MAC Cosmetics and Sugar Cosmetics are two leading cosmetics brands. MAC was founded in 1984 in Canada and is known for its diverse product portfolio including makeup, skincare, and tools. Sugar was founded in 2012 in India and focuses on producing cosmetics tailored for Indian skin tones. Both companies utilize omnichannel approaches including online shopping and social media marketing but have different target demographics - MAC targets more global consumers while Sugar targets the Indian market.
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Global marketing and e-commerse of M.A.C and sugar.pdf
1. Amitha M Praveen Kashish Dangaich Mayurvi Sangekar Shubhangi Sharma
GLOBAL MARKETING & E-COMMERCE
VS
JURY ASSIGNMENT
2. M.A.C
Founded : March 1984; 38 years ago
Toronto, Ontario, Canada
Founders : Frank Toskan
Frank Angelo
Headquarters : New York City, New York, U.S.
Products : Cosmetics
Parent : Estée Lauder Companies
One of the leading cosmetic brands worldwide, the acronym MAC stands
for Makeup Artist Cosmetics. The brand has been immensely successful in
meeting consumer expectations in terms of quality and variety.
Tagline : 'All ages. All races. All sexes'
3. SUGAR
Founded : 2012, India
Founders : Vineeta Singh, Kaushik Mukherjee
Headquarters : Mumbai, Maharashtra
Products : Cosmetics
Sugar Cosmetics is one of India's fastest-growing premium
cosmetic companies. The brand is devoted to producing products
that are a great fit for every Indian skin tone throughout seasons
and across the calendar.
Tagline : “Rule The World, One Look At A Time!
4. Mac Cosmetics products include their best sellers like mac minis, lipsticks,
face foundations, primer eye products and skin care. They have online shop
exclusively for lips, eyes, face, skin care, and brushes.
There is is separate column for just the mac minis.
All of their new collects goes to the new column where it is easy for the
customer to surf only the new items, they have recently included
customizable eye palate.
Their very newest addition is the Superstar lipstick, which is in collaboration
with Bhumi Pednekar, most of the collection is made for Indian skin tone.
PRODUCT
CATEGORIES : MAC
5. Sugar products are categorized into makeup, brushes, skincare,
and trending offers.
They have a vide range of makeup products which are
specially suited for Indian skin tone, Brushes for both face and
eyes.
Skincare ranges from moisturizer sunscreen to face masks ,etc.
They have skincare with the base note with coffee, citrus and
aqua.
Their most trending product is the combo offer which allows
the customer to actually customize the tone and colors of the
product.
PRODUCT
CATEGORIES : SUGAR
6. PRODUCT:
MAC Cosmetics is one of the leading cosmetics and skincare brands in the world.
Its initial packaging used to come in black pots rather than compacts. The
approach was to create utility for chics. Its marketing mix product portfolio has a
wide variety which includes:
a) Base Make-up: Foundation, concealer, powder, face primer, etc.
b) Eyes: Eyelashes, eye mascara, eyeshadow, eye primer, etc.
c) Lips Liquid lip, lip pencil, lip gloss, lipstick, etc.
d) Skin Care and Primer: Moisturisers, cleansers and removers, CC and BB, etc.
e) Brushes and Tools: All types of brushes, brush kits, face brushes, lip brushes,
eye brushes, etc.
f) Fragrances
The products are colorful, bold, and custom. The company differentiates its
products from that of its competitors by developing different blends of pigments
to match the needs of the consumers, packaging its products differently, and by
providing limited edition products.
MARKETING MIX - MAC
7. PRICE:
MAC Cosmetics’ first customers were make-up artists and models.
One of the big breaks was in the late ‘80s when Madonna, on a photoshoot, wore one of its products. As it is perceived as good ostentation that shrieks of conferring high
status to those who are wearing it, they adopted a premium pricing strategy for all its products. Although the price of competitors’ products is a bit lower, customers are
willing to pay a little higher. This instead ensured customer loyalty and the willingness of customers to pay an astronomical huge sum for its products comprises the
goodwill of the company in the market. MAC Cosmetics not only has adopted a premium pricing strategy, but also a product line pricing strategy. In this, the company’s
products are priced in realtion to each other and where each good complements the other rather than competing with each other. This means a change in the price of
one of its products has bearing on the other products.
8. PLACE:
At present, its independent outlets are present in seventy countries having more than
one thousand outlets. In other words, it uses offline mediums to cater to the needs of
people all over the world. An important point worth noting here is that its products
can only be by the dealers authorized by the company which did not hinder the
company’s growth trajectory even then. Needless to say, its products are available
online as well.
9. PROMOTION:
MAC Cosmetics uses several mediums to advertise and market its products.
Word-of-mouth promotion strategy might seem insignificant when it
comes to discussing the strategies of promotion, it however played a
dominant role in the growth of the company’s sales. Since it is believe to
confer high status, the company has endorsed, since its conception, highly
renowned celebrities. It made its first breakthrough when Madonna wore one
of its products on a photoshoot. MAC Cosmetics has since then also
associated itself with Princess Diana, Cher, Naomi Campbell, etc. All this
ensures brand visibility. Its advertisements are reflective of its motto of
serving people of All Ages, All Races, All Sexes. It also promotes its product
online through social websites like Facebook, Instagram, Twitter, etc.
10. PATRICK STARRR X M.A.C
M.A.C.’s
opportunities in
the digital world
Big opportunities for M.A.C. are social media and word-of-mouth, which
are the main forms of communication they use with consumers.
M.A.C. engages with vloggers, such as Patrick Starrr, K-pop stars like
Blackpink's Lisa, the result is guaranteed to be legendary. And bloggers,
who influence and create social media posts and videos to promote the
brand on various networking sites. This has led to greater engagement
with consumers and higher sales.
BLACKPINK LISA X M.A.C
11. Those customers who are engaged in
communication with companies via social
networks are more active, which allows suggesting
that they would remain loyal to the brand and
purchase it in the future.
MAC is continually uploading professional make up
videos and tutorials.
Offers information and promotes its events. These
are usually make-up workshops.
It consistently publishes content and encourages
to participate in conversations.
The fact that MAC Cosmetics is known as the fifth
largest social community of Instagram with 24.5M
followers & Facebook with 20M followers. M.A.C. has
84.81% social media engagement and is the most
blogged about brand in the market.
SOCIAL MEDIA
12. PRODUCT :
1. Product-Persona Fit
SUGAR’s target customer was vocal, opinionated, well-informed and in search of
instant gratification. These young women identified neither with the celebrity-driven
advertising of the mass brands, nor with the often intimidating messaging of the
luxury behemoths. SUGAR has kept this customer persona at the centre of their
strategy and this is probably one of the most fundamental reasons for their success
so far.
SUGAR Cosmetics has continuously launched new products that would cater to
various Indian skin color needs. It provides top-selling face products in 22 different
shades to suit all Indian skin tones and undertones. This is a testimony to how
inclusive SUGAR is and believes the entire industry should be.
MARKETING MIX - SUGAR
13. 2. Bold Product Bets
Despite a shoestring budget, the team sourced their launch products – a kajal and an
eyeliner – from a reputed manufacturer in Germany. The ‘Made in Germany’ label proved
to be a source of reassurance for customers and helped SUGAR get its initial footing.
The market then was dominated by glossy eyeliners, but SUGAR chose to launch a matte
one, convinced that their customers would be happier with a product they could use daily.
The eyeliner, which went on to become a bestseller, was the first of many product bets that
SUGAR would make.
3. Thumb-Stopping Packaging
Aware that the challenger brand needed to look and feel distinctly different from the
prevailing minimal and predominantly black aesthetic, Opposite designed a bold, graphic
route that employs low-poly illustrations.
14. PRICE:
Given that the company’s growth lay in getting mass
customers to upgrade or luxury customers to try something
less expensive, SUGAR's target to establish itself as a
premium brand led to its price range relatively higher than
other Indian brands available in the market.
15. SUGAR Cosmetics, was digital-only till 2017 via their website
and other leading eCommerce partners.
By early 2018, they were also in General Trade and large-
format retailers in malls.
Last to last year they also launched a brand owned mobile
app.
In this market dynamic - they are planning to go stronger
on their omnichannel approach to be able to grow the
brand and its award-winning product range to its fullest
potential.
PLACE:
At present 1000+ retail touchpoints which have been built
over the last 2 years cover more than 100 cities in the
country. These include exclusive brand stores, self-operated
kiosks, general trade stores, and shops-in-shop in channel
partners like Lifestyle, Shoppers Stop, etc.
16. PROMOTION
Branding
Sponsorship, Events
Competition
Public Relations,
SMS, Emails
Social media posts, print
Radio advertising
Collaborations with like-minded brands/ entities
Engaging participation in events.
SUGAR has been investing in various other activities like
Sugar majorly uses digital advertising, social media marketing, and
influencer marketing as its promotion channels.
SUGAR cosmetics has brought Bollywood actress
Tapsee Pannu onboard as the face of its new campaign, #BoldAndFree.
The campaign is in sync with the brand philosophies of empowering
women to be confident and live beyond society approvals.
17. INFLUENCERS - KEY ROLE
Instagram influencers are well-known for their role in beauty brand promotion.
SUGAR hopped on the ‘unwrapping videos’ and ‘before and after’ makeover trend
to raise awareness.
Influencers are reviewing SUGAR products and promoting them sustainably and
organically. SUGAR Cosmetics primarily uses social media to educate women on
makeup instead of flooding the online community with offers or promos.
The Instagram influencer strategy for the brand is well-balanced. One of their most
well-known videos is acid assault survivor Anmol Rodriguez. Sugar's Instagram
profile has 2.1 millions of followers, and their app has over one million downloads,
outnumbering competitors like Colorbar. Aslo they has 2 Mn monthly visits to its
website.
18. ONLINE VISUAL
MERCHANDISING : SUGAR
SUGAR Cosmetics is a cruelty-free makeup brand that is high on style and higher
on performance.
SUGAR cosmetics has its award-winning product range including all the
categories on most leading E-commerce sites like Nykaa, Myntr, Flipkart and
Amazon.
19. Putting the Customer Relationship First
In a world of connected experiences and dynamic spaces, the
relationship with the customer is key.
Like a number of brands, MAC wanted to create a new experience
for their customers that would not only change the way they
interacted with the brand, but that would also change the way they
tried on and purchased makeup for the foreseeable future.
VISUAL MERCHANDISING
- MAC
20. For many years, the cosmetics industry has been one that relies heavily on physical
store experiences and in-store purchases. However, as the world continues to
move into more of an online-first mode with most purchases, MAC saw the need for
a stronger, more modern omnichannel experience and turned to Valtech for help.
At the MAC Innovation Lab in Queens Center, customers will have the opportunity to
customize their own palettes, personalize product packaging, and virtually try on
makeup shades or even entire looks created by MAC makeup artists. Each virtual
look is created based on what’s trending and popular near each respective store.
THE NEXT STEP IN VIRTUAL RETAIL
21. VIRTUAL TRY ON (VTO)
Through the upgraded Virtual Try On feature, customers can use Augmented Reality to
try on a wide range of different MAC products directly from their personal device or at
one of the screens in the store.
Everything from lipstick to eye shadow can be previewed directly in the app.
Customers can then mark their favourites, take selfies and create gifs, and easily share
their new virtual look with friends.
22.
23. ONLINE VISUAL
MERCHANDISING : MAC
NYKAA and MYNTRA have full range of offerings of M.A.C cosmetics
in Indian Rupee.
In addition to it Nykaa has a separate landing page for M.A.C
cosmetics where we can see Best seller products, about MAC,
different collections, offers and other skincare products.
24. BOLD PACKAGING
M∙A∙C embodies creativity and artistry in everything it does, including its packaging, and
their consumers are often waiting eagerly for the next thing they put out.
MAC RELEASES A BOLD LIMITED EDITION DIWALI-INSPIRED COLLECTION
They are known for their special-deco packaging of Holiday and
Summer.
Their packaging encompasses both creative and premium, high-
quality materials that they bring to life through different visuals and
textures.
25. Customers may pay for the products by credit card/debit card/ Cash on Delivery (“COD”) or other payment instruments that are accepted modes of payment on the
Site, as displayed on the Site webpages including order checkout and payment pages.
The maximum order value for COD payments is INR 20,000/- (Rupees Twenty Thousand only).
Customers have UPI, Credit Cards, Debit Cards, Net Banking, Wallets, and cash on delivery as the delivery options. Online payments are instant payment options and
recommended to ensure faster processing of order. Cash On Delivery option is available for limited areas only.
PAYMENT OPTIONS: MAC
PAYMENT OPTIONS: SUGAR
PAYMENT OPTIONS
26. M.A.C Cosmetics Online orders are shipped on business days (Monday - Friday, excluding major holidays).
Orders shipped via Standard Service are processed and shipped in 1 - 2 business days, depending on product availability. Most 2nd day and Overnight orders placed
by 3PM ET will be processed and shipped the same day, depending on product availability. Expedited orders that contain products which are regulated for transport
require extra handling and may be shipped the following business day.
Once their system processes the order, the products are inspected thoroughly to ensure they are in a perfect condition.
Once they pass through the final round of quality check, they are packed and handed over to their trusted delivery partner. The delivery partners then bring the
package to the customer at the earliest possible date. In case they are unable to reach the provided address at a suitable time, they contact the customer to resolve
the issue.
For Cash on Delivery (CoD) orders above Rs 20,000, their Customer Service team gets in touch with the customer to confirm the order before it is placed and prepared
for shipping.
Once the order has been dispatched, the customer receives an email with the details of the tracking number and the courier company that is processing their order.
The status of the package can be tracked 24 hours after the order is dispatched from their warehouse.
SHIPPING
STANDARD SERVICE
HOW DOES THE DELIVERY PROCESS WORK?
TRACKING THE ORDER?
DELIVERY SYSTEMS- MAC
27. Orders shipped to P.O. Boxes are delivered within 6-14 business days. APO/FPO/DPO and U.S. Territories are delivered within 14-21 business days of the order's ship date.
Some locations in Alaska and Hawaii may take up to 14 business days.
AA - Armed Forces Americas
AE - Armed Forces Europe
AP - Armed Forces Pacific
GU - Guam
MP - Northern Mariana Islands
VI - Virgin Islands
FM - Federated States Of Micronesia
MH - Marshall Islands
AS - American Samoa
PR - Puerto Rico
M.A.C Cosmetics Online eGift Cards are delivered via email. The sender’s name and email address are included for the recipient.
OTHER LOCATIONS
They currently ship to the following APO / FPO location & U.S. Territories:
Overnight and 2nd Day Priority shipping methods are not available for U.S. Territories and certain locations in Alaska and Hawaii. Orders shipped to P.O. Boxes and APO /
FPO addresses must be sent via the United States Postal Service.
ELECTRONIC DELIVERY
28. MAC just became the first U.S. beauty brand to launch Postmates Same-Day Delivery Service online.
"We are extremely excited to launch MAC's first same-day delivery service on maccosmetics.com," Estée Lauder Companies' vice president of global omnichannel and
online strategy, Pamela Cholankeril, said in a statement, noting how it complements MAC's existing buy-online, pick-up-in-store option.
"This valuable service delivers on consumers' increasing interest for convenience, choice, and high-touch service across channels and MAC touchpoints."
Simply shop on MAC's website as one usually would, and on reaching the checkout page, you see a box for shipping and one that lets you "get it faster" via free pick-up
or Postmates.
Choose Postmates, and they'll charge you $8 for the order to be rusheded to your door in as little as two hours.
All shoppers within 10 miles of a MAC freestanding store are eligible for Postmates Same-Day Delivery Service — and that covers more than 4,000 cities.
SAME-DAY DELIVERY SERVICE
HERE'S HOW IT WORKS:
29. Confirmed orders are shipped within 24 to 48 working hours. Once shipped, they're delivered to the customers within 2-5 working days.
Estimated delivery time may change due to the customer’s geographical location, shipping destination, product availability and courier partner’s delivery time &
location.
A delivery fee of Rs. 49 is applicable on orders below Rs. 500.
SHIPPING POLICY
NOTE-In case of one or more defective products in the order, the customer can register a single complaint as the return/replacement will be arranged only once.
Customers are advised not to accept tampered or damaged shipments.
DELIVERY SYSTEMS- SUGAR COSMETICS
30. COMPARISON
Significantly greater brand recognition than Sugar
Cosmetics (estimated)
Offers significantly more discounts and promotions
than Sugar Cosmetics
Offers PayPal support
Offers student discount policies
Offers Zip financing support
Offers gift card support
Uses AR
Worse animal-free options than Sugar Cosmetics
PROS
CONS
Significantly better halal ingredients than MAC Cosmetics
Sugar born from a desire to bridge the gap between providing world-
class quality of colour cosmetics and makeup pigments that suit Indian
skin tones is inclusive of all Indian skin tones
Does not accept PayPal support
Does not offer student discount policies
Does not accept Zip financing support
Does not offer gift card support
No virtual try on/ AR
PROS
CONS
M.A.C SUGAR