Maybelline New York Marketing Plan

Table of Contents

Executive Summary
Maybelline New York is one of the best, well-known makeup brands in the world.

Maybelline is a subdivision of the cosmetic company, L’Oreal. L’Oreal had 28.49 billion

dollars in global sales in 2013. L’Oreal does not release individual sales statistics for

many of its subdivisions, but has confirmed that the Maybelline New York brand is one

of the company’s high contributing brands. The Maybelline brand is estimated to be

worth 2,921 billion dollars.

Maybelline produces high-quality products at affordable prices. Maybelline is

currently the number one cosmetics brand in America. Maybelline is also a large global

competitor; Maybelline products are offered in over 100 different countries. With a global

market share of 7.4%, Maybelline has the largest global market share of any brand in

the cosmetic industry.

Maybelline specializes in offering a large selection of impressive, yet

inexpensive, lipsticks, nail polishes, and mascaras. Focusing on mascaras specifically,

Maybelline offers mascara at a variety of prices, depending on different product features

and benefits intended to meet the needs of a diverse target market. Maybelline

successfully holds a larger market share of the mascara market than any other

individual mascara brand, with a market share of 18.8% in America in 2013.

Maybelline’s target market is young women ages 16-25. This encompasses

women of all backgrounds, including African American, White, Hispanic, and Asian.

When marketing to people of this target market, social media is very important. Due to

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this, Maybelline does a lot of marketing via social media and is very active on social

media sites such as Facebook and Twitter. Maybelline also uses women of varying

ethnic backgrounds in its advertisements in order to represent all segments of the target

market in its marketing efforts.

Environmental Analysis
Competition
Maybelline is working in a monopolistic competitive structure. There are many

potential competitors in the cosmetic industry. Therefore, Maybelline much differentiate

its products from those of the competitors. Maybelline has a couple of major brand

competitors in America, Cover Girl and Revlon. Many other competitors are brands that

are subdivisions of the company Proctor & Gamble. That being said, Maybelline is a

huge competitor in the cosmetic industry. Maybelline is currently the number one

cosmetic brand in America, and is a subdivision of the number one cosmetic company

in America, L’Oreal.

Maybelline is also a large global competitor, with Maybelline products available in

over 100 countries. Maybelline has the largest global market share in the cosmetics

industry. Maybelline’s world market share is 7.4%, while its top global competitors, Avon

and L’Oreal Paris, have market shares of 5.4% and 5.3%, respectively.

Economic

Due to Maybelline’s innovative culture and advanced technology, customers are

willing to spend money on this product. The economy is currently in a good place, and

economic factors are not heavily influencing the cosmetics market. People are spending

money on Maybelline, and this is made obvious in Maybelline’s high market share.

Consumer willingness to spend money on quality makeup is also made apparent by the

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fact that Maybelline’s owner, L’Oreal, which is currently the top grossing cosmetic

company in America.

Political

There are always political factors effecting the cosmetic industry. The largest

political factors for a global cosmetic company is adapting to different government

leadership styles and political officials in various countries. To avoid any political issues,

Maybelline must abide by set regulations and standards in each varying market, which

is more thoroughly discussed in the legal and regulatory section. Maybelline also

practices self-regulation to avoid further government involvement.

Legal and Regulatory

There are many legal and regulatory factors that governments impose on the

cosmetic industry. The main legal and regulatory involvement is through laws setting

restrictions and regulations. An example of a restriction that governments may put on

the cosmetic industry is banning certain types of chemicals, such as Phthalates, which

is carcinogenic. This is just one example of a regulation used to ensure that products

are safe and do not contain any harmful substances.

Another legal and regulatory factor that Maybelline must consider is legislation

for advertising. There are strict rules set by Advertising Standards Authority. Such

standards include that advertisements cannot be misleading by over-exaggerating the

function of the product. This is particularly important in the cosmetics industry, when it is

important for the product to look and function as the consumers expect it to.

Sociocultural

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Consumer demographics is a very important piece of the sociocultural

environment. Maybelline’s target market is young women between the ages of 16 and

25. This encompasses women of all backgrounds, including African American, White,

Hispanic, and Asian. Therefore, Maybelline must make products for each of these

groups, use appropriate marketing techniques, and be aware their differing wants and

needs. One way that Maybelline reaches this diverse target market is to include women

of differing ethnicities and backgrounds in advertisements. When consumers see

diverse ads, they are more likely to feel they are appropriately represented, and often

feel more important to the company.

Technological

Maybelline has made many technology advances throughout the brand’s life. The

first major technological advancement that Maybelline made was creating America’s first

mascara. In more recent years, Maybelline has made efforts to use new technology as

opportunities to become more ethically responsible. One such ethical issue addressed

with new technology is the testing of products on animals. Prior to 1989, Maybelline

used animal testing to ensure the safety of their products. More recent technological

advancements have allowed Maybelline to start testing their products on reconstructed

skin models and computer modeling. This advancement took a major step towards

eliminating the use of animal testing.

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Strengths Weaknesses
1. Huge Competitor. 1. Decentralized Organizational Structure.
2. Wide Availability. 2. Profit Margin.
3. Innovative Culture. 3. Dependence on Retailers.
4. Technology.
5. Unique Products.
6. Pricing Power.
7. Cost Advantages.
8. Customer Loyalty.
9. Brand Name.

Opportunities Threats
1. Growing Market. 1. Competitors.
2. Further Innovation. 2. Change in Market Demand.
3. Rise in Demand.

SWOT

Strengths

Maybelline has many strengths. One of Maybelline’s major strengths is that it is a

huge competitor in the cosmetic industry. Maybelline is the number one brand in the

cosmetic industry in America, and has the number one selling mascara in America.

Maybelline is also a global competitor, with the number one global market share at

7.4%. Another strength is that Maybelline is widely available. Maybelline products are

available in over 100 countries.

Two more major strengths of Maybelline is its innovative culture and advanced

technology. An innovative culture helps Maybelline to produce unique products and

services that meet customer needs. Superior technology allows Maybelline to better

meet the needs of their customers that competitors cannot imitate. One example of

Maybelline’s technological advances and innovation is that Maybelline created the first

ever brand of mascara. Due to this innovative culture and advanced technology,

Maybelline is able to create unique products. Unique products help distinguish

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Maybelline from competitors. These unique products play a role in giving Maybelline

pricing power.

Maybelline also has pricing power, which is another strength for the brand. Due

to this pricing power, customers will continue buying Maybelline’s products and services.

Maybelline has the power to charge customers the prices they want, which can lead to a

decrease in cost and increase in profits if used correctly. Maybelline chooses lower

prices for its products, and therefore has cost advantages over the competition. Lower

costs lead to higher profits for Maybelline. A low cost leader can undercut rivals on

price.

Two last strengths of Maybelline are customer loyalty and brand name. When

given a choice, customers are loyal to Maybelline. Instead of targeting all

customers, Maybelline only needs to target new customers in order to grow their

business. This is largely due to previously listed advantages, as well as Maybelline’s

strong brand name. A strong brand name is a major strength of Maybelline. This

gives Maybelline the previously mentioned pricing power because consumers place

additional value in the brand.

Weaknesses

Maybelline has weaknesses that must be addressed as well. One major

weakness of Maybelline is the decentralized organizational structure of L’Oreal.

Maybelline is a subdivision of L’Oreal, and because L’Oreal has so many subdivisions, it

is extremely difficult to integrate and control the whole company. Another weakness is

that the L’Oreal’s profit margin is lower than some of its competitors. This is partially due

to the company’s low prices. A third weakness of Maybelline is its dependence on third

party retailers. This creates a lack of control in sales.

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Opportunities

There are three major opportunities for Maybelline. These three opportunities are

a growing market, further innovation, and a growth in demand. There is currently a

growing market for make-up, which can be largely advantageous for Maybelline in the

future. There is also an opportunity for further innovation in the future, which would

result in product and service expansions. Lastly, there is a rising demand for organic

and natural cosmetics, which Maybelline is known for.

Threats

Lastly, the brand has important threats to discuss. Competitors are a large threat

to Maybelline. Two major brand competitors in the cosmetic industry are Cover Girl and

Revlon. Many other competitors are brands that are subdivisions of the company

Proctor & Gamble. The two brands that are currently the largest global threats to

Maybelline are Avon, with a 5.4% global market share, and L’Oreal Paris, with a 5.3%

global market share.

There is also the possibility of new foreign competitors with new innovative

products. A second major threat to Maybelline could be a change in the market demand.

A potential change in market demand is a potential threat to Maybelline. A change in

market demand would cause Maybelline to have to completely change its product,

which would take time and money.

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MARKETING OBJECTIVES
The cosmetics industry is a huge industry; Maybelline New York is a consumer

product division of the company L’Oreal. The L’Oreal group has regions in more than

150 countries in the world that are home to 283 branches. The company has more than

500 high-quality and popular brands of cosmetics. This displays how large the industry

is, with one company alone having over 500 popular brands of cosmetics. Maybelline’s

world market share is 7.4%. Maybelline’s top competitors globally, Avon and L’Oreal

Paris, hold 5.4% and 5.3% of the market, respectively.

For mascara specifically, Maybelline holds over 18.8% of the American market in

2014. This 18.8% market share comes from four major products: Volume Express

Falsies, Maybelline Great Lash, Volume Express Colossal, and Volume Express

Rocket. These products held 5.5%, 5.2%, 4.4%, and 3.7% of the market share,

respectively.

Maybelline is a subdivision of the cosmetic company, L’Oreal. L’Oreal had 28.49

billion dollars in global sales in 2013, which rose by 2.3% from the previous year. 4.80

billion dollars is operating profit, representing 16.9% of sales. L’Oreal does not release

individual sales statistics for many of its subdivisions, but has confirmed that the

Maybelline New York brand is one of the company’s high contributing brands. The

Maybelline brand is estimated to be worth 2,921 billion dollars.

L’Oreal had an estimated total assets of 38.8 billion dollars in 2013. With a profit

of 4.8 billion dollars, that results in an ROI of roughly 12.4% for 2013.

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Marketing Strategies
Segmentation

Maybelline New York is a brand owned by the company L’Oreal. L’Oreal is the

world’s largest cosmetic and beauty company. The L’Oreal group has regions in more

than 150 countries in the world that are home to 283 branches. The company has more

than 500 high-quality and popular brands of cosmetics. Some of L’Oreal’s most popular

brands are Ralph Lauren, L’Oreal Paris, Garnier, Essie, and, of course, Maybelline New

York. Maybelline New York has many product lines within the brand. Products are

segmented by usages by the feature they are used are, including lips, eyes, face, and

nails. They are then further segmented into make-up type. For example, eye products

are further segmented into brow, eye shadow, eye liner, and mascara. They are lastly

segmented by the specific feature of the product. For example, mascaras are

segmented into different categories that reflect their benefits. Such benefits may be

longer or thicker lashes, waterproof, or anti-clump.

Target Customer

Maybelline’s target market includes young women between the ages of 16 and

25. This encompasses women of all backgrounds, including African American, White,

Hispanic, and Asian. When marketing to people of this target market, social media is

very important. Maybelline understands this need to be active on social media.

Maybelline does a great job of targeting its customers through social media outlets.

Maybelline has nearly 5 million Likes on Facebook, and over 100,000 followers on

twitter. Maybelline has great success on social media due to interaction with consumers.

Maybelline posts to social media networks daily, including posts that ask for consumer

opinions, offer sweepstakes, introduce new products, and make other announcements.

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Differentiation

Maybelline has great product differentiation. One way that Maybelline

differentiates its products is through the use of various graphics, guides, and point of

purchase displays. For example, in the aisle of retail stores that sell Maybelline

products, there is a line-up of images of what each type of mascara has to offer. These

images displays the unique aspects of each mascara, such as displaying which

mascaras give lashes the most volume or the most length. Customers are more willing

to purchase a product when the benefits of the product are directly displayed to them.

Maybelline also has product differentiation due to the great quality of the brand.

Maybelline products are priced at convenient prices, but that alone is not enough. Value

and quality are both important factors to sell a product. Maybelline has very consistent

high quality. This high quality helps to maintain loyal customers, as well as attract new

customers.

Positioning

One important positioning strategy that Maybelline utilizes its pricing strategies.

Maybelline’s products are inexpensive and affordable for the everyday consumer.

Maybelline’s products are used by makeup professionals worldwide for models and

celebrities in magazines, music videos, ad campaigns, and especially fashion shows.

Maybelline is also known for being the official sponsor of New York Fashion Week. Their

worldwide popularity with other well-known companies, celebrities, and media sources

would make anyone assume that Maybelline products would be expensive, but

Maybelline is actually extremely affordable.

Another positioning tool that Maybelline uses is promoting ethical choices and

being social responsibility. This position creates a positive image to the public.

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Maybelline has also made various efforts to give back to its consumers and the

community. Maybelline teamed up with PEOPLE and Essence magazines, in search of

ten women who have made a difference in their communities through education. The

ten women were then granted $10,000 each to give to their chosen educational

program or institution. They were also featured in PEOPLE and Essence magazines

along with a picture and their story.

4 P’s
Product
The product is Maybelline New York mascara. Maybelline’s superior brush

technology and innovative formulas let you create whatever lash look you prefer. There

are different formulas, from lengthening and volumizing, to curl and definition.

Maybelline lets the consumer customize their look, with not only various formulas for

different looks, but also other benefits and features. Such benefits and features may

include different colors options, or waterproof formulas.

Price

Maybelline targets the middle class with reasonable prices. Maybelline sits

between budget brands, such as Elle 18 and Street wear, and premium brands, such as

Revlon, L’Oreal, and Lakme. Maybelline maintains a premium imagery at a lower price

point than imported brands, maintaining the perception of high quality product at a low

price. For mascara, Maybelline has a large price range depending on the benefits and

features of the specific mascara. Maybelline mascara can be priced anywhere between

$4.00 and $15.00, depending on the purpose and quality. The average is around $6.00 -

$7.00, which is midrange for mascara prices.

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Place

Maybelline uses selective distribution, using only some of the available outlets in

an area to distribute a product. Maybelline uses retailers such as drugstores, discount

stores, supermarkets, and cosmetic specialty stores to sell product. Maybelline also

sells directly through its own website.

Promotion

Maybelline uses a variety of sales promotion and advertising methods. One

promotional method that Maybelline uses is consumer sales promotion methods. These

include coupons, which reduce a product’s price, and sweepstakes, where entrants

submit their name for inclusion in a drawing for prizes. Maybelline also uses such point-

of-purchase materials as in-store displays, product testers, and informational brochures

Maybelline also holds consumer contests and provides scholarships.

Another form of promotion that Maybelline utilizes media advertising. Maybelline

relies heavily on online advertising. Maybelline mostly advertises through the brand

website and social media, including twitter and Facebook. Maybelline also advertises in

other forms of media, using methods such as TV advertisements. Maybelline’s major

spokesperson is Sarah Michelle Geller. Maybelline uses its slogan, “Maybe she’s born

with it. Maybe it’s Maybelline!” in all of its advertisements in order to promote brand

recognition. Another large promotional tool that Maybelline uses is co-marketing.

Maybelline markets with large companies such as Apple and MTV in order to create a

favorable brand image.

USP/Key Message to Deliver to the Customer

Maybelline New York has the unique selling point of accessible luxury cosmetics.

Maybelline New York promises to produce scientifically-advanced formulas,

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revolutionary textures, and trendsetting shades effortlessly, affordably, and beautifully.

Maybelline strives to produce a product that meets these standards, yet is affordable to

purchase. A unique feature of the Maybelline brand is the natural look that is associated

with most of the brand’s products. Maybelline uses this popular feature to deliver an

important message to the customer: Maybelline products can help consumers to

enhance their preexisting natural beauty. Maybelline delivers this message through the

brand’s slogan: “Maybe she’s born with it. Maybe its Maybelline.”

Value to the Customer

Maybelline New York uses its unique selling point to add value for the customers.

There are many other high-quality makeup brands in the cosmetic industry, and there

are many cheap makeup brands in the industry as well. How Maybelline New York adds

value for the consumer is by offering such high quality products at such an affordable

price. The brand also adds value for the customer by making the consumer feel good

about buying Maybelline products. The company does so through its positive ethical and

social behavior as described previously in the play. One example of making the

customer feel good while obtaining good public relations is hiring every day women of

different backgrounds to participate in advertisements and campaigns. Maybelline also

gives customers positive feelings through the Maybelline slogan. This slogan promotes

the idea that Maybelline users wear Maybelline products to enhance their natural

beauty, rather than because they need makeup.

IMC Plan
Maybelline hired an advertising agency, Gotham Inc. to aid the company in creating a

campaign to gain a competitive edge over Maybelline’s long time competitors, Cover Girl and

Revlon. The company came up with a campaign utilizing media and the celebrity Sarah Michelle

Geller to create brand recognition. There in an included IMC that divulges more details of the
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campaign. Maybelline launched its “Maybe she’s born with it. Maybe its Maybelline.” Campaign

with three goals in mind. Two goals are related to mascara and target market provided in this

plan, those two goals are:

1. Increase the brand's penetration among teens and women 18 to 24. This age group was seen

as trend-setting and opinion-leading in beauty, style, and fashion.

2. Maintain the brand's historical strength in Eyes. In this segment, Maybelline already

dominated. It enjoyed a heritage of innovation in mascara, where its Great Lash had been the

leader for almost 30 years.

Effective Use of IMC Action Plan

The company followed all strategies set up by Gotham Inc. This effectively created an increase

in sales, market share, and brand recognition, making Maybelline the number one cosmetic

brand in America. The use of Sarah Michelle Gellar, and the new slogan, “Maybe she’s born

with it. Maybe its Maybelline.” proved to be extremely successful marketing tools when used

well. The results of the campaign can be found in following sections.

Implementation Plan
The idea is that the target market, young women, make purchasing decisions, even in

such an image-driven category as cosmetics, based not on emotion but on reason. The focus

was positioning Maybelline as a lifestyle cosmetic brand. The rationale was that it offered

products that fit seamlessly into today's demanding lives. Advertising would tap into relevant

issues concerning lifestyle, addressing the various needs of the brand's broad target audience,

as it delivered functional information.

Specifically, the advertising would concentrate on key products that were appropriate for

younger women. The mascara specific one was a new product: Full n Soft Mascara, the first

mascara that magnified lashes while leaving them soft and pliant.

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The plan was to find the right celebrity "face" that would make younger women aspire to

the brand, attracting them to products that, given the targets' lifestyles and stage of life, made

sense. That celebrity was actress Sarah Michelle Gellar. Younger women admired her for her

movie roles and hit television show, "Buffy the Vampire Slayer." Wrapping her performance

message in aspirational imagery, she could give Maybelline a desperately needed coolness

quotient.

The company would use PR, POP, sponsorships, and sweepstakes to meet its objectives. Along

with the media plan came several special programs, including: Introduction of Sarah Michelle

Gellar as the new "face" of Maybelline, along with several new products, all included in a

comprehensive public-relations program that ranged from extensive publicity to special events.

The company would use a sweepstakes to select "The Maybelline 5"-a representative

group of five young women who are teens and college-age who would represent the website,

and sponsorship of such events as the "Divas" special on cable channel VH1 and Teen

Magazine's search for models.

Lastly, the company would use such point-of-purchase materials as in-store displays,

product testers, and informational brochures, as well as use in-magazine couponing, to pull

traffic into stores.

The media strategy was basic: Schedule such a pervasive media presence that younger

women could not ignore. The budget to do it for media alone was $100 million. With that

expenditure, Maybelline dominated the category, using any vehicle necessary, including

internet, television, and print. National TV took the bulk of the spending. The print sources used

included Glamour, Cosmopolitan, and Seventeen for their broad reach, plus such books as

Style and Teen People for their ability to build some buzz. Then there was the Internet. It joined

the media mix to help the campaign extend its reach among younger women. To drive traffic to

www.Maybelline.com, banner advertising was placed on numbers of cutting-edge sites skewed

to younger women.

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Measurement Process
The company measured the success of the campaign by comparing market shares to previous

years, comparing product sales to previous years, and comparing sales and market share with

other competitors in the cosmetics industry. The number that resulted from the campaign can be

found in the next section.

Overall Effectiveness
Maybelline had amazing results from this plan. Maybelline successfully achieved all its

campaign objectives. In dollar volume, Maybelline became the number-one cosmetics brand in

the U.S. mass market, gaining category leadership in the four-week period that ended that year,

and holding the position ever since. With category growth rising some 5 percent, Maybelline

growth was 11 percent.

Objective 1: Increase the brand's penetration among teens and women 18 to 24. Data

shows that overall penetration among teens rose 20 percent. Penetration for specific products

includes product percentage increases of 12% for mascara. Younger women found the

advertising compelling. In addition, Maybelline enjoyed substantial gains in image, enhancing

brand awareness and perceptions. Among women aged 14 to 24, top-of-mind awareness rose

33 percent from February to November 1999. And brand perceptions improved significantly.

Objective 2 Maintain the brand's historical strength in Eyes. Maybelline's total volume

(mascara, eye shadow, and eyeliner) rose 16 percent, while the category grew only 6 percent.

And mascara only? Maybelline volume climbed 19 percent, against category growth of 4

percent.

And Sarah Michelle Gellar? Within two months of her first appearance in Maybelline

advertising, she was strongly associated with the brand. Among women 14 to 24, awareness of

her as the Maybelline "face" was 46 percent, more than four times the awareness level reached

by the previous Maybelline "face."

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Altogether, client and agency had proved that effective advertising can not only improve

brand perceptions and introduce new products in the highly competitive cosmetics market but

can leverage a specific age group to take the brand to position number one.

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Resources
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http://fashionbi.com/brands/maybelline/financials
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