Marketing Manage Revlon and Maybelline cosmetics

Summer 2000

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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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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Profile of Revlon
Established in 1932 Manufactures, markets and sells extensive array of cosmetics and skin care, fragrances and personal care products.

The companys products are sold world wild and marketed under such known brand names such as: Revlon, color stay, Revlon-age defining, skin lights and ultima.
Revlons 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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Profile of Maybelline
T.L.Williams founded the Maybelline company in 1915 and introduced Maybelline Cake Mascara. In February,1996, Maybelline was acquired by LOreal USA, Inc., a leader in the mass-market color cosmetics business. Maybelline creates seasonal color stories with products in the seasons 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 LOreal.
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Revlon objective In our factory, we make lipstick. In our advertising, we sell hope.
~ Charles Revson Revlon Cosmetics

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Revlon objective
To become the worlds 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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Maybelline objective
May be she is born with it,,, May be it is Maybelline

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Maybelline objective
To become worlds 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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The Competitive Advantages Maybelline

Low prices due to low cost of production. More product and color variety. Strong market penetration

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Competitive Advantage Revlon

Customized Make-Up. Proper selection of brand names 007 Film Sponsorship

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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 its products which represents the character of Halle berry in the film.

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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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Identifying Market Segments

Geographic Demographic Variables Variables

Psychographic Variables
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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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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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Price comparison
Price Comparison
12 10 8 6 4 2 0
NAIL MASCARA EYELASH FACE EYE LIP EYE EYE

MAYBELLINE REVLON

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Marketing Mix
The Four Ps

roduct ricing

lace
(Distribution)
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romotion
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Revlon marketing mix

Product The right product for the target market.

Packaging of the product appeals to the customer.

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Revlon marketing mix Price

Revlons overall pricing strategy is to market to a wide range of consumers 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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The Promotional Mix

Personal Selling

Advertising

Sales Promotions

Public Relations

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Revlon marketing mix Promotion

Revlons 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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Revlon marketing mix Distribution (place)

Mass-marketing through department stores such as Wall-Wart and K-Mart. Distribution according to Demographics: Womens

Age,

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Race,

Location
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The International Marketing Mix

PRODUCTS
PRICING

PROMOTION DISTRIBUTION
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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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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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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 womens fashion and womens service magazines
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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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SWOT ANALYSIS Maybelline

Strengths
-New, very modern product
-Wide selection of products -Attractive all-American style

Weaknesses -High social risk products

-Intense colors -Average profit margins -Sales going through independent retailers -TV requires high budget

-Eye catching packages

-Made to fit seasonal conditions -Competitive price -Low-cost production -Online services plus catalogue -Wide distributions channels

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SWOT ANALYSIS Maybelline

Opportunities Threats
-People are afraid to follow the latest fashion
-High-tech competitors factories -Using know-how from LOreal group -High resistance for vivid colors in cosmetics in rural areas -Competitors offering a variety of cosmetics -Wide range of substitutes

-State-of-the art research center

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SWOT ANALYSIS Revlon

Strengths
-Classic products
-Very well known -Very high quality

Weaknesses
-Less product variety
-High prices -High cost of production

-Online services
-High profit margins -Very good market position

-Low advertising budget

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SWOT ANALYSIS Revlon

Opportunities Threats
-Wide range of substitutes

-State of the art research center

-People like classic colors

-Competitors offering a variety of cosmetics

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Web sites comparison

Revlon -More classical -Well organized product menu Maybelline -More attractive -multiple animations -multiple categories

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Web site comparison

Revlon
Product Catalog

Maybelline 1
1
1 1

Beauty Tip and Advise

Feedback mechanisms (email, phone, web guestbook) Virtual Face

1
1

Technical Support
Newsletters Current trend Online Competition 1

1
1 1 1

Community Group Discussion

Online Shopping Enabled Financial Report Charity work
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1 1
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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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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 todays market.
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