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Marketing and Operations

 

 

 

I.                   Introduction

Marketing is the lifeline of our profit. Even the best products will produce no significant amount of profit unless it is supported by active marketing campaigns. In the face of modernization and globalization, the look of new marketing activities has experienced considerable changes. According to Philip Kotler, (2000), from the viewpoint of marketing, the world is shrinking with the appearance of various new communication, transportation and financial channels. Products developed within a single country like Gucci wallet, Mount Blanc pen, McDonald’s Hamburger and German’s BMW get tremendous welcome from consumers of other nations. Not many people will get surprised anymore to hear that a German businessman is wearing an Italian suit when meeting his English friend in a Japanese restaurant and then come home to drink Russian vodka and watch an American opera on TV.

In short multinationals are controlling the world. The only marketing efforts that is considered as real marketing today is global marketing, a marketing campaign that is performed well outside the boundaries of the product’s home market. Companies have been performing international marketing efforts for some decades now. Nestle, Bayer, Toshiba and Sony has been recognized by most consumers of the world. Small companies who operate only in small areas within its little province must now compete with global brands to survive.

In light of these phenomena, I am choosing the product of a company that has a considerable presence not only in the United Kingdom, but also throughout the globe. In this paper I will elaborate the marketing campaign of Revlon and how it effected its presence in the global cosmetics industry. In order to provide more focus to the elaboration and analysis, I will focus on one of Revlon’s latest product line, the Revlon Skinlights that has been launched since 2002, but still preserving its marketing activities until today.

 

II.                Proforma-A (Purpose of promotional Activity)

II.1.     Description of the Promoted Product

The product’s name is Revlon Skinlights ™ Face Illuminators. It is Revlon’s revolutionary newest product line. The product created a new mass-market cosmetics category, skin brighteners. The launch of the product was considered the biggest new product launch since the Colorstay line. It promotes the ‘Skinlights experience’. Kristin Patrick Petersen, the VP Brand Exposure of Revlon stated that the Skinlights experience adds dimension to the Revlon brand and providing them with the chance to have direct interaction with consumers and educate them further about Revlon’s product lines.

The Revlon Skinlights range comprise of three product lines, which are: moisturizing lotion, loose powder and eye glossing. However, there have been talks to extending the Revlon Skinlights rage to include lip gloss. The moisturizing lotion is in the shape of 50ml ‘pump applicator tube’, while the loose powder is in the form of 21-gm container. The three products will be available in three shades each.

 

II.2.     Key Attributes of the Product

Revlon Skinlights Face Illuminators uses color and natural light capturing crystals to crate luminous look to the skin. The product is designed to enhance the look of the skin. The product does not ‘covers’ the skin and it can be used both as a replacement of traditional foundation or an addition to it. Because of its natural ingredients, like rose quarts, the product will not have the look and feel of a make up. The product also contains SPF 15 that prevents future wrinkles

The product line consists of three levels of skin brighteners. Consumers can choose which color that will create a good color match with the skin. The product is packaged within a unique tube, some with a pump that squeezes out the product and some other provides a white brush for application. The product has an appealing sent which makes it pleasant to apply.

 

II.3.     Marketing Tools

The launch of the product will use cross-marketing promotion with other with other companies, for instance, Revlon.com. The launch is a nine-day event together with the Sundance Film Festival in Park City, Sundance, Salt Lake City, and Ogden, Utah (USA). The company was taking advantage of the Sundance Film Festival to magnify the power of their promotion campaign. Revlon created a lounge that was open for all visitors. The lounge will provide them the chance to sample the new Skinlights product line. With a background of a roaring fireplace, world class treat of food and drinks, massage services combined with Revlon Skinlight’s exclusive consultations, the Sundance Film Festival was also a tremendous ground for Revlon Skinlights introduction to the community and to the world (Revlon, 2007).

 

 

Executive VP and General Manager of the Revlon Brand Equity group stated that Skinlights is a product that demands a special way of introduction to the public. She believed that the best way to introduce the product is by providing information by means of offline and online promotion. Furthermore, she believed that partnership with In Style is also crucial to help the company achieve the goals of the introduction.

The marketing campaign also consists of a five city coast-to coast tour to promote the Skinlights makeup collection. The marketing campaign was designed to introduce women with the Skinlights experience by means of an interactive environment where women can sample and learn about the unique benefits of the product. The introduction of Skinlights includes free product sample and free makeover by Revlon makeup artist. The service was given under the Revlon tent, to provide a peaceful environment where women can sample the Skinlights experience. The promotion activity also includes giveaways, like the opportunity to win sweepstakes or a grand price of a trip, or a day of a full beauty service in the local spa or beauty center (Revlon, 2007).

 

II.4.     Message Promoted

The marketing campaign of Revlon Skinlights focuses on a single concept, which is the introduction of the ‘Skinlights experience’ to consumers. The ‘Skinlights experience’ is the range of services from free beauty consultation to complete makeover by Revlon makeup artist within a comfortable location set up by the marketing team in target areas. The activity has the single purpose of creating a secure and comfortable environment where consumers can sample the product and feel the maximum benefits of the product line personally rather than seeing it on TV or magazine. The soul of the product image is to promote the youthful and fresh look for women by luminous face and bright skin.

 

II.5.     Media Chosen

The marketing campaign of Revlon Skinlights Face Illuminators was described as a multimedia marketing promotion. The media used for the marketing campaign are:

Television advertising and national print campaign
The Skinlights product line will be featured by full-spread advertisements in numerous fashion magazines. Working together with its cross-marketing partner, In Style, Revlon launched print advertising campaign that will be published in several editions of the In Style magazine. Along with the promotional campaign, these editions also featured the magazine’s editorial coverage regarding the Sundance Film Festival, which is considered a prestigious style and fashion event. The new product line was also introduced by television advertisements around the globe (Revlon, 2007).

Online Marketing
Different with Revlon’s launches of previous products, the Skinlights Face Illuminator was also promoted through the extensive use of the internet. First, corporate official website was working together with the official website of In Style magazine to provide information and advertisement of the Sundance Film Festival as well as the values within Revlon’s new product. Second, in order to promote the product launch, sweepstakes and microsite, Revlon will perform a three week campaign of e-mail marketing together with In Style (Revlon, 2007).

 

II.6.     Targeted Customer Segment

Skinlights cosmetic has the purpose of returning bright and youthful looks on women’s faces. The targeted consumer for the product is ranging from 24 to 35 year-old women consumers.

 

II.7.     Communication and Outcome

Communication lines to get feedback of the marketing campaign are maintained through several channels. However, the most popular one is the internet. The company provided customers with online facilities to express their opinion about the product line as well as the marketing campaign. It could also pay attention to public opinions through internet polls and blogs.

The intended outcome of the project is to introduce a new generation of Revlon’s product line, and allow consumers to get to know the product better. Managers of Revlon stated that Skinlights is an entirely new category of skin brighteners which is expected to give the company its fresh cash flow from sales of the new product segment.

Consumers said many good comments about the product. Some mentioned that even though the product was designed for facial use, it is also great to cover small scars on hands or legs. Another advantage of the product is the fact that there are not many products on the market the resembled the product. Thus, Skinlights has the advantage of a head start compare to other products. With the right amount of usage, Skinlights can transforms women’s face and hide imperfections. The product is perfect for the summer because it creates a youthful glow and its soften the skin’s lines.

 

III.             Proforma-B (Effectiveness of promotional Activity)

III.1.   Marketing Outcome

The promotion campaign to introduce the new Revlon Skinlights has achieved some portion of its determined target. Cosmetic users are made aware of the presence of the new product. The new line also has the advantage of being one of the first of its kind and gain attention of the market. Despite these positive remarks, in terms of financial performance, Revlon is having a rather declining financial performance. In 2003 however, there is a slight increase on operating performance that displays betterments after the introduction of Skinlights.

 

III.2.   Research Methods

The research method is using a secondary data which is extracted from other polls and surveys. It is both quantitative and qualitative in nature. It is quantitative because it takes account of opinions of numerous consumer of the product and it is qualitative because it allows each surveyor to express their feelings about the product.

 

III.3.   Purpose

.           There are several types of purposes in evaluating the marketing strategy of a company. The purpose of this particular research is to determine the awareness of target segment regarding the presence and the qualities of the product.

 

III.4.   Conclusion and Review

The research indicated that there is significant awareness of the market toward the Revlon Skinlights Face Illuminator. This is indicated by the existence of various stated opinions regarding product performance. However, judging from the number of opinions stated, the awareness of the product is lagging behind the senior products like the Revlon Colorstay. This conclusion is based on existing qualitative data obtained through the internet for the short period of the last several years. Thus, there is significant possibility of changes in the recent future.

 

IV.             Proforma-C (Impact of the Promotional Activity to Organizations Operations) 3

The marketing endeavor represented a new and more aggressive marketing strategy. Below is the changes resulted from the Revlon Skinlights marketing campaign.

 

 

IV.1.   Sales Activities

The promotion of ‘Skinlights Experience’ includes Revlon’s national tour in effort of promoting the Skinlights makeup collection. The tour provides people with free makeovers and product samples. Furthermore, for an even more appealing promotional tour, Revlon took a picture of each consumer makeover and uploaded them into the internet.

 

IV.2.   Account, Billing and Receivables

The product launched was a retail product, thus, there is little room for credit trade. Receivables manage by the company are sales to large department stores and beauty centers. Revlon Skinlights Face Illuminator is one of many product lines. Within the annual report there is table containing a list of Revlon’s products and the division responsible for the product’s marketing programs. The product promoted by account executives that have the job of providing customers with sample as well as services guided by the Skinlights experience.

 

IV.3.   Customer Information Processing

Compare to other companies, Revlon has a good sense of awareness toward the importance of information management. Revlon acknowledged that eighty percent of a company is intellectual capital, and thus, marketing intellectual capital at Revlon is larger than its business. The company has a far better image in the market and toward its customer compare to what is displayed within its financial reports.

Because the company has a good understanding toward the importance of intellectual capital, they added a further $US 30 million into the advertising budget. They believe that spending more money on advertising is no a waste of money because it provides the company with possibility of future profits. Managers at Revlon believed that everything gained by the finance department is owed to the marketing department

 

IV.4.   Distribution and Marketing of other Products

The promotion of Revlon Skinlights Face Illuminator along with other product line did not stop at the introduction and preliminary launch events, the promotional activities are followed by series of routine and non-routine programs. One of the routine programs was recruiting beautiful movie starts to become Revlon spokesperson and the face of Revlon in TV and printed commercials, like Halle Berry and Julianne Moore. Another example of the routine marketing initiatives is giveaway programs. Revlon generally provide gifts of free movie passes, DVD and free beauty service in a famous beauty center and spa.

Example of the non-routine program is the promotional partnership with MGM to support a James Bond movie ‘Die another Day’. The intention within the collaboration is to create a global marketing campaign by means of the global appeal of the movie. The promotion activity included online component, in-store promotion, advertising support and public relations support. The project was also reasonable because Halle Berry, Academy Award winning actress and the latest spokesperson of Revlon was starring the movie.

 

IV.5.   Operational Design Changes

In the later years of Revlon however, the company has been having a slight of problem maintaining their sales number. In the light of this development, Revlon has been rethinking their whole strategy of marketing campaign. Managers of Revlon decided not to create another product line for some time in the future. Instead, they intend to focus on new way to push previous products’ sales by means of renewing marketing efforts with more tactical measures including out- or in-store efforts (Shermach, 2005).

In terms of in store efforts, the company is trying to provide customers with enhanced chopping experience for the mass channel. The stores are changing in format in order to allow consumers to experiment on Revlon’s products by guidance of retail’s beauty advisor. Furthermore, the beauty advisors also have the role of disseminating samples and information to Revlon’s customers (Shermach, 2005).

 

IV.6.   Target Fulfillment

The financial indicator revealed that the introduction of Skinlights provide the company with additional operating revenues after a year of promotion. Nevertheless, the additional revenues are comparatively small compare to existing operational expense and the losses in previous year. The 2005 revenues however, displayed a better performance compare to the previous years. This is the result of the new marketing campaign performed to enhance the popularity of all of the previous products.

 

V.        Discussions of Marketing Results and Conclusions

According to the marketing theory, companies would be more successful in selling their products if they have a thorough understanding on consumer’s psychology. In the theory of marketing psychology, it has been widely recognized that consumer never wanted to buy products or services. Consumers wanted solutions to their problems, answers to their needs and pathways to fulfilling heart desires. Therefore, it is crucial for marketers to understand the needs and wants of consumer prior to designing any marketing campaign. Afterwards, all the marketing endeavor should be directed to address the needs and wants of consumers Witt, 1999).

In the light of marketing campaign performed by Revlon to promote its Skinlights product line, the company has displayed considerable understanding toward the psychology of marketing. Its marketing campaign was designed to promote the Skinlights rather than offering mere products. However, several analysts also stated that Revlon have great brands but they are not well communicated or supported (Revlon, 2003).

This is in contrast to the corporate effort of not sparing any expenses when it comes to marketing. Revlon’s marketing team displayed considerable support toward marketing’s value. The company displayed that there was a market value for its intelligence and expertise. The marketing campaign on the other hand, resulted enhancement of customer awareness toward the product and slightly enhances product sales which has been declining for the last couple of years.

Appendix

Example of Product Line Questionnaire

 

 

 

 

 

 

 

 

 

 

(‘Customer Engagement’, n.d)

 

Revlon Growth Plans

UNAUDITED QUARTERLY GROWTH PLAN CHARGES (1)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Total

2003
2002
2003
2002
2003
2002
2003
2002
2003
2002
Impact of growth plan charge on net sales
$6.00

$9.50

(3.80)

(7.40)
$75.10
$4.30
$75.10
Impact of growth plan charge on cost of sales


-1.2

0.1

2
17.7
0.9
17.7
Impact of growth plan charge on selling, general and administrative expenses
5
$0.80
6.3
$1.50
9.3
$2.60
5.4
6.5
26
11.4
Impact of growth plan charge on operating income
11
0.8
14.6
1.5
5.6
2.6
0
99.3
31.2
104.2
Impact of growth plan charge on depreciation & amortization


1.6

0.5

0.6
0.8
2.7
0.8
Table 1

Revlon Growth Plan

Available at: http://www.Revlon.com/search

 

 

REVLON, INC. AND SUBSIDIARIES
UNAUDITED GEOGRAPHIC NET SALES DETAIL
(dollars in millions)

As Reported
%

2006
2005

Europe (1)
$54.80
$46.50
17.80%
Latin America
33.1
28.7
15.30%
Asia Pacific & Africa
58.5
58.6
-0.20%
International
146.4
133.8
9.40%
United States
159.5
141.5
12.70%

$305.90
$275.30
11.10%
(1) Includes Canada.

Table 2

Revlon Geographic Net Sales Detail

Available at: Available at: http://www.Revlon.com/search

Bibliography

 

‘Customer Engagement Survey Plan’. n.d. Retrieved from http://www.ezquestionnaire.com/support/CustomerEngagementSurveyTips.pdf

‘Revlon Announces a Planned Promotional Partnership with MGM to Support the 20th James Bond Film ‘Die Another Day’. 2007. Retrieved February 2, 2007 from http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=105&STORY=/www/story/01-18-2001/0001406776

‘Revlon Annual Report 2002’. 2003. Revlon. Retrieved February 2, 2007 from http://www.revlon.com/search

‘Revlon Annual Report 2003’. 2004. Revlon, Retrieved February 2, 2007 from media.corporate-ir.net/media_files/NYS/REV/reports/ar_03.pdf

Shermach, Kelly. 2005. ‘Marketing’s Intellectual Capital Generates More Money from Revlon’. Commerce Times. Retrieved February 2, 2007 from http://www.ecommercetimes.com/story/planning/45556.html

Witt, Gary Austin. 1999. ‘How to Increase Your Sales Using a Psychological Marketing Strategy’. MPG. Retrieved February 2, 2007 from http://www.marketingpsychology.com/psychmktprobpge.htm
 

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