MAC Makeup Marketing/Brand Assessment
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This project was the final project for the Marketing Management 2 course at McGill university. We represented team MAC, and "battled" against team Make Up Forever, a competing cosmetics brand. This project resulted in our team winning the battle, as well as top marks in the class.
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MAC Makeup Marketing/Brand Assessment
- 1. context market strategy results tips Julie Browne Battle of the Brands: The Makeup Wars Zoe Brook Kate Nishida Erica Murray
- 3. H I S T O RY context market strategy results tips
- 4. E S T E E L A U D E R context market strategy results tips
- 5. S C O P E context market strategy results tips
- 6. S I Z E context market strategy results tips
- 7. S I Z E context market strategy results tips
- 8. BRAND P E R S O N A L I T I E S ORIGINAL IRREVERENT context market strategy results tips COSMOPOLITAN INNOVATIVE
- 9. BRAND EVOLUTION/ E Q U I T Y AWARENESS IMAGE context market strategy results tips R Recall Recognition Projective SURF
- 10. RECALL context market strategy results tips “When you think of makeup brands, which ones come to mind?”
- 12. MAC ASSOCIATIONS context market strategy results tips “Expensive, quality makeup variety.” “Eye-shadow, Lipstick, Employees”
- 13. MAKEUP FOREVER ASSOCIATIONS context market strategy results tips “foundation, long lasting, professional” “Nothing”
- 15. MAKEUP FOREVER PROJECTIVE context market strategy results MAKEUP A RTIST tips Trustworthy, Professional, Credible
- 17. INDUSTRY A N A LY S I S context Five Forces Analysis Buyer Power market 5 4 3 strategy Substitutes results 2 1 Supplier Power 0 tips Degree of Rivalry Barriers to Entry/ Exit
- 18. G L O B A L M A R K E T V A L U E 40 35 context strategy results tips $3.5 Billion 30 Millions market Sales ($M) 25 20 Increasing Trend 15 10 5 0 2006 2007 2008 2009 2010
- 19. G L O B A L V O L U M E S O L D Units in millions 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000 2006 context market strategy 2007 Units 2008 2009 2010 results tips $3.9 Million Increasing Trend
- 20. MARKET A N A LY S I S context market strategy results tips Market Segmentation by Make-up Component Eye 28% Lip 25% Face 36% Nail 11%
- 21. MARKET A N A LY S I S context Global Market Segmentation market strategy results Europe 2.5 25.7 41.2 30.5 Americas Asia-Pacific tips Africa and Middle East
- 22. MARKET A N A LY S I S Global Make-up Market Share in 2010 context L'Oreal S.A. market 23.7 strategy results tips 7.7 61.2 7.4 The Procter Gamble Company The Estee Lauder Company Other
- 23. COMPETITOR A N A L Y S I S MAC MUF context $20 $20 market strategy results tips $60.79 SP €126.75 SP 63 countries 52 countries
- 24. COMPETITOR A N A LY S I S context market strategy results tips
- 25. COMPETITIVE S E T Without metrics for MAC cosmetics, we will compare Estee Lauder with LVMH context market strategy results tips Estee Lauder LVMH
- 26. C O N S U M E R A N A LY S I S context market strategy results tips
- 28. P R O D U C T context market strategy results tips Critter Friendly 150 shadow shades eye 160 lipstick shades 40 foundation shades
- 29. context market strategy results tips Product Differen1a1on Strategy -‐ Enhancers: -‐ Develop different blends of pigments to match customer’s needs in interna1onal markets (BRIC) -‐ Develop different durability/intensity of pigments and viscosity to meet PRO versus consumer customer needs. -‐ Drivers: -‐ Durability of long las1ng pigments and rela1vely large product sizes -‐ Quality Aesthe1cs: -‐ dis1nct packaging and limited edi1on
- 31. context market strategy results tips Economies of scope through product family strategy: aggregated materials and produc1on processes over brand extensions lowers VC, allows for more frequent extensions.
- 32. P L AC E 2012 net sales by distribution Estee Lauder context market strategy results tips Other 8% Salon Spas, 10% North American Department Stores, 27% Travel Retail, 11% Retail Stores, 10% Perfumeries, 13% Interna1onal Department Stores, 27%
- 33. P L A C E MAC Canadian Channel Direct Distribution context market strategy www. results tips End consumer End consumer
- 34. CHANNEL P E R F O R M A N C E 1. Customer Reach (volume) • Professional + Consumer • Trade shows, E-marketing context market 2. Operating Efficiency (cost to serve) • Higher margins • Subsidiary Benefits strategy results tips 3. Service Quality (retention) • Customer Intimacy • CRM • Value added sales and services
- 35. P R I C E 1. Value-in-Use Premium Pricing Strategy • context market 2. Company/Product Lifecycle • • strategy results tips Consumer benefit cost Brand extensions justify premium “skimming” price Multi-segment Pricing $20 3. Comparable Prices to Competitors • • • Differentiation Focus on customer loyalty Cost of switching 4. Product Line Pricing • Complementary products $22
- 36. P R O M O T I O N context market strategy results tips
- 37. VIVA GLAM context market strategy results tips 100% PROFITS TO AIDS FUND ONLY ADVERTISED PRODUCT
- 39. R E S U LT S 2012 Estee Lauder Financial Highlights context market strategy results tips $9.7 Billion in Net Sales à 10% Growth Rate $8.56 Billion in Net Earnings à 20% GR
- 40. 2011 SALES R E V E N U E S Estee Lauder context market strategy results LVMH $8.8 $3.2 Billion Billion tips COSMETICS FRAGRANCES
- 41. BRAZIL BRAZIL BRAZIL context market strategy results tips 3rd Largest Global Beauty Market MAC had a 40% Growth Rate in 2011 Succeeding in NINE Cities since 2002 Makeup Forver Opened FIRST Store This Year
- 43. R E C O M M E N D A T I O N S Short Term Employee Attitudes Increase Store Employee Evaluations context Focus on Industry Pros Introduce Store Etiquette Page Positivity! market strategy results tips
- 44. R E C O M M E N D A T I O N S context market strategy results tips