Revlon
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Revlon is a global cosmetics brand sold in 175 countries that was founded in the 1930s and has grown through acquisitions, new product lines, and celebrity endorsements. The document outlines Revlon's history, international expansion, product portfolio including collections and top-selling items, retail strategy focusing on modern outlets, and marketing approach involving brand ambassadors. It also provides a SWOT analysis of the company and its strategy to position itself as a premium beauty brand in India through price increases and new launches.
Revlon
- 1. ….1930 a journey begins leaves a never ending mark behind. Revlon a brand sold in approximately 175 countries and territories. Include Revlon®, ColorStay®, New Complexion®, Revlon Age Defying®, Almay®, Ultima II® and Flex® and Charlie®.
- 2. Index …a voyage begins Market presence Revlon International Strategy 2007-08 Market Presence Distribution Retail presence Counter Look Merchandising BA Animation Store Plano gram Retail activity Product portfolio Collections Top SKUs Communication Analysis Medium used Brand ambassadors SWOT Analysis Key Learning
- 3. …a voyage begins 1930’s • The company began its success with opaque long-lasting nail enamel sold to beauty salons. Revlon sold its nail enamel through department stores and selected drugstores. 1940's • Revlon contributed directly to the war effort, by manufacturing first aid kits and dye markers for the navy. At war's end, Revlon began to produce manicure and pedicure instruments. 1950's • Following the war, Revlon launched twice-yearly nail enamel and lipstick promotions tied to seasonal clothing fashions. Revlon also turned to television sponsorship to boost sales. In December 1955, Revlon first offered stock to the public. At the end of the following year, Revlon was listed on the New York Stock Exchange. 1960's • Revlon laid the ground work for its highly successful international presence in the 60's, bringing the "American Look" to the rest of the world through advertising featuring U.S. models.
- 4. …a voyage begins 1970's • 1973 saw the introduction of Charlie® fragrance, designed for a young, working woman market and by the mid 70's, Charlie® was the #1 Fragrance in the world. Revlon sales figures passed the $1 billion mark in 1977. 1980's • Growth and innovation led the way for Revlon. In 1985, Revlon was sold to a subsidiary of MacAndrews & Forbes Holdings. In 1987 Almay joined the Revlon lineup. 1990's • In the 1990's, Revlon revitalized its cosmetics business and strengthened its industry leadership role. Revlon introduced the first transfer resistant lipcolor which led to a full ColorStay® Collection of transfer-resistant products. The company closed the gap on its closest competitors and reached a dramatic goal - the #1 brand in mass color cosmetics. Revlon again became a public company in 1996, listed on the New York Stock Exchange (NYSE: REV).
- 5. REVLON INDIA • Modi-Revlon is the formidable alliance between the Modi Group and the world famous Revlon of USA. • Modi-Revlon was the first International cosmetic brand to enter India in 1995. • Modi-Revlon has entered the Indian market and has redefined the concept of beauty care in India. • It brings to the Indian women an exciting range of international cosmetics, toiletries and fragrances - all adapted to suit the local conditions and preferences. • Modi-Revlon draws on the expertise of Revlon’s premier Research Centre in Edison, New Jersey (USA), to harmonise its international product offerings with the needs and preferences of the Indian women. Mr. Jerry Lewin (Revlon); Mr. Umesh.K.Modi and Mr. Paul Block
- 6. REVLON INDIA • The company thinks Global, but acts Local. • The manufacturing standards of Modi-Revlon are as exacting as elsewhere in the world. • The toughest QC standards in line with the global norms are followed. • The products advertising features international celebrities and super models. • Modi-Revlon’s product portfolio currently consists of Lipsticks, Nail Enamels, Eye and Face Make-up, Flex Shampoos, Flex Conditioners, Charlie Cologne, Body Sprays, Talc and Fire and Ice cologne.
- 7. Revlon 90’s & Early 2000 • Since market liberalization, several multinational companies, such as Revlon, Coty, Oriflame, Chambor, Avon, Yardley, Nina Ricci, Garnier Laboratories, and L'oreal, have entered the Indian market. • Revlon has a market share of 80% in the premium market. Lakme is the overall market leader in the colour cosmetic segment (lip care and nail enamel) with a wide range of products and prices, both. • Maybelline competes with Revlon and Lakme in the colour cosmetics market in India. Revlon too has grown 65 per cent to strengthen its share to 13 per cent during the period.
- 8. Revlon 90’s & Early 2000 • Modi Revlon To Take On Elle 18 With New Brand StreetWear from Lakme Levers: It is entering the teenage market from 15-25 yrs. The range consisted of about 30 SKUs covering categories like nail enamel, lipsticks, lip gloss, face make-up kits and eye shadows. Modi Group distant StreetWear from Revlon so as to segment the market and corner new market share rather than cannibalise. Hence StreetWear range has been priced below Rs 100 and targeted at the socio-economic class (SEC) A, A2 and may be launched in the top 23 cities beginning with Delhi, Mumbai and Chandigarh.
- 9. Revlon 90’s & Early 2000 • Modi Revlon Glosses Up For Fresh Growth: According to Modi-Revlon Ltd chairman and president UK Modi: “To start with, we are planning to beef up our distribution network for Revlon lip colours, Liquid Lip and Lip Glide from 1,000 stores to 2,500 stores along with subsequent increase in beauty advisors at new stores by the end of 2007” Modi-Revlon Ltd also forayed into direct-marketing activities which are scheduled to commence from October 2004. The company also provide Revlon products to its two lakh women customers through direct- marketing activities.
- 10. Revlon 2009 Plans • MODI-REVLON TO GENERATE Rs400-CRORE BUSINESS (company plans to set up a manufacturing unit for cosmetic products in Sri Lanka). • Modi-Revlon, a joint venture of Umesh K Modi Group and Revlon of the US, is targeting a total business of Rs400 crore to achieve by 2013. • Initial investment of $1 million (about Rs4.2 crore). • Proposed unit, which will be a wholly owned subsidiary of Modi-Revlon, will cater to countries in Southeast Asia. • It is expected to generate 10-15 percent of the total income by end-2009.
- 12. Revlon International • Revlon has signed makeup artist Gucci Westman to serve as global artistic director, providing Revlon with expertise on new products, shade development and working on set with Revlon's global brand ambassadors. • Gucci Westman: Gucci Westman is a world renowned makeup artist. Her acute sense of glamour makes her the "go-to" makeup artist for some of the most beautiful and elite women in Hollywood. She travels the globe in search of new products and shade trends. Gucci is married to Rag & Bone designer David Neville and they have one son. • Revlon has has donated more than $65 million to support women's health and participating breast cancer programs. Source: Publication: Drug Store Newsa Publication Date: 19-MAY-08
- 13. Revlon in 90s and 2000’s • Revlon Inc. is looking to recapture its glory by chasing after an underserved market: women over age 50. (Year 2005) It launched Vital Radiance, a line of makeup formulated for older women. L’Oreal SA have focused on age-defying beauty products for women in their 30s and 40s, the segment is becoming a hot new opportunity. Female heads of household over age 45 account for about 69.3 percent of cosmetic purchases at mass retailers. • Revlon Unveils Breakthrough Advertising Campaign; Featureing Revlon Spokespeople Halle Berry, Julianne Moore, Eva Mendes, Jaime King. Four Women. Four Stories. One Feeling (Year 2004) The campaign brings the brand's "confident sexy" positioning to life, and creates an emotional connection that underscores the way women feel about using Revlon's beauty products. "This advertising campaign makes you want to feel the way Halle, Julianne, Eva, and Jaime feel - confident, sexy, wonderful." Source: ACNielsen
- 14. Revlon in 90s and 2000’s • REVLON BRANDING CAMPAIGN INCLUDES: Television & In-Theater Internet: Print & Outdoor • Revlon to return to celebrity advertising: (Year 2002) Seven months after it dumped model Cindy Crawford to focus on relatively unknown models. It made a u turn to its 80s advertising, which featured famous faces and the strapline: "The world's most unforgettable women wear Revlon." In the eara it signed faces like Julianne Moore and James King.
- 15. Revlon 2008
- 16. Revlon Social Cause: PETA STOP ANIMAL TESTING Revlon has sent the message that beauty doesn’t have to come with an ugly side," said PETA (People for the Ethical Treatment of Animals) President Ingrid E. Newkirk. "Although there are still some holdouts, Revlon’s commitment to compassion has become the standard in the personal-care-products industry. For blazing the cruelty-free trail with a sensational line of hair-care products, cleansers, perfumes, and makeup, venerable personal-care-products company Revlon has won PETA's "Cutting-Edge Company" Award.
- 17. Revlon Social Cause: Cancer
- 18. STRATEGY 2007-08
- 19. STRATEGY 2007-08 1. To valorize the brand to occupy a premium position in the market • By taking big price leaps of their existing range: Avg MRP up from Rs. 250 to Rs. 400 post 2007 • By launching more and more high value, latest international products. E.g. color stay soft & smooth (Rs 575); mineral foundation (Rs 900), limited editions (Rs 600-1000) 2. Focus on strengthening Modern retail operations = BA led 3. New international imagery in modern retail
- 20. Market presence Distribution Retail presence Counter Look Merchandising BA
- 21. Distribution And Retail Presence. There are three categories of channels of distribution - • Prestige - Department stores, specialty stores and chain department stores, such as Macy's, Neiman-Marcus and J.C. Penney (internationally) and Shoppers’ Stop, VAMA, Westside, Bombay Stores etc (nationally). • Broad - Drug stores, food stores, cosmetic discounters, warehouse clubs, and mass merchandisers. Such as Eckerd, Pathmark, Cosmetic Center, Sam's Price Club and Wal-Mart (internationally) and Satyam, Haiko, Sahkari Bhandar, Beauty Center etc. (nationally) • Alternative - is identified by five different marketing methods: • o Direct Sales o Direct Mail/TV/Print o Salons (Lokhandwala) • Sourcing: Imported and Local manufacturing. (AC Neilsen)
- 23. Counter Look
- 24. Counter Look
- 25. Counter Look
- 26. MERCHANDISING
- 27. MERCHANDISING • Pitches as a 3 category brand to gain at least 6 ft space in modern retail • Revlon’s merchandising follows the Back Wall stocking unit + Front counter format
- 28. MERCHANDISING Ebony, Chandigarh 6 ft counter 3 ft counter
- 29. MERCHANDISING OLD Tester Bar NEW Tester Bar
- 30. MERCHANDISING Lips at eye level on top Face and eyes on Lower shelf. Branding with NY Corporate visual Nails at the bottom or on counter
- 31. ANIMATION
- 32. ANIMATION • They are generally very innovative . • Visually appealing. • Standard color coding of beige. • Very Attractive because of the materials used.
- 33. Beauty Advisor • No uniformity in the uniform across stores: Basic uniform : White Shirt ,Black Blazer & Black Trouser. Other Uniform: White Shirt & Grey Trouser or White Shirt & Denim or Black Blazer & a polka Dot shirt in black and white. • No Uniformity in Hair Styling: Some have their hair open . Some have a bun as a part of hair styling.
- 34. Beauty Advisor • The Beauty advisor overall are well trained and well spoken • Aware about the latest products and offers. • Training in English would help them to attract more customers .
- 35. Store Plano gram
- 36. Store Plano gram 1. Shoppers’ Stop, Inorbit Mall 2. Shoppers’ Stop, Andheri 3. Lifestyle, Inorbit Mall 4. Pantaloons, Highstreet Phoenix 5. Hyper City ,Malad Observation: The counter of Revlon is either placed next to Lakme and Maybelline or L’Oreal and Chambor.
- 37. Retail activity Makeover Counters Plaque cards for sale
- 38. RETAIL ACTIVITY
- 39. RETAIL ACTIVITY Plaque cards for sale
- 40. Product portfolio Pricing Collections Top SKUs
- 41. Pricing and Brand positing • Pricing of the product and the nature of product usage are the two criteria that define brand positioning. Mass-market category: price range of Rs 45 to Rs 200 Middle market price: Rs 200 up to Rs 800 High-end market: Rs 800 to about Rs 5000. Premium range : pricing can touch up to Rs 35,000. • L’Oréal pushes Maybelline and Synergie ranges to the younger generation and also in the lower income group mass market. • L’Oréal range of cosmetic and skin care products are for the middle and higher- middle class women • Vichy is for high-end users,” explains the source at L’Oréal India.
- 42. Pricing and Brand positing • Lakme and Color Bar are being pushed as mass market products and focus on younger women and women with lower buying power. • Revlon, Chambor, Diana of London, Bourjois and Pupa that make the mid-range. • Clarins, Shiseido, MAC, Christian Dior, Nina Ricci, YSL and Lancôme make the high end. La Prairie touches the premium end of the market.
- 45. Collections Super Lustrous Moisture Stay
- 47. Top SKUs • Eyes Lash Stylist Color Stay • Face Color Stay Beyond Natural • Lips Super Lustrous Moisture Stay • Nails Nail Enamel
- 48. Communication Analysis MEDIA STRATEGY: Not media driven Minimum media spends Print: • Minimal presence: on print • Usually supports new launches alone Television Contest: Die Another Day
- 49. Communication Analysis Television: • Reacted to MEX on TV with a print campaign of Super Lustrous, their star product.
- 50. Communication Analysis Brand ambassadors Jennifer Connelly as new global brand ambassador Revlon has signed Academy Award winning actress Jennifer Connelly to represent the Revlon brand. She joins Revlon's line-up of accomplished and glamorous women including Academy Award winning actress Halle Berry, actress Jessica Alba, actress Beau Garrett and newly signed supermodel and entrepreneur Elle Macpherson. "Connelly is a modern, dynamic and intelligent woman. She is an accomplished wife, mother and actress and her successes complement the spirit of the Revlon brand," said Revlon president and CEO David Kennedy. "We are elated to have Connelly join the Revlon family." In addition to being featured in upcoming global advertising campaigns, Connelly will be involved with various company-sponsored philanthropic activities and fundraising events for charity. To date, Revlon has donated more than $65 million for research, counseling and outreach programs to support women's health and participating breast cancer programs. "I am honoured to be joining the Revlon Family," said Connelly. "Revlon is one of the great iconic brands of today and I am thrilled to be part of a company that has done so much for women around the world."
- 52. SWOT Analysis Strength Strong Retail presence Attractive counters Multiple product category Weakness Need to fill the gap of well informed new product launches. Opportunity First mover advantage as it has presence in fragrance and experience in the price range category Has a lager portfolio in order giving high distribution capacity. Threat Low media spends may make the brand weak over period of time resulting to death.
- 53. Key Learning • Not much difference between the Brand Nationally and Internationally. • High media spends is not required to get brand visibility in competition subject to time. • Strong Retail store spends pays off from the BA- Counters. • Maybelline and Revlon work quite on the same lines from Celebrity endorsement, to ad layouts, look of the TVC. • The strong presence of the culture of New York in both the brand attributes and values. • Maybelline against Revlon is a much younger brand when comparing the celebrity. • Street wear is a brand which Maybelline needs to keep a track on.