GGU MKT 302Professor Dr. Chet ChaffeeSpring 2013Piyanuch Kangwankijwanich (Tu)Wanich Hathagitjamroen (Hui) Kanokwan Watkum(Wan)

SMART BeautyBy Maybelline

AGENDA Introduction SWOT Analysis Competitors Targeted Customers Business Objectives

Product Positioning Product Life Cycle Price

Distributions Promotion and Communication People

References

SMART Beauty

INTRODUCTION Lipstick is a product that is used daily by women,

and there are rumors about lead contamination. Maybelline lipstick color FF 205 or Pink Patel

contained the highest lead.

Benefits for Maybelline IF it launches green cosmetics Lessen notorious reputation Create competitive advantage over competitors by

improving the brand image Decrease production costs in a long-term

SMART Beauty

Posted by Dr. Claudia Pirisi, Oncologist. Dr. Elizabeth Ayoub, biomolecular and medical is issued an alert for lipsticks containing lead, which is a carcinogen. The brands that contain lead are:

CLINIQUE, ESTÉE LAUDER, SHISEIDO, RED EARTH (Lip Gloss), CHANEL (Lip Conditioner), MARK AMERICA, MOTIVES LIPSTICK, AVON

Take this test:1. Put some lipstick on your hand2. With a gold ring on this lipstick pass it3. If the lipstick color changes to black, then you know that contains lead

LEAD IN LIPSTICK

SMART Beauty

SMART Beauty

• Strong R&D teams • Strong supply chain

• Like-mind celebrity• Intelligent & stylish image

• Product testing on animals

• Low price positioning

• International cosmetic brand

• Alternative choice for green consumers

• Intense competition

• High costs of advanced technological

COMPETITORS

Direct Competitors:

Indirect Competitors

SMART Beauty

TARGETED CUSTOMERS Women aged 16-45 who always

wear colored lipstick Moderate income and live in

major states such as New York, California, Illinois, etc.

Chic, modern, love fashion, health-conscious Price sensitivity Use public transportation, donate

to non-profit organizations 3R: Reduce (electricity usage),

Reuse (tote bag), Recycle (waste)

SMART Beauty

BUSINESS OBJECTIVES

LONG-TERM GOALS SHORT-TERM GOALS• C2C LCA• zero waste• Reduce carbon footprint• Energy effectiveness and

efficient• Decrease production costs• Support local communities

• Packaging scorecard • Waste/recycling audit • Sustainable plants and

building • LEED Accreditation • Animal welfare policy • Cross-functional working

groups • Training process• Increase sales 5%

quarterly • 30% of the market share • 50% customers’

awareness

SMART Beauty

POSITIONING

Premium

Organic Glam SKII

Dior

Origin Elizabeth Arden

keilh Clinique

Clarins

100% natural 0%natural

Smart Beauty

Body shop Maybelline

Revlon Neutrogena

Mass

SMART Beauty

PRODUCT LIFE CYCLE

Raw material 100% natural ingredients No harmful effects for humans Botanical oil: moisture and smooth Super plants: natural colors

Packaging Ingeo producer Nature Works Biopolymer (from plants) 50% less GHG 30% less non-renewable energy (than PVC)

SMART Beauty

Supplier Well-managed organic farm Require to comply with all laws Fair trade USA Educating farmer

Transportation UPS Sustainable company Reduces carbon footprint Top score on the CDLI (99 out of 100)

SMART Beauty

PRODUCT LIFE CYCLE

Manufacturing processes Sustainability trainings for employees Reuse,Recycle, and Reduce No toxins and heavy metals Wastewater treatement system Solar cell system

Retailer Non-toxic cosmetic retailers CVS, Walgreen, and Target Screening out the chemical products Communicate safety commitments

SMART Beauty

PRODUCT LIFE CYCLE

End-users and Disposal

Remain high performance Returning package policy

Discounts and gifts Promote recycle

Disposal processes Eliminate wastes Never leave toxins and chemicals

SMART Beauty

PRODUCT LIFE CYCLE

PRICE

Customers are price sensitive Price and Quality based strategy

Slightly higher than market price Product differentiation

SMART Beauty

DISTRIBUTION

SMART Beauty

Directly to Customers Online shopping and the mobile application provide more detailed product descriptions

Through Retailers Convenience stores and Drugstores e.g. Walgreens,

CVS/pharmacy, and drugstore Supermarkets e.g. WholeFood, Safeway University grocery stores Communicate the sustainable campaign quickly

Through Wholesalers Discount Stores: Wal-Mart, Target, and Costco Design the special sustainable packaging for large volume

orders

SMART Beauty

DISTRIBUTION

PROMOTION AND COMMUNICATION

Smart Beaut

y

Sponsorship

- PETA

- GEF

- PINK Make-up consultants

- Educate biochemical in

cosmetic

Internet

- Social media

- Blogger

Event Marketing

Public Relation (PR)

Sale promotion

- Co-branding

SMART Beauty

Sponsorship: donates funds to support three organizations

Animal Protection: The Ethical Treatment of Animals (PETA) Environmental Protection: The Global Environment Facility

(GEF) Human Right: The Pink Fund

PR press Promote the company’s products and sustainable activities Persuade the media outlets such as blogs, The New York

Times, The Wall Street Journal Event marketing

Promote product launching by tradeshow or roadshow Display products in the universities and offices

SMART BeautyPROMOTION AND COMMUNICATION

L'Oreal, Lancôme, MAC, Estée Lauder, Cover Girl, Revlon, Maybelline, Clinique, Olay, Neutrogena, etc.

It's not just rabbits and mice, it's cats and dogs too.

SMART BeautyANIMAL TESTING FOR COSMETIC PRODUCTS

Sale promotion offer special promotions created co-branding strategy: sustainable cosmetic bags Product redemption promotion: return getting a discount

Make-up consultants: Teach make-up artists the right method Use natural products and ingredients Educate to evaluate materials and labels in cosmetic products

Internet promotion Social media: Facebook, Twitter, YouTube, and Pinterest.

Provide product description details Update new product launching Promote PETA, GEF, and PINK information and activities updated

Make relationships with bloggers: TreeHugger, Committee to Protect Journalists Blog, and Animal Rights blog

SMART Beauty

PROMOTION AND COMMUNICATION

PEOPLE

Rotates employees to join non-profit organizations and boost ethics

Encourages employees to reduce environmental impact Reduce CO2 emissions: reduce electricity, gas

and diesel consumption. Reduce waste: separating the type of waste and

use recycled, reused, and repaired products and packages

Reduce domestic water consumption: minimize use through low-flush toilets, metering and other devices

SMART Beauty

REFERENCES About us. (n.d.). Retrieved March 29, 2013, from The Pink Fund website:

http://www.thepinkfund.org/about_the_pink_fund.php All about PETA. (n.d.).Retrieved March 31, 2013, from PETA website:

http://www.peta.org/about/learn-about-peta/default.aspx Environment. (2011). Retrieved from Corporate Sustainability Report of UPS: http

://www.responsibility.ups.com/community/Static%20Files/sustainability/ 2011_UPS_CSR_Environment.pdf

Environmental working group. (n.d.). Lipstick. Retrieved from http://www.ewg.org Ingredients Glossary. (n.d.). Retrieved from the Organic Pharmacy website: http

://www.theorganicpharmacy.com/health/expert-advice/organic-ingredients/173# Linda, C. (2011, March). Activia yogurt in bioplastic cups introduced to German market.

Retrieved from Packaging Digest website: http://www.packagingdigest.com/article/518409-Activia_yogurt_in_bioplastic_cups_introduced_to_the_German_market.php

Making A Difference. (n.d.). Retrieved from NatureWorks LLC website: http://www.natureworksllc.com/Product-and-Applications/Folded-Cartons

Romanowski, S. (2012, July). Color cosmetic. Mintel. Sustainable Development. (2008). Retrieved from SCG website:

http://www.scg.co.th/en/05sustainability_development/03_sustainability_report.html What is the GEF. (n.d.). Retrieved March 31, 2013, from GEF website: http

://www.thegef.org/gef/whatisgef Whole Foods Top Green. (2012). Retrieved from Environmental leader website: http

://www.environmentalleader.com/2012/12/12/whole-foods-tops-green-cosmetics-retailer-ranking/?graph=full&id=1

SMART Beauty