Product Situation Analysis

REVLON SUPER LUSTROUS LIPSTICK 1

Plansbook for Revlon Super Lustrous Lipstick
Mariah Gonzales
December 2013
Linfield College

Product Situation Analysis
The Company
The Revlon Inc. company began in 1930 when Charles Revson introduced opaque and
long-lasting nail enamels to the makeup industry (Revlon Inc., 2013; & Gale Business Insight
Essentials. 2012) Revlon sold nail enamels to beauty salons and drug and department stores. In
1932, Charles Revson and his brother Joseph teamed up with Charles R. Lachman, a nail polish
supplier to crate the Revlon cosmetic company (The Leahman Brothers Collection, 2012).
During World War II, Revlon produced and donated first-aid kits, dye markers and hand
grenades to Americas Armed Forces. At the end of the war, Revlon became one of the United
States top five cosmetic companies due to its increased popularity of its good-quality products.
In the early 1940s Revlon became Revlon Inc. after buying a cutlery manufacturing company
called Graef & Schmidt. Using the cutlery materials, the Revlon brothers and Lachman were able
to expand the nail line and produce instruments for manicures and pedicures. After WWII,
Revlon saw a considerable amount of popularity due to the companys involvement with the U.S.
military. The company saw its sales double due to many products sold (e.g., nail enamel and
lipstick). To accumulate more earnings, Revlon began advertising on television to reach more
substantial audience. In 1956, Revlon Inc. was listed on the New York Stock Exchange as a
public company. In 1980, the Revlon brothers sold the company to MacAndrews &Forbes
Holdings. Revlon Inc. became the number one cosmetic company in having the most color
cosmetics due to the release of Color Stay lipsticks in 1990.
Today, Revlon Inc. sells a variety of cosmetic and skin care products, fragrances,
deodorants, womens hair color and beauty tools. Revlons company profile on Standard &
Poors Industry Surveys website states that Revlon Inc. also has subsidiaries (e.g., Almay,
Mitchum deodorants, Ultima II and Gatineau skin care). The Lexis Nexis Revlon Inc. company
profile (2013) says that Revlon Inc. distributes their products to 100 companies. Revlon Incs
mission statement on its website states that their mission is to produce affordable and good-
quality products that promote Glamour, Excitement and Innovation for the companys
consumers.
The Revlon 2012 Annual Report states that the company strives to (i) build our strong
brands; (ii) develop our organizational capability; (iii) drive our company to act globally; (iv)
pursue growth opportunities; and (v) improve our financial performance. Revlon Inc. did well
in the 2012 by meeting the above goals. In 2012, the company increased net sales by one-third
from $1.381.4 billion in 2011 to $1.426.1 billion. The same year the company released several
new products to help increase its profitability. Revlon Inc. still abides by this strategy for 2013,
with the example of the new release of its Revlon Color Stay Whipped Makeup.
Revlon Cares, a corporate social responsibility program, supports the awareness of breast
cancer. It is partnered with other corporations that work to create awareness for breast cancer as
well as fund major research organizations, such as the National Breast Cancer Coalition and
Revlon/UCLA Womens Cancer Research Program (Revlon Inc., 2012).
The Product
Product Description and Positioning
Revlon Inc. promises that Revlon Super Lustrous Lipstick is moisturizing. The
moisturizer will seal in the lipstick color and create an even spread of the color over the lips. The
website also states that the product keeps lips soft and smooth with its creamy texture (Revlon
Inc., 2013).
The product also won a variety of 2012 Beauty Awards in the U.S., including Allures
Best Lipstick Dark Shade award and Allures Readers Choice Awards Best Drug Store
Lipstick, Teen Vogue Readers Choice Award Best Lipstick. It also won awards overseas in
2012, such as New Zealands Women Weekly Best Lipstick and South Africas Seventeen
Magazines Best Lipstick. The plethora of wards won in 2012 alone suggest that the product is
well-known and used frequently in the United States and in other countries where Revlon Inc.
distributes its products (Ennis, 2012).
The product, along with the Super Lustrous Lipgloss and New Complex One-Step
compact Makeup, were widely advertised in Revlons Bellisimo campaign in 2004. The
campaign featured spokes-models Hallie Berry, Eva Mendes, Jaime King and Julianne Moore.
The television ad conveyed the products to be sensuous and seductive by the portrayal of the
spokeswomen in seductive attire. The products were also conveyed as useful to every-day wear
by showing the women, dressed in seductive clothes, participating in the daily acts, such as
drinking coffee and riding a bike. Overall, the ad, which can be found on YouTube, sends the
message that the products will make women feels and look sexy during everyday activities
(Garfield, 2004).
In addition, Emma Stone is also a spokesperson for recent television ad for Revlons
Super Lustrous Lipstick. During the advertisement, Stone voices features of the product, which
include the lipsticks moisturizing quality and its 82 colors. Dont hide behind your lipstick,
Stone says. Use it to show the world how you feel. And today I feel daring. This quote
suggests that there is a lipstick shade that will match every one of a womans variety of moods.
The ad implies that the consumer should be daring enough to try the lipstick, which suggests
that the product will make her feel audacious and sexy (Revlon, 2013). There are many lipsticks
that are claimed to be moisturizing, while also portraying the message that they make women
feel seductive or glamorous. However, the wards mentioned earlier help make the products
claims credible. This also helps to distinguish the lipstick from other lipsticks that are positioned
in a similar way. Also, Revlon Inc.s use of well-known and respected spokeswomen adds to the
products competitive positioning. Not only are the ads for the lipstick sending a seductive and
daring message, but they are also showing the audience that they can be sexy, confident and
beautiful just like the familiar and well-known spokeswomen, while wearing the product.
Revlon uses the spokes people in many of the companys ads for the various cosmetic
products as seen above. Because the company sticks with the strategy of featuring well-liked
spokeswomen this creates brand familiarity among Revlon customers. And customers distinguish
Revlon products through the use of the companys consistent spokeswomen, who include Olivia
Wilde, Emma Stone and Halle Berry (Reynolds, 2011). For instance, a female who sees the TV
commercial for Revlon Super Lustrous Lipstick featuring Emma Stone may go out and purchase
the product because it is a product she wears occasionally or consistently. Also, spokespeople
can add to the products credibility.
From previous personal observations, the price of the lipstick ranges from $4.99 to $7.99
in stores, including Target, Wal-Mart, Walgreens and ULTA.
Product Sales
Revlon Super Lustrous Lipstick ranks number two in the top 10 lipstick products in sales
for 2013. The lipstick hit $12.6 million in sales in a 12-week period that ended on June 16, 2013.
At the start of the 12 weeks, Revlon Inc. released 10 new lipstick shades for the product, which
helped to boost products sales within those 12 weeks (Alexander, 2013). Similarly, the products
sales reached $3.7 million in 2012. A similar 12-week trial was also conducted in the summer of
2012, but instead the trial ended on Aug. 12. Overall, the 2012 lipstick sale were 4.9 million. But
the article does not say if Revlon Inc. released any new promotional features for the product like
the company did during the 12-week trial in 2013. However, this article does show that the
lipstick ranked number two in the top 10 leading lipstick brands in 2012, as in 2013 (Chain Drug
Review, 2012). The sales from 2012 to 2013 trial periods include drugstores, mass market
retailers, supermarkets, military commissioners and some elect clubs and dollar retail chains
(MarketLine Industry, 2012).
Revlong Inc. holds 23.5 percent of the cosmetic market share, which is the second largest
portion in the cosmetic industry. LOreal holds the majority of the share in the cosmetic industry
at 55.1 percent (MarketLine Industry, 2012).
The Market
Current Customers
Revlons new spokesperson Emma Stone who is 25 years old, according to IMDB.com
(2013), which suggests that Revlons current audience is females in their twenties. However, the
magazines that have given awards to the product all target female audiences at various ages. For
instance, Seventeen Magazines website says that it targets young adults and college-age
females. The Teen Vogue website says it targets teenagers. Allure targets audiences ranging
from young-adults to middle aged, stylists, make-up artists and beauty experts. In addition, New
Zealand Womens Weekly magazines website features a variety of articles on parenting, health,
home, fashion and food, which suggests that this magazine is aimed at middle-aged consumers,
specifically mothers and anyone with similar interests. Also, since the above magazines each
gave the lipstick a product award, this indicates that Revlon Inc. has advertised the lipstick with
the magazines, and the company targets females of the various age ranges mentioned above,
whom the magazines also target.
In addition, the majority of YouTube (2013) reviews for Revlon Super Lustrous Lipstick
are done by females. Also, judging by appearance, the female reviewers age range is between 20
to mid 30s. The female reviewers state that the best or their favorite lipstick shade(s). Most of the
reviewers also say that the lipstick is good-quality, moisturizing and long-pasting drugstore
product. Some also state that the price of the lipstick is cheap or reasonably priced. These
reviewers are consumers of the product, which suggests that Revlon Inc.s target audience is
women in their 20s and 30s.
Product SWOT Analysis
Strengths
Revlon has a broad range of cosmetic products sold in more than 100 countries. This has
helped the brand to establish itself as one of the strongest global cosmetic companies. Revlon
Inc. has won various awards, including the 2010 Best Executed Launch Strategy award for the
companys Just Bitten Lipstain and Lip Balm ads from Womens Wear Daily magazine. The
company also works to facilitate customer recalls, invest in new markets and preserve and
strengthen existing markets. These aspects contribute to maintaining the companys strong brand
image (Revlon Inc. SWOT Analysis, 2012).
Another aspect that contributes to Revlons brand image is that the cosmetic company
has been around since the 1940s (The Leahman Brothers Collection, 2012). This suggests that
the target audience is familiar with Revlon because they were born after the 1940s.
Weaknesses
Revlon lagged in 2011 sales in comparison to its rival companies. The rival companies
and their annual sales include Procter & Gamble ($81.1 million) and Estee Lauder Companies
($8.8 million). In contrast Revlon Inc. recorded an annual $1.3 million. Among the above global
competitors Revlon Inc. makes the least per year, which means that tits operation are on a
smaller scale. The smaller scale creates a lack of bargaining power (Revlon Inc. SWOT
Analysis, 2012).
Opportunities
There has been an increase in the counterfeit products, meaning products that are not of
good quality and products that are produced by privately owned companies. An estimated 23
percent of global consumers are not brand loyal. Some people who are not brand-loyal customers
during an economic downturn could be more likely to by products that are cheap and that are not
of good quality, than products that are better quality, but have a higher price. The Intellectual
Property Rights Seizure Statistics by Customs and Border Protection Office of International
Trade states that perfume, cologne and health and personal care products make up 7 to 15
percent of the counterfeit goods in the U.S., which negatively affects the branded product sales.
Thirty-eight percent of consumers think that counterfeit products and private cosmetic labels are
better alternatives to brand-name products, where a 20 percent disagree. Such percentages are
from Datamonitors consumer survey power (Revlon Inc. SWOT Analysis, 2012).
In addition, there have been recent reports and studies that show that there are toxic
metals in lipsticks (Stevens, 2013). And the generalization that all lipsticks have toxic metals can
hurt Revlons image. This can also cause lack of sales in Revlon lipsticks. Lipsticks do contain
some type of metals, but Revlon lipsticks contain an FDA approved formula (Cosmetic Info,
2013). However, the idea of metals in lipsticks may still affect the sales of Revlons lipsticks.
Target Market Report
Primary and Selective Demand
The products overall category is lipstick. And there is a primary demand for affordable
lipstick. In lipstick reviews on YoutTube, the reviewers discussed their favorite drugstore
lipsticks from companies like LOreal and Revlon. And Revlon Super Lustrous Lipstick is a
commonly reviewed product. Also, as I learned from my research for the Product Situation
Analysis, the products process at different drugstores ranges from $4.99 to $7.99. Revlon
ranked number two under LOreal for the most bought lipstick within two 12 week trials. One
trial was held in 2012 and the other in 2013 (Chain Drug Review, 2012 & Alexander, 2-13). This
indicates that Revlon Super Lustrous Lipstick has high selective demand among consumers who
want to buy good-quality lipstick for an affordable price.
The Target Market
According to the research I did for the Product Situation Analysis, the target market fo
Revlon has been females ages 20 to around 40. I want to widen the age range of this target
market to include females who are in the mid-age range, including women in their 50s and 60s.
Most women in their 50s and 60s, and sometimes older, wear make-up including female
celebrities and other women like my grandma who is 63 and her girlfriends (Shah, 2013 &
personal interview 2013).
Revlons advertisements typically display younger women who are in their 40s and
below. However, targeting women ages 20 to 60 will show that lipstick is for women young and
old. Revlon Inc. has been producing and selling lipstick since the 1950s. Since the companys
lipstick has been around for over 70 years, it would be appropriate to extend the age group. This
also suggests the possibility that women in their 50s and 60s are familiar with the Revlon brand
and lipsticks.
Also, because the product is mainly sold at drugstores, this suggests that the target
audience is lower-middle to upper-middle class. Reaching females in such economic classes with
the products price ranging between $4.99 and $7.99 is reasonable, considering the lipsticks
good quality and well-known reputation among its consumers.
The women in the targeted age range will be heavy to medium users of makeup. For
instance, heavy users would be women similar to YouTube cosmetic reviewers. I observed that
reviewers usually wear a full face of makeup (e.g., foundation, power, concealer, bronzer, blush,
eye shadow, eye liner, mascara, lipstick, lipgloss, etc.). Medium users would have characteristics
similar to those in the focus group. My focus included women ages 18 to 60. Many of these
women stated that they wear makeup depending on their mood, if they are going out and on what
they are wearing for the day. These women also like to look presentable in public, and wearing
makeup daily (five to seven times a week) helps them achieve this. They will also wear more
makeup, such as lipstick, on special occasions. Therefore, the target market would include
women who buy makeup for their own self-benefit. Many of my subjects are not brand loyal and
will try different cosmetics based on a products features. However, I found that a few of them
are loyal to their foundation brand that any other type of cosmetic brand. They also look for for
makeup products that cost under $20. However, getting medium users of cosmetics to buy and
try out the lipstick could help convert them to heavy users, especially if they like wearing color
(Survey Monkey, 2013).
The three groups from VALS framework I chose are innovators, experiencers and
strivers. The medium and heavy users of my target market described above all wear makeup,
which indicated that they are concerned with their appearance and like to look presentable and
fashionable as people do in these categories of from the VALS framework. The target market
may range in fashion sense and style, but they all share the quality of having good physical
presentation. I will also target medium to heavy cosmetic users who enjoy shopping, which
matches the experiencers and strivers categories. I will also target those who enjoy showing self-
expression in their wardrobe, and most importantly with makeup they wear. Such characteristics
are found in innovators and experiencers (Strategic Businesses Format, 2013).
Many reviewers from YouTube (2013) stated that they liked Revlon Super Lustrous
Lipstick because it is moisturizing and has long-lasting color. In addition, these are features that
the target market desire in a lipstick (Survey Monkey, 2013; YouTube, 2013). Since the product
holds such features it is appropriate to advertise the lipstick to this target market.
Advertising Objectives
Three main objectives for my advertising campaign:
1) Primary goal: Hold current customers and convert other users to the Revlon Super
Lustrous brand
a. Users are defined as targeted audiences, as explained earlier, ranging from 20s to 60s.
b. Hold present customers by reminding users to buy.
2) Secondary goal: Enhance the brand image.
a. We want the brand to be recognized as dependable, reliable and good-quality lipstick
for the target market. The image I want to build is that no matter what stage one is at
in life, she is beautify or can feel beautiful and youthful.
3) Tertiary goal: Communicate products quality and dependability.
a. Reiterate affordable price of product, features and quality.
Creative Brief
Revlon Inc.s Revlon Super Lustrous Lipstick will be the product featured in the
advertisement. The ad should show that lipstick is a product for women of many ages that can
help females be confident and comfortable in their own skin. The three objectives of the ad are to
keep current customers while converting others to the advertisers brand, enhance the brand
image and promote the products quality and dependability.
The ad must be distinct from Revlons past advertisements and other cosmetic brands
advertisements. A new approach should keep current consumers buying the lipstick, while
gathering interest from the ads target audience. This should influence the audience to try the
lipstick and to also convert new users of the product.
The secondary goal is to enhance the brand image. This will be accomplished by showing
the target audience that the brand does not discriminate based on age. By extending the targeted
audience, Revlon Inc. wants the brand to be recognized as a consistent, reliable and good quality
brand for the target audience age range. The goal is to remind females that age is not a factor in
looking and feeling beautiful.
The tertiary goal of the ad is to promote the lipsticks quality and dependability. Many
consumers want a lipstick that is affordable, moisturizing and a long-lasting color. The Revlon
Super Lustrous Lipstick has such features. The ad should reiterate and promote these desired
features of the consumers. The ad should also address the lipsticks variety of colors.
The target audience of the advertisement will be middle class females who are medium to
heavy users of affordable good-quality makeup. The audiences age range is 20 to 60-years-old.
The women who were surveyed in my focus group were in this age and class range. The majority
of the females from the focus group share the desires of wanting affordable, good-quality and
smooth and moisturizing lipstick. Therefore, it is appropriate to market this product to this age
group. The focus group only consisted of women in the U.S., so we will begin marketing to the
targeted audience on a national level.
The ad should also target females who enjoy shopping, understand style and like to look
presentable. Such women in my focus group mentioned that they wear make-up to enhance their
look, features, style and mood. Some wear lipstick occasionally and some wear it once or twice a
week. It is important that the ad shows that lipstick can be worn more than occasionally.
The product fits consumers requests of price, quality and color because it already has
these qualities. However, the lipstick should be defined as a product that can be used for women
in the targeted age range to enhance their beauty on a daily bases. Revlon is a cosmetic-line that
works to create affordable and quality beauty products. And cosmetics are meant to enhance the
beauty of womens facial features. Enhancement of the facial features can make women feel
confident and attractive. Therefore, the ad should engage women by making the tone confident
and modestly daring. In this way the targeted females will feel as if they are being spoken to on a
personal level.
The ad should portray that the main benefit women will get from the lipstick, which is
that it will provide women with a feeling of attractiveness and confidence. Other feelings that
can also be included in the portrayal of the benefits in the advertisement are young, pretty,
beautiful and outgoing. One piece of evidence that backs up the promised benefits is that there
are a variety of colors to match ones skin tone, mood or outfit for any occasion. Also, the
moisturizing lipstick can provide pretty, soft, smooth and kissable lips. Therefore, the ad should
show the lipsticks variety of colors. Also, the ad should reveal that women can have
moisturized, smooth, colorful and kissable lips by using the lipstick. Overall, the ad should make
a woman feel like she can be her own unique character. But, the ad should also portray women as
they are realistically, so that the target audience can relate.

Creative Concept
I created a rough for the magazine advertisement for Revlon Super Lustrous Lipstick.
This advertisement will run in all three magazines I have chosen to reach the broad spectrum of
the target audience. The advertisement displays four women: one of which is in her twenties, one
in her thirties, one who appears to be in her forties and one who could be in her fifties or sixties.
Each woman is supposed to appear as relatable to an average woman at the above various
ages. The idea is that the target market sees themselves in these women who are displayed in the
advertisement. It is important to note that the models used in the actual ad will not be celebrities.
The ad portrays the message that a woman of any age can look and feel beautiful and confident.
And Revlon Super Lustrous Lipstick can enhance ones beauty. The headline for the ad states
Lustful Lips at Any Age. The idea of lustful lips plays off the viewers desire to maintain or
play-up her outer look by enhancing her facial features using cosmetics. And the lips are one of
the womans features that can be highlighted lightly or dramatically with lipstick.
The ad communicates a benefit under each of the four photos of women: colorful,
kissable, moisturized and smooth. These benefits stem from the lipsticks features,
including the 72 colors of the lipstick, and its good-quality and moisturizing formula. These
features are not directly communicated in the advertisement. The idea is that a woman will see
the benefits and want to experience them for herself, and so she purchases the product.
Media Plan
Media Objectives
Audience Objectives
To reach middle-class women ages 20 through 60-years-old who are medium to heavy
users of affordable good-quality make up. I will advertise the Revlon Super Lustrous Lipstick
through diverse mediums that also target the same or similar target markets. However, some
media may not target the exact age range as my target audience; therefore, I will advertise
through various mediums so that I can reach all ages in my target market.
Message Distribution Objectives
I am going to advertise to the target market on a national level. I will need to reach
approximately 100 million middle-class women in the U.S. Each individual will be exposed to an
advertisement 9 times over the course of the three month campaign. To advertise nationally is
appropriate because Revlon Inc. in an older, well-established cosmetic brand in the U.S. The
campaign would begin in the spring because it is a time when the weather is warming up and
women will be buying lighter clothes for the spring and summer months. This is an appropriate
season to advertise a variety of brighter lipstick colors associated with the warmer months.
Spring begins on Thursday, March 20, 2014 this year. Therefore, advertising would begin March
1 and last through May 31. Advertising right before spring, as the weather is warming up, will
instill in the audiences minds that lipstick can be a part of their spring and summer accessories
as they get ready and shop for the warmer weather.
Media Strategy
Classes of Media
The campaign will use magazines. Revlon advertises frequently in magazines, therefore,
it is an appropriate class for my print advertisements. Magazines also have audience selectivity,
which means that the magazines I choose will reach audiences within the target market. In
addition, magazines have reader loyalty and permanence which mean readers who are brand
loyal to the magazines I choose will be able to read the magazine multiple times and analyze the
ads. Another pro is that magazines have extensive pass-along readership, which will allow my ad
to be seen by more people than just the magazines loyal readers. Each magazine will cover a
portion of my target audience.
The campaign will also use broadcast television. I will advertise on this media class
because according to a Nielsen study (2013), people with an income level between $30,000 and
$75,000 watch the most primetime television on broadcast TV. Therefore, it will be convenient
to advertise during primetime, because the income of my target market falls within this income
range. In addition, another Nielsen study (2012) shows that females watch more primetime
television then males.
Media vehicles to use in the campaign
I will use three different national beauty and style magazines advertise the lipstick. The
magazines are Cosmopolitan, InStyle and More. InStyle has a wide rage range of female readers
from ages 18 to 50 plus. Cosmopolitan is a popular magazine among women in their twenties to
late forties. But mostly females 18-34 read the Cosmopolitan (McKay). This magazine will help
to reach younger female audiences, whereas, InStyle will reach audiences over 40. More
magazine targets middle aged women, even though they have some younger readers. The
average reader is 53 according to the magazines website. This magazine will reach females 50-
plus in my target market.
The network I will use for my commercial advertisement is ABC. According to the ABC
website, the network targets women along with families and other markets. Since both these
networks have women, it is an appropriate vehicle for reaching the target. ABCs main prime
time audience was 65 percent female (Cupri, 2013). There are also several ABC shows that are
popular among women, including Scandal, Suburgatory, Nashville, Revenge, Dancing with the
Stars and The Bachelor/The Bachelorette (Consoli, 2013).

Size/length of ads
The size of the print ad will be one page in full color. The commercial will be a 30
seconds long. I want the message of the commercial advertisement to be quick and clear.
Positioning of ads
The magazine ads will appear on the back cover, because research shows that this cover
receives the most viewership (Suh, 2013). I want the ad to receive as much exposure as possible
in each magazine.
The commercial will air three times a week on the chosen broadcast TV network at the
beginning of each hour during primetime.
Schedule of insertions:
The print advertisement for the lipstick will be published once a month in the three
chosen magazines between March and May. So each ad will be published a total of 3 times in
each magazine.
The commercial will appear in a bursting pattern. The commercial will run on ABC three
nights a week (Monday, Wednesday and Thursday), once at the beginning of every hour during
primetime (8 p.m., 9 p.m. and 10 p.m.) every week for three months.
Budget:
Media
Vehicle
Ad
size/length
Cost per
insertion
Number
of
Total cost
for
Audience
size (or
CPP
insertions schedule rating)
Cosmopolitan 1 $169,00 3 $507,000 2,900,000
x 3 =
8,700,000
$169,000
/ 2,900 =
CPM
InStyle 1 $238,300 3 $714,900 2,269,00
X 3 =
6,807,000
$238,
300 /
2,269 =
105.02
CPM
More 1 $233,840 3 $701,520 1,300,000
x 3 =
3,900,000
$233,840
/
1,300 =
$179.87
CPM
ABC
primetime
on
Mondays
(hourly)
30 seconds $106,180 36 $3,822,480 12,170,000
X 36 =
438,120,000
$106,
180/
12,170 =
$8.72
CPM
ABC primetime
on Wednesdays
(hourly)
30 seconds $137,964 36 $4,966,704 6,598,000
x 36 =
237,528,000
$137,964
/ 6,598 =
$20.91
CPM
ABC primetime
on Thursdays
(hourly)
30 seconds $167,246 36 $6,020,856 6,180,000
x 36 =
222,480, 000
$167,246
/
6,180
=
$27.06
CPM
Totals $16,733,460 917,535,000

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