beauty industry. Consumers have a perception that companies that charge a higher price for their products, offer better quality and more recognisable things. M.A.C, a high end beauty brand, is favoured in the world of cosmetics but charge a lot more than drugstore makeup, so ultimately urge older people and influence people of a higher class to buy, as they have more disposable income. The product price ranges between Rs 650 - Rs 4490 where a Kohl costs minimum and the eyeshadow pallette costs the maximum. To be cost-effective, M.A.C Cosmetics has also come up smaller version of its favourite products. The famous matte lipstick originally costs Rs 1700 and the smaller version costs Rs 1050. However, this pricing does not suit school and college students, they do see it as a long-term investment because of the quality and status attached.


M.A.C Cosmetics has created a name for itself by working with professionals from the world of fashion and relies heavily on word-of-mouth publicity Unsolicited endorsements from celebrities have helped M.A.C Cosmetics in reaching new heights. M.A.C Cosmetics is based on eccentric and flashy colours and high defined visuals to attract the customers. M.A.C realises its responsibility towards the community and has set up MAC Aids Fund in the year 1994 to support victims of HIV/ADS via its charitable trust.


Geographic Segmentation

Demographic Segmentation

SEGMENTATION Psychographic Segmentation

Behavioural Segmentation


GEOGRAPHIC SEGMENTATION India is one of the largest markets of MAC Cosmetics. Product stock differs according to the location. MAC Cosmetics was the first business to offer products for different skin tones.


DEMOGRAPHIC SEGMENTATION Inclusive of all genders. Secondary target is 18 - 38 year olds females of all ethnicities. Individuals that belong to the upper middle class income. MAC tries to target middle class income groups by selling the product in small size.


PSYCHOGRAPHIC SEGMENTATION Fashion forward, seeking for individual or unique look, outgoing personality. The brand encourages consumers to identify themselves on the basis of their self-reflection. Consumers may feel a sense of superiority and wealth when purchasing or wearing the brand. Apart from shopping, these individuals have hobbies like eating out and vacationing. Typical MAC Cosmetics customers are “Innovators,” where they are always seeking and using new information.


BEHAVIOURAL SEGMENTATION



Name: Aliza Age: 18-30 yrs old Gender: Female Character traits: Outgoing, confident, fashion lover. Lifestyle: Likes to party, has an active lifestyle, which includes a busy social calender, but also activities like fitness. Young fashion conscious individual who is seeking a unique look without compromising on the latest fashion trends.


POSITIONING

MAC Cosmetics is brilliantly doing the product positioning from the beginning and created a unique position in the mind of consumers in the cosmetic industry. MAC has focused on a price-quality positioning strategy that emphasises a higher-quality product that is thought to exist. Users see MAC as a more expensive and advanced cosmetic brand than its competitors like Clinique and Sephora. MAC Cosmetics uses product innovation and brand image as the differentiation strategy to stand unique among the competitors.

Perceptual Map of M.A.C Cosmetics

The brand image is differentiated among the competitors and uniquely positioned.


Employees. Wide range of products. Unique Lipsticks and Cases. MAC Program.

SSENKAEW

S HT G NE RT S

Association with the fashion industry.

Pricing. Unavailability of MAC Cosmetics PRO to general public. Very few discounts.

SWOT ANALYSIS All products must be advertised as cruelty free. Increase brand loyalty with MAC programmes.

STAERHT

S EI TI N U T R O P P O

Focus on opening more retail stores.

Increasing Competition.


COMPETITORS


BRAND COMPARISON

Clinique has been the closest competitor of MAC Cosmetics in India in terms of pricing and quality.


PRODUCT RANGE

TARGET MARKET

BRAND POSITIONING

M.A.C

CLINIQUE

High recall value for its makeup products.

Stands out for skin care products.

Millennials, Gen Z make up artists and influencers, working professionals.

Gen X, Millennials and working class

High-end brand, quality over price.

Affordable, dermatologists recommended.


IN A NUTSHELL....... Most preferred makeup brand. Inclusivity of all skin tones has encouraged many to buy their products. A platform of self expression, fluid sexuality, identity or gender. Introducing Male beauty makeup line. Provides on-point online services like live chat, virtual makeup service, and virtual try on for better selection. In the end, an aspirational brand for many!


ALL AGES. ALL RACES. ALL SEXES.


T H A N K

Y O U !


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