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International Marketing Final Report- Maybelline New York
Professor:Professor:Shuling LiaoShuling Liao
Students:Students: 932930 Anthony932930 Anthony 967301 Claire967301 Claire 967305 Crystal967305 Crystal 967311 Joyce967311 Joyce
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IntroductionBackground reviewBrand performanceMarket analysis and competitor analysis Industry trend and global opportunity
huntingInternational/Global Marketing
strategies recommendation Reference source
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L’Oréal Overview€15.8 billion sales in 200627 global brands until 200660,851 employees in 58 countries40 factories around the world
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L’Oréal’s acquisitions since 1996
L’Oréal Overview
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L’Oréal OverviewNew brand acquired by L’Oréal
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L’Oréal Overview
ConsumerProducts
High technology products Mass-market retailing channels
GarnierL’Oréal ParisLe Club des CréateursMaybelline NYSoftsheen.Carson
Professional Products
A wide range of innovative products
Hair salons
L’Oréal ProfessionnelKérastaseRedkenMatrixMizani
• Five Dimensions:
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L’Oréal Overview
LuxuryProducts
Prestigious brands offer premium service
Department stores, specialty stores and travel retail outlets
LancêmeHelena RubinsteinShu UemuraGiorgio ArmaniRalph LaurenYue-Sai
ActiveCosmetics
Dermo-cosmetic products sold by pharmacists and dermatologists
Pharmacies and specialist retailers
VichyLa Roche-PosayInnéovSkinCeuticalsSanoflore
BiothermKiehl’sCacharelViktor & RolfDiesel
• Five Dimensions:
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L’Oréal Overview
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L’Oréal Overview
L’Oréal’s EPS compares with competitors
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L’Oréal Overview
The growth of L’Oréal’s EPS
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Maybelline Overview
1967Plough Inc. acquires Maybelline
1971Great Lash was born, with its candy pink and acid green tube
1915Maybelline Company was created as a family-owned business
1913T.L. Williams invented Maybelline Mascara (Vaseline jelly + coal dust )
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1990Maybelline acquired by the investor group Wasserstein Perella & Co
Maybelline Overview
1996L’Oréal USA, Inc. acquires Maybelline2000
Maybelline becomes the number one cosmetic brand in the USA 2002
Maybelline becomes the number one cosmetic brand in the world
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Maybelline Overview
2004Maybelline officially becomes Maybelline New York
Today• Maybelline New York is
the number one cosmetic brand globally across 90 countries
• Products can be found in major mass-market retailer including drugstores, discount stores, supermarkets and cosmetics specialty stores
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Brand performance under L’Oréal
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Brand performance under L’Oréal
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Brand performance under L’Oréal
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Brand performance under L’OréalProfessional Products
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Brand performance under L’OréalLuxury Products
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Brand performance under L’OréalActive Products
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Brand performance under L’OréalConsumer Products
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Product performance under Maybelline
Milestone Great Lash Mascara The #1 selling mascara in
the U.S. Great Lash has always stood
out for its radically different packaging
This unique color palette is now instantly recognizable and has come to symbolize a true cultural icon
In fact, one of the now famous pink and green tubes is sold every 1.9 seconds in the U.S.
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Product performance under Maybelline
Milestone XXL mascara Make eye lashes 40 percent
longer and thicker The mascara is formulated
from microfiber, vitamin B5 and extract of cornflower
The product can be used for up to eight hours, does not smudge or flake
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Product performance under Maybelline
Milestone
Latest Water shine lipstick Full of moisture Glazed Red Apple and Rose.
Scarlet and coral Natural range of colors to
complement their beauty
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Product performance under Maybelline
Milestone
Dream Mousse foundation Foundation with a powder
finish Good coverage with skin-
brightening effects It create a variety of
aesthetic illusions
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15.9 millionLips makeup
13 millionFace makeup
50.2 millionEye makeup
Product performance under Maybelline
Product Category Sales Volume
Face makeup 13.0 millionLips makeup 15.9 millionEye makeup 50.2 million
Source: 2007 Factiva, Inc.
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S.T.P Analysis of MaybellineSegmentation
Youngster: 16-25Office Lady: 26-35Career Women: 35 above
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S.T.P Analysis of MaybellineTarget Market :
Maybelline’s core target audience of 16- to 25-year-old women
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S.T.P Analysis of MaybellinePositioning
(Mass Market)
High Price
Inexpensive Price
Mature
Young
stila •• Maybelline
Revlon •L’Oréal Paris •
• Covergirl
• ALMAY
• Avon
• Integrate
• Majolica Majoroka
• Avon
• Avon
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Marketing Mix of Maybelline
Eye Makeup Lips Makeup
Four Product Categories:
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Marketing Mix of Maybelline
Face Makeup Nail Makeup
Four Product Categories:
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Marketing Mix of Maybelline
Product – Foreign Consumer Culture Positioning
(FCCP) Symbolic New York City imagery that
women everywhere can relate to
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Nail Makeup
Lips Makeup
Eye Makeup Face Makeup
$3.99~9.99 PRICE
Marketing Mix of Maybelline
$3.99~14.99
$6.99~24.50
$3.99~8.50
Source: Amazon. COM & eBay. COM
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Marketing Mix of Maybelline
Distribution: Build up outlet near or at college
campus mass market Retailing channels
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Marketing Mix of Maybelline
Promotion1: Special promotional events
Coupons Sweepstakes
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Marketing Mix of Maybelline
Promotion2: Online advertising
Glamourmagazine.com Getlippy.com Msn.co.uk MySpace profile
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Marketing Mix of Maybelline
Promotion3: Co – Marketing :
Apple MTV
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Marketing Mix of Maybelline
Promotion4: Co – Marketing :
Sponsor for Fashion show Wedding Essentials Magazine
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Marketing Mix of Maybelline
Promotion4: Advertising
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Marketing Mix of Maybelline
Promotion4: Advertising
Fashion Icon as Spokespersons
Olympic gold medalists
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Marketing Mix of Maybelline
Promotion5: Slogan & Jingle
Eyes that glow with enchantment Lipstick: The sidewalk is your
catwalk Maybe she’s born with it. Maybe
it’s Maybelline
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Marketing Mix of Maybelline
Promotion6: Free makeup consulting
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Marketing Mix of Maybelline
Promotion7: Upgrading the brand image
Redesign of product Packaging:
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Marketing Mix of Maybelline
Promotion7: Upgrading the brand image
social service Provide scholarship
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Marketing Mix of Maybelline
Promotion7: Holding contest and providing
scholarship
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Marketing Mix of Maybelline
Source: 2006 Annual Report L’Oréal
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Enhancing the capacity of Maybelline--- Problem shooting
Enhancement of the product mix - New product formulations to keep up with technological advances
and changing consumer preferences.
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Enhancing the marketing Mix of Maybelline--- Problem shooting
The use of innovation at the heart of value creation
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Enhancing the marketing Mix of Maybelline--- Problem shooting
Constantly improving industrial productivity
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Enhancing the marketing Mix of Maybelline--- Problem shooting
The reorganization of the supply chain
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Enhancing the marketing Mix of Maybelline--- Problem shooting
reduction of administrative and commercial costs
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Market analysisStrong growth in the cosmetics market
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Market analysisGlobal cosmetic share
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Market analysisDefinition of cosmetics industry
The U.S. FDA defines cosmetics as: "intended to be applied to the human body for
cleansing, beautifying, promoting attractiveness, or altering the appearance without affecting the body's structure or functions.“
The FDA specifically excludes soap from this particular category.
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Market analysis
PROCTER & GAMBLEPanteneOlayHead & ShouldersClairolHerbal EssencesNice’n EasyNatural InstinctsCover GirlSK-IIRejoice
Max FactorOld Spice Secret LacosteVidal SassoonAussieInfusium 23Noxzema Laura Biagotti Koleston Wellaflex Shockwaves Hugo Boss
GucciRochasEscadaPumaAnna SuiGhostYardleyBognerToscaMax MaraMexx
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Market analysis
L’oréal GroupConsumerL’Oreal ParisGarnier
Maybelline NYSoftSheen.C
MininurseYue-SaiLa Scad
ProfessionalL’Oreal Prof. Redken
Kérastase Inné
Matrix Mizani
Luxury Lancôme Biotherm Kiehl’s Laroche
Shu Uemura OicassoPaloma Parfums Guy
Giorgio Armani Ralph Lauren Fragrances
Active Vichy
Laroche-Posay La Roche-Posay
GaldermaInnéov
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Market analysis
Unilever PLCAxe/Lynx Impulse Rexona/Sure Degree Dove SunsilkOrganics
Lux Ponds Vaseline Suave Timotei FinesseSalon Selectives
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Market analysis
Colgate PalmolivePalmolive Skin BracerProtex
Mennen Speed StickCapriceLady Speed Stick Afta
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Market analysis
Estee LauderAmerican Beauty AramisCliniqueDarphinThe Fragrance Donna Faran FlirtGood Skin MACOrigins Prescriptives Rodan + Fields Tommy Hilfiger
Aveda Bobbi Brown Bumble & bumble Donald Trump Estée Lauder Grassroots Jo Malone Kate Spade La Mer Michael Kors Stila
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Market analysis
AvonAvon Color Avon Solutions AdvancedAvon NaturalsMark Avon Wellness
Anew Skin-So-Soft Techniques Hair Care
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Market analysis
Beiersdorf AGNivea, 8×4, Atrix, LabelloMarlies Möller Eucerin
Hidrofugal La Prairie SBT Juvena Florena
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Market analysis
ShiseidoShisedo, Clé de Peau Beauté Carita Beauté Prestige International Parfums Issey Miyake Parfums Jean Paul Gaultier Oarfums Narciso Rodriguez Soka Mooka FT Shiseido Zotos
Serge Lutens Auprés D’ici là Ipsa Ayura Ettusais DecléorNarsZirh Fitit Kesyo-akusei Yuxia ZaSea Breeze
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Market analysis
Johnson & JohnsonNeutrogenapH5.5Retin-A Renova Ambi
Aveeno RoC Clean & Clear Biapharm SAS
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Market analysis
HenkelSchwarzkopf & HenkelSchwarzkopfBrillanceGliss Kur Taft SchaumaPalette Diadermine Fa
Schwarzkopf Professional Igora Sihouette bc Bonacure Seah Hairspa Osis Indola
Schwarzkopf & Henkel Inc.Dep L.A. Looks Citré Shine got2bSmooth ‘N Shine
Henkel Lion Corp.Paon Fresh Kight
MorrisSergio Tacchini La Perla
Genny Krizia Fiorucci Parfums Ferrari
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Competitors analysisMass-market product in America
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Competitors analysisMascara total dollar sales in America
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Competitors analysisMascara total unit sales in America
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Industry TrendNew target segment
SeniorsMen
Natural cosmeticsThe rapidly-growing areaGovernment regulation
Global expansionEmerging countries
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Industry TrendSeniors’ segment
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Industry TrendMen’s segment
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Industry TrendNatural cosmetics
Stricter legislation in E.U., U.S. and Canada. Phase out the use of chemicals linked to cancer,
birth defects and other health problemReplace them with safer alternatives
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Global Expansion
Industry Trend
Source: L’Oréal
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Industry TrendEmerging countries
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Opportunity Hunting
Trend Pros ConsSeniors’segment
Increase total sales Increase marketing and R&D expanse
Men’s segment
Increase total sales It’s not popular nowInconsistent brand imageIncrease marketing and
R&D expanseNatural
cosmeticsFollow government
regulationIncrease reputation
Increase marketing and R&D expanse
Global expansion
Increase total salesGrowing market
Unfamiliar with local countries
Increase marketing and R&D expanse
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Opportunity Hunting
Seniors’ segment Focus on over 35 years old
0 16 25 35
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Opportunity HuntingCompetitor analysis: 5Ps
Revlon MaybellineProduct Age Defying ® Instant Age Rewind® Price $17.98~$27.98 $17.40~$19.99Promotion Halle Berry Christy TurlingtonPlace Mass market Mass marketPositioning Over 35 years old Over 35 years old
Source: Amazon. COM & eBay. COM
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Opportunity Hunting
Natural cosmetics Maybelline is natural Multi- functional make-up
Global expansionEmerging countries in Asia and Latin
America
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Global marketing strategy - recommendation
Product
Natural ProductRelating packaging to
paper or organic ingredient
By using non-chemical constituent could get through the cosmetics legist ration.
Price
Slightly higher than mass
Natural cosmetics - Maybelline is natural
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Global marketing strategy - recommendation
Promotion
Upgrading brand image by against animal testing
Emphasizing on environmental protection
Celebrity influence
Distribution
First test marketed in Mature Market. North America and Europe
Mass Market: drugstore, retailing merchants, and grocery store
Natural cosmetics - Maybelline is natural
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Global marketing strategy - recommendation
Product
Centering on sophisticated looking package
Multi- functional make-up Ultra-coverage pigment
moisturizing (Hyaluronic Acid )
Anti – aging (Pro-Xylane Collagen
Price
Higher price
New target segment-seniors
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Global marketing strategy - recommendation
Promotion
Giving you younger-looking skin instantly
Using Senior models or celebrity as spokesperson
Distribution
First test marketed in Mature Market, such as North America and Europe
Mass Market: drugstore, retailing merchants, and grocery store
New target segment-seniors
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Global marketing strategy - recommendation
New target segment-seniorsNew products in 2007
Instant Age Rewind® Double Face Perfector
Christy Turlington
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Global marketing strategy - recommendation
Global expansionFocus on emerging countries and set up
subsidiariesChina→ L’Oréal China Co. LtdIndia → L’Oréal India Private LtdRussiaBrazilMexico → L’Oréal Mexico S.A. de C.V
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Global marketing strategy - recommendation
Global expansionProduct
Focus on whitening and anti-UV product
Have more shades to meet consumers’ need
PromotionTake a famous person in host
countries as spokesperson
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Reference Source Books1. 何琦瑜(民 94)。就是要美麗:全球第一大化妝品集團 L'Oréal 打造魅力品牌的故事( 1 版)。臺北市:天下雜誌。 Newspaper1. Eye makeup emerges as the star performer. (2006, September 11). Chain
Drug Review, P.1 Research Report1. Merrill Lynch, Pierce, Fenner & Smith Incorporated (2007). L’oréal (Rep. No.
10648500). United Kingdom. Unpublished.2. ODDO Securities Corp. (2007). L’oréal. Paris, France. Unpublished.3. Christine Bittar. (2004, June 21). Amid changing demos, a burst of skin
tones, colors. Superbrands, s344. Tim Little, Sanford Lewis, Pamela Lundguist (2006). Beneath the skin –
Hidden liabilities, market risk and drivers of change in the cosmetics and personal care products industry. Virginia, U.S.: the Investor Environmental Health Network.
5. Bear Stearns & Co. Inc. (2007). L’oréal. London, United Kingdom. Unpublished.
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Reference Source Internet1. Heather Michelle. (Jul 30, 2006). Associated content. Top mascara under
10 Retrieved December 21, 2007 from the World Wide Web: http://www.associatedcontent.com/article/46830/top_mascara_under_10.html
2. Susan Antonelli. (Oct 18, 2007). Associated Content, Inc. Mascara Review: Millions to Chose From, Are They so Different?. Retrieved December 21, 2007, from the World Wide Web: http://www.associatedcontent.com/article/411784/mascara_review_millions_to_chose_from.html?page=2
3. Christine Bittar. (Jan 3, 2000). CNET Networks, Inc. En La Familia - Procter & Gamble's Cover Girl cosmetics brand targets Hispanic market - Brief Article. Retrieved December 21, 2007, from the World Wide Web: http://findarticles.com/p/articles/mi_m0BDW/is_1_41/ai_58586525
4. L'Oréal USA, Inc. (2007). Maybelline New York. Our History. Retrieved December 21, 2007, from the World Wide Web: http://www.maybelline.com/aboutus/our-history.aspx
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Reference Source5. The History of Maybelline. (2002, July19). Nzgirl Online. Retrieved
December 21, 2007, from the World Wide Web: http://www.nzgirl.co.nz/articles/1193
6. Maybelline New York. (2007). MAYBELLINE - HISTORY. Retrieved December 21, 2007, from the World Wide Web: http://www.maybelline.co.uk/about_us/l282l283.htm
7. L'Oréal USA, Inc. (2007). L’Oréal: cosmetics, beauty, perfumes. Our Brands. Retrieved December 21, 2007, from the World Wide Web: http://www.loreal.com/_en/_ww/index.aspx
8. Wikimedia Foundation, Inc. (2007). Cosmetics. Retrieved December 21, 2007, from the World Wide Web: http://en.wikipedia.org/wiki/Cosmetics
9. Amazon.com, Inc. (2008). Health & Personal Care. Retrieved January 15, 2008, from the World Wide Web: http://www.amazon.com/
10. eBay Inc. (2008). Health & Personal Care. Retrieved January 15, 2008, from the World Wide Web: http://www.ebay.com/
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Q & AQ & A