Mac Cosmetics Essay Research Paper MAC CosmeticsMakeup

Mac Cosmetics Essay, Research Paper

MAC CosmeticsMake-up Art Cosmetics, also known as M.A.C. cosmetics is a highly unique corporation. Its founders and business strategies are rather simple yet extremely effective in contributing to the companies success. The company does not use any fancy business schemes and it is truly concerned with its consumers. In the beginning, the company struggled to get started, but now a multimillion dollar (and still growing) enterprise, M.A.C. probably has some of the most popular and most demanded for cosmetics available in the market. M.A.C. Cosmetics is a dynamic company which produces skin and hair care, beauty products, and cosmetics, created for everyone. Rich and poor, old or young, conservative or trendy and even for males or females. Sales for M.A.C. are growing rapidly. From 1985 ($600 000) to 1989 ($3 million), sales were steady. Then in 1990 the money really started to pour in, hitting $8.5 million then $18 million in1991. Last years sales (1996) were $70 million and now this years’ estimations are a substantial $160 million. There are currently 108 locations between Canada, the U.S., and Europe, with extreme success in London, England. Although the company could easily expand to may more locations, the company would prefer not to, at least no so fast. They believe that in order to maintain high levels of quality, staying in control, (which means going slowly) is the key. Frank Toskan, 45, founder and CEO of Make-up Art Cosmetics, was previously a Canadian hairstylist, make-up artist and photographer, who developed his own professional cosmetics because he felt that the existing lines couldn’t link with the harsh lighting used in photography, stage , film and video work. Over the last 10 years, 160 shades of lipsticks in 7 different finishes, 150 eye shadows, 60 blushes and hair care have been created for the public. Toskan first started at his kitchen table with the help of his high school chemistry book. With Victor Casale, his chemist brother-in-law, he blended a few new colours. One year later, Toskan formed a partnership with Frank Angelo, a veteran entrepreneur (previous owner of a chain of beauty salons). At first they were turned down by banks, they had to mortgage everything in order to get the company going. M.A.C. was officially launched in 1985, in an old, run-down location in Toronto (Cabbagetown). For years M.A.C. was looked upon as too ‘weird.’ In1988, Toskan and Angelo had to beg downtown Simpsons -now the Hudson’s Bay Company, to take their line of products. They were given a small corner and it soon became the most popular counter in the department store. Currently there are 23 M.A.C. Counters in Bay stores across Canada. Eaton’s originally turned them away and now the partners won’t deal with them. The company hires people based on creative talent, not looks; a novel tactic for this industry. Toskan is quoted saying:”I don’t have the luxury of communicating with my clients, so therefore my salespeople are the link between my philosophy and their customers.”M.A.C. reps behave more like friends or confidants than product pushers. Without having company sales pressure, the laid-back management resulted in a retail staff turnover of less than 7% last year.M.A.C. Cosmetics has a great position on corporate and social responsibility. The public image of this business is supported, due to many different surroundings. M.A.C. is “cruelty-free” and does not test its products on animals. They use simple black and white (recyclable) packaging and they encourage Recycling with the “Back-to-Mac” programme. Customers are given a free lipstick of their choice with the return of six empty containers. The company offers good prices compared to other ‘big name’ companies without any false promises such as miracle (age reducing) creams. While some companies may be nervous about linking their names to the specter of illness and death, M.A.C. is upfront in promoting its support of the fight against AIDS, with its popular lipstick -’Viva Glam,’ 1992 (which also come with a condom) donated to various AIDS organizations. In Oct. 1995, M.A.C. launched a charity lipstick for $16: $6 of which, went to the breast cancer research. They also mix custom products to match the needs of cancer and burn victims on the allergenically challenged. Just recently M.A.C. introduced the “Kid’s helping Kids” which, with the sale of greeting cards (painted by the kids) will be donated to pediatric organizations.

M.A.C. Cosmetics has undertaken many strategies which resulted in the successfulness of the company. Toskan and Angelo had their business strategy figured out. At first they’d sell their make-up to professional stylists and artists and go on from there. Since make-up artists apply cosmetics to actresses and to models, this genius idea set a trend as it was featured in popular shows and/or movies and loved and utilized by favorite actresses. M.A.C. Cosmetics has never tried to target a certain group. Toskan planned to create every shade possible in order to offer a wide variety of shades for each individual. Without a single ad campaign, M.A.C. does not advertise because they do not believe that slogans are as explicit or as effective. They do not want to have to tell someone to buy their products. They also don’t want to put a idealized corporate face on their product. They don’t wan to make a women feel like she has to buy this product. Toskan bring