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However, because Rimmel is positioned above the bottom of the market, it could be a trade-up brand itself during economic upswings, as consumers leave their cheap local brands for a more prestigious and internationally recognized name like Rimmel.
The means by which Rimmel cosmetics are priced is appropriate for a company with its market strategy. Rimmel needs to have a good value proposition, which implies good quality and a relatively low price. The company has a strong established name and good celebrity endorsements, so it needs to separate itself from generic cosmetics with its pricing strategy, but its total sales figures and distribution strategy demand that Rimmel avoid luxury pricing and a high degree of exclusivity. As such, the company's pricing strategy at present are appropriate.
If anything,...
The company has the reputation, the sophisticated marketing and the celebrities to justify this type of positioning, and should utilize this source of competitive advantage in order to increase earnings. The company must guard, however, against setting prices too high in all regions. In developing nations the company will need to keep prices at current levels in order to retain business, since it is often competing against popular, cheaper local brands. The current strategy, however, is congruent with market needs and the brand's positioning, so there is little cause to make any recommendation to change the strategy, even during unusual economic circumstances such as the present recession.
In general, the place of manufacture means little to the customers, except when the local producer adapts the products to suit local tastes, as has been the case with Rimmel in China. The place of manufacture is relevant to the company's workers however. Due to local regulations, the company often produces domestically. For example, Coty signed an agreement with a Chinese firm to manufacture Rimmel locally when the brand
The company is not presently seeking major expansion of distribution points, but is rather focused on organic growth within its current strong markets. However, there is little concrete information from the company with regards to the state of its expansion plans. Rimmel is based in London, and trades heavily on the image of London as a fashion center. London-based models are typically used to promote the brand (Kate Moss, for example)
Maybelline positions itself as the most innovative make up producer. The company has strengthened its position on the international market due to the sales force ensured by L'Oreal, who acquired Maybelline. Astor positions itself as a high quality make up producer. Customers The main customer segment is represented by women aged between 20 and 35 years old. These customers have a medium income and medium to high education. They have a modern
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
In my opinion, this might have been a marketing tool, both for attracting the attention of the public and for distracting it from the mistakes she has done. And people enjoyed that, since they had new subjects to comment upon, and mass-media as well, as it proved once again to be a successful means of information. Once again, Kate Moss succeeded to have a positive image in this respects too,