Make-Up Art CosmeticsMake-up Art Cosmetics, also known as M. A.
C. cosmetics is a highly uniquecorporation. Its founders and business strategies are rather simple yetextremely effective in contributing to the companies success. The company doesnot use any fancy business schemes and it is truly concerned with its consumers. In the beginning, the company struggled to get started, but now a multimilliondollar (and still growing) enterprise, M.
A. C. probably has some of the mostpopular and most demanded for cosmetics available in the market. M. A.
C. Cosmetics is a dynamic company which produces skin and hair care, beautyproducts, and cosmetics, created for everyone. Rich and poor, old or young,conservative or trendy and even for males or females. Sales for M. A.
C. aregrowing rapidly. From 1985 ($600 000) to 1989 ($3 million), sales were steady. Then in 1990 the money really started to pour in, hitting $8. 5 million then $18million in1991. Last years sales (1996) were $70 million and now this years’estimations are a substantial $160 million.
There are currently 108 locationsbetween Canada, the U. S. , and Europe, with extreme success in London, England. Although the company could easily expand to may more locations, the companywould prefer not to, at least no so fast.
They believe that in order tomaintain high levels of quality, staying in control, (which means going slowly)is the key. Frank Toskan, 45, founder and CEO of Make-up Art Cosmetics, waspreviously a Canadian hairstylist, make-up artist and photographer, whodeveloped his own professional cosmetics because he felt that the existing linescouldn’t link with the harsh lighting used in photography, stage , film andvideo work. Over the last 10 years, 160 shades of lipsticks in 7 differentfinishes, 150 eye shadows, 60 blushes and hair care have been created for thepublic. Toskan first started at his kitchen table with the help of his highschool chemistry book. With Victor Casale, his chemist brother-in-law, heblended a few new colours. One year later, Toskan formed a partnership withFrank Angelo, a veteran entrepreneur (previous owner of a chain of beautysalons).
At first they were turned down by banks, they had to mortgageeverything in order to get the company going. M. A. C. was officially launched in1985, in an old, run-down location in Toronto (Cabbagetown).
For years M. A. C. was looked upon as too ‘weird. ‘ In1988, Toskan and Angelo had to beg downtownSimpsons -now the Hudson’s Bay Company, to take their line of products. Theywere given a small corner and it soon became the most popular counter in thedepartment store.
Currently there are 23 M. A. C. Counters in Bay stores acrossCanada. Eaton’s originally turned them away and now the partners won’t dealwith them.
The company hires people based on creative talent, not looks; anovel tactic for this industry. Toskan is quoted saying: “I don’t have the luxury of communicating with my clients, so therefore my salespeople are the link between my philosophy and their customers. “M. A. C.
reps behave more like friends or confidants than product pushers. Without having company sales pressure, the laid-back management resulted in aretail staff turnover of less than 7% last year. M. A. C.
Cosmetics has a great position on corporate and socialresponsibility. The public image of this business is supported, due to manydifferent surroundings. M. A. C. is “cruelty-free” and does not test its productson animals.
They use simple black and white (recyclable) packaging and theyencourage Recycling with the “Back-to-Mac” programme. Customers are given afree lipstick of their choice with the return of six empty containers. Thecompany offers good prices compared to other ‘big name’ companies without anyfalse promises such as miracle (age reducing) creams. While some companies maybe nervous about linking their names to the specter of illness and death, M.
A. C. is upfront in promoting its support of the fight against AIDS, with its popularlipstick -‘Viva Glam,’ 1992 (which also come with a condom) donated to variousAIDS organizations. In Oct. 1995, M.
A. C. launched a charity lipstick for $16:$6 of which, went to the breast cancer research. They also mix custom productsto match the needs of cancer and burn victims on the allergenically challenged.
Just recently M. A. C. introduced the “Kid’s helping Kids” which, with the sale ofgreeting cards (painted by the kids) will be donated to pediatric organizations.
M. A. C. Cosmetics has undertaken many strategies which resulted in thesuccessfulness of the company.
Toskan and Angelo had their business strategyfigured out. At first they’d sell their make-up to professional stylists andartists and go on from there. Since make-up artists apply cosmetics toactresses and to models, this genius idea set a trend as it was featured inpopular shows and/or movies and loved and utilized by favorite actresses. M. A. C.
Cosmetics has never tried to target a certain group. Toskan planned to createevery shade possible in order to offer a wide variety of shades for eachindividual. Without a single ad campaign, M. A.
C. does not advertise becausethey do not believe that slogans are as explicit or as effective. They do notwant to have to tell someone to buy their products. They also don’t want to puta idealized corporate face on their product. They don’t wan to make a womenfeel like she has to buy this product.
Toskan brings a fresh new commitmentto the business of beauty. “This industry has a history of digging into peoples pocketsand taking advantage. I am interested in giving back to theconsumer. “M. A.
C. Cosmetics also uses a word of mouth strategy (which apparently works). It only takes a few women to tell their friends how much they like a certainpowder or certain lip gloss before they’re all racing to the counters. “You don’t really have to spend on advertising, yet your productson everybody’s lips. “Literally.
Everyday, this company comes one step closer to its ultimate goal ofproviding the utmost value for its customers. M. A. C. works from an invertedpyramid – where the customers are always at the top. It is the customers whoinspire Toskan and the company.
This, along with the staff motivates him, notthe money. “We didn’t get into this business to make bags of money, or to have mass-consumer appeal, we just wanted to find the right colours. “In the future they M. A. C.
plan on opening locations in Hong Kong, the Far East,and more in Europe. Now in a joint venture with the U. S. ‘s largest privatelyowned cosmetics firm (Estee Lauder), M.
A. C. will distribute products in overseasmarkets. With each and every goal M.
A. C. is soon to be destined to hit the top. M. A. C.
Cosmetics’ reasons for all its plans are derived from the factthat it is the 90’s. There are many serious issues and many different needsrequired today. Everyone is an individual, and this company sees that, anddeliberately tries not to exclude anyone. Some trends are also created by themedia exposure. The media has so much to do with what’s in and what’s out.
Butultimately it is up to the consumer who decides. The products of Canada’s Make-up Art Cosmetics, inspires devotion inmany people, particularly the young and the glamorous. This is why a firm thatstarted less than 15 years ago, created a product on a stove in a Torontoapartment had $70 million in sales last year. (1996) It has been the cause ofmore than a few envious looks by established cosmetic companies. The incredableentrepreneur behind this companies’ success, often had a sense for smellingtrends before the rest of the industry catches on. One of the remarkableaspects of the success of M.
A. C. Cosmetics is the way the company has grownwithout the conversational help of big advertising campaigns, spokespersons orother big kinds of promotional gimmicks. This high quality company shows thatadvertising is not always needed. Being true to the customer and serving theirneeds brings success. This company is a leader and never follows what othercompanies do.
Success can be found in many different ways, keeping in mindinnovation and constant creation (of new ideas). M. A. C. is known to be anhonest, caring and different company that strives to make the consumer happyand satisfied, while always remaining concerned with its socialresponsibility.Science
