Revlon’s electronic store is going to use competitive strategy in order to get large profits in the market. The cosmetics which the e-business is going to offer is very high-quality and is priced competitively, therefore, customers will be choosing instead of choosing competitors’ products. There is no sense for the company to favor cooperative strategy in its e-business. The demand for cosmetics products is very high at present and as long as Revlon’s electronic shop is well-developed and easy to access, it will obtain large profits.
The project is going to create large amount of value for the customers because it will provide them with convenience (easy access to their favorite products online), lower costs of shopping (they do not have to drive to the mall), customization (they will be able to customize their experience online with the help of various tools), interactive communication (customers will be able to communicate with beauty-experts through online tools), and control (customers will be in control of their time and their spending).
Creation and maintenance of successful relationship with customers is a very important task for the electronic store which is being launched. CRM tools can protect the e-business from that. The analysis of Revlon’s customers is crucial for the identification of the targeted segments of the market. The company is well-positioned at the market at this point. The targeted segments of the market to which the Revlon sells about 60% of its products are women of age 18-45. The company’s product lines are the most valuable for this group because such women take care of themselves and want to look even better than they look now.
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They want to purchase products for all of the parts of the body and value quality the most. In order to attract this group of customers, the website needs to ensure there is maximum convenience in online purchasing and that a full range of products is available for online purchasing. Emphasize on quality also needs to be made, as well as emphasize on the benefits of the products for the appearance of consumers. It could be useful to include some messages from famous people about the quality of products. Women in this target group are particularly interested in stars’ reaction to the products.
Another segment of the market which needs to be targeted by the electronic store are women older than 45 (25% of customers). They can also purchase some products of Revlon, such as hairspray, anti-wrinkle cream, all kinds of products for body care and makeup. At the same time, they are not purchasing as much decoration cosmetics as the previous group. These women prefer reliability and quality in products. In order to build an efficient communication with this group through the website, it is necessary to ensure maximum convenience of purchase process for them.
Such women might not be fully acquainted with all of the facilities in Internet and they will purchase online only if it is easy and understandable. This group of customers particularly requires personalization of the website and realization that they are the most respectable customers. It is also necessary to target the segment of the market which consists of girls younger than 18 (15% of the customers). They mostly purchase products which deal with acne medication, all kinds of powder, bright lipstick and other things.
This group of customers is driven by new products the most. They are also very concerned with the price level of products and can switch to other brands if their prices get lower. The communication strategy with this group of customers needs to be built on different principles. It is necessary to ensure that teenage girls consider it very fashionable to use Revlon’s products and this can be achieved through the use of some teen star- such a s Lindsay Lohan or Britney Spears for advertisement in the website.
Emphasize also needs to be made at the brightness of colors in the collection and their connection with the most fashionable trends. It would be very helpful to divide the website into several parts and offer links to them in order to address all of the mentioned groups. The suggested division is: ‘Revlon for teens”, “Glamour” (Revlon products for young women) and “Charm” (Revlon products for older women). Even though the names of the links do not exactly tell the characteristics of the production, it can be easily discovered by consumers.
The communication with different groups of customers would be arranged with consideration of their interests and needs. The problem of retaining valued customers is very important. The website needs to make sure the customers obtain the highest level of services. First, it has to be ensured that all of the items are delivered to the consumers on time. Second, the customers who order large numbers of products need to get discounts in the future. Third, customers will be able to obtain bonuses with every purchase and then have a chance to exchange them for the production of the company in the future.