#Promotion

Steps in Developing Effective Communications

   1)   Identify Target audience: Revlon targets the Upper Middle class of consumers/audience. Women aged in the range 20-40 years.

   2)   Determine Objectives: Revlon being an established brand needs a Brand Recall whenever any customer feels the requirement of any product category. Brand recognition while purchasing can also be another objective.

   3) Design Communications: Message-The product heritage was always about enticing women with color and setting trends when it comes to color. And its still doing it today.

 The essence of the brand is bold glamour. This has not changed over the years ... even in places where Revlon is not selling so much.

 Message Source- Messages are & have always been delivered via popular sources like celebrities to create higher attention & recall.

                                                                                          

4)Select Communication Channels: Non-Personal or Mass Communication channels( Print, Television & Online)

 5) Establishing Communication Budget: Objective & task Method(specifying objectives, determining the tasks to achieve the objectives, and estimating the cost of performing them)

6) Sales promotion: Revlon uses sales promotion tools like Coupons, contests, premiums to draw the response of the target customers. Public relations & publicity: News stories & features in magazines.

#Channels

Ø The company markets extensive consumer product lines principally priced in the upper range of the retail channels.

 Ø Revlon uses:

     ·       Print

     ·       Television

     ·       Internet advertising

     ·       Coupons & other trial incentives

 Ø Additionally, the company maintains separate website www.revlon.com. The website features product & promotional information and is updated regularly to stay current with the company’s new product launches & other advertising and promotional campaigns.

OOH promotion

PRINT

 ü Up until the 1940s, Revlon's magazine ads were drawn by hand and mostly in black and white

 ü  Beginning in 1945, Revlon began launching full-color photographic advertisements in major magazines and stores across the country

 ü  One of the world's first supermodels, Dorian Leigh, starred in some of Revlon's most memorable advertisements of all time

 ü  In November 2010, Revlon re-created 1953's "Fire and Ice" magazine ad, this time with actress Jessica Biel. With this ad, Revlon announced they were issuing a limited edition Fire and Ice lipstick and nail color calling this campaign, "lips and tips."

 ü In 1970, Revlon became the first American cosmetics company to feature an African American model, Naomi Sims, in their advertising.

 ü Jessica Alba features in the print advertisements of Revlon at present.

Television(BRAND AMBASSADORS)

 ü Olivia Wilde: Actress, activist and red carpet style icon, Olivia Wilde has been a REVLON Global brand ambassador since 2011.

 ü Halle Berry: Academy-award winning actress and activist Halle Berry has been a REVLON brand ambassador since 1996.

 ü Emma Stone: Golden-Globe nominee and Hollywood fashion  icon Emma Stone has been a REVLON Global brand ambassador since 2011.

Internet

 ü Celebrity You Campaign by Revlon India to Promote its New Range of Cosmetics- The Facebook application, launched on October 14, 2013, allows a user to morph herself into a celebrity. She is also encouraged to upload a photo of hers in one of the three templates provided — a Billboard, a Magazine Cover or a Street Hoarding — along with one of the newly launched PhotoReady products to look and feel like a celebrity herself.

                           

 ü Revlon Expression Experiment- A dynamic Facebook community called the Expression Experiment. Since launch, over 200 bloggers have participated in the Revlon Expression Experiment garnering 6,453 clicks, 207,155 views and a click-through rate more than three times the industry standard. The Revlon Expression Experiment was promoted further on Revlon’s social networks receiving 17,681 interactions on those posts and a reach of 649,253 users.

Distribution Channels

Revlon acts on a two-level distribution channel network which comprises of the following:

Ø Manufacturer: Revlon

The Company’s products are sold in more than 100 countries across six continents. In addition, the Company utilizes sales representatives and independent distributors to serve certain markets and related distribution channels.

The average Revenue of the company is around $1.49Bn.(http://www.wikinvest.com/stock/Revlon_(REV)/Data/Key_Metrics)

                                                

Ø Wholesaler: Concord Enterprises Inc.(Based in US)

Founded in 1982 it has grown to become one of America's largest import/export wholesale distributors of general merchandise. It imports thousands of items in many different merchandise categories from hardware to groceries, baby products to cosmetics.

Ø Retailer: Craft Plus(Based in India)

It is a fast growing retail giant, has expanded its retail chains nationwide. The groups' business verticals are spanned across retailing primarily in the consumer merchandise including Handicrafts, Jewelry, Footwear, Garments, Home-ware, Foodstuffs, Cosmetics etc.

(The Company’s principal customers include large mass volume retailers and chain drug stores, including such well-known retailers as Wal-Mart, Target, Kmart, Walgreens, Rite Aid, CVS and Longs )

Ø Consumers

Types Of Retailers

   1)    Store Retailers: For Revlon

§  Specialty Store: The stores dealing exclusively in “Cosmetics” .

§  Drug Store: Stores dealing in health & beauty aids, personal care etc.

§  Discount Store: Retail Chains like WALMART, KMART etc fall in this category.

   2)   Non-Store Retailers: For Revlon
     §  Direct Marketing: It includes telemarketing, and electronic shopping. The Revlon            products are available on the online shopping portals which makes the product access easy. Example: Amazon

Setting a Pricing Policy: Revlon Street Wear Mineral Lip Gloss

 Ø Selecting  a Pricing Objective: Among all the international players in the cosmetic segment in India, the first one to launch was none other than Revlon in 1995. It happened due to the collaboration between Umesh K Modi along with Revlon Pvt Ltd  in 1994 . Pricing is done for the mid-level consumers as it neither too high nor too low priced. The company owns approximately 20-25 % of the domestic color cosmetic market share. As Revlon places itself among the top 10 brands in India…it aims to be the PRODUCT-QUALITY Leader in the market.

 Ø Determining Demand:

1)    INCREASING FOCUS ON NATURAL PRODUCTS

       There is a growing demand for natural / organic products in most developed countries, a trend led by the evolved markets of the US and Western Europe. There is an increased preference for less synthetic, eco-friendly and natural products and packaging.

2)    RISE OF THE 'MASSTIGE' PRODUCT SEGMENT

There is a growing trend towards the so-called 'masstige' products which are premium brands sold at lower prices through mass distribution.

·        To reach greater distribution, prestige and premium brands are taking the route of mass distribution.

·        The mass products and smaller players are catching up in terms of innovation and product quality, which prevents the big brands from charging a significant premium.

·        The recessionary macroeconomic outlook over 2008-09 has led to consumers shifting to the upper price band of mass products from the prestige segments. The ‘masstige’ products are priced at this price range.

(http://www.trefis.com)

 Ø Estimating Costs:  In October 2013, Revlon Consumer Products Corporation ("RCPC" and together with Revlon, Inc.)acquired The Colomer Group Participations ("Colomer") and disclosed that it planned to integrate Colomer's operations into the Company's business. The Company is now implementing these integration actions, as well as additional restructuring actions identified to reduce costs across the Company's businesses.

(http://biz.yahoo.com/)

 Ø Analyzing Competitors’ Costs,Prices & Offers:

      1.    Lakme- The Domestic Consumer business grew by 16% with 7% underlying volume growth.  Online shopping portals(Flipkart, VioletBag etc offering a discount of around 3%-5% in the cosmetics.

     2.    L’Oreal- The company has come up with offers like L’Oreal Paris Free Rouge Caresse, Beauty & Personal Care combo kits- MIN 20% OFF etc along with discounts ranging from 10%-50%.

 Ø Selecting A Pricing Method:

a)      Revlon’s overall pricing strategy is to market to a wide range of consumer’s with its product at a range of retail prices they can accept. 

b)    Their price strategy is consistent with the stage of the product life cycle the product is in. 

c)     They offer discounts in the form of coupons as a term of sales for their product.

 Ø Selecting The Final Price:

Revlon is a Brand with high relative Quality & high Advertising budgets and hence charge highest prices. It strives to be the market leader.

It offers the products ranging from the lowest price of around 150 INR to maximum 950-1000 INR.

Product Mix Pricing

§Product Line Pricing

 Under  “Mineral Lip Glosses” type in the Product Line “Revlon Lip Glosses”, there are a number of products available  listed at different prices.

Example: Revlon Street Wear Mineral Lip Gloss is priced at 315 INR, Revlon Street Wear Mineral Lip Gloss Coral Glow  is priced at 499 INR.

§Optional Feature Pricing

It’s a Non-Durable product  and so the appropriate strategy is to charge only a small mark-up and no optional feature is offered  to be charged. 

Though an optional price could be charged for shipping the product/ home-delivery on purchasing online.

§Captive-Product Pricing

The Lip Gloss is sold without the back-up of any captive product. Price is set up only for the Main Product i.e. gloss.

§Two-Part Pricing

The Price consists of only the Fixed-Fee for the main product(Lip Gloss).

There is No Variable Usage Fee associated with it.

§By-Product Pricing

The production of a Lip Gloss does not result in any By-Product.

As it is a kind of an organic product, they could charge more for the skin-friendly Ingredients contained in it.

§Product-Bundling Pricing

As the product is targeted mainly to the urban customers and is not so affordable to all. So, it is not sold in bulk or in a bundle like relatively low cost products targeted to masses.

Though, there is a possibility that a pairing could be done.

Example: Revlon Street Wear Mineral Lip Gloss+ Revlon Color Burst Matte Balm(new arrival!!)

This could be a strategy to promote the new product as women buying the gloss would not mind pairing it up with a Balm to keep their lips smooth and healthy. 

The Product Hierarchy

Product-Levels for Revlon Street Wear Mineral Lip Gloss

  Core Benefit: On buying a lip gloss, the customer is actually buying  Lip Care as well as Beauty. These can also be seen as the customer perceived values he/she enjoys after the consumption/use  of the product( here, Lip Gloss).

  Basic Product: To avail the Core Benefits mentioned above, a tangible product is required. The company thus introduces a basic product keeping in mind the requirements of the target customers.

      

Thus, targeting the young(working) women, street wear mineral lip gloss was launced by Revlon…. the brand name they could trust.

           Expected Product: After the Basic Product is launched in the market and is able to create a space for itself, the customers   buying the product link their expectations to the values offered     by the  product.

As Revlon mainly targeted the urban(working) women, they were more aware of the offered values and the expected values. The lip gloss was organic & lasted longer. Thus, meeting the customers’ expectations.

        Augmented Product: As the consumer gets used to the product,he/she starts expecting more from the product(modifications,improvements) and the values they enjoy.

Revlon Street Wear Mineral Lip Gloss, so far has come up with various variants like street wear mineral lip gloss: mulberry dip, street wear mineral lip gloss: sugar babe, street wear mineral lip gloss: coral glow etc.

      Potential Product: Innovation is the basic element to        developing any potential product. Competition drives any       company to develop or create a completely differentiated product.  Either the same company or its competitor can launch the potential product for the basic product. Examples: Revlon Colorstay Mineral Lip Glaze, e.l.f (eyes, lips, face)mineral lip glosses.

 Marketing Mix-Revlon Street Wear Mineral Lip Gloss

 Product

ü The product is available  at 315 INR(6mL).
 ü The product targets the urban women who look for a lip gloss that meets the Lip Care as well as the Lip Beauty requirement.
 ü It offers features like excellent staying power, wide range of shades to pick from, does not dry lips.
 ü Packaging is also a key feature for the customers to go for a product as acts as the face of the product.
 ü Revlon stands distinguished among its competitors as it offers a wider window of staying power( 5-6 hrs average) which is higher than most of other brands in the market.

Place

ü The product is designed mainly for the urban women. And, so it is available at the expensive cosmetic stores.
ü Also, the product marks its presence digitally. It can be ordered online easily(amazon, snapdeal etc).

Price

ü Customers expect “Value for Money” . Revlon as the renowned brand offers a high “Image benefit” to the customers.
 ü The product also provides Free Shipping to the online buyers as a Service benefit.
 ü The cost of the product is relatively high. So, not everyone can afford the product.
 ü It also offers a Lifestyle value to the customers. So, for the loyal customers product demand would be inelastic.   

 

     Promotion

ü As digital is coming a big way, it would be beneficial for the product to promote itself online across multiple platforms( online shopping portals, social networking sites).
 ü Since, Revlon Street Wear Mineral Lip Gloss is an urban women-centric brand, magazines like Femina, Vogue etc provide an excellent platform to place this product.
ü As the product also focuses on working women, it could also be promoted in shopping malls.