MAX FACTOR Brand Analysis

SECTION N3 CRISTINA ESTEPA ALEXANDER HANG FABIO MACHADO JOSEF SÄGMÜLLER SHOUNAK TARAFDAR MATIAS ZALDUA 05 MAY 2009

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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!

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Executive Summary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

Problem Statement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

Situation Analysis

Company "#$!%#&'()!=#+! 2(5/0-0! */!NOPO!#+! #! &(+,-'*&+! &(,3#/6! '#)A-'-0! '(=#)0+! '1-#'-)! #/0! '1-/! 8#'-)!,('*(/! 3*&'5)-! &(,3#/*-+?! ! "#$! %#&'()! &(+,-'*&+! -7(87-0! 2)(,! +-)7*/A! '1-#'-)! #/0! 2*8,!,#;-53!#)'*+'+4! '(! 2#+1*(/! ,(0-8+4! #/0! -7-/'5#886! '(! '1-! 1(,-! &(/+5,-)?! ! Q('#.8-! &(/')*.5'*(/+! */! '1-!&(+,-'*&+! */05+')6! */&850-R! '1-! 2*)+'! ,('*(/! 3*&'5)-! ,#;-53! */! NONS4! F*3! T8(++! UNOVPW4! X#/IY#;-!

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"#;-53! UNOVZW4! X#/I>'*;! "#;-53! UNOS[W4! \)#&-4! #! &(7-)I53! &(+,-'*&! UNO]SW4! #/0! '1-! 2*)+'!^=#'-)3)((2^!,#;-53!UNOZNW?!!X_T!35)&1#+-0!"#$!%#&'()!_!Y(,3#/6!2)(,!`-78(/!*/!NOON!2()!#!)-3()'-0!aN?NS!.*88(/!L>b4!/-#)86!0(5.8*/A!X_TG+!&(+,-'*&+!3()'2(8*(!#/0!#88-A-086!#&&-8-)#'*/A!X_TG+!&(+,-'*&+!=()80=*0-!-$3#/+*(/!.6!]!6-#)+?!!E1-! X)(&'-)! _! T#,.8-! Y(,3#/6! UX_TW4! 1-#0D5#)'-)-0! */! '1-! L/*'-0! >'#'-+4! ,#/52#&'5)-+! #/0!,#);-'+!&(/+5,-)!A((0+!=()80=*0-!=*'1!(7-)!NV]4PPP!-,38(6--+! */!,()-!'1#/![P!&(5/')*-+?!X_T!1#0!/-'!+#8-+!(2!(7-)!aZ]!.*88*(/!*/!cPPZ?!!X_T! *+! ()A#/*C-0! */'(! '1)--! T8(.#8! d5+*/-++! L/*'+R! d-#5'6e! H-#8'1! Y#)-! #/0! B-88Id-*/Ae! #/0!H(5+-1(80!X)(05&'+?! ! E1-!T8(.#8!d5+*/-++!L/*'+! #)-! '1-/! -$-&5'-0! #'! #! 8(&#8! 8-7-8! '1)(5A1!"#);-'!b-7-8(3,-/'! @)A#/*C#'*(/+?! ! M&&()0*/A! '(! X_T4! '1-! A8(.#8I8(&#8! ()A#/*C#'*(/! *+! 0(/-! '(R! 2(&5+! (/!&(/+5,-)+!#/0!(5)!)-'#*8-)!&5+'(,-)+!#'!#!8(&#8!8-7-8e!'#;-!#!A8(.#8!#33)(#&1!'(!.5*80*/A!8-#0-)+1*3!.)#/0+e!,#$*,*C-! '1-! 7#85-! (2! X_Tf+! +*C-! #/0! +&#8-e! #/04! '(! 3)(,('-! &(88#.()#'*(/! #/0! *//(7#'*(/!#&)(++!,58'*I25/&'*(/#8!'-#,+?!!X_T!2(),-0!X)(&'-)!_!T#,.8-!>3#*/!*/!NOg[4!#/0!&5))-/'86!-,38(6+!,()-!'1#/!Z]P!3-(38-!.#+-0!*/!"#0)*0! #+!=-88! #+! */!"#'#)h! Ud#)&-8(/#W4! =1*&1! *+! #!,#/52#&'5)*/A! 38#/'! 2()! X_T! 3)(05&'+?! ! X_T!>3#*/!#/0!X_T!X()'5A#8! 2(),!#!+*/A8-!.5+*/-++!5/*'!=*'1*/!X_T!B-+'-)/!\5)(3-!;/(=/!#+!Jd\`JM?!F-#0*/A! X_T! .)#/0+! */! >3#*/! */&850-R! M)*-84! %#*)64! b(/! F*,3*(4! X#/'-/-4! i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

Context E1-!,#;-53!,#);-'!*/!>3#*/!A-/-)#'-0!a]gZ?Z!,*88*(/!*/!+#8-+!*/!cPPZ4!+-88*/A!gN?]!,*88*(/!5/*'+!(2!,#;-53?!E1-!>3#/*+1!)-3)-+-/'+!]?]j!(2!'('#8!+#8-+!*/!B-+'-)/!\5)(3-4!#/0!*+!&(/+*0-)-0!)-8#'*7-86!+,#88! &(,3#)-0!=*'1! *'+!/-*A1.()+4!%)#/&-!#/0!T-),#/64!=1*&1!A-/-)#'-0!)-7-/5-+!(2!aN?g!.*88*(/!UN]?ZjW! #/0! aN?]! .*88*(/! UNS?SjW4! )-+3-&'*7-864! */! '1-! +#,-! 6-#)?! b#'#! */0*&#'-+! '1#'! '1-! 8#)A-)!,#);-'+!+5&1!#+!%)#/&-!#/0!T-),#/6!#)-!.-&(,*/A!+#'5)#'-04!=*'1!#!&(,3(5/0!#//5#8!A)(='1!)#'-!UYMT`W!05)*/A!'1-!3-)*(0!cPPVIcPPZ!(2!cj!#/0!N?cj4!)-+3-&'*7-86?!!E1-!>3#/*+1!,#);-'4!1(=-7-)4!*+!2()-&#+'-0! '(! A)(=!#'! #! YMT`!(2! S?Sj!(7-)! '1-!/-$'! 2*7-! 6-#)+4! )-#&1*/A! #!,#);-'! 7#85-! (2! aZPV?g!,*88*(/!.6!'1-!-/0!(2!cPNc?!!Ub#'#,(/*'()W!!!"#;-53! 3)(05&'+! #)-! A-/-)#886! 0*7*0-0! */'(! 2(5)!&#'-A()*-+R! ,#;-! 53! 2()! 2#&-4! -6-+4! 8*3+4! #/0! /#*8+?!%#&-! ,#;-53! */&850-+! .85+14! 8*D5*0! 2(5/0#'*(/4!3(=0-)! #/0! &(/&-#8-)?! \6-! ,#;-53! */&850-+! 8#+1!7(85,-4! 8-/A'1-/*/A4! -6-! +1#0(=! #/0! -6-8*/-)?! F*3!,#;-53! */&850-+! 8*3+'*&;4! 8*3! A8(++4! #/0! 8*3! 8*/-)?!!Q#*8+!3)(05&'+!*/&850-!/#*8!3(8*+1?!!!!J/!>3#*/4!'1-!,#);-'!7#85-4!()!3-)&-/'!(2!'('#8!+#8-+!(2! ,#;-53! */! cPPZ(2! -#&1! (2! '1-+-! 3)(05&'!+-A,-/'+!*+R!2#&-4!Vcj4!-6-+4!VN?Sj4!8*3+4!c]?cj4!#/0!

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Makeup Sales in Spain by Category!

Face!

Eyes!

Lips!

Nails!

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/#*8+4!NN?Sj?!!!%#&'()+!'1#'!,#6!#22-&'!'1-!,#;-53!,#);-'!*/!>3#*/!*/&850-!'1-!(7-)+*A1'!#/0!)-A58#'*(/!(2!,#;-53!3)(05&'+! .6! '1-! \5)(3-#/! L/*(/?! J/! c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b(7-G+!:')5-!.-#5'6<!#/0!:-7(85'*(/<!&#,3#*A/+4!,-/!#/0!=(,-/!#)-!.-A*//*/A!'(!&1#/A-!'1-*)!3-)&-3'*(/+!#.(5'!.-#5'6!#/0!'1-!5+-!(2!.-#5'6!3)(05&'+!0-+*A/-0!'(!&(7-)!53!()!&1#/A-!(/-G+!#33-#)#/&-?!\7*0-/&-!*+!#8+(!#33#)-/'!*/!'1-!,#);-'4!#+!=(,-/!'-/0!'(!3)-2-)!#!,()-!:/#'5)#8<!8((;!*/! '1-*)!0#6I'(I0#6!&(+,-'*&!)(5'*/-4!5+*/A!,#;-53!&(8()+! '1#'!-/1#/&-!#/0!#&&-/'! '1-! 2#&-4! )#'1-)!'1#/!&)-#'*/A!,#;-53!-22-&'+!U-?A?4!1-#76!)(5A-W?!!!

Consumer Y(/+5,-)+!(2!"#$!%#&'()!&(+,-'*&+!A-/-)#886!'-/0!'(!.-!,*008-I&8#++!=(,-/!.-'=--/!'1-!#A-+!(2!cP!#/0! S]! =1(!=#/'! '1-! #5)#! (2! #! 3)(2-++*(/#8! ,#;-534! =*'1(5'! '1-! 1*A1-)! 3)*&-! (2! 85$5)6!,#;-53!.)#/0+?!E1-+-!&(/+5,-)+!'-/0!'(!+1(3!#'!0-3#)',-/'!+'()-+!+5&1!#+!\8!Y()'-!J/A8-+!()!3-)25,-)*-+4!=1-)-!,*008-!#/0!533-)I'*-)!,#;-53!.)#/0+!#)-!A-/-)#886!+(80!*/!>3#*/?!!!!Y(/+5,-)+!(2!,#;-53!*/!A-/-)#8!7#85-!'1-!D5#8*'6!#/0!*//(7#'*(/!*/!&(+,-'*&+!3)(05&'+4!=1*&1!#)-!'=(!3)*,#)6!0)*7-)+!*/!,#;-53!.)#/0!+-8-&'*(/!#&&()0*/A!'(!#!+5)7-6!0(/-!.6!EQ>!2()!d#)h,-')(!0-!b*+')*.5&*h/! \+3#k(8#?! ! J/! #00*'*(/4! '1-! +'506! +1(=-0! '1#'! &(/+5,-)+! '1#'! #)-! /('! 8(6#8! '(! #!3#)'*&58#)!.)#/0!'-/0!'(!1#7-!.--/!-$3(+-0!'(!,#;-53!#07-)'*+*/A!U3)*/'4!'-8-7*+*(/W4!.5'!A-/-)#886!,#0-!'1-*)!0-&*+*(/!(/!#!3#)'*&58#)!.)#/0!#/0!3)(05&'!#'!'1-!'*,-!(2!35)&1#+-?!!Y(/+5,-)+! (2! ,#;-534! A-(A)#31*&#8864! '-/0! '(! .-! &-/')#8*C-0! #)(5/0! >3#*/G+! '=(! 8#)A-+'! &*'*-+4!"#0)*0!#/0!d#)&-8(/#?! !b#'#!2)(,!>EMQXM!+1(=+!'1#'!]Pj!(2!,#;-!53!+#8-+!*/!>3#*/!'#;-!38#&-!*/!"#0)*04!S]j!*/!d#)&-8(/#4!#/0!]j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

Premium Makeup Consumers

Middle Tier Makeup Consumers

Mass Market Makeup 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

counters at department

stores or specialty luxury

stores

Department stores,

perfumeries

Supermarkets, Department

Stores

Purchase Decision Differentiators

Perceived quality, brand

recognition, advertisements,

scientific benefits,

satisfaction with prior

experience,

recommendations

Glamorous, sophisticated,

used same brand products

before, satisfaction with

previous experience,

perceived quality / price

tradeoff

Price, availability, fun,

youthful appeal

Consumer behaviors Looking for a product that is

elegant and sophisticated, a

classy product

Looking for a product that is

glamorous and beautiful,

something akin to a model;

Looking for a product that is

youthful and affordable;

looks towards peer group for

! ! 6

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Premium Makeup Consumers

Middle Tier Makeup Consumers

Mass Market Makeup Consumers

looks for ideas in fashion

and beauty magazines

ideas as well as trends

!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-'*'*(/!*/!>3#*/!#+!#!2-=!8#)A-!&(,3#/*-+!(22-)!+-7-)#8!0*22-)-/'! ,#;-53! .)#/0+! U+--! &(,3-'*'*7-!8#/0+&#3-! 36)#,*04! )*A1'W?! ! FG@)-#8! 1#+! '1-!8#)A-+'! ,#);-'! +1#)-! Uc]?gjW! '1)(5A1! *'+!7#)*(5+!.)#/0+! */! '1-!>3#/*+1!,#;-53!,#);-'4!2(88(=-0!.6!X_T!'1)(5A1!"#$!%#&'()!UcN?[jW?!!!

L’Oreal FG@)-#8! *+! "#$! %#&'()G+! 3)*,#)6! &(,3-'*'()4!(22-)*/A! ,#;-53! 3)(05&'+! '1)(5A1! 7#)*(5+!.)#/0+! +5&1! #+! FG@)-#8! X#)*+4! "#6.-88*/-4! #/0!F#/&(,-?! ! E1)(5A1! '1-+-! .)#/0+4! FG@)-#8! 1#+!+')#'-A*&#886! &(7-)-0! +-7-)#8! '*-)+! (2! '1-!&(,3-'*'*7-! +-A,-/'+?! ! FG@)-#8! X#)*+! *+! 3)*&-0!+8*A1'86!1*A1-)4!.5'!7-)6!+*,*8#)86!'(!"#$!%#&'()!3)(05&'+?! ! >(,-!(2!FG@)-#8!X#)*+G!,(+'!3(358#)!,#;-53!8*/-+!*/&850-!:J/2#88*.8-<!8*3+'*&;+!#/0!:i(85,*++*,-<!,#+&#)#?!!!FG@)-#8G+!3(+*'*(/*/A!*+!D5*'-!0*22-)-/'!2)(,!"#$!%#&'()?! !E1-*)!.)#/0!+8(A#/4!:d-&#5+-!6(5G)-!=()'1!*'4<! A*7-+! #! ,()-! 2-,*/*+'! -,3(=-),-/'! 2--8*/A! '(! '1-! .)#/04! =1*&1! FG@)-#8! &8#*,+! '1#'! [Pj! (2!=(,-/! &#/! #++(&*#'-! =*'1! #/0! )-&(A/*C-?! E(! &(,38*,-/'! '1*+4! FG@)-#8! 1#+! #! :B(,-/! (2! B()'1<!&#,3#*A/!*/!()0-)!'(!)-&(A/*C-!=(,-/!,#;*/A!#!0*22-)-/&-!*/!'1-*)!&(,,5/*'*-+4!#+!=-88!#+!#!:Y(8()!(2!H(3-<!&#,3#*A/!*/!()0-)!'(!3)(,('-!)-+-#)&1!#/0!#=#)-/-++!'(=#)0+!&(,.#'*/A!(7#)*#/!&#/&-)?!!FG@)-#8G+!#07-)'*+*/A!#/0!&(,,5/*&#'*(/!5+-+!#/!#))#6!(2!=*0-86!)-&(A/*C#.8-!&-8-.)*'*-+!)#/A*/A!*/!-'1/*&*'64!#A-4!+;*/!&(8()4!#/0!#33-#)#/&-4!+5&1!#+!X-/-8(3-!Y)5C4!b*#/-!l-#'(/4!#/0!d-6(/&m?!!U"#$!%#&'()! (/86! 5+-+! (/-! &-8-.)*'64! #! +53-),(0-84!=1(! *+!,(+'! 8*;-86!,()-!=*0-86! ;/(=/! */! '1-! 1#5'-!&(5'5)-!&*)&8-+!)#'1-)!'1#/!*/!'1-*)!'#)A-'!&(/+5,-)+W?!!E15+4!*2!FG@)-#8!=-)-!)-3)-+-/'-0!.6!#!3-)+(/4!=-G)-!*/&8*/-0!'(!&1(+-!+(,-(/-!8*;-!@3)#14!#/0!*2!"#$!%#&'()!=-)-!)-3)-+-/'-0!.6!#!3-)+(/4!=-G)-!*/&8*/-0!'(!&1(+-!=1(!"#$!%#&'()!1#+!&1(+-/! 2()! '1-*)!NPP!6-#)!#//*7-)+#)64!d)#C*8*#/!+53-),(0-8!T*+-8-4!=1(!*+!;/(=/!#,(/A!2#+1*(/!-/'15+*#+'+!.5'!/('!#+!=-88!;/(=/!#,(/A!-7-)60#6!=(,-/?!!FG@)-#8!1#0!)-7-/5-+!(2!acV?V!.*88*(/!*/!cPPZ!=*'1!#!3)(2*'!,#)A*/!(2!NN?Oj?!!

Coty E1-!/-$'!8#)A-+'!&(,3-'*'()!*/!'1-!>3#/*+1!,#;-53!,#);-'!*+!Y('64!.#+-0!*/!Q-=!n();?!!B1*8-!Y('6!*+!3)*,#)*86!#!,#/52#&'5)-)!#/0!,#);-'-)!(2!3-)25,-+4!Y('6!)-I8#5/&1-0!'1-!M+'()!:>*,386!J))-+*+'*.8-<!.)#/0!(2!&(+,-'*&+!*/!>3#*/!*/!cPPc?!Y('6!1(80+!#!NZ?gj!+1#)-!(2!'1-!>3#/*+1!,#;-53!,#);-'!#/0!*+!+(80!*/!+53-),#);-'+4!163-),#);-'+4!3-)25,-)*-+4!#/0!+(,-!0-3#)',-/'!+'()-+?! !Y('6!1#0!)-7-/5-+!(2!aV?V!.*88*(/!*/!cPPZ?!!d-8(=4!=-!3-)2(),!#!&(,3-'*'*7-!#/#86+*+!(2!"#$!%#&'()G+!+')-/A'1+4!=-#;/-++-+4!(33()'5/*'*-+4!#/0!'1)-#'+!U>B@EW?!!

Premium#

Estee Lauder, Lancome,

Christian Dior!

Middle Tier 1#Mac, Sephora!

Middle Tier 2!

Max Factor, L'Oreal Paris, Bourjois Paris!

Mass Market!

Astor, Maybelline!

! ! 7

!

!

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)*&-!.-&#5+-!(2!*'+!*//(7#'*(/!#/0!1*A1!)-A#)0!.6!3)(2-++*(/#8!,#;-53!#)'*+'+?!

Brand Analysis

Origins E1-!"#$!%#&'()!.)#/0!.-A#/!.6!#!,#;-53!#)'*+'4!"#$!%#;'()4!=1(!=#+!=();*/A!#+!#!,#;-53!#)'*+'!2()!'1-!`(6#8!d#88-'! */!`5++*#!#/0! '1-/! *,,*A)#'-0! '(! '1-!L/*'-0!>'#'-+?! ! J/! '1-!L?>?4! '1-!%#;'()! 2#,*86!/#,-!=#+!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!"#$! %#&'()! .-A#/! +-88*/A! 1*+!,#;-53!3)(05&'+! '(! '1-! A-/-)#8! 35.8*&! '1)(5A1!"#$!%#&'()!_!Y(,3#/64!=1*&1! 8#5/&1-0! '1-! )-'#*8!,#;-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-!.)#/0! +'*88! *+! #++(&*#'-0! =*'1! *'+! H(886=((0! #/0! &-8-.)*'6! ()*A*/+4! #/0! 1#+! .--/! -$'-/0-0! '(! '1-!)5/=#6!+53-),(0-8!#/0!2#+1*(/!*0-#8?!!

Tangible Associations • d)#/0!/#,-R!"#$!%#&'()!• d)#/0! 8(A(R! !E1-! :"#$!%#&'()<!/#,-4! */! #88! &#3*'#8! 8-''-)+4!=*'1! #/!-/8#)A-04! A)#31*&! :$<! */!

"#$?! !Q('-! '1#'! */! >3#*/4! '1-!"#$!%#&'()! 8(A(! *+! 0*22-)-/'! 2)(,! '1-!"#$!%#&'()! 8(A(! */! '1-!L/*'-0!>'#'-+!05-!'(!#!0*22-)-/'!&(/+5,-)!A)(53!'1#'!*+!'#)A-'-0!*/!'1-!L/*'-0!>'#'-+?!!d-8(=4!8-2'4!.)#/0!8(A(!*/!>3#*/4!#/0!.-8(=!)*A1'4!.)#/0!8(A(!*/!'1-!L/*'-0!>'#'-+?!!

Strengths!

-Ability to leverage the global network of resources within P&G (e.g, financial, sales, knowledge)!

-Seen as an innovative brand in makeup and makeup application!

-Competitive pricing strategy!

-Recognized brand worldwide with heavy investments in the advertising campaign!

Weaknesses!

-Currently second in market share to L'Oreal!

-Losing marketshare worldwide!

-Losing "Max Factor" brand equity worldwide and especially in the U.S.!

-Losing retail space in retailers worldwide due to declining sales!

Opportunities!

-As a result of the global financial crisis, consumers may be more price sensitive and brands that are more economically priced may fare better!

-Spanish makeup market expected to grow over the next few years!

Threats#-Trend towards using "natural" or "organic" cosmetics, as well as using less colors for a more "natural" look!

-Belief by some consumers that the makeup and cosmetics industry uses ingredients that are harmful to the environment!

Competitive Analysis for Max Factor!

! ! 8

!

!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!

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• >-)7*&-+R!"#$!%#&'()!1#+!)-3)-+-/'#'*7-+!()!.-#5'6!#07*+-)+!#7#*8#.8-!#'!'1-*)!,#;-53!+'#/0+!#/0! (22-)+! 3-)+(/#8*C-0! &(/+58'#'*(/+! #/0! ,#;-(7-)+! '(! 2)-D5-/'! &5+'(,-)+?! J/! #00*'*(/4!"#$! %#&'()! *+! 8#5/&1*/A! '1-! :%)*0#6+! X)(K-&'<! +'#)'*/A! */! %-.)5#)6! cPPO4! =1-)-!)-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!

Marketing Mix

Product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

Beauty Adviser!

Makeup Counter!

Makeup !

Hope, Beauty!

! ! 9

!

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!

Price "#$!%#&'()!3)*&-+! *'+!&(+,-'*&+! */! '1-!,*008-I'*-)!(2!&(+,-'*&+!#/0! *+!&(,3-'*'*7-!=*'1!FG@)-#8!#/0!Y('6! &(+,-'*&+4! *2! /('! 3)*&-0! +8*A1'86! .-8(=! '1-,?! E1*+! 3)*&*/A! +')#'-A6! 0*22-)-/'*#'-+!"#$! %#&'()G+!

•!False Lash Effect, Masterpiece Max, 2000 Calorie, Masterpiece Beyond Length, Masterpiece Waterproof, Lash Lift, Color Perfection Duo, Eye Shadows, Earth Spirits Eye Shadow, Masterpiece Glide and Define, Colour Perfection Eye Liner, Kohl Pencil!

Eyes!

•!Colour Collection, Lipfinity, Lipfinity Colour & Gloss, Lasting Colour, Color Perfection, Silk Gloss, Lipliner!

Lips!

•!Natural Mineral Foundations, Age Renew, Miracle Touch Liquid Illusion Foundation, Colour Adapt, Lasting Performance, Seamless, Facefinity, Panstick, Erace, Mastertouch Concealer, Crème Puff Compact Powder, Miracle Touch Creamy Brush, Bronzing Powder!

Face!

•!Nailfinity!Nails!

! ! 10

!

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! ! 12

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! ! 13

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Cons F(=-)!3)*&-e!&1#/A-!38#&-!U0*+')*.5'*(/!&1#//-8+W!

Recommendation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

Implementation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

Conclusion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

! ! 14

!

Bibliography !!J/+'*'5'(!Q#&*(/#8!0-!\+'#0*+'*&#+!UJQ\W!(2!>3#*/4!=-.+*'-!

===?*/-?-+!!F()-#8!>3#*/4!=-.+*'-!! 1''3Rpp===?8()-#8?-+pt-+pt-+p*/0-$?#+3$!!^"#;-IL3!J/05+')6!X)(2*8-R!>3#*/?^!"#;-IL3!J/05+')6!X)(2*8-R!>3#*/!UQ(7?!cPP[WR!N?!d5+*/-++!>(5)&-!

Y(,38-'-?!\d>Y@?!c[!u#/?!cPPO!v1''3Rpp+-#)&1?-.+&(1(+'?&(,p8(A*/?#+3$s0*)-&'w')5-_0.w.'1_MQwV]SNggZO_+*'-w-1(+'I8*7-_+&(3-w+*'-x?!

!"#);-'*/A0*)-&'(?&(,R!^F(+!-+3#k(8-+!3)-2-)*,(+!8(+!&(+,m'*&(+4!)-2)-+&(+!6!&1#,3y+!0-!,#)&#^4!

===?,#);-'*/A0*)-&'(?&(,4!>-3'-,.-)!NS4!cPPV?!!"#$!%#&'()!UL/*'-0!>'#'-+W4!=-.+*'-!! ===?,#$2#&'()?&(,!!"#$!%#&'()!U>3#*/W4!=-.+*'-!! ===?,#$2#&'()?-+!!X#);-)4!X1*8*3!"?!^cPPgIcPNN!B()80!@5'8((;!2()!%#&*#8!Y(+,-'*&+?^!B()80!@5'8((;!`-3()'!cPPgI

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(+'I8*7-_+&(3-w+*'-x?!

!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(+'I8*7-_+&(3-w+*'-x?!

!X#);+4!F*C?!:"#;*/A!#/('1-)!Y(7-)!T*)8!*+!/('!*/!X_Tf+!"#$!%#&'()!38#/+?<!b)5A!>'()-!Q-=+?!"#)&1!Ng4!

NOOc?!!>3#/*+1!Y(+,-'*&!E(*8-')6!#/0!X-)25,-)6!M++(&*#'*(/!U===?+'#/3#?-+W!!E1-!X)(&'()!#/0!T#,.8-!Y(,3#/64!=-.+*'-!

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! ! 15

!

Exhibits

Exhibit 1: Image of Max Factor Spain Website !

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Exhibit 2: Images of Max Factor Displays !

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Exhibit 3: Max Factor Lipstick Product Test !

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! ! 16

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Exhibit 4: Consumer Survey

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! ! 18

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Exhibit 5: Advertisements !E-8-7*+*(/!#07-)'*+-,-/'!2-#'5)*/A!Y#),-/!l#++R!1''3Rpp===?6(5'5.-?&(,p=#'&1s7wC=*KYn7AM";!!Y8#++*&!3)*/'!#07-)'*+-,-/'+!=*'1!&-8-.)*'6!-/0()+-,-/'+!

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! ! 19

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! ! 20

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