Week 2 - Strategic Planning

M.A.C cosmetics strives to be the worlds leading make-up authority among both professional make-up artists and consumers.
M.A.C's Strategic Alternatives includes market development and diversification. M.A.C continuously creates new and fresh makeup for its current customers offering new product that are animal and/or environmentally friendly. M.A.C's diversification strategy is well recognized when Estee Lauder Companies (a large U.S manufacturer of skin care, perfumes and cosmetics), brought large shares of M.A.C in 1997 when it was introduced to M.A.C's compact makeup. Not only did M.A.C sell its product effectively but also sold its promise to always create cosmetics products that would appeal to professional make-up artist and fashion forward customers. With M.A.C on their team, Estee Lauder in 1997 net earnings went up to 197.6 million. M.A.C's word-of-mouth strategy (viral marketing), was and still is the most effective technique that M.A.C uses to stay the top seller of cosmetic products all over the world today. Popularity has alot to do with M.A.C selling itself. When M.A.C was first established, it targeted famous celebrities. This target range attracted new consumers, allowing M.A.C to be sold in various countries such as U.S, Canada, Asia and the Middle East. When M.A.C launches a new product from their line, they contribute the funding to different organizations such as in September of 2000, M.A.C creates "Lady Danger" to recognize female empowerment, which attracts many new female consumers.