Case Study Revlon

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REVLON, INC. – 2007

POINT OF VIEW: Chief Executive Officer of Revlon, Inc.

PROBLEM: For the past years, Revlon continues to launch or reintroduce new product lines but in effect it does not generate sufficient income to cover the expenses of the company incurring losses and resulting to increasing liability and a continues restructuring program. These things would not have happened if the Marketing and Research and Development Departments which are among the cost centers of the company attentively take necessary actions by way of responsible expending of money and by creating effective marketing strategies and product development.

AREAS OF CONSIDERATION:
Revlon is an American company that sells products for skin care, cosmetics, fragrance, personal care and professional products. It was founded in 1932 by Charles & Joseph Revson and Charles Lachmann, who contributed the ‘L’ in the REVLON name. The company started with only one product – nail enamel. These are sold door-to-door at salons, and eventually distributed widely in select drug stores and department stores in the 1930s. After World War II, they began to produce manicure and pedicure instruments. Revlon’s successful international presence in the 1960s was because of the “American Look” campaign featuring known U.S. models. The Charlie fragrance line was introduced in the early 1970s and the sales surpassed $1 billion by 1977. Michel Bergerac took over the company after the death of Charles Revson. By 1985, two-thirds of Revlon’s sales were health care products and the company was losing ground in cosmetics. It is then sold to a subsidiary of MacAndrews & Forbes Holdings, Inc. which Ronald Perelman is the chairman and chief executive officer. The company was taken public and traded on the New York Stock Exchange (NYSE) in 1996. He refocused the company to become an internationally known manufacturer and seller of cosmetics and fragrances. The acquisitions in South America increased the...
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