Maybelline case study essay

CASE STUDY Marketing Taxation Maybelline Makeup products Natali Louise 2010 Natali L 1/1/2010 TABLE OF CONTENTS 1 ) EXECUTIVE SYNOPSIS 2 . RECOGNIZE MAYBELLINES CORPORATE MARKETING GOALS 3. SPECIFY THE PROBLEM 4. EXTERNAL ENVIROMENTAL PROBLEM 5. MARKET EXPLANATION * MARKET SIZE 5. MARKET PROGRESS * INDUSTRY STRUCTURE * MARKET STYLES * COMPETITION * INDUSTRY SEGMENTATION five. INTERNAL ECOLOGICALLY (EXISTING PROMOTING MIX) * PRICE, MERCHANDISE, POSITION, ADVERTISING * DIVISION * RESOURCE ANALYISIS 2. FINANCIAL SITUATION 5. SWOT ANALYISIS 6. SELECT SEGMENTS TO GET ATTACK 7. IDENTIFY ALTERNATIVES 8. CHOICE OF BEST ALTERNATE. KEY SUCCESS FACTORS 1 ) EXECUTIVE OVERVIEW In this case study we will be analyzing Maybelline Plastic Company and its current market placement and syndication domestically and globally, we are looking at the expansion with the company and also the feasibility of successful development, options available and extension from the Maybelline range. 2 . IDENTIFY MAYBELLINES CORPORATE AND BUSINESS MARKETING TARGETS Maybelline’s corporate objectives may be summarized inside the three stage strategy designed to- * Expand you’re able to send market occurrence through corporate acquisition, producing its geographic presence wider. To develop or perhaps purchase a fresh personal line of care products that will compliment Maybelline’s existing business 2. To revitalize the company’s primary colour cosmetics business The marketing objectives have been prepared to- * Develop and advertise the newly introduced “Shades of You a cosmetic collection targeted to satisfy the specific requirements of girl of colour. * Develop and launch a sparkle free production for teenagers and young female. * Introduce a new item segment ‘Revitalize developed specifically for older woman. * Appeal to an foreign market. 3.

DEFINE THE CHALLENGE Maybelline would like to expand about into the global cosmetics industry, this may encounter difficulties while the boundaries to access into Asian and Euro markets will be high, existing well entrenched cosmetic businesses are already well established and hold a high market share, there can also be the difficulty of marketing cosmetics within an international market place where cultural obstacles may well arise, perception of Maybelline as a brand might not be high, along with international revenue of Maybelline accounting for only 10% of the business net sales in 1991.. EXTERIOR ENVIROMENTAL ISSUE * MARKET DEFINITION Maybelline’s presence in the domestic Usa market should be thought about strong, they have held second largest business for the last five years, which includes second and third positions in the household market for face and lip makeup, this has motivated them to broaden globally, nevertheless as stated net sales internationally have been poor compared to revenue in their home market. MARKET SIZE Unit Sales and Profitability Marketed currently in approximately eighty thousand stores domestically, and also various wholesalers such as Wal-Mart, Kmart and Target, Maybelline’s net revenue through Wal-Mart alone constituted over 10% of the firm annual sales with eye shadows constitute 39% of sales followed by deal with products at 24%, lip products for 14% and nail shine at 4%.

One can see through current revenue figures that within the home market and distribution stations, globally placement Maybelline would depend heavily about successful merchandise distribution channels. YEAR ENDED YEAR ENDED DEC. you, 1990 DEC, 31, 1991| POSITION TALK ABOUT POSITION SHARE| TOTAL SHADE COSMETICS| 2| 18%| 2| 18%| VISION PRODUCTS| 1| 30%| 1| 30%| CONFRONT PRODUCTS| 2| 14%| 2| 15%| LIP PRODUCTS| 3| 13%| 3| 12%| TOENAIL PRODUCTS| 5| 9%| 5| 9%|

MERCHANDISE GROUP PERCENT OF NET SALES%| ATTENTION * WIMPERNBETONUNG * EYE LINE/BROW 2. EYE SHADOW| 39%| 18% 14% 7%| FACE 5. FOUNDATION * BLUSH 5. CONCEALER 2. POWDER| 24% | 9% 6% 3% 6%| LIP| 14%| |

NAILOTHER COSMETICS| 5% 5%| | 5. MARKET DEVELOPMENT With strong profit potential in effectively selling cosmetics in a global market place, the plan to increase the company’s presence in their existing foreign markets have been currently to update merchandise formulations, update packaging and advertise with current home-based advertising campaigns, likewise strengthening the current global distribution programs to ensure regular availability of Maybelline’s products.

New manufacturing rights in The japanese hope to expand the brand into a lucrative revenue market currently profiting additional cosmetic businesses. At present merchandise growth can be expanding whilst developing new cosmetic lines for concentrate on demographics, including develop and advertise the newly introduced “Shades of You a cosmetic range targeted to satisfy the specific demands of girl of colour. Developing and launching a shine cost-free product line for teenagers and young woman and introducing a fresh product section ‘Revitalize created specifically for elderly woman. MARKETPLACE STRUCTURE Competition against Maybelline in the global market is apparently strong, among the this is Revlon’ s Max Factor and Beatrix cosmetic brands in Europe and Japan previously using a well established network for product syndication and advertising. This would show that while profitable while entering the global market looks based on the current market structure Maybelline’s ideal distribution channels and network will possibly create or inhibit all their ability to contend internationally. Porters Five Power Model- 5. MARKET DEVELOPMENTS

With revenue for cost-effective cosmetic products increasing it would appear that Maybelline’s position in its current home market very well attuned to its buyers needs, providing a comprehensive variety of diverse cosmetic products, Maybelline has structured itself to charm to all grow older, and contest demographics, the use of Multicultural designs, an integral walking stone to international industry appeal. Technologically their use of EDI (electronic data interchange), allows for extensive market research to discover key client buying trends by geographic purchases. COMPETITION Internationally Direct competition happen to be companies such as Procter Bet owning Revlon, Japan’s Kao Corporation plus the Anglo Nederlander Unilever Group, already with wide circulation in their particular companies inside the global cosmetic makeup products market. Each of the above companies sell in within the same segments as Maybelline cosmetic makeup products, not very distinct in appearance or price they can be however acquireable in Asia and European countries. * MARKET SEGMENTATION

Within the market sectors Maybelline sell to, the their least successful are definitely the European and Asian markets, additional market research for this specific marketplace segment might help discover the certain consumer demands, which may not really be resolved at present, such as a segmentation research to reveal abroad consumer attributes, lifestyle, market, geographic and current tendencies. 5. INTERNAL ENVIROMENT (EXISTING MARKETING MIX) * Setting, Product, Price, Promotion- Maybelline’s position in the affordably charged cosmetics market is high, it has managed a 30% domestic market share for the last five years. * Maybelline has evolved a variety of products, updating the product formulations, its most popular being eye makeup, including wimperntusche, eye lining and eye shadow, they also offer lip companies skin care and nail care products, they have created lines to include all ages, and skin shades, they have redesigned their product packaging. Affordable and widely allocated Maybelline comes in a wide range of shops from Aesthetic counters in department stores to supermarkets, the two domestically and internationally. * Promotion to get Maybelline has been extensive, they may have launched a multimedia system advertising campaign which has a focus on the newest product packaging of Maybelline, print ads in a variety of popular magazines and tv set campaigns using celebrities.

Maybelline’s strong promotional initiatives would indicate their make use of a take strategy, with increased focus on people buying goods on require, rather than personal selling. * DISTRIBUTION Circulation domestically can be predominantly produced by their individual sales force, roughly 300 people in North America, to a smaller extent by a small network of meals brokers, Foreign sales will be achieved by using a combination of special distributers and Maybelline’s very own sales force. 2. RESOURCE ANALYISIS

Production capacity for Maybelline is definitely high, Managing appears to have clearly defined and well investigated marketing goals and revenue objectives, technically their use of EDI permits them to carry out thorough market research of their client’s preferences and spending patterns. * FINANCES Profitability with regards to their existing net sales within the global market is not high when looking at comparative sales domestically, internationally Maybelline is apparently perceived by customers being a low end product, which may answer why simply 10% of annual sales were generated by global sales. SWOT ANALYISIS STRENGHS| WEAKNESSES| 5. STRONG HOUSEHOLD SALES 2. HIGH HOME MARKET SHARE 2. WIDELY BOUGHT BY ALMOST ALL AGE DEMOGRAPHICS * AFFORDABLE * BROADLY DISTRIBUTED * WELL ADVERTISED| * LIMITED OVERSEAS SYNDICATION * LIMITED ADVERTISING VISABILITY OVERSEAS| OPPOTUNITYS| THREATS| 5. OPPOTUNITYS TO BUILD UP SOAP PROPER CARE UNDER THE NEWLY AQUIRED ‘YARDLY’ BRAND 5. EXPAND INSIDE THEIR OVERSEAS MARKETS| * EXISTING STRONG OFFSHORE COMPETITION 2. SIMILAR COSMETIC COMPANIES 2. DISTRIBUTION RELATIONSHIPS| 6. SELECT SEGMENTS PERTAINING TO ATTACK

Any difficulty . even with the barriers of entry towards the overseas market if Maybelline strengthen their current circulation globally, and obtain new distribution channels, their existing company presence and company strength will need to create an overseas popularity of them in the market place. six. IDENTIFY ALTERNATIVES * A line file format specifically designed intended for Asian Girl * Trial increase/ on the net media free gifts * Endorsing at public events * Expand to a man demographic (e. g., skincare) in related style to L’Oreal In a number of Expert Range. 8. SELECTION OF BEST ALTERNATIVE

In light of the company’s goals to expand overseas, a product or service specifically designed to get Asian female would in shape Maybelline’s current marketing objectives, * The kind of products suitable for that market could consist of eye makeup with advice on application to get more almond molded eyes. 2. Keeping price competitive nevertheless using fresh packaging to appeal to the new marketplace * Having an fun marketing campaign which includes online giveaways, an advertising plan to find “The New confront of Maybelline in Asia to grow awareness and excitement towards the product release, and a media plan aimed at marketing in Hard anodized cookware fashion magazines.. ESSENTIAL SUCCESS ELEMENTS The key accomplishment factors to for Maybelline to stay a domestic industry leader along with expand effectively into the worldwide market involves keeping their line of products inexpensive and nicely packaged in a intermediate level, along with economies of scale, keeping large development affordable together with intensive distribution, broadening to new distribution channels and keeping consumers satisfied with the quality of Maybelline Cosmetics.