FSH 385 Final Project

IMC Plan for MAC Cosmetics

Student Name:
Sarah Schaller

Contents:

Executive Summary page 3
About MAC ... page 4
Target Market . page 5
Targeting Strategy ... page 10
Competitor Analysis .. page 11
Positioning and Competitive Advantage .... page 15
Current IMC Strategy and Execution .... page 17
Proposed IMC Strategy and Objectives ... page 19
Proposed Really Big Idea ... page 22
Sample Creative Executions .... page 23
Evaluation and Measurement of Success ... page 34
Conclusion ... page 36
Sources ... page 37







Executive Summary
For almost 27 years, MAC Cosmetics has delighted make-up artists and
cosmetics devotees alike with innovative and professional cosmetic products.
In order to sustain and communicate the brands trendsetting and fashion-
forward image, MACs IMC strategy has to reflect these core qualities to a
greater degree by means of exciting limited editions, the implementation of
new technologies, customer proximity, interactivity and social responsibility
With an improved IMC marketing plan MAC will remain as successful and
unique as it currently is.
About MAC
The Canadian brand was founded in 1985 by make-up artist and fashion
photographer Frank Toskan and hair stylist Frank Angelo in Toronto.
Their goal was to develop a line of cosmetic products that would cater to the
needs and challenges of professional make-up artists.
Today, MAC (Make-up Art Cosmetics) is not only popular among
professionals, but also a go-to brand for customers around the world who
place value on quality and a wide range of colors.
Since 1998 MAC is part of The Estee Lauder Companies, Inc., one of the
worlds leading manufacturers and marketers of high-quality skin care,
decorative cosmetics, fragrances and hair care products.
Target Market
Primary market segment: Make-Up Artists

MAC products were initially created for professional make-up
artists.
The brands special Pro line consists of more than 300 high-
performance products with high-quality formulations, a wide choice
of colors, rich pigmentation and various finishes to meet the
demands on-set and backstage.
Members enjoy Pro discounts and can attend master classes as well
as special events to meet other industry professionals.


Secondary market segment: fashion-forward make-up amateurs

Most MAC consumers are female and fit into the 18-35 age category, thus
belong to the 71-million-strong Generation Y.
They are the biggest generation in U.S. history and ethnically diverse:
one-third of them have an African-American, Asian, Native American or
Hispanic background.

In terms of occupation, they are either college students of young
professionals with enough disposable income to invest in higher priced
cosmetics. There are likely to change employers frequently and expect great
workplace flexibility and a supportive working environment.
Gen Y prefers flat hierarchies and want to like the work they do.


Born during the 1980s and 1990s technology has always been a part of their
lives. Thus, they are very tech-savvy, engaged in social networking and use
the Internet and smart-phones on a daily basis.

They are outgoing, open-minded, individualistic, and socially-conscious and
want to make a difference. Consequently, promotions that encourage social
action resonate highly with them.
They dont respond to traditional advertising but appreciate word-of-mouth
recommendations and online reviews to see whats best.

As fashion-conscious individuals they seek a unique look without
compromising on quality.

A Day in the Life of MAC addict Mary
The MAC Appeal
The targeting strategy:

Individualistic Gen Yers turn to the brand because it encourages them to
develop creatively and express their individuality by means of their high-quality
and colorful products.
MACs wide color choice also caters to the generations ethnic diversity.
According to market report commissioned by the U.S. Commercial Service, the
retail sales of color cosmetics in the UK are expected to increase in value by
around 4.3% and reach $1.93 billion in 2013.
By 2011, the ethnic population is forecast to reach 12% of the total population.
Thus, the demand for medium-priced ethnic cosmetics is increasing and is a good
prospect for U.S. exporters. (www.export.gov)

Another reason is that the brand shows social responsibility (MAC Aids Fund, no
animal testing, Back to MAC program) and primarily relies on word-of-mouth
marketing.

Like their media-savvy customers MAC is engaged in social media activities like
Facebook, Twitter and YouTube to actively communicate with them.
Competitor Analysis
Make Up Forever
History:
The Parisian company was founded in 1984 by
the former painter and sculptor Dany Sanz who
wanted to develop a make-up line for the fashion
and show-business, i.e. products to create any
effect a makeup artist's heart could desire.

Key product lines
Their key line consists of HD products with high-
performance formulations that correct
imperfections while remaining invisible on-screen
and to the naked eye.
They also offer waterproof and special effects
products like artificial blood.

Professional training:
The MAKE UP FOR EVER ACADEMY Paris reveals
and trains new make-up talents. One can acquire
professional expertise in the following
techniques: beauty, fashion, cinema, television,
theater, and artistic.


Pricing:
o Foundation: 29,50 - 33.50
o Lipstick: 18.90
o Single eye shadow: 14.50

Brand identity:
professional, creative, innovative

Distribution channels:
off-and online stand-alone MUFE stores, Sephora

Promotional strategy:
Magazine ads, own website, Facebook, YouTube
channel, events
This year, MUFE launched the worlds first un-
retouched magazine ad campaign to show that
their HD foundation can create a flawless
airbrush finish without Photoshop.

Urban Decay
History:
The American brand was founded in 1996 by
Sandy Lerner and Zomnir and David Soward
to provide women with colorful, high-quality
and cruelty-free make-up.

Key product lines:
Their Eyeshadow Primer Potion, colorful
Glide-On Eye Pencils and eye shadow palettes
are Urban Decays key product lines. They are
characterized by a rich pigmentation, staying
power, and a great color range.

Brand identity:
Bold, fun, glam rock


Pricing:
Foundation: 26 - 32
Lipstick: 19
Single eye shadow: 16

Distribution channels:
Own website (online shop), Sephora, online
stores (e.g. ASOS), brick and mortar stores
(e.g. JCPenney, Ulta, MACY'S)

Promotional strategy:
Website, events, billboards, magazines

NARS
History:
Due to the success of his small collection of
twelve lipsticks, the French make-up artists
and photographer Francois Nars decided to
launch a full line of cosmetics in 1994.

Key product lines:
The most famous NARS product is a blush
called Orgasm that creates a fresh and healthy
glow on your face.
The Sheer Glow Foundations are also favored
because they clarify the overall skin tone and
enhance the skins luminosity and radiance.






Pricing:
Foundation: 40 - 50
Lipstick: 25
Single eye shadow: 24

Brand identity:
cutting-edge, empowering, innovative

Distribution channels:
off-and online stand-alone NARS stores,
Sephora, online shops

Promotional strategy:
Print campaigns, own website, Facebook,
Twitter

MAC S Positioning and Competitive Advantage

highly esteemed in
the fashion industry

Innovative formulas,
for example MACs
pigments

Regular and Pro assortment

Much sought-after limited
editions

Celebrity
endorsements for their
Viva Glam lipsticks

Back to MAC
Program and MAC
Aids Fund show
environmental and
social commitment

Perceptual positioning map
Audit of Current IMC Strategy and Execution
The Good:

MAC communicates one cohesive message that successfully reaches the targeted
customers, for example:

o They follow the show dont tell rule :
o The visuals always reflect the brands cutting-edge and artistic image, as well as
the concept and their website features video tutorials (Artists in Action) where
professional make-up artists show how to create different looks.
o By means of limited editions, they constantly set new trends and keep their
customers excited.
o Their website has interactive features (Shop Together )
o The catchy and straightforward phrases resonate with the target audience and
convey the theme of the collections well.


The Bad and The Ugly:

o Launching too many limited editions in short intervals can oversaturate
people and shortens the time of anticipation.
o The (online) shopping experience could be even more interactive, fun and
customizable.
o The CSR and cause marketing options are not fully exhausted yet.
Proposed IMC Strategy and Objectives
Objective:
M.A.Cs challenge is to live up to their trendsetter image and deliver a consistent
quality that both professional make-up artist and amateurs appreciate.
They should implement and enhance on- and offline strategies that reinforce the
following competencies :

Innovation and Creativity
Customer proximity and interactivity
Social and environmental commitment

By focusing on these areas, M.A.C can strengthen their market position and enhance
their competitive advantage.
Innovation and Creativity:
I would recommend M.A.C to launch less but more unique limited editions
that feature true must-have pieces with brand new colors, interesting
textures, exciting effects and appealing packaging.
Making use of new technologies, for example 3D, flash animations and apps
convey the brands fashion-forward mentality.

Customer proximity and interactivity:
By means of social media platforms like Facebook and Twitter, the brand can
be perceived as more inviting and transparent.
o frequent postings
o behind the scenes coverage and pictures
o customizable online tools, animations and games
o seeking feedback and
o running contests
encourage customers to actively take part in their world.
Social and environmental commitment
Since producing MAC products does not involve any animal testing, the cosmetics
brand could build a CSR campaign around their cruelty-free approach.

Catering mostly to women, they could also campaign for female empowerment and
raise funds for charities aiming to stop violence against women.



Media:
Website, Facebook page, Twitter, YouTube, blogs, newsletter, industry related
magazines, radio

Tone of Voice:
Artistic, cutting-edge, unique, one step ahead

Promotional tools:
Discounts, crowdsourcing, CSR (VIVA GLAM, Back 2 Mac), contests





Proposed Really Big Idea
I would describe the big idea behind MACs products as professional cosmetics
in all colors for all colors.
It is make-up that helps people express their unique personalities and encourages
everyone to have fun with it.
Their Wonder Woman collection especially highlighted the fun, bold and
empowering aspects of make-up.

If I had to draw on the Wonder
Woman girl power concept I would
use another iconic heroine for the next
summer or fall collection Lara Croft.
She embodies confidence,
determination and offers a nice color
palette of earthy tones and metallic
finishes. A new Tomb Raider game will
be released in September, so this
limited collection would also be quite
topical.

Sample Creative Executions
Interactive and direct marketing

Concise descriptions and product swatches are good but online customers
cant see how a foundation, lipstick, blush or eye shadow will suit their skin
tone and overall type.
Thus, I would love to see a model gallery comprising photos of women with
various complexions and hair colors.
By clicking on a model with features similar to herself, the customer can use
the model as a virtual mirror. Since the database contains pictures of every
model wearing each M.A.C lipstick, for example, you can see how the shades
you are interested in look on an actual person.
Product recommendations based on the selected model are also provided
and the colors that suit her best are highlighted.
This virtual type and purchase advice tool can also be translated into a
smartphone or iPad app.

For my Tomb Raider collection I would also love to see an interactive page
with sounds and animations.
I envision a Laras Diary or Logbook that acts like a virtual catalog with
handwritten product - or in this case - artifact descriptions and flippable
pages.
This theme also lends itself to an on- and offline treasure hunt and online
game. For instance, there could be a new Tomb Raider drag-and-drop online
puzzle every day for about two weeks. The fastest person of the day will win a
20%-off gift certificate on the product featured in the puzzle.
Advertising

Posters:
In order to lure in potential customers, the shop windows will feature large
posters.

Crowdsourcing:
In order to engage customers, I would ask beauty junkies to design a make-up
bag for the new collection.
The bag creation with the most votes on Facebook and the homepage, where
the bag can be designed with interactive tools (similar to NIKEiD), will be
become part of the Lara Croft limited edition.

Newsletter:
Subscribers will receive topical emails regarding new products, discounts, and
any other interesting topics, for example sweepstakes and contests.


PR Campaign


When Story Ideas Media Recommendation
One month
prior to
collection
launch
Recently several MAC stores have covered part of their
shop windows with opaque foil and the words Discover
the new dimension of make-up soon to prepare the
launch of their latest collection. Reportedly, girl power is
the big theme, but no particulars have leaked yet.
blogs
beauty and fashion related
online magazine
newspapers
radio
Twitter
15 day
before
collection
launch
Wondering what MACs upcoming collection is all about?
Sneak a peek at their store windows on 15 June to get
even more excited about their brand-new limited edition
that will be launched by the end of June.
beauty and fashion related
(online) magazine
Blogs
Facebook
Twitter
Newsletter
two weeks
after launch
MAC is looking for new talents. Create a look with the
new collection, upload a picture on our website and win a
one-day training session where you will learn professional
make-up techniques.
beauty and fashion related
(online) magazine
Blogs
Facebook
Twitter
Newsletter
Four weeks
after launch
Lucky New Talent contest winner shares her
impressions and new skills she acquired during her one-
day training session at MAC on 5
th
Avenue in New York.
beauty and fashion related
(online) magazine
Blogs
Facebook
Twitter



Special YouTube Event:

Beauty gurus worldwide are invited to special preview events where they can examine, try and
buy products of the upcoming collection.


Potential partnerships and sponsorships:

Partnerships
UNICEF
PETA
Fashion/accessory designers
(to create MAC merchandise or a certain products, e.g. a new lipstick color like Ruffian Red)

Sponsorships
Beauty schools/courses
MTV Video Music Awards
Runway shows
Fashion contests
Project Runway
Bread & Butter tradeshow
International Womens Day event
YouTube events

Potential celebrity endorsers:

Amber Rose
Beth Ditto
Khloe
Kardashian
Rihanna
Jessica Szohr
Blake Lively
Visual merchandising and experiential marketing

Film on a 3D TV screen:
An unusual but innovative method would be a 3D video sequence that could be
viewed through special glasses embedded in a store window. The window would be
covered with an opaque material and the words Discover the new MAC adventure
would draw attention to the (yet to be) launched collection.
Posters and stand-up :
My aim is to not just promote products, but to tell a story that captivates and
entertains MACs customers. The posters would therefore feature Ms. Croft in action
while she is hunting a treasure consisting of precious lipsticks, eye-shadows etc. To
create more visual interest and because Lara is a 3D character, I would install
(animated) 3D posters and a 3D Lara Croft stand-up inside the store
Decoration and store design:
I would install Tomb Raider themed interior, for example product displays that look like
treasure chests, exotic plants hanging from the ceiling and jungle sounds that
emphasize the adventurous atmosphere.




Sales promotion and personal selling

Early bird special:
As an incentive for early birds, I would offer customized mystery gifts.
Every product sold in a store or online comes with a certain code that can be
redeemed only once. Customers who received such a code have to visit
maccosmetics.com and enter the code. They can then choose between three
different sample size products/gifts and customize the product by selecting the
shade and the product and packaging design.

Customer service:
When it comes to giving professional make-up advice, its crucial that MACs
make-up artists can match foundations quickly and know what colors work for
each individual skin type.
In order show potential customers products in a demonstrative way, the
employees provide thorough advice and create beautiful looks on the spot. Such
make-overs are a good opportunity for people to try new products and
experience professional make-up application.
To give customers another opportunity to thoroughly test the cosmetics at home,
MAC should advise their make-up artists to hand out samples with every
purchase over $20 and also enclose samples with consignments.

Ethics and cause marketing

Back to MAC:
Loyal and environmentally conscious MAC customers are rewarded with a
free product. Everyone who brings in or sends six empty product containers
will receive either a lipstick, lipgloss or eye shadow for free.
In order to promote this program, I would suggest a little one-week discount
special for people who have less than six containers:
One empty product = 10% off
Two empty products = 20% off
Three empty products = 40% off
and so on


Cruelty free make-up:
As MAC products are produced without any animal testing, the cosmetics brand could
build a CSR campaign around their cruelty-free approach.
I would recommend them to team up with PETA to campaign for the ethical treatment
of animals. MAC Make-up artists from around the world could be photographed for
an exclusive anti fur calendar, wearing nothing but beautiful and edgy body paint
creations.

Violence against women:
Along with the Tomb Raider collection, which is based on the Wonder Woman girl
power attitude, I would raise funds for charities aiming to stop violence against women
like Womankind or Womens Aid, for example.
Over a certain period of time MAC could
donate 5-10% of every purchase (regular assortment) to a fund
launch a special mini collection and donate 50+% of revenues
collaborate with a charity and organize a city marathon to raise funds and
awareness

Evaluation and Measurement of Success
The following tools can be used to measure the success of my marketing plan:
Online performance:


With a product like Google Analytics I can get detailed insights into website
traffic and marketing effectiveness, track sales and campaigns, and identify
the best selling products. It also helps me track the usage of social networking
and Web 2.0 applications.
Software like SendBlaster used along with Google Analytics informs me
whether customers actually purchase products after reading the newsletter.
The site conversion percentage (= orders/visits) shows how many orders were
placed compared with the number of visits to the site.



Apart from the online tools, MAC can compare sales of previous seasons and
collections with current figures and track how fast limited edition items are
sold out.
By frequently reading Facebook and Twitter comments, talking directly to
customers and asking for feedback (product ratings), the brand can also
measure the marketing success.
Reading relevant blogs and watching user reviews on YouTube is another way
to evaluate awareness and acceptancebefore, during and after the launch of
limited editions.
MAC knows that word-of-mouth is their most valuable means of promotion

Conclusion
I feel confident that MAC can uphold its current success, if the brand keeps
launching much sought-after collections and makes use of advanced
communication channels to interact with their customers.
By means of entertaining and engaging marketing methods, MAC can create
an even more fun and exciting shopping experience for
All Ages, All Races, All Sexes.
Sources:


www.maccosmetics.com

www.elcompanies.com

www.export.gov

www.facebook.com/home.php#!/MACcosmetics

www.narscosmetics.com

www.makeupforever.com

www.sephora.fr

www.myspace.com/itsallaboutnars/blog/335669337

www.marieclaire.co.uk/news/beauty/519335/world-s-first-unretouched-make-up-ad-
released.html

www.moderncosmetics.com/how-was-mac-cosmetics-started-the-history-of-mac-cosmetics