Maybelline new york cosmetics

International Marketing Final Report - Maybelline New York

Professor:

Shuling Liao

Students:

932930 Anthony

967301 Claire

967305 Crystal

967311 Joyce

Introduction

Background review

Brand performance

Market analysis and competitor analysis

Industry trend and global opportunity hunting

International/Global Marketing strategies recommendation

Reference source

L’Or éal Overview

€ 15.8 billion sales in 2006

27 global brands until 2006

60,851 employees in 58 countries

40 factories around the world

L’Or éal’s acquisitions since 1996

L’Oréal Overview

New brand acquired by L’Or éal

Five Dimensions:

Garnier L’Oréal Paris Le Club des Créateurs Maybelline NY Softsheen.Carson

High technology products

Mass-market retailing channels

Consumer Products L’Oréal Professionnel Kérastase Redken Matrix Mizani

A wide range of innovative products

Hair salons

Professional Products

L’Or éal Overview Biotherm Kiehl’s Cacharel Viktor & Rolf Diesel

Five Dimensions:

Lancême Helena Rubinstein Shu Uemura Giorgio Armani Ralph Lauren Yue-Sai

Prestigious brands offer premium service

Department stores, specialty stores and travel retail outlets

Luxury Products Vichy La Roche-Posay Innéov SkinCeuticals Sanoflore

Dermo-cosmetic products sold by pharmacists and dermatologists

Pharmacies and specialist retailers

Active Cosmetics

L’Oréal’s EPS compares with competitors

The growth of L’Or éal’s EPS

Maybelline Overview 1967 Plough Inc. acquires Maybelline 1971 Great Lash was born, with its candy pink and acid green tube 1915 Maybelline Company was created as a family-owned business 1913 T.L. Williams invented Maybelline Mascara (Vaseline jelly + coal dust )

Maybelline Overview 1990 Maybelline acquired by the investor group Wasserstein Perella & Co 1996 L’Oréal USA, Inc. acquires Maybelline 2000 Maybelline becomes the number one cosmetic brand in the USA 2002 Maybelline becomes the number one cosmetic brand in the world

Maybelline Overview 2004 Maybelline 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

Brand performance under L’Oréal

Brand performance under L’Or é al

Brand performance under L’Or é al Professional Products

Brand performance under L’Or é al Luxury Products

Brand performance under L’Or é al Active Products

Brand performance under L’Or é al Consumer Products

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.

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

Milestone

Latest Water shine lipstick

Full of moisture

Glazed Red Apple and Rose. Scarlet and coral

Natural range of colors to complement their beauty

Milestone

Dream Mousse foundation

Foundation with a powder finish

Good coverage with skin-brightening effects

It create a variety of aesthetic illusions

Product performance under Maybelline Source: 2007 Factiva, Inc. 50.2 million Eye makeup 15.9 million Lips makeup 13.0 million Face makeup Sales Volume Product Category

S.T.P Analysis of Maybelline

Segmentation

Youngster: 16-25

Office Lady: 26-35

Career Women: 35 above

Target Market :

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

Positioning

(Mass Market)

stila • • Maybelline Revlon • L’Oréal Paris • • Covergirl • ALMAY • Avon • Integrate • Majolica Majoroka • Avon • Avon High Price Inexpensive Price Mature Young

Marketing Mix of Maybelline Four Product Categories: Eye Makeup Lips Makeup

Marketing Mix of Maybelline Four Product Categories: Face Makeup Nail Makeup

Marketing Mix of Maybelline

Product –

Foreign Consumer Culture Positioning (FCCP)

Symbolic New York City imagery that women everywhere can relate to

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

Distribution:

Build up outlet near or at college campus

mass market

Retailing channels

Promotion1:

Special promotional events

Coupons

Sweepstakes

Promotion2:

Online advertising

Glamourmagazine.com

Getlippy.com

Msn.co.uk

MySpace profile

Promotion3:

Co – Marketing :

Apple

MTV

Promotion4:

Co – Marketing :

Sponsor for Fashion show

Wedding Essentials Magazine

Promotion4:

Advertising

Promotion4:

Advertising

Fashion Icon as

Spokespersons

Olympic gold medalists

Promotion5:

Slogan & Jingle

Eyes that glow with enchantment

Lipstick: The sidewalk is your catwalk

Maybe she’s born with it. Maybe it’s Maybelline

Promotion6:

Free makeup consulting

Promotion7:

Upgrading the brand image

Redesign of product Packaging:

Promotion7:

Upgrading the brand image

social service

Provide scholarship

Promotion7:

Holding contest and providing scholarship

Marketing Mix of Maybelline Source: 2006 Annual Report L’Or éal

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.

Enhancing the marketing Mix of Maybelline--- Problem shooting

The use of innovation at the heart of value creation

Constantly improving industrial productivity

The reorganization of the supply chain

reduction of administrative and commercial costs

Market analysis

Strong growth in the cosmetics market

Market analysis

Global cosmetic share

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 .

Market analysis Gucci Rochas Escada Puma Anna Sui Ghost Yardley Bogner Tosca Max Mara Mexx Max Factor Old Spice Secret Lacoste Vidal Sassoon Aussie Infusium 23 Noxzema Laura Biagotti Koleston Wellaflex Shockwaves Hugo Boss Pantene Olay Head & Shoulders Clairol Herbal Essences Nice’n Easy Natural Instincts Cover Girl SK-II Rejoice PROCTER & GAMBLE

Market analysis Galderma Innéov Laroche-Posay La Roche-Posay Active Vichy Giorgio Armani Ralph Lauren Fragrances Shu Uemura Oicasso Paloma Parfums Guy Luxury Lancôme Biotherm Kiehl’s Laroche Matrix Mizani K érastase Inné Professional L’Oreal Prof. Redken Mininurse Yue-Sai La Scad Maybelline NY SoftSheen.C Consumer L’Oreal Paris Garnier L’or é al Group

Market analysis Lux Ponds Vaseline Suave Timotei Finesse Salon Selectives Axe/Lynx Impulse Rexona/Sure Degree Dove Sunsilk Organics Unilever PLC

Market analysis Mennen Speed Stick Caprice Lady Speed Stick Afta Palmolive Skin Bracer Protex Colgate Palmolive

Market analysis Aveda Bobbi Brown Bumble & bumble Donald Trump Est ée Lauder Grassroots Jo Malone Kate Spade La Mer Michael Kors Stila American Beauty Aramis Clinique Darphin The Fragrance Donna Faran Flirt Good Skin MAC Origins Prescriptives Rodan + Fields Tommy Hilfiger Estee Lauder

Market analysis Anew Skin-So-Soft Techniques Hair Care Avon Color Avon Solutions Advanced Avon Naturals Mark Avon Wellness Avon

Market analysis Hidrofugal La Prairie SBT Juvena Florena Nivea, 8×4, Atrix, Labello Marlies M öller Eucerin Beiersdorf AG

Market analysis Serge Lutens Auprés D’ici là Ipsa Ayura Ettusais Decléor Nars Zirh Fitit Kesyo-akusei Yuxia Za Sea Breeze Shisedo, Clé de Peau Beauté Carita Beauté Prestige International Parfums Issey Miyake Parfums Jean Paul Gaultier Oarfums Narciso Rodriguez Soka Mooka FT Shiseido Zotos Shiseido

Market analysis Aveeno RoC Clean & Clear Biapharm SAS Neutrogena pH5.5 Retin-A Renova Ambi Johnson & Johnson

Market analysis Genny Krizia Fiorucci Parfums Ferrari Morris Sergio Tacchini La Perla Henkel Lion Corp. Paon Fresh Kight Schwarzkopf & Henkel Inc. Dep L.A. Looks Citré Shine got2b Smooth ‘N Shine Schwarzkopf Professional Igora Sihouette bc Bonacure Seah Hairspa Osis Indola Schwarzkopf & Henkel Schwarzkopf Brillance Gliss Kur Taft Schauma Palette Diadermine Fa Henkel

Competitors analysis

Mass-market product in America

Mascara total dollar sales in America

Mascara total unit sales in America

Industry Trend

New target segment

Seniors

Men

Natural cosmetics

The rapidly-growing area

Government regulation

Global expansion

Emerging countries

Industry Trend

Seniors’ segment

Industry Trend

Men’s segment

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

Global Expansion

Industry Trend Source: L’Or éal

Industry Trend

Emerging countries

Opportunity Hunting

Unfamiliar with local countries

Increase marketing and R&D expanse

Increase total sales

Growing market

Global expansion

Follow government regulation

Increase reputation

Natural cosmetics

It’s not popular now

Inconsistent brand image

Men’s segment

Seniors’ segment Cons Pros Trend

Opportunity Hunting

Seniors’ segment

Focus on over 35 years old

0 16 25 35

Opportunity Hunting

Competitor analysis: 5Ps

Source: Amazon. COM & eBay. COM Instant Age Rewind® Age Defying ® Product Over 35 years old Over 35 years old Positioning Mass market Mass market Place Christy Turlington Halle Berry Promotion $17.40~$19.99 $17.98~$27.98 Price Maybelline Revlon

Opportunity Hunting

Natural cosmetics

Maybelline is natural

Multi- functional make-up

Global expansion

Emerging countries in Asia and Latin America

Global marketing strategy - recommendation

Product

Natural Product

Relating 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

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

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

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 products in 2007

Instant Age Rewind® Double Face Perfector

Christy Turlington

Global expansion

Focus on emerging countries and set up subsidiaries

China-> L’Or éal China Co. Ltd

India -> L’Or éal India Private Ltd

Russia

Brazil

Mexico -> L’Or éal Mexico S.A. de C.V

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

Reference Source

Books

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。

Newspaper

Eye makeup emerges as the star performer. (2006, September 11). Chain Drug Review, P.1

Research Report

Merrill Lynch, Pierce, Fenner & Smith Incorporated (2007). L’oréal (Rep. No. 10648500). United Kingdom. Unpublished.

ODDO Securities Corp. (2007). L’oréal. Paris, France. Unpublished.

Christine Bittar. (2004, June 21). Amid changing demos, a burst of skin tones, colors. Superbrands, s34

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.

Bear Stearns & Co. Inc. (2007). L’oréal. London, United Kingdom. Unpublished.

Reference Source

Internet

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

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

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

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

Reference Source

The History of Maybelline . (2002, July19). Nzgirl Online. Retrieved December 21, 2007, from the World Wide Web: http://www.nzgirl.co.nz/articles/1193

Maybelline New York. (2007). MAYBELLINE - HISTORY . Retrieved December 21, 2007, from the World Wide Web: http://www.maybelline.co.uk/about_us/l282l283.htm

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