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MARKTING PLAN by Dee Inthamat
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Table of Contents Executive Summary !
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Situation (Environmental) Analysis!
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12 - 13
Sale Forecasting and Marketing Management! !
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Support Documents!!
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Strategic Planning, Goals and Assumptions!
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Executive Summary ! In the United States cosmetics industry is $7 billion dollar market. Many other cosmetics company are fighting to increase their marketing share in the industry pie. As competition grows, consumer have more choices and it becomes more difficult for one brand to stand out than another. In order to succeed in this industry, CoverGirl must have a strong brand image and have to separate itself from competitors. ! CoverGirl lipstick need to be position as a young brand for teens girl who can feel more beautiful by using our products. In order to make our new positioning happen, we can use price, promotion, distribution and reward loyal customers strategies to attract young women and get their attention to try our products. Not only we will gain more young audiences, we will have an opportunity to expand our market share,increase annual sale and to establish a wide brand recognition.
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Situation Analysis The company CoverGirl is an american cosmetic brand founded in 1960 in Maryland, by the Noxell company and acquired by Procter and Gamble in 1989. “CoverGirl understands the transformative effect makeup can have not just on the outside, but the inside as well.” Mission ! CoverGirl offers a wide variety of cosmetics available at reasonable price. Campaigns ! CoverGirlʼs initial marketing strategy had been to saturate magazine covers with well known supermodels such as Niki Taylor. The campaigns successfully launched its own products into different households and present strong brand equity, a trusting image, and many loyal consumers. Products “Make up for every women, every age” LIP STICK NatureLuxe Gloss Balm, ShineBlast LipGloss, Wetslicks Amazemint, Wetslicks Fruit Spritzers, Wetslicks LipGloss, Outlast Double LipShine, Lipslicks, Queen Collection Lip Gloss
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Target Analysis
According to Nielson Spectra product snapshot, cover girl lipstick始s target market has been highly caucasian, black and other nonhispanic woman between the age of 25-44 and 55-64. Distribution in mass retailers allowed easy access to target markets. Majority of these women live highly live in affluent suburban spreads and comfortable country. These demographic mostly rent a place instead of owning a home and most of them have a wide range of income.
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Target needs and wants ! The marketplace need CoverGirl lipstick because we have many different varieties of lipstick available for the consumer. Not only the best quality of the lipstick we offer a reasonable price to the consumer. Every women want be beautiful and with CoverGirl lipstick we can help them. There are many celebrities who promote our brand. We are a very well known brand. Phycological ! Most of women want to feel beautiful and be more confident about themselves. Cover girl lipstick offer many different kinds of variety of lipstick with reasonable price. Women can buy cover girl lipstick and feel more beautiful. Thereʼs no need to hide your beauty CoverGirl lipstick and make women feel confident about themselves and ready to show their beauty to the world. ! Underserved Target Segments ! From Nielsen spectra product snapshot, all families who live in Struggling Urban cores has a very low index number. We might need to focus more and do more promotion in this area. Market Analysis ! With CoverGirl slogan, “Easy, Breezy, Beautiful...CoverGirl”, it was positioned as low cost but good quality cosmetic provider. CoverGirlʼs initial marketing strategy had been to saturate magazine covers with well-known supermodels. The campaigns successfully launched the products into a trusting image and have many loyal customers. It became one of best brand in cosmetic category. However, there are more competitors entered the market, such as Bon Bons, Revlon, and Maybelline. Market size: CoverGirl is the leading cosmetic brand in the U.S. market with over $700 million in annual sales.
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Sales History (BCRC) or 2006 User History (MRI) CoverGirl 124.2 ($million) Category: cosmetic 600 ($million)
2007
2008
2009
2010
Trend UP or Down
120
115
116
116
Same since 2008
584
556
564
561
Down
Cosmetic Lip in Market Share
CoverGirl
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4P始s Analysis Product : CoverGirl Lip perfection - Beautiful, rich color - Transformative Silk moisturizing complex - Moisturizing formula helps create soft, smooth, beautiful lips in just 7 day Price: Target $5.94, Walgreens $7.49, CVS $7.99 Place: Drugstores, Grocery stores, makeup store such as ULTA, Online. In store Merchandising CoverGirl ensure that all stock keeping units are in proper place, and aisle and displays are arranged in to achieve the most visual affect (Next to the cosmetic register station at stores).
Promotion: coupons, buy one get another half off. Trend: over 80 years ago lipstick was a symbol of sexuality. The culture has changed and they way people think of lipstick changed too. Now, Lipstick is a symbol of beauty. Women wear lipstick because they feel more beautiful and more confident. Fashion has the most affect how consumer choose the cosmetics and lipstick color. The ingredients of the lipstick were changing from time to time. Now, some lipstick has SPF to protect your lip from the UV. Technology plays the big role of how lipstick make. Some consumer might not like any lipsticks that has chemical in them, so many company came up with organic lipsticks and become environment friendly.
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! CoverGirl has many varieties of lipstick color and to keep the company in trend we need to follow the fashion world. We have to know that color is in right now and push that lips color by using promotion and advertising. Also we have to understand the consumer what do they want. The ingredients has to be save for the consumer as well. Lipstick trends Time Line Dark red was one of the most popular shade throughout the 19th and 20th century 1930s lipstick was seen as symbol of adult sexuality 1940s Books and magazines warned girls that wearing cosmetics could ruin their career 1950s 2/3 of teenage girls wore lipstick because of Marilyn Monroe and Elizabeth Taylor. 1950s chemist Hazel Bishop promoted her invention of long-lasting, non-smearing “kissproof” lipstick (“stay on you..not on him) 1960s White or nearly white lipstick was popular. Lipstick was associated with femininity. 1970s Many cosmetic companies introduced lipstick in more unusual color such as blue, green. Late1970s black lipstick was popular. 1980s introduced the lipstick changes color after it is applied. 1990s lipstick color became semi-matte. Brown was very popular 21st Century, Pearl shades became very popular
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Competitive Analysis
Swot Analysis Strengths -Promotion through big celebrities -Many varieties and color -Well known brand -Products are promoted in several different channels - Many distributions Opportunities -Partner with salons to expand the market -Better promotion through advertisements on TV and magazines -Younger Audience, the younger audience can become a long term customers.
Weaknesses - Cannibalization - Short time to promote new color
Threats - Many competition - Rumors about CoverGirl cosmetics using animal testing to test its products - Price Wars
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Competitive Set: Who?
Strengths
Weaknesses
Price
Burts Bees
Budget-priced, good lip gloss, all-natural
poor selection of lipstick color, unattractive packaging
$2-$8
Earth-friendly natural skin care, natural beauty and natural personal care products.
People who care about earth, organic and environment
Maybelline Color Sensational
Good rating, excellent varieties of lipstick color
Average quality
$5.59-$12.00
Make up and cosmetics for women.
Women age 16 to 25
Revlon colorstay
Beautiful selection of elegant lipsticks, worthwhile specialty products
Lack the right UVAprotection, too expensive
$7.99 - $9.00
Glamour, Excitement, and Innovation through Highquality
Women age 15 to 40
N.Y.C. New York color
Inexpensive, good lip glosses, several outstanding best buys.
Limited options
$1.99-$4.99
Bargain cosmetics for the fashionforward girl. Uptown Style, Down to Earth Prices
Women age 16 to 25
Consumer Perception Primary Research Survey Conclusion - Most of people buy lipstick based on Varieties and Loyalty - CoverGirl lipstick始s price was not an issue.
Image
Target Audience
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Strategic Planing, Goals&Assumptions Insights/Strategies and Initiatives Gap Analysis ! Considering information from Spectra there is a hugh gab between young and old cover girl lipstick consumer. The survey that we also collected show that the majority people buy the lipstick based on varieties and brand loyalty. Since we already have many varieties for colors we can focus on brand loyalty and how we can make our targets to continue use our products and not switch to use our competitors brands. Critical Issues: 1. Selling the ideas of CoverGirl lipstick to young women we need to create a young image for the product. 2. Our competition has many promotion deals and consumer tend to buy lipsticks from them because of the specials offered. 3. No generate trails. 4. No campaigns for lipstick. Keys to Success: 1. The primary key to success is to be able to positioning itself as a brand for younger women. Make the positioning clear because you want to deliver the right message that when you think about CoverGill lipstick it始s about young, fun, beautiful, natural and fresh for teens girls. 2. Need to create more promotion deal such as coupons or use other promotion technique to draw attention from teens girl to buy our CoverGirl lipstick. 3. We need to generate trail of CoverGirl lipstick to young women in order to get them to be interest in the new CoverGirl lipstick positioning. 4. We need to have a young beautiful girl spokesperson for CoverGirl lipstick, create more campaign that teens will be interested to join. Positioning Strategy ! CoverGirl lipstick need to be position as a good quality lipstick and affordable brand for young women. The positioning of CoverGirl lipstick has everything to do with beautiful, natural, fun and every women want to have the lipstick. We will focusing on the teenage lifestyle. Target Market Strategy: ! CoverGirl lipstick始s current target market are every woman from age 16-65+. Only really young women and senior women buy our product and there is a huge gap between these age and because those middle age women are left out We have been trying to reach all the women to use our products but it is very difficult to have our targets on everyones. We need to focus on only one target which are YOUNG WOMEN, this potential target will be a benefit to our company in a long term because they will continue to use our lipstick when they始re getting older as well.
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Life-Cycle Strategies: ! Current CoverGirl lipstick is reaching the maturity in the product life cycle. People are still using the products but soon our product might reach the decline point. We need to prevent our product from reaching to the decline point by reposition the product. Financial Objectives - To increase revenue by 5% annually. - Increase 5% in cosmetic market share by the end of 2012 - Reduce extra spending on some marketing budget. Marketing Objectives - Increase sale by 5 % - Increase product awareness of teenager - Experience an increase new customers who will turn into long-term customers. - To establish a wide brand recognition through the capture of market Marketing Strategies and Tactics ! To achieve our marketing and financial objectives we need to have the best strategies and tactics for the plan. CoverGirl will be strategically targeted towards a younger audience while increasing more sale as well. The following strategies and tactics will be applied Strategy #1 Position ! Tactics - Create awareness by using advertisements, magazine, newspapers, television, young celebrities as a brand speaker to help CoverGirl lipstick present our lipstick are for young beautiful women. Strategy#2 Promotion ! Tactics - Increase more coupons, FSI, generate trail, and offer membership discounts. Strategy#3 Award brand loyal customers ! Tactics - special gifts, website sign up for free fashion show tickets. Strategy#4 Pricing ! Tactics - PR campaign, Caused-related program on our products that will benefit for other organizations that help young women. Strategy#5 Distribution ! Tactics - Host events at fashion show, malls, salons. Street teams.
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Sales Forecasting &Marketing Management Forecasting and metrics Forecasting ! ! The information below are potential CoverGirl lipstick budgeting forecast. We need to make sure that we don始t spend the right amount of money on Marketing budget and the sale will increase 5% by 2012 and so on the next following year.
Marketing Measurement and Metrics ! The measurement and metrics are very important step, in order to understand the brand that we are progressing in the right track and become a successful brand. To measure our distribution growth, the accounting and Sale department should track the percent of Cover Girl Lipstick sale in the beginning of the year until the end of the year. Every marketing dollar must be measured including promotions and advertising. By keeping track on the spending and sale revenues we can make our company continue to grow and make our marketing more effective.
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Support Documents! Primary Research http://www.surveymonkey.com/ Websites http://www.covergirl.com/ http://en.wikipedia.org/wiki/CoverGirl http://www.pg.com/ https://www.spectrainfinet.com/ http://adage.com/ http://greenstertribe.com/ http://prfectworld.wordpress.com/ http://www.highbeam.com/ http://www.cheapism.com/ http://www.insidecosmeceuticals.com http://www.burtsbees.com/ http://www.maybelline.com/ http://www.revlon.com/ http://www.newyorkcolor.com/ http://www.fda.gov/
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Survey Questions 1.Do you use lipstick? Yes No 2 . Please rank the importance of the following attribute when you buy lipstick by selected at number 1 -4 with 1 being the worst rating and 7 being the best *YOU MAY NOT USE ANY NUMBER TWICE Price 1!
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3. Please rate Cover girl lipstick on the following attribute with 1 being the worst rating and 7 being the best: Price 1!
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4. Please rate Revlon lipstick on the following attribute with 1 being the worst rating and 7 being the best: Price 1!
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5. Please rate Maybelline lipstick on the following attribute with 1 being the worst rating and 7 being the best: Price 1!
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6. Please rate Bon Bons lipstick on the following attribute with 1 being the worst rating and 7 being the best: Price 1!
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7. What is your gender? Male Female 8. What is your age? 21-24 25 - 34 35 - 44 45 - 54 55+ 9.What is your income? Less than $30,000 $30,000 - $39,000 $40,000 - $49,000 $50,000- $75,000 $75,000 - $ 99,000 $100,000 or more