1. Create an informative website to increase brand awareness and drive traffic to retail locations. The site could feature virtual try-ons and tutorials. 2. Partner with retailers to sell M.A.C. products on Nordstrom, Bloomingdale's, and other sites to reach more customers with minimal investment. 3. Consider direct online sales in the future through a M.A.C. website to attract new customers and test products, but high costs require further evaluation.

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

2. 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 public’s 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 brand’s credibility and
differentiation
• Distribtion in Canada and U.S.
- New York and Los Angeles
• ProShops

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

4. Target Consumer
1. Professional Make-Up Artists-
included 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

5. Products
• Large selection of colors and
textures
• Withstand bright lights
• Worn for long periods
• Professional quality brushes
• M.A.C.-PRO (exclusive)- cream
colors, primary colors, mixable
lip-creams and professional
tools

6. Company: Pricing
& Promotion
• Competitive Pricing, between mass-
market 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 M·A·C Program
Return 6 M·A·C primary packaging
containers to a M·A·C counter or
M·A·C Cosmetics Online, you receive
a free M·A·C Lipstick of your choice as
our thanks to you.

7. VIVA GLAM
Celebrity Spokespeople
The M·A·C AIDS Fund is proud to be
associated with a spectacular lineup of multi-
talented artists for the launch of the VIVA
GLAM VI lipstick and lipglass. These committed
superstars will serve as powerful emissaries for
the M·A·C 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/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
• Approximately $100 million proceeds
have been collected

9. 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”

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

11. Competition
(Cont.)
• Visiora, Bill Tuddle, Kryolan,
RCMA, and Joe Bolasco
• Nordstrom, Macy’s and
Bloomingdale’s

12. 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?

13. SWOT Analysis
• Unique image (known for colored
products)
• High quality
• Word of mouth endorsements by
professional make-up artists
• Numerous awareness campaigns
(positive community engagement)
• Price
trengths

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

15. • Informational website
• Selling through retailer
website
• Taking advantage of selling
online
pportunities

16. • Competition
already online
• Retailers sell
other product
lines
hreats

17. 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, it’s imperative that M.A.C takes
advantage of the opportunity in front of them as best
they can.

18. 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 face-
to-face, while in order to reach the customer,
retailers would sometimes have to sacrifice
richness.
• The internet broke down this fundamental trade-
off, making is possible to reach the customer
with a rich shopping experience.

19. 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

20. 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

21. 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

22. 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

23. •
• 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
Benefits

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

25. 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

26. Decision
Online Selling through
M.A.C. website

27. 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

28. 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

29. 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

30. Recommendations
• Create Link on website tailored to make-up artists
• Offer event listings, job opportunity’s, specialty products,
advice with handling clients
• Also offer special prices for artists

31. 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

32. Like this look? Try it on at a store near you:
1. Print this page.
2. Locate a M·A·C 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.