Maybelline Case Study

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CASE STUDY
Marketing Audit
Maybelline Cosmetics

Natali Louise

2010
Natali L

1/1/2010

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY
2. IDENTIFY MAYBELLINES CORPORATE & MARKETING OBJECTIVES 3. DEFINE THE PROBLEM
4. EXTERNAL ENVIROMENTAL PROBLEM

* MARKET DEFINITION
* MARKET SIZE
* MARKET GROWTH
* MARKET STRUCTURE
* MARKET TRENDS
* COMPETITION
* MARKET SEGMENTATION

5. INTERNAL ENVIROMENT (EXISTING MARKETING MIX)

* PRICE, PRODUCT, POSITION, PROMOTION
* DISTRIBUTION
* RESOURCE ANALYISIS
* FINANCIAL SITUATION
* SWOT ANALYISIS

6 .SELECT SEGMENTS FOR ATTACK
7. IDENTIFY ALTERNATIVES
8. SELECTION OF BEST ALTERNATIVE
9.KEY SUCCESS FACTORS

1.
EXECUTIVE SUMMARY
In this case study we will be examining Maybelline Cosmetic Company and its current market position and distribution domestically and globally, we will be looking at the expansion of the company as well as the feasibility of successful expansion, options available and extension of the Maybelline line.

2. IDENTIFY MAYBELLINES CORPORATE & MARKETING OBJECTIVES Maybelline’s corporate objectives can be summarized in the three point strategy designed to- * Expand the company’s market presence through corporate acquisition, making its geographic presence wider. * To develop or purchase a new personal line of care products that will compliment Maybelline’s existing business * To revitalize the company’s core colour cosmetics business

The marketing objectives have been organized to-
* Develop and advertise the newly launched “Shades of You” a cosmetic line targeted to meet the specific needs of woman of colour. * Develop and launch a shine free product line for teenagers and young woman. * Introduce a new product segment ‘Revitalize” developed specifically for older woman. * Appeal to an international market.

3. DEFINE THE PROBLEM
Maybelline desires to expand on into the global cosmetics market, this may encounter difficulties as the barriers to entry into Asian and European markets are high, existing well entrenched cosmetic companies are already well established and hold a high market share, there may also be the difficulty of marketing cosmetics in an international market place where cultural obstacles may arise, perception of Maybelline as a brand may not be high, as well as international sales of Maybelline accounting for only 10% of the company’s net sales in 1991.

4. EXTERNAL ENVIROMENTAL PROBLEM
* MARKET DEFINITION
Maybelline’s presence in the domestic United States market should be considered strong, they have held second largest market share for the last five years, including second and third positions in the domestic market for their face and lip cosmetics, this has encouraged them to expand globally, however as stated net sales internationally have been poor compared to sales in their domestic market.

* MARKET SIZE
Unit Sales and Profitability
Sold currently in approximately 80 thousand retail outlets domestically, as well as various wholesalers such as Wal-Mart, Kmart and Target, Maybelline’s net sales through Wal-Mart alone constituted over 10% of the company annual sales with eye makeup constitute 39% of sales followed by face products at 24%, lip products at 14% and nail polish at 4%. One can see through current sales figures that within the domestic market and distribution channels, globally positioning Maybelline would depend heavily on successful product distribution channels.

YEAR ENDED YEAR ENDED DEC. 31, 1990 DEC, 31, 1991| POSITION SHARE POSITION SHARE| TOTAL COLOUR COSMETICS| 2| 18%| 2|...
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