Strategic Marketing Management Of Mac Cosmetics †Free Samples

Question: Discuss about the Strategic Marketing Management Of Mac Cosmetics. Answer: Introduction MAC cosmetics is one of the well renowned cosmetics brands in the world known for its quality and exclusive products. It is headquartered in New York and is presently trading with 75 countries in the world. The company is continuously involved in innovation and new product development with its large number of makeup and experts working under them. These artists play a great role in developing new cosmetics and products day by day and help the brand is building strong image in front of their customers (MAC Cosmetics 2017). The paper discusses the present company scenario in regards to its growth and brand value building. It further illustrates the strategic management of the company that leads to its success such as their products, selling points, innovations and competitive advantage over other cosmetic brands. Present state of the company The most famous photographer and beautician Frank Toskan and Frank Angelo saw the introduction of the most renowned cosmetic brand MAC in Toronto. The products were first developed in the kitchen and were directly sold by tem in their salon. Soon the cosmetics gained recognition by the word from mouth strategy and the products was introduced with a brand name called MAC cosmetics in 1984. Until then the brand grew its presence like a wind by offering all kinds of professional makeup ranging from bold look to glamorous style makeup (MAC Cosmetics 2017). Since then the company has been growing into a unique brand working with top makeup artists of the world and well-known celebrities. Today the brand is operating in 1000 outlets globally. The brand has also set a unique image by offering bridal makeup sessions and service to the brides and free in-store demo service. Brand value is one of the most important factor to be noticed in order to see the strength and demand for the brand (Sinclair, and Keller 2017). The third party pays the money to the brand for licensing the sale of their products. MAC Cosmetics has witnessed a brand value of $1.80 billion in the year 2016 (Kim and Kim 2017). This shows that the company has also received a growth in its brand value from $1.3 billion in 2013.The brand is also ranked under the top twenty cosmetics brand of the world in 2016. These factors make it evident that the brand is increasing and developing continuously to make their presence in the cosmetics market. A MAC cosmetic is one of the most important divisions of Estee Lauder with a brand value of $6.3 billion. The brand contributes a large part in the total sale of Estee Lauder. In addition to this the global makeup market is also growing over the years from 3.8% in 2013 to 4% in 2016 (Statista 2017). To keep pace with this MAC cosmetic is also experiencing a continuous increase that is evident from its increase in brand value. The company has been growing continuously over the year since it has begun its operation with new makeup range for all age group and sexes and through its social service through VIVA GLAM campaign. This growth initiative is totally by the efforts put up by the customers, make up professionals and the companys self effort (MAC Cosmetics 2017). Insight into strategic management of MAC cosmetics The strategic management design of the brand helps to see the overall initiative taken by the company to help it grow over the years and evaluate their revenue generation (Chernev 2014). Product market investment strategy Products are the most crucialsuccess factor of any brand. It is through the range of products that the company offers to its customers that it can fight competition. MAC too has a wide range of the cosmetics for satisfying every need of the customers. MAC offers 300+ products to its customer that is excellent in its look and finish (MAC Pro 2017). Artists develop products. The products offered by the company are best to the style of every customer as it is in wide varieties and colours. The products build by the MAC follows the policy of individuality that is serving all age group and all sexes. It follows a mission from the day it introduced that is All Ages, All races, all sexes. This makes the entity cover a wide market cover and large customer base without much segmentation. The products varieties that the company produces are makeup, primer and skincare, brush set, fragrance and gift cards. All these products are available in all types and colour suiting the skin needs of every user. Company value proposition Quality is another important factor for the company to survive in this fast growing cosmetic industry (Osterwalder et. al. 2014). Thus, MAC is always focused at offering high quality products to its customers developed by renowned artists and professionals using best of items. The products of MAC are animal tested and are mostly oil free and made up of natural elements. This makes it free from all kinds of harmful materials. The company also follow eco friendly product development (MAC Cosmetics 2017). This type of product development adds to the value of the brand. These products are offered by the brand through various selling points such as brand owned outlets, online selling through their official website and through franchisee sources. This helps the brand to spread its products for selling at all sources. Further, the brand also takes up innovative strategy to stand out of other cosmetic entities such as it offers 50 new products every year suiting all skin pigmentation. It also runs a social work program which is unique than other non-drug product selling companies. It also started offering free makeup demo in company owned stores with prior appointments. The bridal session and demo sessions make the brand stick out of others. However, the brand targets the niche market segment creating products for all age group. Key assets and the competency The brand owns many assets in the form of its customer, their products, the makeup artists and professionals and the celebrities that market for the brand that adds to its brand equity (Christodoulides, Cadogan, and Veloutsou 2015). The assets of the company are its tool to continuities growth and presence in the market. Further the brand also hold competency over other brands with some of its unique holdings (West, Ford, and Ibrahim 2015). The oil free and all skin pigmentation type products offered are highly different from other market rulers. Moreover, the social work program the brand runs is not done by any cosmetics brand. This helps the people motivated to buy the product for a cause. It also holds competency through the type of promotional strategy its follows such as word-for mouth, social campaign through VIVA GLAM, in store selling and the free make up session given by the artists. This shows that the company also holds strong skills in attaching with its customers and kn ows the right value they play for the brand. Functional Strategies and Programs Brand building is the critical factor for the company as it is through that brand name it is known to its customers. Thus, it is important that it show up as a most valuable brand when it comes to cosmetics. To do this the company follows various kinds ofmarketing communication strategy such as in store makeup sessions, online review facility(MAC 2017). This helps the brand to communicate with the customers and their needs. Accordingly, the brand can modify their products and services to suit the need of every one. The stores of the brand are made available to many international countries such as Asia Pacific, Europe, Middle East and Africa. The brand also has their online sites available for these locations. This makes the company distribute their products through both online and physical stores. Conclusion From the above analysis, it can be concluded that the brand has been successful in its operations because of the strategies it has followed. The personal touch to its promotional strategy and the sources of selling worldwide has helped the company gain lot f recognition for its brand. This has helped the company to grow over the years and making a place in the top 20 cosmetics brand of the world. References Chernev, A., 2014. Strategic marketing management. Cerebellum Press. Christodoulides, G., Cadogan, J.W. and Veloutsou, C., 2015. Consumer-based brand equity measurement: lessons learned from an international study.International Marketing Review,32(3/4), pp.307-328. Kim, G. and Kim, G. (2017).L'Oreal Paris Ranked World's Most Valuable Beauty Brand. [online] Fashionista. Available at: https://fashionista.com/2016/05/most-valuable-cosmetics-brand [Accessed 7 Aug. 2017]. MAC Cosmetics - Official Site. (2017).Our Story. [online] Available at: https://www.maccosmetics.com/our-story [Accessed 7 Aug. 2017]. MAC Pro. (2017).Product information. [online] Available at: https://www.maccosmetics.com/macpro/cms/functional/customerservice_product.tmpl[Accessed 7 Aug. 2017]. MAC. (2017).Makeup services. [online] Available at: https://www.maccosmetics.com/book-appointment-landing[Accessed 7 Aug. 2017]. Osterwalder, A., Pigneur, Y., Bernarda, G. and Smith, A., 2014.Value proposition design: How to create products and services customers want. John Wiley Sons. Sinclair, R. and Keller, K.L., 2017. Brand value, accounting standards, and mergers and acquisitions:The Moribund Effect.Journal of Brand Management,24(2), pp.178-192. Statista. (2017).Annual growth of the global cosmetics market from 2004 to 2016* [online] Available at: https://www.statista.com/statistics/297070/growth-rate-of-the-global-cosmetics-market/ [Accessed 7 Aug. 2017]. West, D.C., Ford, J. and Ibrahim, E., 2015.Strategic marketing: creating competitive advantage. Oxford University Press.