ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 2. Marketing Essentials

Submission date December 20, 2018 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Group number: Student names & codes Final scores Signatures

1. Tran Cong Thuan Thuan

2. Nguyen Lan Tu Tu

3. Tran Duy Hung Hung

4. Ho Ngoc Minh Anh Minh Anh

Phuong
5. Nguyen Nhu Phuong
Class GBH0704 Assessor name Nguyen Phuong Tu

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that making a false declaration is
a form of malpractice.

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Matte for Charismatic Lips

A Marketing Strategy of M.A.C

* *
 Introduction

The full name of M.A.C Cosmetic is Make-up Art Cosmetic, its headquartered is in New York City. The
brand was founded by two Canadians, Frank Toskan and Frank Angelo. In 1991, the company opened its
first store in New York. Initially, M.A.C designed the product for professional make-up professionals;
however, now the M.A.C’s products have been sold to all customers around the world. In 1998, the M.A.C
brand was managed by Estée Lauder Group after its founder, Frank Angelo, passed away in 1997. The
M.A.C specification is that most of the M.A.C products do not contain oil, pioneering in making the latest
makeup trends. The most outstanding point of M.A.C is that they just focus on the makeup professional tools
while others brand also focuses on skincare products.

One of the most public-appealing and striking product line of M.A.C is M.A.C Matte lipstick. The product
line possesses a stunning range of color and the outstanding ability to sustain water and other environmental
fade-effect factors. This lipstick will absolutely change the way everyone looks at the cosmetic industry in
a completely different way, that lipstick is not only used to adorn people’s beautiful lips, but also serves as
a makeup tool. It can replace any other makeup such as eyebrow brush, cheeks, eyebrow pencil, etc.

Executive Summary
M.A.C Cosmetics has always been the leading pioneer in the beauty industry with many products of excellent
quality. The mission of the company is to offer people the chance to make themselves look more stunning
regardless of their age, race or sex. M.A.C Cosmetics sells more lipsticks than any other brand in the world,
making every single project of M.A.C become a spotlight for the company to show off its capability and
position in the beauty industry.

This Marketing Strategy would set main focus on the launching of the newly developed product line M.A.C
Matte Lipstick in Vietnam market which involves the analysis and specific details of the M.A.Croeconomic
& Microeconomic influencing M.A.C Cosmetics’s business in Vietnam, setting objectives of the marketing
strategy, marketing strategy (segmentation, positioning and application of 7 P’s), actions program, financing
(managing the budget) and marketing control (supervising all planned activities to make in time
adjustments). Vietnam in the recent years has been an open market allowing the foreign investors to open
more business in the country, creating a competitive but profitable market. The plan sheds light on how
different factors influence M.A.C Cosmetics when investing into Vietnam via the new product line; thereby,
suggest the reasonable and plausible plans for M.A.C Cosmetics to conquer the market.

M.A.C Background

Makeup Art Cosmetics brand idea started in Toronto due to the frustration of a photographer Frank Toskan
and a salon owner Frank Angelo. According to “Our Story” published on brand’s official website, their
frustration was about the quality of makeup because they could not capture applied makeup so well into their
photographs, therefore, they decided to create their own makeup products. At first, a distribution place was
their salon and it went straight to makeup artists, models and photographers, however, stylists and fashion
editors soon became their customers. One of the first ways how their makeup products spread was through
praises from magazine credits and the growth of the word-of-mouth popularity, therefore, Toskan and
Angelo launched their products under the brand name M.A.C Cosmetics in March 1984 in a Toronto
department store. Even though majority of beauty companies were predominantly focused on skincare
products at that time, M.A.C Cosmetics differentiated itself by focusing on color makeup. M.A.C Cosmetics
quickly gained on popularity in the industry and it explained this success by describing its product as a
combination of “street savvy with glamorous style and wide range”. However, it became as a part of Estée
Lauder Companies in the year 1994 and until now it can be found in over 105 countries around the world.

Market Analysis
Vietnam is considered as a promising country to invest in as it is one of the five emerging countries and the
only Asian nation where the economic growth is above its average growth rate since the year 2010.
Vietnam’s economic growth at the year 2012 was 5.2% and by each year its growth rate increases where the
growth rate reach 6.1% at the year 2015 following by the forecast growth increase to 6.2% in 2016.
Investment into the cosmetic market in Vietnam should be taken into consideration as this sector is
considered as having a huge potential to grow because the annual turnover of the cosmetic sector in Vietnam
is approximately 15 trillion VND which is around 704.2 million USD (2016). The average spending per
capita on cosmetics was only 4 USD per person per year which is still low in comparison with Thailand
where the average spending per capita was 20 USD per person or Taiwan which had the average spending
per capita of 41.7 USD. This shows the potential of this market sector in Vietnam to grow. The reason behind
the lower spending on cosmetics and that is because the market in Vietnam is highly uncontrolled and it is
flooded with a wide range of smuggled, mislabeled and fake products. Therefore, there are many cheap
cosmetic products in the market which can be bought at small retail street outlets or in daily open-air
neighborhood markets. At these places, consumers can purchase in really cheap prices only about 45,000
VND which is in US currency around 3 USD. Meanwhile, they would pay at least two times higher price
for similar products in cosmetic or department stores.

Those illegal and unofficial imports comprise about 60 to 65% of products that are sold in the Vietnamese
market. This would be one of the biggest threats for foreign brands.

Nevertheless, foreign brands have taken 90% of the market share in cosmetic sector in Vietnam and currently
there are over 400 cosmetics businesses operating in the country including domestic businesses. Korea owns
the biggest cosmetic market share in Vietnam with 30% followed by other foreign countries such as EU with
23%, Japan with 17%, Thailand owns 13%, USA owns 10%, and other foreign countries have only 7%
together. The reason that Korea has the highest market share is because Vietnamese people view Korean
brands as it is a brand of youth and especially affordable brand. On the other hand, US cosmetic brands are
associated with the good quality but expensive ones and they consider US cosmetics as products for adults.
Brands that are considered as a good quality value for money are the ones from Japan.

External Influences on the Market

Economic Trends
The obvious ongoing recession has led to many consumers trading down on some products and as a result
they become accustomed to buying lower-priced products. While drug store brands might not offer
consumers the same benefits that high-end brands like M.A.C. can, they cost much less. High-end products
can really take a bite out of your budget which can deter consumers from spending their money on our brand.
With a poor economy such as this one, people are finding ways to save their money. The reality is that
drugstore brands do offer some great products and so there is an industry concern that consumer might
continue these habits as financial pressures ease up in the future. However, the market for cosmetics has
fared better than other industries because consumers view these products as affordable luxuries. People are
competing in a tough employment market and as a result they need to look their best to convey confidence
in an image-conscious society. Many high-end brands take advantage of this opportunity as their products
are often promoted by professional men and women.

Demographic Trends
To begin with, the population of Vietnam is growing fast in parallel with other countries in Asia such as
China and India. Vietnamese population grows fast would indicate that the needs for cosmetic products will
undeniably increase. Also, the living standard of people in Vietnam is improving day by day as the economy
system of the country has shown many positive signs for the past 10 years. When people have better live,
they will think about making them look better by make-up.

The use of cosmetics has become more commonplace among men in Vietnamese society. Although women
continue to outnumber men, the male population is expected to grow at a somewhat faster rate. The reason
for this could be the need for higher beauty standard for modern men as well as the popularity of LGBT
community. This can be used to our advantage as it would provide us with an opportunity to increase
penetration of cosmetics and fragrances among the growing male consumer base. An increasing population
will also benefit the cosmetics industry. While an ageing population could prove to be unfavorable, teenagers
and young adults are the most avid users of cosmetics and fragrances. This generation is also very brand
conscious, often with the disposable income and a pride in appearance making them more likely to pay more
for premium-priced products that promise additional benefits.

Social Trends
Social trends change with time but it is important to keep up with these trends. Knowing what’s going on in
the industry and in the market helps brands so that profit can be maximized. Now more than ever, there is a
lot of money to be made in the cosmetics industry. Consumers are constantly searching for new products
and to keep up with demand, companies are regularly introducing new products in the market. These
products offer older women a chance to look younger while promising glamour to younger women.
Magazines have huge beauty sections because advertisers pay a lot of money for glossy ads about numerous
products. So while it costs companies little money to produce items, women and girls will are ready to pay
huge amounts of cash to buy it. Today, beauty goes hand in hand with youth so many women look for
products that will reduce their aged appearance. Looking old is undesirable in today’s society. As a result,
many companies in this industry offer products that reduce wrinkles, facial lines and spots. These are
represented as occurrences that need to be treated as soon as possible. Celebrities are used by many cosmetic
companies to promote products because it gives their brand a lot of exposure. While many celebrities might
not actually use these products, consumers truly believe these products will make them look as attractive as
women seen in movies and on TV. Media has a growing influence over what is portrayed as beautiful in
today’s society.

Technology
The cosmetics industry is continuously growing, now more than ever thanks to the Internet. Many companies
can now sell their products online, making it easier for some to sell products in countries where they don’t
have any representatives. Thus allowing the cosmetics market to become highly competitive. Today,
consumers have access to apps that do not only show what ingredients go into certain products but also allow
people to see how make-up can be applied. Consumers are always looking for new techniques. Social media
is also used by a growing number of companies and brands to help them connect to the public. Tools such
as Facebook and Twitter are now used to launch new products, to give consumers a play-by-play of a show,
to get feedback and a number of other things. Technology has revolutionized the way the cosmetics industry
works.

Competitive Analysis
Cosmetics market in Vietnam is booming with innovation, creativity and competitiveness. Hundreds of
thousands of cosmetic brands have appeared in various forms such as opening representative offices, setting
up sales agents, setting up companies and building factories. Most famous brands in the world like Estee
Lauder, Lancome, Shiseido, Fendi, Lower, Clairins and L’oreal have also appeared in Vietnam. Some of the
local brands also have a certain position in the homeland market such as Sai Gon, Thorakao, Lana, Biona,
Xmen and Thai Duong. Vietnam's cosmetics market has a turnover of around VND15 trillion ($ 700 million)
a year. According to the Nielsen Market Research Company, Vietnam's consumer spending on cosmetics is
limited, with an average of $ 4 per person per year, while Thailand is $ 20. This indicates that Vietnamese
is a highly competitive market with lots of competitors in one arena. Meanwhile, the spending power of
Vietnamese is restricted within $4 per year. However, as the population of the country is rather large,
indicating that total number of profit per product would make up for the less appealing price that customers
could afford. Therefore, M.A.C could still have a chance to develop in Vietnam.

Brand Analysis
M.A.C is a professional level make-up retailer owned by Estée Lauder, known for their high quality product
and social responsibility. M.A.C is trusted by many professionals and everyday people. The brand has many
faithful customers both old and young. They are most popular with females between the ages 18 to 30.
Although the brand has a vision to offer products for people of all ages, the older demographic is less aware
and less loyal to the M.A.C brand. M.A.C offers a high quality product sold at a value-based price. 5 Their
products range from make-up brushes to lipsticks. These products are available to consumers in 1000
locations worldwide. These locations are in more than 70 countries and territories. M.A.C’s large reliance
on word -of-mouth endorsement has been a key to their success. Make-up artists, models, photographers and
journalists all around the world have shared their love for the product and boosted the image of M.A.C as a
professional grade beauty brand.

SWOT Analysis

Strengths
M.A.C Cosmetics is a globally acknowledged cosmetic company providing makeup for all races, ages and
genders. The company has long been in strong and good relationship with many famous figures such as
Mary J. Blige, Nicole Richie and Nicki Minaj. Additionally, the brand has received a lot of praises from
professional makeup artists. M.A.C Cosmetics takes pride in its creation of high-quality, fashionable,
fashion-futuristic products that are cruelty free while providing consumers with the experience with
professionally trained makeup artists. Furthermore, M.A.C Cosmetics has a program named the “M.A.C
Program” rewarding the company’s loyal customers. Through activities like this, M.A.C has ensured the
customers’ loyalty by making them feel important and recognized, increasing the satisfaction and
commitment of customers to M.A.C.

• Association with the fashion business: The cosmetics major M.A.C was initially made for
professional models where they could withstand the strong lights and glare of the ramp. Their first
set of customers who were either models, stylists, professional makeup artists, photographers etc.
introduced the brand to key influencers of the fashion world like designers and editors of popular
fashion magazines.

• Employees: The employees of M.A.C Cosmetics are mainly makeup artist or professional of
makeup, they are selected with carefully observation of details and they had the direct or indirect
connection in the makeup industry, this make them not only experts but also prospective customer
or influencers.

• The wide range of Products: M.A.C Cosmetics offer a wide range of products such as lipsticks,
blush, rouge, eyeliner, mascara, foundation, concealers, eyeshadow, … They often have
mineralbased makeup in each of these categories and most of their products is made with the form
of lotion as well as powder.

• Makeup for multiple segments: M.A.C is true to its slogan ‘All ages. All races. All sexes’ wherein
it makes makeup catering to a number of different segments. M.A.C with the vibrant colors and
bright hues made the brand appealing to younger audiences. M.A.C does research on all its products
to make sure that they are suitable for all types of skin and thus makes the cosmetics suitable for
women of all racial groups, ethnicities, and cultures as well as even men.

• Unique Lipsticks: Lipsticks are products which made M.A.C become a well-known brand, with the
popular packaging signature black cases and a wide range of color and texture, customer can find
their suitable shade in about 12 kind of lipstick texture with more than 100 color.

Weaknesses
M.A.C does not have any considerable weakness which clearly illustrates the love of people all over the
world for the brand. One weakness of the company is that its pricing is higher than the average price of other
cosmetic brands. For the average minimum wage person, M.A.C Cosmetics’ prices could be the only and
primary reason for him/her to un-purchase the product. Moreover, the reception of M.A.C Cosmetic PRO
color line could only be carried out by professional make-up artists instead of the people in general. Not
having the professional color for the public could be a hinder for M.A.C when making efforts for a
longlasting consumer-buyer relationship.

• Picky in pricing: M.A.C cosmetics’ average price is premium since it it’s the high-end brand. So, it
is quite picky consumers, only for who can earn a high income that can afford the M.A.C products.
• Picky in skin tones: M.A.C Cosmetics are based on research done on Caucasians, people that have
bright skin tones. Therefore, M.A.C cosmetics are tending to be more suitable for bright skin than
for the dark skin tones. It also explains why Asia is not the most suitable M.A.C market for rocketing
their revenue like the Europe and America do.
 • Picky in adapt to new demands: The M.A.C Cosmetics are quite left behind in the nowadays
cosmetic market. The cosmetics sector is filled with the world consumers, whose demands are keep
changing the market. Sticking with the original lipstick’s formulas or rigid professional make up
products are not the safe way for long term compete. That’s why M.A.C eventually decide to launch
the newly developed M.A.C Matte to join in the game though it is a late start.

Opportunities
M.A.C Cosmetics has several marketing opportunities for them in Vietnam that will ultimately help generate
more sales. First of all, Vietnam is a potential market for cosmetics with annual sales of cosmetics up to
more than $ 700 million. The economic growth rate is higher than the average growth rate and people are
earning higher income than in previous years. Moreover, the demand for beauty of the Vietnamese people
is increasing, especially the youth. Young people in Vietnam tend to dress and make-up in the West so
M.A.C products will take advantage of this market. Besides, the US brand name products are considered
good quality in Vietnam so the M.A.C owns a large number of loyal customers. One of the factors that
helped expand M.A.C's market share in Vietnam is the development of e-commerce with online shopping
services such as Tiki, Shopee, Lazada, etc. Currently, M.A.C has not been sold much on online shopping
sites, so M.A.C is considering increasing its market share by partnering with online shopping.

Threats
The main threats that M.A.C Cosmetics has to face up with are the competitors in the cosmetic industry
including Lancôme, Clinique, and L’Oreal. These brands are closely priced, effortlessly accessible, and
possess competitive quality comparing to M.A.C Cosmetic. In addition, drug store brand name such as
Revlon and Maybelline, even though lesser in terms of quality, offer absolutely competitive price and are
far more available than M.A.C Cosmetics in general. Though the economy has a major negative effect on
some non-essential industries, the cosmetics industry has been maintained quite stable and untouched.

• Other cosmetic brands: In addition to M.A.C cosmetics in general and lipstick in particular, there
are many competitors in the market, especially when the needs of beauty consumers are increasing
day and many other cosmetic brands are. Invest in research to enhance the competition with M.A.C.
The figure is the famous cosmetic brands such as Maybelline, loreal, Sephora, etc. So M.A.C should
have novel designs and better features for the user.
• Organic cosmetic market: Nowadays, life is growing and the demand for safe and healthy cosmetics
is increasing. So the cosmetics market is made of organic products have been born and increasingly
competitive with the chemical cosmetics companies. And one of the biggest exceptions to M.A.Cs
is that they contain a lot of lead, so there's a risk that other brands of organic cosmetics will be
overwhelmed.
• Cheap cosmetic brands: One of the biggest threat of M.A.C cosmetics is the very high price, the
price of the cheapest lipstick has fallen to around 20 euros. M.A.C's products are mainly used by
actors or makeup professionals who have high incomes. Therefore, these products are not accessible
to many consumers, unlike L’oreal or Sephora which have the cheaper price.
• Online selling and retailers: This is also a big threat to M.A.C cosmetics because there are very
few M.A.C cosmetics stores around the globe or only concentrated in densely populated areas so it
 is impossible to reach many customers. In addition, retailers do not regularly import M.A.C products
for business because it is expensive, so it is difficult to sell compared to other types of cosmetics.

Objectives

The objectives of M.A.C when launching the newly developed product line M.A.C Matte Lipstick in
Vietnam cosmetic market are various. However, all expected goals could boil down to several main points.
First of all, the primary goal of M.A.C is to meet the demands of the customers so as to make profits from
it. When launching M.A.C Matte in Vietnam, M.A.C targets the consumers, especially female, who wish to
make up professionally. They usually have a stable job with good income (at least 15 million VND per
month). This segment of consumer does not consist many individuals; however, the number of which is
continuously growing as the living standard of Vietnamese is increasingly high. Within the first twelve
months, M.A.C Cosmetics plans to sell a million Matte lipsticks for mainly Vietnamese successful women
and gain 18 million dollar of profit (not including tax and other fees). Second, the launching of M.A.C Matte
Lipstick, the moderated one, would be the first step for the company to conquer Vietnamese market. The
product line clearly shows its superiority others with its range of colors, flavors, characteristics and uses
when comparing to other lipstick products. The biggest hindrance is the price of the lipstick. Despite this,
with superior quality and well proven reputation of M.A.C, the product line will soon win consumer’s trust
and loyalty; therefore, has more market share gradually. This would set the base for M.A.C to stand strong
in Vietnamese market.

Marketing Strategy

Target Segment
The product is for everyone of all age, race and gender. However, the main, focus and target segment is:

- Women from all big and busy cities such as Hanoi, Ho Chi Minh City, Hue, Da Nang and so on.

- Age 22-55 years old from middle or high class.

- Have a stable job with good monthly income (15 million VND at least).

- Have a good taste for fashion.

Positioning
M.A.C products have always been “the child of lux” in the eyes of consumers and the newly developed
M.A.C Matte is no exception. From design to quality of the lipstick, each feature has to combine well
together to create M.A.C Matte, the type of lipstick that gives the consumer the feeling of upgradation and
high class. The price of the M.A.C Matte is $30 per each product, which makes the product line itself
become more and more luxurious as the consumers would consider the more expensive product would be
more likely to have higher quality. M.A.C Matte Lipstick would be observed as within the top highest of
quality and expense comparing to the other categories of lipstick of other brands such as Lowder, Fendi
and L’oreal.

7 P’s Application
1. Product
• With a wide variety of product availability and premium product quality, M.A.C. has gained
worldwide recognition and respect as a brand. Successful campaigns like the ‘Viva Glam’ saw a
number of celebrities working alongside the company. The campaign aimed to promote charity for
AIDS/HIV. And with the brand new lipstick Matte M.A.C, M.A.C create 20 different colors to meet
the objective of diversity, and its color, its name base on the color of fruit, which made this collection
of lipstick more unique than others.
• M.A.C Cosmetics provides a variety of makeup products: lipsticks, eye shadows, mascaras,
foundation, mineral powder, etc. most of the products are oil free which benefits the skin as it
prevents the water loss which is believe for makeup to be more efficient and stay on for longer. With
M.A.C Matte, it can be transform from lipstick to eye brown pencil, eye liner, blush, eye shadow and
mascara. These 6 functions of this product made users feel more convenient and interesting because with
just one product, they can use it 6 different ways on their face.
• Normal lipstick of M.A.C often have the smell of vanilla extract which is fragrance, and with M.A.C
Matte lipstick, the smell of the lipstick depending on its name, for example, water melon, pine apple,
grape and so on.

2. Price
• M.A.C Cosmetics could be a classic and notorious brand that includes an ageless quality joined to
its brand power. People are willing to pay astronomical figures so that they can remain joined to this
high-profile brand title. M.A.C contains a portfolio that screeches of tall premium merchandise and
subsequently the company has embraced a premium estimating technique for all its items.
• M.A.C Cosmetics moreover takes after item line pricing at some of the times to gather superior
promotions and sales by advertising complementary items and other incentives.
• M.A.C Cosmetics have a specialty taking after in fashion and retail market. Within the starting, its
items were planned for experts like make-up specialists, actors and models but with time the
company has expanded its target clients including customers from the shopper market.
• Referring to price, with M.A.C Matte lipstick - a lipstick can replace almost other makeup tools such
as pencil eyeliner, cheeks, foundation cream. It will cost about $ 30 - about 700,000 VND. This is a
very reasonable price for the Vietnamese market because according to statistics by the Ministry of
Labor, War Invalids and Social Affairs in 2018, the average income of a normal worker in Vietnam
is 7 to 10 million VND. In addition to the population of Vietnam is young population should have
high demand for cosmetics, so M.A.C lipstick will be the right choice for them if the need to use a
multi-functional cosmetics. Here are details the price to make a lipstick:
- The cost of making the box and the shell of the lipstick: $2
 - Cost of materials: $ 3
- Logistic: $ 3
- Processing cost: $ 2
- Marketing price: $ 2
Total cost: $ 12
Profit: $ 18

3. Place
M.A.C is a worldwide franchise, so the product can easily be sold to every consumer whether by in store
pick up or online order. M.A.C Matte can still be distributed in Vietnam as well as others branches by
applying M.A.C’s standard distribution of which distributor is Estee Lauder who has produced and
distributed for M.A.C since 1984. The distribution has two levels: from manufactory to M.A.C retailer
locations then to customers, and from manufactory and directly to customer via online and phone sales.
Since M.A.C is a high-end brand, their transportations are diverse and professional. For international order,
the products will be delivered by ship or air plane. For national, it will be delivered by trucks and local
delivery system. Especially, after taking in the customer feedbacks about the old M.A.C Matte lipstick
packing, the newly developed M.A.C Matte will be packaged with a red velvet material throughout the
lipstick’s packaging to avoid the damages and cracked during the deliver and customer experience, and it
also adds the esthetic side to the new M.A.C Matte lipstick.

The product would be display on many online market such as Tiki and Shoppee in order to reach closer to
the public. M.A.C plans to build up a range of stores in the big and busy cities such as Hanoi, Ho Chi Minh
City and Da Nang to make the most of the high-class and large population of such metropolis. The stores
are linked together both online and offline so that they could help one another out during hard period of time.
For example, when one store has run out of M.A.C Matte product, the other stores would share the source
of products that they have for the lacking one.

4. Promotion
In this new promotional campaign M.A.C Cosmetics will also expand on their use of interactive media by
hosting many different mall events throughout the United States. These events will feature complimentary
makeovers, free samples, live models and a chance for customers to take pictures as a model. These events
will be a great way for customers to be able to learn more about M.A.C cosmetics in a fun and interactive
way. M.A.C will send out emails to all existing customers in the area informing them about the mall event.
M.A.C will also have signs on mall entrance doors as well as fun music playing to draw in curious people
walking by. At these mall events M.A.C will give free makeovers to any consumer who would like to
participate. After they receive their makeovers customers will be able to participate in a M.A.C photo shoot,
where the customers will take a picture and receive an online code where they can upload their picture for
free. Make consultants will also be passing out small free samples to consumers so they can get a feel of
how great M.A.C make-up is. M.A.C will also have hired models walking around and posing with various
makeovers to show consumers everything they can do with M.A.C make-up. By hosting these mall events
M.A.C will introduce their make-up to new consumers and M.A.C will get more customers in the store and
increase revenue.
M.A.C’s promotion campaign will also consist of media with many new direct mail-outs to send to M.A.C
customers. These direct mail-outs will be sent to all loyal M.A.C customers who already have a history of
purchasing M.A.C products. The M.A.C direct mail-outs will showcase the latest trends and colors for the
season and potentially drive the customer to shop online or in the store. M.A.C will send out direct mailouts
presenting the newest M.A.C products. For example, the new color tones for winter 2016 or Summer 2017.
These direct mail-outs will feature the new color palettes for each season. These direct mail-outs will also
feature new products introduced to M.A.C cosmetics. Special offers such as free shipping on orders over a
hundred dollars, free cosmetic bag with purchase of a new product, and coupons such as ten dollars off of
fifty dollars or twenty dollars off of one hundred dollars.

5. Process
There are four types of service processing including People Processing, Possession Process, mental Stimulus
Processing and Information Process. The Marketing Strategy would resort to each type of service processing
in certain cases. People Processing could be used mostly when the consumers need to test the quality of the
lipstick. In this situation, the employees in the store would help the consumers to test the lipsticks by offer
some for-testing-only lipsticks with a range of different colors and then help the consumers check out the
lipsticks. For many cases, Information Process along with Possession Process are involved which are when
the consumers order the products online and the product is shipped to the consumers’ accommodation. The
employees of M.A.C would provide all information about M.A.C Matte lipsticks for the customers to choose
and the chosen ones would be delivered to the doorstep of consumers.

Generally, M.A.C Cosmetics would have two groups of frontline employees to conduct each types of service
processing. The first group stays at the stores to answer online order/questions as well as test M.A.C Matte
lipstick with the clients. Another team would be responsible for delivery service, bringing in the product to
the customers’ place of reception.

6. People
The staff of M.A.C requires a large amount of labor force. This analysis would focus on the frontline staff.
The main features of the staff:

• Mainly female
• Having charismatic/ pretty outlook (at least 1.62 meters in height, pretty facial and body features)
• Having good knowledge about the fashion industry and the product
• Having good taste for fashion
• Possessing good skills, knowledge and ability of a salesperson along with professional working
attitude

7. Physical Evidence
M.A.C is one of the cosmetic company is investing in physical Evidence. The front side of the store will be
from glass allowing all people passing by to see into the store. This can maybe attract even people that do
not know about M.A.C at all into the store because they will be drawn by the design of the interior of the
store. Products displayed in shop windows will not be simply exhibited there but there will be
complementary accessories to make shop windows more lively and attractive. When customer steps inside
they will notice black and white shelfs which are in contrast with lively and colorful products and store
accessories. Colorful eyeshadows will be exhibited on the opposite wall to the entrance and they will be
arranged in eye-catching color transition. The design of makeup table is in vintage style and will be painted
in white with pink drawers. On the table will be makeup tools with few M.A.C’s products and large mirror
which is designed in mix style of vintage and modern professional makeup. There will be fake colorful
flowers randomly placed in the store. Only real flowers will be in the vase on cashier’s desk and makeup
table. Music will be played in the adequate volume which means that customers and employees will be able
to hear each other while talking in normal voice tone. Music that will be played in the store will be
international music pointing to the fact that brand is global. Lightening in the store will be standard normal
lightening with simple vintage chandelier which in the ends will have little crystal drops and little colorful
crystal flowers. Design of the store will be a mixture of modern and vintage style with color play, therefore,
it makes store to look fancy and cozy at the same time.

Action Program

Actions Responsibility Timeline Estimated Budget

1st product testing on Product development 30/08/2018 $17200

people department
2nd product testing on Product development 30/11/2018 $17200
people department
Advertising product to Marketing department 10/12/2018 $650
representative artists,
famous youtubers,
beauty bloggers, loyal
customers
Stock the M.A.C Matte Promotion department 20/12/2018 $1500
in every branches and
stores to get ready for
the launch day
Officially launch the Sales department 24/12/2018 $2000
M.A.C Matte
 Market the M.A.C Marketing department 29/12/2018 $200
Matte in Ariana
Grande’s concert at the
Chelsea, the
Cosmopolitan of Las
Vegas, Nevada (The
US))

Financing

Estimated marketing budget

The marketing budget is created by the top- down way by the Marketing operations, the money spending for
marketing is 500.000 dollars. M.A.C will have to spend 10% of its 2018 sales for the marketing strategy of
2019. Marketing Mutil M.A.C will be by means of media, social network, ... to make the customer easier to
in identify the product.

Budget for employee salaries -

CEO:
- Makeup Artist: 17.54$ per hour
- Retail Assistant Manager: 47,903$ per year
- Store Manager: 56,817$ per year
- Training Assistant: 50,000$ per year
- Designer: 4000$ for th e design of Mutil M.A.C
- SEOER: 35,400$
- Marketer: 62,540$
The average M.A.C Cosmetics salary ranges from approximately $31,049 per year for Make-up Artist to
$61,277 per year for Assistant Store Manager. Average M.A.C Cosmetics hourly pay ranges from
approximately $16.06 per hour for Beauty Consultant to $22.00 per hour for Store Manager.

The marketing budget is created by the top- down way by the Marketing operations, the money spending for
marketing is 500.000 dollars. M.A.C will have to spend 10% of its 2018 sales for the marketing strategy of
2019. Marketing Mutil M.A.C will be by means of media, social network, ... to make the customer easier to
in identify the produc.

Budget for advertising

Advertising on Woman channel, magazine, malls,...

- Woman channel advertising cost: 2000$

- Magazine adversiting cost: 1100$
- Mall adversiting cost: 3500$

Marketing Controls

Retail/Sales: every salesman and retail managers are requested to attend during the M.A.C Matte’s training
sections to have a full knowledge and skill about the new products. The salesman is required to conclude the
advantages, new things, benefits, price, promotion about Multiple M.A.C to attract the potential customers
and the customer relationship management (CRM), while the manager’s duty is to ensure the sales
employees smoothly meet these requirements. The M.A.C’s big leaders of sales and training are in charge
for sketching and organizing the training, and they also need to inspect the achieving goals’ process of
employees and the revenue of the Multiple M.A.C regularly.

Company: Helen Lazic, who is the Vice President of M.A.C cosmetics global store, needs to observe the
objectives and dissociate its affection through the reports sent by the managers.

Advertising: The marketers’ duties are to pick out the date and schedule, then contact to Multiple M.A.C’s
representative artists, beauty bloggers, Youtubers and the most popular media communications to introduce
and inform the product to the markets.

After each time a customer buy a product, the salesperson has to make sure that his/her information is saved
in the customer caring system of M.A.C. Each two months, researchers from marketing department would
conduct surveys and studies about customers’ satisfaction and awareness by taking feedbacks from them.
Moreover, every two months, the marketing department would hold a meeting to provide its employees with
necessary information such as sale revenue, customer commitment and ROI (Return on Investment) so that
everyone could have an in-depth knowledge about the operation of the marketing plan as a whole. Basing
on the information, necessary adjustments would be carried out when there are mishaps in the operating
system of the strategy.