Why does Maybelline need to strengthen itself in the “face segment”? Given that Maybelline was number one in the mass-cosmetics industry, do you agree with Victor Wosk’s statement that “
…in order to have a successful cosmetics company, you have to have a foothold in foundation”? Why or why not?
Wosk raises a valid point in his statement. Industry statistics show that face products are the most popular with a 35% stake. Foundation accounts for 57% of these sales. This indicates how important the foundation is to the customer. The fact that Maybelline foundation sales constitute only 10% of its total sales is a matter of concern. However, it also indicates that the company has the potential to grow into this market.
Foundation is a special product for several reasons. First, its sales price is higher than most other cosmetics. This means that the more foundation a cosmetics company sells, the higher its sales revenues. Currently, the company focuses on eye products which constitute 29% of its sales. If the unit sales in the foundation were to increase, then sales revenue would greatly increase.
Foundation users exhibit strong brand loyalty. This is good for any cosmetics company because it is easier to maintain an old customer than to gain a new one. Women find it difficult to change foundation brands because they come in different shades. Every woman has a suitable shade for her skin. Once a woman discovers which shade looks best on her, she tends to stick with the brand for an average of 10 to 15 years. This means that revenue from loyal foundation users is almost always constant. Loyal customers keep a company in business. This is the major reason why a successful cosmetics company must have its foot in the foundation business.
What marketing strategy would you recommend for Maybelline in the foundation market? Why?
Maybelline should use a product development strategy. This should focus on the teens who already use the Wet Lip Shine Colour. Many teenagers have self-esteem problems because of acne. Maybelline should focus on creating a product that conceals the pimples and blackheads. This product should also be safe for teens to use.
The company could then launch a campaign that focuses on improving self-confidence using this Maybelline product. It can then cross-sell the product to the teen lip and eye products customers. This product will enable it to capture teens before they become heavy foundation users. Once they become loyal, they can grow into Maybelline foundations. This strategy is bound to be effective since it focuses on a growing female population. It will also secure Maybelline’s future market.
Market development is also another option. The company can aim to increase its overseas sales rather than focusing on Americans. As previously stated, it would be difficult to shift the loyalties of current foundation users. Maybelline can focus on the growing markets in Africa and Asia. These are areas where cosmetic use is just becoming popular. Entering the market before its competitors will enable Maybelline to create brand loyalty early. With globalization, the company can now source cheaper raw materials or even outsource production of the make-up for export.
Maybelline should avoid expending its resources on the “mature adult market”. The previous products launched for this market have failed miserably. This is mostly due to the loyalty factor. The company should accept that other firms dominate these sectors then focus on creating a niche for itself elsewhere.