Sales Management: Revlon

Sales management is attainment of an organization's sales goals in an effective & efficient manner through planning, staffing, training, leading & controlling organizational resources.

The Recruitment of a Sales Management team is the first and the foremost task for any company. It could be said as the most crucial task too as Sales determine the Top-Line of any company and Sales ultimately decide the fate of any company.

Revlon follows the 3 recruitment tasks that are used in Sales Management:

 ü  Job Analysis: It is performed to specify the type of work a salesperson is supposed and expected to perform on a daily basis.

 ü  Job Description: It consists of the general information about the job:

1. Title of job

2. Organizational relationship

3. Types of products and services sold

4. Types of customers called on

5. Duties and responsibilities related to the job

6. Job demands

7. Hiring specifications

 ü  Job Qualifications: It is the most difficult part of the process. This is because hiring affects the status of the company in the market. So, it Revlon follows a set of attributes for hiring within each Sales job within the company.

Personal Selling

The direct oral communication designed to explain how an individual’s or firm’s goods, services, or ideas fit the needs of one or more prospective customers.

 It comes under the Promotional techniques of Marketing. Revlon follows this approach to directly reach its consumers, interact on one-on-one basis with them to know them and their requirements as well as expectations from the brand or any particular product.

Adya, Sales Manager, South, West and Sri Lanka – Revlon

Sustainable Marketing: Revlon

Sustainable marketing is the process of promoting products that are environmentally safe at the retail level and pushing a company's commitment to sustainable practices at the public relations level. It applies traditional marketing techniques but in a specific context. This category of marketing seeks to capitalize on the increased value consumers place on eco-friendly products and companies that have a perceived commitment to sustainability in its production.

In this way, business analysts consider sustainable marketing to have a triple bottom line, resulting in benefits to the customer, the environment, and the corporation.

 ü  In recent times, Revlon has gone through all sorts of downsizing, de-layering and restructuring in the ultimate bid of combating and/or overcoming its financial quandary. Therefore, it will be more rewarding for the company to concentrate on products and markets that are sustainably profitable instead of looking out for a route of escape into an entirely new business.

 ü  The first and important step for Revlon to take is to strategically position the company in a way that the organizational mission and goals will be accomplished. Thereafter, it can then diversify.

           INCREASING FOCUS ON NATURAL PRODUCTS

 ü  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.

 ü  With Revlon’s Social Cause: PETA(People for the Ethical Treatment of Animals) STOP ANIMAL TESTING Revlon has sent the message that “beauty doesn’t have to come with an ugly side."

 ü  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.

Analyzing Business Markets & Consumer markets: Revlon

Revlon is one of the world’s leading skin care manufacturer with its products physically manifested in various countries of the world.
Revlon reaches its consumers in two ways:

• B2B2C(Revlon->Retailers->Consumers)

• B2C(Revlon->Consumers)

 ü  Revlon's market share expanded from 2.9% in 2012 to 3.2% in 2013. Forbes has forecasted revenues from color cosmetics to outpace overall market size growth till the end of our forecast period.

 ü  EBITDA margin for Revlon declined from 21.6% in 2012 to 19.2% in 2013. Forbes has currently forecasted Revlon's Color Cosmetics EBITDA Margin to increase marginally to reach 20% by 2020.

 ü  Revlon's hair care market share expanded from 0.44% in 2012 to 0.66% in 2013.  Trefis expects to see a strong addition in sales in 2014, resulting from the full year addition of TCG's hair care product sales and have a market share estimate of approximately 1.41%. Post 2014, we expect Revlon's hair care market share to increase marginally and reach 1.45% by 2020.

Revlon sells predominantly through large mass retailers and chain drug stores such as Wal-Mart, Target, Sears, Walgreens, Rite Aid, CVS and Longs Drug Stores in the US, with Wal-Mart making up about 24% of the company's net sales.

International Markets

ü  SECOND LARGEST MARKET SHARE IN COLOR COSMETIC IN US: 18% of the global market size and commands over 20% share of the US market in color cosmetics.

ü  TCG(The Colomer Group) adds close to $530 million in revenues to Revlon's core business, taking the total to $1.9 billion in 2013.

ü  Revlon , derives 43% of revenues from international geographies.

On the basis of revenue, Revlon ($1.4 billion revenues) is much smaller than L'Oreal (at $30.5 billion), Avon ($10 billion) and Estee Lauder ($10.4 billion), therefore Revlon has less money to spend on marketing, an extremely important factor for success in the cosmetics industry.

Analyzing Consumer Market

ü  Consumer Characteristics:

There would be more or less mostly the Personal characteristics of the consumer that would drive her(mostly) or him to go for a purchase of any personal care product from Revlon.

ü  Psychological Processes:

Motivation- The people around, if have used the product in the past and are satisfied with it or its services, then it’s a possibility that they would praise the product recommend it to their friends.

Perception- The consumers’ own perception about the product or past experience with the product could be a factor in driving the person to buy the product.

Memory: Any top of the mind recall or any blur image of the product in mind could also be a reason in any product purchasing decision.

ü  Buying Decision Process:

Ø  Problem Recognition

Ø  Information Search

Ø  Evaluation of Alternatives

Ø  Purchase Decision

Ø  Post Purchase Behavior

ü  Purchase Decision:

Product Choice- Hair Care, Lip care, Skin Care etc

Brand Choice- Revlon, L’Oreal, Lakme etc

Dealer Choice- Which store to choose to get the best quality product at the best price?

Purchase Amount- Setting the limit to the expenses

Purchase Timing- Deciding the occasion of purchase

Payment Method- Deciding on how to make the payment(On Cash/On card)

Branding- Revlon

Revlon is a brand sold in approximately 175 countries and territories. “The company thinks Global, but acts Local” in India. The manufacturing standards of Modi-Revlon are as exact as elsewhere in the world.  The toughest Quality standards in line with the global norms are followed.  The products advertising features international celebrities and super models.

Revlon has grown 65 per cent to strengthen its share to 13 per cent.

·        Revlon also 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.

·        REVLON BRANDING CAMPAIGN INCLUDES:  Television & In-Theater ; Internet; Print & Outdoor.

·        In the 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."

·        With Revlon’s Social Cause: PETA STOP ANIMAL TESTING Revlon has sent the message that “beauty doesn’t have to come with an ugly side."

·        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.

Segmentation: Revlon

    a)     Firstly, they segment the market on the basis of their Gender:

·        For men

·        For women

Both the genders are different in their attitude as well as their behavior when it comes to any purchase-decision. Where women tend to be more emotional and communal-mined, men tend to be straight-forward and goal-oriented.   

  b)     Secondly, the market is segmented on the basis of income-levels and Life-style. Revlon segments the High-Level Income people further into 2 sub-segments and targets only those segments. They are:

·        Upper-Middle Class, and

·        Posh or Premium Class

c c)    Lastly, Revlon segments the above 2 segments into 3 sub-segments depending upon Age:

·        Young

·        Middle, and

·        Early old Age people

Targeting: Revlon

     ·     As said before, the buying decision of men and women is differ from each other. Thus, Revlon uses different Advertisements for targeting both men and women.

     ·   Secondly, because at present Revlon is targeting only the people with a High-Income Level for selling its cosmetic products….it believes that if they start targeting Middle and Lower Class also, then it could affect their already set customer base.

    ·      Revlon uses the Need-Based Market Segmentation approach as all segments are not useful at all times. Hence, they decide the right segment at the right time for targeting.

    ·     As Revlon has a complete market specialization in cosmetics in their respective market. So, they use their previous experience to target their customer segments.

Positioning- Revlon 

    ·    Revlon has always used top models, and actresses in order to promote its products i.e. Cindy Crawford, Selma Hayek and Halle Berry to create an aspiration among its target customers( High Class Women who can afford these products).

   ·     Revlon’s principal customers include large mass-volume retailers and chain drug stores, as well as certain department stores and other specialty stores such as perfumeries. The company sells cosmetics and skin care products to fulfill specifically consumer need, principally priced in the upper range of the mass market.

   ·  Revlon objective “In our factory, we make lipstick. In our advertising, we sell hope.” reflects a strong Emotional connect with its customers and a sense of Trust for the brand.

     ·     Revlon positions itself in the market on the Stage of GLAMOUR.

    ·    Revlon Unveils Breakthrough Advertising Campaign; Featuring 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.