Download - Maybelline new york cosmetics

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

2

Introduction

Background reviewBrand performanceMarket analysis and competitor analysis Industry trend and global opportunity

huntingInternational/Global Marketing strategies

recommendation Reference source

3

L’Oréal Overview

€15.8 billion sales in 200627 global brands until 200660,851 employees in 58 countries40 factories around the world

4

L’Oréal’s acquisitions since 1996

L’Oréal Overview

5

L’Oréal Overview

New brand acquired by L’Oréal

6

L’Oréal Overview

ConsumerProducts

High technology products Mass-market retailing channels

Garnier

L’Oréal Paris

Le Club des Créateurs

Maybelline NY

Softsheen.Carson

Professional Products

A wide range of innovative products

Hair salons

L’Oréal Professionnel

Kérastase

Redken

Matrix

Mizani

• Five Dimensions:

7

L’Oréal Overview

LuxuryProducts

Prestigious brands offer premium service

Department stores, specialty stores and travel retail outlets

Lancême

Helena Rubinstein

Shu Uemura

Giorgio Armani

Ralph Lauren

Yue-Sai

ActiveCosmetics

Dermo-cosmetic products sold by pharmacists and dermatologists

Pharmacies and specialist retailers

Vichy

La Roche-Posay

Innéov

SkinCeuticals

Sanoflore

Biotherm

Kiehl’s

Cacharel

Viktor & Rolf

Diesel

• Five Dimensions:

8

L’Oréal Overview

9

L’Oréal Overview

L’Oréal’s EPS compares with competitors

10

L’Oréal Overview

The growth of L’Oréal’s EPS

11

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 )

12

1990Maybelline acquired by the investor group Wasserstein Perella & Co

Maybelline Overview

1996L’Oréal USA, Inc. acquires Maybelline

2000Maybelline becomes the number one cosmetic brand in the USA 2002

Maybelline becomes the number one cosmetic brand in the world

13

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

14

Brand performance under L’Oréal

15


16


17

Brand performance under L’OréalProfessional Products

18

Brand performance under L’OréalLuxury Products

19

Brand performance under L’OréalActive Products

20

Brand performance under L’OréalConsumer Products

21

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.

22


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

23


Milestone

Latest Water shine lipstick Full of moisture Glazed Red Apple and Rose.

Scarlet and coral Natural range of colors to

complement their beauty

24


Milestone

Dream Mousse foundation Foundation with a powder

finish Good coverage with skin-

brightening effects It create a variety of

aesthetic illusions

25

15.9 millionLips makeup

13 millionFace makeup

50.2 millionEye makeup


Product Category Sales Volume

Face makeup 13.0 million

Lips makeup 15.9 million

Eye makeup 50.2 million

Source: 2007 Factiva, Inc.

26

S.T.P Analysis of Maybelline

Segmentation Youngster: 16-25 Office Lady: 26-35 Career Women: 35 above

27


Target Market : Maybelline’s core target audience of 16- to 25-year-old women

28


Positioning(Mass Market)

High Price

Inexpensive Price

Mature

Young

stila •• Maybelline

Revlon •L’Oréal Paris •

• Covergirl

• ALMAY

• Avon

• Integrate

• Majolica Majoroka

• Avon

• Avon

29

Marketing Mix of Maybelline

Eye Makeup Lips Makeup

Four Product Categories:

30


Face Makeup Nail Makeup

Four Product Categories:

31


Product – Foreign Consumer Culture Positioning

(FCCP) Symbolic New York City imagery that

women everywhere can relate to

32

Nail Makeup

Lips Makeup

Eye Makeup Face Makeup

$3.99~9.99 PRICE


$3.99~14.99

$6.99~24.50

$3.99~8.50

Source: Amazon. COM & eBay. COM

33


Distribution: Build up outlet near or at college

campus mass market Retailing channels

34


Promotion1: Special promotional events

Coupons Sweepstakes

35


Promotion2: Online advertising

Glamourmagazine.com Getlippy.com Msn.co.uk MySpace profile

36


Promotion3: Co – Marketing :

Apple MTV

37


Promotion4: Co – Marketing :

Sponsor for Fashion show Wedding Essentials Magazine

38


Promotion4: Advertising

39


Promotion4: Advertising

Fashion Icon as

Spokespersons Olympic gold medalists

40


Promotion5: Slogan & Jingle

Eyes that glow with enchantment Lipstick: The sidewalk is your

catwalk Maybe she’s born with it. Maybe

it’s Maybelline

41


Promotion6: Free makeup consulting

42


Promotion7: Upgrading the brand image

Redesign of product Packaging:

43


Promotion7: Upgrading the brand image

social service Provide scholarship

44


Promotion7: Holding contest and providing

scholarship

45


Source: 2006 Annual Report L’Oréal

46

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.

47

Enhancing the marketing Mix of Maybelline--- Problem shooting

The use of innovation at the heart of value creation

48


Constantly improving industrial productivity

49


The reorganization of the supply chain

50


reduction of administrative and commercial costs

51

Market analysisStrong growth in the cosmetics market

52

Market analysisGlobal cosmetic share

53

Market analysis

Definition 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.

54

Market analysis

PROCTER & GAMBLEPantene

Olay

Head & Shoulders

Clairol

Herbal Essences

Nice’n Easy

Natural Instincts

Cover Girl

SK-II

Rejoice

Max Factor

Old Spice

Secret

Lacoste

Vidal Sassoon

Aussie

Infusium 23

Noxzema

Laura Biagotti

Koleston

Wellaflex

Shockwaves

Hugo Boss

Gucci

Rochas

Escada

Puma

Anna Sui

Ghost

Yardley

Bogner

Tosca

Max Mara

Mexx

55

Market analysis

L’oréal GroupConsumer

L’Oreal Paris

Garnier

Maybelline NY

SoftSheen.C

Mininurse

Yue-Sai

La Scad

Professional

L’Oreal Prof. Redken

Kérastase

Inné

Matrix Mizani

Luxury Lancôme Biotherm Kiehl’s Laroche

Shu Uemura Oicasso

Paloma

Parfums Guy

Giorgio Armani

Ralph Lauren Fragrances

Active

Vichy

Laroche-Posay La Roche-Posay

Galderma

Innéov

56

Market analysis

Unilever PLCAxe/Lynx

Impulse Rexona/Sure Degree

Dove

Sunsilk

Organics

Lux

Ponds

Vaseline

Suave

Timotei Finesse

Salon Selectives

57

Market analysis

Colgate PalmolivePalmolive

Skin

Bracer

Protex

Mennen Speed StickCapriceLady Speed Stick Afta

58

Market analysis

Estee LauderAmerican Beauty Aramis

Clinique

Darphin

The Fragrance Donna Faran

Flirt

Good Skin

MAC

Origins Prescriptives Rodan + Fields Tommy Hilfiger

Aveda

Bobbi Brown Bumble & bumble

Donald Trump Estée Lauder Grassroots

Jo Malone

Kate Spade

La Mer

Michael Kors Stila

59

Market analysis

AvonAvon Color Avon Solutions AdvancedAvon NaturalsMark Avon Wellness

Anew

Skin-So-Soft Techniques Hair Care

60

Market analysis

Beiersdorf AGNivea, 8×4, Atrix, LabelloMarlies Möller Eucerin

Hidrofugal

La Prairie SBT Juvena Florena

61

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

62

Market analysis

Johnson & JohnsonNeutrogenapH5.5Retin-A Renova Ambi

Aveeno

RoC

Clean & Clear Biapharm SAS

63

Market analysis

HenkelSchwarzkopf & HenkelSchwarzkopfBrillanceGliss Kur

Taft

Schauma

Palette Diadermine

Fa

Schwarzkopf Professional Igora

Sihouette

bc Bonacure Seah Hairspa Osis

Indola

Schwarzkopf & Henkel Inc.

Dep

L.A. Looks Citré Shine got2b

Smooth ‘N Shine

Henkel Lion Corp.

Paon

Fresh Kight

Morris

Sergio Tacchini

La Perla

Genny Krizia Fiorucci Parfums Ferrari

64

Competitors analysisMass-market product in America

65

Competitors analysisMascara total dollar sales in America

66

Competitors analysisMascara total unit sales in America

67

Industry Trend

New target segment Seniors Men

Natural cosmetics The rapidly-growing area Government regulation

Global expansion Emerging countries

68

Industry Trend

Seniors’ segment

69

Industry Trend

Men’s segment

70

Industry Trend

Natural cosmetics Stricter legislation in E.U., U.S. and Canada.

Phase out the use of chemicals linked to cancer, birth defects and other health problem

Replace them with safer alternatives

71

Global Expansion

Industry Trend

Source: L’Oréal

72

Industry Trend

Emerging countries

73

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 now Inconsistent brand image Increase marketing and

R&D expanse

Natural cosmetics

Follow government regulation

Increase reputation

Increase marketing and R&D expanse

Global expansion

Increase total sales Growing market

Unfamiliar with local countries

Increase marketing and R&D expanse

74

Opportunity Hunting

Seniors’ segment Focus on over 35 years old

0 16 25 35

75

Opportunity Hunting

Competitor analysis: 5PsRevlon Maybelline

Product Age Defying ® Instant Age Rewind®

Price $17.98~$27.98 $17.40~$19.99

Promotion Halle Berry Christy Turlington

Place Mass market Mass market

Positioning Over 35 years old Over 35 years old

Source: Amazon. COM & eBay. COM

76

Opportunity Hunting

Natural cosmetics Maybelline is natural

Multi- functional make-up

Global expansion Emerging countries in Asia and Latin Ameri

ca

77

Global marketing strategy - recommendation

Product

Natural Product Relating packaging to pa

per or organic ingredient By using non-chemical co

nstituent could get through the cosmetics legist ration.

Price

Slightly higher than mass

Natural cosmetics - Maybelline is natural

78


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

79


Product

Centering on sophisticated looking package

Multi- functional make-up Ultra-coverage pigment mo

isturizing (Hyaluronic Acid ) Anti – aging (Pro-Xylane C

ollagen

Price

Higher price

New target segment-seniors

80


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

81


New target segment-seniors New products in 2007

Instant Age Rewind® Double Face Perfector

Christy Turlington

82


Global expansion Focus on emerging countries and set up subsidi

aries China→ L’Oréal China Co. Ltd India → L’Oréal India Private Ltd Russia Brazil Mexico → L’Oréal Mexico S.A. de C.V

83


Global expansion Product

Focus on whitening and anti-UV product

Have more shades to meet consumers’ need

Promotion Take a famous person in host

countries as spokesperson

84

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 D

rug 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 tone

s, colors. Superbrands, s344. Tim Little, Sanford Lewis, Pamela Lundguist (2006). Beneath the skin – Hid

den 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.

85

Reference Source Internet1. Heather Michelle. (Jul 30, 2006). Associated content. Top mascara under 1

0 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

86

Reference Source

5. 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/

87

Q & AQ & A