Marketing Paper - MAC Cosmetics - Product & Place Strategy

10696 Words Sep 26th, 2013 43 Pages
MKTG 200
Paper #2 – Product Survey

Founded by Frank Toskan of Canada in 1984, Makeup Art Cosmetics company is one of the few companies which has used innovative PR and unconventional marketing to create a niche for itself without spending millions of pounds in advertising. The company began by giving away their cosmetics to makeup artists that worked with top models and actresses. MAC developed products that helped artists achieve the right look for stage lighting conditions. It is one of the few brands on the market which has colours to match every skin tone and colour. Working on a simple all encompassing Brand Positioning of Makeup for All ages, all races, all sexes, its brand values project MAC Makeup as attitudinally
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(MKTG 200 – Student Edition, 2013. Lamb/Hair/McDaniel). MAC uses distinct placement strategies to distribute its product.
MAC Cosmetics intensive distribution takes place at mainly all MAC Pro stores, major department stores or international perfumeries, (Nordstorm’s, Dillard’s, Macy’s, Bloomingdales, Neiman Marcus). This allows them maximum coverage and keeps the product available in every outlet where the potential customers might want to buy it. If buyers are unwilling to search for a product, it’s very accessible. They accomplished this by placing it in the types of stores that their target market frequents. (MKTG 200 – Student Edition, 2013. Lamb/Hair/McDaniel).
The only difference between the MAC Pro Stores and the department store counters is the variety of products that are available. Because MAC was first created to cater to the needs of the make-up industry professionals, it’s lines within the PRO stores cater to those needs. There you will find, pigments, palettes, some primers, air brush machines along with old and new limited edition items that are specific to their store and will not be found at the department store counters. This is the only distribution that MAC uses. They do not use wholesalers, and although many inquire about becoming a wholesalers, they currently only use the aforementioned type of placement for their products. ( MAC Cosmetics Frequently Asked

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