Strategies Winning And Retaining Customers -Myassignmenthelp.Com

Question: Discuss About The Strategies Winning And Retaining Customers? Answer: Introducation MAC brand was founded by Frank Toskan and Frank Angelo in 1984. It as a cosmetic brand which was founded in Toronto and headquartered in New York City. It is an abbreviation of Make UP Art Cosmetics. The need for makeup aroused when the people thought there should be availability of different colors for the many photo shoots. So, the first inspiration of makeup came from the need of shades of many colors (Benoit, 2014). In 1994, MAC AIDS FUND was founded which aimed at supporting the AIDS victims. For it, they also launched many diva collections like lipstick and nail polish. Later in 1995, Estee lauder acquired the whole company and John Densey became the chairman of the company in 1998. Similarly, the first store of Mac was opened in New York. The company offers huge shades of products to its customers. The company at first used to sell products to only makeup professionals but slowly and gradually it was liked by models and then from models to their relatives and sisters and frien ds and many more. The demand for it kept on increasing day by day and today is had placed itself as a global brand preferred by every female. Today Mac cosmetics is sold in more than 15 countries with 38500 employees across the globe (Farnetani, 2015). Mission The mission statement followed by the brand is All races, all sexes and all ages. It aims to be the worlds leading makeup brand for the consumers and professionals by providing the best quality of products. Consumers should feel good, look good after using the brand and made a concept that pains have gains in the minds of consumers. It aimed at launching the products for males, females, and children. It also introduced Kid's helping Kids where kids used to paint many greeting cards and donate them to pediatric organizations (Basnet, 2015). Vision This brand was founded with a vision to huge gap between makeup artistry and fashion photo-shoots. The beauty professionals who used to depend on heavy makeups, Mac used to provide them wide range of products which used to enhance visual effects during shoots (Neil, 2014). Slogans All Races, all sexes, all ages is one of the most common slogan used by Mac. What makes up Mac? Mac is considered to be one of the most leading make up brand. It aims at focusing on diversity and individuality. Mac is one of the proud community where many artists work together to complete the companys mission statement (Rivera, 2016). Products offered It includes huge range of products for all men, women and children.it offers make which include eye shadow, mascara, liner, foundation, lip gloss, lipstick, powder, primer, lip liner, bronzer, highlighters, and many more. It also provide skincare products like moisturizers and removers. It also offers makeup brushes for eyes, lips and faces and tools like applicators and containers. Moreover, it also include fragrances for men and women in it (Hoang, 2015). Role of Mac brand in cosmetic industry Since, mac is a brand in itself. It makes their product unique and expressive. It catches the eye and make the consumers spend their money on the cosmetic products. Mac really worked hard to build that is not like anything which already exist in the market. It aimed at creating a uniqueness and something different (Brook, 2014). Company: SWOT analysis of Mac. Strength: it is highly reputed brand and which created a responsible image and goodwill. It is available in 200 locations with 2500 employees in 15countries across the globe. Weakness: it has limited number of products if compared to other brands and it has many controversies related to its products and services. Opportunities: It provides all the required information about its product on its website only and it also sell its products through retailer website as well. Threat: there is huge number of brand that provides the cosmetic products. So, it automatically creates huge number of competitors too. The major competitors are LOreal, Revlon, Lakme, and Maybelline (MBA, 2012). Customers: the company serves all ages of consumers with every genders. It offers variety of products to the men, women and children as well. Customers who buy this brand has some different personality traits like it reflects luxury and lush. So high segmented income range are preferred by this brand (Weinstein, 2012). Collaborators: Mac provides a digital platform to its consumers where they are provided plenty of information required before buying a product. It makes the customers buy the products according to their need and budget and get their products delivered at home Moreover, mac also has their stores opened in malls and supermarket where customers can walk in and buy the products as well. It has distributors and retailers across the globe to serve their products worldwide. Competitors: The major competitors of mac are Lakme, Revlon, LOreal and Maybelline which also provides huge variety of cosmetic products and creates a threat in the industry. Context: There are also many legal and political factors involved in the brand. There was legal controversies when the brand was launched and many other factors were creating a challenges to establish the brand in the cosmetic industry. Market research and market intelligence Consumers who use cosmetics are obsessed with the products and brands. They just want to feel good and look good. Customer want product which provides quality feels. Today customers are more focused to quality rather than price. They want the best quality products despite of high prices (Williams, 2010). Which competitors pose a threat? The main competitors of brand are LOreal and Clinique. They produce variety of products same as Mac. They also aim at maintaining the healthy relationship with all tits customers and serve them happily. How the context of business is changing, if at all? Mac focuses on quality products. It differentiate its products from its major competitors. It offers varieties in color and texture and quality products for the final look. It provides 18-30 category of products to target its primary market and maintain a good will in the cosmetic industry. A person with uniqueness, confidence, and fashion lovers usually prefer such brand. Such people do not compromise with the new trends (Tasmia, 2014). What role collaborators play in the process? Mac provides digital platform to its customer where they are free to surf the required products and buy them after getting all the information required. Distributors and retailers are the major collaborators of the brand. They play a major role in the success story of this brand. They ensure that the brand or the product selected by the customers are successfully delivered to them or not and moreover they also makes sure that the customers are happy and satisfied or not with the product they have applied on. Today, the customers of the mac are happiest and most satisfied. Marketing Strategy Segment: when a market is divided according to identical groups is known as market segmentation. Mac also uses market segmentation to reach its objectives and serve their products to all races and all genders and all ages as well. Mac segments its market under four categories i.e. demographic segmentation, geographic segmentation, psychographic segmentation and benefit segmentation. Under demographic segmentation, it targets customers from all the locations based on market size, density and climate. Mac mainly target Africans because they have skin pigmentation problem (Reijntjes, 2012). Likewise, under demographic segmentation, they target customers with high income and family background who can afford high range of products. Mac also target its customers by providing packaging according the life style and personality traits of the people like in India it focus on enhancing facial features and removing pigmentation that comes under psychology segmentation. Some customers prefer mac because of the benefits they gain from using such brand (Pou, 2014). Thus, it focus on segmenting young women. Target: the main target customers of mac are young women who are more obsessed with the good look. Mac also aims at targeting professional makeup artists who are highly involved in beauty industry. They also target models and actors who must look good during shoots. It targets its customers by providing best quality products that lasts up to hours (Lush, 2013) Position: from the very first, mac has positioned itself clearly in the market. It has ranked itself by providing products with lush and extensive ranges of colors as well. Moreover, it is focusing on producing professional quality products. It has also positioned itself by highlighting key benefits along with the products. That makes the customers aware about the products and get the detailed information about the product (Arusha, 2015). Product differentiation strategy: It includes enhancers, drivers and quality aesthetics. Enhancers: It offers products that blends with the customer needs and also provides huge range which can best match with the customers skin. Drivers: It aims at providing huge number of products with high durability and long lasting features that driven the customers more. Quality aesthetics: Mac provides packaging of its products with distinct quality and limited edition with the brand name mentioned on it. Pricing strategy: Value-in-use premium pricing strategy: It aims at ensuing the benefits to the customer is more than the cost incurred by the customer i.e. consumer benefit must be cost (Kim 2016). Company life cycle: It uses skimming pricing strategy where the prices are kept high at first and then lowered later. Mac also offers multi segmented pricing. Comparable prices to competitors: It differentiate its products by providing uniqueness and aims at focusing on customer loyalty. Product line pricing: It also aims at providing complementary products to its customers. Promotional strategy: Words of Mouth: It builds it image by creating a goodwill in the market by making a strong relationship with celebs and makeup artists who speaks good words about the brand. They also helps to provide a positive feedback to others. Motivating action communication: It also aims at back to MAC slogans where it rewards to it stop customers and they are highly motivated by the brand. It also enables to maintain customer relationship management by providing a strong bond between the service provider and consumers. Social media: it promote itself using plenty of social media like FB, twitter and it also promote its brand by participating in many fashion shows along with the models and celebrities (Shen, 2013). Placing strategy: It has spread a wide network across the globe. It has several locations located domestically and well as internationally. It has a huge network of employees and many happy customers all over the world. It is available at malls, super markets and airports. Recommendations Since the brand itself reflects luxury, it offers products with high price which are not affordable for the people with the low income. So, it should also focus on providing the rage with low price which can easily be affordable with the people are love mac makeups but cannot afford it. It offers products line like brushes, foundations, lipstick and fragrances which limit its product line. So, it should also aim at increasing the product line by including soap, shampoo, cream and lotions too. It should focus on its distribution channel because sometime their products are not easily available to its customers. Conclusions From all the above mentioned points and analysis, it can be concluded that the brand MAC itself reflects luxury and confidence. It offers plenty varieties of products to its customers based on all the races, genders and ages. It provides cosmetic ranges for young women, men and children too. Despite of its major competitors in the market, it has maintained its good image in the cosmetic industry. Today. Every individual wishes to look beautiful and gorgeous and taking this on highest priority, mac has successfully placed itself in the market. It aims at providing such quality in the product that automatically fits and blend with the needs of the customers and satisfies them as well. Thus, Mac has proven itself to be one of the best brand in the cosmetic industry. Moreover, mac also supports AIDS patients and they also organize many programs in which children participate and make greeting cards and then donate them to patients and makes them happy. Mac is the only brand which has dive rsified its reach and made the maximum of its customers satisfied and happy. Nevertheless, it also aims at enabling its reach to its customers by providing an online platform i.e. digital platform. All the information required before buying a product is clearly mentioned and is transparent enough to make a purchase decision. It targets Africans more and more because their skin is pigmented and they need more quality products to look beautiful. Mac thus also works for reducing pigmentation, so it helps its customers to satisfy their skin problem by applying mac cosmetics. Today among the majority of the young women prefers mac brand and are happy using it. References Arusha. R, 2015, brand positioning of mac cosmetics, viewed on 24th January, 2018. Available on: https://rabiba-rc.blogspot.in/2015/02/brand-positioning-of-mac-cosmetics.html Basnet. B, 2015, history and mission statement, viewed on 24th January, 2018. Available on: https://bivonmac.blogspot.in/2010/09/week-1-history-and-mission-statement.html Benoit, A., 2014. An advertising world gone completely haywire": MAC VIVA GLAM. Advertising Society Review, 15(1). Brook. Z, 2014, Mac makeup marketing, viewed on 24th January, 2018. Available on: https://www.slideshare.net/zoeparisbrook/mac-makeup-marketingbrand-assessment Farnetani. A, 2015, Are you curious to know the history of MAC Cosmetics one of the most famous cosmetic brand, viewed on 24th January, 2018. Available on: https://www.linkedin.com/pulse/you-curious-know-history-mac-cosmetics-one-most-famous-farnetani Hoang. L, 2015, Mac cosmetics, viewed on 24th January, 2018. Available on: https://prezi.com/pfrp-fs87uun/mac-cosmetics-marketing-mix/ Jahan. N, 2014, Branding Strategies of MAC cosmetics, viewed on 24th January, 2018. Available on: https://nusratjahan-1332.blogspot.in/2014/11/branding-strategies-of-mac-cosmetics.html Kim, S.J., Lee, J.Y. and Lee, K.H., 2016. Global Pricing Strategy of the SPA Brand: Comparison with GDP and Big Mac Index. Fashion Textile Research Journal, 18(3), pp.301-316. Lush. L, 2013, Mac cosmetics, viewed on 24th January, 2018. Available on: https://prezi.com/jmwgn03nwvp3/mac-cosmetics/ MBA, 2012, SWOT analysis, viewed on 24th January, 2018. Available on: https://www.mbaskool.com/brandguide/lifestyle-and-retail/12949-mac-cosmetics.html Nagle, T.T., Hogan, J. and Zale, J., 2016. The Strategy and Tactics of Pricing: New International Edition. Routledge. Neil. M, 2014, Mac cosmetics, viewed on 24th January, 2018. Available on: https://www.slideshare.net/mdmhneil/mac-cosmetics-34098742 Pou. N, 2013, segmenting and targeting plans, viewed on 24th January, 2018. Available on: https://nataliawordsbeyondbeauty.blogspot.in/2013/12/chapter-8.html Reijntjes, D. and Wagijo, R., 2012. Market Potential AnalysisA study of the Cosmetics Industry in the ABC Islands. Rivera. J, 2016, Mac cosmetics, viewed on 24th January, 2018. Available on: https://prezi.com/ynpufz2gjspl/mac-cosmetics/ Shen, B. and Bissell, K., 2013. Social media, social me: A content analysis of beauty companies use of facebook in marketing and branding. Journal of Promotion Management, 19(5), pp.629-651. Tasmia. R, 2014, Competitive advantage of Mac cosmetics, viewed on 24th January, 2018. Available on: https://rjtasmia.blogspot.in/ Weinstein, A., 2012. Superior Customer Value: Strategies for winning and retaining customers. CRC Press. Williams, C.L. and Connell, C., 2010. Looking good and sounding right aesthetic labor and social inequality in the retail industry. Work and Occupations, 37(3), pp.349-377.