Megan Guenther, Briana Irwin, Natalie Laneri, Ashley Fitterer, Kaitlyn Tymas, and Megan Fannin

Company
Make-Up Art Cosmetics Ltd.-Founded 1985 in Toronto, Canada Originally for professional make-up artists Vision: To be the most preferred brand of professional make-up artists Fashion models, actors and stage performers were the first consumers of the products before the publics interest developed Unique image: black clothing, extreme employee style, black counters, professional make-up artists Touch-and-play experience Certain people turned off- artists added to the brands credibility and differentiation Distribtion in Canada and U.S. - New York and Los Angeles ProShops

Retail Channels
Products available in over 200 locations in 15 countries, with 2,500 employees Partnered Stores: Nordstroms, Bloomingdales and The Bay Company Owned and Operated Stores 1-800 customer service call center

Target Consumer
1. Professional Make-Up Artistsincluded models and actors, 50% of overall sales

2. Retail Consumer- younger women Typical M.A.C. consumer is a young, fashion-conscious individual who is seeking a unique look

Products

Company: Pricing & Promotion

Competitive Pricing, between massmarket and competitors ex) lipstick $4-$20 , M.A.C. $12 Preferred Professional Industry Discount (PPID) No advertising, no discounts - Social conscious programs to help raise awareness for the environment and AIDS

Back to MAC Program Return 6 MAC primary packaging containers to a MAC counter or MAC Cosmetics Online, you receive a free MAC Lipstick of your choice as our thanks to you.

1994, M.A.C. AIDS Fund supports men, women and children affected by HIV/AIDS globally Same year, introduced first VIVA GLAM lipstick Every cent of selling price of VIVA GLAM lipsticks go to the M.A.C. AIDS Fund

VIVA GLAM
Celebrity Spokespeople The MAC AIDS Fund is proud to be associated with a spectacular lineup of multitalented artists for the launch of the VIVA GLAM VI lipstick and lipglass. These committed superstars will serve as powerful emissaries for the MAC AIDS FUND dedicating their time, energy and talent on behalf of the AIDS cause.

Approximately $100 million proceeds have been collected

Core Industry
Cosmetic Industry - Entered Industry with a different approach -Focusing more on developing professional quality products -Socially responsible and unconventional -Edgy, Hip, and In

Competition
Lancome, Estee Lauder, Clinique, Elizabeth Arden, and Shiseido Bobbi Brown Essentials, Trish MacEvoy, Nars, Stila, and Make-up Forever

Competition (Cont.)
Visiora, Bill Tuddle, Kryolan, RCMA, and Joe Bolasco Nordstrom, Macys and Bloomingdales

Define Opportunities
With the undeniable success of M.A.C since its founding, the company wants to maintain its status as a leader in the market.

The company is currently facing a turning point in which it needs to decide on how to focus its attention on all of its consumers: professional artists, professional industry and retail consumers.

How are they going to keep their unique and individual style that they have used to their advantage, while satisfying all customers?

SWOT Analysis
trengths
Unique image (known for colored products)

High quality
Word of mouth endorsements by professional make-up artists Numerous awareness campaigns (positive community engagement) Price

eaknesses
Lack of on-line sales Brand intimidation
No in-store gift with purchase promo

pportunities
Informational website Selling through retailer website Taking advantage of selling online

hreats

Competition already online

Retailers sell other product lines

Online Retailing
With the turn of the century comes an intense look to the Internet and how to best utilize the resources available on it. More and more retailers are looking to expand their business to incorporate internet sales to increase profits. With rates expected to exceed 200% per year for the next few years, its imperative that M.A.C takes advantage of the opportunity in front of them as best they can.

Online Retailing
The internet has made it possible for retailers to bridge the gap between richness and reach. Rich communication used to only be found faceto-face, while in order to reach the customer, retailers would sometimes have to sacrifice richness. The internet broke down this fundamental tradeoff, making is possible to reach the customer with a rich shopping experience.

Define the Opportunity

Monetti identified 3 distinct internet options that he felt were suitable for building an online presence Information oriented website Online selling through retail partners websites Online direct selling through a M.A.C. website

Option 1: Information-Oriented Website

Would allow customers to move an online camera around the page and to zoom in on specific products or news Designed to have fashion at the forefront image in mind Increase market awareness of M.A.C. and its products worldwide, allowing them to expand into new markets around the world Site would include addresses of nearby retailers who sold M.A.C. products, thereby driving sales to those stores Could be used at promotion for AIDS, a cause that the company long supported Gave the company a way to introduce new and upcoming products M.A.C. Internet Club

Option 2: Online Selling Through Retail Partners Web Sites

Encourage existing retail partners to sell M.A.C. products on their own websites Would create fewer logistics problems for M.A.C. On the other hand, retail partners were unlikely to make major investments in building the M.A.C. brand since they would be showing thousands of other products online M.A.C would also have limited input into how its products would be presented on the sites Problem: there would be limited potential for new customers since the retailers websites were likely to appeal to their already existing customers

Option 3: Online Direct Selling Through a M.A.C. Web Site

Site can range from Basic to Innovative Basic:

Allows customers to purchase products

Choose from itemized lists with brief descriptions and product photographs Information about how selected product should be applied

Innovative: Buy at Store

Refill on-line

Benefits
Likely to attract new customers to M.A.C. Stores Quicker & easier to introduce and test new products Ability to broaden product line beyond what could effectively be displayed at stores Removes excess repeat traffic from M.A.C. store counters, easing lineups and crowding Customer Profiling Cross Promote for in-store locations Increase awareness of Social Campaigns

Disadvantages
Could pose a threat to the companys credibility with the professional segment of the market Large initial investment: -Operating Expenses -Warehousing & Shipping/distribution -Cost associated with building the website

6 Barriers to Online Success

Increasing consumers comfort levels Resolving technological limitations Rapidly scaling internal operations Engineering comprehensive convenience Resolving channel conflict Developing low-cost distribution

Decision
Online Selling through M.A.C. website

Variables For Decision

Online retailing reached approximately $15 billion in revenues, far exceeding projections Attract more customers to the M.A.C. stores For every dollar spent online, consumers were likely to purchase another $5 of goods in stores

Variables for decision (cont)

Could introduce their new products more quickly Gives the opportunity to offer more products The M.A.C. shopping experience analysis showed that M.A.C selling online had the highest total

Variables (cont)
Many customers including the make-up artists already know what they need to buy and they just need to refill old make-up

Recommendations
Create Link on website tailored to make-up artists Offer event listings, job opportunitys, specialty products, advice with handling clients Also offer special prices for artists

Recommendations (cont)
Cater to professional users by showing whats new and fashionable how to section, different colors that go good together and how to apply the correct way Advertise there campaigns such as their Aids awareness charity

Like this look? Try it on at a store near you: 1. Print this page. 2. Locate a MAC Counter location near you. Find Stores. 3. Call to schedule an appointment. EYES Lightly fill in brows with a mixture of Cork and Espresso Eye Shadows. Apply Constructivist Paint Pot all over eyelid and blend well as a base. Highlight the browbone area with Mylar Eye Shadow using 224 Brush. With a fluffy brush, such as 217 Brush, apply Bamboo Eye Shadow all over the lid. Then blend Saddle Eye Shadow into the crease with 219 Brush and run it lightly along the lower lashline. Line the top and bottom lashline with Stubborn Brown Powerpoint Eye Pencil. For the upper lashline, create a thicker line towards the out edges of the lashline, winging slightly upwards for a dramatic eye opening effect. Curl Lashes and apply two layers of Plushblack Plush Lash. CHEEKS Dust cheeks lightly with a sheer veil of Well Dressed Powder Blush. LIPS Line lips with Subculture Lip Pencil. Smooth Viva Glam VI Lipstick over lips and top off with the newest addition to the Viva Glam collection - Viva Glam VI Special Edition Tinted Lipglass.