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M.A.C. Cosmetics
Casey Walters
caw13m
Final Project Marketing Strategy
M.A.C. Cosmetics
M.A.C. Cosmetics is one of the big name brand makeup companies in the world today. It
was founded in 1984 by Frank Toskan and Frank Angelo in Toronto, Canada (Chesters, A.,
2011). Today, they are owned by their parent company Estee Lauder. Estee Lauder purchased the
controlling interest of the M.A.C. Cosmetic company in the year 1994(M.A.C. Cosmetics
website, 2016). Because of how established Estee Lauder already was M.A.C. was able to
expand quickly and open stores internationally. As word of the brand spread across the world so
did their reputation. M.A.C. was one of the first companies that made sure their employees were
experts in the cosmetic industry (M.A.C. Cosmetics website, 2016). Not only is the brand and
product high quality, so is their customer service. Customers can enter a store and have someone
M.A.C. Cosmetics was originally created for professional use. Professional makeup
artists and the fashion industry were frustrated with the lack of color pigment in the makeup.
The two founders started creating makeup in their kitchen and sold them through a hair salon.
The first people that bought these products were other makeup artists, and models. As word
spread about the makeup the company began to grow. The products were exclusively available to
professionals, but the models and artists like the products so much they wanted to share with
their friends and family. Eventually this lead the company to open their doors and products to the
One of the main differences between M.A.C. Cosmetics and other cosmetic brands is
their dedication to color. While other brands focused on the skin care aspect of cosmetics,
M.A.C.s main focus was to enhance the colors and pigments so they showed up in photographs.
The brand is proud to call themselves the ultimate color authority when it comes to cosmetics
While M.A.C. is known for its pigmented color, other cosmetic companies have changed
their products. Other brands have created bright and vibrant make up in order to promote a better
product and compete in the field with M.A.C. According to MBA Skool (Mac Cosmetics SWOT
Analysis, n.d.) some of the brands that are a competition for M.A.C. Cosmetics are:
Clinique Laboratories LLC (New York City, New York): Clinique is a well-known brand
that focuses on the skin. While they have a wide range of products, people really like this brand
to improve their skin. The company was founded by a dermatologist that wanted to show people
Revlon (New York City, New York): Revlon has a wide range of cosmetics that are
typically sold for in convenience and grocery stores. Compared to other brands in the cosmetic
industry they are typically more affordable for people. Revlon also has some hair care products
more affordable on the price spectrum. They have a range of different makeup products that
come in an array of colors. Maybelline products can usually be found in convenience and
The largest competitor for M.A.C. Cosmetics is Maybelline (Mac Cosmetics SWOT
Analysis, n.d.). Maybelline has a similar product style to M.A.C. Cosmetics. Maybelline has a
lot of vivid and bold color options so their customers can experiment and express themselves.
This is similar to the concept that M.A.C. follows to attract trendy young customers into their
stores. Maybelline also has a competitive edge with their locations. Their products can be found
almost on every corner. Their products are sold in most convenient and grocery stores. That put
their products in very accessible location for customers to run in and grab something.
produced a number of commercials in Spanish to further their reach into the market. M.A.C.
Cosmetics doesnt have a lot of advertisements in Spanish. A lot of their commercials dont have
or have very little language involved in the video. They have created advertisements that dont
necessarily need to be explained, they are just showcasing the product its self. This is a great way
to show the products and show examples of different looks that can be created.
M.A.C. Cosmetics has commercials that can be viewed and understood by most of the
customers. They dont directly target the Hispanic customers that are being targeted by other
brands. Maybelline is one of the brands that has specific commercials that are in Spanish in an
effort to reach the Hispanic markets. M.A.C. is going to need to implement specific marketing
M.A.C. Cosmetics needs to incorporate the values that resonate with the Hispanic
community in order to gain their attention and business. The Hispanic market is a very important
market to get involved in because of their projected spending power. It is estimated that by the
year 2050 nearly one fourth of the woman population in America will be made up of Hispanics
(Summers, G., 2015). It is also estimated that Hispanic woman spend about three times as much
money on beauty products per month then the rest of the population (Summers, G., 2015).
M.A.C. has collaborated with celebrities to make new lines of makeup. These
collaborations bring attention and revenue to the brand. In order to connect with the Hispanic
markets M.A.C. recently created a line of products based the celebrity Selena Quintanilla, who
passed away in 1995. Even though she passed away Selena represents a wide range of the
market. Selena provides a unique opportunity for M.A.C. to market several cultures at once.
Selenas cultural duality demonstrates that its possible to embrace both American and Latino
cultures which is massively empowering to Latinos and part of her appeal today (Aroman, J.,
2016). The Selena line brought in huge amounts of Hispanic fans, who waited in lines to
purchase the products. Not only does Selena bring in revenue from fans she also peaks interest
from people who dont know what the new makeup line is about.
While, Selena is a great way to grab the attention of customers, specifically Hispanic
customers, it is important to show a genuine interest in the Hispanic community. M.A.C. chose
well. They did not just pick any famous Hispanic person. They picked someone who has a great
influence on the community and still relates to other populations. Since M.A.C. created this
interest they should continue to focus on Hispanic values and market towards this population.
Nielson, several health and beauty products are the top things Hispanics but that are not edible.
The Hispanic consumers that are purchasing the products are a younger group. The median age
of the group is twenty-seven years old (Beauty Is InBeholder, 2015). The consumers are
younger and with the projected population rate the Hispanic market is going to be a large
segment in the cosmetic industry. Because of the potential buying power and the importance on
appearance Hispanics are growing the cosmetics industry and are an important group to target.
But, not all Hispanics can be targeted the same way. Nielson segmented Hispanics into four
Latinistas: Latinistas mainly have a Hispanic background and are traditional with their
culture. They are usually the children or grandchildren on immigrants and speak Spanish. While,
they prefer Spanish Latinistas can speak English when they need to (Beauty Is InBeholder,
2015).
Heritage Keepers: Most of the Heritage Keepers speak both English and Spanish, but
rather speak Spanish. They are broadminded, but mostly centered around their Hispanic
background. They are mostly first generation people and they focus on conserving their culture
Savvy Blenders: Savvy Blenders are very modern. They want to keep their Hispanic
culture, but also want to blend cultures. They also speak both Spanish and English (Beauty Is
InBeholder, 2015).
Ameri-Fans: Ameri-Fans are the group closest to mainstream markets. They are very
modern with a little Hispanic background. They are typically not first generation and speak
While, all of these segments contribute to the cosmetic industry the Savvy Blenders and
the Ameri-Fans are the two group that will expend the most in the cosmetics industry (Beauty Is
behavior and interests of Hispanic customers if they want to reach that market. They will have to
M.A.C. Cosmetics has a very large social media presence. YouTube, Twitter, and
Facebook are the main ways that M.A.C. promotes their products through media. They post a lot
of photos featuring their new products and current promotion that the company has. The social
media accounts allow the company to interact with their customers on a personal level. On
YouTube M.A.C. has video to show people different way to mix the products to achieve a certain
look. All of these posts are posted in English. If M.A.C. is to expand their Hispanic customer
base they could make posts in Spanish or have an option to translate the content into Spanish.
Facebook is a good media outlet to reach Hispanic customers. According to the Pew
Research Center seventy-three percent of Hispanics on the internet are on Facebook (Krogstan,
J., 2015). M.A.C. is right where they need to be to reach all of the Hispanic segments. The Savvy
Blenders and Ameri-Fans may respond to the current social media posts, but they also keep some
of their culture. So, M.A.C. may be able to gain more customers by appealing to the Hispanic
culture.
Like most retail stores M.A.C. Cosmetics has their own website where customers can
look at all of their different products the company is currently selling. People often purchase item
while on the site or look at different reviews other customers have posted. At the bottom of their
web site M.A.C. has links to all of their social media accounts so customers can find their pages.
Their site also has a link that says Espaol. Customers can enter the site, click that link, and all of
the text is translated into Spanish. This is a nice feature to have so Hispanic customers who
prefer, or dont know a lot of, English can have the same access to the site and products.
Besides adding to their existing media strategy, M.A.C could look into other media
outlets to expand their Hispanic customer base. There are several different media sources that are
effective to use in order to reach the Hispanic community. According to the Pew Research
Centers Hispanic News Media Fact sheet, there are several completely Spanish television
networks and radio stations (Shearer, E., 2016). M.A.C would benefit from creating
M.A.C. Cosmetic motto is, All ages. All races. All sexes (M.A.C. Cosmetics website,
2016). Their company ideals are a key point that should be represented in the advertisements. It
shows that the company is accepting of all people and who they are. This is important because it
is a way to connect specifically with the Savvy Blenders and Ameri-Fans. Both of these
segments are more progressive groups (Beauty Is InBeholder, 2015). They are interested in
blending their cultures and M.A.C is a company that is all about accepting from all different
kinds of backgrounds. M.A.C. should look into incorporating the companys ideals into their
media strategies.
M.A.C. has implemented a few different aspects to attract Hispanic customers. While, the
steps they have taken are a good start, their efforts are not worth it if the Hispanic audiences are
unaware of what they have done. M.A.C. should create advertisements that showcase their brand,
M.A.C. Cosmetics as become one of the major cosmetics companies in the industry
today. They built their brand reputation on professionalism and quality. As a result, customers are
very loyal to the brand and enjoy the products and experiences in the store. M.A.C. needs to
improve their credibility within the Hispanic markets in order to gain Hispanic consumers.
According to Nielson, Hispanic people place a high value on personal appearance and beauty
(Hispanic customersSales, 2015). The high value placed on the products leads Hispanic
customers to put more thought into their decisions (Hispanic customersSales, 2015). M.A.C
should take into consideration what drives Hispanic customers to buy certain products. They can
then use the discovered reasons to help build a better marketing campaign to reach these
customers.
As mentioned before Hispanic have a high regard for personal appearance and spend
more time making a decision. Some of the factors that should be looked at are why Hispanic
customers choose certain products. Latinum Networks stated that Hispanics use makeup to
complete an outfit or look (Latinum Network, n.d.). It is used as a complement to their fashion. A
lot of Non-Hispanics wear makeup to cover flaws instead of wearing it for style (Latinum
Network, n.d). This leads Hispanic customer to purchase makeup that stands out more. This
typically means colorful lipsticks and eyeshadows. M.A.C. cosmetics is known for their
pigmented color because they were created for professional photography and runway. This fact
Products and styles are not the only thing that determines the buying habits of Hispanic
customers. According to Nielson, financial income plays a part it the purchasing behavior of
Hispanic customers (Hispanic customersSales, 2015). U.S. born Hispanics outspend but
Sales, 2015). The high incomes across U.S. born Hispanics is a direct relationship with their
spends habits on cosmetics. U.S. born Hispanics are more settles and accustomed to the culture
rather than Hispanics that just immigrated. Foreign-born Hispanics usually dont have as much to
spend on cosmetics because on average their income is lower than U.S. Born Hispanics
While, money is an important factor when M.A.C. Cosmetics looks at their target
markets, it is not the only factor to consider. According to Latinum Networks article Six Things
to Know about Latina Beauty Customers, fifty-seven percent of Hispanic customers say they are
on a budget. Although, when asked Hispanic customers are willing to pay more if the quality of
the product is worth it. Hispanic customers are also more likely to correlate that a higher price
Quality versus price is not the only thing to know about Hispanic customers when it
comes to cosmetics. Latinum Network gathered more insights into what drives Hispanic
customers in the cosmetics industry (Latinum Network, n.d). The other factors are:
Reasons for Makeup: As stated before Hispanic customers use makeup to complete a
look. They dont typically use the products to cover flaws. This leads to purchases of products
Plan and Explore: Hispanic customer are willing to try new products and brands of
cosmetics. However, they do not make purchases in the moment. Hispanic customers take their
Cultural Representative: When asked most Hispanic customers said that they preferred to
have a Hispanic represent the brand rather than have Spanish on the packaging. The reason for
this is Hispanics trust the information from a fellow Spanish speaking person over a non-Spanish
speaking person.
Looking at all of the factors of Hispanic customers a few crucial points can be
to use certain products so customers understand what they are and how to
purchase.
Representatives: Hispanic customers are more trusting of Hispanic
spokesperson.
These points are an insight into how Hispanic customers make their choices when they
are purchasing cosmetics. Knowing these points provides a clear picture on how to position the
brand and shape the message the company wants to relate to customers. M.A.C. Cosmetics a few
of the key factors that sway the decisions of Hispanic customers. If M.A.C. creates advertisement
that showcase the important aspects of products that interest Hispanics and include a Hispanic
Insights Leveraged
The insights found while looking at Hispanic consumers can be applied to other
multicultural segments. According to the Nielson report, the population growth of multicultural
consumers is going to greatly increase by the year 2060 (The MakingConsumer, 2015).
These numbers are important because, as a result, the percentage of multicultural consumer in
the cosmetics industry will increase. This increase also leads to the increased purchasing power
that multicultural consumers will have. This makes the multicultural consumers an important
As the population becomes even more culturally integrated it is important for marketers
and advertisers to create messages specific to those different groups. One insight from looking at
Hispanic customers is they prefer a representative of their same cultural background. The trust
was increased because a recommendation from someone customers are more familiar with is
more believable. This concept can be extended to other multicultural groups. It is easier to take
to word of someone who has the same concerns and questions when it comes to cosmetics. For
instance, a customer is trying to find a foundation to match their skin tone. A person with deeper
skin tones would take advice from someone with a similar skin tone rather than a representative
that doesnt have the same troubles. The representative show that the brand has shades that are
products before they purchase them. Products cost a lot of money so often times users want to
see how they and read testimonials of other customers who have bought the product before.
Since the cost is pretty high consumers also want to find products that are good quality so that
they price they are paying is worth it. So, some of the other strategies found while looking at
Evaluation of Effectiveness
If M.A.C. Cosmetics implemented some of these marketing strategies, they will need to
evaluate how they worked. There are a few different ways to collect data to determine the answer
on the effectiveness of the strategies. Some of the options are listed below (LibWeb Library,
n.d.).
scenario. The interviewer can ask specific questions or more broad open ended questions for the
interviewee to answer.
Focus groups: A focus group is a small group of people with an instructor. The purpose of
this is to start a dialogue and see how people perceived that marketing strategies and their
experience.
strategies in a natural setting. The researcher takes very descriptive notes on what happened and
Case Study: A case study is an in-depth look at peoples responses. They can be about an
individual or a group of people. Typically, it is over a period of time. The aim is get as many
variables as possible in order to gain more information about the event they are researching.
One single evaluation strategy is going to give an accurate answer. There is always the
chance of outliers and inaccurate accounts. A few opinions are not always the opinion of the
whole community. For more accurate results, M.A.C. Cosmetics should a few different types of
research to get a better picture of how effective the strategies were. This research is important
because it will let M.A.C. Cosmetics know what approaches worked and what approaches may
Conclusion
M.A.C. Cosmetics has become one of the main makeup companies the in
cosmetics industry. They are known for their quality products and professional representatives.
They have a lot of qualities that are what Hispanic customers are interested in. The projected
population rates for the future shows the Hispanic population with a significant increase. This
increase is going to increase the Hispanic spending power and the Hispanic population in the
market.
gain their business. M.A.C. Cosmetics should start to advertise and gain Hispanic customers
because they are going to be a major segment in the market. M.A.C. Cosmetics motto is, All
ages. All races. All sexes. Now M.A.C. has the opportunity to expand their customer base and
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