Principles Of Marketing Group Assignment Research On The Marketing Of Maybelline In Vietnam.pdf

PRINCIPLES OF MARKETING GROUP ASSIGNMENT

Research on the marketing of Maybelline in Vietnam

Class: MKT1613 Group 3:

1 CAO QUOC THANG 2 NGUYEN THI KHANH LINH 3 PHAM DOAN KHANH LINH 4 HOANG THANH PHUC 5 NGUYEN DUONG CHI Subject: MKT101

Lecture: Mrs.Tran Dieu Thuy

TABLE OF CONTENT I INTRODUCTION

A Maybelline New York B The product’s STP

1 Segmenting 2 Targeting 3 Positioning

II BUSINESS ENVIRONMENT ANALYSIS A Macro environment

1 Demographic 2 Economic 3 Technological 4 Natural 5 Political 6 Legal 7 Cultural

B Micro environment 1 Market overview

2 Customer analysis (5W1H)

3 Competitor analysis (2 direct competitors) 4 Other factors (supplier, intermediaries, publics…)

III THE COMPANY’S CURRENT MARKETING MIX (4Ps) A Product

B Place C Price D Promotion

IV CONCLUSION & RECOMMENDATIONSV REFERENCES

Research on the marketing of Maybelline in Vietnam

I.INTRODUCTION A.Maybelline

Maybelline is a cosmetic brand specializing in affordable makeup products founded in the US in 1915 By combining the two words Mabel and Vaseline, the name Maybelline was born Maybelline is a subsidiary of the French group L'Oréal After more than 100 years of establishment, Maybelline is present in more than 129 countries worldwide Maybelline is widely loved for its quality products at extremely affordable prices.

→ With a hundred-year history of brand formation and development, Maybelline New York owns a list of the most popular brand ambassadors in the world with the names: Jessica White, Adriana Lima, Dong Nhi,…

→ Maybelline New York specializes in the invention and production of a wide range of cosmetics It includes skincare, fragrance, and personal care products for women

→Maybelline was officially present in Vietnam in 2007 and so far has become one of the most popular cosmetic brands in the market in Vietnam Maybelline products are everywhere from supermarkets, beauty stores, convenience stores, grocery stores… Holds the No 1 position in the mascara line and is the top brand in the product line products for face and lips.

B.The product’s STP1 Segmenting

Segmentation of cosmetics industry in Vietnam

Student/younger person

- Age: 16 - 22 - Gender: Female - Geography: nationwide - Race: Asian

- Income: 3-4 million VND - Lifestyle: strivers,

- Hobbies: color, quality, packaging, brand… - Need: beauty products

- Loyalty status: medium

at affordable prices, beautiful packaging, youthful colors

- Behavior: spend a lot of time online, care about appearance, and be influenced by famous people

Office workers, commuters

- Age: 23 - 30 - Gender: Female - Geography: nationwide - Race: Asian

- Income: 8-20 million VND - Lifestyle: strivers and Achievers - Hobbies: color, product quality, - Need: beauty products, makeup, skincare - Loyalty status: medium, strong

- Consumption of cosmetics: mid-range or high-end cosmetics, good quality products, luxurious designs, youthful colors, high color fastness

- Behavior: online for short breaks, care about appearance, searching behavior, and scrutinizing product ingredient information

Older people, business people

- Age: 30 - 45 - Gender: Female - Geography: nationwide - Race: Asian

- Income: 15-30 million VND - Lifestyle: Achievers - Hobbies: product quality

- Need: beauty products, mainly skincare products - Loyalty status: strong, absolute

- Consumption of cosmetics: high-class cosmetics, good quality products, luxurious designs, youthful colors Anti-aging skincare products

product ingredient information Carefully consider the right product

2 Targeting

Maybelline focuses on the segment of Student/younger person and Office workers, commuters in the age range from 20 to 30 years old The brand's products are increasingly spread in many countries and have also obtained certifications for their company's ingredients

II.BUSINESS ENVIRONMENT ANALYSIS A.Macro environment

The first contextual component that marketing managers need to pay attention to is the population because the population makes up the object Maybelline targets female customers in Vietnam between the ages of 18 and 35 While the female population in Vietnam accounts for more than 50 percent and the average age falls between 18 and 33, this shows the first advantage of this brand when entering the Vietnamese market

More than half of Vietnamese women when asked said they put on makeup at least once a week and 30% said they put on makeup every day This depends on the nature of work and income of each person L'Oréal leaders said, while L'Oreal product sales in some other markets grow only 7 - 8% a year, in Vietnam, there are times when sales increase up to 17% a year Vietnam was once assessed by Watsons as one of the potential markets Currently, Maybelline is present in Hanoi, Sai Gon, Da Nang, Nghe An, Hue, Dong Nai These are large cities with a tourism-oriented direction of Vietnam with a higher percentage of female population than male population This also helps the brand's product consumption in Vietnam become more convenient

Due to extensive economic integration, Vietnam's economy was heavily affected by the 19 pandemic, but also showed considerable resilience GDP growth is estimated at 2.9% in 2020 Vietnam is one of the few countries in the world with positive economic growth A recent survey

COVID-women use and spend more on make-up products, on average they pay 300,000VND per month for makeup Consumption on makeup products has increased by 5.4% since 2016, people with high incomes will spend more on beauty products Specifically, a Vietnamese woman with an income of more than 20 million VND/month will pay 442,000VND on beauty care products and an income under 10 million VND/month will only be 215,000VND

According to MarketingAi, Maybelline is considered one of the world's famous cosmetic brands trusted by many Vietnamese women Maybelline is loved in Vietnam for its outstanding quality, diverse designs, and affordable prices If you are a make-up fan, you should definitely not ignore this brand

According to the survey, the need for women's skin care is increasing Vietnamese women buy cosmetics once a month or once every two months This shows that the consumption of cosmetics by cosmetic companies in Vietnam is very high A famous brand like Maybelline will not worry about bankruptcy when entering the Vietnamese market!

In response to changing customer needs, the fashion industry has evolved from product commitment to enhanced customer experience, much of it enabled by technology The US is now a very developed country, so the cosmetic industry here is also among the top in the world Applying advanced technologies as well as the monitoring of leading cosmetic experts, Maybelline's products always satisfy customers

Maybelline products are fragrance-free, manufactured using exclusive Micro Powders technology This is a technology that uses oil-free micro-powder particles, which helps oily skin women can also use it extremely well Besides, this technology also helps the cream to be very natural, skin color, and the ability to control oil effectively all day long This type of technology is applied to the brand's foundation products.

Vietnam is located in a tropical and subtropical climate with monsoons, sunshine, abundant rainfall and high humidity This helps Vietnamese women comfortably wear makeup in many styles.

With natural, safe ingredients and the advantage of being dry, non-irritating, suitable for all skin types, Maybelline is truly a "cosmetic god that conquers all types of weather".

While countries in the Middle East and Europe are suffering the heavy consequences of terrorism and epidemics Even countries in Asia are facing many difficulties due to the complicated epidemic However, Vietnam is still a peaceful country, able to control the epidemic well and maintain a stable economy Compared with other countries that are facing many difficulties and uncertainties, investing in Vietnam is a wise decision for investors.

However, the prolonged Covid 19 pandemic also had a significant impact on many businesses,

delivery process, which really upsets customers.

Vietnamese law stipulates that cosmetic advertising must have the following contents: Name of cosmetics; Features and uses of cosmetics; Name and address of the organization or individual responsible for bringing the product to market Do not advertise cosmetics that mislead the product as a drug Cosmetic advertising in newspapers and magazines must read the contents of the name, features, uses, and warnings of international agreements.[3]

This has implemented Maybelline's advertising strategies to be more carefully considered and executed Up to now, Maybelline has not encountered any legal problems in Vietnam It can be said that they are implementing the Marketing strategy quite well and carefully.

Vietnamese people consider beauty to be a very important issue and worth investing in From the past until now, Vietnamese people still prefer the trend of daily makeup in a natural style Therefore, cosmetic brands when investing in Vietnam need to have a way of seeing and producing products that are suitable for Asian and Vietnamese markets.

Vietnamese young people are becoming more and more active and love beauty They like to beautify themselves and make themselves more confident Young people are the target market that cosmetic companies need to target.

Currently, the culture develops, not only women but also men are using cosmetics for artistic and beauty purposes Therefore, we should not ignore this potential market

That's why Maybelline needs to pay attention to this customer group by finding male celebrities to advertise its products to attract more male buyers and the LGBT community.

Traditional advertising is no longer really effective for young Vietnamese Instead, we should invest in advertising on social networking sites and e-commerce.

B.Micro environment

According to Mintel, a market research firm based in London, the Vietnamese cosmetics market was worth $2.3 billion by the end of 2018 This is a potential market, because of the middle class in Vietnam In 2021, there will be an estimated 33 million people

Maybelline New York is the number one cosmetic brand globally and is present in 129 countries worldwide Offering more than 200 products, Maybelline New York combines technologically advanced formulas with expert knowledge of trends to create accessible cosmetics that exude elegance, style, and spirit

In 2007, L'Oréal Group (France) decided to open a branch in Vietnam, carrying the brands Lancome, L'Oréal Paris and Maybelline New York This brand said that while sales of L'Oreal products in some other markets are only 7-8% / year, in Vietnam, there are times when sales increase up to 17% / year Maybelline has become the leading cosmetic brand in the mass market, used especially by young Vietnamese women

2.Customer analysis

Potential customers of the cosmetic industry are generally female, with a small percentage targeting men (for face makeup, eye and lip makeup) Customers are mainly people who have a hobby of beauty, are interested in beauty products, note that this product is important for prestige, high trust, and has specific feedback and evidence when using these products Below is 5W1H for Maybelline NY cosmetics:

Who When Why

-Age: 16–35

-Gender: female, a small part of male target (beauty blog) -Urban areas

-Hobbies: beauty, interested in beauty products, women, fashion depending on the segment

-Usually online during lunch breaks, sale hunting season, sale time frame

(hour/day/month/year)

-Common customer problems and solutions Beauty needs in women, girls must be beautiful -Women take a lot of time to find a product that is right for them, suitable for the price Product requirements are diverse, branded, with beautiful packaging design

What How Where

-Professionalism With a mission to bring edgy beauty to women, Maybelline products with advanced scientific formulas are revolutionary and professional from the catwalk to active street style or casual streetwear day -Leading the trend

-Affordable

In this section, brands need to know the consumer buying decision process:

S1: It should be recognized:

S2: Search for information:

-Must-have cosmetics, eye makeup, lip makeup, beauty cosmetics

S3: Selection

-Online: The act of searching and carefully referring to product information

-Forum: Facebook, Google, e-commerce platform (about selling fashion items, trading groups, Eva confiding groups, cosmetic review groups) -Offline: Street behavior

decision

S5: Reaction after purchase

Understanding the consumer buying decision process helps brands define the customer journey, thereby creating relevant and effective marketing campaigns This process is divided into 5 steps The HOW section will help the brand answer and deliver what the customer needs to make the customer happy and lead to a purchase decision

According to the customer buying decision process Maybelline will form the process of approaching customers:

In step 1, when customers have a need, Maybelline needs to promote advertising and reach customers through marketing that will make customers curious about their products Step 2 When users conduct a search, Maybelline can cleverly provide information for customers to decide to buy your product

In the final steps in the purchase decision process, Maybelline needs to pay attention to the factors affecting the purchase decision such as functions, attributes of the product, the use of the product, the convenience of use, pricing, etc., and collect reviews to become a choice for future returning customers

Vietnam is considered as a potential billion-dollar cosmetic market, so any cosmetic brand can dominate this market With such a potential market, in addition to Maybelline NY, there are many popular cosmetic systems dominating such as Revlon, Inc is an American or Innisfree is a South Korean Below is a comparison table between these 3 popular brands

Competitors Criteria

Brand & Products Competitive advantagesAbout Brand Products Logo n Slogan

Direct Maybelline NY

Maybelline New York, LLC, trademarked as L’Oréal USA, Inc Founded in 1915 Today, Maybelline is a leading global brand in the cosmetics industry It has its presence in about 129 countries worldwide

Best foundation for dry skin, mascara, lipstick, blush, eyeshadow, and brow gel

“Maybe She’s Born With It Maybe It’s

Maybelline”

Maybelline LLC is a cosmetics company created brand awareness was deemed valuable and of top quality Maybelline is one of the top cost-efficient companies in the personal care industry The cost-efficiency provides the company an opportunity to penetrate into a different market