Ch. 2 - Strategic Planning for Competitive Advantage

MAC has risen tremendously since it's founding in 1985. It has managed to rise as a global giant in the $160 Billion beauty industry, even with it's marketing strategy being mainly based on word-of-mouth. The international company has become compatible with glamour and stardom, from sponsoring international fashion weeks to hosting celebrity parties. Every aspect of what makes MAC Cosmetics is unique and goes against most common marketing methods. To our knowledge, product, price, promotion, and place are the four fundamental variables that either make or break a company. Currently, there are over one hundred MAC locations between the United States, Canada, and Europe; having the utmost success in London, England. There are over fifty locations across the United Kingdom, eight being MAC's flagship stores. MAC's future plans are to open locations in the Far East, China, and more in Europe. Now in a joint venture with the United States's largest privately owned cosmetics firm, Estee Lauder, MAC now distributes products in overseas markets. More typical market brands spend millions on advertising, while MAC does it all by inspiring it's stakeholders in non-intrusive and ingenious ways without spending fortunes on advertising.

MAC has undertaken many strategies, causing great success for the company. There was never a specific group that was aimed for. Frank Toskan planned to create every shade possible in order to offer a wide variety of shades for each individual. Over the last fifteen years, over 200 shades of lipstick in seven different finishes, 190 eye shadows, 100 blushes, and hair care have been created for the public. MAC's sales have grown rapidly over the years, and are continuing to do so, exceeding it's annual sales goals. In 2010, MAC surpassed it's sales plan by 121 million dollars. This year the MAC Viva Glam sales and donations to the MAC AIDS Fund surpassed two hundred, fifty million dollars. When MAC began the campaign in 1994, they could have never envisioned the scale of success it would achieve or how much one lipstick would change the world, the brand, and the company. Everyday, this company comes one step closer to it's ultimate goal of providing the utmost value for its customerS.