Business Case Study: Mac Cosmetics

MAC (Makeup Art Cosmetics) is a cosmetic company that has been existed for more than 20 years. The core founders of the company are Frank Angelo, a makeup artist and Frank Tosken, a photographer formerly worked in Toronto. The company was established originally in Canada and has its operating offices in many countries all around the world, for the most part in the North and South America. The company does not use any scientific or fancy business schemes in terms of packaging; rather they use simple plastic or glass material. The company was purchased by the Estee Lauder in 1994 who owns many of the world’s cosmetic brands. M.A.C.has the most diverse and various types of products available in the market. The company offers high quality skincare

The products of MAC company are made of the highest quality material and usually very good tolerated on any types of skin, including aged and sensitive eyes. The ingredients used in makeup texture are more than 90% natural and dermatology tested (MAC cosmetics, 2007, p. 1). The prices of MAC products are cheaper than those of brand ones, even though, the products have soft and nice texture which makes the product competitable in the market. The company produce mainly make up items, such as, face powders, lip balms, eye shadows, foundations and body creams. Figure1: http://www.google.com/imgres?imgurl=http://style.mtv.com/wp-content/uploads/2011/08/vma-mac-makeup-1.jpg&imgrefurl=http://style.mtv.com/2011/08/28/vma-mac-makeup/&h=440&w=576&tbnid=Ez- Future Business Plan:

MAC Company’s future business plan is to penetrate new markets, mainly in Central and East Europe along

The company developed strategy of selling its products within South and North America, however there is still great demand for the product overseas and other parts in Europe. Due to company’s lack of team board members and qualified employees the company is facing a break down in franchising and advertising. “The demand for makeup art cosmetic (MAC) is incredibly high, but the supply is unfortunately not. At present time, MAC is one of the cosmetic lines that has unbelievable demand for it, nevertheless to find MAC stores, campaigns and locations actually very hard” (Bretford, 2007, p. 1 ). This statement describes that there is lack of advertisements and promotional campaigns that would attract ordinary women to try the brand make-up and sell the products. To create such campaigns and advertising locations, the company is strongly in need of experienced employees. The recruitment team needs more and more qualified employees with good experience and motivation. The slow expansion of the company is caused mainly by no physical advertisement outside the United States and people often do not even know about the products and their advantages. The company does not think about any other aspects than retail contract sales. The statistics show that the major and fastest way to get information about MAC products is through limited location in US and via referrals