The new product is a smaller version of the original 15-ml nail enamel bottle priced at Rs 95, and has been exclusively developed for the Indian market. The company is also considering a mini version of its lipsticks for the Indian market.

While both packaging sizes target SEC A1 and A2 consumers, the 15-ml nail enamel (introduced in September 1995) will now focus on the 25-44 age group with a monthly income of Rs 10,000, while the new 8-ml Mini will target women in the 18-44 age group and a monthly income of Rs 5,000.

``It is potentially, a huge entry premium segment that is still untapped,'' says Prashant Panday, director marketing, Modi Revlon. Adds Umesh Kumar Modi, CEO, chairman and president, Modi Revlon: ``The small size will reduce wastage, increase the shelf-life of the product and give the consumer freedom to experiment with new shades.''

With the new range, Revlon plans to develop the entry-level of the premium segment of the nail enamel market--whose size is estimated to be about 50 lakh consumers. This is five times larger than the current estimated size of 10 lakh consumers for the top-end of the premium range. Modi Revlon expects the Mini to grow its nail enamel volumes by a mega 125 per cent.

The nail enamel market, one of the fastest growing segments in the cosmetic industry, is segmented into three: the mass premium segment priced above Rs 75, and dominated by brands such as Chambor, Orchids, and Revlon; the mass market segment priced between Rs 30 and Rs 75, with brands such as Lakme and Maybelline; and the lower segment, priced below Rs 30. Accounting for 75 per cent of the total market, the popular segment consists of Elle 18, Tips & Toes and other regional brands.

Pertinently, with the Mini, for the first time in Revlon's history, will a Revlon product be positioned on a price plank: ``Tempting colours/Irresistible price.'' The company has increased its ad-outlay by about 50 per cent for the Mini launch and will be relying heavily on a print campaign to create pull for the new product. Apart from this, the company will also create pull with a consumer promotion `Colour my nails', through attractive POS, window display and merchandising.

Modi-Revlon is also widening its distribution base from the existing key 3000 dealers in about 150 towns. For the new range, it is adopting a penetrative distribution strategy by targeting about 15,000 dealers in 150 to 200 towns. ``The objective is to cast the Revlon fashion net wider,'' says Panday.

The company has decided to focus on colour cosmetics in India, which it sees as its core competency. According to ORG figures, Revlon claims to have a 80 per cent market share of the mass premium segment in the lipsticks market and an 84 per cent share of the nail enamel market. In the stores where it is present, it claims to have a market share of 56 per cent in caseof lipsticks and 32 per cent in nail enamel. Revlon also boasts of very high repeat purchase rate: 89 per cent in lipsticks and 92 per cent in nail enamel.

The company claims to have emerged as the leading brand in the mass premium colour cosmetics market, with over 75 per cent market share. It also claims to have recorded 100 per cent growth for the year 1998-99 and is going to break even in the next financial year.