Look carefully at the history of Maybelline as recounted in the case. What strengths are key to their past successes, both within and outside of the foundations market?
The success of Maybelline Inc. draws its strengths from the origin of the company. This is after the inventor of the business, pharmacist Thomas L. Williams, invented the first product that successfully enhanced the looks of his sister, Mabel. Thomas mixed carbon dust and Vaseline and he came up with the first Mascara. This product enabled Mabel to get her dream man. Thomas then embarked on a serious mission of product development and customer satisfaction.
This strategy has been one of the key cornerstones of the success of Maybelline Inc. Following its acquisition by L’Oreal, Maybelline Inc. underwent significant transformations that have revolutionized the cosmetics industry. The success of Maybelline Inc is attributed to the emphasis on color and its commencement on advertisement spending. The company has led the park in the cosmetics industry in the US due to its serious marketing. The company led the industry in advertising in 2000 after spending close to $106 million on advertisements alone.
Media advertising contributed to the enactment of Maybelline’s slogan ‘maybe she is born with it…maybe its Maybelline’s’. The advertisements resonated well with the industry’s main targets, women. Women embraced the slogan because it depicted natural products and those that make one beautiful. This made Maybelline a brand that is easy and quick to shop for among women, and has a good selection of fashionable colors. Also, the company successfully used thematic color promotions, which provided news value, and consumer and trade excitement. L’Oreal brought t in-depth knowledge of market segmentation, targeting, and positioning.
Besides, Maybelline Inc. utilizes strategic marketing management, customer profiling, and analyzing the market and competitive space. Besides, the company has the good market knowledge and has kept useful customer profiles.
What the benefits and hurdles involved in transferring success in the eye segment to other segments?
Maybelline Inc. is renowned for its quality products in the eye segment. This gives it an edge over the rest because, in the consumers’ domain, Maybelline is known to produce quality products. As a result, transferring the success gained in the eye segment to other segments is going to be boosted by this factor. However, the cosmetics industry has different segments and each segment has different needs. For example, the foundation category is extremely complex.
It requires easily adaptable products and those that meet the expectations of the consumers. For that matter, it is important to understand market needs before transferring the success gained in the eye segment to other segments. Once the needs have been identified, Maybelline should develop products that address those needs for it to realize success in other segments. Also, the marketing rationale used in the eye segment might not be readily accepted by consumers in the other segments.
Therefore, Maybelline should come up with sound marketing strategies that will enhance the popularity of their products in other segments other than the eye segment. Another hurdle that the Maybelline is likely to face as it thinks of transferring success made in the eye segment to the other segments is brand loyalty. Some competitor products in the other segments have gained customer loyalty. Maybelline has to market its brands and convince consumers that the company has better alternatives.
How would you critique the company’s past attempts to enter the foundation category? Think about the products, their positioning, margin structures, and marketing support. What key learnings could you draw from Maybelline’s three recent launches and competitors’ activity in the market to strengthen the probability of success for future Maybelline efforts?
Owing to the loyalty factor, the foundation’s category is one of the toughest in the cosmetics industry. Loyalty is determined by two main factors: the price of the foundation and finding the foundation that matches the woman’s skin tone perfectly. Statistics indicate that 89 percent of women look for a foundation that has the perfect shade for their skin and one that blends evenly. Maybelline struggled in the past to enter the foundation category because it did not put into consideration the aforementioned factors.
Customers need to test cosmetics before purchasing them. Research has shown that many customers would buy prestige brands, despite their high prices, simply because they could test the products at the department store counters. Consequently, once a customer found a product and a shade that she liked, it is difficult to switch to another brand. Loyal customers stay with their manufacturer for close to ten years simply because they are comfortable with the brands they used. Maybelline Inc. ought to have used this strategy.
Maybelline Inc.’s foundation category initially lost the contest to its competition such as Neutrogena and cover girl since the former had a skin-clearing franchise while the latter had introduced tiny tries. Besides, Revlon introduced age-defying makeup, the main competitor of Maybelline’s revitalizing brand, which enhanced Revlon’s profits owing to the new market position they used. Although Revlon and Maybelline had the same product, Revlon succeeded due to the market positioning strategy they employed to market their brand. Owing to the hurdles Maybelline needs to allow customers to test the products at their counters.
This will enable the customers to locate their right shades and products and this is extremely vital in the development of customer loyalty. Also, to make a breakthrough in the foundation’s category, Maybelline ought to devise sound market positioning strategies, margin structures that are reliable and tailor-made marketing.
How would you evaluate the opportunities that Victor Wosk is considering? Combine and use these options, or your own to recommend potential next steps for the brand. Explain the rationale for your actions
Victor Wosk has sound suggestions and if they can be executed in the right manner, Maybelline is likely to become a market leader in all the segments of the cosmetics industry. First and foremost, Wosk’s suggestion to offer greater opportunities for customers to sample products is the right decision. As mentioned earlier, this strategy gives the consumers a chance to identify the right products and shade for themselves.
At long last, they are likely to become loyal customers once they locate their desired products. The idea of using different media and promotion scheduling techniques is also going to revolutionize the company’s marketing strategies. Work is also considering using the great lash package as a vehicle to promote foundations’ acceptance. Besides, Wosk is considering providing room for suggestions from customers while they are in-store or via direct mails. Again, this will broaden the interaction between the company and the consumers and this will go a long way in addressing customer needs.
In terms of technological advancement, Wosk is also on the right track. The introduction of luminous technologies, a new super moisturizing product, and a new transfer-proof foundation is going to give Maybelline Inc. a new look that will distinguish it from its main competitors.
By investing in research and development, Wosk is likely to address the needs raised by customers and challenge competitor products. The idea of producing tailor-made products for different target groups in the market is also thoughtful. By having different products for various groups, Maybelline will eventually find itself popular in all the consumer groups. Once it has dominated in all the targeted consumer groups, its main competitors will have a rough time displacing it.