Modi-Revlon – Value Proposition Essay Example

while only wealthiest 2% of Indian women can afford the 15ml at its current price of Rs. 85. Marketing research showed a lower frequency of Indian cosmetics usage as well as the higher preference of Indian women for color experimentation.This finding makes the smaller 8ml bottle an attractive alternative for the 15ml.

It is unlikely that Revlon can compete against Lakme’s vast distribution network, so Revlon should continue focus on differentiating its outlets to make them truly special places for cosmetics experience. Keeping the outlets level at around 3,000 like in 1996, Modi-Revlon can achieve growth four or five coming quarters in 1998 and 1999 (Exhibit 1).Data show a direct correlation between lack of media advertising and decrease in Revlon’s sales (Exhibit 2) Assumption and Uncertainties: The calculations are based on anticipated growth of 10% per year. The launching of the smaller bottles is based on Revlon’s projection of selling 1 million units if the 8ml by 2000, with only a 3.

1% reduction in existing 15ml sales. Action Steps: Modi should lower the price of Revlon’s products, specifically, the price of the 15ml nail enamel bottle from Rs. 5 to Rs. 79.

Revlon should also start launching the new shades and colors in both 15ml and 8ml bottles. An evaluation after one quarter, based on sales of each type of bottle, will determine whether Revlon should continue to apply this strategy to the whole products line. Also, in first two quarters, Modi-Revlon has to increase media coverage of its product 30% of total media spend in cosmetics sector (roughly half of Lakme’s), with future target to be comparable in term of products’ media coverage.