Situation Analysis

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PROJECT 2

POINT OF PURCHASE
(POP)
PRODUCT : REVLON
GROUP 6
1. SITI ZULAIKA BT KHALED 1132702470
2. MAIZATUL MARDHIAH BT MD KAMAL 1132700889
3. NIK MOHD ASYRAF

1. PROBLEM STATEMENT

REVLON
lipstick

Lack
of
Market
Attention
Revlon
lipstick
is
an old product that was founded in 1932. Because Revlon in an old product we know
that currently there are many competitors that are providing cosmetic products aswell-as beautician services to women at high and low prices. And also lots of
competitor for lipstick brand. The existing of this product in Malaysia almost was not
recognizable by other because of lots competitor. There is not much attraction from
people since it lack of people attention thus to lack of competitors.
Now we have come out with new solution to promoting Revlon lipstick creatively by
using medium of POP glorifier. It is because Revlon lipstick comes in a small size and
we also believe that glorifier pop display should be a great idea to engage with all the
customer thus, will builds customers confident and brand loyalty.

2. PRODUCT AND SERVICE

Revlon Lipstick

Revlon is an American cosmetics, skin care, fragrance, and personal care


company founded in 1932. Revlon was founded in the midst of the Great
Depression, 1931, by Charles Revson and his brothers Joseph and Martin Revson
{105 years old today} along with a chemist, Charles Lachman, who contributed the
"L" in the Revlon name. Starting with a single product a new type of nail
enamel the three founders pooled their resources and developed a
uniquemanufacturing process. Using pigments instead of dyes, Revlon developed a
variety of new shades of opaque nail enamel. In 1937, Revlon started selling the
polishes in department stores and drug stores. In six years, the company became a
multimillion dollar organization. By 1940, Revlon offered an entire manicure line,
and added lipstick to the collection. During World War II, Revlon created makeup
and related products for the U.S. Army, which was honored in 1944 with the ArmyNavy "E" Award for Excellence.

For seven decades, women everywhere have indulged in the bold, luxurious
shades of our most iconic lipstick. Super Lustrous creates unforgettably
seductive lip color in four finishes crme, matte, pearl, and shine and is
available in 82 vibrant shades. The legacy lives on.

Product Description

Product Name

Juicy Papaya

Sorbet

Crme Brulee

Texture

Buttery Smooth

Buttery Smooth

Buttery Smooth

Product
Name

Sultry Samba

Black Cherry

Berry Couture

Product
Image

Product
Image

Texture

Matte

Matte

Matte

Product Classification

Consumer / Industrial

Consumer

Durability

Durable

Shopping Goods / Convenience


Good

Shopping Goods

Revlon Lipstick is classified as shopping good because that is the product


which customers able to compare and contrast with others before they make
any purchasing decision.

Product Characteristic

Capacity

2g

Category

Cosmetics

Price

RM 30.00

Unit Per Sale

Per Container

Revlon Lipstick for normal size is weight of 2g in a single container. It


includes in cosmetic category since it is in beauty product for woman and
where you can get with the price of RM 30.00 for each.

Distribution

Direct / Indirect

Indirect

Exclusive / Selective

Exclusive

Brand image and implication

Promotional History

The Company markets extensive consumer product lines principally priced in


the upper range of the mass retail channel and certain other channels
outside of the U.S.

The Company uses print, television and internet advertising, as well as pointof-sale merchandising, including displays and samples, and coupons and
other trial incentives. The Companys marketing emphasizes a uniform global
image and product for its portfolio of core brands. The Company coordinates
advertising campaigns with in-store promotional and other marketing
activities. The Company develops jointly with retailers carefully tailored
advertising, point-of-purchase and other focused marketing programs.

The Company also uses cooperative advertising programs, supported by


Company-paid or Company-subsidized demonstrators, and coordinated instore promotions and displays. Other marketing materials designed to
introduce the Companys newest products to consumers and encourage trial
and purchase in-store include trial-size products and couponing. Additionally,
the
Company
maintains
separate
websites,
www.revlon.com,
www.almay.com and www.mitchumman.com devoted to the Revlon, Almay
and Mitchum brands, respectively. Each of these websites feature product
and promotional information for the brands, respectively, and are updated
regularly to stay current with the Companys new product launches and other
advertising and promotional campaigns.

(These excerpts taken from the REV 10-K filed Feb 25, 2009.)

3. ABOUT REVLON COMPANY


HISTORY ABOUT REVLON COMPANY
Revlon was founded in the midst of the Great Depression, 1931, by Charles Revson
and his brothers Joseph and Martin Revson {105 years old today} along with a
chemist, Charles Lachman, who contributed the "L" in the Revlon name. Starting with a
single product a new type of nail enamel the three founders pooled their
resources and developed a unique manufacturing process. Using pigments instead of
dyes, Revlon developed a variety of new shades of opaque nail enamel. In 1937,
Revlon started selling the polishes in department stores and drug stores. In six years,
the company became a multimillion dollar organization. By 1940, Revlon offered an
entire manicure line, and added lipstick to the collection. During World War II, Revlon
created makeup and related products for the U.S. Army, which was honored in 1944
with the Army-Navy "E" Award for Excellence.
By the end of the war, Revlon was listed as one of America's top five cosmetic houses.
Expanding its capabilities, the company bought Graef & Schmidt, a cutlery
manufacturer seized by the government in 1943 because of German business ties.
This acquisition made it possible for Revlon to produce its own manicure and pedicure
instruments, instead of buying them from outside supply sources.
1950s
From the glossy magazine pages of the 1950s sprung one of the most talked-about
beauty campaigns of all time for Revlons Fire & Ice lipstick and nail enamel.
During a time when exotic foreign actresses, like Brigitte Bardot and Ingrid Bergman,
were dominating popular culture, the Revlon campaign showed the American woman
that she could be as compelling and glamorous in everyday life as any starlet on the
silver screen.
1960s
In the 1960s Revlon flipped the conversation, bringing the American Look to the rest
of the world through advertising featuring U.S. models.
1970s
The 1970s ushered in a new wave of feminism. Revlon was there, mirroring womens
progress with the development of new products. The brand added face and eye
makeup to its lines.
In 1973, the brand announced what would become the #1 fragrance in the world:
Charlie. Over 40 years later, the perfumes youthful sophistication is still sought after
by women of all ages.
1980s
The 1980s marked a period of transition for the brand, leaving department stores to
become one of the top mass-market beauty brands. At the same time, Revlon

partnered with some of the worlds most unforgettable women, including Iman,
Claudia Schiffer, Cindy Crawford and Christy Turlington.
1990s
Revlon debuted its ColorStay collection in the 1990s. Featuring Brand Ambassador
Halle Berry, the line soon became the #1 long wear brandand has remained so ever
since

2000s
The millennium brought a bold new influence to Revlon when world-renowned makeup
artist Gucci Westman joined as Global Artist Director through April 2015, pushing the
brand on the forefront of trend and fashion.
In 2011, talented and style savvy movie stars Emma Stone and Olivia Wilde joined the
long list of inspiring, beautiful women who call themselves Revlon Brand Ambassadors.
REVLON MISSION STATEMENT
To be well known and accepted as the high value provider by constant innovation and
improvement in products to keep pace with the changes in consumer lives.
REVLON VISION STATEMENT
Revlons vision is to provide glamour. Excitement and innovation through quality product
at affordable prices.

CUSTOMER RELATIONSHIP MANAGEMENT


Revlon lipstick are using youtube, Instagram, Facebook and twitter to promote their
product. For now, if customer having an inquiries about their product, the can be straight
away via phone and email. The details can be obtained in their official corporate website.

CURRENT MARKET OBJECTIVE


Revlon lipstick aims to launched a new Revlon ultra HD lipstick product to customer. They
can choose the 20 variation of color that suits them.

4. RECOGNIZING THE CURRENT CUSTOMER


DEMOGRAPHICS
Age
Gender
Education
Occupation
Income range
Race and Ethnicity
Geographic location

20-50 years old


Female
Secondary or higher graduate
Student, White or Pink Collar Worker
RM 900 RM 2500
All race
Urban

PSYCHOGRAPHIC
Perception
Learning
Motivation
Attitude
Personality
Lifestyle

What does the smile means without


beautiful lips? Itss nothing.
Friends
To gaining self-confident
Always wanted to be sexy, bold and
vibrant
Outgoing
Socialize

STAKEHOLDERS CHARACTERISTICS
Primary
Secondary

Consumer, Shareholder, Executive,


Employee
Supplier, General Public, Advertising
Agency,
Government

5. UNDERSTANDING THE INDUSTRY


The Beauty of Beauty Industry - The Malaysian Insider; 14 April 2014
It could be the gorgeous young woman with flawless skin promoting the "magic"
anti-ageing cream on billboards, or the leggy supermodel cat walking on a high
heeled designer shoes for a magazine photoshoot.
It could also be the curvaceous K-pop idol curving (or curveting) on your television
screen or the face of the plain Jane who had lost some kilos after a treatment at a
slimming centre posted in your Facebook page.
The truth is these days physical beauty is paraded and idolised. One cannot escape
this yearning to appear immaculate, prompting a desperate desire in many,
especially among the fairer sex, to pursue a beautiful face and the dream figure.
Undeniably, this craving is what has been feeding and nurturing the ever flourishing
beauty industry all over the world.The Beauty Company, a UK-based consultant
company on brand and product strategy, concluded in its research that the beauty
industry has been the most consistent throughout the economic downturn
and recovery cycle.
A local beauty industry practitioner Selina Goh, in concurring with this finding, said
"it is an industry that is less affected by the economic cycle".
The Glow Exhibition Management Project Director said beauty has become a
necessity for most people to the extend that some women could not even leave
their rooms without make up, and men too were actually grooming themselves.
"In addition to that, nowadays people are living a hectic life and therefore massage
and spa services are seen important in rejuvenating the body and looks.
"The spa business is getting more and more competitive that one just need to walk
through any row of shops nearby to find at least one, or two, spa or beauty salon,"
she said.
Goh stressed that the industry, which is associated closely with health and wellness,
is developing fast globally. In staying concurrent, local beauty professionals
are urged to catch up in terms of latest developments in the industry and
skills.

Local cosmetics

Meanwhile, in the cosmetics department, Malaysians spend an estimated RM1.6


billion annually on cosmetics, with skin care products being the most purchased
item. (Statistic provided by Asia-Pacific Cosmetics and Toiletries Market Overview
2010).
Quoting the official portal of Malaysia External Trade Development Corporation
(Matrade), the total market for cosmetics was valued at RM321.2 million with
imports of cosmetics and toiletries accounting for 72.3% of the domestic
consumption in 2012.
Amid the large number of imported cosmetics and toiletry products circulating the
local market, established brands from Europe and US emerge as favourites among
Malaysians.
However, Goh said local cosmetics brands have been steadily gaining the
public's trust. She pointed out that many of Malaysian cosmetics manufacturers
have been exporting their products to countries as far as Europe, Australia and
China.
"It shows that we do have manufacturers who are doing fairly well. Their brands
have reached a standard that they can now compete with foreign products.
"I'm sure if a product is very effective, plus with good packaging and branding,
people would not mind buying even if it is a local product," she said.
The beauty industry has a huge potential as a revenue earner and thus it is
time for Malaysia to boost its participation in the sector. Bernama, April 14, 2014.

http://www.themalaysianinsider.com/features/article/the-beauty-of-thebeauty-industry#sthash.SMV6xbvI.dpuf

6 . RECOGNIZING THE COMPETITIVE SITUATION

a) Identifying competitors :
Competitors such as AVON lipstick cosmetics which have the similar
design like the Revlon Lipstick. Without proper supervision , there will
be a confusing in product between Avon and Revlon Lipstick.
b) Competitors market share :

Avon has a
womans
are
always
as
high

c) Their Product

medium to large share in


market where the woman
acknowledge this product
quality product.

Features :

The Eid Raya 2009 limited edition Avon lipstick Promotion

d)Their new product :

e) Their position :
Avon in Malaysia is known for a long time and quite easy to find in
Malaysia. With the technology nowadays, mostly of Malaysians already
favouring this product rapidly.

f) Current and past advertising campaign :


Their current campaign is Campaign 18 2015 . The campaign is
mainly about be your self and let the inner beauty shine. However their
past campaign is unrecognizable since the campaign is so many and
always changing.

g) Media expenditure :
There is no estimated and approximate numbers but their media
expenditure is quite large which lead to successful in promotion.

7. SWOT ANALYSIS

STRENGTH
1. Product sold in over 100 countries
across six continents.
2. Cosmetics trendsetter of cosmetics
and personal care
3. Strongest consumer brand franchises
in the world
4. Good quality products

WEAKNESS
1. Many players in the market restrict
market share
2. Brand penetration is mostly in the
cities
3. Focused on a certain group of people.

5. A global brand name with association


with many international celebrities
6. Own a strong position in beauty
industry

OPPORTUNITY

THREAT

1. Sponsors and supports many events related


1. Lots of local competitors
to Women's health and care
2. Changing preferences of customers
2. Strong investors relation and networking\
3. Products are consistently consumed - less
effected by economic cycle

8. IDENTIFYING STRATEGIC MARKET AUDIENCE

Our target audiences are general publics and especially to teenagers


and young adults between 16 to 35 years old due to the affordable
price and because at this stage they starting to realize the importance
to take care of beautiful lips. The vibrant varies of lipstick color also
could attract mostly teenagers because as what we research ,
teenagers love something which is cute and colorful. As for overall, we
are targeting for trendy woman that we described as being in-the-know
and always searching for the next greatest thing.

9. COMING OUT WITH SOLUTION


Revlon possesses such a strong brand name worldwide, and has no issues in brand
recognition. Regardless, beauty industry is growing rapidly thus more and more
competitors are taking over customers' preference. Revlon need to prioritize
existing strength markets, in order to sustain as the world's choices.

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