Revlon Inc. is a leading cosmetics company offering cosmetic, skin care, fragrance, and personal-care products. Revlon was formed in 1932, and started out with selling only nail enamels. Over the course of the past 75 years, Revlon has become a leading brand in the cosmetic market, recognized both in the United States and worldwide. Revlon owns popular brands such as Revlon, Charle, Mitchum, and Almay. Revlon has recently been struggling with debt, posting losses for the past eight years.
Mission Statement Analysis
Revlon’s vision is to glamour, excitement, and innovation through quality products at affordable prices. The key objective of Revlon is to offer high quality beauty products while keeping the costs down for the consumers. I believe Revlon has been holding true to that vision; however they could be following it too closely. Revlon’s recent losses and issues with debt could be attributed to their vision. While the answer to solve their issues is uncertain it is clear a new strategy is needed to help Revlon recover.
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Opportunities| Weight| Rating| Score|
1. Men are using cosmetics more| 0.06| 1| 0.06|
2. Weakening of the US dollar making foreign markets more appealing| 0.15| 2| 0.3| 3. Growing trend of using personal care products| 0.1| 3| 0.3| 4. The increase in the mini-baby boomers (young teens)| 0.1| 2| 0.2| 5. Baby boomer females entering retirement| 0.12| 3| 0.36| | | | |
Threats| | | |
6. Concern for product safety growing| 0.05| 2| 0.1|
7. Concerns about environment and animal testing growing| 0.07| 2| 0.14| 8. Increased gas prices greatly reduce disposable income| 0.15| 1| 0.15| 9. Natural fashion trends| 0.05| 2| 0.1|
10.Intense competition| 0.15| 2| 0.3|
| 1| | 2.01|
1. There is a growing trend of men using cosmetic products. Product lines marketed specifically for men will be necessary to profit in this market segment. Men will be reluctant to use products made for women, so separate product lines are necessary.
2. Weakening of the US dollar makes any US based product more appealing in the foreign markets. Not only will people with other currencies favor the currency advantage of buying Revlon, are huge emerging markets growing in Latin America, Asia, and India.
3. There has been an overall growth in the use of cosmetic and personal care products worldwide. As countries become more developed, more people are earning income to spend on these products. Especially in the United States, appearance is strongly valued and cosmetics play a large part.
4. As with the increasing trend in cosmetics, there has been a significant increase in the mini-baby boomer market. Young teens are using cosmetic, personal care products more, and more. This market of teenage women is huge, especially in the United States.
5. The original group of baby boomers are beginning to reach the age of retirement. Most have reached their peak earning potential and now have large amounts of disposable income. With old age comes the need for cosmetics to help people maintain a youthful look. Retired women of the baby boom era are a significant market segment for Revlon.
6. There have been growing concerns for product safety. Most cosmetics are applied to the face, and some if not properly tested can have adverse side effects. The population is becoming more health aware, and is always looking at the health effects of everyday products. Most companies now advertise the use of natural ingredients to market to health conscious consumers.
7. There is also growing concern for the environment and the use of animal testing. Animal testing had always been an issue for the cosmetic industry; however it is becoming more prominent in recent times. Even more is the growing concern for the environment. Consumers are looking...