Brand Extension Strategy for Maybelline: Launching New Deodorants
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This report discusses the brand extension strategy of Maybelline in launching new deodorants for women. It includes an analysis of the existing brand and brand values, the new market, the new product, competition, and concludes with the potential opportunities for Maybelline.
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Table of Contents Executive summary....................................................................................................................3 INTRODUCTION...........................................................................................................................4 Methodology...................................................................................................................................4 Findings...........................................................................................................................................5 Existing brand and brand values................................................................................................5 Analysis of new market..............................................................................................................5 Explanation of new product.......................................................................................................6 Competition................................................................................................................................6 Conclusion......................................................................................................................................7 Reference.........................................................................................................................................8
Executive summary Brand extension is known as strategy for launching new product within market. The present research is based upon launching a new product in new sector by a well known brand. In the present report, Maybelline is launching new deodorants for women. For analysing the behaviour of customers, questionnaire is used for knowing their preference towards this new deodorant.
INTRODUCTION Maybelline LLC is a brand of New York and this is a major American makeup brand which is sold worldwide. This company was created by a young lady naming Thomas Lyle Williams in the year 1915. The main aim of this report is to demonstrate information regarding the new product developed by this company naming the“Maybelline deodorants”. The market share of Maybelline is around 11%. This company has proven to be be one of the best cosmetic selling products of the world. Methodology Research methodology is defined as the way by which investigator collects data for making interpretations(Baek and King, 2015). The following research is conducted for analysing the consumer behaviour towards new product launched by Maybelline i.e. Deodorants. A primary research is conducted for knowing whether people are linking this new product or not. Questionnaire is usedfor gathering information about customer's preference. Tester deodorants are given to various people and a research is conducted for knowing their preferences. These people applied this deodorant for a week. The questionnaire is given below - QuestionsFrequency Q1) Do you like the new deodorant of Maybelline? a) Yes7 b) No3 Q2) Do you trust Maybelline brand? a) Yes8 b) No2 Q3) Will you use this deodorant in future? a) Agree6 b) Disagree4
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Findings Existing brand and brand values Kapferer Brand identity Prism –The different phases of this prism are mentioned below - Brand Physique– This means that brand must have physique which includes qualities and specifications. Maybelline is a well known brand and it is liked by all customers across the world. Brand personality –The brand must have a personality(Evangeline and Ragel, 2016). The way in which brand speaks is most attractive about the product or service offered by the brand. Maybelline is a brand that provide good quality cosmetic products. It is known for it's high quality ingredients. Brand culture -This means brand is having it's own culture. The brand culture plays an important role in this prism. This is helpful in identifying brands. Relationship -The building of relationship among customers and brand is also important as it helps in enhancing market share of the company. Reflection– The brand is customer reflection. Maybelline isa brand for teenage girls and women of around 40 years. Self image -Brand develops attitude towards certain brands and there is development of some type of inner relationship. Description of the target market –The target audience chosen for the new product – Maybelline deodorants is millennials and this group includes customers of young age. This product is specially made for young girls and women. Analysis of new market PESTEL analysis– The PESTEL analysis for the new product i.e. Deodorant of Maybelline discussed in the presentation defined that there are two factors of PESTEL that affects the legal and social factors(Uggla, 2015). The main problem faced while launching new deodorant within the marketplace is legal factors. There are some regulations on making deodorants which the company has to follow(Ferguson, Lau and Phau, 2016). As per the government laws, Maybelline has to launch new deodorant in market. It is ensured that this product must not harm environment. Moreover, the social factor that affects this new deodorant
is customer preference towards this deodorant. Every customer like different fragrance and ambience. These deodorants are liked by some and disliked by others. Ansoff matrix –According to this model, it is essential for strategic planning of a business that revenues must grow by developing new products and services. The four different strategies present within the Ansoff matrix are mentioned below - Market penetration -According to this strategy, there is need of market share growth, customer loyalty and customer value improvement(John, 2016). As per this factor, the company has to provide the existing product to the already existing customers. Market development -According to this step, a new product is launched in market and the target audience are same. Product and development –This step includes providing already existing products to the new customers. Diversification -This stageincludes launching of new productto new target audience (Lane and Fastoso, 2016). The main motive of this step is to launch new product to new target audiences. Maybelline has used this strategy for launching new deodorant within market. Explanation of new product Tauber is known as the father of Brand extension. The brand extension research has developed proprietary methods for identifying strategic brand extensions. There are different brand extensions which have succeed because of strategic brand strategies. Reverse ideation is a method for brand extension. The main goal for the brand extension is to find out the new product, diversify intoa new growth category and protect the current business from industry outsiders which can extend brand into existingindustry. There is great advantage to companies if they did brand extension effectively(Moon and Sprott, 2016). This is an alternative for acquisition or merger. Maybelline is a well known brand and it has opportunities within market for grabbing a lot of customers by providing them new products and services(Pontes, Palmeira and Jevons, 2017). The new deodorant offered by Mayeblline is specially made for young girls and women and this is offered in four different fragrances. Competition Fromevaluating the two brands Maybelline and Avon, it is analysed that there are various opportunities with Maybelline for attracting a lot of customers towards their new
deodorants(Sinapuelas, Wang and Bohlmann,2015). This company provides products across the world and products of this company are liked by a number of customers. Conclusion From the above discussion, it is concluded that Maybelline is a company which has good brand image(Swaminathan, 2016). This has various opportunities within market. Different customers will be attracted by the new product launched by this company. Brand extension will help this company in increasing sales and revenue.
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Reference Books & Journals Baek, T. H. and King, K. W., 2015. When comparative valence frame affects brand extension evaluations:Themoderatingroleofparent-extensionfit.InternationalJournalof Advertising,34(2), pp.382-401. Evangeline, S. J. and Ragel, V. R., 2016. The role of consumer perceived fit in brand extension acceptability.IUP Journal of Brand Management,13(1), p.57. Ferguson, G., Lau, K. C. and Phau, I., 2016. Brand personality as a direct cause of brand extension success: does self-monitoring matter?.Journal of Consumer Marketing. John, D. R., 2016. Customer-based strategic brand management: past progress and future challenges.AMS review,6(1-2),pp.17-22. Lane, V. R. and Fastoso, F., 2016. The impact of repeated ad exposure on spillover from low fit extensions to a global brand.International Marketing Review. Moon, H. and Sprott, D. E., 2016. Ingredient branding for a luxury brand: The role of brand and product fit.Journal of Business Research,69(12),pp.5768-5774. Pontes, N., Palmeira, M. and Jevons, C., 2017. Brand expertise and perceived consistency reversalsonverticallineextensions:Themoderatingroleofextension direction.Journal of Retailing and Consumer Services,34, pp.209-218. Sinapuelas, I.C.S., Wang, H.M.D. and Bohlmann, J.D., 2015. The interplay of innovation, brand, and marketing mix variables in line extensions.Journal of the Academy of Marketing Science,43(5), pp.558-573. Swaminathan, V., 2016. Branding in the digital era: new directions for research on customer- based brand equity.AMS review,6(1-2), pp.33-38. Uggla, H., 2015. Aligning Brand Portfolio Strategy with Business Strategy.IUP Journal of Brand Management,12(3).