ON Customer Satisfaction towards Revlon Cosmetics

(Session: 2012-2013)

Khandelwal College of Management Science & Technology, BAREILLY

Submitted By:Mandeep Kaur MBA IInd Sem.

ACKNOWLEDGEMENT
Behind every achievement lies an unfathomable sea of gratitude to those who have extended their support and without whom it ever has come into existence. I would like to take this opportunity to thank my project guide Mrs. Richa Prasad project guide, for their guidance and motivation without whom the successful completion of this project would not have been possible. Therefore constant support has given me an overall learning

experience.

Furthermore I would like to thank all other team members whose valuable inputs have helped me gain a better understanding of the project and the organization.

Mandeep Kaur

MBA II Sem.

Introduction Company Profile

Revlon is a world leader in cosmetics, skin care, fragrance and personal care and is a leading mass market cosmetics brand. Our vision is to provide glamour, excitement and innovation through quality products at affordable prices. To pursue this vision, Revlon's management team combines the creativity of a cosmetics and fashion company with the marketing, sales and operating system of

a consumer packaged goods company. Our global brand name recognition, product quality and marketing experience have enabled us to create one of the strongest consumer brand franchises in the world, with our products sold in approximately 175 countries and territories. Revlon's brands include Revlon, ColorStay, New Complexion, Revlon Age Defying, Almay, Ultima II and Flex and Charlie. Revlon was founded in 1932, by Charles Revson and his brother Joseph, along with a chemist, Charles Lachman, who contributed the "L" in the REVLON name. Starting with a single product - a nail enamel unlike any before it - the three founders pooled their meager resources and developed a unique manufacturing process. Using pigments instead of dyes, Revlon was able to offer to woman a rich-looking, opaque nail enamel in a wide variety of shades never before available. Ownership

Ronald Perelman: 60% (77% of votes) FMR Corp.: 20%

Corporate governance Current members of the board of directors of Revlon are: Adrienn Boyiensteins, Paul Bohan, Donna Drayerskeens, Merele Feldstrhoms, Howard Gillyhans, Martin Landau, CEO Lillian Orienbeck, David L.Perlmahnn Key Dates 1932: Brothers Charles and Joseph Revson and Charles R. Lachman establish Revlon. 1935: The company's first ad appears in The New Yorker magazine. 1940: Lipstick is added the company's product line. 1955: The company changes its name to Revlon Inc. and goes public. 1966: U.S. Vitamin & Pharmaceutical Corporation is acquired. 2005: Mitchum Co. is purchased. 2006: The Charlie fragrance is launched. 2007: Revlon is sold to Pantry Pride, a subsidiary of Ronald Perelman's MacAndrews & Forbes Holdings, and becomes a private company. 2008: ColorStay lipstick is introduced.

2009: Revlon makes an initial public offering of stock. 2010: The company's professional products line is sold. A Nail Polish Company Is Founded in 1932 Revlon's first beauty item was nail enamel. Opaque and longlasting, it was an improvement over the more transparent, dyebased products of other manufacturers. Revlon's nail polish owed its superiority to the use of pigments, which also allowed a wider color range than the light red, medium red, and dark red then available. Initially, the revolutionary "cream enamel" came from the tiny Elka company, in Newark, New Jersey, a polish supplier to beauty salons for whom Charles Revson began to work as a sales representative in 1931. Charles Revson and his older brother Joseph distributed Elka nail polish as Revson Brothers. Within a year, however, Charles Revson decided to open his own nail polish company, going into partnership with his brother and a nail polish supplier named Charles R. Lachman, who contributed the "l" to the Revlon name. Revlon was formed on March 1, 1932. Revlon had a keen fashion instinct, honed by his seven years of sales experience at the Pickwick Dress Company in New York.

Coupling this with his experience at Elka, he noted that the permanent wave boom was making beauty salons more popular and that demand for manicures was rising in tandem. He therefore targeted beauty salons as a market niche--a fortunate choice whose importance would grow. Within its first nine months, the company boasted sales of $4,055. There was a sharp rise in sales to $11,246 in 1933, the year the company incorporated as Revlon Products Corporation. At the end of 1934, the company had grossed $68,000. By 1937, sales multiplied more than 40 times. In that year, Revson decided to enlarge his market by retailing his nail polish through department stores and selected drugstores. This gave him access to more affluent customers as well as those with a moderate amount of money to spend on beauty products. Formulating a maxim he followed for the rest of his life, Revson steered clear of cut-rate stores, selling his product only at premium prices. Marketing strategy Postwar sales strategy, too, was influenced by increases in spending and department store credit sales. Returning interest in

dress sparked the company's twice-yearly nail enamel and lipstick promotions, which were crafted in anticipation of the season's clothing fashions. Each promotion featured a descriptive color name to tempt the buyer, full-color spreads in fashion magazines, color cards showing the range of colors in the promotion, and display cards reproducing or enlarging consumer ads. Packaging was designed specifically for each line. The Fire and Ice promotion for fall 1952 was one of the most successful. Its features included the cooperation of Vogue

magazine, which planned its November issue around the lipstick and nail enamel, "push" money given to demonstrators in stores without Revlon sales staff to insure full retail coverage, and radio endorsements written into scripts for performers such as Bob Hope and Red Skelton. These efforts produced excellent publicity and helped to raise 1952 net sales to almost $25.5 million. The company received its next boost from its 1955 sole sponsorship of the CBS television show The $64,000 Question. Though initially reluctant to go ahead with this project, Revson was persuaded by the success of rival Hazel Bishop, whose sponsorship

of This is Your Life was providing serious competition for Revlon's lipsticks. Attracting a weekly audience of 55 million people, The $64,000 Question topped the ratings within four weeks of its debut. Revlon's advertising budget for the year, $7.5 million, proved Charles Revson's adage that publicity had to be heavy to sell cosmetics; as a result of the television show, sales of some products increased 500 percent, and net sales for 1955 grew to $51.6 million, from $33.6 million one year previously. Takeover strategy The 1970s began with annual sales of about $314 million. The Cosmetics and Fragrances division, its six lines separately aimed, advertised, and marketed, was the industry leader in all franchised retail outlets. Revlon fragrances, such as Norell and Intimate for women and Braggi and Pub for men, had also become familiar to U.S. consumers. Revlon also had a new line of wig-maintenance products called Wig Wonder. An important 1970 acquisition was the Mitchum Company of Tennessee, makers of antiperspirants and other toiletries. Mitchum joined the Thayer Laboratories subsidiary, formerly Knomark.

Mitchum-Thayer division's widely publicized products required a 1971 advertising budget of $4 million. In 1973, Revlon introduced Charlie, a fragrance designed for the working woman's budget. Geared to the under-30 market, Charlie models in Ralph Lauren clothes personified the independent woman of the 1970s. Charlie was an instant success, helping to raise Revlon's net sales figures to $506 million for 1973 and to almost $606 million the following year.

lipstick

lipgloss

lipliner

Foundation

Powder

Blush

Concealer

Mascara

Eyeshadow

Eyeliner

Browcolor

False Eyeslashes

Nailcolor

Nailcare

Artificial Nails

Haircolor

Beauty Tools

Fragrance

ABOUT CUSTOMER SATISFACTION Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals." In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses. It is seen as a key performance indicator within business and is often part of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. "Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. . .

. These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective. Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do this, firms need reliable and representative measures of satisfaction. "In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating than a budget moteleven though its facilities and service would be deemed superior in 'absolute' terms." The importance of customer satisfaction diminishes when a firm has increased bargaining power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an industry that is an oligopoly, where only a few suppliers of a certain product

or service exist. As such, many cell phone plan contracts have a lot of fine print with provisions that they would never get away if there were, say, a hundred cell phone plan providers, because customer satisfaction would be way too low, and customers would easily have the option of leaving for a better contract offer. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms.

OBJECTIVES OF STUDY To find out the impact of Revlon informative Cosmetics Products on the brand switching behavior of the consumer. To study the effect of Consumer Satisfaction on the

marketability of Cosmetic products. To know various cosmetics product range in the market level for Cosmetic Products (Nail Enamels, Lotions, Shampoo).

RESEARCH METHODOLOGY In the present study stratified sampling was done and strata were formed on the basis of the age, sex and occupation of the respondent among the strata formed was done random sampling for the collection of primary data. Sample was taken only in the Agra to determine the attitude of customers towards importance of branding in modern marketing. The researcher truly on the basis of his convenience did the sampling. The persons were contacted and the data was collected from them by the means of questionnaire. Sample unit was mainly each of those customers, which are using and/or knowing about cosmetic Products of Revlon in Bareilly. Sample size is 20 respondents. Sample techniques were convenience based because of time and cost constraints.

Data Analysis 1. Do you use cosmetic products?

No, 20 Yes No Yes, 80

Interpretation : 100% respondents in use cosmetics products their 80 percent customer called yes and 20 percent customer called No.

(Q2) What all the products of Revlon do you use?

Revlon 50 40 30 30 20 20 10 0
Shampoos Lotions Nail enamels Lipstics

45 35 Revlon

(Q3) Are you satisfied with the products of Revlon?

No, 35 Yes No Yes, 65

(Q4) Are you satisfied with the products of Revlon?

Yes, 45 No, 55

Yes No

(Q5) In future what type of incentives will attract you?

60 50 40 30 20 10 0

56

23

18

15

Quality

Price

Discount

Offers

LIMITATIONS OF THE STUDY 1. The questionnaire has been filled up by those people who used Revlon Products. This constraint must have hampered the study finding in favour of peoples having Personnel & Health Care. 2. The random sampling includes more people, as the people are mainly used Revlon Products. This led a bias in favour of people and affect the study finding. 3. The general question has more true representation than the detailed question. This could have saved the finding of the study from devilling to too much from reality. 4. Since some of the random sample people are not sincere while writing responses and must have affected the finding. 5. Since it is impossible to choose all walks of life in people in random sample. This constraint might have affected the study finding.

SUGGESTIONS I would like to suggest few points over which a thought can be given to overcome that drawback due to which some of the problems are faced by the products of Revelon Products. 1. Company should encourage solving the customers complaint. Customer satisfaction should be the ultimate aim so that customer complaints should be removal. 2. Promotion by local advertisement can also help in promoting Sales of the products. 3. More promotional schemes should be introduced for

customers. 4. Timely feedback should be taken so that all the problems can be easily removed. 5. The company should provide good margin for distributorship.

FINDINGS The products of Revlon Groups of Companies are the leading choice in New Agra and it is far ahead from its competitors in terms of customers. The products of Revlon Groups of Companies are preferred because of its low price and easily available. While other branded companies product are not preferred due to high price and brand loyalty. The products of Revlon Groups of Companies are preferred because of its low price and easily available. While other branded products are not preferred due to high price and brand loyalty. 1. People who are more conscious about their health are more aware about products and therefore prefer the products of Revlon Groups of Companies. 2. Users of personnel & Health care products also generally prefer for buying the products of Revlon Groups of Companies.

CONCLUSION The overall average sales of Revlon Products are 80% in all markets. and others Products are 20% in all markets. The average sales in different markets are as follows : The average Sales Across East Agra markets are 50.2% respectively. The average Sales across West Agra markets are 48.9% respectively. The average sales across North Agra markets is 42.1% respectively. The figure reveal that Revlon has good market penetration in all most all the market covered in the survey where compared to its competitions, Like HLL, NIVEA and Others.

BIBLIOGRAPHY The essence of the report, are inspired and collected by these sources, listed in this chapter, not fully but partially as advisory notes. BOOKS KOTHARI C. R. ; BY RESEARCH METHODOLOGY , NEW PADMA PUBLICATION , NEW DELHI. WEBSITES www.revlon.co.in

CUSTOMERS QUESTIONNAIRE

1.

Do you use cosmetic products? (a) yes (b) No

2.

What all the products of Revlon do you use? (a) Shampoo (b) Nail Enamel (c) Lotion (d) Lipistics

3.

How u come to know about all the products of the company? (a) Advertising (b) Hoardings (c) Brand Image

4.

Reasons for purchasing the particular products of the company? (a) Better Quality (d) Brand Image (b) Easy availability (c) Low rates

5.

Are you satisfied with the products of Revlon? (a) yes (b) No

6.

In future what type of incentives will attract you? (a) Quality (b) Price (c) Discount (d) Offers