Ch. 7 Business Marketing

Business Marketing is defined as "the marketing of goods and services to individuals and organizations for purposes other than personal consumption" (Lamb/Hair/McDaniel 108). Although Maybelline products are made for the personal use of consumers and not businesses, there are many functions involved in the process of getting Maybelline products from production to the hands of the ultimate consumer. Therefore Maybelline is involved in strategic alliances with other businesses such as its suppliers, retailers, and logistics/delivery companies, in order to carry out its necessary operations, and achieve its objectives efficiently. Since Maybelline was founded, it has manufactured its own products. In order to manufacture its products, Maybelline must build and maintain close relationships as well as strategic alliances with its suppliers. Maybelline must purchase raw materials from suppliers, that become the ingredients of its products. Suppliers also provide office supplies and materials necessary to carry out the everyday functions performed in the manufacturing plant as well as Maybelline's office headquarters. The necessary supplies include fixtures, equipment, machinery, furniture (offices), and everyday office supplies. 

Maybelline must also maintain a close relationship with its retailers which include drugstores CVS, RiteAid, Duane Reade, Walgreens, and discount retailers Walmart, Kmart, and Target. Online retailers Amazon.com and Ulta.com are also authorized to sell Maybelline products on their websites. There are sales representatives who are involved in the important personal selling component of Maybelline's marketing objectives. Sales representatives must make frequent visits to their retailers, bringing new products and taking orders, but also making sure that the products are being sold in a way that is favorable and profitable to the manufacturer. For example, a sales representative must go to RiteAid and visit the Maybelline section, to make sure that Point of Purchase displays are in place and used appropriately, that the display of the products is in order, and most importantly, that the placement of the Maybelline section within the store is strategically attracting enough customers. While Maybelline may use their own means of transporting their products to retailers, they also outsource some of their logistics and delivery services to other companies which may include FedEx or UPS. They especially need such companies when it comes to transporting and delivering their products to retailers countries other than the United States. 

Another way in which Maybelline is involved with other businesses/organizations is its official sponsorship of Mercedes-Benz Fashion Week. Sponsoring this event which takes place in September and February, is a major marketing strategy for Maybelline. Being the official sponsor of the events, means that Maybelline not only provides monetary-support but mainly all the makeup products, which all the models display in the shows. This is a powerful marketing strategy because Mercedes-Benz Fashion Week attracts a large audience, including Maybelline's target market. Being the sponsor of such a prestigious and popular event enhances Maybelline's image by association. This strategy has the power to influence consumer buying attitudes towards the brand. This is also an effective way to boost sales. 

The video below was taken backstage of the Marissa Webb Fall/Winter 2013 show at Mercedes-Benz Fashion Week. Maybelline makeup artist Charlotte Willer demonstrates how Maybelline products were used to create one of the beauty looks for the show. 

PERSONAL NOTE: 

This is the final post to conclude the semester-long blog assignment for my Marketing class. This blog was a great way for me to truly understand and apply the marketing concepts which I've learned about. Maybelline is a very successful company, and writing about it has provided me with a great insight as to how they have attained their multitudinous and outstanding success. I want to give a special thanks to Professor Joel Evans for a great semester in which I have been inspired, and from which I have taken away life and career lessons that will help me reach my goals in the future. Professor Evans is one of the best professors I have ever had the pleasure of meeting, and I truly appreciate his unique ways of teaching. 

Thank You Professor Evans! 

Ch.8 Segmenting and Targeting Markets

 Within Maybelline's target market, women ages 16-25, there are specific segments/groups of people sharing certain characteristics and product needs. Market Segmentation, involves dividing the defined target market into strategically meaningful and identifiable segments; this allows a successful company like Maybelline to create a marketing mix (product, place, promotion, and price), that is tailored to satisfy the specific needs of each segment or group they choose to focus on.

Market segmentation is especially important to Maybelline because they are a cosmetic brand serving a great variety of individual women, all with different skin-tones and different makeup preferences, therefore seeking different benefits. There are many factors/criteria that a company can use to define segments in their target market, benefit segmentation being one of the most important for Maybelline. Maybelline has successfully created a product mix that has something for everyone, depending on the benefit they seek in their cosmetic product choice. Maybelline's product mix can be classified into 26 different benefits, including Anti-shine, Shine, Moisturizing, Intense color, Classic color, Volume (lashes), Length (lashes), Illuminating, Healthy Minerals, Care, Skin Perfecting, Long-Wearing, etc. They have also created product lines  targeted towards a specific market segment such as FIT Me, which is a line dedicated to women seeking a natural, flawless, and breathable look, along with an easily blended formula, and "perfect" skin-matching. This concept of market segmentation is also exhibited in Maybelline's different Eye-Shadows. Eye Studio's Color Tattoo Pure Pigments Loose Powder Shadow, creates a powerful color intensity, while Expertwear's Eyeshadows come in classic colors, which are much softer and less intense than those offered by the Color Tattoo shadows. 

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Age segmentation, although not such a big factor for dividing Maybelline's already age-based target market, did play a part in the creation of a specific product line. The product line Age-Rewind was created as Maybelline's objective to increase market share by targeting women ages 35+. Age-Rewind has a total of eight different products, aimed at the market segment of women seeking Anti-Aging benefits. Christy Turlington is the face of Age-Rewind, being 44 years old and still having young-looking and flawless skin. 

Income segmentation is very important for Maybelline, as well as any other successful company. What makes income segmentation so important is consumer buying power. Maybelline's products are mainly targeted towards women ages 16-25, who don't have as much purchasing power as older age groups with higher incomes. Therefore, Maybelline products are sold at affordable prices, a met provision of their mission statement. Low prices allow Maybelline to sell their products in drugstores such as RiteAid and Duane Reade, instead of stores like Sephora that carry high-end brands such as Givenchy, Chanel, and Urban Decay. 

Ch.11 Developing and Managing Products

In order for a company to remain relevant in the marketplace, it is important for new products to be introduced several times per year. Not only does frequent product development help to keep firms relevant, but it also helps to increase the width and depth of their product mix. Maybelline releases many new products every year, many of them being part of different product lines. FIT Me is one of Maybelline's successful product lines, which was developed simultaneously, meaning that all of the products belonging to the line were developed at the same time. The biggest benefits of simultaneous product development are reduced production costs, and an efficient use of time.






There are very important factors to consider when deciding whether or not a product is marketable and most importantly, profitable. One of the most important factors to consider is whether or not there is a demand among current and new customers alike, for the new product/product line. FIT Me was created based off of information obtained from customer focus groups (this type of research is also known as a concept test). From this research, Maybelline discovered that women were looking for makeup that is right for them and their skin-tone, to create a natural and flawless look (http://main.stylelist.com/2010/09/03/maybelline-fit-me-makeup-line/). Evaluating the competition and what sets Maybelline's product line apart, is another important factor to consider in the process of developing a new product(s). All other drug-store cosmetic brands have products in the same category as the products that form part of the FIT Me line, especially foundation. What makes Maybelline FIT Me different from the competition however, is that FIT Me offers entire makeup regimen dedicated to creating the natural and flawless look their customers seek. FIT Me comes complete with foundation, concealer, pressed powder, blush, and bronzer (the bronzer was an extension to the line). Other brands like Covergirl, did not have an entire line dedicated to this benefit until recently, when they released a product line similar to FIT Me, called Trublend (http://www.covergirl.com/collections/trublend-mineral-makeup).

New products are also introduced as product line extensions, increasing the depth of a specific product line. Maybelline has made two extensions to FIT Me since the release of the product line in early 2011. The first extension, the bronzer, was introduced shortly after the product line was released. The latest product extension was quite innovative, being the first of its kind: The FIT Me Shine-Free Stick Foundation. It is more than likely that these products were already in development back when the original product line was being developed as well. However, it is an effective strategy to continue to introduce products to a specific line, after its success has been proven; this allows new products to shine on their own, allows for advertising to focus on that specific product line extension, and keeps customers looking forward to new products that supplement the original line depth. 

Ch.18 Social Media and Marketing

The Importance of Social Media - Social media can be simply defined as "any tool or service that uses the Internet to facilitate conversations" (Lamb/Hair/McDaniel,306). Today, social media has become an important part of everyday life for billions of people worldwide, making it just as important for companies whose target markets engage in social media. Social networks such as Facebook, Instagram, Twitter, LinkedIn, Pinterest, Tumblr, and Google+,  all have millions of users daily sharing anything from their thoughts to pictures and videos. Why is this so important to companies like Maybelline New York? One of the biggest purposes that social media serves for companies is the ability to receive feedback on their products, from billions through one-to-many interaction with consumers and the comments they post on various sites. This is referred to as the "Listening System" which involves companies closely monitoring social media. By monitoring what consumers are saying about Maybelline and its products on social networks, blogs, media sharing sites, and review sites, Maybelline can improve their products, and also gain insight as to what their customers want and need. The internet has changed the way consumers shop by greatly facilitating their ability to make informed decisions on their purchases. Today, the majority of people do some research online on a variety of shopping products before making a purchase, making it crucial for marketers to monitor social media. It is also crucial for companies to take active participation in social media.

Maybelline on Social Networks - Social networks are the most popular form of social media among Maybelline's target market, women ages 16-25. The most popular sites right now are Facebook, Twitter, Pinterest, and Instagram. Maybelline has about 4.1 million likes on its Facebook page, 40,000 followers on twitter, and 140,000 followers on Instagram. Pinterest is an online pinboard to which users can "pin" photos they like based on a common interest, theme, product, brand, category, and/or idea. Maybelline has twenty-two boards and nearly 3,000 pins; these pins are a great source of advertising for Maybelline's products. Maybelline controls all of their social network pages, and uses them actively in order to build relationships with customers. Through all of these social network pages, Maybelline is able to find out firsthand what their customers like about certain products and what they don't. 

 

The photo featuring FIT Me Foundation, was posted on Maybelline's Instagram page. These are just a few of the many comments left by users; some comments were positive, expressing how amazing the product is, while others expressed the need for a pump on the foundation and other ways in which the product can be improved. 

Maybelline on Blogs - Review sites and blogs that discuss Maybelline products are just as important as the the activity on Maybelline's social networks, because they contribute directly to sales. Today's consumer usually does some research on the internet, whether extensive or not, before making a purchase. There are many beauty blogs that review many different products from different brands; some of these beauty blogs are very trusted and frequently visited by many. One of these blogs is Miss Natty's Beauty Diary which has received about 14 million views (http://www.missnattysbeautydiary.com/search/label/Maybelline). Temptalia, a top rated beauty blog has also posted about Maybelline products, with its most current Maybelline post discussing the top five Maybelline Must-Have Products (http://www.temptalia.com/category/brands/maybelline). 

Maybelline on Review Sites - Reviews for Maybelline products can be found anywhere that they can be purchased. However, there are many review sites whose purpose is to provide reviews for many beauty products. Paula's Choice is a review site known worldwide, where customers can find thorough reviews on a variety of products from nearly every cosmetic brand, including Maybelline (http://www.paulaschoice.com/beautypedia-skin-care-reviews/brands/). Below is part of the long list of Maybelline products reviewed on Paula's Choice. Clicking on any of these products takes you to a thorough review, with pros and cons, information on which skin-types the products work best, whether or not animal testing is used,etc.) Websites like these have a very strong influence on consumer decision making when it comes to their beauty product choices. 

Maybelline on Youtube - Youtube is categorized as a media sharing site, and is by far the most popular for videos. Maybelline has a highly active Youtube page on which they post behind the scenes videos, make-up tutorials, share beauty tips, upload TV commercials, and videos on how to "Recreate the Runway". Maybelline has nearly 43,000 subscribers. Many Youtube users also post many tutorials,  review videos on Maybelline products as well. Below is a demo/first impression of Maybelline's FIT Me Foundation and Concealer posted by a Youtube user.  

Below is another first impression review of Maybelline's FIT Me Shine-Free Foundation. This user however, wasn't very impressed, and shares her thoughts on the product. Maybelline can use this feedback to make future product adjustments. 

Ch.10 Product Concepts

The most important element of the marketing mix is the product. A great product offering or product mix is vital to a firm's success in the marketplace. Product attributes and benefits must provide customer value in order to compete effectively. Maybelline has a good understanding and a clear vision as to what benefits their target market seeks, and they create products to complement and fulfill their needs. Maybelline offers a wide variety of product categories, all strategically grouped together under different product lines offering beauty essentials such as Mascara, Eyeliner, Eye shadow, Lip Balm, Lip Gloss, Foundation, etc. Each of these product categories has great depth, offering variations to match the individual needs of different customers. For example, Maybelline’s Volum’ Express Mascara line has nine different mascaras, each providing a different benefit such as “Extensive length”, “Clump-free volume”, and “Explosive Volume”. 

 

The product line FIT Me seeks to provide its own special benefits, such as makeup with a natural, fresh, and breathable finish, skin perfecting, and skin-tone matching which women can use to highlight and enhance their features without covering their natural beauty. FIT Me offers an assortment of six different products, New Shine-Free Stick Foundation, Liquid Foundation, Pressed Powder, Concealer, Blush, and Bronzer. Each of these products comes in many different shades to match different skin tones and preferences. FIT Me is of great quality, has received great reviews from customers, and has become very popular. Although there are other competitors promoting products with similar benefits, FIT Me has been successful due to it being one of the few lines (if not the only one) in the market that is specifically aimed at meeting the demand for natural, breathable, and skin-tone matching makeup. FIT Me’s Shine-Free Stick Foundation, was a product extension made my Maybelline which is the “first of its kind”, and significantly contributed to the success of the makeup line. FIT Me has a cost-competitive advantage over its competitors because it is easily accessible and affordable, compared to higher priced products from other brands with similar benefits.

 

Another important aspect of product design is the packaging. FIT Me’s products are easily recognizable, due to their uniform packaging. The packaging for all FIT Me products is very similar to that of one another, using the same color and similar shape. The packaging also tells a lot about the product. FIT Me’s product packaging comes in black and nude to convey the idea of simplicity, and that the line focuses on matching different skin tones for a flawless natural look. FIT Me’s product packaging provides ease-of-use to its customers. All of the products come without a large and difficult to take off plastic encasement. Instead, they simply come with a thin plastic wrap to display and ensure freshness and newness of the product.

Maybelline has a high brand equity, which is a great advantage when releasing new products or product lines, which Maybelline does often. Brand equity refers to the level of Maybelline’s brand awareness in the marketplace, perceived quality, reputation, and most importantly, brand loyalty. Customers who have had positive experiences with Maybelline products or have heard of others' experiences, are more likely to purchase Maybelline products because they refer back to that positive experience when comparing brand options. Also, any consumer with a positive view of Maybelline’s products, especially those who had personal experiences with the product, are more open to trying new products by the brand as well.

                                                                                                                                                                                                                                                                                                                                                           

Ch.17 Personal Selling And Sales Management

There are many forms of promotion that a company can use, one of the most effective forms being personal selling. Personal selling consists of a personal interaction between the seller and the prospective buyer. In the early 20th century, beauty products were mainly sold through door to door sales presentations , which is one of the first ways Maybelline was able to reach their target market. Today, beauty products are only sold this way by companies such as Avon, and individuals who buy wholesale products and attempt to sell them to people they know. The best and most used form of personal selling today, is relationship/consultative selling, which companies mainly execute through highly interactive and trained sales representatives in their store locations. Sales representatives are a big influence on customer's decision-making and their purchases.
A good sales representative is friendly, knowledgable, reassuring, and especially convincing. Most consumers are more compelled to making a purchase when they feel like they are getting a second opinion, they are being taken care of, and they feel like they are important to the company. One of the most important aspects of this type of personal selling is allowing consumers to try on the products, which allows them to be more sure of the purchase they are making, and to experience the benefits the products provide.

Unfortunately, Maybelline does not have any physical stores, which significantly minimizes their personal selling ability. Having a physical store location would be very beneficial to Maybelline and would highly increase sales. Maybelline has the ability to create a beautiful, fun, and colorful store atmosphere which would undoubtedly bring in loyal and new customers alike. One of the biggest problems women have when purchasing beauty products, is the great uncertainty of not knowing whether or not they will really like the product, or more importantly, if the product will fit their unique needs. I have stood in front of the Maybelline section of the drugstore many times staring at a sealed product that I would like to buy, and wishing I could just rip off the packaging and try on the product. When this happens, I usually walk away without that product. A Maybelline store where prospective customers can try on products, have their makeup done by makeup artists (similar to MAC and Sephora stores), interact with sales representatives, and be surrounded by other women who love makeup, will increase the long-term relationships between Maybelline and its consumers, and will increase sales significantly.

One approach that Maybelline takes at personal selling is holding events at which they set up makeup booths, and interact with customers.The photo above, was taken at a "Pretty In Pink" Beauty Fair hosted by Cosmopolitan Magazine and the Robinson's Department Store. At events like these, Maybelline booths are set up with a variety of products, and staffed by professional makeup artists who give prospective customers free makeovers, and share beauty tips. Maybelline also hosts their own events at which they can interact with customers, especially during Mercedes Benz Fashion Week. 

                   

             

Another big way in which Maybelline uses personal selling to reach their target market is by social networks and their own website. Social networks such as Twitter, Facebook, and Instagram significantly help to create and maintain relationships with their customers. These media outlets also play a big role in sales, because they allow Maybelline to perform needs assessments, in which they determine what are the needs of their target market and what are the benefits they seek. Social media outlets are also largely used as a follow-up tool, through which Maybelline personnel, can directly ask consumers to share their thoughts on a specific product. This is different from reviews written on other sites, because customers can feel like they are directly voicing their opinions, and like they are interacting directly with Maybelline. On the official Maybelline Website and on their Youtube Channel, Maybelline representatives post video tutorials for their products, which is a great way to interact with consumers through technology and the internet. These video tutorials teach women how to create different trendy looks using Maybelline products. 

The following video is a tutorial posted to both Maybelline.com and Youtube. In this tutorial, a professional makeup artist from Maybelline New York, Julianne Kay demonstrates how to get a natural look that can "highlight your features, without overdoing it".

Ch. 16 Advertising, Public Relations, and Sales Promotion

Since the foundation of Maybelline in 1917, they have used a specific type of advertising, known as pioneering advertising, which is used to stimulate demand for a product or product category. In the early 20th century when Maybelline first began to make its mark, the "eyelash darkener"(known today as mascara) was a relatively unknown product to the mass-market. For this reason, Maybelline had to make all of its advertisements not only convincing, but also very informative. A series of print advertisements were published, letting women know of the benefits that Maybelline Eye-Makeup provided for any woman of the time. Maybelline wanted to convey the idea that any woman can have beautiful and alluring eyes, and beautiful dark eyebrows, by using Maybelline's products which became extremely popular. The ads mainly outlined the benefits of the products, some gave specific instructions on how they are to be used, and many suggested the purchase of other products that would go well with the one being advertised. Here are a few examples of some of the early Maybelline advertisements: 

Before Maybelline got its official name, it was called Lash-Brow-Ine. This was the first advertisement that was published by the company in 1917 in Photoplay Magazine. 

This Maybelline advertisement clearly outlined the benefits of their products and gave two alternative options, The Solid Form, and The Liquid Form, which both came in brown and black. 

This advertisement, published in 1937, shows the difference that Maybelline's eye makeup products could make in a woman's appearance. An average housewife was used in the ad instead of a model or movie star, to show that ANY woman can look her best with Maybelline. 

This advertisement was published by Maybelline in 1960. This is an example of how Maybelline attempted to increase brand awareness among its target market. By this time, Maybelline had already released a series of products for the eyes and established itself as an exclusive specialist in "Everything To Make Eyes Beautiful". This is also a great way to sell not just one product through an ad, but an entire product line. This also creates a Product-differentiation competitive advantage.

Today, Maybelline has become the #1 cosmetic brand in America, and it is very well known by its target market. Maybelline's advertising objective has changed, with the new objective being mainly to advertise new products and product lines. Therefore, today the company mainly spends on advertising for new products, and does so mainly through mediums/channels such as TV commercials and Internet banner ads which prove to be very effective in reaching their target market. Maybelline also advertises in Newspaper ads, but these can be seen at a larger scale mainly during Mercedes Benz Fashion Week in New York. Maybelline's advertisements use a particular executional style, that portray the image of a fun, beautiful, strong, fearless, woman, who can look flawless and express herself through the use of Maybelline products. This consistency in the advertisements and the image they portray, is vital to attract the target market, to build a relationship with the consumer, and to stay in touch with Maybelline's mission statement (http://www.maybelline.com/About-Maybelline.aspx).
Here are some great commercials by today's Maybelline New York:

The above commercials, along with every other Maybelline TV commercials, do a great job at clearly stating the benefits of the product they are advertising. Consumers are more likely to purchase a product that states the benefits rather than just the attributes or features of the product. For example, the FIT Me Shine-Free Foundation Stick has a powder-core. What does this mean to the consumer? If Maybelline had not stated in the TV commercial what the benefits of the powder-core are (provides a flawless matte-finish wish no shine), a prospective customer is less likely to purchase the product.

Since Maybelline mainly advertises through television, it is important to analyze the advantages and disadvantages of this medium. Some advantages of a Television commercial include the ability to reach a wide audience, the immediacy of messages, commercials can entertain viewers, and may allow the advertiser to aim at a specific target market depending on the network, time of day, and TV shows. Some disadvantages of TV commercials, are the large amount of commercial clutter which can overwhelm viewers and reduce the effectiveness of the ad, there is a short-life of the message, and TV commercials are very expensive.