Final Version Of Max Factor Essay

As there are more and more foreign new cosmetics and skincare brands enter the local market, especially the cosmetics brands from Korea are continued to get in. As a result there is a keen competition among brands. In addition, as there are a lot of brands for customers to choose from, so that this is difficult to keep them loyal and it makes customers easily to dilute the brand. So there is a need to stronger the brand image from the cosmetics market. Nowadays, women are independent and have continuously increased in the social status. Modern women have their own income that they spend much ore on their appearance.

They are more willing to try different cosmetics products, and since Max Factor has located in Hong Kong for several years, customers would have already known the brand name of Max Factor. Therefore, One Of the promotional objectives is to increase their conviction towards the brand to encourage them to take action to buy the products. As mentioned previously, some of the market share of Max Factor may be shared by the new and existing brands. Its aim is to increase the market share by 2% through launching the integrated marketing communication aerogram and would also increase in 10% of the brand awareness in customers’ mind.

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Target cons mere Max Factor is targeting the high-end cosmetics market segment. The female who Max Factor concerned are those between 25 and 40 and pursue to use the high quality of cosmetics products. This group of customers is the independent working females with a good educational background and Strong purchasing power. The target customers are mainly office ladies who are busy to work and able to afford the relative higher price in the overall cosmetics market.

In order to build up their self-confident in their workplace ND daily interpersonal relationship, they would like to dress up and make up to retain the smartest and the pettiest outlook. So they are willing to try and spend on different kinds of cosmetics products, but they would like to buy those which are also “accept’ by their peer groups. One of the reasons is that cosmetics products like the foundations are sometimes being shown on the front of others, which may affect the individual ideal social self. Another reason is the “accepted” products are easier to be talked among females in the peer groups during the spare time.

Most of the females in this age range doodads are more concern on the physical appearance and want to keep themselves younger. They spend a large proportion of their wages on daily consumption. In addition, they follow the fashion trends closely and are willing to pay for products that appear to be in the latest trend to them. Beauty magazines like cosmopolitan, ELL, Marie Claire and Jessica etc are the modern female magazines and some common gossip magazines like Sudden, Oriental Sunday are the favorite reading during their spare time. Today, modern women are finding the way to enjoy their life.

Besides their work, hey would like to have gathering such as having drinks or parties with their friends in order to relax themselves from the stress after their work. So there is a need in changing their s¶Yale and make up to meet with different occasions to outstanding themselves among people. Brand positioning Max Factor positioned itself as “the Make up of the make-up artists” that the quality of their cosmetics products is up to professional. Six target customers are being researched in a small survey in order to obtain their perception of the competitive international cosmetics brands (Lana¶me,

Christian Dior, Esteem Lauder, Clique, and Shied) with Max Factor in term of price and quality. As the target market is the age from 25 to 40, there are divided into 3 groups, 25-29, 30-34 and 35-40. Two target customers are chosen in each group in order to have a more accurate survey result. These brands are chosen as they are all international brands and also be well- known by most Of the cosmetics users. They play the dominant role together with Max Factor in the high-end market segment, so they would have the most direct competitive relationship with Max Factor and therefore, they are used as the comparison.

These target customers are researched under the aided cosmetics brand names and asked to give the comments on the price and quality of the brands’ image and products by scales. (6 marks represent the highest price/ quality while 1 mark represents the lowest price/ quality the brands have. ) The following table shows the target customers’ perception of the price in different brands. Target customers Max Factor Lana¶me Christian Dior Esteem Lauder Clique SSH issued one 5 6 4 2 3 Two The ere Four Five Total 14 29 32 28 10 13 The following table shows the target customers’ perception Of the quality in One 31 9 17

The following table is the summary in the target customers’ weighting in the price and quality of different cosmetics brands. From the perpetual map shown below, Max Factor is at the below average position comparing with the other five international brands in the high-end cosmetics market. That means in the customers’ perception, Max Factor products are set over the moderate price with the quality above moderate. The Perpetual Map The following are the promotional strategies that Max Factor is currently used. Current advertising strategy Max Factor mainly places its advertising on television and magazines.

The celebrities used in 2005 are Karen Mock, Julio Choc and the Japanese model, Ana Matthias, also the famous make up artist, Rick Chin in order to create a professional image for the brand and products. The celebrities can increase the customers awareness and the make up artist not only can match with Max Factor positioning- “The make-up for make-up artists”, but also increase the credibility of the products. In the television advertisement, each celebrity appears with their perfect make-up which is very attractive and charming.

As the make up are preformed by Rick Chin so that it can deliver a message that top make up artists is also using the product from Max Factor and come out with the make up which look elegant and charming. So that viewers can retain a deep impression on the products. The magazines advertisements of Max Factor are shown in most of the beauty magazines like Jessica, Oriental Sunday- more, cosmopolitan etc. Actually there is the high coverage in the Hong Kong beauty magazines. The advertisements often appear with the celebrities’ close-up with attractive photo-taking technique that the skins of the celebrities are close to perfect.

There are the brief products’ introductions tit the price showing next to the products. Also, there is the small picture of Rick Chin with “the top make-up artist” next to it. The advertising appeal that Max Factor uses is the music and appeal and sex appeal to attract more people. The message that the advertising bring out is informative and demonstrative. It is because in the advertising, the spoke people such as Karen Mock or Julio Choc both make up themselves by using the Max Factor’s cosmetics and a brief introduction of the content of the product are also explain through the advertising.

Thus the message can Leary deliver to the customers. Current sales promotion Max Factor seldom has the price discount on its products to boost its sales. However, it has introduced some sets in the special festivals. Like recently, Max Factor has introduced the new limited Camas box set at special price which includes eye shadow, blush, lipstick, lip gloss and mascara. Camas box are sold in two colors and each Of them contain a fur brooch that can be used as a decoration on clothing. The launching of the box sets can attract customers’ purchase as to reward themselves or as a present to their friends n this gift-giving season.

Besides the Camas box, there is also another sales promotion by giving on-purchase premium. Customers who purchase the newest Angelic lip gross for up to $350, a small mirror which is designed by Julio Choc (the spokesperson) will be given to the customers as a gift. The reasons that use the mirror as a premium is that this gift can match with the target customers. As the target customers of the company are LO, mirror is a necessity for them to do the make up. Together with the mirror is designed by Julio Choc, they LO will more precise to have one. These will enhance their interest is buying the products.

The sales promotion is the most effective way in boost up the sales as customers can get the advantages form the promotion more directly and immediately. Therefore it is useful for Max Factor to engage in such a promotion in such a way. Public Relations Max Factor has participated in the event marketing of public relations. The company held a cosmetics demonstration to the target customers. For example, on July of year 2005, Max Factor held this function at a place in order to promote the products including Liability Pro Aquaria Pearl, the eye widow and lipsticks.

The aims that Max Factor doing the demonstration is to help the firm to maintain its current market share, the demonstration can introduce the newest products to the customers, the advantages of the products can be illustrated to the customers immediately, than can speed up their conviction of purchases in a short time and hence enhance the market share in the market. The others an advantage is can build strong presence in the marketplace. This function can make a large “voice” among the market because of the large function can attract many people such as people from he target customers, the media, and the professionals.

The media will report the event in the magazines or newspapers or others media, this can help a lot in reminding the public about the brand, make the brand name always in customers mind. Also, the cosmetic demonstration can enhance the products or the firm’s image. For example, such a demonstration can give the customers a professional impression, which can enhance customers perception towards the products, they may think that after using the products, they will become more beautiful and charming and hence to enhance their positive perception to the brand.

Current Personal selling Personal selling is the sales can face to face to introduce the products and solve the problem of the customer on time. There are two to three sales ready to serve customers at every Max Factor’s counters. They help to introduce, explain, promoting the products. Besides helping the customer to choose the suitable cosmetics products, they also provide some professional opinion to the customers. It is more convenience for customers to make up their mind.

As the company’s object is to increase the conviction towards the brand, the ales can help to retain the loyalty of customers towards the brand as except to enhance the conviction of customers, t build good relationship with customers is very important to the brand. Sales have the closest contact with the customers, their behavior represent the company’s image, therefore if good services are provides to the customers, then customers may build confidence and positive impression to the brand, then can increase the opportunity for loyal customers to have repeat purchase.

According to the 80/20 rules, it is important for a company to maintain its exist customers, as 0% of profits are come from 20% of loyal customers. Direct Marketing Max Factor used membership as one of the way of direct marketing. The channel of membership can provide a two way communication for the company and the customers. Besides the application of membership, Max Factor does not apply much on direct marketing. The advantages of direct marketing is can contact the desire customers directly, for example through mail, email, internet, telemarketing and so on.

These methods will always provide the newest information of the products to the customers. Direct Marketing can also enhance the loyalty of the customers, for example when customer’s birthday is coming, the firm can send a birthday card together with some gifts or coupons included to the customers, customers may feel that they are being concern and care by the firm and hence are willing to have repeat purchase again.

Also, marketing through telephone are also one of the most direct methods to contact customers, through the conversation, the company can know more about the preference, the buying behavior or the purchasing cycle of the customers, this method provides a fastest littoral of communication and after collecting the useful information, the firm can have a better understand about the further development.