MAC Makeup Marketing/Brand Assessment
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Transcript of MAC Makeup Marketing/Brand Assessment
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Battle of the Brands: ���
���The Makeup
Wars ���
Julie Browne Zoe Brook Kate Nishida Erica Murray���
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CONTEXT ���
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HISTORY ���
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E S T E E L AU D E R ���
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SCOPE ���
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SIZE ���
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SIZE ���
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ORIGINAL��� IRREVERENT���
COSMOPOLITAN��� INNOVATIVE���
B R A N D P E R S O NA L I T I E S ���
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R
B R A N D E V O L U T I O N /E Q U I T Y ���
AWARENESS��� IMAGE���
Projective SURF
Recall Recognition
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“When you think of makeup brands, which ones come to mind?”���
RECALL���
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RECOGNITION���
95%
YES���58%���
NO���
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MAC ���ASSOCIATIONS���
“Expensive, quality makeup variety.”���
“Eye-shadow, Lipstick, Employees”���
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MAKEUP FOREVER ���ASSOCIATIONS���
“foundation, long lasting, professional”���
“Nothing”���
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MAC PROJECTIVE���
Powerful, Independent, Sexual���
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MAKEUP FOREVER PROJECTIVE���
MAKEUP ARTIST���
Trustworthy, Professional, Credible���
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MARKET ANALYSIS ���
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I N D U S T RY A NA LY S I S ���
0���
1���
2���
3���
4���
5���Buyer Power���
Supplier Power���
Barriers to Entry/ Exit���
Degree of Rivalry���
Substitutes���
Five Forces Analysis���
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G L O B A L M A R K E T VA L U E ���
0���
5���
10���
15���
20���
25���
30���
35���
40���
2006��� 2007��� 2008��� 2009��� 2010���
Mill
ions
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Sales ($M)��� $3.5 Billion���
Increasing Trend���
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G L O B A L V O L U M E S O L D ���
3,200��� 3,300��� 3,400��� 3,500��� 3,600��� 3,700��� 3,800��� 3,900��� 4,000���
2006���
2007���
2008���
2009���
2010���
Units in millions���
Units
$3.9 Million��� Increasing Trend���
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M A R K E T A NA LY S I S ���
Face ���36%���
Nail ���11%���
Lip���25%���
Eye���28%���
Market Segmentation by Make-up Component���
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M A R K E T A NA LY S I S ���
41.2���
30.5���
25.7���
2.5���
Global Market Segmentation���
Europe���
Americas���
Asia-Pacific���
Africa and Middle East���
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M A R K E T A NA LY S I S ���
23.7���
7.7���
7.4���61.2���
Global Make-up Market Share in 2010���
L'Oreal S.A.���
The Procter & Gamble Company���
The Estee Lauder Company���
Other���
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������
63 countries
C O M P E T I T O R A N A LY S I S ���
MAC��� MUF���
$20
$60.79 SP��� €126.75 SP���52 countries
$20
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C O M P E T I T O R A NA LY S I S ���
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C O M P E T I T I V E S E T ���
Without metrics for MAC cosmetics, we will compare Estee Lauder with LVMH���
Estee Lauder��� LVMH���
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C O N S U M E R A N A LY S I S
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MARKETING MIX ���
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PRODUCT ���
150���eye shadow shades���
160���lipstick shades���
Critter Friendly���
foundation shades���
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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
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BRAND EXTENSIONS ���
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Economies of scope through product family strategy: aggregated materials and produc1on processes over brand extensions lowers VC, allows for more frequent extensions.
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PLACE ���
North American
Department Stores, 27%
Interna1onal Department Stores, 27% Perfumeries,
13%
Retail Stores, 10%
Travel Retail, 11%
Salon Spas, 10%
Other 8%
2012 net sales by distribution Estee Lauder���
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PLACE ���MAC Canadian Channel Direct
Distribution���
End consumer
End consumer
www.
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C H A N N E L P E R F O R M A N C E ���
1. Customer Reach (volume)���
• Professional + Consumer • Trade shows, E-marketing
2. Operating Efficiency (cost to serve)���• Higher margins • Subsidiary Benefits
3. Service Quality (retention)���• Customer Intimacy • CRM • Value added sales and services
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PRICE ���1. Value-in-Use Premium Pricing Strategy���• Consumer benefit > cost
2. Company/Product Lifecycle���• Brand extensions justify premium
“skimming” price • Multi-segment Pricing
3. Comparable Prices to Competitors���• Differentiation • Focus on customer loyalty • Cost of switching
4. Product Line Pricing���• Complementary products
$20���
$22���
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P R O M O T I O N ���
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VIVA GLAM���
100% PROFITS TO AIDS FUND���ONLY ADVERTISED PRODUCT���
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RESULTS ���
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RESULTS ���2012 Estee Lauder Financial Highlights ���
$9.7 Billion in Net Sales à 10% Growth Rate���
$8.56 Billion in Net Earnings à 20% GR ���
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$8.8 Billion���
$3.2 Billion���
2 0 1 1 S A L E S R E V E N U E S ���
Estee Lauder��� LVMH���
COSMETICS & FRAGRANCES���
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BRAZIL BRAZIL BRAZIL ���
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���������
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RECOMMENDATIONS ���
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R E C O M M E N D AT I O N S ���
Short Term
Employee Attitudes���Increase Store & Employee Evaluations
Focus on Industry Pros Introduce Store Etiquette Page
Positivity!
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R E C O M M E N D A T I O N S
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QUESTIONS ���