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MAYBELLINE CLEAR SMOOTH FACE POWDER

Background Story
Months after the successful launching of Maybelline Clear Smooth Face Powder, Rose B.
Librieza, Coordinator of Marketing Operations, found herself reading survey results handed to
her by one of her staff. As of three weeks ago, there is still no substantial data that will tell
whether the Clear Smooth Face Powder is now the product leader in terms of its category in the
market so she had a survey done to evaluate product performance. The report (consisting of 25
respondents in a random sample, Exhibit 1) contains information that she would use to plan the
next steps the company needs to take to maximize the visibility of their product. Rose is
determined to take advantage of the fact that the market was very receptive to the launch. In
fact, the pressed powder easily became one of the brands best selling items. She is serious
about making Maybelline Clear Smooth Face Powder one of the leaders in the pressed powder
market.
A study that was done prior to the launch of the product indicated that pressed powders reflect
more than 80% market penetration, which means more than 80% of the respondents used a
pressed powder at least once in the year prior to the study. This shows that pressed powders
do have high usage in the country. Another study conducted during the product launch revealed
that more than 90% of the purchasers were very satisfied with the product and more than 90%
also had an intention to repurchase the productone of the highest repurchase intentions
Maybelline has seen in a product launch so far.
In terms of sell out, the product has been the main driver for the double digit growth in the
face category. Sales for this product increased despite the fact that it was not advertised in the
television. Due to these reasons, Rose carefully analyzes the results of the current survey on
her desk to draft a marketing strategy that will ensure increased market awareness of their
product, and thus, to have Maybelline Clear Smooth Face Powder achieve the status of being
the household brand when it comes to pressed face powders for teenagers and young
professionals.

The Company
In 1915, T.L. Williams (Thomas Williams) created the Maybelline Company, a family-owned
business. The company was named after his sister Maybel, who was very much in love with a
guy that didnt even gave a slightest hint that he liked her in return. T.L. then was inspired to
produce and sell an easy-to-use product to darken eyelashes, called the Mascara since hes a
chemist by profession.
In 1917, Maybelline launched its very first product, Maybelline Cake Mascara, the first modern
eye cosmetic for everyday use. Advertised and sold exclusively by mail, the mascara was
received so well by the general public that women start to ask for it in drugstores.
In 1930s, Maybelline expanded into eyebrow pencils and eye shadows.
In 1932, A 10-cent package of Maybelline mascara was created and distributed to drug and
variety stores, which significantly expanded Maybellines distribution from exclusively mail order
sales to retail outlets nationwide

In 1960s, It launched the Ultra Lash Mascara, a waterproof formula. A true breakthrough, Ultra
Lash is the first mass-marketed "automatic" mascara, meaning that the mascara is applied
directly to the brush in the tube.
In 1967, Plough Inc. acquires Maybelline.
In 1969, Maybelline USA executives moved into Ploughs headquarters in Memphis, Tennessee
and began to plan a state-of-the-art manufacturing and distribution facility.
In 1970s, Maybelline successfully branched out into additional cosmetic categories: face, lip and
nail.
In 1971, Plough Inc. became Schering-Plough Corporation. At the time of the sale, Maybelline
operated an assembly plant and warehouse in Alslip, Illinois. Also during that year, Great Lash,
a water-based mascara, is introduced and makes mascara history. Today, its still the numberone best-selling mascara in the marketplace, crossing a drugstore scanner every 1.5 seconds.
Its winning formula is closely guarded and its hip appeal is undeniable. A makeup artists
staple, this mascara is always in plain sight backstage at fashion shows.
In 1975, Maybelline opens a 300,000-square-foot plant in North Little Rock, Arkansas with
initial employment of about 350 people.
In 1983, It introduced the Shine Free Oil Control makeup line featuring non-comedogenic
formulas. One of the first lines designed exclusively for women with oily skin and an important
category for the company today. Skin looks fresh and natural all day; oil stays under control.
In 1990, Maybelline was acquired by the investor group Wasserstein Perella & Co.
In 1991, "Maybe shes born with it. Maybe its Maybelline" advertising tagline was created. Still
a great success for the brand today, this tagline continues to be recognized around the world
up to now.
In 1992, Maybelline successfully completed an initial public stock offering.
In 1996, LOral USA, Inc. acquired Maybelline. The company headquarters moved to New York
City. This new partnership empowered Maybelline to create the newest, most innovative
products with top research and development teams and resources. Maybelline was established
as a color authority and technologically advanced products became a company priority.
In 2000, Maybelline became the number one cosmetic brand in the USA.
In 2002, It introduced the Wet Shine Wet Look Lipcolor, which remained an international
bestseller today. Maybelline also became the number one cosmetic brand in the world.
In 2004, Maybelline officially became Maybelline New York, incorporating elements such as the
size, style, color and success that gave the city its cool, captivating flavor. This new attitude
and look combine state-of-the art technology and a keen eye on trends to produce accessible,
cutting-edge cosmetics with a cool, urban edge.
Today, Maybelline New York is the number one cosmetic brand globally and is available in over
90 countries worldwide. It combines technologically advanced formulations with on-trend
expertise to create accessible, high performance cosmetics and beautiful colors with a stylish,
urban edge. The products are carried in virtually every major U.S. mass-market retailer

including drugstores, discount stores, supermarkets and cosmetics specialty stores. The
manufacturing and distribution center has grown to roughly one million square feet and has
approximately 200 workers.
As a renowned color authority, Maybelline New York creates seasonal color stories with
products in the seasons hottest shades. Today, it focused on helping women feel more
beautiful and recognizing their individuality and potential through education and empowerment.
Maybelline NY is part of the consumer products of LOreal. High competitive products at
competitive prices distributed through mass-market retailing channels. This includes Garnier, L
LOral Paris, Le Club des Createures and Maybelline NY. Maybelline New York brings together
the feel, the flavor and the success of Maybelline and injects the New York elements that give
the city its cool, captivating atmosphere.

The Product
Maybelline New York launched the Clear Smooth Face Powder (CSFP), also known as Clear
Smooth Pressed Powder, in the Philippines in mid 2007. It is a cosmetic product that is
fragrance-free, oil-free, non-comedogenic and wont clog pores for the face. This product
combined oil absorbing ingredients that remove shine, for a clean, shine-free finish. The
extreme fine powder glides like silk and melts smoothly on skin. It covers flawlessly but looks
perfectly natural. It has aloe, chamomile and vitamin C to soothe the skin. It is available in
four shades, namely: white, light, natural and honey designed specifically for the Asian skin
tones. This product is likewise designed for persons with oily and combination skin.
Branding of the product was designed in line with the objective of Maybelline NY for the CSFP to
be the 1st and most loved make up brand of the teenagers. Moreover, it was designed to be
perceived as a fun brand and a brand that anticipates what every women wants. The product
was also packaged to be user-friendly and colorful. The reason is that it wanted the brand to
be attractive and accessible to the mass market women. The CSFP was introduced here in the
Philippines for P199 only. This product is definitely the lowest priced product of Maybelline NY
since all the other products are priced at P299 and above.
Since Maybelline NY is all about excitement and multi-ethnic energy, its target markets for the
Clear Smooth Face Powder are the women ages 12 25 because LOral, the company that
acquired Maybelline NY, caters the professionals and high end users (more on the luxury side).
The CSFP caters not only women but men who use powder on their faces as well. But based on
the Focus Group Discussions (FGD) conducted by Consumer Vibe Asia last year, most of the
young professionals (yuppies), moms, and older women use Maybelline products rather than
the teenagers. The reason behind this is the fact that Maybelline products are highly priced.
Teenagers consider Maybelline NY products as mere aspirations for them. And in order to
address this issue, Maybelline NY launched the CSFP at a lower price.
The introduction of CSFP in the market increased its sales in the face category into a double
digit percentage versus last year despite the fact that it was not promoted in the television and
was only published in the magazines. Likewise, Maybelline NY penetrated their target market
and captured their share of the market when it massified its price from P500+ to P199 only.
As already stated, the companys objective for the CSFP of Maybelline NY is to be the 1st and
most loved make up brand of the teenagers and be the number one cosmetic product in the

market. It also aims to be the leader in the household, so that whenever the market wants to
buy a cosmetic product, it will be the 1st product that comes to their mind.

Promotion and Distribution


The CSFP is mainly distributed to Department Stores and to Beauty Stores such as Watsons.
Another project they will be doing is to make the product available in supermarkets and
drugstores. The only disadvantage of distribution in the supermarket is that there will no
longer be beauty consultants that will tell the customers about the products benefits and the
right product for them. The CSFP is displayed side by side with other Maybelline products, if it
is in their own counter. But if it is in a new store with no other Maybelline products, it is
displayed side by side with other pressed powders.
This product was promoted mainly through magazines and newspapers, and no commercials or
ads in the television were aired about this product. Before, Maybelline NY used to advertise
only in glossy magazines. They strictly did not want to be seen on TV especially in the evening.
But due to the changing environment, they need to strategize. Today, it already promoted its
products using TV ads and other marketing activities in places where their target market is
situated. Part of their marketing activities is to do some talks about the products in the school
and offices. Another strategy they implemented is to do make-up sessions in the malls in order
for their target market to be aware of the product. The company likewise tagged gift items
upon purchase of the CSFP.
They also used brand's spokesmodels - beautiful, charming, multi-ethnic dream team that are
featured in advertising shots taken on the streets of New York. Shade choices and names
reflect the trends seen in the city every day.
The company also introduced the CSFP in the market, in order for the company to cater the
teenagers who have difficulty in buying their products and to compete directly with the lowpriced products of their competitors. Likewise, it was introduced in order to establish loyalty
among their target market, especially the teenagers.

Competitors
The major competitors recognized by Maybelline NY for Clear Smooth Face Powder are Avon,
Ever Bilena and J & J since it also targets their market. The only advantage of their
competitors is their products prices.
Ever Bilena for example, are priced lower than the Clear Smooth Face Powder. Teenagers that
have a bias on the price would really tend to use low-priced products rather than the products
of Maybelline NY.
With Avon, as per study of Maybelline NY, it really did not want to compete with the Clear
Smooth Face Powder because their main objective is to give jobs to women through direct
selling. But indirectly, it already gets the target market of Clear Smooth Face Powder due to
lower prices too.
As per company policy, whenever a new recruit or new customer is asking for a face product,
the beauty consultants of the company will direct the customers to their newly launched
product which is the Clear Smooth Face Powder. If the recruit did not like it, they will direct it

to other face products of Maybelline NY or to the products of LOreal. Only the products within
the company and the sister company are considered substitutes for Clear Smooth Face Powder.
Below are the comparative prices of face powder:
Product

Net
Weight
10 g
12 g
12 g
10 g
15 g

Clear Smooth Face Powder


Careline Oil Control Face Powder
Ever Bilena Face Powder w/ Vit. E
J & J Fresh and Smooth Face Powder
Nichido Fancy Color Face Powder

Price
P 199.00
P 92.00
P 95.00
P 102.75
P 65.00

Manufacturer
Maybelline NY
Ever Bilena
Ever Bilena
Johnson & Johnson
Nichido

Exhibit 1: Survey Results of Consumer Perception of the Product

Survey Response to "How did you come to


know about Maybelline Products?"
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

44.00%

20.00%
16.00%
12.00%
8.00%

Glossy
Magazines

Beauty
Shops

Tv Ads

Dept Store On the spot


Purchase

Survey Response to "Maybelline Products are of


High Quality."
60.00%
52.00%
50.00%
40.00%
32.00%
30.00%
16.00%

20.00%
10.00%

0.00%

0.00%

Disagree

Strongly
Disagree

0.00%
Strongly
Agree

Agree

Neutral

Survey Response: "What Price would you prefer for


Maybeline Clear Smooth Face Powder?"
45.00%
40.00%

40.00%
36.00%

35.00%
30.00%
25.00%
20.00%
15.00%
8.00%

10.00%

8.00%

8.00%

5.00%
0.00%
P 90.00 and P 91.00 - P P 121.00 - P P 151.00 - P P 171.00 - P
below
120.00
150.00
170.00
200.00

Survey Response: "What age of users are


Maybelline Products good for?"
40.00%

36.00%

35.00%
28.00%

30.00%
25.00%
20.00%

16.00%

15.00%
10.00%

12.00%
8.00%

5.00%
0.00%
12 - 17 yrs

18 - 25 yrs

26 - 32 yrs

33 - 40 yrs

41 yrs and
above

Survey Response: "How familiar are you with


Maybelline Clear Smooth Face Powder?"
35.00%

32.00%

30.00%
24.00%

25.00%

20.00%
20.00%

16.00%

15.00%
10.00%

8.00%

5.00%
0.00%
Very Familiar

Familiar

Not so
Familiar

Unfamiliar

Very
Unfamiliar

Survey Response: "What Factor made you


decide to buy Maybelline Clear Smooth Face
Powder?"
32.00%

35.00%
30.00%
25.00%

24.00%
20.00%

20.00%

16.00%

15.00%
8.00%

10.00%
5.00%
0.00%
Additional
benefits

Quality

Number of
available
variants

Price

Product
Packaging

Average Response (Mean) of Sample in


4 Categories
4
26 - 32 yrs

3.5

Not so Familiar

3
2.5
2

P 90 - P 120
Agree

1.5
1
0.5
0
Quality

Price Range

Age Bracket

Familiarity

Prevalent Responses (Mode) By Category


6

Product
Packaging

5
33 - 40 yrs
4
3
2

P 91.00 P 120.00
Glossy
Magazines

Familiar

Strongly
Agree

1
0
Ad Channel

Quality

Price
Range

Age
Bracket

Familiarity

Deciding
Factor

Results Summary:

Among the advertising channels that Maybelline uses, glossy magazines are the most
common channels through which our respondents came to know about Maybelline. 44%
of the respondents confirmed knowing about Maybelline through glossy magazines.
Majority of the respondents (52%) believe in the quality of the product and its benefits.
76% of the respondents would have the product priced P 120.00 and lower. Of these,
40% said they wouldnt mind if the price falls in between P 91.00 P 120.00.
64% of the respondents believe that Maybelline products are for women with ages 26-33
years while only 20% believe that the image the product conveys is intended for women
between 12-25 years of age.
While 40% of the respondents claim that they are familiar with the product, the
remaining 60% of the respondents indicated that they are not familiar with the product.
Product Packaging and Quality are the top factors that convince consumers to purchase
the product