MMS Assignment Completed Slide 27-01-2014

7/22/2019 MMS Assignment Completed Slide 27-01-2014

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Overview of Company

Revlon was founded in 1932 by Charles Revson, who revolutionized thecosmetics industry by introducing nail enamels matched to lipsticks infashion colors.

Over the years, Revlon has built a strong heritage in color and in novationand, today, has leading market positions in a number of its productcategories in several key countries around the world.

The Companys products are sold worldwide and marketed under such brandnames as Revlon, including the Revlon Color Stay, Revlon Super Lustrous,Revlon Age Defying, Revlon Photo Ready and Revlon Color Burst franchises;

Almay, Sinful Colors and Pure Ice in cosmetics; Revlon Color Silk in womenshair color; Revlon in beauty tools; Mitchum in anti-perspirant deodorants;

Charlie and Jean Nat in fragrances; and Ultima II and Gatineau in skin care.


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Natural vs. Organic cosmetics

Both natural and organic cosmetics consideringredients based on plants and animals sourcebut in case of organic cosmetics the ingredientshad their origin organically.

As per COSMOS (UK) standard at least 20% ofthe total product must be organic (cosmos)

whereasAs per National Organic Program regulation inUS, to use organic in the label of a product atleast 70% of the product must be organic.


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Market Summary

SWOT analysisProduct Offering

Distribution

Situation Analysis


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Market Summary : PESTLE Political : Basic raw materials used in the organic cosmetics like

cocoa butter, olive oil, jojoba, aloe Vera etc. often imported fromdifferent countries. Political issues and regulations in the importing

and exporting countries can affect the availability of these rawmaterials.

Economic :

UK: In UK, growth in natural & organic cosmetics market slowed to 8 %

USA: In U.S growth rate was only 2 %. Social: people are continuously attracted towards organic products.

half of the adults believe that natural cosmetics are better for skincarebeingree from chemicals whereas 17 million adults consider thesecosmetics as environment friendly

Situation Analysis (Cont)


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Technical: Innovation in organic cosmetics raises questions ofhealth safety for the consumers. technology is also playing importantrole in marketing of the cosmetics in general with virtual makeoverpossibilities

Legal:

UK: organic cosmetics should also adhere to EU REGULATION forCOSMETIC PRODUCTS- European Directive 76/768/EEC.REACH which mentions the chemicals to be or not to be used incosmetics.

USA: National Organic Program (NOP) regulation, 7 CFR Part 205

is the regulatory body for organic cosmetics (National organicProgram n.d)

Environmental: Organic cosmetics attract people for its eco-friendly ingredients. Animal testing has been banned both in UK andUS. Deforestation should be considered while sourcing the raw

materials.



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SWOT analysis


STRENGTHSConsumer attitudeRegulation

Brand Value

WEAKNESSESConsumer perceived value

OPPORTUNITIESMarket growth

Demography

THREATSCompetition


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Product Offerings

The product line will have the following 4 products:

1. Organic Glam cream based make up foundation

2. Organic Glam cream based 24hr lipstick

3. Organic Glam cream based eye shadow

4. Organic Glam voluminous mascara



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Distribution

Revlon sells its products through chemist shops likeWalgreens, super markets, cosmetics retailers etc.,

Walmart Stores is Revlons largest customer in USA while Bootsis the most important customer in UK

Organic glam products will also be sold through Revlonswebsite and in other online retailers like drugstore



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Objective

Target MarketPositioning

Strategies

Marketing Strategy


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Objectives1. Market share should achieve at least 5% in next 2

years.

2. As the focus is more on market share, profit is

limited to achieve break even in each of next 2 years.

3. Revlon should achieve a brand image of averagepriced good quality organic products.

4. The ROI for each of next two years is set as 10%

Marketing Strategy (Cont)


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Target marketsGeographic segmentation:

Europe: UK

North America: USA

Demographic



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Target marketsPsychographic

Behavioral



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Positioning: Based on this analysis a positioning map is plottedwith two dimensions as quality and price.



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Strategies

Product


Products Features

Organic glam

foundation

An organic ingredient like cucumber, sandal, and calendula gently protects the skinwith moisturizing effect.

Cream based formula from cocoa butter and jojoba oil smoothly spreads on the skin

giving a bright clarified effect. No paraffin used. Comes in 3 skin tone-wheat, dark and beige.

Organic glamlipstick

Organic ingredients like mango butter and virgin coconut oil keeps the lipmoistened and stays for long

Mild strawberry flavor Comes in 3 colors- light brown, sober pink, naughty red

Organic glameye shadow

Organic beeswax and cocoa butter moisturize and nourishes eye are Comes in stick for easy apply Plant and flower based 4 colors-light pink, dark pink, light green, dark green

Organic glam

mascara

Organic Shea butter moisturizes eyelashes and beeswax gives defined look.

Sweet almond oil nourishes the lashes Comes in two shades- black and deep brown


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Strategies

Price



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Strategies

Distribution



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Strategies

Marketing Promotion



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1.Define the problem

2.Develop the research plan

3.Collect the information4.Analyze the information

5.Present the finding

6.Make the decision

Marketing Research


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1.Define the problemDefine the problem: The marketing manager and

researcher agreed to define the problem about price, style,advertising color and how to use.

Set specific research objective: Now managementand marketing researchers are ready to set a specific researchobjective on their price, style, advertising, color and how to usecompare with other company of cosmetic.

Develop product and news market: Not only setspecific research objective company also develops their productand find market to get more and more customer also improvetheir brand.

Marketing Research (Cont)


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2.Develop the research plan : Data Sources Research Approaches :

Observation research Ethnographic research

Focus group Survey research Behavioral data Experimentation research

Researches Instruments Sampling Plan

Sampling unit Sample size Sampling procedure

Contact Method:



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3.Collect the information: For this step is use lot money and prone error

because if collect wrong figure make risk to company, So Revloncompany always carefully with this step to save cost and time foranalyze.4.Analyze the information:After get all reason and collect all data fromsurvey the market researcher enter all data to their system for analyzethe quality of their product, service and price compare with competitorcompany how it look like and how to improve more and more better for

weak point .5.Present the finding:When analyze the information ready the marketresearcher report to their marketing manager and general managerabout result their have survey and how to improve they style of

packaging, color and introduction of usage.6.Make the decision: Finalize of marketing research marketingmanager and general manager also whole company decide to createmore style of packaging, color and add the introduction step how to useproduct in box.



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IV. Conclusion The plan has been developed based on Revlons capability and

marketing research. Proper monitoring of the plan is needed tolaunch Organic glam successfully in the market.V. Recommendation

Previous research has shown that although the cosmeticscompany Revlon diagonals , however , there were somecosmetics company Revlon to be supplemented :

Cosmetics company Revlon should maintain stability of earningsand the profitability of its business to obtain a Profit , which mayincrease Their business anymore .

Cosmetics company Revlon to expand its business and profit to

increase its revenue everyEvery year . Cosmetics Revlon quality products to customers to rely on their

products .


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Reference BioFach (2011) Bird,Katie (2008)

Cosmetics business (2010)

COSMOS (2011) Cosmetic s organic and natural

Kotleret. al (2009) Marketing ManagementEdinburgh: Pearson

Marketing management (2010) Revlon and Maybellinecosmetics

Mintel (2010)

National Organic Program n.d

Shea By Naturen.d Common Cosmetics Raw material


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Documents

MMS Assignment Completed Slide 27-01-2014