The Islamic Principles Of Advertising Marketing Essay

The Islamic Principles Of Advertising Marketing Essay Our research is an attempt to establish an advertisement evaluating scale based on  guidelines  provided by the shariah advisors/ Islamic Scholars. Using that scale we evaluated three sectors of Pakistan;  Telecom, Detergent  and Beverages sector. Through  this  scale we were able to conclude which particular companys/sectors advertising  activities  are  complying  or non-complying  with the shariah  guidelines to a certain extent because our variables were limited in number. We  focused our study on the three highest spending sectors on  advertisements. From Telecom sector we picked to evaluate commercials of Mobilink, Ufone and Telenor. From detergent sector we picked Ariel, Surf Excel and Brite Total. From Beverages sector we picked Cocoa Cola, Pepsi and Pakola. Five TV commercials of each company for the year 2009, 2010 2011 were selected for evaluation. Through an in depth study of various related research journals and primary data analysis that included interviews with mufti /Islamic scholars we created a relationship between the above mentioned five levels of  violations  and the elements of an  advertisement.  In order to strengthen our analysis we had our evaluating scales and its variables endorsed by an Islamic  scholar.   Our variables were evaluated based on the five levels of Not allowed/Sins in Islam; which are Haram (Being the highest level of  violation  ), Makrooh-e-Tehreemi, Makrooh-e-Tanzeehi, Dislikes, Not Recommended and Mubaah (considere as breakeven point where there is no sin and no reward).  It also showed how this area of research is relatively new and there is a lot to be explored and worked upon. Our major limitations were the time and human resource constraints The findings of our data collected indicate that Telecommunication sector is the least compliant and Detergent sector being the most complaint comparatively in their marketing activities. We noticed that the most common violation was inappropriate displaying of females in various contexts. It also showed how certain actions and behaviors were promoted that goes against our culture and religion; considering how advertisements is a part of mass communication it plays a major role in shaping a societys social ethics and values . 5. Introduction Companies advertise for three main reasons; to create awareness about their product or service, to influence or persuade consumers to buy their product or service and to provide information about their product features and usage. Every person view advertisements differently for example for some it is a way to inform consumers about inflating prices and some view it as unnecessary hard effort to sell something. Advertisements have taken many forms to communicate to their target audience. Advertising has been revolutionized from past several years specifically in 2006 when YouTube was introduced. After this social media advertising became very famous and companies started going all viral. When a company decides to advertise, a lot of factors come into question. The company policies, industry norms as well as the product features itself play an important role as to what an advertisement is going to look like. Also the current advertising practices have an influence as what kinds of concepts are being currently used by different brands across various sectors. And of course, the legal constituents have to be looked at so that none of the advertising material has any illegal content in it. For this study, we are going to analyze the current advertising content being used in Pakistan by various brands/companies and compare them with Islamic teachings and traditions and establish whether these brands/companies are following the Islamic way considering the fact the Pakistan is an Islamic republic and therefore it can have a huge influence on the consumer mindsets regarding the daily lives as well as their perception regarding the brand/company or product itself. Through this study we also aim to find out how much, if so, are the brands/companies treading over water when it comes to advertising according to Islamic teachings and principles. By selecting particular sectors, we will study which sector has the most frequent use of such practices in their advertising and marketing 5.1 Variables of the study The variables of the study include the following: Factual Information Living thing element Morals and Ethics The Product itself Advertisement of three major sector Factual information: If the claim is not valid and tested by an authority than it is considered to be fraud or malpractice in the religion of Islam. A business or advertisement is required to only make claims that are properly tested by a recognized authority and prove their claims. Also, An advertiser must not lie or cover up information from the consumer. Facts must be presented in a clear and easily understandable manner. Living Thing Element: This element is based on the three perspective of modern, liberal and conservative views of Islamic practices. However we choose to refer to the liberal view as it is neither of the two extreme opinions on the showcasing of living beings Morals and ethics: This is similar to the everyday prescribed Islamic practices as applied to the daily lives of Muslim. Same should translate onto the business dealings, trading and advertising as the basic principles or moral rights, decency, modesty and ethics remain the same. Particular guidelines are established through reference to the Holy Quran and also through the principles and teaching of Prophet Muhammad (SAW). Product itself: The product itself must be a halal product and free from haram or un-Islamic ingredients such as alcohol and swine. If a haram ingredient exist in a product it is an internal flaw of the product and this product should not be traded with the Muslim public. However, if the product is Halal and free of haram ingredients but is sold or used in a manner which is considered improper or haram in the Islamic Shariah then, an external flaw is said to exist in the product. Advertisement content: Advertisements were selected based on convenience sampling techniques. We selected sectors with the largest television advertisement spending and therefore highest frequency of advertisement aired in a given period of time. 5.2 Research methodology Only qualitative research shall take place. Preliminary research will be done by interviewing several muftis and Islamic experts in order to know the basic Islamic principle of advertising. Also Fatwas or endorsements by Islamic scholars or experts will be taken from them to strengthen the validity of our research. . Advertisements will be selected from each sectors and evaluated on the basis of a standard checklist to make comparisons. Secondary research will included the research papers and journal papers already present on the subject of Islamic advertising 5.3 Sample size sample techniques We are observing convenience based sampling. We selected the last three years i.e. 2009, 2010, 2011 from which we took the advertisement to evaluate. Also, from each sector we selected three companies with the highest advertising budgets as their advertisements appeared on air the most often. In each year we considered 5.4 Scope of study We selected all the top 3 sectors which contributed highest in the Tv advertisements on the basis of the research done by Pakistan Advertisers Society. We selected top 3 companies from each sector and evaluate their 3 years Tvc on the basis of theoretical framework. This research was done in Karachi with the available Tvc. As we were evaluating ads on the basis of Islamic principle, we need a good insight in Islamic teaching in evaluating Ads for which we interview Mr Irshad Ahmad who is Mufti and Shariah Advisor at Bank Islami. 5.5 Research objectives This purpose of this study is: To establish whether Pakistani advertisements are according to the Islamic principles of advertising. To identify the different sectors advertisements that does not follow basic Islamic rules and regulations. To determine the level of violation committed by the selected companies in the sector. To determine in which areas the most violations occur To determine the nature of the violations 5.6 Research questions What are the basic Islamic principles and parameters an advertiser is required to follow? What is the alignment with Advertisement regulation bodies/system, ethics and Islamic Advertisement? Is the advertisement content supporting or following the Islamic principles? What is the number or intensity of violation committed by the advertisement? 6. Literature review We reviewed articles, journals, books and research paper. All the research and readings were done online using various websites including Online Emeralds Journals, Queensland university of Sydney Online Library and Szabist Digital Library. We came across a definition of Islamic Marketing i.e.The process of identification and implementation of value maximization strategies for the Welfare of the stakeholders in particular and the society in general governed by the guidelines given in Quran and Sunnah (Hassnain, 2011). This helps us in giving a direction of what our research would revolve around and where and how to initiate it. It also provided a basis to carry out our research further and establish the basic parameter to base our finding on. As per research, it shows that this area of Evaluating advertising on the basis of Islamic teachings or perspective is vast. Limited studies have been carried out to satisfy the coverage of all Islamic parameter. Its one of the areas where we see growing interest of researchers, development is also taking place where Islamic standards and parameters are being set for marketers/advertisers who plan to opt for following Islamic way of marketing.   In the studies that are available its noticeably mentioned by Islamic scholars and authorities that advertising/marketing is a practice that has existed since the beginning of the religion itself provided there are fine lines based on Quran, Hadith and interpretations of scholars, with in which every allowed/halal business is allowed to market their product or service. One of the prominent and interesting findings that is relatively new in nature and which we plan to explore further as well is the new concept of two new Ps as per Islamic Marketing. They are apart from the existing 7Ps of marketing known as Promise and Patience. (Abuznaid, 2012, p.7) 6.1 Islamic Principles of Advertising According to Quran and Sunnah, consumers must ensure that all the 4ps of marketing should be according to Islamic principles also if any transaction is occurring than all the parties must benefit from it. All the advertisements should be communicated in a truthful manner rather than misleading or cheating the consumers, also all the dealings should be carried out in a justice way (Hanafy and Salam, 1988) The three key purpose or functions of the advertising is to inform the consumer about products or services and their features whether they are already existing or new products or services launched, to persuade them to purchase and then to repurchase the products, and also to remind them about the product over a period of time (Kotler and Armstrong, 2004). This will lead them to a healthy competition and customers will benefit from huge varieties of products and services (Anwar and Saeed, 1996). Nevertheless Islamic advertising variables are applied to the communication style such as, honesty of communication which includes factual information and truthful representation of facts and figures, acknowledging and appreciating that all human being are different and embracing the diversity of the human race, justice, equality and fairness, the respect and position of women, the parts women play in life, patterns of consumption behavior, ethical values and modesty, and the environment and its wellbeing (Rice and Al-Mossawi 2002) People are trying to identify Islamic ways of consumption and marketing. Muslim consumers are growing due to their purchasing power and this increase in purchasing power is due to development of the middle class and economic systems where people can afford to buy branded products and are particularly brand conscious (Nasr, 2009). Also, Muslim entrepreneurs are also increasing in Muslim societies and they are eagerly following Islamic principles of marketing (Adas, 2006;Osella and Osella, 2009). People viewed Muslims as poor and that they dont have any knowledge about branded products because they were considered as uneducated and militants. ( Said, 1978) The market was on a halt until and unless Muslim consumers were discovered, Islam has become more visible now in many societies and several studies appeared on Islamic movements (Esposito, 1998; Wiktorowicz, 2004; Bayat, 2005).Religious teachings greatly affect the choice of consumers in an Islamic market, any marketing campaign which is haram or not according to Islamic principles will face major problem in an Islamic market (Alserhan, (2010) Showing unnecessary spending on useless things in advertisements is against Islamic teachings. Nevertheless showing price discounts are not forbidden. (Abdullah, 2008). Quran states, Those who, when they spend, are not extravagant and not niggardly, but hold a just (balance) between those (extremes) (Al-Furqan-25:67). 6.2 Islamic Perspectives on Advertising Scholars say that advertising itself is not haram as it just incorporates a medium of giving a message to the general public, they state that preaching can also be considered as a form of advertising but they say that just like preaching, certain ethics should be followed while advertising ones products or services (Nooh, 2009). The main conflicts which arise between ethics and advertising are the exploitation of women and promoting unwanted use of products. Moreover, Current advertising practices are said to contain various social and ethical problems that reflect little knowledge and awareness of the advertiser on how to effectively market to their Muslim target audience in a manner that increases their acceptability. Contemporary advertisements appear to be more focused on materialism. These advertisements promote consumerism rather than adequately informing the user about the functional uses of their product and purposely hide the flaws of the product while exaggerating the benefits. (Bari Zamin, 2011) The core problem apparently lies with two things; issues regarding advertisement that include women exploitation and subliminal perception, Secondly deceptive form of advertising, that is legally staying with the boundaries but ethically not, by taking undue advantage of limitations a person has while viewing different form of advertisement (not able to read between the lines, the special terms and conditions that are hardly visible etc. Advertising also includes the element of informing consumers about products and services according to basic Islam teachings. They represent the basic Islamic teachings of respecting elder people and creating a positive bond rather than showing provocative images, haram products or free mixing of girls and boys which is completely prohibited in Islam. 6.3 Islamic Moral Standards Six ethical principles of Islamic values truthfulness and honesty and being straight forward with all information and dealings. Faith or trustworthiness on the brand developed through Islamic practices; Sincerity and clarity in presentation of facts and conduct. Brotherhood as it is the primary focus of Islamic society and great emphasis is laid on Islamic brethren and brotherhood, innovations and developments in science and technology and the roles it plays, and justice and equality as it is considered a primary basis for all functions in islam. These were ethical principles identified (Hanafy and Salam, 1988)Prophet Mohammad (pbuh) said: I have been sent only for the purpose of perfecting good morals. When questioned Which Muslim has the perfect faith? The Prophet (pbuh) replied: He who has the best moral character(Alghazzali, 1983). Emergence of new muslimenrepreneurs is leading to an ethical way of conducting businesses and marketing (Demir et al., 2004; Adas, 2006;OsellaandOsella, 2009). Applying Islamic principles into marketing gives an ethical dimension to margeting campaings as compared to conventional marketing which has an unethical record. Using immoral means in advertising can cause serious downfalls in the structure of a society causing it to deteriorate. Deceptive advertising being one of them is a major cause but sometimes it can be a case of mistaken identity. Sometimes, misinterpretation on the end of the consumer watching the ad can be considered can ill-information in the ad; however it can still cause a negative impact for brands in the minds of consumer resulting in a decline for the brand. In the case of advertising of fast food products, the author argues that the brands are to be equally blamed as much as the advertisers because their marketing strategy itself is based on creating an unwanted need amongst consumers, especially children (Nooh, 2012). Violence is also a major flaw in advertising which can have major effects on young ad viewers like children as it can encourage them to obtain aggressive habits which leads to unhealthy behavior (Nooh, 2012). Subliminal marketing cannot be termed as a practice of unethical advertising. It is merely a practice used by brands to create brand awareness amongst consumers using hidden messages. These ad themselves are not producing any unethical values or behaviors (Nooh, 2012). Sexual appeal used in ads causes young adults to take up celebrities as idols and start mirroring their lives in their own. They follow their fashion trends, lifestyles and make themselves just like the celebrities. Sexual appeal also causes consumers to carry an offensive mindset about a particular brand. Only people who are strong brand loyalists only successfully reject the offensive mindset and focus on the concept of the ad (El Hattab, 2008). Emotional appeal can lead to an increase in unwanted desires and can cause consumers to purchase product which they dont need at all and even cause them harm in the future. This can be particularly seen by the increased consumption of fast food by adolescents and young adults (El Hattab, 2008). The female contingent of the consumers still have a higher tendency to become more offended by unwanted content in advertisements than their male counterparts (El Hattab, 2008). Companies invest heavily in manufacturing certain products; they use celebrities and other famous personalities to feature in their ads. This is not only using emotional appeal in advertisements but this can also be considered as a form of deceptive advertising because the claims sometimes are baseless. This is considered to be completely unethical in Islam (Abbas Bari, 2011). The practice of showing mal dressed women in ads in on an increasing trend in the country but it can vary with the level of tolerance being present in the society. It varies from one country to another depending upon the state of the society in the country. Fairness in an ad is off utmost importance as well as according to Islamic teachings; consumers have every right to be completely informed about all aspects regarding any service or product (Abbas Bari, 2011). Similarly, overstating any products attributes or making claims which are not supported by any kind of proof or research have also been deemed to lie in the same category as deception. Advertisements today are openly spreading values and behaviors which are not acceptable in Islam and even though considering the economic system of the country which promotes a capitalistic nature in the conduct of ones business, it is imperative that all businesses keep in mind the features of the society they are functioning in and similarly the government should also play a key role in determining the right form of advertising starting from the grass root level which is basic education (Abbas Bari, 2011). 6.4 Islamic Ethics In Islam, ethics is more than just what is defined as right and wrong by the society. In Islam, as the ethics are mainly guided by the teachings of The Quran and Sunnah, ethics covers aspects of all physical, emotional and spiritual factors. Evaluating the advertisements can divide the effects into economic, political, cultural and moral effects the advertisements have had on the society (Nooh, 2009). Even though ethics is an integral part of all business aspects and not just advertising, Islam puts a moral barrier on the conduct of ones business related activities which helps a business man earn a rightful living through his transactions. It is unfair for any business to sell its products by false claims and deliberately hiding complete information about the concerned product or service (Akhter et al., 2011). As noted in the Quranic verse ,Standout firmly for justice, as witnesses to Allah, even though it be against yourself, or your parents, or your kin, be he rich or poorà ¢Ã¢â€š ¬Ã‚ ¦. (Quran, 4:135). Moreover, the holy prophet(SAW) said The sign of a hypocrite are three 1. Whenever he speaks he tells a lie. 2. Whenever he promises, He always breaks it. 3. If you trust him, he proves to be dishonest (Al-Bukhari, 1.32) and also: Prophet Muhammad (PBUM) forbade the sale of fruits till they are almost ripe. Anas was asked what is meant by are almost ripe He replied, Till they become red Allahs Messenger (PBUM) further said, If Allah spoiled the fruits, what right one would have to take the money of ones brother.(Al-Bukhari, 3.403) From this it can be determined the strict importance the religion of Islam places honesty and truthfulness. Therefore misleading claims and false promises are forbidden and should not be practiced. Advertising controversial products such as contraceptives and alcohol can lead to an offensive mindset in the eyes of the consumers. And not just Islamic consumers but those of every religion present in the world. Similarly, the controversial products identified are: addictive products such as tobacco or alcohol, indecent hygiene or personal products. Undergarments and private products, funeral services or memorial services, games of chance, weaponry and arms, medicines drugs and other pharmaceutical products, societies or parties with political affiliations, religious and ethnical groups, sexually transmittable diseases and viruses and weight reduction plan for overweight people (Edrogan. Et al, 2005) The greatest challenge over here is for marketers to come up with strategies to curb this offensive nature of such advertisements (Akhter et al., 2011). All brands, international and local, should come up with advertisement concepts which would suits the tastes of the majority Islamic public. This would not only create a better brand image in the eyes of the consumers for the brand itself but also help in increasing their sales across the board (Akhter et al., 2011). 6.5 Women in Advertisements It is stated in the Quran, Let there arise of you a group of people inviting to all that is good (Islam)enjoining Al-Maruf and forbidding Al-Munkar and it is they who are successful [. . .] (A ˆ  l-Imran 3:104). This shows that all those advertisements are allowed in Islam that shows women in a decent manner with proper clothing and playing positive role both in the society and family. (Rice and Al-Mossawi, 2002). Islamic Tradition emphasizes that women should be modestly dressed and covers themselves according to the principles and guidelines established. It then follows that women if portrayed in advertisement should be dressed according to the Islamic principles. They are required to follow the hijab dress code which entails the covering of the entire body except the hands and face. (HanzaeeChitsaz, 2011) As mentioned in the Quran: O prophet, tell your wives, your daughters and the believing women to draw their veils close to them, so it is likelier they will be known, and not hurt. Allah is the forgiver, the most merciful.( Quran 33:59) à ¢Ã¢â€š ¬Ã‚ ¦Do not display your finery as pagan women used to do in the olden days of ignoranceà ¢Ã¢â€š ¬Ã‚ ¦ (Quran 33:33) And à ¢Ã¢â€š ¬Ã‚ ¦Do not reveal their adornment except that which is outward (face and hands); and let them draw their veils over their neckà ¢Ã¢â€š ¬Ã‚ ¦ (Quran 24:33). Islam has protected women and according to Islamic code of dressing women should cover themselves completely including their whole bodies, only their hands are permitted to be visible. Qurans says: And tell the believing women to lower their gaze (from looking at forbidden things), and protect their private parts (from illegal sexual acts, etc.) and not to show off their adornment except only that which is apparent (like palms of hands or one eye or both eyes for necessity to see the way, or outer dress like veil, gloves, head-cover, apron, etc.), and to draw their veils all over Juyubihinna (i.e. their bodies, faces, necks and bosoms, etc.) and not to reveal their adornment except to their husbands, their fathers, their husbands fathers, their sons, their husbands sons, their brothers or their brothers sons, or their sisters sons, or their (Muslim) women (i.e. their sisters in Islà ¢m), or the (female) slaves whom their right hands possess, or old male servants who lack vigor, or small children who have no sense of the shame of sex. And let them not stamp their feet so as to reveal what they hide of their adornment. And all of you beg Allah to forgive you all, O believers, th at you may be successful. [surah al-Noor 24:31] And Quran also mentions in another place: And as for women past child-bearing who do not expect wed-lock, it is no sin on them if they discard their (outer) clothing in such a way as not to show their adornment. But to refrain (i.e. not to discard their outer clothing) is better for them. And Allah is All-Hearer, All-Knower. [al-Noor 24:60] O Prophet! Tell your wives and your daughters and the women of the believers to draw their cloaks (veils) all over their bodies (i.e. screen themselves completely except the eyes or one eye to see the way). That will be better, that they should be known (as free respectable women) so as not to be annoyed. And Allah is Ever Oft ¬Forgiving, Most Merciful. [Quran 33:59] In Islam a women must not wear thin clothes through which her whole body is visible. Also the clothes must not be skin tight. Western clothes are not allowed as they resemble mans clothing which is forbidden. Along with this the design of the clothes must not attract any man. Islam is very strict in women dressing so that no man is attracted towards women in to a lustful way because Islam protects women from wrong deeds. Ads featuring women should not have any semblance of overt sensuality or sexual connotations as this demeans the woman. Women are not objects and must not be portrayed as such and treated with respect and equality even if the sole objective is to promote and boost sales through their beauty (Anwar, 2011). This goes with all the teachings in Islam that women are to be treated with respect and not exploited in anyway. Women have been given a very high status in Islam and therefore exploiting women sexually or by any other mean in advertising should be considered not only as unethical but also haram as it is portraying a sin. Not only in Islamic societies, in other modern societies as well the exploitation of women is being considered as an unethical act and is being discouraged in all corners of the world 6.6 Islamic Products: Offensive product Vs. Offensive execution American advertisements show those things which are against other religions like Islam. Like the alcohol and drugs activities shows as it is a problem for society however it is less affecting other culture due to its limited scope. (Al-Jenaibi 2008)Drugs and alcohols are the problems and the only way to get rid of these problems is to show it on media and addressing this problem to society. (Al-Jenaibi, 2008) If they will know the problem then they can avoid it. Advertisements on these different problems are important for building on strong values to protect the society. (Al-Jenaibi, 2008) A customer should feel an ethical manner in a banks advertisements in all form of the business (Chachi et al., 2008). The bank should reach a level of ethicality where a customer would form trust, loyalty and satisfaction with the bank all at the same time.Similarly,the product should be perfected at the same time as the advertisement is. If the product has any flaws it will be very difficult for the bank to attract customers no matter how ethical they were being when it came to advertising. In the case of a bank, the company itself might not be at fault but its front end employees who are in direct interaction with the customers might sometimes overstate the value of a particular product to a customer and gain extra profits for sole purpose of their own personal benefit. . In the case of a service, as it can only be experienced the customer will only judge a particular service on the advertisements portrayed by the bank so therefore it is of utmost importance the bank practices complete ethical practices when advertising their products whether in an above the line tool or a below the line tool. In the below the line, the customers expectations are all but the product which the front end employee sells them (Chachi et al., 2008) For instance the basic differen between an Islamic financing tool and product that is financially equal is the interest charged on the financial instruments. The basic idea behing this thinking is that it is unfair to charge an interest or earn a revenue on a product because of its status as being lent to another person as the money that is borrowed should be returned equally as it is in part. Therefore value of the lended or borrowed money should not increase or decrease by Islamic guidelines (Ashraf, 2007). Through this we can deduce that any product which contains ingredients which would be considered as Haraam. According to the teachings of islam as stated in Quran and also observed in sunnah of the prophet it would be considered as an Illegal product. Substances like alcohol and swine have been strictly prohibited as various points in the Quran so we can deduce that any products made from these substances would automatically be considered as haram without any area of considerati on. However, any product that comprises of all legal materials in its making but a brand/ company promotes an unethical use for it through advertisements and marketing may be considered as an un-Islamic product or haram product through the rule of external flaw. Other variables that effect advertising include privacy, inaccurate information religious and social norms. Role of ethics in performance, behavior, decision, attitude, communication and choices are very important. (Sanayei et. al, 2012).Sanayeiet. al (2012) said previously ethics was considered as important but today marketers have violated the main foundation of ethics. All factors are important but according to result most important is privacy, then religious and social norms and thirdly the correct and accurate information. (Sanayei et. al, 2012) Al-Makaty et.al (1996) is based on perception of 2 television advertisements in Saudi Arabia. There is no single Islamic approach to advertising. Contradictory approach firstly

French Macaron Recipe Research Essay

Preheat the oven to 150 degrees C Place egg whites and cater sugar in a bowl and mix with electric mixer for 8-10 minutes (yes really), add gel food colouring and continue to mix for a further 30seconds. The mixture should look stiff and dry. Sift the almond meal and icing sugar and salt twice, discarding any almond lumps that are too big to pass through the seive. Fold into the egg white mixture. It should take roughly 50 folds until the mixture is smooth and a very viscous liquid, not runny. Over-mix and your macarons will be flat and have no foot, under mix and they will not be smooth on top – see the video for examples (troubleshooting is at the end of video). Pipe onto trays lined with baking paper, rap trays on the bench firmly (this prevents cracking) and then bake in the oven for 20 minutes. Check if one comes off the tray cleanly, if not bake for longer – if they are looking done on top move to the bottom shelf of the oven for the remaining time to help bake the base.

Marketing Plan: Maybelline’s New Perfume

Marketing Plan: Maybelline’s new perfume The University of Sheffield Marketing Management (MTG 2410) Blagoy Savov (BS11124) 21 August 2012 Abstract L'Oreal’s Maybelline, a global, mass market cosmetic manufacturer, has decided to develop and market a new fragrance for women. This report includes research, analysis and evaluation of the market environment for female fragrances. Furthermore, it outlines a marketing strategy for the new product which describes the marketing mix to be used by Maybelline in order to sell its new product addition to the target market.Introduction The fragrance market is a very competitive one with large companies having a global presence and well established images and brands. This market is also very profitable and ever growing with signs of great potential. Maybelline is one of L'Oreal’s brands and is well known worldwide for its value based cosmetics products.Now Maybelline is entering the fragrance market with a new female perfume and this report describes how it will take on this challenge. The first part of the report introduces L'Oreal, which is Maybelline’s mother company, its vision and company profile including its financial success. Maybelline falls under L'Oreal’s Consumer Products Division, which offers mass-market products. The report continues by presenting an environmental analysis of the market as well as a competitive analysis. There are three main players in the industry, which represent 24. 5% of the global market in the face of Coty Inc. Maybelline’s mother company L'Oreal, and Procter & Gamble. The first part of the report concludes with a SWOT analysis of the Maybelline, which indicates that the strengths and opportunities outweigh the weaknesses and threats. Based on the market analysis, the second part of the report proposes a target market for the new female fragrance product and a specific marketing mix in order to successfully reach its customers. The company L'Ore al L’Oreal is one of the largest cosmetics companies in the world, producing and marketing a range of make-up, perfume, hair and skin care products in over 130 countries.The company is headquartered in Clichy, France and employs about 68,900 people worldwide in a total of 41 factories. With 613 registered patents in 2011 the company earned 20. 3 billion EURO of sales in that year and currently has a brand portfolio of 27 international brands (L'Oreal 2011). For more than a 100 years L'Oreal has devoted its efforts in the business of beauty. Its mission is to enable all individuals to express their personalities, gain self-confidence and open up to others by offering the best cosmetics innovation in terms of quality, efficacy and safety.The company pushes the boundaries of innovation by heavily investing in research in order to explore new territories and invent new products (L'Oreal 2012). Wrapping up another year of financial growth, in 2011 Company Responsibility (2005 â₠¬â€œ 2011) – Reduced greenhouse gas emissions by 29. 8% – Reduced waste generated by 24. 2% – Reduced water consumption by 22. 6% – 95. 7% of waste is reused, recycled or used for energy production – Reduced total energy consumption by 6. % for 2010/2011 Company Profile – A century of expertise in cosmetics – â‚ ¬20,3 billion sales in 2011 – 27 global brands – 130 countries – 68 900 employees – 613 patents filed in 2011. L'Oreal grew faster than the worldwide cosmetics market and confirmed its position as the world leader in beauty. The company also heavily invests in being socially, ethically and environmentally responsible to ensure a sustainable growth in the long-term. Compared to 2005 the organization significantly reduced its gas emissions, generated waste and water consumption and invested in research in order to foster sustainable innovation.Maybelline As described in the journal by Aaker and Joa chimsthaler (2000) brand architecture is a structure that organizes the company’s brand portfolio and specifies the brand roles and the relationship between them. Coherent brand architecture provides tools to: ? ? ? permit brands to stretch across products and markets, resolve conflicting brand strategy needs, preserve brand-building resources by leveraging existing brand equity, protect brands from being diluted by over-stretching, and signal a new and different offeringAs outlined in the journal by Harish (2008), L'Oreal’s brand architecture is organized around 27 international brands, which are clustered in separate business divisions, each of which focuses on a specific target market. As illustrated in Table 1, L'Oreal’s business is structured under three divisions (Consumer Products Division, Luxury Products Division and Professional Products Division), one department (Active Cosmetics Department) and an ethical cosmetics brand (The Body Shop). L'Oreal†™s brand architecture, showing brands, positioning and sales channels. Consumer Products Luxury Products Profess.Products Active Cosmetics The Body ShopMajor international umbrella brands: L'Oreal Paris Garnier Maybeline New York SoftSheen Carson Le Club des Createurs de Beute (LCCB) Lancome Biotherm Helena Rubinstein Kiehl’s Shu Uemure Perfumes: Giorgio Armani Ralph Lauren Cacharel Victor and Rolf Diesel Positioning: Quality products at affordable prices for the masses Up-market luxury products for discerning consumers Specialist products for use by professional hair stylists and salon professionals Sales Channels: Mass market retail outlets in the case of L'Oreal Paris, Garnier, Maybelline and SoftSheen CarsonDirect marketing for LCCB High-end international department stores, travel retail outlets, brands’ own boutiques and perfumeries Hair stylists and salon professionals Pharmacies and specialist retailers Predominantly through body Shop’s exclusive retail chain Cosmeceuticals with proven safety and effectiveness; backed by pharmacists and dermatologists Ethical cosmetics for socially and environmentally conscious consumers L'Oreal Professionnel Kerastase RedKen 5th Avenue NYC Matrix Mizani Vichy La Roche – Possay Inneov SkinCeuticals Sanoflore The Body Shop Table 1 Within the Consumer Products Division, L'Oreal Paris is the premium brand while Garnier and Maybelline New York are the neighbouring aspirational brands. The company offers these distinct brands in order to satisfy different target groups and avoid losing customers to a competitor (Harish, 2008). L'Oreal’s goal is to make Maybelline a leading global mass-market brand. This brand is sold in about 127 countries and makes up over 45% of the total revenues.Maybelline is positioned to be the leader of massmarket cosmetics targeted at women between the age of 15 and 49 at a reasonable price and it successfully promotes the â€Å"urban American chic† image a cross the globe. Maybelline includes five ranges of products – face, eyes, lips, nails and tools. Each range includes several lines and there are individual products with unique brands under each line. As per Harish (2008) the products of the Maybelline group are mainly promoted through TV advertising and brand ambassadors like the supermodels Christy Turlington and Adriana Lima. Since 1915, the brand has been empowering women everywhere with the impactful slogan â€Å"Maybe she is born with it. Maybe it’s Maybelline. Today Maybelline New York is the leading makeup brand worldwide, which combines technologically advanced cosmetics with trendy expertise to create accessible products with a spirited style that empower women to make a statement by exploring new tools, experimenting without risk, and flaunting their own artistry (L'Oreal, 2012). L'Oreal has a licensing agreement with five different fragrance brands, which complement the firm’s wide spectrum of prod uct offerings. As described in Table 1 these brands fall under the Luxury Products Division, target discerning consumers and are sold in high-end department stores, travel outlets and boutiques. L'Oreal is now developing a completely new perfume under its own Maybelline product line. Environmental Analysis Market AnalysisThe fragrance market experienced a steady growth in sales in the period between 2006 and 2011. Furthermore the overall market growth is expected to accelerate in the next five year period. In 2010 the global fragrance market generated total revenues of $36. 3 billion resulting in a compound annual growth rate of 4. 2% for the period spanning 2006 – 2010 shown in Figure 1 (Datamonitor Global, 2011). Global fragrances market volume: million units 40000 35000 30000 25000 20000 4. 2 3. 1 5. 6 7 6 5 3. 9 4 3 2 $ million % growth 15000 10000 5000 0 2006 2007 2008 Figure 1 1 0 2009 2010 Consumption volume in the fragrance market increased with a compound annual grow th of 4. % between 2006 and 2010 resulting in 1. 3 billion units in 2010. By the end of 2015 the consumption volume is expected to rise to 1. 6 billion units. As shown in Figure 2 female fragrances showed the highest sales numbers generating $23. 1 billion of revenues in 2010, equivalent to 63. 8% of the market’s overall value (Datamonitor Global, 2011). Global fragrances market segmentation by type: % share 5% 64% Female fragrance Male fragrance Unisex fragrance 31% Figure 2 The fragrance market segmentation is distributed between the three major continents.As shown in Figure 3 Europe leads the consumption of fragrances by 45. 1% followed by the Americas with 38. %, Asia-Pacific by 10. 5% and Africa and the Middle East by 6. 4% (Datamonitor Global, 2011). Global fragrance market segmentation by region: % share 6% 11% Europe Americas Asia-Pacific Affrica and Middle East 45% 38% Figure 3 Overall the current fragrance market condition and especially the sub-category of female f ragrances shows to be positive and creates opportunity for new product additions, which is an advantage for Maybelline’s idea to introduce a new perfume (Datamonitor Global, 2011). Market Environment In the book by Perreault et al (2011) it is described that when creating a new product the required marketing strategy planning process includes electing the best opportunities and developing a strategy that will provide superior value to the potential consumer and a competitive advantage to the company itself. In order to find the best opportunity and create a marketing strategy, the company has to analyze and evaluate the important elements of the marketing environment and the occurring trends. Perreault et al (2011) continues by stating that there are different forces that create the market environment. These forces include the direct marketing environment comprised of the customer, the company, and the competitors and the external market environment comprised of the economic, technological, political, legal, cultural and social aspects.In order to create the best marketing mix (product, place, promotion, price and personalization) for the new female fragrance of Maybelline, the marketing environment has to be analyzed. Economic Environment As per Perreault et al (2011) the economic environment refers to macro-economic factors, including economic growth, national income and inflation which affect the way consumers (individual customers? ) and businesses consume. Changes in the economy in general in certain industries or parts of the world could have an impact on the consumption. Technological Environment Technology uses the application of science to convert resources into output.In particular it affects marketing by creating opportunities for new products and new processes. Technological advances allow for better communication and promotion opportunities and it furthers globalization. It also provides for more effective and efficient ways of producing an d delivering products and services (Perreault et al, 2011). Political Environment The political environment of a country is affected by the attitudes and reactions of people, social critics, and the government. The political environment can affect selling opportunities at both local and international levels. In some markets nationalistic feelings can reduce or block marketing activities, which creates a challenge for companies (Perreault et al, 2011).Cultural and Social Environment These two factors have a significant impact on the marketing environment. The cultural and social environment affects the way people live and behave, which in turn affects their consumption behaviour as well as the economic, political, and legal environments. These factors consist of different variables including: language education religion style housing view on work, marriage and family The growth of the fragrance market is different across the various geographic zones depending on the economic conditio ns in that area. The consumption of perfume is largely dependent on demographics and lifestyle trends, in particular the importance of luxury and status.If a particular country is experiencing difficult economic conditions, usually the luxury products suffer the most, as they are not a needed product but rather a nice to have (ReportLinker, 2012). In contrast mass-market, value products are not as impacted by the economy. The US, with the highest market share of 33%,shows steady growth partly due to the fact that the country is coming out of the recession and into better economic conditions. The consumption of perfumes in Asia is relatively low, aside from Hong Kong and Singapore, due to the economic conditions and the perception of perfumes and heavy scents being used as a way to mask body odour.However, the growth potential in these demographics is immense, especially as Asian women are adhering to the Western trends in fashion and personal care, and are receptive to using well-kn own brands for building their self-image (ReportLinker, 2012). The penetration of private fragrance labels in China stands at the low 5%. Brand loyalty and higher levels of disposable income provide popularity for the European fragrance products. Suppliers are targeting the younger population in order to attract new customers, due to the changing age structures in the country. To this day, Chinese consumers favor specialty stores when shopping for fragrances, which is an important consideration for companies wanting to be successful in this market (ReportLinker, 2012). Competitive AnalysisPerreault et al (2011) defines the competitive environment as the number and types of competitors the company is facing and the way these competitors behave in the particular industry. There are four basic kinds of competitive market situations: Pure competition A market state where buyers and sellers trade a uniform commodity such as wheat, copper or financial securities and no single buyer or sel ler has much effect on the market price. In its pure form this market state eliminates the purpose of marketing research, product development, pricing, advertising and promotion. Oligopoly A market state with a few sellers who are highly sensitive and alert to each other’s marketing strategies and pricing.In this market it is difficult for new sellers to enter. Monopolistic competition A market state where many buyers and sellers trade over a range of prices, rather than a single market price. The range of prices occurs due to the fact that the sellers offer a differentiating factor of their product to the buyers. The differentiating factor can be achieved through segmenting, price fluctuations, branding, advertising, personal selling and other marketing tools. Pure Monopoly A market state where a single firm produces a product, for which there are no close substitutes and in which significant barriers to entry prevent other firms from entering the market to compete.The fragr ance market is definitely a monopolistic competition in which many vendors sell to many buyers and there is a range of prices based on differentiating factors created through segmenting, branding, advertising and other marketing tools. The global fragrance market is greatly fragmented with the top three selling companies accounting for 24. 5% of the market value. Most of the leading companies are either large manufacturers of personal care products or large fashion houses and are geographically diversified. As most companies operate large production facilities, fixed costs are high in this market the vast business diversification eases the competitive pressure.In conclusion the rivalry in the fragrance market is moderate. Shown in are the top three leading players in the fragrance market, which are Coty Inc. with 10. 2% share, L'Oreal S. A. with 7. 7% share and Procter & Gamble Company with 6. 6% share. The rest of the market is divided between much smaller fragrance vendors and acc ount for 75. 5% of the market (Datamonitor, 2011). Global Fragrance Market Share: % share, 2010 10% 8% 7% Coty Inc. L'Oreal S. A. Procter & Gamble Company Others 75% Figure 4 Coty Inc. Coty Inc. is a privately held company that manufactures and markets fragrances, color cosmetics, toiletries, skincare, sun care and personal care products.It is headquartered in New York City, employs more than 8,500 people and distributes its products to around 90 countries. The company distributes its products utilizing different channels including department stores, specialty retailers, upscale perfumeries, pharmacies, mass market retailers and duty free shops. The company recorded total revenues of $25. 8 billion in FY2010, an increase of 11. 6% over the previous year. Revenues from the fragrance product category for the company reached $2. 2 billion in FY2009. North America accounted for 32% of total revenues, whereas Europe as its largest ? geographical market accounts for 57% of the total reven ues in FY2010, Asia with 7% in FY2010 and the rest of the world with 4% in FY2010.L'Oreal Even though L'Oreal is the mother company of Maybelline it still needs to be considered as a competitor in a way since it does have five fragrance brands under its umbrella. These brands are placed under the Luxury Product Division and include Giorgio Armani, Ralph Lauren, Cacharel, Victor and Rolf, and Diesel. Procter & Gamble Company (P) P manufactures and markets consumer products with over 300 brands in over 180 countries. The company is headquartered in Cincinnati, Ohio and employs about 129,000 people. The company offers its prestige fragrance products under its beauty division which recorded revenues of $20. 2 billion in FY2011, an increase of 3. 4% over the previous year. P earned 36. 9% of its revenues in the United States and 63. 1% internationally. SWOT Analysis of MaybellinePerrault et al (2011) describes SWOT analysis as a marketing tool used to create a marketing strategy which id entifies screening criteria (and identifies) and outlines the company’s strengths and weaknesses, and its opportunities and threats. The analysis has two categories: internal factors such as strengths and weaknesses, which analyze the company’s resources and abilities; external factors such as opportunities and threats, which are observed by analyzing the external market environment, customers, and competitors. This marketing tool helps the marketing department create a marketing strategy that takes advantage of the company’s strengths and opportunities while avoiding its weaknesses and threats.SWOT analysis is usually illustrated with a diagram consisting of four squares and each one of them summarizes the company’s strengths, weaknesses, opportunities and threats. Maybelline’s SWOT analysis is illustrated in Figure 5. Helpful Harmful Strengths ? Owned by the biggest cosmetics company in the world Solid financial backing Distributed in 127 countri es Leader in mass-market beauty products ? ? Established image Established production and distribution infrastructureWeaknesses Lack of expertise in manufacturing fragrances Product division completely focused on females Lack of expertise in producing natural and organic products Internal Opportunities Growing presence in emerging markets (Asia, South America) Natural and organic fragrances Men’s fragrances   Threats Counterfeit of fragrances Established strong competition Weak economic conditions worldwide External ? ? Figure 5 Strengths Maybelline enjoys a few significant strengths when it comes to its entry into the female fragrance market. One of them is the fact that Maybelline is owned by the biggest cosmetics company in the world in the name of L'Oreal, which has a solid financial foundation, an established image and existing production facilities and distribution channels. Maybelline itself has strengths in terms of its already established image and worldwide presen ce in the mass-market of beauty products. WeaknessesThe most significant weakness of Maybelline is the fact that it has no realistic expertise in developing and manufacturing fragrances and specifically female perfumes. The brand is well known for making and selling makeup, but the fragrance industry poses its own unique challenges. Maybelline’s complete product set is targeted only towards female’s including their research and marketing departments. This is considered a weakness since the men’s fragrance segment of the market is (still) emerging, which is outlined in the opportunities section of this paper. Another opportunity, which Maybelline is not ready for is the emerging segment of natural and organic products, which makes it a weakness for the company.The production of natural fragrances requires investment in research and development and different know-how and expertise, which Maybelline has not fully developed. Opportunities By the year 2020 countries in Asia and South America (emerging market) may represent more than 50% of the total cosmetics market, which directly affects the fragrance portion of the market. Currently, people living in emerging countries consume fewer cosmetics products than the rest of the world (Western Europe, North America, Japan, etc. ), but as their GDP is increasing, the consumption level should increase accordingly creating a great potential for penetration (Marketline, 2012). This presents a serious opportunity for Maybelline to offer its new fragrance in these demographics. Threats According to Global Insight Inc. 2007) and research performed by the Global AntiCounterfeiting Group, counterfeit perfumes and cosmetics cost the industry 3. 0 billion EURO annually in lost revenue and 555 million EURO in lost profit. The effects of counterfeiting include loss of profit, reduced investment and innovation, and an overall slowing down of the economy as a result of lost jobs and reduced tax revenues. Counterf eiting poses one of the biggest threats to Maybelline and its plans to introduce a new female fragrance on the market. Another threat is the long-time established competition in the female fragrance market including stable companies with an established image. This makes it difficult for Maybelline to penetrate the market with yet another new product.Currently, the global economy in general is struggling and especially in some European countries and the United States. As fragrances and cosmetics in general are not a ‘need’ but rather a ‘want’ product, the effects of lower income and higher unemployment rates are posing a threat to this industry and Maybelline itself. SWOT Conclusion By performing a SWOT analysis for the opportunity for Maybelline to introduce a new female fragrance into the market, it becomes apparent that the strengths and opportunities outweigh the weaknesses and threats. An already established company such as Maybelline is more than halfw ay of creating and marketing a new fragrance regardless of its inexperience with this specific product type.The struggling global economy and counterfeit products are challenges that every fragrance company faces, still this industry is strong and has the potential for growth. Market Strategy Perrault et al (2011) describes that to plan a marketing strategy is to find attractive opportunities and develop a profitable marketing strategyThere are two interrelated parts to a marketing strategy and they are the target market and the marketing mix. As defined in this book, a target market is a fairly similar group of potential customers to whom the company wishes to appeal. A marketing mix is the controllable variables the company puts together to satisfy this target group.These variables include the characteristics of the product, the place where the product will be sold, the price the Figure 6 product will be offered at and the promotion that would be used to market it. As illustrated in Figure 6 at the centre of the marketing mix is of course the target customer. Perrault et al (2011) states that the customer is placed in the center of the diagram to show that the customer is the target of all the marketing efforts. Target Market Currently, Maybelline targets women between the ages of 15 and 49 in more than 127 countries worldwide. Based on this wide market the new fragrance being introduced will be targeted to a narrower target, which is women between the ages of 18 and 34 living in Europe.Although as outlined earlier in this report, the men’s fragrance market is rapidly growing and has great potential, Maybelline offers products only to the female part of the population and has an already Figure 7 established image as such a brand. The new perfume brand will follow that image and target females only. The decision to initially introduce the product in Europe only is based on the fact that this is the strongest market for fragrances. If the product succee ds in this market its reach can be expanded to North America and even Asia. Furthering the definition of the target market, Maybelline will focus its marketing efforts on women between ages of 18 and 34 that are either single or freshly married with little or no children, have an active lifestyle and are young professionals. The target market is summarized in Figure 7. Marketing MixAs described in the book by Perrault et al (2011) the marketing mix specifies the details of the new product being developed and includes four P’s (product, place, price and promotion).1. The first P for Product may involve a physical good (a perfume in our case), a service, or a blend of both as well as its branding, packaging, and warranties. The basic idea is that the product has to satisfy a specific customer need.2. The second P is for Place, which defines how the product will reach its customer when and where it is needed. This includes the distribution channels used for getting the product s old.3. The third P is for Promotion and it describes the way the product will be marketed or sold to the customer, which includes advertising and public relations.4. The fourth P is for Price and specifies the amount of money a customer has to pay to acquire the product. When setting the price, the producer must account for the competition in the target market and the cost of producing and marketing the product. Based on the marketing principles and the research described above in this document a marketing mix for Maybelline’s new female fragrance follows. Product Name Maybelline’s new perfume will be called DENI which is an abbreviation for Desire, Exquisite, Natural and Intimate. The name describes what the perfume stands for. When a woman wears the DENI fragrance, she is desired, the scent is exquisite, the product is natural and the connection with it is intimate.Scent The scent of the perfume will be light and fresh, to be worn by females with an active lifestyle when going to work or being active. It is meant for everyday use and does not intrude, since the individual wearing it will be around people interacting. The perfume will only be available in Eau de Parfum spray since it is the lighter and more affordable version of the original scent. Ingredients An increasing trend in the market is the demand for natural products; therefore the DENI perfume will be made out of natural ingredients. This will possibly raise the production cost but compensate with a differentiating factor and the increasing demand for such products. Packaging DENI will be offered only in a 50ml glass bottle, which is compact and utilizing a screw on cap.The bottle design is meant for being carried in a small purse or a bag without the possibility of the cap coming off and being sprayed inside. To keep with the company’s green ideology, the bottle utilizes an aluminum removable pump, which can be separated from the glass bottle before disposal, so the glass bot tle can be easily recycled. The bottles are packaged in a cardboard box made completely from recycled paper and painted with natural paints. The bottle can also be returned to one of the stores where DENI is offered for a refill. Place DENI perfume will be manufactured at the current Maybelline plant located in North Little Rock, Arkansas.There will be an additional facility built for the manufacturing of the new perfume adjacent to the current massive factory. The administrative and transportation functions of the existing plant will be utilized for the new product as well as the distribution channels. DENI will be sold in Specialist Retailers, Department stores (including Duty-Free Shops), supermarkets and hypermarkets as it is a mass-market product with a low profit-margin. Price DENI will cost 38 EURO for the 50ml bottle to the final customer. The perfume is a mass-market product under L'Oreal’s Consumer Product Division and it is meant for everyday use and hence the pric e must be lower than the more luxurious products that the company itself offers as well as the competition.Table 2 shows a comparison of the prices for 50ml Eau de Parfum spray bottles of some of the bestselling perfumes on the market. For instance Chanel No. 5, as one of the best perfumes on the market costs nearly double compared to the price of an equivalent DENI bottle. The product however cannot be the cheapest since it has to be corresponding to L'Oreal’s image of offering high quality products. Perfume price comparison (EURO per 50 ml) 79 62 43 43 40 38 36 30 Table 2 Promotion Even if Maybelline creates the best product at the best price, no one would buy it if customers do not know about it. A very important part of the marketing strategy is the way the product will be introduced and advertised to the target market. As mentioned above, the target is women

Classification Essay Animals At A Shelter - 827 Words

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