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Max Factor
- 2. Table of Contents
EXECUTIVE SUMMARY 3!
PROBLEM STATEMENT 3!
SITUATION ANALYSIS 3!
COMPANY 3!
CONTEXT 4!
CONSUMER 5!
COMPETITION 6!
L’OREAL 6!
COTY 6!
MARKETING STRATEGY 7!
TARGET 7!
BRAND POSITIONING 7!
BRAND ANALYSIS 7!
ORIGINS 7!
TANGIBLE ASSOCIATIONS 7!
INTANGIBLE ASSOCIATIONS 8!
MARKETING MIX 8!
PRODUCT 8!
PRICE 9!
PLACE 11!
PROMOTION 11!
ANALYSIS OF ALTERNATIVES 12!
ALTERNATIVE 1: CHANGE POSITIONING 12!
PROS 12!
CONS 12!
ALTERNATIVE 2: CHANGE TARGET CONSUMERS 13!
PROS 13!
CONS 13!
RECOMMENDATION 13!
IMPLEMENTATION 13!
CONCLUSION 13!
BIBLIOGRAPHY 14!
EXHIBITS 15!
EXHIBIT 1:! IMAGE OF MAX FACTOR SPAIN WEBSITE 15!
EXHIBIT 2:! IMAGES OF MAX FACTOR DISPLAYS 15!
EXHIBIT 3:! MAX FACTOR LIPSTICK PRODUCT TEST 15!
EXHIBIT 4:! CONSUMER SURVEY 16!
EXHIBIT 5:! ADVERTISEMENTS 18!
EXHIBIT 6:! LIST OF MAX FACTOR INNOVATIONS 19!
EXHIBIT 7:! MAX FACTOR PRODUCT PORTFOLIO 20!
! ! 2
!
- 3. !
Executive Summary
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Problem Statement
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Situation Analysis
Company
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!
Premium Makeup Middle Tier Makeup Mass Market Makeup
Consumers Consumers Consumers
Gender Women Women Women
Age Range 35+ 20s – 45 Teen – 20s
Est. Annual Income > 60,000" 20,000 – 60,000" < 20,000"
Purchase Point Exclusive cosmetics Department stores, Supermarkets, Department
counters at department perfumeries Stores
stores or specialty luxury
stores
Purchase Decision Perceived quality, brand Glamorous, sophisticated, Price, availability, fun,
Differentiators recognition, advertisements, used same brand products youthful appeal
scientific benefits, before, satisfaction with
satisfaction with prior previous experience,
experience, perceived quality / price
recommendations tradeoff
Consumer behaviors Looking for a product that is Looking for a product that is Looking for a product that is
elegant and sophisticated, a glamorous and beautiful, youthful and affordable;
classy product something akin to a model; looks towards peer group for
! ! 5
!
- 6. Premium Makeup Middle Tier Makeup Mass Market Makeup
Consumers Consumers Consumers
looks for ideas in fashion ideas as well as trends
and beauty magazines
!
J/! '1-! #.(7-! '#.8-4! =-! .-8*-7-! '1#'! "#$! %#&'()! *+! ')6*/A! '(! '#)A-'! '1-! 8(=-)! -/0! (2! '1-! "*008-IE*-)!
,#;-53!&(/+5,-)+!=*'1!'1-*)!3)*&*/A!#/0!38#&-,-/'4!.5'!.#+-0!(/!'1-*)!3)(05&'!#/0!3(+*'*(/*/A4!=-!
.-8*-7-!'1#'!"#$!%#&'()!*+!,()-!#33-#8*/A!'(!'1-!"#++!"#);-'!,#;-53!&(/+5,-)+?!
!
Competition
E1-!,#;-53!*/05+')6!2#&-+!*/'-/+-!&(,3-'*'*(/!
Premium#
*/!>3#*/!#+!#!2-=!8#)A-!&(,3#/*-+!(22-)!+-7-)#8! Estee Lauder,
0*22-)-/'! ,#;-53! .)#/0+! U+--! &(,3-'*'*7-! Lancome,
8#/0+-! 36)#,*04! )*A1'W?! ! FG@)-#8! 1#+! '1-! Christian Dior!
8#)A-+'! ,#);-'! +1#)-! Uc]?gjW! '1)(5A1! *'+!
7#)*(5+! .)#/0+! */! '1-! >3#/*+1! ,#;-53! ,#);-'4! Middle Tier 1#
2(88(=-0!.6!X_T!'1)(5A1!"#$!%#&'()!UcN?[jW?!!! Mac, Sephora!
L’Oreal
Middle Tier 2!
FG@)-#8! *+! "#$! %#&'()G+! 3)*,#)6! &(,3-'*'()4!
Max Factor, L'Oreal Paris,
(22-)*/A! ,#;-53! 3)(05&'+! '1)(5A1! 7#)*(5+!
Bourjois Paris!
.)#/0+! +5&1! #+! FG@)-#8! X#)*+4! "#6.-88*/-4! #/0!
F#/&(,-?! ! E1)(5A1! '1-+-! .)#/0+4! FG@)-#8! 1#+!
+')#'-A*Ͷ! &(7-)-0! +-7-)#8! '*-)+! (2! '1-! Mass Market!
&(,3-'*'*7-! +-A,-/'+?! ! FG@)-#8! X#)*+! *+! 3)*&-0! Astor, Maybelline!
+8*A1'86!1*A1-)4!.5'!7-)6!+*,*8#)86!'(!"#$!%#&'()!
3)(05&'+?! ! >(,-! (2! FG@)-#8! X#)*+G! ,(+'! 3(358#)!
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!
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=(,-/! &#/! #++(&*#'-! =*'1! #/0! )-&(A/*C-?! E(! &(,38*,-/'! '1*+4! FG@)-#8! 1#+! #! :B(,-/! (2! B()'1<!
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(2!H(3-<!&#,3#*A/!*/!()0-)!'(!3)(,('-!)-+-#)&1!#/0!#=#)-/-++!'(=#)0+!&(,.#'*/A!(7#)*#/!&#/&-)?!!
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-'1/*&*'64!#A-4!+;*/!&(8()4!#/0!#33-#)#/&-4!+5&1!#+!X-/-8(3-!Y)5C4!b*#/-!l-#'(/4!#/0!d-6(/&m?!!U"#$!
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=-G)-!*/&8*/-0!'(!&1(+-!+(,-(/-!8*;-!@3)#14!#/0!*2!"#$!%#&'()!=-)-!)-3)-+-/'-0!.6!#!3-)+(/4!=-G)-!
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T*+-8-4!=1(!*+!;/(=/!#,(/A!2#+1*(/!-/'15+*#+'+!.5'!/('!#+!=-88!;/(=/!#,(/A!-7-)60#6!=(,-/?!
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!
Coty
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.)#/0!(2!&(+,-'*&+!*/!>3#*/!*/!cPPc?!Y('6!1(80+!#!NZ?gj!+1#)-!(2!'1-!>3#/*+1!,#;-53!,#);-'!#/0!*+!
+(80!*/!+53-),#);-'+4!163-),#);-'+4!3-)25,-)*-+4!#/0!+(,-!0-3#)',-/'!+'()-+?!!Y('6!1#0!)-7-/5-+!
(2!aV?V!.*88*(/!*/!cPPZ?!
!
d-8(=4!=-!3-)2(),!#!&(,3-'*'*7-!#/#86+*+!(2!"#$!%#&'()G+!+')-/A'1+4!=-#;/-++-+4!(33()'5/*'*-+4!#/0!
'1)-#'+!U>B@EW?!
!
! ! 6
!
- 7. Strengths! Weaknesses!
-Ability to leverage the global network of resources -Currently second in market share to L'Oreal!
within P&G (e.g, financial, sales, knowledge)! -Losing marketshare worldwide!
-Seen as an innovative brand in makeup and makeup -Losing "Max Factor" brand equity worldwide and especially
application! in the U.S.!
-Competitive pricing strategy! -Losing retail space in retailers worldwide due to declining
sales!
-Recognized brand worldwide with heavy
investments in the advertising campaign !
Competitive Analysis
for Max Factor!
Opportunities!
-As a result of the global financial crisis, consumers Threats#
may be more price sensitive and brands that are -Trend towards using "natural" or "organic" cosmetics, as
more economically priced may fare better! well as using less colors for a more "natural" look!
-Spanish makeup market expected to grow over the -Belief by some consumers that the makeup and cosmetics
next few years! industry uses ingredients that are harmful to the environment!
!
Marketing Strategy
Target
M&&()0*/A! '(! (5)! )-+-#)&14! +5)7-64! #/0! &(/7-)+#'*(/+! =*'1! "#$! %#&'()! +#8-+! )-3)-+-/'#'*7-+4! "#$!
%#&'()G+! '#)A-'! A)(53! */! >3#*/! *+! =(,-/! .-'=--/! cP! #/0! S]! =1(! #)-! ,*008-I8-7-8! */&(,-! -#)/-)+!
'1#'!#)-!8((;*/A!2()!D5#8*'6!#/0!3)*&-!*/!'1-*)!,#;-53?!!!
!
Brand Positioning
E(! =(,-/4! "#$! %#&'()! *+! '1-! ,#;-53! '1#'! 3)(7*0-+! 3)(2-++*(/#8! )-+58'+! =*'1(5'! '1-! 3)(2-++*(/#8!
3)*&-!.-+-!(2!*'+!*//(7#'*(/!#/0!1*A1!)-A#)0!.6!3)(2-++*(/#8!,#;-53!#)'*+'+?!
Brand Analysis
Origins
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/#,-!=#+!M,-)*&#/*C-0!'(!:%#&'()<!#/0!"#$!%#;'()!.-&#,-!"#$!%#&'()?!!H-!+'#)'-0!#!3-)25,-!#/0!
&(+,-'*&+! .5+*/-++4! #/0! -7-/'5#886! ,(7-0! '1-! .5+*/-++! '(! F(+! M/A-8-+! #/0! .-A#/! &(/+58'*/A! #+! #!
,#;-53! #)'*+'! '(! &-8-.)*'*-+! #/0! ,('*(/! 3*&'5)-! &(,3#/*-+?! J/! NOcP4! "#$! %#&'()! .-A#/! +-88*/A! 1*+!
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,#;-53!*/05+')6?!!"#$!%#&'()!_!Y(?!)-,#*/-0!#!2#,*86!)5/!.5+*/-++!5/'*8!NOZV!=1-/!*'!=#+!+(80?!!"#$!
%#&'()!_!Y(!=#+!+(80!+-7-)#8!('1-)!'*,-+!.-2()-!X_T!35)&1#+-0!'1-!.)#/0!*/!NOON?!!E(!'1*+!0#64!'1-!
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)5/=#6!+53-),(0-8!#/0!2#+1*(/!*0-#8?!
!
Tangible Associations
• d)#/0!/#,-R!"#$!%#&'()!
• d)#/0! 8(A(R! ! E1-! :"#$! %#&'()<! /#,-4! */! #88! *'#8! 8-''-)+4! =*'1! #/! -/8#)A-04! A)#31*&! :$<! */!
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8-2'4!.)#/0!8(A(!*/!>3#*/4!#/0!.-8(=!)*A1'4!.)#/0!8(A(!*/!'1-!L/*'-0!>'#'-+?!
!
! ! 7
!
- 8. !!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !
!
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• >6,.(8+R! M+! ,-/'*(/-0! #.(7-4! '1-! 0*+'*/&'*7-! :o<! *+! #! )-&(A/*C#.8-! .)#/0! -8-,-/'! '1#'! *+!
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• B-.+*'-R! E1-! =-.+*'-4! ===?,#$2#&'()?&(,4! 8-#0+! '1-! 5+-)! '(! +-8-&'! '1-! )-A*(/! =1-)-! '1-!
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&-8-.)*'6! -/0()+-,-/'+! 2()! '1-*)! 3)(05&'+?! J/!
>3#*/4!'1-!&5))-/'!2#&-!(2!"#$!%#&'()!*+!Y#),-/!
l#++4! #! =()80=*0-! +53-),(0-8! ()*A*/#886! 2)(,!
+'(/*#?!!"#$!%#&'()!#8+(!5+-+!&-8-.)*'6!,#;-53!
#)'*+'! -/0()+-,-/'+?! Y5))-/'86! */! >3#*/4! '1-!
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#/0! (22-)+! 3-)+(/#8*C-0! &(/+58'#'*(/+! #/0! ,#;-(7-)+! '(! 2)-D5-/'! &5+'(,-)+?! J/! #00*'*(/4!
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)-3)-+-/'#'*7-+!=*88!.-!#7#*8#.8-!#'!0-+*A/#'-0!8(&#'*(/+!*/!7#)*(5+!&*'*-+!'1)(5A1(5'!>3#*/?!
• M33-#)#/&-+R!"#$!%#&'()!.)#/0*/A!*+!#8+(!7*+*.8-!#'!+-7-)#8!2#+1*(/!-7-/'+4!+5&1!#+!)5/=#6!
+1(=+?!
!
Intangible Associations
• d-#5'6!
• H(3-!
• T8#,(5)!
• Y-8-.)*'64!>53-),(0-8!!
• %#+1*(/!p!H#5'-!Y(5'5)-!!
• H(886=((0!
• J//(7#'*7-!
• X)(2-++*(/#8!D5#8*'6!
Beauty
Marketing Mix Adviser!
Product Makeup
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+53-),(0-8?! Hope,
! Beauty!
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+-A,-/'+R! 2#&-4! -6-+4! 8*3+4! #/0! /#*8+?! E1*+! 3)(05&'! 3()'2(8*(! (22-)! #88(=+! =(,-/! '(! +-8-&'! ,#;-53!
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! ! 8
!
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! ! 12
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Pros
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!
Cons
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Recommendation
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Implementation
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/-=!&)-#'*7-!2*),4!()!=();!=*'1!'1-!+#,-!&)-#'*7-!2*),!.5'!=*'1!#!0*22-)-/'!'-#,!'(!1-83!+1#3-!'1-!
/-=!"#$!%#&'()!.)#/0?!!J/!0(*/A!+(4!"#$!%#&'()!=(580!/--0!'(!)-'1*/;!#/0!&1#/A-!,(+'!(2!*'+!.)#/0!
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3(*/'!(2!+#8-!+'#/0+4!&(,,5/*&#'*(/!'(/-4!-'&?!!B-!.-8*-7-!'1*+!&(580!'#;-!+-7-)#8!6-#)+!#/0!+1(580!
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Conclusion
E1-! "#$! %#&'()! 3)(05&'! (22-)+! 1(3-! '(! *'+! &5+'(,-)+! #/0! *'+! .)#/0! 3)(,*+-+! +53-),(0-8ID5#8*'6!
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)-&(A/*C-0! '1-! "#$! %#&'()! .)#/04! +(,-! &(,,-/'-0! '1#'! "#$! %#&'()! 3)(05&'+! =-)-! :&1-#3<4! :3(()!
D5#8*'6<4!#/0!:/('!2*''*/A!2()!'1-,<?!!!B-!.-8*-7-!'1#'!'1*+!,#6!.-!#!+*A/#8!'1#'!"#$!%#&'()G+!3(+*'*(/*/A!
1#+!8(+'!'(5&1!=*'1!*'+!&(/+5,-)+4!0-+3*'-!'1-!2#&'!'1#'!"#$!%#&'()!7-)6!=-88!,#6!;/(=!=1#'!'63-+!(2!
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2)(,!1#7*/A!'(!=();!=*'1!#!3(+*'*(/*/A!'1#'!*+!'*)-0!#/0!(5'0#'-0?!!M+!#!)-+58'4!"#$!%#&'()!*+!8(+*/A!
.)#/0! -D5*'64! /('! '(! ,-/'*(/! ,#);-'! +1#)-4! */! >3#*/4! #+! =-88! #+! =()80=*0-?! ! B-! +5AA-+'! '1#'! "#$!
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-,3(=-)-0!=(,#/?!
! ! 13
!
- 14. Bibliography
!
!J/+'*'5'(!Q#&*(/#8!0-!+'#0*+'*&#+!UJQW!(2!>3#*/4!=-.+*'-!
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Y(,38-'-?!d>Y@?!c[!u#/?!cPPO!
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8*7-_+&(3-w+*'-x?!
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===?,#);-'*/A0*)-&'(?&(,4!>-3'-,.-)!NS4!cPPV?!
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cPNNR!%#&*#8!Y(+,-'*&+!UM3)?!cPP]WR!NIN[]?!d5+*/-++!>(5)&-!Y(,38-'-?!d>Y@?!c[!u#/?!cPPO!
v1''3Rpp+-#)&1?-.+&(1(+'?&(,p8(A*/?#+3$s0*)-&'w')5-_0.w.'1_MQwcPZgSZNO_+*'-w-1(+'I
8*7-_+&(3-w+*'-x?!
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X#);-)4!X1*8*3!"?!^cPPgIcPNN!B()80!@5'8((;!2()!F*3!Y(+,-'*&+?^!B()80!@5'8((;!`-3()'!cPPgIcPNNR!
F*3!Y(+,-'*&+!UM3)?!cPP]WR!NIN[]?!d5+*/-++!>(5)&-!Y(,38-'-?!d>Y@?!zF*.)#)6!/#,-{4!zY*'6{4!
z>'#'-!#..)-7*#'*(/{?!c[!u#/?!cPPO!
v1''3Rpp+-#)&1?-.+&(1(+'?&(,p8(A*/?#+3$s0*)-&'w')5-_0.w.'1_MQwcPZgPVSN_+*'-w-1(+'I
8*7-_+&(3-w+*'-x?!
!
X#);+4!F*C?!:"#;*/A!#/('1-)!Y(7-)!T*)8!*+!/('!*/!X_Tf+!"#$!%#&'()!38#/+?<!b)5A!>'()-!Q-=+?!"#)&1!Ng4!
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>3#/*+1!Y(+,-'*&!E(*8-')6!#/0!X-)25,-)6!M++(&*#'*(/!U===?+'#/3#?-+W!
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1''3Rpp===?3A?&(,p&(,3#/6p=1(t=-t#)-p,#$t2#&'()t1*+'()6?+1',8!e!
1''3Rpp===?3A?&(,p-/tL>p3)(05&'+p#88t3)(05&'+p*/0-$?+1',8!!
! ! 14
!
- 15. Exhibits
Exhibit 1: Image of Max Factor Spain Website
!
!
!
Exhibit 2: Images of Max Factor Displays
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
Exhibit 3: Max Factor Lipstick Product Test
!
!!!
!
! ! 15
!
- 16. Exhibit 4: Consumer Survey
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! ! 16
!
- 17. T((0! Sgj! ! ! !
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b(/f'!;/(=! N]j! ! ! !
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! ! 17
!
- 18. Exhibit 5: Advertisements
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! ! 18
!
- 19. !
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Exhibit 6: List of Max Factor Innovations
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! ! 19
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