Description
Topic: Beauty brand Estee Lauder (e.g. Maybelline, La Mer)
Concept: discount anchoring (disadvantage: over-reliance on discounts), limited scarcity, sunk cost
Introduction: 100 words (Antarc) (Background + Purpose + structure)
background phenomenon
Purpose: Why do we do this survey? What are the similarities and differences in the marketing strategies of two brands belonging to the same company?
structure
Nowadays, beauty brands use targeted marketing strategies according to different market segments to influence the purchase decision-making process of target consumers. For example, NYX uses a price strategy of keeping prices low to attract young consumers (Mangurali, 2022). Given the dynamics and diversity of consumer groups, how to use marketing strategies to remain competitive has become the primary challenge facing beauty brands.
The purpose of this report is to explore the similarities and differences in the marketing strategies adopted by two beauty brands affiliated with Estee Lauder – Maybelline and LA MER for different market segments by analyzing three real-life examples. difference.
This report is divided into 5 parts, namely Introduction; Aggregation and description of examples; Preliminary and in-depth analysis of examples; Recommendation and Conclusion.
Among them, the part I am responsible for is In-depth analysis of the examples 500 words
outline：
(Two brands) Similarities and differences
How effective is one method in different brands?
Does the same brand use different strategies for different people (consumer segments) and different scenarios?
Critical Thinking: Effectiveness, Ethics
Effectiveness and limitations: Is it effective in different scenarios?
For the report, please use 12-point font, at least 2cm margin spacing throughout, 1.5 line spacing, and full justification. Remember to insert page numbers.
Unformatted Attachment Preview
In the current state, beauty brands use targeted marketing strategies based on different
market segments to influence the purchasing decision process of their target consumers. For
example, NYX uses a low-price strategy to attract younger consumers (Mangurali, 2022).
Given the dynamic and diverse nature of consumer segments, the use of marketing
strategies to remain competitive has become a primary challenge for beauty brands.
This report aims to analyse three real-life examples to explore the similarities and
differences between the marketing strategies adopted by two Estée Lauder beauty brands,
Maybelline and LA MER, in targeting different market segments.
This report is divided into five sections: Introduction; Aggregation and description of
examples; Preliminary and in-depth analysis of examples; Recommendation; and
Conclusion.
Aggregation and description of examples 400 字 （YANG)
Example 1: (anchoring)
Maybelline often runs promotions, discounts and special offers. As a consumer who often
goes to Chemist Warehouse, I often see the entire shelf covered with special price tags in
Maybelline display cabinets. As shown in the picture, the label clearly shows the discount
percentage. The “40% off” on the label is very conspicuous, as well as the original price and
the discounted price. I always stop by when I see these discount tags. These specials offer
lower prices that give me the perception of saving money, and the fear of missing out on the
opportunity drives me to shorten my decision-making time. Also, because they are cheap,
there are some new products that I haven’t tried that I’m willing to take the plunge and buy.
(Critical; impulsive spending, over-reliance on discounts)
Example 2: (scarcity)
And La Mer is expensive and doesn’t usually offer very deep discounts. But there are still
many consumers who are keen on this brand. From time to time, La Mer launches limited
edition products in different packaging or formulations. When it was new, I saw many
classmates and friends on social media buying this limited edition, as if more people would
be happy because they bought the limited edition (herd mentality). When I first went to the
counter, the salesperson said they were sold out. When I was shopping for the second time,
the salesperson told me that the stock was currently low. I bought the product immediately
after hearing what she said.
(Critical: Insufficient supply may lead to consumer dissatisfaction, so we need to control it
carefully)
Although it is expensive, I don’t do too much searching about the ingredients because I
always believe that the more expensive something is, the better. (Stereotype)
Example 3:(the sunk-cost)
I found that whether it’s Maybelline or La Mer, during certain holidays, there will be free small
gifts for every dollar spent. Brands sometimes do cross-selling (can you give me a specific
example of which brand does these two brands cross-sell with something, and then mention
boundling). I originally bought liquid foundation, but I got a discount on lipstick. . Even if
many consumers have already purchased the product they want, they will still purchase
other products to reach the amount required by the promotion. (For impulsive spending,
salespeople may encourage unnecessary waste)
Maybelline often conducts promotional activities, discounts, and special offers. As a frequent
consumer who goes to the chemist warehouse, I often find Maybelline display cabinets filled
with special price labels on the entire shelf. As shown in the figure, the label clearly shows
the percentage of discount. The “40% off” on the label is very prominent, in addition to the
original price and discounted price. I always stop because I see these discount labels. These
special offers offer lower prices, which makes me feel like I’ve saved money and afraid of
missing out on this opportunity, thereby shortening my decision-making time. In addition,
there are some new products that I have not tried before, and I am also willing to take risks
to purchase. (Impulsive consumption, excessive reliance on discounts)
The sea blue puzzle is expensive and usually does not offer very large discounts. But there
will still be many consumers who are passionate about this brand. Sea Blue Mystery
occasionally launches limited edition products in different packaging or formulas. When I first
started my new year, I saw many classmates and friends purchasing this limited edition on
social media, as if more people would be happy to buy it. When I first went to the counter,
the salesperson said it was already sold out. On the second shopping trip, the salesperson
told me that the inventory was already low, and I immediately purchased the product upon
hearing what she said.
(Critical: Insufficient supply may lead to dissatisfaction)
Although it is expensive, I don’t do too many searches about ingredients because I always
believe that the more expensive something is, the better. (Stereotypes)
I found that whether it’s Maybelline or La Mer, during certain holidays, there will be free small
gifts for every dollar spent. Brands sometimes do cross-sells, and I originally purchased the
liquid foundation, but I got a discount on the lipstick. Even if many consumers have already
purchased the product they want, they will still purchase other products to reach the amount
required by the promotion.
LA MER SCARCITY
MAYBELLINE ANCHORING
Preliminary and in-depth analysis of examples
Preliminary analysis of individual examples 500 字 (Bella)
Example 1: Maybelline usually emphasizes affordable prices and popular products to
attract price-sensitive consumers (Chen et al., 2022). Popular marketing strategies use
anchoring traps to attract customers who are first attracted by discount information
and affordable prices. Causes cognitive bias, which attracts the attention of
consumers at the cognitive stage. Another study shows that Maybelline’s social
strategy relies on the development of visual content (Thomas, 2023). Maybelline’s
success lies in utilizing a mixed marketing strategy. Maybelline mainly relies on thirdparty retailers, such as pharmacies, supermarkets and online channels. This
dependency may limit a company’s independent control over product placement,
pricing strategies and promotions, potentially impacting sales performance and
customer experience. Maybelline has limited involvement in leveraging direct-to-end
consumer channels such as independent retail stores and private label e-commerce
platforms. This situation may cause restrictions on the brand’s customer relationship
establishment and personalized consumption experience (Admin, 2023). Therefore,
Maybelline uses eye-catching low-price information to grab customers’ attention,
and price-sensitive customers tend to Decision stage to choose Maybelline products.
As one of the global cosmetic brands, Maybelline takes a significant market position
in the beauty industry.
Purchasing affordable products can bring a sense of satisfaction and accomplishment
as consumers feel they are getting great value for money when shopping. This sense
of psychological reward can enhance brand loyalty.
Example 2: The story of La Mer begins with Dr. Max Huber’s burn accident in the
laboratory. After more than 6,000 experiments over 12 years, Miracle Broth was
adopted as the soul ingredient of the brand. Its products miraculously repaired the
skin. Anti-aging effect (La Mer, 2023).
“We’re not a brand that does things broadly,” said Kendal Ascher, vice president and
general manager of La Mer North America. “It’s not ‘cater to the masses and try to
get share of market and volume,’ it’s ‘love the customers you have and really spoil
and pamper them so they feel like they’re part of a club.'” (Collins, 2019).
Lamer pays more attention to conveying brand value, making customers feel that
skin care is a kind of enjoyment, and injecting a sense of ritual into skin care. Making
them more inclined to pursue luxury goods, focus on sensory experiences, and satisfy
social and higher self-care needs. In addition, the World Oceans Day launched by the
United Nations was promoted and established by La Mer (Eksouzian, 2021). For
consumers who care about environmental protection, this move will improve the
brand image of La Mer in the information search and evaluation of alternatives
stages. Compared with other brands of liquid foundation, which only strive to
improve the basic functions of liquid foundation, La Mer adds skin-nourishing
ingredients into the liquid foundation, advocating that it can also nourish the skin
during the wearing make-up period (INCI, 2023), distinctiveness and brand name
But the price is high (for comparison, on Amazon’s official website in Australia, 30ml
of Maybelline liquid foundation: the discount is $13, while the price of 30ml of La
Mer liquid foundation is $228). It will make consumers easily fall into Representative
heuristic and stereotype. With low production and low inventory, La Mer wants to
enhance the product’s appeal by maintaining its rarity and creating scarcity.
Moreover, La Mer has a higher price, and limited production is a common behavior in
the high-end market, which can maintain price stability and maintain brand value.
Example 3: Cross-selling and bundling behaviors take advantage of the sunk-cost
trap and framing trap in consumer cognitive traps. This has changed the consumer
psychology. The strategy in this case may encourage customers to get greater
discounts by purchasing more products, thereby obtaining additional value and
causing consumers to over-consumption. Ignoring actual purchase needs and
objective purchase costs tends to avoid making informed purchasing decisions.
Without this strategy, customers may purchase the specified products they need.
However, after launching this activity, customers may choose to continue purchasing
products they do not need because of the resources they have already invested in
the same brand products, thereby receiving what the merchant calls a greater
discount.
For merchants, it can speed up the customer’s decision-making process and make
purchasing decisions faster. The act of sending samples can attract new customers at
low cost, promote products, and increase brand awareness. But for La Mer, the
brand’s image uses scarcity caused by limited quantities and low production to
attract customers. However, providing samples means increasing inventory, which is
contrary to the brand value.
In-depth analysis of the examples 500 字 (Yutong)
outline：
(Two brands) Similarities and differences
How effective is one method in different brands?
Does the same brand use different strategies for different people (consumer segments) and
different scenarios?
Critical Thinking: Effectiveness, Ethics
Effectiveness and limitations: Is it effective in different scenarios?
Recommendation 300 字 （Yi)
Role: As a consumer, what should you do to avoid falling into the trap?
How to use it as a marketer
Stage: current environment + how to do in future environment (trend)
Conclusion：200 字(Antarc)
Control and autonomy of the subsidiaryHow autonomous is the subsidiary? How helpful are
the home market stakeholders overall in
supporting the subsidiary?
References
Admin. (2023, April 24). Maybelline SWOT analysis – The strategy story. The Strategy
Story – Simplifying Business Strategies. https://thestrategystory.com/blog/maybellineswot-analysis/
Brand Story. La Mer. (2023). https://www.lamer.com.cn/brand-story
Chen, Y., Feng, X., He, Z., & Liu, Y. (2022, April 29). The strategy of Maybelline to
increase consumers’ purchase intentions. The Strategy of Maybelline to Increase
Consumers’ Purchase Intentions | Atlantis Press. https://www.atlantispress.com/proceedings/icssed-22/125973967
Collins, A. (2019, February 21). La Mer Marketing Heritage Brand to millennials – and
Hollywood. WWD. https://wwd.com/feature/la-mer-is-marketing-heritage-brand-tomillennials-and-hollywood-1203027658/
Eksouzian, A. (2021, June 7). Vogue Australia.
https://www.vogue.com.au/culture/features/la-mer-world-oceans-day-2021/newsstory/f6d9eebc9d59a28495eac128cd6a0ff7
La mer the Soft Fluid Long Wear Foundation. Ingredients explained. (2023).
https://incidecoder.com/products/la-mer-the-soft-fluid-long-wear-foundation
Mangurali, H. (2022, February 9). NYX Professional Makeup Case Study – The
Accessible Pro Brand – 440 Industries. 440industries.com.
https://440industries.com/nyx-professional-makeup-case-study-the-accessible-probrand/
Thomas, S. (2023). Maybelline Marketing Strategy & ADS – the biggest cosmetics
brands. Avada. https://avada.io/resources/maybelline-marketing-ads.html
Purchase answer to see full
attachment
