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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