M • A • C COSMETICS CAMPAIGN Katey Meyer
About M•A•C
FACTS Owned by a division of $6.3 billion cosmetics giant Estée Lauder Cos. Inc. Manufactures: Skincare, brushes, fragrances, and cosmetics for the face, eyes, and lips Sold: Exclusively in department stores, M•A•C boutiques and M•A•C website Distribution: 66 countries across the globe in 1000 outlets Cosmetics Industry: $17.72 billion in 2010 Slogan: ”All ages, all races, all sexes.” 2
PRODUCT HISTORY
M•A•C cosmetics, Makeup Art Company, is a brand of Estee Lauder and was founded in 1984 by Frank Toskan, a makeup artist and Frank Angelo, a hairstylist. M•A•C offers professional, makeup-artist quality cosmetics with more than 100 shades for eyes, lips and face to choose from. The company was invented specifically to endure the lighting conditions faced by fashion models. M•A•C was originally marketed to people in the high fashion industry. They have been able to advertise themselves unconventionally by giving away their products to makeup artists who have worked with celebrities. The quality and durability of M•A•C has given the company the recognition in the celebrity world. In 1994 M•A•C was the first cosmetics brand to bring a charity, which was for AIDS, into the retail environment. It is called Viva Glam.
will promote their AIDS Fund and Viva Glam lipstick. PROBLEM: Many are still unaware of M•A•C’s Viva Glam products and MACAIDS Fund, especially in countries outside the United States • With the use of print advertising in the United States and OOH Guerrilla Interactive ads globally, the hope is that sales will increase from the current $202 million of Viva Glam products
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WHY
PURPOSE: To provide M•A•C with an advertising campaign for the calendar year 2012 that
• The M•A•C AIDS fund was established in 1994 to support men, women and children living with and affected by HIV/AIDS globally • The 1st color was red which symbolizes the fight against AIDS/HIV throughout the world • 100% of the selling price of M•A•C’s Viva Glam products provide help men, women and children living with HIV and AIDS • Viva Glam Lipstick is priced at $14 • The fund had raised $202 million dollars • Viva Glam now offered in 6 shades of lipsticks
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PRODUCT HISTORY - VIVA GLAM
Viva Glam Product Information
Current Advertising
• M•A•C products are for fashion forward women and men. They target toward professional makeup artists, however, most of their products are sold publicly so anyone can buy M•A•C makeup
M•A•C’s current advertising consists of:
• Although M•A•C is now available to the average consumer, the company maintains its focus on professional makeup artists. Through its M•A•C PRO program it offers professionals a 40 percent discount. Other professionals in the industry, such as models and costume designers get 30 percent off
• Color print ads in fashion and women’s interest magazines • Internet advertising • Free samples for bloggers reviews, which keeps word of mouth going • Pay Per Click ads • Celebrity endorsements (professional makeup artists, models and celebrities) for Viva Glam
• M•A•C artists are not commissioned salespeople, so customers do not feel pressured to buy products • Average number of products customers buy when they come to buy one item < 2.6 • Average amount customer spends > $45 • 83% of new customers are referrals
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SITUATION ANALYSIS
Company and Product Description
STRENGTH: Tie with fashion industry, “Back to M•A•C recycling” program, all ages/sex/race, HIV/AIDS charity work WEAKNESS: No distribution outside M•A•C pro stores and high-end department stores, price is more than some people can afford, only professionals can get M•A•C Pro colors, Viva Glam collection only known in the United States OPPORTUNITIES: Introduce Viva Glam collection in other countries, Growing market in Asia, product reviews on the Internet by bloggers, International expansion in Brazil and India THREATS: Online shopping experience could take away from M•A•C’s excellent in-store customer service
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SITUATION ANALYSIS - SWOT
SWOT
+ Shiseido has been around since 1872 + It is the oldest cosmetics company in the world, specializing in skincare + They also own NARS - Similar products and packaging as M•A•C - NARS does not advertise - Bigger market in Japan & Europe, however profits have decreased in Japan due to recent 2011 Tsunami
+ Sold at many retailers + Makeup for use under harsh lighting + Charitable work for children's and health-related organizations - More expensive than M•A•C products - Website is hard to navigate, poorly designed - Limited selection of vibrant colors
+ Large selection of foundation, special effects makeup + HD, ‘unretouched,’ campaign + Offer professional makeup school - Limited selection of vibrant colors - No charity organization - Not available in as many countries as M•A•C
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SITUATION ANALYSIS -- COMPETITION
Top 3 Competitors
Behaviors & Attitudes
Gender: 94% of M•A•C’s audience is female Age: 18-34 Race: African American & Asian
• Heavy Internet and Magazine users • Supportive of AIDS charities and research for the cure • This group wants high quality and value • They have a huge interest in fashion, trends, design and makeup • They consider themselves fashion trendsetters- not followers
Income: $75,000-$150,000 Occupation: • 66% work in Professional and Related Occupation • 35% work in Sales and Office Occupation Education: High index of attending college, graduating college and postgraduate school Family: Never married or currently engaged • Have children between ages of 12 months – 2 years old • Home value is $500,000+
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SITUATION ANALYSIS - TARGET MARKET
Target Market
Seasonality
Geography: The target market lives primarily in West and Northeast areas of United States. Wealthy Asian Americans tend to live in the West coast, while wealthy African Americans live in the Northeast area. From this information, the cities we will advertise will be: • New York, NY • Queens County, NY • Los Angeles, CA • San Francisco, CA • Fort Washington, MD
• M•A•C products are not seasonal, in terms of when the target market seeks to purchase products • They are seasonal in the sense that M•A•C products are ‘limited edition.’ • There is a new collection that comes out every 1-2 months • M•A•C lipsticks are among bestselling gifts during the Holidays • The change from Spring/Summer and Fall/Winter seasons is also a primary purchase factor
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GEOGRAPHY & SEASONALITY
Geography
• Increase brand awareness of M•A•C Viva Glam products in the United States by 5% • Increase sales of M•A•C Viva Glam lipsticks over the current 202 million sold
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MARKETING OBJECTIVES
• Increase market share to be equal or close to 10%
• The consumer will be exposed a minimum of 3 magazine advertising messages that promote Viva Glam • Create awareness among non-users of M•A•C Viva Glam products during beginning of Spring/Summer and Fall/Winter seasons • Maintain the image of M•A•C as the leader in high-fashion makeup artistry among core consumer group
• NATIONAL CAMPAIGN / BUDGET: $10,000,000
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MEDIA OBJECTIVES
• Reach at least 80% of potential market within the 1st month of advertising
isn’t appropriate to promote Viva Glam because M•A•C products have a unique boutique feel to them. The audience is very niche. Not everyone uses high-end makeup. The target market doesn’t have time to sit down to watch TV because they live busy lives. They enjoy browsing their favorite magazines and surfing the Internet during their free time. The advertising will begin through the Internet to build reach quickly. Print will be added to provide a detailed message of M•A•C Viva Glam. The guerrilla stunt will feature a street art wall advertisement made entirely of M•A•C Viva Glam lipstick. There will be interactive projection boards around that, which will be digitally updated with social media messages and ‘digital’ kisses. The digital kisses are the target market’s commitment to the cause. They are scanned through a hand-held scanner. The print and internet ads will run for 6-12 months, while the guerrilla campaign will run on World AIDS Day, December 1st 2012.
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MEDIA STRATEGIES
The target market are heavy magazine and Internet users. Television advertising
websites (NyMag.com, WhoWhatWear.com, StyleList.com, Refinery29.com) • Print ads in magazines (Marie Claire, Glamour, Elle, Essence, Ebony and Cosmopolitan) • OOH Guerrilla and Interactive- Interactive Viva Glam wall art advertisement on World AIDS Day WHAT: Street art advertisement on wall made entirely of M•A•C lipstick • Surrounding the lipstick ad there will be an interactive component that projects social media updates, and personal stories of people who have benefited from the AIDS Fund. Hand-held tablet scanners allow people to commit to M•A•C’s cause by scanning their kiss digitally. The kisses will show up on the interactive screen to show individual’s pledge and support towards HIV/AIDS. People can navigate the screen similar to an iPad. WHY: Generate exposure in countries outside the US, increase sales of Viva Glam, and generate awareness surrounding the HIV/AIDS issue and fund WHEN: The guerrilla campaign will run on World AIDS Day, December 1st 2011 WHERE: Will be featured in the top five global cities: • London • New York • Los Angeles • Tokyo • Paris 13
MEDIA MIX- OUTLINE
• Internet advertising- microsite/social media, PPC, product reviews, videos and ads on blogs and
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STREET ART- LIPSTICK MOCKUP
• This mockup would be on a wall outside in five global cities • Made of lipstick • Copy will be made of sticker decals • Background will be unique, as it is an original creation in each city • The measurements of the wall ‘art’ will be 6 x 8 ft (1.8 x 2.4 m) • The mockup demonstrates the lipstick’s texture and the shades available
photo and social media updates through Twitter and Facebook • Allows users to interact and touch screen to view individual stories • Users ‘scanned kisses’ can show up on these interactive boards along with their Twitter handle.
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INTERACTIVE- OOH MOCKUP
• Features live
COST PER THOUSAND
IMPRESSIONS
TOTAL COST
WhoWhatWear
$10
20,000,000
$200,000
Nitrolicious
$10
20,000,000
$200,000
Google AdWords
$10
40,000,000
$400,000
BellaSugar
$10
14,000,000
$140,000
Refinery29
$10
20,000,000
$200,000
StyleList
$10
40,500,000
$405,000
NYMag
$10
95,500,000
$955,000
TOTAL
=
$2,500,000
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MEDIA MIX - INTERNET
SERVICE
RATES
INSERTIONS
MRI AUDIENCE
Marie Claire
$109,880
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3,914,000
$30
$879,040
Glamour
$209,254
5
12,579,000
$16
$1,046,270
Elle
$141,210
6
5,624,000
$25
$847,260
Ebony
$63,886
11
10,756,000
$5
$702,746
Cosmopolitan $237,000
4
18,452,000
$12
$948,000
Essence
6
8,198,000
$11
$575,400
$95,900
TOTAL
Cost Per TOTAL COST Thousand
=
$4,996,716
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MEDIA MIX - MAGAZINE
MAGAZINE
Product
# NEEDED
Cost per Board
TOTAL
Interactive Board
5
$45,500
$227,500
Wallscape
5
$65,000
$325,000
Bus Shelters
42
$45,500
$1,911,000
TOTAL
=
$2,463,500
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MEDIA MIX – GUERRILLA, INTERACTIVE & OOH
(Costs inflated by 30%)
Internet: WhoWhatWear, InStyle.com, Net-A-Porter, BellaSugar, Refinery29, Nymag, Nitrolicious) Magazines: Allure, Brides, Cosmopolitan, Ebony, Elle, Essence, Glamour, Harper’s Bazaar, InStyle, Lucky, Marie Claire, US Weekly, Vanity Fair, Vogue, W
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MEDIA OUTLET
Genres: Bridal, News and Entertainment, Travel, Women’s Fashion
Media
Allocated
Actual Spent
50% Print/Magazines
=
$5,000,000
=
$4,996,716
25% Internet
=
$2,500,000
=
$2,500,000
25% Guerilla/Interactive
=
$2,500,000
=
$2,463,500
=
$10,000,000
=
$9,960,216
TOTAL
Budget Magazine Internet OOH
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BUDGET SUMMARY
The media budget is as follows:
FLOW CHART
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• EBSCO: Business Source Elite • http://www.maccosmetics.com/makeup_artistry/newsworthy.tmpl • http://www.fastcompany.com/magazine/108/open_customers-mac.html
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WORKS CITED
• MRI Spring 2010 Product, Lipstick & Lipgloss, Used in last 6 months. Base: Total U.S. Adults • Business and Company Resource Center, Industry Overview, Company Overview • SRDS