Institute of Business Management & Administrative Sciences

Project Report On:

Maybelline New York

Submitted by:

Areeba Ahmad Ansari

Submitted to:

Dr. Javed Iqbal Shah

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Maybelline’s Vision:

We’re from New York, and in this city you have to be ready for anytime that’s why we make no
Hassle, High-performance makeup – tried and tested on our streets. So whatever the world throws at you,
you’ll look and feel ready.

Maybelline’s Mission:

Maybelline New York is the number one cosmetic brand in the world, available in over 120 countries.
By combining technologically advanced formulations with on-trend expertise and New York edge,
Maybelline New York's mission is to offer innovative, accessible and effortless cosmetics for every
woman.

Mission Statements Components:

For a mission to be effective it must include the following 9 components:

1. Customers: Who are your customers? How do you benefit them?

2. Products or services: What are the main products or services that you offer? Their uniqueness?
3. Markets: In which geographical markets do you operate?
4. Technology: What is the firm’s basic technology?
5. Concern for survival: Is the firm committed to growth and financial soundness?
6. Philosophy: What are the basic beliefs, values and philosophies that guide an organization?
7. Self-concept: What are the firm’s strengths, competencies or competitive advantages?
8. Concern for public image: Is the firm socially responsible and environmentally friendly?
9. Concern for employees: How does a company treat its employees?

Analysis of Components
Maybelline new York
Sr. Component Does it exist in mission statement or not
1. Customers Yes
2. Product & Services Yes
3. Markets Yes
4. Technology Yes
5. Survival, growth and profitability Yes
6. Philosophy No
7. Self-concept Yes
8 Concern for public image Yes
9. Concern for employees Yes

SWOT Analysis of Maybelline New York:

SWOT (strengths, weaknesses, opportunities and threats) for analyzing internal and external factors.

Strengths:

1. Wide product range: In each category Maybelline has number of choice to offer to its
customers.
2. Product Quality: Maybelline offers the best quality to its customers; most of the makeup that
they offer is mineral based and is also tested against any skin allergies.
3. Innovative Product Display: Maybelline offers innovation in its products and also in the store to
attract as many as customers as possible.
4. Diversification of Risks: Maybelline has invested in many other markets across the world in
order to diversify.
5. Good Marketing: Maybelline is a leading brand and is good at marketing. It has used many
pretty and well known faces for the commercials like Gigi Hadid, Alia Bhatt.
6. Well-Known Target Audience: they know exactly who they are targeting and what their
customers want, Maybelline is well known for fulfilling the demands of its customers.
7. Research & Development: Maybelline has a strong research and development department and
resource capital. Research and Development forecast the future market demand, changes in the
market, and customer expectations.
8. Social Media: Though Maybelline was established in 1915, they stepped into social media in
2006, which shows that they were aware of the future developments and conducted various
campaigns through Youtube.
9. Availability: Maybelline Products are available in over 130+ countries and their brand is well-
recognized by people and it has a good reputation. 
10. Affiliated with L’Oréal: Maybelline had affiliated themselves with the L’oreal company who
was the top player in the cosmetics industry. This association had created huge repetition and
trust among the consumers.

Weaknesses:

1. Poor Website Maintenance: In the E-commerce booming era the website of the Maybelline
looks pretty old-fashioned and it is difficult to navigate buttons and to display images.
2. Chemical Presence: During the laboratory testing Maybelline had claimed that its products have
a variety of chemicals in them.
3. Poor Product Differentiation: Lakme has multiple choices for a single product category but the
consumers aren’t given product differentiation between one among others thus it leaves them in
frustration. 
4. Limited Product Category: Maybelline has stopped themselves with cosmetic products alone.
They could have expanded their product lines to bath and shower-based products which could
have generated more revenue than their competitors.
5. Poor social media presence: In comparison to its competitors, Maybelline does not have a very
prominent social presence. Its nearest rivals like Revlon or Lakme have continuous updates on
products, favorable reviews and celebrity pin-ups on social media portals like Facebook.
Their Twitter page has a huge following and is high on customer engagement.
6. Not for sensitive skin: Some people have sensitive skin and they’re allergic to cosmetic and
beauty products. Bad word of mouth marketing pushes many new customers away from the
 brand. Maybelline should make it clear in the advertisement if the skincare products cause some
sort of reaction in some people.
7. Competition: The beauty and cosmetic products industry has become very competitive in recent
years. New brands and new products are decreasing the market share for every brand. Therefore,
it’s also impacting the market share of Maybelline.
8. Organizational Culture: Organizational culture also becomes a big internal weakness when it
does not align with the strategic/business objectives. For example, the main strategic objective of
the chosen business organization is to launch innovative and new products in the market. But
there exists a risk averse attitude prevailing in organizational culture, which discourages
employees from thinking creatively.
9. Pricing Strategy: The prices charged by the business may not be perceived as justified when
compared to the product/service characteristics. It indicates the need to revise the pricing strategy.
10. Decision Making: The decision making in the Maybelline Inc. About Face takes too much time,
causing expensive delays in introducing new products in the market.

Opportunities:

1. Parent Brand: As we know that Maybelline is the subsidiary brand of L’Oreal since 1996.
L’Oreal is also the world’s top brand in the cosmetic and beauty products manufacturing
company. Therefore, Maybelline should utilize all the resources and take full advantage of the
parent company’s brand name and resources.
2. Professional Woman: The numbers of professional women have been increasing in various
industries. It has increased the demand for professional attire for women. Since Maybelline is
already running its business in the beauty and personal care industry, now it should target
businesswomen.
3. Personalized Products: Just like everyone is different and everyone’s needs and requirement of
personal care products is also different. Nowadays, people want customized services and even
they’re willing to spend extra money for them. Maybelline should offer customized and
personalized services to the customer.
4. The shift in consumer behavior: People across the world are now more open to using makeup
in all kinds of settings. Most women today are well informed on makeup trends and this has
resulted in them preferring to use cosmetics which is a huge opportunity.
5. Increase in per capita income: There is a global increase in per capita income and
therefore disposable income. This has resulted in an increase in the impulsive shopping behavior
of customers.
6. Improvement in the customers- lifestyle and standards mean more consumption on consumer
goods and services, and more opportunities to encourage the purchase.
7. Niche: The emergence of new market segments and new niches provide business and product
line expansion opportunities.
8. Global Market: The diminishing boundaries and rising global interconnectedness allow the
organization to get into the international market; target geographically dispersed customer base
and increased profitability.
9. Growth in population: The exponential growth in the population, and particularly in the
existing or potential customer segments is a great growth opportunity for the business
organization.
 10. Market Knowledge: The changing customer needs, tastes and preferences can act as an
opportunity if the business organization has good market knowledge.

Threats:

1. Substitute: The market is full of substitute products and they all are offering the same products.
Therefore, customers waste no time choosing the substitute product. The availability of
substitute products makes it difficult for the company to maintain its market share.
2. Afraid to accept latest trend: People love the idea of change. When it comes to accepting the
change, they’re hesitant to accept it. Customers accept some trends and leave the others.
3. Animal Testing: Usage of chemicals in beauty products and experimentation on animals has
brought a lot of criticism on Maybelline. Many eco-friendly customers stopped buying the
company’s products ever since they found out about products testing on animals.
4. Economic Crisis: Whenever there occurs an economic crisis and pandemic situation the people
involved in cosmetic products become too low and most of them don’t even look into it at  such
times 
5. Negative Publicity: It is showcased that most cosmetic companies show false advertising such
as improvement in skin tone. A wide range of people say that these cosmetic products are
against culture, cause ill effects on health and skin, and they aren’t natural.
6. Legal factors: Companies highly face legal issues such as false-claiming products, poor quality
products, and the court may levy high fine amounts on the company if proven. It may force
companies to follow the zero-chemical cosmetics and may ban chemicals usage on cosmetics. 
7. Shortage of labor: Shortage of skilled labor in the market can make it difficult for the
organization to attract talent with the right skills set.
8. Globalization: The globalization pushes the organization to cross national boundaries and deal
with cultural diversity, which may have a detrimental impact if the organization lacks the
cultural intelligence.
9. Cost of production: The rise in inflation increases the cost of production and affects the
business profitability.
10. Poor Economic Conditions: The deteriorating economic conditions affect business
performance when they directly influence the customers' spending patterns and purchasing.

Strategies adopted by Maybelline:

Integration Strategies:
Forward Integration: Maybelline is its own distributor.

Backward Integration: Maybelline owns its suppliers.

Horizontal Integration: Maybelline does not acquire any brands, because it is the sub brand of
L’Oreal.

Intensive Strategies:

Market Penetration: Maybelline has done market penetration, by increasing its sales.

Market Development: Maybelline has increased its market by introducing products in new
international and domestic markets.

Product Development: Maybelline releases many new products every year which increase the
depth and width in product lines like Fitme.

Maybelline New York Internal Audit

The Internal Factor Evaluation (IFE) Matrix
Sr. Key internal factors Weight Rating Weighted score

Strengths

1. Wide product range 0.1 4 0.4

2. Product Quality 0.08 4 0.32

3. Innovative product display 0.07 4 0.28

4. Diversification of Risks 0.02 3 0.06

5. Good marketing 0.07 4 0.28

6. Well-known target audience 0.05 3 0.15

7. Research & development 0.05 3 0.15

8. Social media 0.03 3 0.09

9. Availability 0.05 3 0.15

10. Affiliated with L’Oréal 0.06 4 0.24

Weakness

1. Poor website maintenance 0.05 1 0.05

2. Chemical presence 0.08 1 0.08

3. Poor product Differentiation 0.03 2 0.06

4. Limited product category 0.03 2 0.06

5. Poor Social media presence 0.05 1 0.05

6. Not for Sensitive Skin 0.05 1 0.05

7. Competition 0.05 1 0.05

8. Organizational Culture 0.03 2 0.06

9. Pricing strategy 0.03 2 0.06

10. Decision making 0.02 2 0.04

Total 1.00 2.68

Maybelline New York External Audit

The External Factor Evaluation (EFE) Matrix
Sr. Key internal factors Weight Rating Weighted score

Opportunity

1. Parent brand 0.10 4 0.40

2. Professional women 0.05 3 0.15

3. Personalized product 0.03 2 0.06

4. The shift in consumer behavior 0.04 2 0.08

5. Increase in per capita income 0.06 3 0.18

6. Improvement in customers-lifestyle and standards 0.06 3 0.18

7. Niche 0.03 2 0.06

8. Global market 0.07 1 0.07

9. Growth in population 0.04 1 0.04

10. Market knowledge 0.05 2 0.10

Threats

1. Substitute 0.09 4 0.36

2. Afraid to accept latest trend 0.06 3 0.18

3. Animal testing 0.01 1 0.01

4. Economic crisis 0.06 2 0.12

5. Negative publicity 0.05 3 0.15

6. Legal factors 0.01 2 0.02

7. Shortage of labor 0.02 2 0.04

8. Globalization 0.05 3 0.15

9. Cost of production 0.03 1 0.03

10. Poor economic conditions 0.02 2 0.04

Total 1.00 2.42

Critical Success Factor (CPM)

Comparison of 3 major competitors firm:

  Maybelline New York
 Estee Lauder
 L’Oreal Paris

Maybelline New York Estee Lauder L’Oreal Paris

Critical W R W.SC R W.SC R W.SC

Success
Factors
0.17 4 0.68 4 0.68 4 0.68
Wide Product
Range
Product 0.4 3 1.2 4 1.6 3 0.12
Quality

R&D 0.15 4 0.6 4 0.6 4 0.6

Good 0.03 4 0.12 4 0.12 3 0.09

Marketing

Social Media 0.08 3 0.24 4 0.32 4 0.32

Poor Product 0.04 2 0.08 2 0.08 2 0.08

Differentiation

Chemical 0.02 1 0.02 2 0.04 1 0.02

Presence

Poor Website 0.02 1 0.02 2 0.04 1 0.02

Maintenance

Pricing 0.05 2 0.1 2 0.1 2 0.1

Strategy

Not for 0.04 1 0.04 1 0.04 1 0.04

sensitive skin

Total 1.00 3.10 3.62 2.07

CPM shows that Estee Lauder has the most strong competitive position as compared to Maybelline and
L’Oreal Paris.

SWOT Matrix:
Strengths Weaknesses

1. It has a wide variety of product Maybelline has a poor product differentiation

2. Products are displayed beautifully Website is not maintained as it should be

3. Maybelline offers best product quality to its Products has limited product category
customers

4. The company has invested in many other Maybelline’s social media platforms are not up to
markets date

5. Their marketing strategies are on point Their products are not for sensitive skin

6. They know well their target audience Competition is really high among several makeup
brands

7. Maybelline invests in R&D Products are saturated with chemicals

8. They are affiliated with L’Oréal, which Organizational culture is not aligned with strategies
creates a good reputation

9. Products are available in more than 130 Decision making takes a lot of time
countries

10. Maybelline’s social media game is so strong Their pricing strategy is poor

Opportunities Threats

1. Maybelline is affiliated with a strong poor economic conditions affect business performance
parent brand, L’Oréal.

2. The brand has many professional woman market is full of substitute

in every industry

3. Maybelline offers customized products consumers are afraid to accept the latest trends

4. consumer behavior has shifted towards eco-friendly consumers criticize it due to animal
makeup products testing
 5. per capita income has increased
6. lifestyle of consumers has changed
significantly
.
7. niche is an important opportunity to
extend business
8. globalization has played an important role
9. growth in population means increased
consumers
10. market knowledge can be a great growth
component
SO Strategies
1. Maybelline can offer wide variety of
customized products. (S1, O3)
2. Strong R&D and market knowledge can
be of great use. (S7,O10)
ST Strategies
1. Their market strategies are on point which
will minimize the high cost of production
by attracting more customers.(S5,T10)
2. The brand is affiliated with L’Oréal which
will help in decreasing the negative
publicity. (S8,T6)
SPACE MATRIX
Financial Position(FP) (+1 to +7) Rate
economic crisis can push away consumers
negative publicity
legal factors are a great threat
shortage of skilled labors
globalization is also a threat due to lack in culture
knowledge
inflation causes high cost of production
WO Strategies
Strong parent brand can be used for product
differentiation. (W1, O1)
Social media should be updated by keeping in view
the lifestyle of consumer. (W4,O6)
WT Strategies
The products are being tested on animals and are full
of chemicals which push away the eco-friendly
customers. (W4.T5)
Market is full of competition and also full of substitute
(W6.T2)
Average Score
ROI 5 4.5

Liquidity 5

Working Capital 4

Cash Flow 4

Competitive Position (CP) (-1 to -7)

Market Share -2 -3

Product Quality -3

Product Life Cycle -5

Customer Loyalty -2

Stability Position (SP) (-1 to -7)

Technological Changes -2 -4.25

Rate of Inflation -5

Price of competing products -4

Price Elasticity -6

Industry Position (IP) (+1 to+7)

Growth Potential +4 4.25

Profit Potential +5

Financial Stability +3

Productivity +5
 FP

Conservative Aggressive

CP IP

Defensive Competitive

X-Axis=-0.125

Y-Axis=0.125 SP

The directional vector may appear in the conservative quadrant (upper-left quadrant) of the SPACE
Matrix, which implies staying close to the firm’s basic competencies and not taking excessive risks.
Conservative strategies most often include market penetration, market development, product
development, and related diversification.

IE MATRIX

Score of IFE Matrix: 2.68

Score of EFE Matrix: 2.42

Calculated score of IE matrix falls into the I, II and IV quadrant. Which means Maybelline can do
backward, forward and horizontal integration along with market penetration, market development and
product development. This phase indicates that the company can grow more.

The Grand Strategy Matrix

 Maybelline falls
in Quadrant I, it
has a strong
competitive
position.

On the basis of IE Matrix the Grand Strategy Matrix is built, it shows that Maybelline can adopt
integration strategies (backward, forward, horizontal), intensive strategies (market penetration, market
development, product development) and related diversification. This puts them in a strong competitive
position.

Quantitative Strategic Planning Matrix (QSPM)

Alternate 1 Alternate 2
Market Development Market Penetration
Strengths Weight AS TAS AS TAS

Wide product range 0.1 3 0.3 4 0.4

Product Quality 0.08 3 0.24 3 0.24

Innovative product 0.07 2 0.14 3 0.21

display
Diversification of 0.02 - - - -
Risks
Good marketing 0.07 4 0.28 3 0.21

Well-known target 0.05 4 0.2 2 0.1

audience
Research & 0.05 3 0.15 3 0.15
development
Social media 0.03 3 0.09 3 0.09

Availability 0.05 - - - -

Affiliated with 0.06 - - - -

L’Oréal
Weaknesses

Poorwebsite 0.05 2 0.1 2 0.1

maintenance
Chemical presence 0.08 - - - -

Poor product 0.03 1 0.03 1 0.03

Differentiation
Limited product 0.03 2 0.06 2 0.06
category
Poor Social media 0.05 3 0.15 2 0.1
presence
Not for Sensitive Skin 0.05 - - - -

Competition 0.05 4 0.2 4 0.2

Organizational 0.03 - - - -
Culture
Pricing strategy 0.03 3 0.09 3 0.09
Decision making 0.02 2 0.04 2 0.04

Opportunity

Parent brand 0.10 - - - -

Professional women 0.05 3 0.15 2 0.1

Personalized product 0.03 2 0.06 3 0.09

The shift in consumer 0.04 2 0.08 2 0.08

behavior
Increase in per capita 0.06 - - - -
income
Improvement in 0.06 - - - -
customers-lifestyle and
standards
Niche 0.03 3 0.09 3 0.09

Global market 0.07 3 0.21 3 0.21

Growth in population 0.04 - - - -

Market knowledge 0.05 4 0.2 4 0.2

Threats

Substitute 0.09 3 0.27 3 0.27

Afraid to accept latest 0.06 2 0.12 3 0.18

trend
Animal testing 0.01 - - - -

Economic crisis 0.06 - - - -

Negative publicity 0.05 - - - -

Legal factors 0.01 3 0.03 3 0.03

Shortage of labor 0.02 1 0.02 2 0.04

Globalization 0.05 3 0.15 2 0.1

Cost of production 0.03 3 0.09 2 0.06

Poor economic 0.02 - - - -

conditions
Total 3.54 3.47

QSPM shows that the total score for market development is 3.54 and for market penetration is
3.47,which means Maybelline should go for market development as compared to market
penetration.