Mac Cosmetics market segmentation, targeting, and positioning strategy

Mac Cosmetics

SEGMENTATION:

• How does your selection segment its market? On what basis?

MAC segments its market according to gender, attitudes, lifestyle, brand loyalty, and price sensitivity. Age is a factor in terms of the fun, fresh, continually innovative colors that MAC uses.

TARGETTING:

• Who is the main target?

The main target market for MAC Cosmetics is women, although some specific products are targeted to the male consumer. Geography is not an issue for MAC cosmetics because the brand is marketed worldwide, and makes products for different skin colors. MAC Cosmetics are marketed to a consumer who is not necessarily price sensitive but who cares more about perceived quality and value. Also, the target market cares about branding. The lifestyle issues are important, too, as the main target market is going to exclude women in rural regions, focusing more on working professionals mainly in urban and suburban lifestyles. However, the target market is consumers caring about value and not just perceived quality and branding. MAC cosmetics is a premium, but not a luxury brand.

3. POSITIONING:

• How is your product / service positioned in the mind of the consumers?

MAC cosmetics are positioned based on the target market's attitudes and lifestyle. The stand-alone MAC cosmetics boutiques preclude customers from purchasing the brand from other retail vendors, making MAC seem like an exclusive product. At the same time, MAC is not positioned as a luxury or exclusive brand but more of a high quality populist product. The cosmetics are widely available in malls throughout the world, making purchases accessible to all consumers. MAC is positioned as a hip, quality, trustworthy brand of cosmetics.

4. DIFFERENTIATION:

• How do your product / service differentiate itself from its competitors?

MAC is differentiated from competitors, including other brands within the Estee Lauder umbrella, by physically distancing the product line from others. The exclusive retail shops make MAC seem special, not like other brands. MAC is differentiated also in terms of lifestyle: the independent and young professional will be drawn to MAC as opposed to more conservative brands because of the bright and everchanging color schemes of the cosmetics. MAC products therefore provide apt contrast to predictable and more conservative color schemes of brands targeted to an older consumer; and also to frivolous products that target an adolescent cosmetics consumer.

PART 2:

a. PRODUCT

i. What are the core / actual / augmented level of your product?

The core level of the product, the ultimate benefit for consumers, is physical attractiveness. The actual level of the product is cosmetics, or make-up. The augmented level of the product, the added value, includes the in-store makeovers, company contributions to social causes, and the recycling of their own product packaging.

ii. attributes [features, benefits, quality level, style and design ].

The features of MAC cosmetics include the ability to develop a personalized "look" or "image" via the application of specialized cosmetic products. Some products allow for the covering of flaws and blemishes, whereas others offer the ability to enhance natural physical beauty with increased definition or attractive coloring. MAC attributes also include stylish packaging, which is also presented as eco-friendly because the company recycles or reuses its own containers. Quality level of the products is one of the core attributes of MAC cosmetics, too, which sets itself apart from drug store cosmetics accordingly.

iii. Branding [give a history about the brand name selection process].

MAC is an acroynm for Makeup Art Cosmetics ("How Was MAC Cosmetics Started -- The History of MAC Cosmetics" n.d.). The acronym is an easy-to-remember, catchy, and unpretentious alternative to the full name.

iv. Packaging [Does the packaging affect the purchasing decision?]

Packaging is simple, black, and stylish. It affects the purchasing decision in four ways: brand image; ecological image; aesthetics; and quality. The packaging promotes the brand when MAC products are used in public. Because the company takes back empty containers and reuses them, packaging is also ecological as well as economical. The color schemes are attractive, and the quality of the packaging is such that the containers do not fall apart.

v. In which stage of the Product Life Cycle is your product / service?

MAC cosmetics are still in the growth phae of the product cycle, and so is the parent company Estee Lauder (Ejiofor 2006).

b. PLACE

i. Where is the product / service sold?

MAC cosmetics are sold in MAC boutiques, in select retail outlets, and in the online shop.

ii. Why is it sold here?

The main outlet for MAC cosmetics are the company boutiques, which present the product as an exclusive stand-alone brand. The brand is not sold in drug stores, and many department stores do not have franchised MAC stores either, to promote the image of exclusivity. However, consumers can purchase MAC cosmetics through the company Website.

iii. Do you have suggestions for further selling points?

MAC is doing an excellent job placing their products so that consumers notice, recognize, and purchase them. More presence in Sephora would be helpful for the brand, but otherwise, MAC should not place themselves in too many other department stores because to do so would dilute the brand image.

iv. Is the point of sale effective in reaching the target customers? How ?

The point of sale is effective in reaching target consumers because it actually reflects target consumer lifestyles and attitudes. Target consumers who use the online Website are tech-savvy and may even make their MAC purchases from their smartphones. Consumers who purchase MAC cosmetics in a company store are shoppers who know what they are looking for, rather than uneducated consumers who are simply browsing.

c. PROMOTION

i. What types of promotional activities are done for your product / service?

MAC company stores are their own promoters, creating brand awareness on key high streets and in select mall and department stores. The company does place advertisements strategically in certain fashion magazines. Recently, MAC has begun partnering with brands like DC Comics' Wonder Woman and also Hello Kitty as promotional tools.

ii. Are these types of promotion effective in reaching the target customers?

Given that the Asian market is a growing sector for MAC, the partnership with Hello Kitty is an effective promotional tool (Ejiofor 2006). The Wonder Woman promotion also appeals to 30-something females who recall the television cartoon by that name and who identify with the strong independent female superhero image that Wonder Woman conveys.

iii. Show examples of the promotion done for your product / service.

Images for MAC print advertisements can be found on Google aggregated content: http://www.google.com/search?q=MAC+cosmetics+advertisement&hl=en&client=firefox-a&hs=JAn&rls=org.mozilla:en-U.S.:official&prmd=ivns&tbm=isch&tbo=u&source=univ&sa=X&ei=Y5_LTcTPD5OyhAfB_uWoAg&ved=0CCQQsAQ&biw=1584&bih=681

The Wonder Woman line of MAC cosmetics can be found in its marketing glory here: http://www.stylelist.com/2011/01/14/mac-wonder-woman-makeup-collection-spring-2011/