In 1984, a MAC cosmetic was founded by “Frank Toskan and Frank Angelo “in Toronto, Canada. The Headquarter of the company is located in New York.
Market Penetration
Developing the same products for the same customers to increase market share as well as to attain a competitive advantage is called market penetration. Recently, MAC cosmetics have executed a sachet concept to obtain a leading position in the cosmetics industry of India. The logic behind using this strategy is that the sachet contains a small number of products with the small size of packaging that automatically reduces the price of a product that increases the sales. It is very obvious that customers are always attracted to low prices, and MAC cosmetics are very expensive which can only be purchased by upper-class customers. In this situation, selling cosmetics in the sachet will give a chance to low-income customers to purchase MAC cosmetics as well as increase the market share. The purpose of taking this action is to address customer complaints regarding high price products with low durability. Selling cosmetics in sachet packaging would not only decrease the price but also increase customer’s at large extent especially in tier II and II cities of India. Small sachets are easy to carry and very convenient to put in a handbag. Now, students are also able to purchase MAC cosmetics at a low price. The MAC cosmetics are producing different shades of lipsticks, lip gloss, and pigments in mini size. According to sales professionals in Bangalore, now customers are buying two MAC lipsticks and these are very handy to take anywhere. Instead of purchasing standard size, it is better to get mini lipstick because full-size products are costly (Patwa, 2019).
Market Development
Selling existing items in a completely new market to expand market share. MAC cosmetics have provided an Omnichannel shop to its customers by inaugurating an experience center in Shanghai. The first experience center was opened by MAC in the United States of America. But, currently, MAC cosmetics are working on the global expansion of digital mirrors. By using MAC We Chat mini-program, digital totems speak to buyers/customers and welcome them to scrutinize for check-in. Customers are now able to try different shades of lipsticks through a virtual make-up mirror that would allow them to try 18 shades in 30 seconds.
Furthermore, customers in the eye shadow section may select a color from palettes made up of six influencers and then modify them according to their own choice. Additionally, customers would be able to pay and pick-up their customized 3D printed eye shadow palettes through We Chat scanner. The infrared touch screen is installed in the foundation section to develop a color according to the complexion of the customer. The open platform space has been created for master classes and influencer occasions. The inauguration of the MAC cosmetics experience center has recreated the concept of physical retail experience in the more advanced form (Lim, 2019).
Product Development
When a firm plans to invent new products for the existing consumer market for growth and development. In this holiday season, MAC cosmetics have revealed a very glittery beauty product. The cosmetic company has elevated the top on “Starring You” a sparkling new collection for eyes, lips, and face that promotes imagination, originality, and self-articulateness. The new product collection comprises of glitter-covered “Kiss of Stars Lipstick” that provides a variety of different colors like, creamy shimmer and spellbinder Shadow. It is made up of ionized tint that grips the eyelid and appears in four different velvety colors. This new series also contain six-high-sparkly “lip-gloss hues” two “Opalescent face powders”, PowerPoint eye pencil, a set of lashes and a “star studs” lip embellishment. The whole collection is presented in glittery and cheerful coverings (Agency, 2019).
Diversification
Inaugurating a completely new product store into an unknown market for the very first time to expand the business as well as market share. Mac Cosmetics has its makeup store around the globe except for few Asian countries like Pakistan and Bangladesh. It has been observed that Pakistani consumers are interested to purchase Mac cosmetics but they don’t have an opportunity to purchase it from a retail store. Most of the Pakistani women have to order Mac products through online shops but it’s not favorable to purchase online cosmetics because it cannot be tasted.
References
Lim, S. (2019). MAC Cosmetics becomes the latest brand to open a new retail concept store in China. The Drum. Retrieved from https://www.thedrum.com/news/2019/02/26/mac-cosmetics-becomes-latest-brand-open-new-retail-concept-store-china
Patwa, P. (2019). Small packs are now a thing of beauty in the cosmetics industry. Retrieved from https://www.livemint.com/industry/retail/small-packs-are-now-a-thing-of-beauty-in-cosmetics-industry-1553028741076.html
Star Online. (2019). Have a sparkly holiday with MAC Cosmetics’ ‘Starring You’ collection. Retrieved from https://www.thestar.com.my/lifestyle/style/2019/11/20/mac-cosmetics-has-a-sparkly-holiday-collection