The Rs 100-crore Modi-Revlon Ltd has charted out new marketing plans to spur volumes of its ‘Revlon’, ‘Street Wear’ ‘Liquid Lip’, ‘Lip Glide’ and ‘Lip Gloss’ lip colours across the country. In the segment, Revlon competes with L’Oreal which has grown by one per cent in the lip colour segment, as per the AC Nielson study.
According to Modi-Revlon Ltd chairman and president UK Modi: “To start with, we are planning to beef up our distribution network for Revlon lip colours, Liquid Lip and Lip Glide from 1,000 stores to 2,500 stores along with subsequent increase in beauty advisors at new stores by the end of 2007.
With the move, Modi-Revlon hopes to garner a volume growth of 40 per cent of Revlon lip colours, compared to the volume growth of 30 per cent garnered during the previous corresponding period. At present, Revlon has a market share of 28.6 per cent in the lip colours segment and our aim is to grow the market share to 30 plus within a year, he added.
“To achieve the market share and sales target for 2004, our basic strategy is multi-fold. We have introduced a complete range of glossy lip colour products priced between Rs 100 and Rs 400. The move is in sync with the emerging trend in the lip colour market where there is more demand for technologically innovative products—such as Liquid Lip, Lip Glide and Lip Gloss—with glossy endurant which we have already launched. This has in fact helped us grow the market share,” explained Mr Modi.
Modi-Revlon Ltd is also planning to foray into direct-marketing activities which are scheduled to commence from October 2004.
As part of the strategy, the company plans to provide Revlon products to its two lakh women customers through direct- marketing activities.
According to Mr Modi: “We are also in the process of revamping our fragrance strategy and that of hair colours. The objective behind the move is to spur volumes and counter the grey market. Every year, we invest 30 per cent of our sales turnover in implementing new marketing initiatives and this year too, we are planning to invest the same amount.”