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.
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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.
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4.
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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.
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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.
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7.
Revlon objective
“In our factory, we make
lipstick. In our advertising,
we sell hope.”
~ Charles Revson
Revlon Cosmetics
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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.
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9.
Maybelline objective
“May be she is born with it,,, May be it is
Maybelline
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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.
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11.
The Competitive Advantages
Maybelline
Low prices due to low cost of
production.
More product and color variety.
Strong market penetration
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12.
Competitive Advantage
Revlon
Customized Make-Up.
Proper selection of brand names
007 Film Sponsorship
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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.
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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.
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15.
Identifying Market Segments
Geographic Demographic
Variables Variables
Psychographic
Variables
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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
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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
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18.
Price comparison
Price Comparison
12
10
8 MAYBELLINE
6
4 REVLON
2
0
NAIL
LIP
FACE
EYE
EYE
EYE
EYELASH
MASCARA
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19.
Marketing Mix
The “Four P’s”
roduct
ricing
lace
(Distribution)
romotion
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20.
Revlon marketing mix
Product
The right product for the target market.
Packaging of the product appeals to the
customer.
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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.
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22.
The Promotional Mix
Personal
Selling
Advertising
Public
Sales
Relations
Promotions
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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
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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
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25.
The International Marketing Mix
PRODUCTS
PRICING
PROMOTION
DISTRIBUTION
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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
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27.
Maybelline marketing mix
Price
Very competitive price
Low-cost production
Benefits from economies of scale
Pricing up to local purchasing power rate
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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
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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
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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
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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
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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
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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
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34.
Web sites comparison
Revlon Maybelline
-More classical -More attractive
-Well organized product -multiple animations
menu
-multiple categories
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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
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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
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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.
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