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Marketing Manage

Revlon and Maybelline cosmetics



              Summer 2000
Creating 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.
Copyright ©2003 Prentice Hall, Inc.                10 - 2
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.




Copyright ©2003 Prentice Hall, Inc.                                               10 - 3
Copyright ©2003 Prentice Hall, Inc.   10 - 4
Profile of Revlon

                                        Established in 1932

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

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

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

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




Copyright ©2003 Prentice Hall, Inc.                                                                       10 - 5
Profile of Maybelline
                                       T.L.Williams founded the Maybelline company in
                                      1915 and introduced Maybelline Cake Mascara.
                                       In February,1996, Maybelline was acquired by
                                      L’Oreal USA, Inc., a leader in the mass-market
                                      color cosmetics business.
                                       Maybelline creates seasonal color stories with
                                      products in the season’s hottest shades.
                                       The Maybelline image is hip, intelligent, stylish
                                      and charming.
                                        Maybelline has the top research and development
                                      teams and resources through their parent company
                                      L’Oreal.
Copyright ©2003 Prentice Hall, Inc.                                                        10 - 6
Revlon objective


                                        “In our factory, we make
                                      lipstick. In our advertising,
                                              we sell hope.”
                                                        ~ Charles Revson
                                                        Revlon Cosmetics




Copyright ©2003 Prentice Hall, Inc.                                    10 - 7
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.


Copyright ©2003 Prentice Hall, Inc.                                      10 - 8
Maybelline objective

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




Copyright ©2003 Prentice Hall, Inc.                           10 - 9
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.


Copyright ©2003 Prentice Hall, Inc.                                    10 - 10
The Competitive Advantages
                                         Maybelline

                                      Low prices due to low cost of
                                      production.
                                      More product and color variety.
                                      Strong market penetration




Copyright ©2003 Prentice Hall, Inc.                                     10 - 11
Competitive Advantage
                                            Revlon
                         Customized Make-Up.
                         Proper selection of brand names
                         007 Film Sponsorship




Copyright ©2003 Prentice Hall, Inc.                           10 - 12
Advertisement strategy
                                              Revlon
                          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.



Copyright ©2003 Prentice Hall, Inc.                                    10 - 13
Advertisement strategy
                                           Maybelline
                          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.




Copyright ©2003 Prentice Hall, Inc.                                10 - 14
Identifying Market Segments




                                      Geographic Demographic
                                       Variables  Variables


                                          Psychographic
                                            Variables

Copyright ©2003 Prentice Hall, Inc.                            10 - 15
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


Copyright ©2003 Prentice Hall, Inc.                                                   10 - 16
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



Copyright ©2003 Prentice Hall, Inc.                                    10 - 17
Price comparison

                                                     Price Comparison

                   12
                   10
                    8                                                                 MAYBELLINE
                    6
                    4                                                                 REVLON
                    2
                    0
                                      NAIL



                                                   LIP




                                                                     FACE
                                             EYE



                                                         EYE

                                                               EYE



                                                                            EYELASH
                           MASCARA




Copyright ©2003 Prentice Hall, Inc.                                                                10 - 18
Marketing Mix
                                             The “Four P’s”


                       roduct
                                                               ricing



                                      lace
                      (Distribution)
                                                        romotion
Copyright ©2003 Prentice Hall, Inc.                                     10 - 19
Revlon marketing mix

                Product
                         The right product for the target market.


                         Packaging of the product appeals to the
                         customer.



Copyright ©2003 Prentice Hall, Inc.                                 10 - 20
Revlon marketing mix
                                             Price
                         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.


Copyright ©2003 Prentice Hall, Inc.                                         10 - 21
The Promotional Mix


                                                    Personal
                                                     Selling
                                      Advertising



                                                     Public
                                        Sales
                                                    Relations
                                      Promotions


Copyright ©2003 Prentice Hall, Inc.                             10 - 22
Revlon marketing mix
                                           Promotion
                         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
Copyright ©2003 Prentice Hall, Inc.                                          10 - 23
Revlon marketing mix
                                       Distribution (place)
                         Mass-marketing through department stores
                         such as Wall-Wart and K-Mart.
                         Distribution according to Demographics:
                         Women’s
                                                  Age,
                                                  Race,
                                              Location
Copyright ©2003 Prentice Hall, Inc.                                 10 - 24
The International Marketing Mix

                                 PRODUCTS
                                             PRICING




                                            PROMOTION
                             DISTRIBUTION

Copyright ©2003 Prentice Hall, Inc.                      10 - 25
Maybelline marketing mix
                                              Product
                         New, very modern product
                         Wide selection of products
                           Eye catching packages
                         Made to fit seasonal conditions
                         Meets individual market requirements



Copyright ©2003 Prentice Hall, Inc.                              10 - 26
Maybelline marketing mix
                                               Price
                         Very competitive price
                         Low-cost production
                         Benefits from economies of scale
                           Pricing up to local purchasing power rate




Copyright ©2003 Prentice Hall, Inc.                                    10 - 27
Maybelline marketing mix
                                             Promotion
                         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

Copyright ©2003 Prentice Hall, Inc.                                 10 - 28
Maybelline marketing mix
                                        Distribution (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




Copyright ©2003 Prentice Hall, Inc.                                    10 - 29
SWOT ANALYSIS
                                        Maybelline
                Strengths                          Weaknesses
                -New, very modern product          -High social risk products
                -Wide selection of products        -Intense colors
                -Attractive all-American style     -Average profit margins
                -Eye catching packages             -Sales going through independent
                -Made to fit seasonal conditions   retailers
                 -Competitive price                -TV requires high budget
                 -Low-cost production
                -Online services plus catalogue
                 -Wide distributions channels

Copyright ©2003 Prentice Hall, Inc.                                                   10 - 30
SWOT ANALYSIS
                                           Maybelline
                                  Opportunities                   Threats
                -State-of-the art research center   -People are afraid to follow the latest
                                                    fashion
                                                    -High-tech competitors factories

                 -Using know-how from L’Oreal       -High resistance for vivid colors in
                group                               cosmetics in rural areas
                                                    -Competitors offering a variety of
                                                    cosmetics
                                                    -Wide range of substitutes




Copyright ©2003 Prentice Hall, Inc.                                                        10 - 31
SWOT ANALYSIS
                                         Revlon
                Strengths                    Weaknesses
                -Classic products            -Less product variety
                -Very well known             -High prices
                -Very high quality           -High cost of production
                -Online services             -Low advertising budget
                -High profit margins
                -Very good market position




Copyright ©2003 Prentice Hall, Inc.                                     10 - 32
SWOT ANALYSIS
                                            Revlon
                                  Opportunities                  Threats
                -State of the art research center   -Wide range of substitutes




                -People like classic colors         -Competitors offering a variety of
                                                    cosmetics




Copyright ©2003 Prentice Hall, Inc.                                                      10 - 33
Web sites comparison

                                      Revlon           Maybelline
                -More classical                 -More attractive
                -Well organized product         -multiple animations
                menu
                                                -multiple categories




Copyright ©2003 Prentice Hall, Inc.                                    10 - 34
Web site comparison
                                                Revlon       Maybelline

                      Product Catalog                    1                 1
                      Beauty Tip and Advise              1                 1
                      Feedback mechanisms                1                 1
                      (email, phone, web
                      guestbook)
                      Virtual Face                       1                 1
                      Technical Support                                    1
                      Newsletters                                          1
                      Current trend                                        1
                      Online Competition                 1                 1
                      Community Group                                      1
                      Discussion
                      Online Shopping Enabled

                      Financial Report                   1                 1
                      Charity work                                         1
Copyright ©2003 Prentice Hall, Inc.                                       10 - 35
Recommendations
                                          Maybelline
                                      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



Copyright ©2003 Prentice Hall, Inc.                                                           10 - 36
Recommendations
                                          Revlon
                                       The Revlon Corporation must now compete against
                                       multinational companies that can afford to spend
                                       more money on advertising and promoting similar
                                       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.

Copyright ©2003 Prentice Hall, Inc.                                                          10 - 37

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Revlon and maybelline

  • 1. Marketing Manage Revlon and Maybelline cosmetics Summer 2000
  • 2. Creating 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. Copyright ©2003 Prentice Hall, Inc. 10 - 2
  • 3. 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. Copyright ©2003 Prentice Hall, Inc. 10 - 3
  • 4. Copyright ©2003 Prentice Hall, Inc. 10 - 4
  • 5. Profile of Revlon Established in 1932 Manufactures, markets and sells extensive array of cosmetics and skin care, fragrances and personal care products. The company’s products are sold world wild and marketed under such known brand names such as: Revlon, color stay, Revlon-age defining, skin lights and ultima. Revlon’s principal customers include large mass-volume retailers and chain drug stores, as well as certain department stores and other specialty stores such as perfumeries. The company sells cosmetics and skin care products to fulfill specifically consumer need, principally priced in the upper range of the mass market. Copyright ©2003 Prentice Hall, Inc. 10 - 5
  • 6. Profile of Maybelline T.L.Williams founded the Maybelline company in 1915 and introduced Maybelline Cake Mascara. In February,1996, Maybelline was acquired by L’Oreal USA, Inc., a leader in the mass-market color cosmetics business. Maybelline creates seasonal color stories with products in the season’s hottest shades. The Maybelline image is hip, intelligent, stylish and charming. Maybelline has the top research and development teams and resources through their parent company L’Oreal. Copyright ©2003 Prentice Hall, Inc. 10 - 6
  • 7. Revlon objective “In our factory, we make lipstick. In our advertising, we sell hope.” ~ Charles Revson Revlon Cosmetics Copyright ©2003 Prentice Hall, Inc. 10 - 7
  • 8. 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. Copyright ©2003 Prentice Hall, Inc. 10 - 8
  • 9. Maybelline objective “May be she is born with it,,, May be it is Maybelline Copyright ©2003 Prentice Hall, Inc. 10 - 9
  • 10. 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. Copyright ©2003 Prentice Hall, Inc. 10 - 10
  • 11. The Competitive Advantages Maybelline Low prices due to low cost of production. More product and color variety. Strong market penetration Copyright ©2003 Prentice Hall, Inc. 10 - 11
  • 12. Competitive Advantage Revlon Customized Make-Up. Proper selection of brand names 007 Film Sponsorship Copyright ©2003 Prentice Hall, Inc. 10 - 12
  • 13. Advertisement strategy Revlon 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. Copyright ©2003 Prentice Hall, Inc. 10 - 13
  • 14. Advertisement strategy Maybelline 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. Copyright ©2003 Prentice Hall, Inc. 10 - 14
  • 15. Identifying Market Segments Geographic Demographic Variables Variables Psychographic Variables Copyright ©2003 Prentice Hall, Inc. 10 - 15
  • 16. 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 Copyright ©2003 Prentice Hall, Inc. 10 - 16
  • 17. 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 Copyright ©2003 Prentice Hall, Inc. 10 - 17
  • 18. Price comparison Price Comparison 12 10 8 MAYBELLINE 6 4 REVLON 2 0 NAIL LIP FACE EYE EYE EYE EYELASH MASCARA Copyright ©2003 Prentice Hall, Inc. 10 - 18
  • 19. Marketing Mix The “Four P’s” roduct ricing lace (Distribution) romotion Copyright ©2003 Prentice Hall, Inc. 10 - 19
  • 20. Revlon marketing mix Product The right product for the target market. Packaging of the product appeals to the customer. Copyright ©2003 Prentice Hall, Inc. 10 - 20
  • 21. Revlon marketing mix Price 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. Copyright ©2003 Prentice Hall, Inc. 10 - 21
  • 22. The Promotional Mix Personal Selling Advertising Public Sales Relations Promotions Copyright ©2003 Prentice Hall, Inc. 10 - 22
  • 23. Revlon marketing mix Promotion 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 Copyright ©2003 Prentice Hall, Inc. 10 - 23
  • 24. Revlon marketing mix Distribution (place) Mass-marketing through department stores such as Wall-Wart and K-Mart. Distribution according to Demographics: Women’s  Age,  Race,  Location Copyright ©2003 Prentice Hall, Inc. 10 - 24
  • 25. The International Marketing Mix PRODUCTS PRICING PROMOTION DISTRIBUTION Copyright ©2003 Prentice Hall, Inc. 10 - 25
  • 26. Maybelline marketing mix Product New, very modern product Wide selection of products Eye catching packages Made to fit seasonal conditions Meets individual market requirements Copyright ©2003 Prentice Hall, Inc. 10 - 26
  • 27. Maybelline marketing mix Price Very competitive price Low-cost production Benefits from economies of scale Pricing up to local purchasing power rate Copyright ©2003 Prentice Hall, Inc. 10 - 27
  • 28. Maybelline marketing mix Promotion 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 Copyright ©2003 Prentice Hall, Inc. 10 - 28
  • 29. Maybelline marketing mix Distribution (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 Copyright ©2003 Prentice Hall, Inc. 10 - 29
  • 30. SWOT ANALYSIS Maybelline Strengths Weaknesses -New, very modern product -High social risk products -Wide selection of products -Intense colors -Attractive all-American style -Average profit margins -Eye catching packages -Sales going through independent -Made to fit seasonal conditions retailers -Competitive price -TV requires high budget -Low-cost production -Online services plus catalogue -Wide distributions channels Copyright ©2003 Prentice Hall, Inc. 10 - 30
  • 31. SWOT ANALYSIS Maybelline Opportunities Threats -State-of-the art research center -People are afraid to follow the latest fashion -High-tech competitors factories -Using know-how from L’Oreal -High resistance for vivid colors in group cosmetics in rural areas -Competitors offering a variety of cosmetics -Wide range of substitutes Copyright ©2003 Prentice Hall, Inc. 10 - 31
  • 32. SWOT ANALYSIS Revlon Strengths Weaknesses -Classic products -Less product variety -Very well known -High prices -Very high quality -High cost of production -Online services -Low advertising budget -High profit margins -Very good market position Copyright ©2003 Prentice Hall, Inc. 10 - 32
  • 33. SWOT ANALYSIS Revlon Opportunities Threats -State of the art research center -Wide range of substitutes -People like classic colors -Competitors offering a variety of cosmetics Copyright ©2003 Prentice Hall, Inc. 10 - 33
  • 34. Web sites comparison Revlon Maybelline -More classical -More attractive -Well organized product -multiple animations menu -multiple categories Copyright ©2003 Prentice Hall, Inc. 10 - 34
  • 35. Web site comparison Revlon Maybelline Product Catalog 1 1 Beauty Tip and Advise 1 1 Feedback mechanisms 1 1 (email, phone, web guestbook) Virtual Face 1 1 Technical Support 1 Newsletters 1 Current trend 1 Online Competition 1 1 Community Group 1 Discussion Online Shopping Enabled Financial Report 1 1 Charity work 1 Copyright ©2003 Prentice Hall, Inc. 10 - 35
  • 36. Recommendations Maybelline 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 Copyright ©2003 Prentice Hall, Inc. 10 - 36
  • 37. Recommendations Revlon The Revlon Corporation must now compete against multinational companies that can afford to spend more money on advertising and promoting similar 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. Copyright ©2003 Prentice Hall, Inc. 10 - 37