Professional Documents
Culture Documents
From a small, family-owned business to the number one cosmetics company in America,
Maybelline New York takes trends from the catwalk to the sidewalk, empowering women to
make a statement, explore new looks, and flaunt their own creativity and individuality. Inspired
by confident, accomplished women, Maybelline gives you scientifically-advanced formulas,
revolutionary textures and up-to-the-minute, trendsetting shades effortlessly, affordably,
beautifully.
INTRODUCTION
November 2, 1998 was a rewarding day for Feoff Skingsley. Mr. Skingsley, the managing
director of L’Oreal’s Indelor unit, had worked tirelessly to bring L’Oreal’s wholly owned
subsidiary. Maybelline to India. Mr. Skingsley said “India is the last major piece in the
Asian jigsaw for us because the Maybelline brand has been in virtually every Asian country
and India was the big gap in that puzzle.” Furthermore, Mr.Skingsley recalled the long, hard
road to get to this point, acknowledging. “Maybelline was a long development process.”
Maybelline faced a difficult situation upon its entry into India, a country already endowed
with an established leader in the cosmetics field, Lakme Lever(a subsidiary of the Unilever
corporation).
The American image in India was found to have a positive effect. Maybelline has continued with
the same global branding in India using supermodel Christy Turlington and Sarah Michelle
Gellar to promote its products. Ads were printed in Indian editions of Elle, Cosmopolitan, and
Femina and TV spots were conducted on Star Plus.
Culture of India:
India, with a population of over a billion people, is a country of contrasts. This population can
be divided into two major subgroups: Urban and Rural. India's languages, religions, dance,
music, architecture, food and customs differ from place to place within the country, but
nevertheless possess a commonality. The culture of India is an amalgamation of these diverse
sub-cultures spread all over the Indian subcontinent and traditions that are several millennia
old.[1]
Regarded by some historians as the "oldest living civilization of Earth", the Indian tradition
dates back to 8000 BC[2] and has a continuous recorded history for over 2,500 years.[3] Several
elements of India's diverse culture — such as Indian religions, yóga and Indian cuisine — have
had a profound impact across the world. Culture of India
About pricing
Pricing is the process of determining what a company will receive in exchange for
its products. Pricing factors are manufacturing cost, market place, competition,
market condition, and quality of product. Pricing is also a key variable in
microeconomic price allocation theory. Pricing is a fundamental aspect of
financial modeling and is one of the four Ps of the marketing mix. The other
three aspects are product, promotion, and place. Price is the only revenue
generating element amongst the four Ps, the rest being cost centers.
Price/quality relationship
The price/quality relationship refers to the perception by most consumers that a relatively high
price is a sign of good quality. The belief in this relationship is most important with complex
products that are hard to test, and experiential products that cannot be tested until used (such as
most services). The greater the uncertainty surrounding a product, the more consumers depend
on the price/quality hypothesis and the greater premium they are prepared to pay. The classic
example is the pricing of Twinkies, a snack cake which was viewed as low quality after the price
was lowered. Excessive reliance on the price/quantity relationship by consumers may lead to an
increase in prices on all products and services, even those of low quality, which causes the
price/quality relationship to no longer apply
From the marketer's point of view, an efficient price is a price that is very close to the maximum
that customers are prepared to pay. In economic terms, it is a price that shifts most of the
consumer surplus to the producer. A good pricing strategy would be the one which could balance
between the price floor (the price below which the organization ends up in losses) and the price
ceiling (the price beyond which the organization experiences a no demand situation).