CoverGirl Marketing Plan

Running head: COVER GIRL OUTLAST STAY FABULOUS 3-IN-1 FOUNDATION

Cover Girl Outlast Stay Fabulous 3-in-1 Foundation Marketing Plan

Carolyn Bianco

University of California, Riverside

COVER GIRL OUTLAST STAY FABULOUS 3-IN-1 FOUNDATION

Table of Contents

Executive Summary ---------------------------------------------------------------- 3

Current Marketing Situation -------------------------------------------------- 3 – 9

SWOT Analysis --------------------------------------------------------------- 9 – 12

Objectives and Issues -------------------------------------------------------- 12 - 13

Marketing Strategy ---------------------------------------------------------- 13 – 15

Action Programs ------------------------------------------------------------- 15 – 16

References -------------------------------------------------------------------- 17 - 18

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Executive Summary

Procter & Gamble’s brand, Cover Girl, is looking to launch a new face foundation

called Outlast Stay Fabulous 3-in-1. This product will be positioned with the slogan

“Outlast your day” which indicates that this foundation offers consumers a flawless finish

with long-lasting results. Because Cover Girl has been around for more than 50 years,

this brand will rely on loyal consumers to purchase this foundation. Outlast Stay

Fabulous 3-in-1 foundation will target young women in their 20s who are looking for

products that can last throughout a whole day, but still offer a near perfect longwear.

For its first year, Procter & Gamble wants to achieve $266 million in sales or 2%

of the face makeup segment of the global beauty industry. This means that at least 27

million bottles of Cover Girl’s Outlast Stay Fabulous 3-in-1 foundation must be sold.

Current Marketing Situation

The Procter & Gamble Company was founded in 1837 when two small business

owners from Cincinnati, Ohio, candle maker William Procter and soap maker James

Gamble, merged their business together. Today, according to its company website

pg.com, The Procter & Gamble Co. is a global corporation known for producing various

nondurable household items through 50 leadership brands, which are among the most

well recognized household names throughout the world and account for 90% of P&G’s

sales and profits. While looking at some of P&G’s financial information from the past

five years, the negative growth rates are a standout characteristic among the other figures.

These negative growth rates are attributed to food and gasoline price increases between

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2009 and 2012, which have resulted in consumers buying less personal products because

consumers did not have as much disposable income to spend (Agnese, 2014). By 2013,

however, the company’s growth rate returned to a positive percentage, which is in part

because of food prices and gas prices dropped from previous years. The chart below

shows Procter & Gamble’s five key figures from five consecutive years.

P&G’s products can be segmented into five categories: Beauty, Grooming,

Health Care, Fabric Care and Home Care, and Baby and Family Care. One of P&G’s

most well known beauty brands is Cover Girl, which is a cosmetics line that was

originally created in 1961 by the Noxzema Chemical Company, but was later acquired by

P&G in 1989. Cover Girl’s approach to makeup was to provide young girls and women

makeup that would make them feel like cover girls found on magazines. These cover

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2013 2012 2011 2010 2009

Revenue

(in millions)

84,167 83,680 82,559 78,938 79,029

Profit

(in millions)

41,739 41,289 41,791 41,019 40,131

Net Profit

Margin

13.6% 12.9% 14.5% 16.1% 17.0%

Growth

Rate

5.1% -7% -8% -5%

Stock Price 81.41 67.89 66.71 64.33 60.63


girls were not dramatic, avant-garde models, but were instead presented to consumers

like a trusted friend. Today, Cover Girl carefully selects celebrities that convey a positive,

outgoing and relatable personality to represent the brand. Celebrities like Sofia Vergara,

Ellen Degeneres, Pink and Queen Latifah are currently the faces of Cover Girl.

Cover Girl is currently looking to introduce a new line of foundation called

Outlast Stay Fabulous 3-in-1 foundation.

Procter & Gamble will want to segment the market according to gender and then

age ranges for Cover Girl. The most appealing targeted segments Cover Girl will want to

focus on are teenagers, working women, and young mothers. The chart below sums the

needs of targeted segments and the corresponding benefits Outlast Stay Fabulous offers

for these needs.

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Product Review

Cover Girl’s Outlast Stay Fabulous 3-in-1 foundation offers the following features:

The makeup is packaged in a 1 fluid ounce glass bottle with a pump to control the

customer’s desired amount of product.

Is available in 14 shades.

All-day flawless coverage.

Has the lasting power of a primer, the coverage of a concealer, and the

blendability of a foundation.

Provides broad-spectrum SPF 20 protection.

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Targeted Segment

Customer Need Corresponding Features/Benefits

Teenagers Affordable products Ease of use because

inexperience with makeup May be insecure of acne

Found in drugstores and stores like Wal-Mart and Target.

The 3-in-1 formula eliminates the need for other various face makeup.

Provides medium to full coverage in a semi-matte finish.

Working

women

Products that last throughout a workday

Products that are quick and simple to use because of busy lifestyle

Products that provide a professional workplace appearance

Primer quality of the product is provides longwear.

The benefit of a primer, concealer and foundation cuts down time spent on face makeup.

Coverage is buildable and there are 14 shades available to ensure a natural look.

Young

mothers

Affordable products Products that can keep

with the pace of young children

Multipurpose products

Priced around $10.00 All-day longwear formula will not

cause a shiny face. Includes SPF 20 and is a primer,

concealer, and foundation all in one product.


Provides medium to full coverage.

Shine free.

Competitive Review

Below are detailed reports of Cover Girl’s top three competitors and their products. The

following chart sums up the features of these three products.

Maybelline New York Fit Me Foundation: L’Oréal acquired Maybelline LLC. in

1996 and the brand has 10 types of foundations that are tailored to specific

customer needs. Its liquid Fit Me Foundation was introduced to the U.S. market in

2010 and is available in 18 shades that all include SPF 18 protection. This

foundation features 5-D pigment technology to match a person’s various tones

and highlights within their skin (2014). The formula is also lightweight and

breathable that is not composed of oils or waxes. Fit Me Foundation provides a

light to medium coverage that creates a fresh, flawless look, while not completely

covering up a person’s skin. Maybelline New York is positioned as a brand by

“taking trends from the catwalk to the sidewalk, empowering women to make a

statement, explore new looks, and flaunt their own creativity and individuality,”

and to do this Maybelline offers revolutionary formulas and up-to-date shades

(2010). This particular foundation is positioned to meet the needs of women of

color by offering effortlessly, lightweight and chic shades in three categories:

Light, Medium and Dark. This foundation is available through online retailers like

ulta.com, amazon.com and drugstore.com, at discount department stores like Wal-

Mart and Target and at drugstores like Walgreens and Rite-Aid.

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L’Oréal Paris True Match Super Blendable Makeup: This foundation was

introduced to the U.S. market in 2004 and there are currently 33 shades to choose

from to match to 3 different skin undertones: Cool, Warm, and Neutral. True

Match Blendable Makeup has a trademark Precise Match technology that allows

consumers to control the amount of coverage they desire. However, this

foundation typically produces a light to medium coverage. Only a select few

shades offer an SPF 17 protection, but all of the formulas do not have oils,

fragrances or pore-clogging fillers (2014). The brand L’Oréal Paris is marketed as

“providing affordable luxury for people who demand excellence in beauty,” and

their complimentary slogan “Because you’re worth it,” further exemplifies

L’Oréal’s belief in providing the highest quality for its consumers (2014). True

Match Blendable Makeup ranges from $8 to $11 depending on where it is sold.

This foundation is available through online retailers, discount department stores,

and drugstores.

Revlon Colorstay Makeup: Revlon revamped the original 1994 formula of this

foundation in 2006 to include SoftFlex technology in order to create an all-day

lasting feature. This particular foundation is available in two formulations:

combination/oily skin and normal/dry skin. The combination/oily skin

formulation includes an SPF 6 protection while the normal/dry skin formulation

includes an SPF 15 protection. Both formulations are oil-free, offer a medium to

full coverage and both claim to not rub off with normal wear. The price for this

foundation is anywhere between $7 and $12 depending if it bought online or in a

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retail store. Revlon Colorstay Foundation is available through online beauty

retailers, discount department stores like Wal-Mart and Target, and drugstores.

Competito

r

Brand Features

L’Oréal Maybelline Fit Me Foundation

Lightweight formula that lets skin breathe and is

noncomedogenic; light to medium coverage; SPF

18; 18 shades available; 5-D technology to match

skin’s natural tones

L’Oréal L’Oréal Paris True Match Super Blendable Makeup

Noncomedogenic; light to medium coverage; Select

shades provide SPF 17; available in 33 shades

Revlon Revlon Colorstay Makeup

Noncomedogenic; medium to full coverage; 2 types

of formulas depending on skin type; provides SPF 6

or SPF 15 depending on formula type; will not rub

off due to normal wear.

Channels and Logistics Review

Most affordable makeup brands are found to occupy about two to three aisles

worth of space in designated beauty areas in discount department stores. Procter &

Gamble will definitely purchase a spot to display Cover Girl’s Outlast Stay Fabulous 3-

in-1 foundation in these aisles. Because Cover Girl is positioned as an affordable

makeup brand that offers quality results, Procter & Gamble should consider expanding

the availability of Cover Girl in affordable retail stores like Marshalls, TJ Maxx,

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Burlington Coat Factory and Ross to appeal to adult women and mothers who are on a

budget. For teenage consumers, P&G should consider partnering with big retailers like

Forever 21 or Charlotte Russe that both sell affordable, trendy clothing that make a

statement.

Cover Girl Outlast Stay Fabulous 3-in-1 foundation is currently available online

through discount beauty stores like ulta.com and amazon.com as well as on the Cover

Girl website.

Strengths, Weaknesses, Opportunities and Threat Analysis

Cover Girl’s Outlast Stay Fabulous 3-in-1 foundation has many strengths it can

build from, but one of the biggest weaknesses of the product is its limited shade range

and that it is not noncomedogenic. The opportunities that arise for this product are that it

could be formulated for different skin types and that more shades could be available to

target more women of color. Threats to this foundation are private labels that make

products of similar quality, but are sold at lower prices and national competitor’s wide

range of shades available to consumers.

Strengths

1. Recognition: Cover Girl is a 50 year-old brand from the U.S. that has constant

endorsements from celebrities and it has also sponsored the reality show

America’s Next Top Model where winners of the competition go on to become

new cover girls for the brand. This provides TV airtime for many of Cover Girl’s

products.

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2. Multitasking ability: Because this foundation includes the benefits of a primer,

concealer and foundation, saves consumers time and money that could be spent

on other products.

3. Pump feature: This allows consumers complete control over the amount of

product the desire to use. It also is much more sanitary to use a pump as opposed

to a screw-top cap. This feature also allows the product to have a

4. Lasting ability: Since 2004 Cover Girl’s Outlast line of products are known to

provide saturated pigments that last all day. The Outlast Stay Fabulous 3-in-1

foundation is no exception. This foundation is able to last up to a nine-hour day.

Weaknesses

1. Shade range: Although the foundation is available in 14 shades, Cover Girl

needs to provide many more to stay competitive. The more shades Cover Girl

provides the more consumers, particularly women of color, it can attract and

target.

2. Suitability for skin types: There is not a statement on the foundation’s product

label that suggests it is noncomedogenic. It does say that it is a “shine free”

formula, but that is a very vague statement that could potentially turn off

consumers who have sensitive skin. Like Cover Girl’s Clean Liquid Makeup

foundation, the Outlast Stay Fabulous 3-in-1 foundation should have other

formulations for sensitive, dry and normal skin. Again, providing more options to

consumers can attract their brand loyalty.

Opportunities

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1. Beauty trends: All natural, organic makeup is increasingly becoming popular

and even though Cover Girl did experiment with this trend through their now

discontinued, NatureLuxe Silk foundation, it can learn from their mistakes and

develop a product the fuses the benefits of the Outlast Stay Fabulous foundation

and the features of a product that is good for the skin.

2. Growing markets: Currently, India and China are two of the biggest, emerging

markets. Even though both economies have been experiencing a dip in GDP

growth in 2013 as opposed to previous years, the middle-class of China is

expected to be the second biggest in the world with India’s middle class being the

fourth biggest by 2020. In fact, Asia’s total continental middle class is predicted

to amount to 1.75 billion people by 2020, which means a tremendous growth in

consumption.

Threats

1. Private labels: Joseph Agnese, from S&P Capital IQ, reported in the February

2014 Household Nondurables Industry Survey that private labels were gaining

popularity because of their low prices compared to national brands. Even though

4 out of 10 consumers said they would never resort to a private label in terms of

personal beauty products, this still equates to 60% of consumers willing to try out

these private labels.

2. Products with more than 20 shades to choose from: The wide variety of shades

that L’Oréal Paris, Revlon, and Maybelline offers to consumers can choose from

seems much more attractive than the mere 14 shades Cover Girl offers with this

foundation.

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Objectives and Issues

Cover Girl has set an ambitious objective that it believes it can still achieve for its

Outlast Stay Fabulous 3-in-1 foundation for the first two years of its market entry.

First Year Objectives

During its first year into the market, Cover Girl wants to attain a 2% market share

of the face make-up segment of the global make-up market. Looking at figures from

2011, the face make-up accounts for 35.1% of the total global make-up market. This

means that Cover Girl wants to achieve approximately $266 million in sales by selling

about 27 million bottles of foundation at an average retail price of $9.95.

Second Year Objectives

During its second year, Cover Girl would like to introduce more formula options

that accommodate different skin types as well as additional shades to better match

consumers’ unique skin tones. The second-year objective for Cover Girl would be for it

to double its sales from the first year, to $532 million.

Issues

The main issue in launching this brand is going to be the number of already

established long-lasting, long-wear drugstore liquid foundations that come in a multitude

of shades. Cover Girl will hope to present shades that are applicable for most consumers

and with more time and more investment, it will later release more shades. For now, it

will try to place emphasis on performing up to its claims of providing a shine-free long-

wear.

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Marketing Strategy

Positioning

Cover Girl’s Outlast Stay Fabulous 3-in-1 foundation will be positioned as a

multitasking product that eliminates the need for extra, costly face makeup products. This

will allow Cover Girl to differentiate itself from other long-wearing drugstore

foundations. The focus for marketing this product will be on conveying the idea that this

foundation is a “holy grail” type product. This means that it was long sought after, was

previously available through more luxurious brands, but is now affordable and performs

what it claims.

Product Strategy

Outlast Stay Fabulous 3-in-1 foundation will be sold with all the features that

were previously mentioned in the Product Review section. As awareness grows, Cover

Girl plans on releasing more shades and different types of formulations to further meet

the unique needs of consumers’ skin types. This product is also going to marketed to

compliment the existing Outlast line as well.

Pricing

Because long-wear drugstore foundations are priced within the same range, Cover

Girl will implement a competition-based pricing strategy. This particular foundation

emphasizes that it provides consumers three benefits in one product so pricing it too low

would devalue the foundation. If it is priced too high then it would not match Cover

Girl’s objective of providing quality at an affordable price, thus alienating price-

conscious consumers. Prices for this product will vary depending on where it is

distributed, for instance, prices online may be cheaper, but consumers ultimately pay

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shipping costs to make up for the low prices. In-store purchases will typically be higher

so average in-store price should be set at $9.95 and online prices should vary between

$8.99 and $9.50 per bottle.

Distribution Strategy

As previously mentioned in the Channels and Logistics Review section, Cover

Girl will focus its main distribution strategy towards drugstores, discount department

stores and online retailers. In order to do this, Cover Girl distributes its product through

Procter & Gamble’s distributing company, The Procter & Gamble Distributing Company

LLC.

Marketing Communication Strategy

Online and social media marketing: The typical targeted consumer for Cover Girl

spends a large amount of time on the Internet rather than looking at traditional

media channels like printed advertisements and broadcasted advertisements. The

key strategy in using online marketing is to drive web traffic up and establish a

better connection with consumers through social media sites like Facebook,

Twitter and Instagram. Select prominent bloggers and YouTube vloggers can be

employed to give a first-hand, honest review of the Outlast Stay Fabulous 3-in-1

foundation to thousands of potential consumers. It is important to not pay these

bloggers and vloggers or that would send a biased message.

Sales promotions: Even though sales promotions should not be constantly used,

Cover Girl could implement a temporary deal to attract hesitant consumers. A

coupon could be made where if consumers buy one Outlast Stay Fabulous 3-in-1

foundation then they would get the original LashBlast mascara at a half-off price.

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Event marketing: The cover girls who endorse the brand can be paid to wear the

foundation during red carpet events to further showcase the foundation’s ability to

hold up against the numerous paparazzi camera flashes.

Marketing Research

Cover Girl and P&G will monitor prominent blogger/vlogger opinions and

discussions on Facebook pages as well as tweets from Twitter according to specific hash

tags. These methods will give P&G an understanding of customer satisfaction and any

additional needs that the foundation does not meet.

Action Programs

Cover Girl’s Outlast Stay Fabulous 3-in-1 foundation will be released this April. Below

are the summaries of the next four months’ action programs of the year.

April: Cover Girl representatives will educate retailers about the campaign and

the added benefits of selling this product in their stores. These representatives are also

responsible for ensuring that these retailers are aware of the product features so that they

are advertised correctly and are displayed correctly as well. Cover Girl will have its

celebrity cover girls film short advertisements alluding to the next big thing in makeup,

an all-in-one, multitasking product that is perfect for any young woman with a busy

lifestyle. These advertisements will be uploaded onto Cover Girl’s YouTube channel and

shared onto its Facebook page and Twitter page. More hype will build after product

samples are given to prominent blogger/vloggers.

May: When this foundation is finally available for retail purchase, in-store

displays will be strategically arranged so that consumers’ eyes are drawn toward this new

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product. Full 30-second YouTube ads and behind-the-scenes videos featuring celebrity

cover girls will be available for viewing. Cover Girl’s website will feature this foundation

as the first ad on its homepage.

June: As summer starts to roll around, the foundation will be put to the test in

hotter environments. Cover Girl will provide tips and tricks for maximizing the

foundation’s long-wear ability in summer months on its website.

July: Cover Girl will then release a sheerer version of this foundation so that it

does not feel too heavy or appear too cakey on consumers’ skin.

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References

Agnese, J. (2014). Industry Surveys: Household Nondurables. New York: S&P Capital

IQ Industry Surveys .

Armstrong, G., & Kotler, P. (2013). Marketing: An Introduction 11th ed.. Upper Sadde

River, New Jersey : Prentice Hall.

COVERGIRL OUTLAST STAY FABULOUS 3IN1 FOUNDATION BROAD

SPECTRUM SPF 20 - 805 IVORY (ensulizole) liquid . (n.d.). Daily Med.

Retrieved March 19, 2014, from

http://dailymed.nlm.nih.gov/dailymed/drugInfo.cfm?id=76313

Company Financials . (n.d.). Mergent Online. Retrieved March 19, 2014, from

http://www.mergentonline.com/companyfinancials.php?compnumber=6814

Fit Me® Foundation. (n.d.). Maybelline. Retrieved March 19, 2014, from

http://www.maybelline.com/Products/Face-Makeup/Foundation/fit-me-

foundation.aspx

Global Make-Up Industry Profile. (n.d.). Marketline Industry Profile. Retrieved March

19, 2014, from http://web.a.ebscohost.com/ehost/detail?vid=8&sid=3426dad0-

c4a1-48a7-b81c-2677297d437b

%40sessionmgr4002&hid=4206&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d

%3d#db=bth&AN=87782120

Global Personal Products Industry Profile. (2013). Personal Products Industry Profile:

Global, 1-34.

Make-Up Industry Profile: United States. (2013). Make-Up Industry Profile: United

States, 1-38.

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Procter & Gamble. (n.d.). PG.com Brands: hair products, beauty brands, well being.

Retrieved March 19, 2014, from http://www.pg.com/en_US/brands/index.shtml

The Procter & Gamble Company SWOT Analysis. (n.d.). Procter & Gamble SWOT

Analysis. Retrieved March 19, 2014, from

http://web.a.ebscohost.com/ehost/detail?vid=5&sid=3426dad0-c4a1-48a7-b81c-

2677297d437b

%40sessionmgr4002&hid=4206&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d

%3d#db=bth&AN=89712753

P&G's Beauty Sales Slip, Profits Rise. (2013). WWD: Women's Wear Daily, 206(87), 3-1

True Match Super Blendable Makeup. (n.d.). L'Oréal Paris. Retrieved March 19, 2014,

from http://www.lorealparisusa.com/en/Products/Makeup/Face/Foundation/True-

Match-Super-Blendable-Makeup.aspx?shade=Classic-Tan-N7

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