Revlon and Maybelline

Marketing ManagementMarketing Management

Summer 2000Summer 2000

Revlon and Maybelline cosmeticsRevlon and Maybelline cosmetics

Copyright ©2003 Prentice Hall, Inc.Copyright ©2003 Prentice Hall, Inc. 10 - 10 - 22

Creating the need for cosmetic productsCreating the need for cosmetic products

Cosmetics are not easy products to sell because it is a product that no one really

needs.

It is important to understand the nature of the cosmetic products and also understand

why women purchase cosmetics.

Cosmetics are not easy products to sell because it is a product that no one really

needs.

It is important to understand the nature of the cosmetic products and also understand

why women purchase cosmetics.


Why would women spend money on cosmetics

Girls and women are encouraged to love their bodies no matter what they look like.

To look attractive and improve their beauty.

To imitate top models and actresses.


Profile of Revlon

Established in 1932Established in 1932

Manufactures, markets and sells extensive array of cosmetics Manufactures, markets and sells extensive array of cosmetics and skin care, fragrances and personal care products.and skin care, fragrances and personal care products.

The company’s products are sold world wild and marketed The company’s products are sold world wild and marketed under such known brand names such as: Revlon, color stay, under such known brand names such as: Revlon, color stay, Revlon-age defining, skin lights and ultima. Revlon-age defining, skin lights and ultima.

Revlon’s principal customers include large mass-volume Revlon’s principal customers include large mass-volume retailers and chain drug stores, as well as certain department retailers and chain drug stores, as well as certain department stores and other specialty stores such as perfumeries.stores and other specialty stores such as perfumeries.

The company sells cosmetics and skin care products to fulfill The company sells cosmetics and skin care products to fulfill specifically consumer need, principally priced in the upper range specifically consumer need, principally priced in the upper range of the mass market.of the mass market.

Established in 1932Established in 1932

Manufactures, markets and sells extensive array of cosmetics Manufactures, markets and sells extensive array of cosmetics and skin care, fragrances and personal care products.and skin care, fragrances and personal care products.

The company’s products are sold world wild and marketed The company’s products are sold world wild and marketed under such known brand names such as: Revlon, color stay, under such known brand names such as: Revlon, color stay, Revlon-age defining, skin lights and ultima. Revlon-age defining, skin lights and ultima.

Revlon’s principal customers include large mass-volume Revlon’s principal customers include large mass-volume retailers and chain drug stores, as well as certain department retailers and chain drug stores, as well as certain department stores and other specialty stores such as perfumeries.stores and other specialty stores such as perfumeries.

The company sells cosmetics and skin care products to fulfill The company sells cosmetics and skin care products to fulfill specifically consumer need, principally priced in the upper range specifically consumer need, principally priced in the upper range of the mass market.of the mass market.


Profile of Maybelline

T.L.Williams founded the Maybelline company in T.L.Williams founded the Maybelline company in 1915 and introduced 1915 and introduced Maybelline Cake Mascara.Maybelline Cake Mascara.

In February,1996, Maybelline was acquired by In February,1996, Maybelline was acquired by L’Oreal USA, Inc., a leader in the mass-market L’Oreal USA, Inc., a leader in the mass-market color cosmetics business.color cosmetics business.

Maybelline creates seasonal color stories with Maybelline creates seasonal color stories with products in the season’s hottest shades.products in the season’s hottest shades.

The Maybelline image is hip, intelligent, stylish The Maybelline image is hip, intelligent, stylish and charming.and charming.

Maybelline has the top research and development Maybelline has the top research and development teams and resources through their parent company teams and resources through their parent company L’Oreal.L’Oreal.


Revlon objective

“In our factory, we make lipstick. In our advertising,

we sell hope.”~ Charles RevsonRevlon Cosmetics


Revlon objective

To become the world’s most dynamic leader in global beauty and skin care.

To achieve consistent, profitable growth by transforming Revlon from a multi-national to a global company.


Maybelline objective

“May be she is born with it,,, May be it is Maybelline


Maybelline objective

To become world’s number one color cosmetics line by increasing emphasis on technology, moving into new product categories and expanding into foreign markets.

To differentiate its product from local and other competitors.


Low prices due to low cost of production.

More product and color variety.

Strong market penetration

The Competitive AdvantagesMaybelline


Competitive AdvantageRevlon

Customized Make-Up.

Proper selection of brand names

007 Film Sponsorship


Advertisement strategyRevlon

Revlon has always used top models, and actresses in order to promote its products i.e. Cindy Crawford, Selma Hayek, and recently sponsored the 007 film” Die another day” and launched a jinx line of it’s products which represents the character of Halle berry in the film.


Advertisement strategyMaybelline

Maybelline have created what is known as Maybelline 5, who are 5 young girls aged between 15 and mid 20 selected each year in order to promote Maybelline products.


Identifying Market Segments

Psychographic Psychographic VariablesVariables

Geographic Geographic VariablesVariables

Demographic Demographic VariablesVariables


Market Segmentation Revlon

Benefit segmentation to target and focus on the largest demographic groups within a market by showing lipsticks in various shades of RED

.

This makes their ads appeal to the largest number of potential customers possible


Market segmentation Maybelline

Maybelline target segment is 15-35 year old female at mass market.

Maybelline is a modern contemporary brand for all women and all races.

Different versions of products are produced foe each country


Price comparison

Price Comparison

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REVLON


Marketing MixThe “Four P’s”

(Distribution)(Distribution)

roductroductroductroduct

ricingricingricingricing

romotionromotionromotionromotion

lacelacelacelace


Revlon marketing mix

Product

The right product for the target market.

Packaging of the product appeals to the customer.


Revlon marketing mixPrice

Revlon’s overall pricing strategy is to market to a wide range of consumer’s with its product at a range of retail prices they can accept.

Their price strategy is consistent with the stage of the product life cycle the product is in.

They offer discounts in the form of coupons as a term of sales for their product. They distribute coupons in weekly ads and in magazines.


The Promotional Mix

Advertising

Personal Selling

Sales Promotions

Public Relations


Revlon marketing mixPromotion

Revlon’s advertising strategy relied heavily upon high-profile celebrities such as Selma Hayek, Shania Twain, and Melanie Griffith.

By late 2000, Revlon chose to take a new direction. The company hired an outside advertising agency (Kirshenbaum Bond & Partners).

Company launches new Jinx line using Halle Berry from the Die Another Day.

Consumers tests the product through free samples


Revlon marketing mixDistribution (place)

Mass-marketing through department stores such as Wall-Wart and K-Mart.

Distribution according to Demographics: Women’s

Age,

Race,

Location


The International Marketing Mix

PRODUCTSPRODUCTS

PRICINGPRICING

PROMOTIONPROMOTIONDISTRIBUTIONDISTRIBUTION


Maybelline marketing mixProduct

New, very modern product

Wide selection of products

Eye catching packages

Made to fit seasonal conditions

Meets individual market requirements


Maybelline marketing mixPrice

Very competitive price

Low-cost production

Benefits from economies of scale

Pricing up to local purchasing power rate


Maybelline marketing mixPromotion

Women are sensitive to advertising

TV spots are the best way to target mass audience

Comparative advertising.

Company run ads in magazines that are geared towards women in women’s fashion and women’s service magazines


Maybelline marketing mixDistribution (place)

Excellent location for export expansion to China, Vietnam, Indonesia, etc.

On-line services plus catalogue

Wide distributions channels in more than 70 countries worldwide


SWOT ANALYSISMaybelline

Strengths Weaknesses-New, very modern product

-Wide selection of products

-Attractive all-American style

-Eye catching packages

-Made to fit seasonal conditions

-Competitive price

-Low-cost production

-Online services plus catalogue

-Wide distributions channels

-High social risk products

-Intense colors

-Average profit margins

-Sales going through independent retailers

-TV requires high budget


SWOT ANALYSISMaybelline

Opportunities Threats

-State-of-the art research center

-Using know-how from L’Oreal

group

-People are afraid to follow the latest fashion

-High-tech competitors factories

-High resistance for vivid colors in cosmetics in rural areas

-Competitors offering a variety of cosmetics

-Wide range of substitutes


SWOT ANALYSISRevlon

Strengths Weaknesses-Classic products

-Very well known

-Very high quality

-Online services

-High profit margins

-Very good market position

-Less product variety

-High prices

-High cost of production

-Low advertising budget


SWOT ANALYSISRevlon

Opportunities Threats

-State of the art research center

-People like classic colors

-Wide range of substitutes

-Competitors offering a variety of cosmetics


Web sites comparison

Revlon Maybelline

-More classical

-Well organized product menu

-More attractive

-multiple animations

-multiple categories


Web site comparisonRevlon Maybelline

Product Catalog 1 1

Beauty Tip and Advise 1 1

Feedback mechanisms (email, phone, web guestbook)

1 1

Virtual Face 1 1

Technical Support 1

Newsletters 1

Current trend 1

Online Competition 1 1

Community Group Discussion

1

Online Shopping Enabled

Financial Report 1 1

Charity work 1


RecommendationsMaybelline

There are few strategies to adopt :

To enhance products (new characteristic, better style/design)

To introduce new products to the market and additional products

To increase availability of its products and find new distribution channels

Lowering the price to gain attention of potential customers who are price sensitive


RecommendationsRevlon

The Revlon Corporation must now compete against The Revlon Corporation must now compete against multinational companies that can afford to spend multinational companies that can afford to spend more money on advertising and promoting similar more money on advertising and promoting similar products. products.

the company must look for new and more innovative ways to keep up with the growing market.

Company must offer new and/or improved products in the Jinx line to keep the line fresh and satisfying to the consumer (to preserve the product life cycle) through product development

Through a new image and new advertising strategies, the company will be able to compete in today’s

market.

Revlon and Maybelline

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