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Gabrielle Darby Dr. Julie Joseph Marketing Plan 7 February 2011 Marketing Plan: M.A.C. Cosmetics Executive Summary MAC Cosmetics is a company that manufactures in cosmetics that originally targeted professional make-up artists, but now sells to customers all over the world. In the company description, I briefly illustrate the company and the overall reason for its existence. In this section, I will also go into detail about the company‟s products and services. The company‟s mission statement lays out the purpose and explains the goals and overall vision of the company. The objectives are then precisely stated in great detail in which the dates, times, location, etc are in relation with the company. I have then prepared a situational analysis identifying the internal strengths and weaknesses and examining the external opportunities and threats. An evaluation of the target market is then presented demonstrating key components such as demographics and customer types that the company pursues to attract. The next section is a compiled list of key competitors of the MAC Cosmetic company which includes the strengths and weaknesses of that particular company. The heart of this marketing plan for this company is the marketing mix which specifies in extreme detail the strategies that help make the company what it is: product strategy, price strategy, promotional strategy, and place (distribution) strategy. The next section includes the budget which gives an estimate on the cost for carrying out the plan as well as a
Our products are created with the mindset of professional makeup artist quality of cosmetics.Darby 2 breakdown of certain cost during any given year. We specialize in quality customer service and our dedication to our customers. We offer more than 100 shades for the eyes. Along with these services we offer a free sample of our products when you recycle the containers. lips. . We offer a wide range of services such as a makeup tutorial in given stores where there‟s a MAC booth as well as samples of our products. Company Description MAC Cosmetics is a company that is designed to enhance the natural beauty of those that most desire it. Also. so therefore. we offer our wholesale products at discounted prices at selected stores. we ensure that our products are adequately equipped to satisfy the customers wants and needs and if not we are held responsible for the costs. We are aware that not everyone is able to afford some of our products. and face and are continually designing more products to adhere to the demand. The schedule then details each responsibility and who will carry it out.
In the past two decades. is known as one of the most creative and influential cosmetics brands.A.A. and pursuing other charitable products. As an organization. M. has been integrating fashion. M.A.000 at the fifth year end mark .Darby 3 Company Mission Statement The mission of M. Rely solely on public relations in consumer fashion and beauty press Evaluate the coverage of the MAC AIDS Fund Increase the number of return customers by 10% Obtain a market share growth of 5% Reach a net profit of $700. pleasure and imagination. engaging itself in AIDS prevention. M. All Races. Founded in 1984. M. it commits itself to high standards and creative delevelopment with an enterprise concept that all pains have gains. respecting the two equal rights of peoples all races.C.A.C. Cosmetics is to be the world‟s leading professional makeup authority among both professional makeup and consumers.C. The overall goal is to obtain a net profit greater than in the previous years. whilst staying true to the MAC credo of the motto “All Ages.C Cosmetics is committed to its corporate social responsibility by protecting the environment irrespective of time and place. genders and ages. All Sexes”. fighting against maltreatment. Objectives of the Plan The objectives for the next five years are to increase productivity by continuing to publicize by word of mouth instead of putting up extra expenses in advertising. supporting environmental protection.C. To this day.A. Cosmetics ensures its customers and consumers the loyalty that was established with their brand from the very beginning.
events.C.A. Hong Kong. The interesting trends are the social factors. and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan. fashion shoots.C. M.A. M. Greece. but their marketing skills are at a standstill. most of their customers are professional makeup artists who in return use the products on other professional people. this would increase the market share. Changes in the market would include new customers. Australia. Dealing with their weaknesses.C. the main focus should be on the organizational resources.Darby 4 Situation Analysis SWOT Analysis To determine the internal and external environments of M. etc. In examining the external opportunities and threats.A.A. This gives an increase on financial resources. and Middle East.C. Germany. Cosmetics are th4e advantage that most of their customers are brand loyal and therefore. Spain. A profitable addition would be products that are for sensitive skin or saling products at a lower price to fit all demographic settings. The fact that they don‟t advertise saves then money. Cosmetics.C‟s products get publicity by word of mouth and the sales of that product increase.‟s marketing skills are really good and so are their public relations. They also should improve their products by packaging them in larger containers to obtain a greater volume and quantity. France. Some of the threats would include the . Korea). a process called environmental scanning had to be done. Also. they get constant sales. Their experience is global (multinational) with just about ten key markets (UK. but keep the same product (market development). This process includes the collection and interpretation of information about forces. Japan. M. could improve their advertising. The strengths of M.A. Most of their resources come from those professional makeup artists who are promoting their product to other consumers by a way of magazine articles/covers. fashion runways.
Target Market M.C Cosmetics needed to understand the current and potential environment that the products and services can be marketed in. By adopting into the growing economy. struggled to get their company started.C. M. Cosmetics attracts those that are rich or poor.A. or age. then new and improved opportunities arise which can make the market achieve success. M. and even for males and females. old or young. M.C. M. M. then the capability of the firm is not all that great.‟s customers.A. With sudden changes in the environment and consumers constantly adjusting their needs and wants.A. but now a multimillion dollar enterprise the market matured by new consumers becoming a part of the target market and some dropped put. .A.C Cosmetics use a global strategy (differientied) by going global with a local focus.A.C.A.A.C. Cosmetics doesn‟t discriminate against ethnicity. Other obstacles would be not having enough aggressive sales which lead to lower profits. This target market is roughly large given the fact that a specific target market is not identified. At the beginning. if production is down.Darby 5 obstacles of other makeup companies potentially taking over M. As far as geographic are concerned. lifestyles. but essentially the people in the high fashion industry are the target market of this company.C Cosmetics has never tried to target a certain group of people.C. has to keep us with these adjustments by reshaping the marketing mix to make it become more effective for the consumers. conservative or trendy. M.A. gender. Also. Essentially.
work online. There is a special section dedicated just for men while M.A.C. Their strengths include an ECatalog where you can shop anytime of the day. Also. but has a reputation of dealing with salons. stores are located in „off-mall‟ areas with high traffic. this cuts the target market in half because it‟s only created for one gender.A. sales. products are readily avaible upon request.C.C.A. Their weaknesses include that they are not global and only have a total of 389 stores in 40 states. Avon just started becoming international and selling their products overseas. Another strength is the company is not just for professional makeup artists. Another competitor of M. is unisex.C. One of the competitors of M.A. Also. Their strengths is that consumers can choose their own service whether they want to shop online with a representative or locate your own representative in your area. Their weaknesses are that there isn‟t really a store where you can go and buy the products like M.C. MaryKay is one of the best personal sellers of cosmetics known. the representatives throw the parties and use the products on the customers (push) and then those customers like the affects from the products. and their products are not sold in a readily available place for customers.Darby 6 Competitors and Relevant Information There are a number of makeup companies that are competing for the same amount of customers. anybody can sell their products and work from home. and there are always representatives to adhere to your needs. Cosmetics is Avon.A. Cosmetics has. Also. and create your own hours. With the company Avon. is Ulta. but for babies and teenagers as well. their strengths are the fact that they not only have makeup for men and women. their products can be accessed 24/7 as well as a free personal delivery every day. MaryKay uses a pull/push approach with the MaryKay parties that they throw. and formal recognition as M. . and it‟s only a company for women.
The collection consists of blush. pigment. Their weaknesses include that they don‟t have a wide range of products. Cosmetics offers various services such as makeovers. which is designated as a distinct offering among their products.C.A.Darby 7 they buy them (pull).A. depending on the buyer‟s intentions.C. and their promotion is word of mouth instead of business to business. M. lip gloss. It is the core of the organization and is sometimes known as a service or a good (soft or hard). Since they are involved with about ten key markets. face. M. goes about presenting them.A. lipstick. MaryKay has products for men and women.C. Cosmetics joined with the superhero Wonder Woman to enhance her beauty. They state that Wonder Woman gets her own cosmetic line because even superheroes need some color too. The product mix is eyes. M.C. All three cosmetics companies are unique in their own way and have qualities that make their business successful. sells. and eye . Marketing Mix Product Strategy Product is one of the first „Ps‟ of the marketing mix. nails. Each of these items requires a separate marketing strategy in order to get the best sell.C. Also. The product line of M. lips. they are able to offshore. They also can be classified as either business (industrial) or consumer products. brushes. skincare.C uses a global approach when taking their products around the world. etc which includes all the products M. Since a service cannot be packaged. lip gloss. The lip gloss Viva Glam is M. Just recently.C sells more than just one product.A. eyeliner. and foundation are a split between a shopping product and a specialty product. free samples of their products. M.A.A. lashes. they do not have a global focus. but a variety of other goods. it is difficult to say how M.A. Their products such as eyeliner.‟s product item.C is lip gloss which Viva Glam is included in that product line.A. and mini trials.
This evaluation of products is known as product development where a company keeps the same customers. They have adopted objective called profit maximization where M. sets its prices so that total revenue is the largest it can get relative to total costs.A. put items online because the Internet makes comparison shopping easier for its customers.A. It is the most flexible and is the quickest to change because marketers can adjust it according to the market. uses certain strategies based on consumer/customer habits in order to make the best decision on what price a product should be held at. With the new cosmetic line with Wonder Woman. they how to achieve inelastic demand . Cosmetics unite together and borrow on each other brand‟s quality. and comes up with a new product. introduces new products they have to put into consideration what potential buyers will do and how they will evaluate the price of each one against an already existing product somewhere else. They also use return on investment (ROI) which measures the management‟s overall value in generating profits with the available assets. but not just because they need for it remain safe while shipping but for it to attract the customers eye. M. but specifically cooperative branding where Wonder Woman and M.C has never been in a situation where the demand was so high that there wasn‟t enough supply. Price Strategy Price is a very important competitive weapon as well as important to the organization because price multiplied by the number of units sold equals to the total revenue for the company.A. there has always been some type of balance between the two. M.C.A.A.A. is known for its status quo pricing where they‟re always competing to match other competitor‟s prices such as Mary Kay and Ulta.C. M.Darby 8 shadow. When M. This is known as co branding. M.C.C. uses specific procedures when packaging their products.A. They also. It is something that sigiven up in an exchange to acquire a good or service.C.C.
persuading.A. Cosmetics does a lot of sampling with their customers. sales promotion.A.A. For loyal customers.C. They offer rewards such as free samples of products or makeup tutorials on a customer for their repeat purchases. that when they increase prices slightly.C. M.A. but are actually there for customers to test out and potentially buy. stores are worldwide. educating. does their promotion.A.A. or premiums because they have enough products and loyal customers to make up for what they might lose in a months to years span. because this is where most of their sales come from. public relations. M. uses sales promotion to their advantage because directly affects attitudes and behaviors. they feel that the items will speak for themselves.C.Darby 9 since this is a new product.A. This is a unique way the M. doesn‟t really use things like coupons. Stores are designed and set up where specific items act as end caps.C. The objectives of sales promotion depend on the behavior of the consumers. they have adopted prestige pricing to help promote the image of Wonder Woman the superhero.C. M. M. The Wonder Woman Cosmetics Line is in the introductory stage in the product life cycle. it will not affect the demand for the product significally.C. The main role is to bring about exchanges with target markets by informing.C. but there are some cities that do not have the actually store. M.A. and reminding. the price of products is set high to recover development costs quickly. so they have these displays in easy targeted department stores like Macy‟s. Point-of-purchase display (POP) is used a lot with M. With this new line. M. A really good promotion can increase sales. and personal selling. Promotional Strategy Promotion includes advertising. uses the frequent buyer program to strengthen their brand loyalty. This can ensure M.A.C.C. rebates. uses the custom made profile online to give their repeat customers an incentive to stock up on their products. Large signs and shelf extenders capture buyers‟ attention and on impulse they .
M. This creates the pull/push strategy once again because consumer promotions pull the product through the channel by creating a strong demand.A. Since M. gets a lot of their promotion done through online sales because the generation today is digital and frequently uses the Internet. uses a global strategy. Cosmetics does such as POP push the promotion through the distribution channel.C. reserves the right to make sure that the products that they sell to the consumers are not resold at any point in time by another consumer.A.C.A.C.A. deals with making products available when and where the customers want them. M. Their products are mostly international and multinational. they use .‟s supply chain control. They do the best to have a positive impact on those who have complaints and try to work them out precisely.Darby 10 are attracted to buy. It presents a unified response system to the customer whenever complaints. or comments are voiced. It involves with geographic and the type of retail. it involves all of the business activities concerned with storing and transporting the finished products. or distribution. Place (Distribution) Strategy Place. Most of this „P‟ concerns the physical aspects of it. Networking is done a lot in this company by word of mouth to promote their products to expand their target market and increase sales.C. Cosmetics goal is to make sure that all of its products are in order and get to its destination safely. the trade promotions that M. They are known for their excellent customer service and follow the management process. M. negotiate to get the lowest price possible from suppliers of the things that are of necessity for certain products.A.C. They don‟t do a lot of personal selling because they expect for their products to sell themselves.A.A. Then in return. concerns. so the job and/or task are done externally.C. Within M. They try to reduce the cost of the raw material needed to make the products and purchasing professional at M. they outsource a lot.C. questions.
A. M.Darby 11 and effective inventory system that develops and maintains an adequate assortment of materials/products to meet the customer‟s need. Cosmetics sells their items in department stores like Dillard‟s and Macy‟s and in their own specialty store. The type of retailing that response well with M. Sales are increased this way and is less costly and extremely convient. . Dealing with retailing in the place strategy.C is electronic retailing (online retailing). Their goal is to keep the inventory levels low while maintaining enough goods in order to meet the customers demand.A.C. This is the type of shopping available to consumers with personal computers and access to the Internet.
000 Year 3 $4 million 3.000 50.750 .000 Total Marketing Expenses 487.000 0 1.000 200.000 45.000 30.000 95.000 25.000 35.250 Net Profit 12.000 Marketing Expenses Product Development Advertising Promotion Product Samples 10.250 75.550.000 0 1.000 15.500 1.000 Year 2 $3 million 1.Darby 12 Budget Year 1 Projected Sales Projected Profit $1.000 30.128.750 3.250 75.248.000 2.000 250.000 120.500.000 0 0 Initial License Fee Training Service Development Additional Funds/ Working Capital 25.250 421.500 70.5 million 500.000 5.500 251.
Darby 13 Schedule Action Finalize Product Features Create Page on Social Network Create/ Update Website Launch Ad Campaign Increase Sales Launch Global Network February April May-August November Advertising Manger Advertising Manager All parties involved President Timing December December Responsible VP Marketing VP of Sales .
Darby 14 .
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