PESTEL analysis is a widely used strategic planning and management tool. LOreal has been the parent company of Maybelline since 1996. - Influence of Climate Change How climate change will impact Maybelline Category business model and supply chain. Providing a secure work environment for the workforce is the ethical and moral obligation of Maybelline Inc About Face. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Aithal, P. S. (2017). Analysis of the Environment/Sector. Maybelline Category should be careful about the history of forex risk before entering new market. Entering in countries with high taxation level will directly influence the profitability of Maybelline Inc About Face. The key to getting PESTLE analysis right is understanding what each category stands for. The accelerating demand for face care products played an important role for the success of the companys anti-ageing creams and the tissue masks which the company sells under the brand of Garnier. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. - Education Level in Society Education level of the society impacts both the quality of jobs and level of income. Maybelline Inc About Face. Many businesses, especially those in primary industry, have some kind of impact on the environment. Ranging from political factors to environmental factors, each factor comprises various variables that influence the strategic decision making process of business organizations like Maybelline Inc About Face. Maybelline Inc About Face. With the acquisition of Maybelline, the company became a market leader in the industry establishing a dominant position. Organic makeup: More and more customers are concerned about the health risks . 808 certified writers online. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. But even though the products in this industry are endless, they all focus on selling one specific idea: a better you. High taxation affects international trade and prevents exports. Thats why brand loyalty is higher among Maybellines customers. ~ 0.0 Page). PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Such factors represent the issues relevant to the company's business. The data protection has become an important issue due to consumers privacy and security concerns. Explore. PESTLE analysis is a framework which is imperative for companies such as Maybelline, as it helps to understand market dynamics & improve its business continuously. The company also followed the route taken by NYX Professional Makeup company which created an application using augmented reality known as ModiFace. The cost-efficiency provides the company an opportunity to penetrate into a different market and target price-conscious customers. Aside from analyzing countries, you can, of course, analyze businesses with PESTLE analysis. Threats in the SWOT analysis of MAC Cosmetics. How it impacts the demand in the economy. The PESTLE analysis is a handy technique to analyze the current external factors like political, economic, social, technological, legal and environmental and their effect on EasyJet's business. to study the current trends in the country's political scenario as changes in government may alter the government's priorities towards the development of different industries. Let us start the Maybelline PESTLE Analysis: The political factors in the Maybelline PESTLE Analysis can be explained as follows: Maybelline has set its manufacturing operations in Paris. Managers at Maybelline Category need to examine three inter-related environments in order to come up with an effective strategy. Porter's 5 Forces identifies competition, new entrants into the industry, supplier power, buyer power, and the threat of substitute products and services in the market. Feel free to connect with us if you need business research. But even though the products in this industry are endless, they all focus on selling one specific idea: a better you. Estimated to reach $805 billion (651 billion) by 2023, the global cosmetics market has been injected with the vigour of Silicon Valley.To add to this, under Covid-19, lockdown and safety concerns over human contact have meant that this kind of disruptive tech has . require the organization to consider these differences to avoid undesired circumstances carefully. This can help Maybelline Category in numerous decisions such as plant location, product development, and pricing strategy. Political & Legal Forces: Laws and regulations are made by the government regarding the recruitment of professionals from various multiracial countries to L'Oreal (Hae-Jung, 2013).The products . must consider the following social factors to conduct macro-environmental analysis: Changes in demographic patterns like aging population, migration trends and socio-economic variables have paramount importance for international business organizations like Maybelline Inc About Face. Maybelline Inc About Face. Chat with us Pestle analysis can give more result oriented opportunities to Nestle for the future business growth along with sustainable profits. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Maybelline Category. But they arent much different from the competitors products. After a careful study of the swot analysis of Maybelline, weve concluded that Maybelline is indeed the worlds leading cosmetic and personal care product manufacturing company. Some of the economic factors that Maybelline Category should evaluate both in the present market and one in which it wants to enter are inflation rate, GDP growth rate, disposable income level etc. The basic premise of PESTLE analysis is that you analyze a chosen organization from six different perspectives: Political, Economic, Sociocultural, Technological, Legal, and Environmental. It is written by Julie Hennessy, Jill Carter, Jimmy Carter, Alice M. Tybout and shed light on critical areas in field of Sales & Marketing, Competition, Product development that the protagonist in the case study is facing. For more information about that, we highly recommend our 3 Step Guide to PESTLE analysis. 4.1 PESTEL Analysis for Estee Lauder: PESTEL analysis is the external analysis of the different macro-environmental factors that a business must consider. They have reported that up to 100% of the companys soya and sesame oil, that is used in production has been obtained in a sustainable manner. The health and efficiency of financial markets will determine Maybelline Inc About Face.s ability to raise the capital at fair prices. USA has avoided the European Union style stagnant economy on the back of slightly higher birth rate and higher level of immigration. As population is ageing it will require less tech intensive products. A PESTLE analysis studies the key external factors (Political, Economic, Sociological, Technological, Legal and Environmental) that influence an organisation. Many eco-friendly customers stopped buying the companys products ever since they found out about products testing on animals. - Securities Law What are the securities law in the country and what are the conditions to list the company on national or regional stock exchange. Each society has distinctive norms and values that play an important role in shaping consumer behavior. Yksel, I. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. In the Maybelline PESTLE Analysis, the environmental elements affecting its business are as below: Maybelline has facilitated its goal of creating a sustainable business at the heart of driving business innovation. Understanding the demographic trends, power structures, consumers spending patterns and shared beliefs can help Maybelline Inc About Face. The PESTEL/PESTLE Analysis model is a tool for identifying the external factors that influence the remote or macro-environment of firms. BMW Mission, vision, PESTLE analysis. The three inter-related environments are industry environment in which the company operates in, the geographic market or country in which company operates, and wider socio economic / macro environment. The PEST analysis looks at four types of external environmental elements: P -Political factors in an economy include various forms of government intervention and political lobbying, such as. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. (2009). You simply gather up as much information as you can about a business or country, and then spread it across the six PESTLE categories: Political, Economic, Sociocultural, Technological, Legal, and Environmental. Maybelline is from an industry that is categorized under monopolistic competition. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. Maybelline Category should be aware of presence of such practices in a country. It. Cost Based Pricing could be a bad strategy under such conditions. Offering luxury products at premium prices to a market where the high-end market is considerably small in number will require Maybelline Inc About Face. - Consumer Disposable Income The household income of the country has increased constantly in the last decade and half, compare to the USA market where household income is still below 2007 levels and not increased in real terms since early 1980s. It is important for Maybelline Inc About Face. See the full A-Z list of all CIPD factsheets . These dupes carefully play on the enthusiasm created by the brands and then offer similar characteristics of the brands. The availability of substitute products makes it difficult for the company to maintain its market share. - Focus & Spending on Renewable Technologies How much of the budget is spend on renewable energy sources and how Maybelline Category can make this investment as part of its competitive strategy. Developing a multi-criteria decision making model for PESTEL analysis. Talking about Maybelline, it has been created by L'Oreal to be a Leading Global Mass-Market Cosmetic Brand in its customers mind. Positioning strategy it is a strategy that shows where your products stand in the mind of your customers, and how is it different than your competitor. Maybelline Inc.: About Face case study (referred as Maybelline Category for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Sales & Marketing and strategic management. Maybelline Marketing Marketing is the business function that identifies unfulfilled needs and wants defines and measures their magnitude determines which target market the organization can best serve decides on the appropriate products pricing and promotion and distribution programs to serve these markets to develop a market orientation. 2074986 Orders. The owner of these highly successful brands, have often taken to social media to express their dissatisfaction against the dupe culture that is especially prevalent in the beauty industry. At first it was only focused on eye make-up but after it . The high interest rate will encourage the attitude towards investment and increase growth opportunities for Maybelline Inc About Face. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. However, the company is taking full advantage of its resources. due to jeopardized public trust on business organizations and overall political and economic structure. The marketing department of Maybelline Inc About Face. Through its efforts, the company has been able to help the distressed borrowers in keeping their homes or avoiding any foreclosure. The application allows women to visually try the products or looks of the company. For the economic factors affecting a business, you can discuss the international economy, national economies, or even regional economies. Technology' is the fourth factor of PESTEL analysis. Earlier in this post, we detailed how you can interpret each of the six categories of the acronym. must adjust its business management practices while entering in markets with high or low power distance. Accordingly, we never encourage or endorse its direct The PESTLE analysis is done to chart the impact of multiple external conditions on the future development of a company. This gave Maybelline a global brand, therefore, increasing its sales through entering new markets. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Maybelline Inc.: About Face, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, Case Study Solution & Analysis of Maybelline Inc.: About Face, SWOT Analysis of Maybelline Inc.: About Face, 5C Marketing Analysis of Maybelline Inc.: About Face, 4P Marketing Analysis of Maybelline Inc.: About Face, Porter Five Forces Analysis and Solution of Maybelline Inc.: About Face, Porter Value Chain Analysis and Solution of Maybelline Inc.: About Face, Case Memo & Recommendation Memo of Maybelline Inc.: About Face, Blue Ocean Analysis and Solution of Maybelline Inc.: About Face, Marketing Strategy and Analysis Maybelline Inc.: About Face, VRIO /VRIN Analysis & Solution of Maybelline Inc.: About Face, PESTEL / STEP / PEST Analysis of Maybelline Inc.: About Face, Case Study Solution of Maybelline Inc.: About Face, SWOT Analysis and Solution of Maybelline Inc.: About Face, GOME Electrical Appliances Holding Limited: The "Tuangou" Challenge PESTEL / PEST / STEP Analysis & Solution, Alliance Grain Traders Inc.: Moving Up the Value Chain (B) PESTEL / PEST / STEP Analysis & Solution, Shoppers Stop - Targeting the Young PESTEL / PEST / STEP Analysis & Solution, Reputation in Online Auctions: The Market for Trust PESTEL / PEST / STEP Analysis & Solution, Ajanta Packaging PESTEL / PEST / STEP Analysis & Solution, Groupon, Spanish Version PESTEL / PEST / STEP Analysis & Solution, Retail Promotional Pricing: When Is a Sale Really a Sale? 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