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Maybelline Company Analysis Case Study


Strengths key to Maybelline’s past successes

Many factors contributed to Maybelline’s past successes; among these factors was the acquisition of the company by L’Oreal and the subsequent entry into the international market. This gave Maybelline a global brand, therefore, increasing its sales through entering new markets. Maybelline was able to gain a competitive advantage over its rivals.

Maybelline’s business processes and product development were also founded on an innovation culture and novelty. The company invested a lot in promoting its brands through allocating a lot of resources for advertising campaigns. In the cosmetic industry, Maybelline was the leading spender in advertising in 2000.

Through advertising, the company created brand awareness, which was considered valuable and of high quality. The success reaped from innovations spilled over, and the eye shadow and eyeliner became leading brands (Hennessy & Tybout 2004).

The company’s emphasis on color in their fashion and cosmetics was also another strength that helped the company to succeed as it created an impression of excellence to the consumers. Maybelline was, therefore, able to register success by employing thematic color promotions to attract and impress the consumers.

In addition, Maybelline has been able to blend diverse cultures in its products, thus catching many people with different incomes and from different cultures. This made the company become a global leader in almost every niche of the cosmetics industry (Hennessy & Tybout 2004).

Strategic Options for Maybelline

Goals 1: Maintaining a global brand

The challenge for the company is to strategize on maintaining the global brand to stay ahead of competitors seeking to globalize their brands. The major options that the company can utilize include utilizing the demographic characteristics to its benefit.

Competitive advantage

Individuals aged between 14 and 24 have been shown to be many. Maybelline could use this demographic feature to raise its market penetration because teens and ladies at that age are perceived to be the trendsetters in the industry. Since youths are more technologically oriented, the company could reach them by planning promotional campaigns using different media, especially those dominated by the teens.

As the population of women aged 45-64 is anticipated to grow immensely, the company could also develop products that cater for their physiological needs, hence increasing its market share. The company can utilize the demographic preferences to produce innovative products which are readily identifiable with the various age categories (Hennessy & Tybout 2004).

Goal 2: Market Expansion

Proper market positioning is also ideal as a strategy to expand the market.

Competitive advantage

Considering the rate at which products such as foundation are emerging, and the intense competition, Maybelline would succeed in widening its market share by repositioning itself well in the market.

Even though Maybelline was the first to introduce a product addressing the concerns of aging, poor positioning was the main reason Revlon defeated Maybelline to be the market leader through its Age Defying Makeup (Hennessy & Tybout 2004). Maybelline could also invest more on product research and development as a strategy.

This will help the company to be ahead of the competition. Continued innovation and integration of technology in product design will help in production of brands with beneficial ingredients, thus increasing the performance of the products.

Goal 3: Strengthening Market Presence

Maybelline could also use cross marketing opportunities to strengthen its presence in the market.

Competitive advantage

Given the market share held by brands such as Great Lash and the loyalty of consumers to this brand, the company can strategize on penetrating this market so that it can expand its market.

Being a market leader in eye beautification cosmetics, Maybelline could take advantage of this strength to enhance the brand’s face and color products so as to be at level with competitors like Cover Girl and Revlon. This strategy will help the company to close the gap with its competitors, particularly in the foundation business which is dominated by Revlon (Hennessy & Tybout 2004).

Reference List

Hennessy, J & Tybout, A 2004, Maybelline Inc.: About face, Kellogg School of Management, Northwestern University.

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IvyPanda. (2019, June 27). Maybelline Company Analysis. Retrieved from https://ivypanda.com/essays/maybelline-company-analysis/

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"Maybelline Company Analysis." IvyPanda, 27 June 2019, ivypanda.com/essays/maybelline-company-analysis/.

1. IvyPanda. "Maybelline Company Analysis." June 27, 2019. https://ivypanda.com/essays/maybelline-company-analysis/.


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IvyPanda. "Maybelline Company Analysis." June 27, 2019. https://ivypanda.com/essays/maybelline-company-analysis/.

References

IvyPanda. 2019. "Maybelline Company Analysis." June 27, 2019. https://ivypanda.com/essays/maybelline-company-analysis/.

References

IvyPanda. (2019) 'Maybelline Company Analysis'. 27 June.

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