1. Innovative and novel products in eye segment. Only based on good quality product a company can build its reputation. If product itself is not good whole lot promotion won’t help company build their brand.
2. Highest marketing and promotion spend to bring their products in consideration and choice set so that they gain market share. In mass market it’s very important for any brand to be in consideration set of the consumers to make sure that it has some market share.
3. Seasonal coloring based promotion helped them gain excitement in consumers. Advertising which brings excitement in consumers also makes consumers try the brand.
4. Consumers feel its quality, easy to shop and easy to use brand. This is the plus for any brand.
5. Huge and loyal consumer base for the Maybelline is biggest strength. As their cross buying behavior may help to build face segment.
Q.2 Benefits and hurdles of transferring success from eye to other:
1. They have highest marketing share in eye segment. If they attach product from face or lip with eye product then it may be able to penetrate other segment. Particularly great lash users who are very loyal to the brand.
2. As eye and lip products both are meant to be noticed and related to style and fun, packaging and promoting both of them together will add value to the company.
1. Cross-usage is highest in this category
2. This segment and lip segment consumers are from different ages so attaching these together will not give great results. Rather than this attaching foundation product with eye product will give great results and share gain.
3. Given the quality of their eye segment products they have to be up to the mark in their other segments also. As their foundation product was discontinued due to bad quality and which used to separate in pack.
4. As their SRP in eye segment is lower than market consumers also may want the same in other segments of the same company.
5. Eye products induct style and fun which might not help face products as they are not seen as same way by consumers.
Q. 3 Critique on past three attempts to enter foundation market:
1. As industry prices remained flat for face products Maybelline increased the prices by over 10% which is very bad move when you are not market leader. Price of a product is the last thing you should touch.
2. Discontinuation of advertisement for EMU after 2000 did not help company as market share fall for Express Makeup. As teen girls was major market for this brand which is very tech savvy and media oriented, continuous tv, print and email media exposure was needed to build its image.
3. Quality of Nonstop All Day Wear was pretty bad for transparent packaging which hampered Maybelline brand image.
4. Launch times of the Nonstop and EMU brands were in middle of year which generally not suitable for new entry. While their Revlon introduced Age Defying line at start of year which was plus for them.
5. In extension of of EMU brand Maybelline did not introduced different skin shades but they introduced shine range in growing brand which has only importance of 34% while shades have 89% i.e highest in the need.
6. Improper segmentation strategies were followed as they discontinued revitalizing brand which were addressing older woman. As this segment was having highest growth in using cosmetics over 23%. They should be having different products for different segments. Each product having product endorsers of age similar to segment age.
7. For each entry extensive media and promotional activities were carried out only till five weeks which is very less period for a product which is purchased only thrice in a year. They followed up it after 4-5 months.
8. Expectations from foundation segment to succeed were similar to other segments from other management which is not fair. As foundation is different segment with different needs, buying behavior and consumers.
Q. 4 Evaluation of opportunities Victor was considering
Major emphasize on
a. New products in Luminous (145% growth) as no Maybelline product line yet in this category
b. Extend product line Age minimizing (22% growth)
c. Product quality improvement in Long wearing and basic foundation (3% growth)
As Maybelline want to gain market share better strategy would be have more shades of one quality product in each segment with pricing below than competitors. With cross selling with their eye product line they can focus to older women segment which they did not previously.
Also tiny packaging which can provoke user of buying to try once will really help.
As foundation product line takes long time to create loyal customer segment its promotion has to be different than other segments.
Attaching tiny packages of foundation with eye segment of Maybelline would be great option to make consumers try new products of foundation segment.
Introducing new variants of those products within 6 months will add more awareness for older products.
Especially stores and mass merchandisers should be targeted as sales are growing in these channels. While big packages are good promotional tool for specialty stores while tiny for mass merchandiser.
3. Scheduling and Media:
First 4 weeks introductory TV prime time campaign with different age group stars. One with early twenty stars for teens and late thirty star for older group.
This can be followed by tiny package attached with other Maybelline eye and lip segment’s bestselling brands like Mascara.
With continuing month heavy print, web and email marketing for more brand awareness for two months.
After four months again 2 weeks TV prime time campaign. This cycle can continue for two years as brand builds.
4. Ability to provide better decision making in-store:
Making all the shades available to tryout in retail outlets will bring in more consumers to try for Maybelline foundation products.
A very different promotional campaign like allowing 5 different colored woman showing Maybelline foundation on their face blending perfectly can help. They can offer free foundation to all women in retail stores to apply their foundation samples and talk about it will be very innovative.
Giving nice discounts and packaging to specialty stores can bring nice publicity for the brand.