The Marketing for Rimmel

Introduction

Rimmel first established themselves in 1834 and was originally founded by Eugene Rimmel. Rimmel is one of Europe’s most popular cosmetics brands and is a part of the Coty Lancaster Beauty Group, founded in London. Rimmel has kept its finger on the pulse and taken inspiration from London’s unique street style to create a brand of beauty that is unique. There extensive range is kept “bang up to the minute” as it translates the look of London into new shades, products, packaging and advertising. Furthermore, Rimmel products are easy to use, versatile and accessible, designed to encourage experimentation and self-expression. The Rimmel name now fronts a wide range of make-up products, aimed at the cheaper and trendier end of the market. The company is based in London and sells itself partially on a “Swinging London” image, using the name Rimmel London in many adverts. The current face of Rimmel is controversial British supermodel Kate Moss.

In my report I will look at the following areas to assess the marketing for Rimmel. Therefore I will assess the external (macro) environment for Rimmel; look at the way in which Rimmel have segmented, targeted, and positioned themselves in the market. I will also look at the internal environment and the key aspects of the marketing mix for Rimmel.

The External Environment

A business converts inputs into outputs in order to make a profit. However, the business does not exist in a vacuum; it exists within an external environment involving the actions of other players who are outside the business. It is very important that an organisation considers its environment before beginning the marketing process, as the business environment affects organisational decisions, strategies, processes and performance.

When examining the business external environment we must take in to account that there are two levels of environment; the immediate or operational environment; for most firms includes customers, competitors, intermediaries and suppliers. On the other hand, the general or contextual environment consists of the macro economical factors such as political, economical, socio-cultural and technological, influences on a business also known as PEST or PESTLE factors, which affect a wide variety of businesses not only from a local or national aspect but also from the international and supranational developments.

         To examine the external environment for Rimmel I will use the PEST model, which consists of the following;

The political arena; this has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. Political factors can have a direct impact on the way business operates as decisions made by the government affect our everyday lives and can come in the form of policy or legislation. Environmental regulation and protection, tax policies, international trade regulations and restrictions, employment laws, political stability and safety regulations etc are all factors to be taken in to account for Rimmel.

         All businesses are affected by economical factors nationally and globally. Interest rate policy and fiscal policy will have to be set accordingly. Marketers also need to consider the state of a trading economy in the short and long-terms. Issues to be considered for Rimmel are; economic growth, interest rates, level of inflation, government spending, and unemployment polices, taxation rate, exchange rates etc.

         The social and cultural influences on a business vary from country to country. It is very important that Rimmel consider such factors such as income distribution, demographics, population growth rates, age distribution, labour/social mobility, lifestyles, work/career and leisure attitudes, education, fashion, health consciousness and living conditions, are considered.

Technology is vital for competitive advantage, and is a major driver of globalisation. Points to be considered for Rimmel are: government spending research, new inventions and development, rate of technology transfer, life cycle and speed of technological obsolescence, energy use and costs changes in technology.

Segmentation, Targeting, Positioning

An organisation cannot satisfy the needs and wants of all consumers. To do so may result in a massive drain in company resources. In order to get a product or service to the right person or company, a marketer would firstly segment the market, then target a single segment or series of segments, and finally position within the segment.

Segmentation

Segmentation is simply the process of dividing a particular market into sections so that the marketing effort can be concentrated on serving a smaller number of consumers in a more effective manner. The aim of segmentation is to identify a group of people who have a need or needs which can be met by a single product. There are many ways that a segment can but the more general bases include the following:

Geographical segmentation this divides markets into different geographical areas. Marketers use geographic segmentation because consumers in different areas may display certain characteristics and behaviours in that particular region. Geographic segmentation is very commonly used in international market, but is equally useful with in single nations.

Psychographic segmentation classifies consumers according to their personalities, perceptions and attitudes. Psychographic segmentation remains problematical because of the difficulties of measuring consumer’s psychological traits on a large scale. However a number of research organisations and advertising agencies have developed their own systems of psychographic profiling.

Behavioural segmentation can be a useful and reliable way of segmenting. This segmentation is based on the relationship between the consumer and the product. It refers to why people purchase a product or service. It looks at the consumer as a regular user of the product or occasionally uses the product and the consumers’ loyalty to the product.

Demographic segmentation is the most commonly used method of segmenting markets. Demographics originate from the word ‘demography’ which means a ‘study of population’. The population can be divided into age, gender, income, and family lifecycle amongst other variables.

Targeting

Having divided the market into segments, managers must decide which segment will be the best to target. The process of selecting a market to aim is known as targeting. There are three basic strategic options open to the marketers; Concentrated, differentiated and undifferentiated.

         Concentrated marketing is where the organisation concentrates its marketing effort on one particular segment. The firm will develop a product that caters for the needs of that particular group. Concentrated marketing is used when one segment is especially attractive for the organisation to target. This strategy is appropriate for small firms trying to avoid a head-on clash with major player, as it helps them to secure a competitive advantage in a small nice in the market. Therefore this targeting process is also known as niche marketing. The niche marketer concentrates on being the very best within a single segment, selling a limited range of products and focusing on a single segment.

Differentiated marketing is where the marketing effort is directed at two or more segments offering a differentiated marketing mix for each segment. Differentiated marketing can be called a multi–segment approach which involves targeting a number of segments but treating each segment with a different marketing mix.

Undifferentiated marketing is about using a ‘scatter gun’ approach. There is no set segment and the entire market is targeted with a single mix. The product being marketed is used usually by all age groups and lifestyles. For example, the market for petrol is largely undifferentiated. However, undifferentiated products are becoming increasingly rare as producers are differentiating their products in order to meet consumer needs better.

Positioning

         Positioning has been defined as ‘the place a product occupies in a given market, as perceived by the relevant group of customers; that group of customers is known as the target segment of the market.’ Usually positioning refers to the place a product occupies in the consumers perceptual map of the market; for instance as a high-quality item, or a reliable one, or even a cheap version. Consumers build up a position for a product based on what they expect and believe to be the most pertinent features of the product class. Research shows that consumers use a relatively short list of factors in determining the position of a product, these are as follows; Top of the range, this refers to the product which consumers believe to be the most expensive or the best.

         Rimmel have used the most commonly used segmentation method of demographic by dividing the market by gender and age as Rimmel is said to be aimed and trendier end of the market. I believe Rimmel have used the concentrate approach for targeting as they have concentrated their products relating to one main segment of ‘women’. As said previously Rimmel has positioned its product to the ‘cheaper and trendier’ also being classed as ‘reliable’ end of the market.

The Marketing Mix

When marketing their product firms need to create a successful mix of the right product, sold at the right price, in the right place, using the most suitable promotion.

Product

“A product is a physical good, service, idea, person or place that is capable of offering tangible and

intangible attributes that individuals or organisations regard as so necessary, worthwhile or satisfying that they are prepared to exchange money, programme or some other unit of value in order to acquire it’

                                                                           (Brassington and Pettitt 2007)

 A Product anatomy can be broken down into the following; core, tangible, augmented product and potential products.

 Marketers categorize a product in three ways; durable, non durable and service products. On the other hand, customers seem to categorize this differently, which is as follows; Convenience goods, these are bought on a regular bases and don’t need much effort when bought. Shopping goods, these need to shopped around for and take much more effort e.g. clothes. Specialty good, these are brought not so often and tend to be very expensive e.g. designer bag. Unsought goods on the other hand, are those which are unintentionally brought or need to be bought e.g. utilities such as gas, emergency repairs.

Branding is a very important part of the product. It gives the product a character and personality and is normally the reason why consumers acquire a product. There are many benefits for branding, from the customers perspective, it makes it easier to locate the product and it gives the product a character and quality in the consumer’s eyes. Benefits for the marketers are that it helps differentiate a product from similar products, it increases customer’s loyalty towards a product therefore reducing the risk of attack from competitors and it allows premium pricing. From the retails perspectives branding attracts customers, due to premium pricing it will result in a greater profit margin for the retailer.

          Rimmel produces make up products, these are non durable product as make up products have to be replaced fairly regularly once used. Branding for Rimmel is very important as there are many make-up brands which can substitute Rimmel products. Rimmel branding has positioned themselves in the criteria that there is the ‘cheaper and trendier’ make- up brand. Rimmel use the name ‘Rimmel London’ implying that are setting the look London and having Kate Moss as the face to advertise its products gives the impression that Rimmel make up is cheap and affordable at yet still delivers supermodel standard products.

Price

Price is one of the most important elements of the marketing mix as it’s the only mix which generates a turnover for the organisation. Price is crucial not only for making a profit but also to the quantity of the products that will be sold. Pricing too high or too low can lead to a loss for the organization. Therefore pricing should take into account the following factors; fixed and variable costs, competition, company objectives, proposed positioning strategies, target group and willingness to pay. So a price strategy must be set.

There are many price strategies which a company can adopt. These strategies are based on the objectives the company has set itself to achieve. The price strategies are as follows; Penetration this is where the organisation sets a low price to increase sales and market share. Skimming pricing, here the organisation sets an initial high price and then slowly lowers the price to make the product available to a wider market. Competition pricing, is setting a price in comparison with competitors. Product Line Pricing, is where pricing different products within the same product range at different price point, the greater the features and the benefit obtained the greater the consumer will pay. Bundle Pricing, here the organisation bundles a group of products at a reduced price. Psychological pricing, the seller here will consider the psychology of price and the positioning of price within the market place. The seller will therefore charge 99p instead £1. Premium pricing, here the price set is high to reflect the exclusiveness of the product. An example of products using this strategy would be Harrods, first class airline services etc. Optional pricing, the organisation sells optional extras along with the product to maximise its turnover. This strategy is used commonly within the car industry.

         Rimmel is said to be ‘the cheaper and trendier’ brand. Therefore the aim for Rimmel is to be affordable but yet still provide a great deal of quality to the product. Here the price should reflect the image of the brand and the quality of the product. When using pricing strategies there can be more than one price strategy which can be used, however I believe for Rimmel, the product line pricing strategy is used as the pricing for Rimmel make-up reflects the features and benefits of the product. The consumers are paying less for Rimmel than that for L’Oreal as L’Oreal gives the impression of top class quality.

Place

Place strategies refers to how an organisation will distribute the product or service they are offering to the end user. The organisation must distribute the product to the user at the right place at the right time. Efficient and effective distribution is important if the organisation is to meet its overall marketing objectives. There are two types of channel of distribution methods available. Indirect distribution involves distributing your product by the use of an intermediary. Direct distribution involves distributing direct from a manufacturer to the consumer e.g. Dell Computers.

Clearly direct distribution gives a manufacturer complete control over their product. Depending on the type of product being distributed there are three common distribution strategies available; Intensive distribution, which is used commonly to distribute low priced or impulse purchase products e.g. chocolates, soft drinks.  Exclusive distribution, this involves limiting distribution to a single outlet. The product is usually highly priced, and requires the intermediary to place much detail in its sell. An example of would be the sale of vehicles through exclusive dealers. Selective distribution is where a small number of retail outlets are chosen to distribute the product. Selective distribution is common with products such as computers, televisions household appliances, where consumers are willing to shop around and where manufacturers want a large geographical spread.

Rimmel use indirect distribution as we have said previously, you will never find a Rimmel store however, you will find many Rimmel products sold in supermarkets or pharmacies and chemists. Make-up brands tend to not have their own store and usually use the indirect distribution approach as the product sold are not large enough to afford personal stores as well as many other reasons.

Promotion

Promotion strategy can be also known as the Marketing Communications. Managing marketing communications is about choosing the most effective combination of promotional activities. Successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organisation’s promotional strategy can consist of the following; Advertising which is any non personal paid form of communication using any form of mass media. Public relations this involves developing positive relationships with the organisation media public. Sales promotion this is commonly used to obtain an increase in sales short term. This could involve using money off coupons or special offers. Personal selling, this involves selling a product service one to one. Direct Mail, which consists of sending of publicity material to a named person within an organisation.

Most companies try to use most and all the promotional strategies to attract their target audience. However, Rimmel’s main promotional strategy is advertising using media. There face used is supermodel Kate Moss. The use of a celebrity like Kate Moss to advertise for Rimmel is a great promotional strategy as it encourages consumers to use the product which is being used by a celebrity. This also gives the product a status in the consumer’s eyes indicating that they are purchasing professional and high status products. Rimmel also use many other promotional strategies such as sales promotions etc.

Conclusion

When considering marketing a product in to the consumers, it is important that the external environment and internal environment are taken into account. Using the correct methods of segmentation, targeting the right segment and correct positioning of the product helps to deliver a product to the right audience and will result in a large benefit for the product. Rimmel have segmented their products using demographic segmentation and targeted mainly the female gender and the younger generation, as they position their products to be affordable as well as reliable and fashionable. The marketing mix is also necessary as it establishes the right product at the right price in the right place using the correct form of promotion.

Bibliography

Books

Brassington, F .Pettitt, S. (2007) Essentials of Marketing.  2^nd  Edition. Harlow, Prentice Hall

Blythe, J. (2005) Essentails of Marketing. 3^rd Edition. Harlow, Financial Times Prentice Hall.

Websites

www.marketingteacher.co.uk 

www.quickmba.com/marketing/ 

www.netmba.com

www.bized.co.uk/learn/business/ 

. www.thetimes100.co.uk