Case Study Revlon

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INTRODUCTION OF THE COMPANY:
Revlon, Inc. was founded in 1932 by brothers Charles and Joseph Revson and Charles Lachmann with a $300.00 investment and one product which consisted of nail enamel. Revlon now has a 75 year history of providing high quality products to women. Revlon products are sold in more than 100 countries around the world with sales outside of the United States making up 43% of sales in 2006. Their product categories include skin care, cosmetics, personal care fragrance and professional products. Some of the companies most recognized brands are, Revlon, Ultima II, ColorStay, Almay, Charlie, Flex, Mitchum, Jean Nate’ and Color Silk. REVLON, INC. MISSION STATEMENT:

“Revlon’s long-term mission is to emerge as the dominant cosmetics and personal care firm in the twenty-first century by appealing to young, trendy women, healthy conscious women (skin care), and older women with its variety of brands.” “Revlon is a world leader in cosmetics, skin care fragrance, and personal care and is a leading mass-market cosmetic brand. Our vision is to provide glamour, excitement and innovation through quality products at affordable prices.” EXTERNAL ANALYSIS:

External Opportunities:
1. The baby boomers are any external opportunity for Revlon. The 75 million Americans born between 1946 and 1964 are a significant market for the cosmetic/personal care industry. They have high levels of disposable income and are brand loyal consumers. 2. The United States teenage market. Female, teenagers between the ages of 12 – 19 will account for almost 20 million in the United State by 2010. In addition the youthful affluent Latin American countries also represent growth opportunity. 3. The growth in the Hispanic population. The Hispanic American segment is the fastest growing in the U.S. and is projected to be the largest minority by 201 with 40.5 billion individuals. 4. The Asian American market is also growing rapidly and there are significant opportunities for companies in Asian countries which house over 60% of the world’s population. In addition women in China, India and the Middle East are rapidly growing interest in purchasing more cosmetics. 5. Men are also an external opportunity for Revlon. Men also purchase personal care products such as skin creams and hair care products and are interested in purchasing more. External Threats

1. Older people tend to spend less on cosmetics and this is a growing problem for the industry. 2. Major retailers such as Wal-Mart have reduced inventory levels, leaving cosmetic companies with fewer opportunities to stock additional products on retail store shelves. 3. Consumers are concerned about product safety and the use of animal testing by cosmetic companies. 4. Competition is intense in the cosmetic and skin care industry. 5. Gas prices are high and rising leaving most Americans with less disposable income for purchasing cosmetics.

THE EXTERNAL ASSESSMENT FACTOR MATRIX OF REVLON, INC.
External FactorsWeightRatingWeighted Score
OPPORTUNITIES
77 million American baby boomers born between 1946 and 1964 are a significant market for the cosmetic/personal care industry. They have high levels of disposable income and are brand loyal consumers.0.1530.45 The United States teenage market. Female, teenagers between the ages of 12 – 19 will account for almost 20 million in the United State by 2010. As well as the youthful Latin American countries.0.1030..30 The growth in the Hispanic population. The Hispanic American segment is the fastest growing in the U.S. and is projected to be the largest minority by 201 with 40.5 billion individuals.0.1020.20 The Asian American market is also growing rapidly and there are significant opportunities for companies in Asian countries which house over 60% of the world’s population. In addition to women in China, India and the Middle East

who are rapidly becoming more interest in purchasing cosmetics.0.1530.45 Men also purchase...
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