SALES MANAGEMENT

Sales management is attainment of an organization's sales goals in an effective & efficient manner through planning, staffing, training, leading & controlling organizational resources.

L’Oréal’s expertise in sales and distribution is recognised throughout the world. The sales teams are enthusiastic, open-minded and play a key part in the growth and success of the group’s brands.

Vanessa Palmer graduated from Exeter University in 1998 and started as a national accounts trainee at L'Oréal. Since then she has had a number of sales roles and now is Commercial Director of the Garnier/Maybelline brand.

HOLISTIC AND SUSTAINABLE MARKETING:

Though market leadership is a critical element in L’Oréal India’s strategy, the firm also excels in sustainability and social responsibility.

L'Oréal India is a proponent of green practices and has donned the colour with pride, employing various means to cut its greenhouse gas emissions, check its carbon footprint, cut plastic content in packaging and use renewable energy. “Consumers are getting more aware these days. There are companies which are clearly spelling out their carbon footprint on the back of the product. They are in the beauty business and want to be good citizens of the world,”

The cosmetics giant has decided to:

ü reduce its carbon dioxide emissions,

ü Water consumption and waste levels to grow sustainably along with the communities around it.

ü “Environment protection and corporate social responsibility are imperative.

ü Taking 2005 as a base year, they want to reduce water and waste levels by 50 per cent in per unit terms by 2015,”

ANALYSING BUSINESS MARKETS:

B2B Vs B2C Marketing - Key Difference

	Characteristics	B2B	B2C
Product nature	Development Driver	Linear Capability	Cyclical lifestyle
Customer orientation	Motivation Selection         Decision	Organizational Need, Objective Criteria, Left Brain	Individual wants/Desires, Subjective preferences, Right brain
Macro social	“Two cultures” cultural scope	Science, Global/Universe	Art, culture bound
Professional Approach	Analogies focus	Legal, medical Sales & application Cases	Politician, entertainer Consumer characteristic

Maybelline uses the B2B and B2C both. Maybelline has its outlets in many malls and streets and Maybelline also sales its product to retailers.

B2B: Maybelline sells its product to retailers and then the product reaches to the end user or consumer. It also sells their product through online portals such as; Amazon, snapdeal, jabong, etc.

B2C: For B2C they have their own outlets or showrooms in malls and out of the malls they have personal showrooms also.

“MAYBELLINE OWNS 7.4%WORLDWIDE MARKET SHARE IN COSMETIC BRAND.”

Ø BRANDING :

Brand

American Marketing Association defines brand as “a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.”

• Maybelline brand gives a status to its customers such as; “Maybe she is born with it Maybe its Maybelline.”

BRAND MANAGEMENT:

    Brand management is the process of building, managing and improving a brand.

    It begins by having a thorough knowledge of the term “brand”.

    Hence, brand management includes developing a promise, making that promise and maintaining it.

    It means defining the brand, positioning the brand, and delivering the brand. It is an art of creating and sustaining the brand.

SEGMENTATION, TARGETING, AND POSITIONING:

According to AMA definition, “A multistep, nested approach to industrial market segmentation, in which one moves from general macro criteria at the level of the organization, such as SIC code and size of the buying firm, through criteria at the level of the order or application, such as order size and urgency, to specific micro criteria at the level of the buying centre, such as risk perception and attitude toward the vendor.”

Segmentation: Maybelline is adopted by L’Oreal in 1991, so it follows the STP process of L’Oreal. Maybelline segmented according to the demographic, psycho-graphic, geographic, and behavioral.

·       Geographic: Region, city, rural and semi- urban areas.

·  Demographic: Age, family size, gender, income, occupation, education, socio-economic classification (SEC).

·      Psycho-graphic: life style, personality.

·  Behavioral: occasions, benefits, user status, usage rate, loyalty status, readiness stage, attitude toward product.

Targeting: Maybelline targeted the college going girls, business women, beauticians, and women from age 25 to 40. Targeting is done in need- based segment, segment identification, segment attractiveness, segment profitability, segment positioning. There are few bases for targeting:

    Measurable: It is done by keeping the size, purchasing power, and characteristics in mind.

    Substantial: The segments are large and profitable enough to serve. A segment should be homogeneous worth going after with a tailored marketing programme.

    Accessible: The segment can be effectively reached and served.

    Differentiable: The segments are conceptually distinguishable and respond differently to different marketing- mix elements and programs.

    Actionable: Effective programs can be formulated for attracting and serving the segments.

Positioning:  A product's position is the way the product is defined by consumers on important attributes. The place the product occupies in consumers' minds relative to competing products.

Positioning Strategies:

    Product attributes (Long lasting lip balm.)

     Benefits (Moisturize the lips)

    Usage occasion (Daily use)

    Activities (give decent color)

    Personalities (celebrities)

    Origin (place of origin or manufacturing)

    Competitors (against or away)

    Product class

    PROMOTION:

   There is no advertisement for this product because it is from Maybelline and Maybelline earned its name since 1991 when L'Oreal adopted it. So COLOR BLOOM needs no introduction. After baby lips lip balm, it was launched as colour lip balm. It is available on retail cosmetic and drug shops as any other lip balm. It is also available on online shopping portals like Jabong, Amazon, Snapdeal, etc.

  ADVERTISEMENT: Maybelline uses advertisement to promote their product. Advertisement can be done through many ways but 3 major ways are PRINT, RADIO, and TELEVISION. The brief description is given below:

   Print: When Maybelline came into existence, it advertised a lot about its products. It was new on market so it had to do that to get popularity. In print, they made advertisements in news papers. They got printed full page ad. They used so many models for it.

   

Television: In very starting they made so many TV commercials so that the customer will be aware of the company and its products. The hired TV actresses as Brand Ambassador, even so many years after coming in India, they are still investing huge amount in ads.

v DISTRIBUTION:

When any producer is unable to sell their goods direct to the consumer, between them stands a set of intermediaries performing a variety of function. These intermediaries are called marketing channels or distribution channels.

 CHANNEL LEVELS: In my product only two level of channel is applied; One-level channel and Two-level channel.

1) One-level channel: There is one intermediary is called RETAILER. In this case, color bloom is mostly available on the retail shops.

2) Two-level channel: It contains two intermediaries; Wholesaler and Retailer. In this the retailers get the product from the wholesaler and wholesalers get the product from manufactures and then it goes to the end consumer.

vPRICING POLICY:

STEPS IN SETTING A PRICING POLICY:-

   1)Selecting the Pricing Objective: : Maybelline is the world largest selling mass market cosmetics and owns 7.4% of cosmetics market share worldwide. Since, the product is in introduction stage of ILC so; its profit is not so high.

     2)Determining Demand: Price is a very important factor of any product.

   According to the law of demand, the higher the price, the lower and the demand and vice versa. In the case of my product, the product is new so the price is not so high and demand is increasing.  When you search for Maybelline COLOR BLOOM on Google, the reviews are there. It shows the hike in demand.

  3)Estimating Cost: Cost depends on various factors like Variable cost, Total cost, & Average cost.

   Variable Cost: it varies directly with the production level. So in my product, production is in bulk because it is new and demand is increasing. As of now, there is no variable cost.

    Total Cost:  total cost consists if the sum of the fixed and variable costs for any level of given production.

     Average Costs: It equals total costs divided by production.

  4)Analyzing Competitors’ Costs, Prices, and Offers: Maybelline set the price of COLOR BLOOM according to its competitors like Nivea lip balm, Elle 18 lip balm, Himalayas lip balm, etc. All these lip balms are priced from Rs. 100/- to Rs. 150/- and color bloom is priced Rs. 125/-.

   5)Selecting A Pricing Method: There are 3 methods of selecting a pricing method: A)   Mark-up Pricing, B) Target-Return Pricing, C) Perceived-Value Pricing.

   According to my product i.e., Maybelline Color Bloom, the suitable method would be the Perceived-Value Pricing because Maybelline is a very famous and trustworthy brand. Before the color bloom, Maybelline has launched many products and they all gained reputation for the company. Since it is a New York based company and very famous as well, people will use it for their esteem.

• Ø THE PRODUCT HIERARCHY:
  
  
  ü Need Family:  buy this Color bloom because of its nice colour and smoothness to the lips. People
  
  
  ü Product Family: Products like Nevea lip balm, baby lips, Himalaya lip balm, etc. Will come in the same product family.
  
  
  ü Product Class: All the above given products have almost similar attributes like moisture to the lips but none of them give colour to lips like Color bloom.
  
  
  ü Product Line: All these products are in similar range of price i.e., Rs. 100 to 150. They are available at the same retail stores with same margin or no margin.
  
  
  ü Product Type: Baby lips is another product from Maybelline like Color bloom. Baby lips have many variants like baby lips Color in pink and orange, baby lips normal in different packaging.
  
  
  ü Item: Color bloom is available in one and only size i.e., 1.7 gms. in Rs. 125. It is available in two variants i.e., PINK and PEACH. They both look the same in design but different in colour.

v PRODUCT LEVEL: THE CUSTOMER-VALUE HIERARCHY:     

    Core Benefit: In this the customer is buying the benefit of the product so here the customer is buying smoothness of their lips.

    Basic Product: This provides very basic need i.e., moisturizing the lips especially in dry season but this also provides very natural colour to the lips so one can use it in any weather and anywhere.

    Expected Product: When a customer is buying this product, they see that whether this product is fulfilling their expectations or not.

    Augmented Product: At this level, company will make some changes in the product if people are not buying the product.

    Potential Product: In this stage, company will introduce a new product according to the requirements and expectations of the customers.

MARKETING MIX: 4 P’s of MARKETING MIX:

PRODUCT:

ü Features: It is a lip balm so it keeps the lips very smooth for long time.

ü Brand Name: MAYBELLINE is the brand for this lip balm. So, the product needs no introduction.

ü Packaging: Color bloom is packed into a very attractive pink or orange packet which shows the colour of lip balm after application.

ü PRICE:

ü It is basically sold on its MRP i.e., Rs. 125. In the retail shops, one can have the discount of maximum of Rs. 10 but, in the malls, no discount is given until it reaches in the decline stage or when the stock is going to be expired.

ü PROMOTION:

ü In the case of this product, the advertisement is very effective because it shows every feature of the product.

ü Direct marketing can also be a way to sale it in the introduction stage of ILC.

ü PLACE:

ü For this product the best place is retail cosmetic and drug shops, malls, showrooms of their brand, etc. Geographically, this product can be located in various areas to increase its sales.