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Maybelline entry into india
Kelompok 4Endang Karismawati 11P2309
Tritunggal 11P2165Suryo Purnomo PH 11/327580/PEK/16991
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India Cosmetic market overview
Indian Cosmetic Sector Analysis 2009-2012 :
Annual rate 2011- 2014 18 % market size $ 3
billion
Dominated multinational co (unilever &
revlon)
classified as skin care products, hair careproducts, makeup products, perfumes and
others.
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Profile of Maybelline
T.L.Williams founded the Maybelline company in1915 and introduced Maybelline Cake Mascara.
In February,1996, Maybelline was acquired byLOreal USA, Inc., a leader in the mass-market color
cosmetics business.Maybelline creates seasonal color stories withproducts in the seasons hottest shades.
The Maybelline image is hip, intelligent, stylish and
charming.Maybelline has the top research and developmentteams and resources through their parent companyLOreal.
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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 foreignmarkets.
To differentiate its product from local and
other competitors.
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Low prices due to low cost of production.
Quality product as premium withaffordable price
More product and color variety.
Strong market penetration
The Competitive Advantages
Maybelline
http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=LS-7ivs13USx1M&tbnid=2xM8xzxeSfGTeM:&ved=0CAUQjRw&url=http://infobharti.com/india-information/maybelline-cosmetics.php&ei=pBDHUcfHEIv_rAfX5oHYBQ&psig=AFQjCNEk4cyJaRipyb3qbSCm3V-OgvjoCQ&ust=1372086787084081http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=LS-7ivs13USx1M&tbnid=2xM8xzxeSfGTeM:&ved=0CAUQjRw&url=http://www.bangalorebest.com/lifestyle-fashion/articles/Top-10-Cosmetic-Brands-In-India.asp&ei=iBDHUfqRJs7QrQeLhID4AQ&psig=AFQjCNEk4cyJaRipyb3qbSCm3V-OgvjoCQ&ust=1372086787084081 -
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SWOT ANALYSIS
Maybelline
Strengths Weaknesses
-New, very modern product
-Wide selection of products
-Products are of very high quality even
though offered at a very low price
compared to other brands.-Attractive all-American style
-Eye catching packages
-Made to fit seasonal conditions
-Competitive price-Low-cost production
-Online services plus catalogue
-Wide distributions channels
-Naturalness
-Intense colors
-Average profit margins
-Sales going through independentretailers
-TV requires high budget
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SWOT ANALYSIS
Maybelline
Opportunities Threats
-State-of-the art research center
-Using know-how from LOreal
group
- Increasing middle class population& modern life style
-People are afraid to follow the
latest fashion
-High-tech competitors factories
-High resistance for vivid colors in
cosmetics in rural areas
-Competitors offering a variety of
cosmetics
-Wide range of substitutes
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SHARE OF PLAYERS
BrandValue (%) Volume (%)
2010 2011 2010 2011
Lakme 22.5 17.7 3.7 2.6
Elle 18 10 11.3 5.4 5.1
Revlon 6.5 4.2 1.1 0.7
Maybe
lline2.1 2.5 0.3 0.3
Street
Wear1.4 1.1 0.3 0.4
L'Oreal 1.0 0.4 0.1 0.0
Source: Nielsen; Data for All India Urban for
categories lips plus nails in traditional trade
SHARE OF PLAYERS IN THE MARKET
Maybellines two main competitors
in India are : Unilever ( Lakme) and
Revlon
Maybelline is actually number two if
modern trade is also taken into
account.
Nielsen does not track modern trade
nor does it cover face and eyes, which
are big make-up categories
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Identifying Market Segments
Psychographic
Variables
Geographic
VariablesDemographic
Variables
India population
45 % : < 25 thn
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Market segmentation
Maybelline
Maybelline target segment is16-35 year old female at massmarket.
Urban area
Maybelline is a moderncontemporary brand for allwomen and all races.
Different versions of productsare produced for eachcountry
http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=_7X4H6u-2s932M&tbnid=arP3DFVJaXigjM:&ved=0CAUQjRw&url=http://mccannlondon.co.uk/colossal-cat-eyes/&ei=nijpUfSoIoTsrAejm4CABg&bvm=bv.49478099,d.bmk&psig=AFQjCNGrnyE75r0fHcbzjIoYvkv8g26-Xw&ust=1374320512044282http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=_7X4H6u-2s932M&tbnid=arP3DFVJaXigjM:&ved=0CAUQjRw&url=http://mccannlondon.co.uk/colossal-cat-eyes/&ei=nijpUfSoIoTsrAejm4CABg&bvm=bv.49478099,d.bmk&psig=AFQjCNGrnyE75r0fHcbzjIoYvkv8g26-Xw&ust=1374320512044282 -
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CONSUMER PROFILE
Maybelline are banking on the aspirations of middle class Indians with products
that are international in appeal and reasonable in price.Maybelline is is positioned as the leader of mass-market cosmetics at a reasonable
price. It is globally branded with the Urban American Chic Image.
Maybellinesmarket is primarily divided into three segments:
Youngster : 16-25 years
Office Lady : 26-25 years
Career Women: 35 years Above
The Maybelline girl is full of fun, very spirited, optimistic, unpredictable, confident.
She is 16-25 years old and already so aware. They have their FB, Twitter, BlackBerry
Phones and are so connected.
http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=94aJle48Cw6aIM&tbnid=obV6nLvvJv9HOM:&ved=0CAUQjRw&url=http://gatheringbooks.wordpress.com/2011/03/31/anita-desais-fasting-feasting/&ei=IyLHUemNO8HVrQessoCwAw&psig=AFQjCNFxN1WuQdxyj6fmph3SD8miAD72Rg&ust=1372091282548023 -
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Consumen Behavior
http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=18TRAcl24X8vzM&tbnid=GLE22rS9W0nAnM:&ved=0CAUQjRw&url=http://www.stylecraze.com/articles/best-maybelline-products-available-in-india-our-top-10/&ei=jvTGUbyRNs_nrAeh-oHwCg&bvm=bv.48293060,d.bmk&psig=AFQjCNGN2h5YLfpegZ5WS8EzMHiHHeqUdQ&ust=1372079614563591 -
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Marketing MixThe Four Ps
(Distribution)
roduct
ricing
romotion
lace
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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
https://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=47l9G8UycaIrMM&tbnid=82cY0kcuhWoo8M:&ved=0CAUQjRw&url=https://www.facebook.com/sensationalmaybelline&ei=tBfHUa-qI4yVrAfih4GoBQ&psig=AFQjCNEivskFpVAmL2qXFKjqO-b3br-CWQ&ust=1372086563552262http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=zQVOm5UfEsUFRM&tbnid=7x6DOD0SRtUW4M:&ved=0CAUQjRw&url=http://makeupandbeauty.com/maybelline/&ei=yxbHUYy3M4m3rAfKgIHgBQ&psig=AFQjCNFp2AtZOGaocqFtspD09b0ZOaHAtw&ust=1372088350504634 -
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Maybelline marketing mix
Price
Very competitive price
Low-cost production
Benefits from economies ofscale
Pricing up to local
purchasing power rate
http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=wqmweWnXhWGfZM&tbnid=u7pHEBBvHprzXM:&ved=0CAUQjRw&url=http://www.polyvore.com/sarah_michelle_gellar_magazine_cover/thing?id=38820738&ei=yPPGUc64HInBrAfT-YGQDA&psig=AFQjCNH16ADbm-mvx9zt7zCZD8YtKeoB1g&ust=1372079225492343 -
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Maybelline marketing mix
Promotion
Women are sensitive to advertising
TV spots are the best way to targetmass audience on channels like StarPlus, Sony, MTV etc
Ads are printed in Indian editions ofElle, Cosmopolitan, and Femina
Comparative advertising.
Maybellines viral route (DIGITAL isthe main medium): recently launchedthe campaign Dare to go Nude this
summer. Maybelline wanted toeducate its consumers about the BBor Bright Benefit Clear Glow Cream,the campaign was a huge success onfacebook and twitter
http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=1iCuRFL0hYquGM&tbnid=wNS1hqcg4MUztM:&ved=0CAUQjRw&url=http://www.polyvore.com/sarah_michelle_gellar_magazine_cover/thing?id=38820610&ei=TvPGUZONDdHtrQf45YDQDw&psig=AFQjCNH16ADbm-mvx9zt7zCZD8YtKeoB1g&ust=1372079225492343http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Z6FzuJpMCNGHhM&tbnid=8tOKgG4cYaJ27M:&ved=0CAUQjRw&url=http://fashiongonerogue.com/christy-turlington-elle-france-december-2010-mark-seliger/&ei=g_LGUcf2JoeGrQenzoHgDQ&psig=AFQjCNH-WUymrJwD5ikjWn0OUFzCrd1GdQ&ust=1372078992115966 -
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Globally, Maybelline has been heavily promoting its trendy New York image The American image in India was found to have a positive effect.
Maybelline has continued with the same global branding in India
using supermodel Christy Turlington and Sarah MichelleGellar to promote
its products.
Local brand is endorsed by Deepika Padukone It has an appealing taglineMaybe shesborn with it. Maybe itsMaybelline to connect with young
customers.
Maybelline marketing mixPromotion
http://www.google.co.id/url?sa=i&source=images&cd=&cad=rja&docid=Wj8DAOQnQB38BM&tbnid=GjXximgoElyQyM:&ved=0CAgQjRwwAA&url=http://thehighlow.com/2011/07/uk-bans-overly-retouched-poorly-defended-loreal-ads/&ei=QfHGUcm4MIz9rAe_uIHAAg&psig=AFQjCNF319dZZYfGQgWuqzrqix3tfLc_5g&ust=1372078785898516 -
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Maybelline marketing mix
Distribution (place)
Wide distributions channels in more than 70 countries worldwide
Chanel distribution :
Prestice : Chain Departement Stores, beauty stores
Broad : drug store, food store, mass merchandiser, cosmetics
discounters, warehouse clubs
Alternative : Direct sales, salons, health food store, retail/free
standing store
http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=D7D8NZ8_2Hi1wM&tbnid=Q3nPUeiLPFZZ9M:&ved=0CAUQjRw&url=http://infobharti.com/india-information/westside.php&ei=dfjGUeKkJ8_orQe6j4DoCQ&psig=AFQjCNGqUGjpBTdApBSuzzWKX3M0shcV7w&ust=1372080527105465http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Uzl19c7dIEjJWM&tbnid=rOAZgI6kL74VeM:&ved=0CAUQjRw&url=http://serenadeofserena.blogspot.com/2009_11_01_archive.html&ei=Y_XGUb6wOsjyrQfBtYGgCg&bvm=bv.48293060,d.bmk&psig=AFQjCNGN2h5YLfpegZ5WS8EzMHiHHeqUdQ&ust=1372079614563591http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Uzl19c7dIEjJWM&tbnid=rOAZgI6kL74VeM:&ved=0CAUQjRw&url=http://animetric.blogspot.com/2012_08_01_archive.html&ei=L_XGUZ26EYGGrQfu-IHQCQ&bvm=bv.48293060,d.bmk&psig=AFQjCNGN2h5YLfpegZ5WS8EzMHiHHeqUdQ&ust=1372079614563591 -
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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 additionalproducts with natural claims
Widen color range (lipstick, nails,eye color, base make up ) tomatch indian skin tone
To increase availability of its products and find newdistribution channels
Lowering the price to gain attention of potential customerswho are price sensitive
Increasing Brand awareness with Integrated Promotion ATL &BTL
Increasing engagement between brand & customer
Improve skill & knowledge of Human resourch (Beautyadvisor/ counsultant