1. Running head: COVER GIRL OUTLAST STAY FABULOUS 3-IN-1 FOUNDATION
Cover Girl Outlast Stay Fabulous 3-in-1 Foundation Marketing Plan
Carolyn Bianco
University of California, Riverside
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Executive Summary
Procter & Gamble’s brand, Cover Girl, is looking to launch a new face foundation
called Outlast Stay Fabulous 3-in-1. This product will be positioned with the slogan
“Outlast your day” which indicates that this foundation offers consumers a flawless finish
with long-lasting results. Because Cover Girl has been around for more than 50 years,
this brand will rely on loyal consumers to purchase this foundation. Outlast Stay
Fabulous 3-in-1 foundation will target young women in their 20s who are looking for
products that can last throughout a whole day, but still offer a near perfect longwear.
For its first year, Procter & Gamble wants to achieve $266 million in sales or 2%
of the face makeup segment of the global beauty industry. This means that at least 27
million bottles of Cover Girl’s Outlast Stay Fabulous 3-in-1 foundation must be sold.
Current Marketing Situation
The Procter & Gamble Company was founded in 1837 when two small business
owners from Cincinnati, Ohio, candle maker William Procter and soap maker James
Gamble, merged their business together. Today, according to its company website
pg.com, The Procter & Gamble Co. is a global corporation known for producing various
nondurable household items through 50 leadership brands, which are among the most
well recognized household names throughout the world and account for 90% of P&G’s
sales and profits. While looking at some of P&G’s financial information from the past
five years, the negative growth rates are a standout characteristic among the other figures.
These negative growth rates are attributed to food and gasoline price increases between
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2009 and 2012, which have resulted in consumers buying less personal products because
consumers did not have as much disposable income to spend (Agnese, 2014). By 2013,
however, the company’s growth rate returned to a positive percentage, which is in part
because of food prices and gas prices dropped from previous years. The chart below
shows Procter & Gamble’s five key figures from five consecutive years.
2013 2012 2011 2010 2009
Revenue
(in millions)
84,167 83,680 82,559 78,938 79,029
Profit
(in millions)
41,739 41,289 41,791 41,019 40,131
Net Profit
Margin
13.6% 12.9% 14.5% 16.1% 17.0%
Growth
Rate
5.1% -7% -8% -5%
Stock Price 81.41 67.89 66.71 64.33 60.63
P&G’s products can be segmented into five categories: Beauty, Grooming,
Health Care, Fabric Care and Home Care, and Baby and Family Care. One of P&G’s
most well known beauty brands is Cover Girl, which is a cosmetics line that was
originally created in 1961 by the Noxzema Chemical Company, but was later acquired by
P&G in 1989. Cover Girl’s approach to makeup was to provide young girls and women
makeup that would make them feel like cover girls found on magazines. These cover
girls were not dramatic, avant-garde models, but were instead presented to consumers
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like a trusted friend. Today, Cover Girl carefully selects celebrities that convey a positive,
outgoing and relatable personality to represent the brand. Celebrities like Sofia Vergara,
Ellen Degeneres, Pink and Queen Latifah are currently the faces of Cover Girl.
Cover Girl is currently looking to introduce a new line of foundation called
Outlast Stay Fabulous 3-in-1 foundation.
Procter & Gamble will want to segment the market according to gender and then
age ranges for Cover Girl. The most appealing targeted segments Cover Girl will want to
focus on are teenagers, working women, and young mothers. The chart below sums the
needs of targeted segments and the corresponding benefits Outlast Stay Fabulous offers
for these needs.
Targeted
Segment
Customer Need Corresponding
Features/Benefits
Teenagers Affordable products
Ease of use because
inexperience with makeup
May be insecure of acne
Found in drugstores and stores like
Wal-Mart and Target.
The 3-in-1 formula eliminates the
need for other various face makeup.
Provides medium to full coverage
in a semi-matte finish.
Working
women
Products that last
throughout a workday
Products that are quick and
simple to use because of
busy lifestyle
Products that provide a
professional workplace
appearance
Primer quality of the product is
provides longwear.
The benefit of a primer, concealer
and foundation cuts down time
spent on face makeup.
Coverage is buildable and there are
14 shades available to ensure a
natural look.
Young
mothers
Affordable products
Products that can keep
with the pace of young
children
Multipurpose products
Priced around $10.00
All-day longwear formula will not
cause a shiny face.
Includes SPF 20 and is a primer,
concealer, and foundation all in one
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Product Review
product.
Cover Girl’s Outlast Stay Fabulous 3-in-1 foundation offers the following features:
The makeup is packaged in a 1 fluid ounce glass bottle with a pump to control the
customer’s desired amount of product.
Is available in 14 shades.
All-day flawless coverage.
Has the lasting power of a primer, the coverage of a concealer, and the
blendability of a foundation.
Provides broad-spectrum SPF 20 protection.
Provides medium to full coverage.
Shine free.
Competitive Review
Below are detailed reports of Cover Girl’s top three competitors and their products. The
following chart sums up the features of these three products.
Maybelline New York Fit Me Foundation: L’Oréal acquired Maybelline LLC. in
1996 and the brand has 10 types of foundations that are tailored to specific
customer needs. Its liquid Fit Me Foundation was introduced to the U.S. market in
2010 and is available in 18 shades that all include SPF 18 protection. This
foundation features 5-D pigment technology to match a person’s various tones
and highlights within their skin (2014). The formula is also lightweight and
breathable that is not composed of oils or waxes. Fit Me Foundation provides a
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light to medium coverage that creates a fresh, flawless look, while not completely
covering up a person’s skin. Maybelline New York is positioned as a brand by
“taking trends from the catwalk to the sidewalk, empowering women to make a
statement, explore new looks, and flaunt their own creativity and individuality,”
and to do this Maybelline offers revolutionary formulas and up-to-date shades
(2010). This particular foundation is positioned to meet the needs of women of
color by offering effortlessly, lightweight and chic shades in three categories:
Light, Medium and Dark. This foundation is available through online retailers like
ulta.com, amazon.com and drugstore.com, at discount department stores like Wal-
Mart and Target and at drugstores like Walgreens and Rite-Aid.
L’Oréal Paris True Match Super Blendable Makeup: This foundation was
introduced to the U.S. market in 2004 and there are currently 33 shades to choose
from to match to 3 different skin undertones: Cool, Warm, and Neutral. True
Match Blendable Makeup has a trademark Precise Match technology that allows
consumers to control the amount of coverage they desire. However, this
foundation typically produces a light to medium coverage. Only a select few
shades offer an SPF 17 protection, but all of the formulas do not have oils,
fragrances or pore-clogging fillers (2014). The brand L’Oréal Paris is marketed as
“providing affordable luxury for people who demand excellence in beauty,” and
their complimentary slogan “Because you’re worth it,” further exemplifies
L’Oréal’s belief in providing the highest quality for its consumers (2014). True
Match Blendable Makeup ranges from $8 to $11 depending on where it is sold.
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This foundation is available through online retailers, discount department stores,
and drugstores.
Revlon Colorstay Makeup: Revlon revamped the original 1994 formula of this
foundation in 2006 to include SoftFlex technology in order to create an all-day
lasting feature. This particular foundation is available in two formulations:
combination/oily skin and normal/dry skin. The combination/oily skin
formulation includes an SPF 6 protection while the normal/dry skin formulation
includes an SPF 15 protection. Both formulations are oil-free, offer a medium to
full coverage and both claim to not rub off with normal wear. The price for this
foundation is anywhere between $7 and $12 depending if it bought online or in a
retail store. Revlon Colorstay Foundation is available through online beauty
retailers, discount department stores like Wal-Mart and Target, and drugstores.
Competitor Brand Features
L’Oréal Maybelline Fit Me
Foundation
Lightweight formula that lets skin breathe and is
noncomedogenic; light to medium coverage; SPF
18; 18 shades available; 5-D technology to match
skin’s natural tones
L’Oréal L’Oréal Paris True
Match Super
Blendable Makeup
Noncomedogenic; light to medium coverage; Select
shades provide SPF 17; available in 33 shades
Revlon Revlon Colorstay
Makeup
Noncomedogenic; medium to full coverage; 2 types
of formulas depending on skin type; provides SPF 6
or SPF 15 depending on formula type; will not rub
off due to normal wear.
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Channels and Logistics Review
Most affordable makeup brands are found to occupy about two to three aisles
worth of space in designated beauty areas in discount department stores. Procter &
Gamble will definitely purchase a spot to display Cover Girl’s Outlast Stay Fabulous 3-
in-1 foundation in these aisles. Because Cover Girl is positioned as an affordable
makeup brand that offers quality results, Procter & Gamble should consider expanding
the availability of Cover Girl in affordable retail stores like Marshalls, TJ Maxx,
Burlington Coat Factory and Ross to appeal to adult women and mothers who are on a
budget. For teenage consumers, P&G should consider partnering with big retailers like
Forever 21 or Charlotte Russe that both sell affordable, trendy clothing that make a
statement.
Cover Girl Outlast Stay Fabulous 3-in-1 foundation is currently available online
through discount beauty stores like ulta.com and amazon.com as well as on the Cover
Girl website.
Strengths, Weaknesses, Opportunities and Threat Analysis
Cover Girl’s Outlast Stay Fabulous 3-in-1 foundation has many strengths it can
build from, but one of the biggest weaknesses of the product is its limited shade range
and that it is not noncomedogenic. The opportunities that arise for this product are that it
could be formulated for different skin types and that more shades could be available to
target more women of color. Threats to this foundation are private labels that make
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products of similar quality, but are sold at lower prices and national competitor’s wide
range of shades available to consumers.
Strengths
1. Recognition: Cover Girl is a 50 year-old brand from the U.S. that has constant
endorsements from celebrities and it has also sponsored the reality show
America’s Next Top Model where winners of the competition go on to become
new cover girls for the brand. This provides TV airtime for many of Cover Girl’s
products.
2. Multitasking ability: Because this foundation includes the benefits of a primer,
concealer and foundation, saves consumers time and money that could be spent
on other products.
3. Pump feature: This allows consumers complete control over the amount of
product the desire to use. It also is much more sanitary to use a pump as opposed
to a screw-top cap. This feature also allows the product to have a
4. Lasting ability: Since 2004 Cover Girl’s Outlast line of products are known to
provide saturated pigments that last all day. The Outlast Stay Fabulous 3-in-1
foundation is no exception. This foundation is able to last up to a nine-hour day.
Weaknesses
1. Shade range: Although the foundation is available in 14 shades, Cover Girl
needs to provide many more to stay competitive. The more shades Cover Girl
provides the more consumers, particularly women of color, it can attract and
target.
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2. Suitability for skin types: There is not a statement on the foundation’s product
label that suggests it is noncomedogenic. It does say that it is a “shine free”
formula, but that is a very vague statement that could potentially turn off
consumers who have sensitive skin. Like Cover Girl’s Clean Liquid Makeup
foundation, the Outlast Stay Fabulous 3-in-1 foundation should have other
formulations for sensitive, dry and normal skin. Again, providing more options to
consumers can attract their brand loyalty.
Opportunities
1. Beauty trends: All natural, organic makeup is increasingly becoming popular
and even though Cover Girl did experiment with this trend through their now
discontinued, NatureLuxe Silk foundation, it can learn from their mistakes and
develop a product the fuses the benefits of the Outlast Stay Fabulous foundation
and the features of a product that is good for the skin.
2. Growing markets: Currently, India and China are two of the biggest, emerging
markets. Even though both economies have been experiencing a dip in GDP
growth in 2013 as opposed to previous years, the middle-class of China is
expected to be the second biggest in the world with India’s middle class being the
fourth biggest by 2020. In fact, Asia’s total continental middle class is predicted
to amount to 1.75 billion people by 2020, which means a tremendous growth in
consumption.
Threats
1. Private labels: Joseph Agnese, from S&P Capital IQ, reported in the February
2014 Household Nondurables Industry Survey that private labels were gaining
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popularity because of their low prices compared to national brands. Even though
4 out of 10 consumers said they would never resort to a private label in terms of
personal beauty products, this still equates to 60% of consumers willing to try out
these private labels.
2. Products with more than 20 shades to choose from: The wide variety of shades
that L’Oréal Paris, Revlon, and Maybelline offers to consumers can choose from
seems much more attractive than the mere 14 shades Cover Girl offers with this
foundation.
Objectives and Issues
Cover Girl has set an ambitious objective that it believes it can still achieve for its
Outlast Stay Fabulous 3-in-1 foundation for the first two years of its market entry.
First Year Objectives
During its first year into the market, Cover Girl wants to attain a 2% market share
of the face make-up segment of the global make-up market. Looking at figures from
2011, the face make-up accounts for 35.1% of the total global make-up market. This
means that Cover Girl wants to achieve approximately $266 million in sales by selling
about 27 million bottles of foundation at an average retail price of $9.95.
Second Year Objectives
During its second year, Cover Girl would like to introduce more formula options
that accommodate different skin types as well as additional shades to better match
consumers’ unique skin tones. The second-year objective for Cover Girl would be for it
to double its sales from the first year, to $532 million.
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Issues
The main issue in launching this brand is going to be the number of already
established long-lasting, long-wear drugstore liquid foundations that come in a multitude
of shades. Cover Girl will hope to present shades that are applicable for most consumers
and with more time and more investment, it will later release more shades. For now, it
will try to place emphasis on performing up to its claims of providing a shine-free long-wear.
Marketing Strategy
Positioning
Cover Girl’s Outlast Stay Fabulous 3-in-1 foundation will be positioned as a
multitasking product that eliminates the need for extra, costly face makeup products. This
will allow Cover Girl to differentiate itself from other long-wearing drugstore
foundations. The focus for marketing this product will be on conveying the idea that this
foundation is a “holy grail” type product. This means that it was long sought after, was
previously available through more luxurious brands, but is now affordable and performs
what it claims.
Product Strategy
Outlast Stay Fabulous 3-in-1 foundation will be sold with all the features that
were previously mentioned in the Product Review section. As awareness grows, Cover
Girl plans on releasing more shades and different types of formulations to further meet
the unique needs of consumers’ skin types. This product is also going to marketed to
compliment the existing Outlast line as well.
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Pricing
Because long-wear drugstore foundations are priced within the same range, Cover
Girl will implement a competition-based pricing strategy. This particular foundation
emphasizes that it provides consumers three benefits in one product so pricing it too low
would devalue the foundation. If it is priced too high then it would not match Cover
Girl’s objective of providing quality at an affordable price, thus alienating price-conscious
consumers. Prices for this product will vary depending on where it is
distributed, for instance, prices online may be cheaper, but consumers ultimately pay
shipping costs to make up for the low prices. In-store purchases will typically be higher
so average in-store price should be set at $9.95 and online prices should vary between
$8.99 and $9.50 per bottle.
Distribution Strategy
As previously mentioned in the Channels and Logistics Review section, Cover
Girl will focus its main distribution strategy towards drugstores, discount department
stores and online retailers. In order to do this, Cover Girl distributes its product through
Procter & Gamble’s distributing company, The Procter & Gamble Distributing Company
LLC.
Marketing Communication Strategy
Online and social media marketing: The typical targeted consumer for Cover Girl
spends a large amount of time on the Internet rather than looking at traditional
media channels like printed advertisements and broadcasted advertisements. The
key strategy in using online marketing is to drive web traffic up and establish a
better connection with consumers through social media sites like Facebook,
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Twitter and Instagram. Select prominent bloggers and YouTube vloggers can be
employed to give a first-hand, honest review of the Outlast Stay Fabulous 3-in-1
foundation to thousands of potential consumers. It is important to not pay these
bloggers and vloggers or that would send a biased message.
Sales promotions: Even though sales promotions should not be constantly used,
Cover Girl could implement a temporary deal to attract hesitant consumers. A
coupon could be made where if consumers buy one Outlast Stay Fabulous 3-in-1
foundation then they would get the original LashBlast mascara at a half-off price.
Event marketing: The cover girls who endorse the brand can be paid to wear the
foundation during red carpet events to further showcase the foundation’s ability to
hold up against the numerous paparazzi camera flashes.
Marketing Research
Cover Girl and P&G will monitor prominent blogger/vlogger opinions and
discussions on Facebook pages as well as tweets from Twitter according to specific hash
tags. These methods will give P&G an understanding of customer satisfaction and any
additional needs that the foundation does not meet.
Action Programs
Cover Girl’s Outlast Stay Fabulous 3-in-1 foundation will be released this April. Below
are the summaries of the next four months’ action programs of the year.
April: Cover Girl representatives will educate retailers about the campaign and
the added benefits of selling this product in their stores. These representatives are also
responsible for ensuring that these retailers are aware of the product features so that they
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are advertised correctly and are displayed correctly as well. Cover Girl will have its
celebrity cover girls film short advertisements alluding to the next big thing in makeup,
an all-in-one, multitasking product that is perfect for any young woman with a busy
lifestyle. These advertisements will be uploaded onto Cover Girl’s YouTube channel and
shared onto its Facebook page and Twitter page. More hype will build after product
samples are given to prominent blogger/vloggers.
May: When this foundation is finally available for retail purchase, in-store
displays will be strategically arranged so that consumers’ eyes are drawn toward this new
product. Full 30-second YouTube ads and behind-the-scenes videos featuring celebrity
cover girls will be available for viewing. Cover Girl’s website will feature this foundation
as the first ad on its homepage.
June: As summer starts to roll around, the foundation will be put to the test in
hotter environments. Cover Girl will provide tips and tricks for maximizing the
foundation’s long-wear ability in summer months on its website.
July: Cover Girl will then release a sheerer version of this foundation so that it
does not feel too heavy or appear too cakey on consumers’ skin.
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