Topic > Mac Cosmetics - 1884

MAC (Makeup Art Cosmetics) is a company of Canadian origin that has been operating for more than 20 years and has already penetrated many countries around the world, at most in North and South America. Sells high-quality branded cosmetics intended for professional and everyday use. The brand is also sought after by many celebrities, models and photographers for its delicate texture, wide choice of colors and durability. The products are generally very well tolerated on every skin type and MAC makeup items are suitable even for women with sensitive eyes (MAC, 2007, p. 1). The prices of MAC cosmetics are comparable to those of other high-quality global brands, that is, those that cannot be purchased in pharmacies, but in specialized cosmetics stores or international perfumeries with which the company has a contract. This prevents the company from further expanding into other countries, especially in Central and Eastern Europe, due to limited sales methods. Problem definition MAC has slowed down its deployment in Europe in recent years and does not intend to change its sales strategy or new retail contracts. Since there is no online sales via the Internet outside the United States, Central and Eastern Europeans do not have the ability to purchase MAC cosmetics except by traveling abroad. Additionally, weak promotion causes a decline in awareness and reduced sales in the last fiscal year. The company uses celebrities (actresses, singers) as representatives or models for MAX cosmetics. However, there is a lack of advertising and promotional campaigns that attract ordinary women to try the brand's cosmetics. Justification for the causes of the problemThe company's recent slow expansion is mainly caused by limited sales methods and concerns about loss of control when entering new markets. The company does not think of other practices other than retail contract sales and rejects offers from abroad to import MAC products. “The demand for MAC Cosmetics is there, but the supply is not. Although MAC is one of the most requested cosmetic lines, finding discounted products is actually not that easy” (Vasen, 2007, p. 1). Furthermore, there is no media advertising outside the United States and people often don't even know about the products and their benefits. Statistics show that the main way to obtain information about MAC products is through referrals (Bates, 2006, p..