MAC or Make-up Art Cosmetics is a professional makeup brand that prides itself on its diverse market. It was officially launched in Toronto, Canada in March 1984 by creators Frank Toskan and Frank Angelo. Since its acquisition by the Estée Lauder Companies in 1998, it is now sold in over 105 countries including the United Arab Emirates. Being part of the “innovative, and fast paced” cosmetic industry (Kumar et al, 2006) makes MAC’s prospective growth in the UAE challenging. Furthermore, the increasingly competitive nature of the beauty sector in the region heightens the significance of how a company’s marketing strategy adapts to or even shapes certain external forces. This essay explores where MAC lies in the context of the macro-environmental elements of the UAE using the PESTEL (Political, Economic, Social, Technological, Environmental, Legal) analysis, starting with the political arena (MAC Cosmetics, n.d.; Szalai, 2015).
The political stability of the United Arab Emirates, provided by its absolute monarchic yet presidential structure, has made for a favorable business climate (U.S. Department of State, 2015; Economist Intelligence Unit, 2016). Notwithstanding, the looming end of the ongoing United States presidential race is a matter of significance as its effect on the trade between the UAE and the U.S., where Estée Lauder is
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(Steyn, 2012; Steyn, 2013; Tithecott, 2014). Further, being an Islamic country means that the UAE abides by the Sharia law. Accordingly, “all cosmetics sold in the UAE are halal by default” (Emirates Authority for Standardization and Metrology, 2016). Although UAE residents’ concern for halal cosmetics are low, MAC, nevertheless, can obtain the halal mark and certification from ESMA and differentiate themselves from their competitors (Rajagopal et al,
We all know that cosmetics existed thousands of years ago. Cleopatra used a heavy arsenal of beauty aids to help her shake the foundations of the Roman Empire. Yes, cosmetics and perfumes have a long history, but the consumer industry we live in is relatively recent, a creation of the decades 1890 through 1920. The products hawked in the 19th Century by druggists, perfumers, barbers, physicians, and a colorful assortment of other enterprising individuals were primitive by our standards. Certainly, active ingredients were used with abandon, notably arsenic, lead, and mercury. These were products that really made visible differences, and the consumer was well-advised to be wary of the majority of these mysterious concoctions.
Mazal Group was founded in 2007, in Chatsworth, California. They have six main brands and two brands being developed. With their emphasis on cosmetics, they have shown excessive growth in the last few years, opening an average of eight new stores and ten kiosks each year. They have eighty-four employees in their headquarters, up from the initial eight that started in 2007. In 2013, the cosmetics industry in the United States earned revenues of $56.63 billion, with facial skin care representing 27% of the industry (Exhibit 1). CEO, Adi Oded, says, “The cosmetics industry, especially in skincare, is booming. We have all these baby boomers getting older and looking for anti-aging solutions and we are giving them those solutions” (personal communication, June 27, 2014). The cosmetic industry is constantly developing and this in-depth analysis will provide the explanation of why Mazal Group has had so much success in recent years.
Briney, C. (2005). Air care's fresh start. Global Cosmetic Industry, 173(3), 48-50. Retrieved from http://search.proquest.com/docview/196442096?accountid=38569
Cover Girl Cosmetics Why is Cover Girl one of the most successful cosmetic organizations since the 1960’s? Cover Girl Cosmetics has been the top-seller since 1961 and is still going strong. It is hard, with all the advanced lines of make-up for one product to go as far as Cover Girl has, so how does Cover Girl Cosmetics do it? A lot of Cover Girl’s strong, ongoing successes are due to changing the look of the product, exceptional promotions which the public can’t look over, giving a cosmetic appeal to both older and younger aged women and most importantly by using near perfect women and teens to model their products. Although it’s wonderful that Cover Girl has been and still is so successful, it has put a dent in today’s society in what women’s appearance should and shouldn’t be.
United Kingdom. Committee of Advertising Practice. Committee of Advertising Practice. Accessed November 18, 2013. http://www.cap.org.uk/Advice-Training-on-the-rules/Advice-Online-Database/Cosmetics-The-use-of-production-techniques.aspx.
As you read further you will see why MAC is such a unique entity in this well established industry. Every aspect of what makes MAC Cosmetics; "MAC" being its products, its location, its brand image, or its phenomenal price point is unique and goes against most typical marketing methods. As we all know product, price, promotion and place are the four fundamental variables that either make or break a company. MAC is currently the only Estee Lauder brand that is not only meeting; but exceeding its annual sales goals. Last year MAC surpassed its sales plan by 121 million dollars! Which is unheard of in this industry.
MAC (Makeup Art Cosmetics) is originally a Canadian company that has been operating for more than 20 years and it has already penetrate to many countries all around the world, in the North and South America at most. It sells brand cosmetics of high quality that is intended for professional as well as everyday usage. The brand is sought-after also by many celebrities, fashion models, and photographers because of its delicate texture, huge choice of colors, and durability. The products are usually very well tolerated on every skin type and MAC make-up items are also suitable for women with sensitive eyes (MAC, 2007, p. 1). The prices of the MAC cosmetics are comparable with other high quality world brands, i.e. those which cannot be bought in drugstores, but in the specialized cosmetic stores or international perfumeries that the company has a contract with. That hinders the company from further expansion into other countries, mainly in Central and Eastern Europe, because of the limited ways of sale.
The effects on the cosmetic industry brought on by the rise, development, and consolidation of consumerism has changed our daily culture and has created a more diverse economic culture within the cosmetics economic segment of the industry sector.
According to the textbook case study, the main reason is due to the market in the United States for cosmetics are very mature, not to mention extremely competitive. Because of this, Avon made the decision to put its emphasis – and resources – in less-competitive markets. (Daniels, 2010)
In 1984, new CEO Owen-Jones began pushing for L’Oreal to become the largest cosmetics firm in the United States. In order to accomplish this, the company began assessing acquisition opportunities that would broaden L’Oreal brands throughout the U.S. The first tw...
Perfume sales in Saudi Arabia , the Gulf’s largest economy and the UAE reached 827.5million dollar and 205.8million in 2010.
Make up has been around for about 12 thousand years. Woman use makeup to make them look more beautiful, woman now and back that weren’t happy with their natural beauty so they chose to event or come up with something that would make them beautiful. Woman got the idea that they would use some things form nature that they found and smashed it or do something to but on their face. At first it was a poisons thing to use but now a days makeup have reached a point that it’s not dangers to put on now. In this paper making to talk about the different make up their development of each. Some of the makeup history that I’m going to talk about are lipstick, mascara, eye liner, Eye shadow, body painting and a little about nail polish. I’m also going to talk about who wear makeup. I am going to explain why they wear makeup and what it meant to wear makeup.
Young, D. (2012). Green Marketing & Marketing Ethics, Room 009, Block 17, Middlesex University Dubai. (25th March, 2012)
The US and Western European markets are reaching saturation- therefore cosmetic companies see the future markets for their products in Central and Eastern Europe, Chi...
This report analyzes the cosmetics retail industry in Hong Kong. There are many large-scale specialty cosmetics chains that are well developed in this market, such as Sasa, Bonjour, Colourmix, Aster and Angel, which are taking the lead. They mainly offer a wide range of international branded products and private label products to cater for customers’ special beauty needs, like make-up, fragrance, skincare items. With many dominant firms and a slowing growth in demand, the industry structure is being identified as mature.