Revlon Axes Vital Radiance, Top Company Execs

Rather than throw good money after bad, Revlon is pulling the plug on its Vital Radiance line targeted at baby boomers. David Kennedy, who took over as president-CEO of the cosmetics marketer last week, said the company will take a negative hit of $110 million, figuring it was unlikely to receive space at Revlon's "best [retail] accounts." Instead of building Vital Radiance, the investment saved will be used to leverage the mainstay Revlon brand. Revlon spent $17 million in measured media behind Vital Radiance over the last three months, according to data from TNS Media Intelligence--but the brand failed to take off at major drug chains, including Rite Aid and CVS. Revlon also announced that it was firing 250 people, including CMO Stephanie Klein-Peponis, chief creative officer Rochelle Udell, and director-marketing Maura Mottolese. Carrie Mellage, industry manager-consumer products at Kline & Co., says Revlon's biggest hurdle is the huge marketing budgets and innovation of competitors L'Oreal and Procter & Gamble. She also said that the company likely tanked with Vital Radiance by failing to put its Revlon brand name on the line to help consumers "navigate through the clutter."
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