Maybelline entry into india

Kelompok 4 Endang Karismawati 11P2309 Tritunggal 11P2165 Suryo Purnomo PH 11/327580/PEK/16991

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 care products, makeup products, perfumes and others.

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.

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.

The Competitive Advantages Maybelline

Low prices due to low cost of production.
Quality product as premium with affordable price More product and color variety.

Strong market penetration

SWOT ANALYSIS Maybelline

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

-Low-cost production
-Online services plus catalogue -Wide distributions channels

SWOT ANALYSIS Maybelline

Opportunities -State-of-the art research center -Using know-how from LOreal group Threats -People are afraid to follow the latest fashion -High-tech competitors factories

- Increasing middle class population & modern life style -High resistance for vivid colors in cosmetics in rural areas -Competitors offering a variety of cosmetics

-Wide range of substitutes

SHARE OF PLAYERS IN THE MARKET

SHARE OF PLAYERS Brand Lakme Elle 18 Revlon Maybe lline Street Wear L'Oreal

Value (%)
2010 22.5 10 6.5 2.1 1.4 1.0 2011 17.7 11.3 4.2 2.5 1.1 0.4

Volume (%)
2010 3.7 5.4 1.1 0.3 0.3 0.1 2011 2.6 5.1 0.7 0.3 0.4 0.0

Maybellines two main competitors in India are : Unilever ( Lakme) and Revlon

Source: Nielsen; Data for All India Urban for categories lips plus nails in traditional trade

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

Identifying Market Segments

India population 45 % : < 25 thn

Geographic Variables

Demographic Variables

Psychographic Variables

Market segmentation Maybelline

Maybelline target segment is 16-35 year old female at mass market. Urban area Maybelline is a modern contemporary brand for all women and all races. Different versions of products are produced for each country

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. Maybellines market 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.

Consumen Behavior

Marketing Mix
The Four Ps

roduct ricing

lace
(Distribution)

romotion

Maybelline marketing mix Product

New, very modern product Wide selection of products Eye catching packages Made to fit seasonal conditions Meets individual market requirements

Maybelline marketing mix Price

Very competitive price Low-cost production Benefits from economies of scale Pricing up to local purchasing power rate

Maybelline marketing mix Promotion

Women are sensitive to advertising TV spots are the best way to target mass audience on channels like Star Plus, Sony, MTV etc Ads are printed in Indian editions of Elle, Cosmopolitan, and Femina Comparative advertising. Maybellines viral route (DIGITAL is the main medium): recently launched the campaign Dare to go Nude this summer. Maybelline wanted to educate its consumers about the BB or Bright Benefit Clear Glow Cream, the campaign was a huge success on facebook and twitter

Maybelline marketing mix Promotion

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 tagline Maybe shes born with it. Maybe its Maybelline to connect with young customers.

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

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 with natural claims Widen color range (lipstick, nails,eye color, base make up ) to match indian skin tone To increase availability of its products and find new distribution channels Lowering the price to gain attention of potential customers who are price sensitive Increasing Brand awareness with Integrated Promotion ATL & BTL Increasing engagement between brand & customer Improve skill & knowledge of Human resourch (Beauty advisor/ counsultant