Individual assignment

Technology Park Malaysia

BM009-3-2-DCV
DELIVERING CUSTOMER VALUE

Hand Out Date – 18 March 2021

Hand In Date – 3rd May
Weightage – 60%
Name – Samia Erum
TP – 057601
Intake – UC2F2008BM(E-BUS)
No. of Words – 2450

pg. 1
 TABLE OF CONTENTS
0.1 Executive Summary…………………………………………………3
0.2 Introduction…………………………………………………………3
0.3 Three core types of values…………………………………………4
0.4 Application of the 4-tier customer pyramid………………………6
0.5 CRM tools……………………………………………………………7
0.6 Conclusion & Recommendation……………………………………8
0.7 References………………………………………………………..8-9-10

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1.0 Executive Summary
Customer experience management and successful customer interaction are essential to an
organization's survival in today's intensely dynamic market world. Organizations may establish
strong and long-lasting relationships with their clients by improving the customer experience.
This assignment examines how Maybelline provides superior service to consumers,
implements partnership marketing techniques, and creates customer loyalty. Starting with the
history, achievements and focus of Maybelline to the market segment and current market
position. It then moves to the analysis of customer relationship marketing strategies by linking
them to some theoretical elements. And lastly to the conclusion and recommendations of this
assignment. In this assignment we found that, Maybelline is a company which prioritises
customer relationship more than anything else. It discusses the three core types of values that
the company delivers in terms of operational efficiency, product leadership and customer
intimacy. And how well are the core values positioned in relation to the firm’s value
proposition. It uses Customer tier pyramid to convert potential customer to profitable loyal
advocates. It also talks about to which extent the company has benefited from the application
of Customer Relationship Management to build and enhance its customer relationships and
profitability. And how technology has assisted the Maybelline company in building better
value with customers. In the conclusion, we can see what are the current or past shortcomings
or gaps that are evident in Maybelline company. The three ways to overcome these
shortcomings have also been highlighted and improvements on Maybelline’s relationship
marketing strategies.

2.0 Introduction
Maybelline New York is the number one worldwide beauty corporation that is bought
in over 129 international locations over the world. The main focus of Maybelline New
York is that it offers greater than 200 products, it blends technologically state-of-the-
art recipes with on-fashion information to provide low priced cosmetics with a chic,
urban edged and a lively look. Maybel Williams, the older sister of young Chicago
chemist Thomas Williams, developed her own cosmetics product using the best of
what was available in 1913. She accentuated her lashes and brows with petroleum
jelly. Her brother wanted to aid her in increasing her allure by mixing carbon dust into
the petroleum jelly, which drastically darkened the lashes and brows. The product was
successful. Thomas created Maybelline, the multinational industry behemoth, in 1915,
named after his sister and her favourite beauty aid. (Maybelline About Us - Company
Information, History, & Mission Statement for Maybelline, 2021)
Maybelline’s history & achievements
In 1915, The first Maybelline product was Maybelline Lash-Brow-Ine, a lash and
brow beautifier created by Thomas L. Williams, who was influenced by his sister,
Mabel. Maybelline launches Magic Mascara, the first mass-market mechanical
mascara, in 1950, and became the first cosmetics company to advertise on television.
Maybelline Great Lash makes its debut in 1971, with a ground-breaking recipe that
both conditions and thickens lashes. From the beginning, the classic green and pink
packaging has been there. In 1990 the famous motto ‘Maybe she’s born with it maybe
its Maybelline made its debut. Maybelline New York Falsies Mascara is named the
world's best mascara in 2015, while the beautyheaven Glosscar Awards honor
Volume Express Colossal Smoky Eyes Mascara, Maybelline New York SuperStay

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 Better Skin Concealer, and Color Sensational Color Elixir. (100 years old and looking
as good as ever, 2021)

Maybelline’s market segment & current market position

There are unique segments/groups of people who share similar traits and product
needs within Maybelline's target demographic of women aged 16 to 25. Market
segmentation entails splitting a given consumer market into strategically relevant and
recognizable segments, allowing a competitive business like Maybelline to customize
a marketing mix (product, place, promotion, and price) to meet the individual needs of
each segment or category they want to focus on. While age segmentation was not a
major factor in splitting Maybelline's already-divided consumer market, it did play a
role in the development of a new product range. Maybelline developed the Age-
Rewind product range in order to gain market share by reaching women aged 35 and
up. Age-Rewind offers a range of eight brands targeted at women seeking anti-aging
benefits. Maybelline, like every other profitable business, relies heavily on income
segmentation. Market purchasing power is what makes income segmentation so
significant. Maybelline's offerings are mostly aimed at women between the ages of 16
and 25, who lack the buying ability of older demographic groups with higher
incomes. As a result, Maybelline goods are sold at a reasonable price, which is in
accordance with their mission statement. (Gutierrez, 2013)
Maybelline's positioning was focused on the principles of modernization and
transformation. It was extensively used in the creation of the brand and products. The
company used a large-scale advertising strategy to popularize its brands. In the year
2000, Maybelline is the largest advertiser in the cosmetics industry.
The corporation used ad strategies to raise brand value, which were considered useful
and of high quality. It became clear that inventions had triumphed. Eyeshadow and
eyeliner became the most popular makeup. (Maybelline Case Study Analysis:
Marketing & Competitors, 2021)

3.0 Three core types of value

Operational efficiency
Operational efficiency is mainly a statistic that assesses the profitability of a company
as a result of its running costs. The more lucrative a company or venture is, the more
efficient its operations are. This is how the entity will produce more revenue or
returns for the same or less money than a competitor. (Operational Efficiency
Definition, 2021)
Manufacturing, quality, Purchasing, supply chain, environment-health-and-safety,
packaging, real estate and construction are all part of Maybelline's operations.
Maybelline has a strategic plan in place to improve and open additional facilities and
centers to help with retail delivery and to get closer to markets. They've been using a
wall-to-wall strategy since 2010. The tactical approach relies on the presence of a
packaging production unit on site to minimize the time between order production and
storage. It also improves the factory's efficiency and versatility. Maybelline has been
moving globally to enter new countries as part of its globalization policy. Maybelline

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has made significant improvements to the way it does business over the years,
concentrating on streamlining, simplifying, and increasing performance. The
company has been undergoing continuous industrial re-engineering in all fields, with
the aim of improving operations and efficiency. Long-term objectives include
consolidating global development and creating strong and sustained growth in new
markets. (Anon, 2021)
Product leadership
One way to think of product leaders is that they take care of the administrative
specifics, allowing the company's product managers to concentrate on creating great
products. People in product leadership positions, for example, are responsible for
high-level strategic strategies such as hiring, teaching, and mentoring new product
team members.
Developing estimates for the costs, future sales, and deadlines for different product
growth programs. Sharing the corporate priorities and product strategy of senior
management to ensure that product teams are implementing solutions that comply
with certain high-level objectives. Getting a budget for the product team to go forward
and presenting ideas to business management and customers. Assuring that the
product, architecture, production, and other departments have the resources and
processes they need to complete their tasks. (What is Product Leadership? | Definition
and Overview, 2021)
Maybelline offers more than 200 cosmetic products. Maybelline New York mascara is
the best product. You can achieve whatever lash look you like thanks to Maybelline's
superior brush technology and creative formulations. There are a variety of
formulations available, ranging from curling and specification to lengthening and
volumizing. Maybelline allows customers to tailor their look by offering a variety of
formulas for specific styles, as well as other perks and features. Different color
choices or waterproof formulations are examples of such advantages and features.
(Maybelline also has product differentiation due to the great quality of the | Course
Hero, 2021)
This product has been created by the product leaders while estimating the costs,
assuring that the departments have the resources need to complete the tasks and
presenting ideas to customers.
Customer intimacy
Customer intimacy is a metric that indicates how well you understand and agree with
your consumers' desires and beliefs. Conversations with clients aren't the only way to
build consumer intimacy. It's about a two-way relationship: how they see things
matters. (Scout, 2021)
In order to maintain customer intimacy in its cosmetics market, Maybelline New York
wanted to increase customer satisfaction. To meet Maybelline's challenge, a strategy
called "B2MeTM" was developed, which combines direct marketing with deep
personalization and content marketing. The campaign has been running since 2009
and has consistently produced excellent results. The coupon redemption rate indicates
that sales are several times higher than in recent, non-personalized promotions. The
majority are new companies started by individuals who already purchased competing
brands. It has also boosted Maybelline's brand awareness and increased the chances of

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 customers recommending the Maybelline New York collection. (Strategies Drives
Maybelline Sales and Loyalty | Marketing, 2021)

4.0 Application of the 4-tier customer pyramid.

Customer loyalty schemes have two distinct goals. One way to boost sales revenue is
to maximize the number of orders / consumption ratios and the number of goods
purchased from the retailer. Achieving this level of customer retention is a big
achievement for companies. A second goal is more self-evident: by strengthening the
relationship between the company and new buyers, it is hoped that the existing
consumer base will be maintained. Maybelline is an example of a company that excels
at loyalty programs targeted on points. Customers swipe their make-up insider card
whenever they make an order, and the card keeps track of how much they spend.
Beauty insider factors are earned for each dollar invested, and factors may be
redeemed for beauty supplies at checkout. Maybelline New York collaborated with
Kelly Framel, one of the most famous style bloggers, to release an immersive step-by-
step manual for 4 separate looks presenting Maybelline's new cosmetics. Both the
consumer and the company profit from customer loyalty. Customers' loyalty can be
developed through a variety of tactics. Like, 1) Strengthening the bond – Bundling or
cross-selling items, one-stop shopping, and purchasing services from the same
vendor. 2) Financial bonds: - Buy discounts, coupons for loyalty programs. 3) Non-
monetary perks – credit card holders have first preference. 4) Intimate relationships
and long-term relationships are examples of social ties. 5) Customization bonds: -
personalized service for existing customers, customers can't rely on other service
providers for amenities. (The Impact of Maybelline Marketing - Free Essay Example |
EduZaurus, 2021)
Customers are at the heart of Maybelline's business campaign. In collaboration with
Bazaarvoice, the brand uses user-generated content (UGC) to keep in touch with
customers. Maybelline France introduced an initiative in 2018 to speed up the
collecting of reviews, especially for newly launched items, those with few reviews,
and those with poor average scores. To accomplish this, the company developed the
"Tester Squad" group. Maybelline uses social media to hire testers, as well as
encouraging customers to sign up for the trial on the brand's website. Participants in
the program are asked to fill out a survey about their makeup regimen and interests.
This allows the brand to collect useful data on participants in order to conduct tailored
sampling campaigns to specific parts of the population. Maybelline conducts a
screening program twice a month to gather feedback on 200 brands. Maybelline
chooses a group of the "Squad" audience members to obtain items based on the details
they submitted during enrolment. Once Maybelline has identified the appropriate
members, the sample is shipped in a box that contains a thank-you note and a concise
description to assist the tester in sharing their feedback. The brand sends an email
seven days after the member receives the items, asking the individual to write an
honest analysis and post material on social media with appropriate hashtags. By
promoting communications and interactions, UGC further reinforces the brand's bond
with its clients. Maybelline has always prioritized customer service, and the company
has listened to the vast majority of customer feedback on its website. The company

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 uses this as a way to thank its clients and still assisting those in purchasing the correct
items. (Maybelline | Bazaarvoice, 2021)
This type of service is called customised bonds. Firms offering customized service are
likely to have more loyal customers.

5.0 CRM tools.

In a year-long CRM campaign, the proprietor of Maybelline Watsons Thailand, in
collaboration with LOréal, became capable of boom sales and deliver purchasers
greater motives to buy cosmetics in 2018. The campaign, which became supported via
way of means of AS Watson DataLab, the agencies client intelligence unit,
communicated offers to associated clients through digital direct mail. In order to draw
new category shoppers, develop according to client’s basket value, and connect them
with new product offers, Watsons centred members in 3 steps. A 3-level method
became frequently used to successfully classify shoppers and make certain that they
have been proven the maximum attractive offers. Around 3.5 million emails have
been sent to representatives as a part of this program, ensuing in over 170,000
customers buy into the brand. Maybelline's sales expanded by double digits in 2018 as
compared to the preceding 12 months due to the initiative. According to the firm, the
centred method led to a double-digit proportion of the manufacturer's sales being
particularly related to the promotion. Furthermore, relative to the preceding 12
months, Maybelline's sales expanded with the aid of using double digits. Getting new
customers and getting those clients to shop for with the brand once more are the
maximum tough obstacles an organization faces. They have been able to perform all
of these goals for Maybelline thanks to their Watsons Thailand CRM initiative.
Customers, mostly beauty shoppers, want more personalized, meaningful deals, and
this agreement was deliberately crafted to ensure that the right offers were made for
the right individuals. (Rozario, 2019)
Technology has greatly assisted Maybelline in building better value with customers.
To stay relevant, Maybelline needs to collect more first-party data and better
understand the end user. Maybelline introduced the Maybelline Express loyalty
service in November to help with this. Maybelline aimed to take control of their
relationship with their customers and personalize their interactions, rather than relying
on third-party advertising providers for sales results. While the software is still in
beta, Maybelline has experimented with paying social media advertisements to guide
users to the website and program. Birthdates and emails are collected, but so are skin
issues, skin tones, favourite store and ideal cosmetic brands. The details will then be
used by Maybelline Express to personalize email marketing, programmatic ad
targeting and retargeting, and website personalization. Making decisions based on
who visits the website, goes to the makeup foundation page, and then they retarget
them with personal details that someone chooses to send the organization. This is
more effective than making assumptions based on who visits the website. Customers
are able to exchange personal information if they believe they can get anything of
worth in return, which loyalty programs can readily do. In this case, brands will have
little information about the new consumers they are trying to attract, and their
marketing efficacy could plateau. (Sandler, 2021)

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6.0 Conclusion and Recommendation
There are many shortcomings or gaps that Maybelline needs to overcome. Firstly, the most
important challenge is to keep Maybelline ahead of its rivals on a global scale. They want to
take their brands global, which can be avoided. The use of demographic characteristics as
part of a market segmentation approach may be advantageous. It is one of the most important
solutions available to the group. Maybelline's beauty brands are most common with people
between the ages of 14 and 24. People of that generation are seen as trend setters in the
industry. The Internet has the ability to affect young adults and teens. The company should
create products that meet their physiological requirements. These psychographic
segmentation priorities may be used by the company. They are essential for manufacturing
new products and services recognizable with different age categories. Second, Maybelline
was the first cosmetics company to introduce an anti-aging formula. The corporation must
consider the pace at which new products, such as base, appear. Maybelline could also
increase its research and development spending in order to stay ahead of the competition.
Long-term innovation-based convergence of product design should be considered by the
company. It will assist in the creation of brands with advantageous ingredients and the
improvement of a product's reputation on the global market. Third, the competitive approach
of Maybelline is to take advantage of cross-marketing possibilities. The organization has to
improve its face and colouring items. Maybelline, as the market leader in cosmetics for eye
enhancement, will benefit from this role. To grow in the industry, you can use a variety of
marketing mix methods. A concept like this would aid the company in closing the gap with
its rivals.

7.0 References
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[Acces Rozario, K., 2019. How the world’s largest health and beauty retailer is using
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EDUZAURUS. 2021. The Impact of Maybelline Marketing - Free Essay Example |
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Available at: https://eduzaurus.com/free-essay-samples/the-marketing-theory-of-customer-
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(2021) Dspace.fcu.edu.tw.
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