Mac Cosmetics Essay

1370 words - 5 pages

MAC CosmeticsMake-up Art Cosmetics, also known as M.A.C. cosmetics is a highly unique corporation. Its founders and business strategies are rather simple yet extremely effective in contributing to the companies success. The company does not 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 multimillion dollar (and still growing) enterprise, M.A.C. probably has some of the most popular and most demanded for cosmetics available in the market.M.A.C. Cosmetics is a dynamic company which produces skin and hair care, beauty products, 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. are growing 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 $18 million in1991. Last years sales (1996) were $70 million and now this years' estimations are a substantial $160 million. There are currently 108 locations between Canada, the U.S., and Europe, with extreme success in London, England. Although the company could easily expand to may more locations, the company would prefer not to, at least no so fast. They believe that in order to maintain 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, was previously a Canadian hairstylist, make-up artist and photographer, who developed his own professional cosmetics because he felt that the existing lines couldn't link with the harsh lighting used in photography, stage , film and video work. Over the last 10 years, 160 shades of lipsticks in 7 different finishes, 150 eye shadows, 60 blushes and hair care have been created for the public. Toskan first started at his kitchen table with the help of his high school chemistry book. With Victor Casale, his chemist brother-in-law, he blended a few new colours. One year later, Toskan formed a partnership with Frank Angelo, a veteran entrepreneur (previous owner of a chain of beauty salons). At first they were turned down by banks, they had to mortgage everything in order to get the company going. M.A.C. was officially launched in 1985, 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 downtown Simpsons -now the Hudson's Bay Company, to take their line of products. They were given a small corner and it soon became the most popular counter in the department store. Currently there are 23 M.A.C. Counters in Bay stores across Canada. Eaton's originally turned them away and now the partners won't deal with them.The company hires people based on creative talent, not looks; a novel 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...

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