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Marketing BBA Group E

Marta Canè, Julie Mercier, Adham Mira, Lorenzo Sichero, Valentina Echeverri, Claire Duverdier

"By combining technologically advanced formulations with on-trend expertise and New York City edge, Maybelline New York's mission is to offer innovative, accessible and effortless cosmetics for every woman" - L'Oréal

Mission Statement

Value Proposition

Selling Buying

Value and Research

  • making a statement

  • empowerment
  • fashion

  • trendiness

  • a tool for self-expression

Business Situation Analysis

PROMOTION

PLACEMENT

PRODUCT

PRICE

Aim to offer affordable products

Official sponsor of runways and fashion week

200 different products

Presence in 129 countries

Retailers and distributors

TV campaigns, fashion magazines, billboards

Low pricing strategy

7P's

PEOPLE

PROCESS

PHYSICAL EVIDENCE

Sells only tangible goods

Sells solely through retailers

Thomas Lyle Williams

Does not charge for makeup services

Acquired by L'Oréal in 1996

PESTEL Analysis

olitical

P

T

echnological

PESTEL

E

conomical

E

nvironmental

S

L

ocio/cultural

egal

POLITICAL

  • Maybelline has to adhere to strict regulations imposed by many different countries in order to ensure product safety

Political

  • Many companies either import ingredients from other countries or sell directly on foreign land. Therefore, they are required to follow all political and legal requirements in whichever country they are in.

  • Maybelline has to regularly report ingredients statements, recalls, and register manufactures

Economical

Recessionary gaps can damage Maybelline in several ways:

Economical

1. Maybelline sells luxury products. Therefore, during recessions, personal income decreases leading to a fall in the demand of Maybelline's products (whole cosmetic industry)

2. This can negatively affect Maybelline in the short-run and long-run

- A drop in the demand of cosmetic products might cause a drop on the employment and total output (GDP) of that sector.

Socio/Cultural

Socio/

Cultural

During the past decade, it had been a shift in customer preferences towards natural cosmetic

The anti-aging skin care segment is significantly growing due to the large population of baby boomer (1946 and 1964)

In fact, the awareness of consumers towards the ingredients of cosmetic products sharply increased

Technological

Technological

Technological developments improve Maybelline's production system and its distribution efficiency. (Production concept)

Environmental

  • Steady increase of the plastic usage within cosmetic and skin care products is one the major issues affecting Maybelline

Environmental

Maybelline seeks to improve the life cycle of its products by optimizing resources and limiting waste.

  • Cosmetic industry started to focus more on "eco-friendly" products which have a fewer stress on the environment

Legal

Legal

Maybelline’s products have to adhere to strict cosmetic standards so that it can meet the HSA’s, (Health Science Authority) regulations. FPLA Act and FD&C Act

Micro/Macro Environment

ECONOMIC

THE COMPANY

  • Recessions can be bad for Maybelline because it sells luxury products which can cause a decreasing demand
  • Although, during a recession women get stressed which may affect their skin and this could make them buy more make up

CUSTOMERS

  • American makeup brand and is a fully-owned subsidiary of its parent company

  • The number one cosmetic brand in 90 countries today

  • Sell more than 200 different products

Because of their intensive distribution they have a widely appeal of customers, which are mostly women from middle class to mid-high class.

DEMOGRAPHIC

ageing population could be a threat for Maybelline

NATURAL

SUPPLIERS

Micro/Macro

Beauty manufacturing company

Avon, Bobbi Brown, Coty, Estée Lauder, Kiko, MAC, Nars, Revlon

  • There is a growing interest for products with natural ingredients

TV and entertainement company

  • Maybelline has not yet hopped on the bandwagon for bio, organic, cruelty-free emphasizing products

International Freight Forwarder company

Development of new materials, package design

MICRO

PUBLICS

MACRO

Makeup brush manufacturing company

  • Social media (4.7 facebook likes, 690K followers on twitter)
  • Government, local publics, internal publics

TECHNOLOGICAL

CULTURAL

COMPETITORS

  • Better production methods
  • Improve communication within the organization
  • improve supply chain management

MARKETING INTERMEDIARIES

Some religions are not allowed to use every kind of make up

POLITICAL

Maybelline has an intensive distribution, you can find its products in department stores, drug stores, convinience stores, supermarkets and on online channels like Amazon.

Competition brings out new and innovative products

As a globalized company they have to deal with many different rules and laws in different countries

5C's

5C's

COLLABORATORS

competitors

COMPANY

Climate

CUSTOMERS

Collaborators

  • Part of the consumer product division of the L’Oréal group.
  • It’s suppliers/ collaborators are mainly the Shine International, Shenzhen Beauty Star Hotas Plastics Co, the Hct Kent Plastic Products Co, and Anisa Cosmetic
  • Maybelline was the official sponsor for the Mercedes-Benz Fashion Week 2010

  • Many collaborations with influencers such as the Gigi Hadid Coast to Coast, MakeupShayla x Maybelline

Collaborators

Climate

  • HAS ( Health Science Authorities) regulations
  • Significant growth in the cosmetic market
  • Sells in 129 countries worldwide and offers international shipping
  • Use of technological advances formulas to create more sustainable and higher quality makeup
  •  Use of raw materials
  • Since 2010 the company has stopped animal testing and has made a commitment to reinforce this philosophy on other brands and countries that still use/require animal testing.

Climate

Customers

  • Women (potentially men)

  • Students and working adults

  • People with emotional needs

  • People with an inferiority complex

Customers

Competitors

  • Internal competitors (part of the L’Oréal): NYX, Urban Decay, The Body Shop, Lancôme, Essie and L’Oréal
  • External competitors include brands that are not part of the L’Oréal group; such as MAC, Clinique, Estée Lauder, Shiseido and Nars.

Top competitors in Spain:

1. Covergirl

2. Revlon

3. MAC

4. NYX

5. KIKO

6. Nars

7. Estée Lauder

8. L'Oréal

9. Lancôme

10.Urban Decay

Competitors

Company

Their marketing strategy is using social media as a platform to spread brand awareness

Contingency Plan:

3. Business Operations- eliminate delay of price quotas from suppliers and having good cost targets

1. Changes in the environment- maximize company’s proficiency and focus and company’s strengths

2. If they fail in gaining sufficient market share- re-evaluate marketing strategies and conduct further marketing research

Company

SWOT Analysis

STRENGTHS

WEAKNESSES

SWOT

OPPORTUNITIES

THREATS

Strengths

  • Best research and development team in the market

  • Meet their customer needs, they make different editions for each region or country in the world

  • Reasonably low prices as their costs are limited

Weaknesses

  • The usage of a range of chemicals in their makeup has caused them several problems

  • E-commerce is not used, there is no way to interact with their customers on social media as oppose to their competitors

Weaknesses

Opportunities

  • Increase in the average income per person has allowed more people to buy products like makeup

  • Shift in consumer behaviour has allowed maybelline to increase its sales as a result of the increase of use of makeup.

Threats

Threats

  • Relatively high competition so they have limited market share.

  • Maybelline focuses on the latest fashion, many people are reluctant to keep up with the latest fashion

  • Economic recessions have impacted the fashion industry badly over the past years

Business Objectives

VS.

Marketing Objectives

Business & Market Objectives

Business Objectives

- Sustainability (by 2020)

  • 100% sustainable products
  • reduce environmental footprint by 60%

- Make healthcare and self-protection more available for employees all over the world

- Not looking to open new stores but rather dominate the whole retail and drug-store sectors

Marketing Objectives

  • Attract new customers through social media platforms and online shopping mobile application

Marketing Objectives

  • Gain a wider range of ages as customers

Market Research

Market Research

Continuous

Continuous

Stood by the Maybelline stand counting how many products were purchased weekly at a specific time

Collected Data

Data

Conclusions

  • Most customers buy two items at a time

  • Some customers don't just buy two-three different products but double up on the same product

  • Customers care a lot about sales (Black Friday example)

Qualitative

Focus group

Qualitative

Asking

Asking

competitors

employees

Focus Group

Questions

1. Which makeup brands do you know?

2. Do you know Maybelline?

3. How often do you wear makeup?

4. What are 2 things like you like and 2 things you dislike about Maybelline?

5. What is important to you when choosing a makeup brand?

Conclusions:

Conclusions

  • Favorite brand : Mac
  • Full face makeup on special occasions only
  • They are aware of other makeup brands and use a combination of all of them on a daily basis
  • Main factor on decision making : price
  • They like Maybelline because it has a good quality/price ratio

Asking Employees

Primor Employee Interview

Douglas Employee interview

Asking employees

Q: Who are the customers of Maybelline?

A: A person with New York attitudes, a lot of personality, someone who likes challenges, has a passion for make up and is a trend setter.

Q: What type of people often buy products from Maybelline?

A: Usually older women

Asking competitors

Julie Van Ongevalle (Senior Vice President/Global general manager of Origins, Estée Lauder)

Asking employees (competitors)

Price, quality, distribution

Mass vs. Prestigious

Customers are not loyal to one brand, buy from both

Quantitative

Age range: 15 - 60

Makeup bags (0)

Age range: 13-19

Makeup bags (1)

Makeup bags (2)

Age range: 19-46

Age range: 19

Makeup bags (4)

Brand Research Triangle

MARKET

Brand Research

BRAND

CONSUMER

Brand Awareness

Estée Lauder

Rimmel

Lancôme

Maybelline

MAC

40-65

18-23

20-45

TMB

Brand

25-45

55-60

35-40

UBA

20-25

55-60

25-35

20-25

ABA

Market Research

44 respondents

17-66 years old

Market

  • People are very familiar with the brand
  • Frequently purchased
  • Frequently used
  • Quality

Consumers

Makeup Users

Consumer

Maybelline

Users

Black - Box Theory

Consumer Behavior

Marketing Mix

Purchase

Consumer characteristics

Environmental factors

Decision-making process

Iceberg Model

Women put on makeup on the morning for work or university

Behavior

Women also wear makeup at night to go out and have fun

Black Box

Needs

Because women must look pretty

Fears

Social nonacceptance

Ageing

Motivations

Be seductive

Confidence in oneself

Be taken seriously

Positioning Statement

Strategy

TARGET:

For the experiencers who seek expression through art.

F.O.R:

Maybelline's makeup is the path to make the world your catwalk by escaping the labels and restraints of society.

P.O.D:

Only Maybelline's makeup can make you as confident, unique and a little scandalous.

R.T.B:

Because all women should be able to afford and wear fabulous makeup

EXTRAVAGANT

Map

YOUNG

MATURE

SIMPLE

Conclusions and recommendations

Conclusions and recommendations

1. Quality-based promotion

2. Opening their own stores

3. Website where you can buy directly

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