Financial Daily from THE HINDU group of publications
Thursday, Jan 31, 2002
Financial Daily from THE HINDU group of publications Thursday, Jan 31, 2002 |
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Marketing
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Strategy Corporate - Outlook Modi Revlon to take on Elle 18 with new brand Our Bureau
NEW DELHI, Jan. 30 MODI Revlon, the 74:26 joint venture between Modi Mundi Pharma and Revlon of the US, finally seems to be getting its act together. Six years after it stepped into the Indian market, the cosmetics major has charted a plan to take on arch rivals, Lakme and Maybelline, in the Rs 3,000-crore colour cosmetics and skin-care market. Mr U.K. Modi, Chairman & CEO, Modi Revlon, said that the company had projected a 50-per cent growth in its turnover and a market share of 26 per cent in 2002. It has projected a turnover of Rs 100 crore within three years. It intends to grow the market by restructuring operations in the cosmetics and personal care divisions with vertically split sales units and by tapping smaller towns. In the premium segment, Modi Revlon intends to consolidate its retail strength and increase the number of Beauty Advisors. Its ColorStay brand will drive growth in the premium segment, which will include fresh launches. In the Rs 1,200-crore skin-care segment, Modi Revlon would introduce a premium brand towards the year-end from its international portfolio, Mr Modi said, while declining to reveal the name of the brand. Modi Revlon's presence in the skin-care category has been restricted to Touch & Glow fairness cream.Meanwhile, the company intends to take on Lakme's Elle 18 with a new brand targeted at 17-22 year olds. The brand, to be brought in from the company's international portfolio, is expected to hit the domestic shelves later this year. To drive volumes in the mass segment, Modi Revlon will tap SEC B cities with its mini range. While the number of outlets retailing colour cosmetics will be increased from 3,000 to 10,000, distribution of personal care brands- Colorsilk, Charlie and Flex - will be increased from 8,000 to 25,000. "We also intend to leverage the distribution strength of group company, Win Medicare, for Modi Revlon products," Mr Modi said. The company's ad account has moved from Rediffusion to Grey.
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