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

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    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

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    Retail Channels

    Products available in over 200locations in 15 countries, with2,500 employees

    Partnered Stores: Nordstroms,Bloomingdales and The Bay

    Company Owned and Operated

    Stores

    1-800 customer service call center

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    Products

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    Company: Pricing& Promotion

    Competitive Pricing, between mass-market and competitorsex) lipstick$4-$20 , M.A.C. $12

    Preferred Professional IndustryDiscount (PPID)

    No advertising, no discounts

    - Social conscious programs to helpraise awareness for the environmentand AIDS

    Back to MAC ProgramReturn 6 MAC primary packagingcontainers to a MAC counter orMAC Cosmetics Online, you receivea free MAC Lipstick of your choiceas our thanks to you.

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    VIVA GLAMCelebrity SpokespeopleThe MAC AIDS Fund is proud to beassociated with a spectacular lineup of multi-talented artists for the launch of the VIVA GLAMVI lipstick and lipglass. These committedsuperstars will serve as powerful emissaries forthe MAC AIDS FUND dedicating their time,

    energy and talent on behalf of the AIDS cause.

    1994, M.A.C. AIDS Fund supports men,women and children affected by HIV/AIDSglobally

    Same year, introduced first VIVA GLAMlipstick

    Every cent of selling price of VIVA GLAMlipsticks go to the M.A.C. AIDS Fund

    Approximately $100 million proceeds havebeen collected

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    Core Industry

    Cosmetic Industry- Entered Industry with adifferent approach

    -Focusing more ondeveloping professionalquality products

    -Socially responsible andunconventional

    -Edgy, Hip, and In

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    Competition

    Lancome, Estee Lauder,Clinique, Elizabeth Arden,and Shiseido

    Bobbi Brown Essentials,Trish MacEvoy, Nars, Stila,and Make-up Forever

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    Competition(Cont.)

    Visiora, Bill Tuddle, Kryolan,RCMA, and Joe Bolasco

    Nordstrom, Macys and

    Bloomingdales

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    Define OpportunitiesWith the undeniable success of M.A.C

    since its founding, the company wantsto maintain its status as a leader in themarket.

    The company is currently facing aturning point in which it needs to decideon how to focus its attention on all of itsconsumers: professional artists,professional industry and retailconsumers.

    How are they going to keep their uniqueand individual style that they have usedto their advantage, while satisfying allcustomers?

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    SWOT Analysis

    Unique image (known for coloredproducts)

    High quality

    Word of mouth endorsements byprofessional make-up artists

    Numerous awareness campaigns(positive community engagement)

    Price

    trengths

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    Lack of on-line sales

    Brand intimidation

    No in-store gift withpurchase promo

    eaknesses

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    Informational website

    Selling through retailerwebsite

    Taking advantage of selling

    online

    pportunities

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    Competition

    already online

    Retailers sell

    other productlines

    hreats

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    Online Retailing

    With the turn of the century comes an intense look to theInternet and how to best utilize the resources availableon it.

    More and more retailers are looking to expand theirbusiness 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 takesadvantage of the opportunity in front of them as bestthey can.

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    Online Retailing

    The internet has made it possible for retailers tobridge the gap between richness and reach.

    Rich communication used to only be found face-to-face, while in order to reach the customer,retailers would sometimes have to sacrificerichness.

    The internet broke down this fundamental trade-off, making is possible to reach the customerwith a rich shopping experience.

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    Define theOpportunity

    Monetti identified 3 distinct internet optionsthat he felt were suitable for building an onlinepresence

    Information oriented website Online selling through retail partners

    websites

    Online direct selling through a M.A.C.website

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    Option 1: Information-OrientedWebsite

    Would allow customers to move an onlinecamera around the page and to zoom in onspecific products or news

    Designed to have fashion at the forefront image

    in mind

    Increase market awareness of M.A.C. and itsproducts worldwide, allowing them to expand intonew markets around the world

    Site would include addresses of nearby retailerswho sold M.A.C. products, thereby driving salesto those stores

    Could be used at promotion for AIDS, a cause

    that the company long supported

    Gave the company a way to introduce new andupcoming products

    M.A.C. Internet Club

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    Option 2: Online Selling Through RetailPartners Web Sites

    Encourage existing retail partners to sell M.A.C. products on their ownwebsites

    Would create fewer logistics problems for M.A.C.

    On the other hand, retail partners were unlikely to make major investmentsin building the M.A.C. brand since they would be showing thousands ofother products online

    M.A.C would also have limited input into how its products would bepresented on the sites

    Problem: there would be limited potential for new customers since theretailers websites were likely to appeal to their already existing customers

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    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 StoreRefill on-line

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    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 bedisplayed at stores

    Removes excess repeat traffic from M.A.C. store counters, easinglineups and crowding

    Customer Profiling

    Cross Promote for in-store locations

    Increase awareness of Social Campaigns

    Benefits

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    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

    Disadvantages

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    6 Barriers to OnlineSuccess

    Increasing consumers comfort levelsResolving technological limitations

    Rapidly scaling internal operationsEngineering comprehensive convenienceResolving channel conflictDeveloping low-cost distribution

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    Decision

    Online Selling through

    M.A.C. website

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    Variables ForDecision

    Online retailing reached approximately$15 billion in revenues, far exceedingprojections

    Attract more customers to the M.A.C.stores

    For every dollar spent online, consumerswere likely to purchase another $5 of

    goods in stores

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    Variables fordecision (cont)

    Could introduce their newproducts more quickly

    Gives the opportunity tooffer more products

    The M.A.C. shoppingexperience analysisshowed that M.A.C sellingonline had the highest total

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    Variables (cont)

    Many customers including the make-up artistsalready know what they need to buy and they

    just need to refill old make-up

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    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

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    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

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    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.

    EYESLightly fill in brows with a mixture of Cork and Espresso EyeShadows. Apply Constructivist Paint Pot all over eyelid and blendwell as a base. Highlight the browbone area with Mylar Eye Shadow

    using 224 Brush. With a fluffy brush, such as 217 Brush, applyBamboo Eye Shadow all over the lid. Then blend Saddle EyeShadow into the crease with 219 Brush and run it lightly along thelower lashline. Line the top and bottom lashline with StubbornBrown Powerpoint Eye Pencil. For the upper lashline, create athicker line towards the out edges of the lashline, winging slightlyupwards for a dramatic eye opening effect. Curl Lashes and apply

    two layers of Plushblack Plush Lash.

    CHEEKSDust cheeks lightly with a sheer veil of Well Dressed Powder Blush.

    LIPSLine lips with Subculture Lip Pencil. Smooth Viva Glam VI Lipstickover lips and top off with the newest addition to the Viva Glam

    collection - Viva Glam VI Special Edition Tinted Lipglass

    http://www.maccosmetics.com/looks/malibubarbie_print.tmplhttp://www.maccosmetics.com/looks/malibubarbie_print.tmpl