Brand Comparison Background of L'oreal Term Paper

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Or those not willing to drop down to the mid-priced brands, more and more drugstores are trying to help ease the effect of rising prices by employing tactics such as money-back guarantees and heavy couponing. Tode (2010) went further to state that Yanke noted that Medic has offered a money-back guarantee in cosmetics for eight years and that it promotes the category heavily with advertising and coupons, but that it can't afford dedicated beauty specialists.

"Consultants wouldn't do that much in drugstores," she noted. Such efforts appear to be appreciated by consumers, at least the ones who responded to the Makeup Alley poll. "Drugstore prices are getting steeper and steeper, but you can find great sales at stores like CVS and Harmon Drug. (Tode, 2010)

Channels of Distribution

Wood (2010) indicates that a $50 million advertising campaign, a focus on treatment qualities for its color cosmetics, and a strong determination to usurp Cover Girl's number one position in the mass market makeup business will propel Maybelline into the Nineties, according to Gary Mulloy, its executive vice president.

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Current annual worldwide volume for the Memphis-based cosmetics company is roughly $400 million, said Mulloy. Of that total, Maybelline's North America division had approximately $280 million in sales last year

. Maybelline's parent company, Schering-Plough Corp. recently sold its two European color cosmetics businesses -- Rimmel International, Ltd., of the United Kingdom and Chicogo GmbH of West Germany -- to Unilever NV. That sale is not expected to have an impact on sales of Maybelline. Internationally, Maybelline is distributed in more than 30 countries, with strong representation in Japan, Australia and Central America (Wood, 2010)......

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