Revlon Inc. is a world leader in cosmetics. It was formed in 1932 by brothers Charles and Joseph Revson and Charles Lachmann with a $300 investment. During Revson’s time, a near monopoly on beauty parlor sales was developed brought about by door-to-door sales of nail polish. He expanded into the lipstick market with the slogan “Matching Lips and Fingertips”. Thus, after six years the small nail Enamel Company transformed into one of the most recognizable brands and companies in the world. After the death of Charles Revson, Michel Bergerac took over and built up the pharmaceutical side of the business. As a result of this, Revlon lose its ground in cosmetics. Thereafter, Ronald Perelman, chairman and CEO of MacAndrews and Forbes, made five offers to purchase Revlon, took over the company for $1.8 Billion and placed it back to its roots as a manufacturer and seller of cosmetics and fragrances. As of now, Revlon is in peril and is attempting to reduce expenses but continued to struggle with their debt reaching almost $2.3 Billion.
II. STATEMENT OF THE PROBLEM
The researchers aim to determine the following problems faced by Revlon: 1. What industry does Revlon belong to?
2. What must be done to improve the Research and Development Division of Revlon? 3. How to improve the financial condition, specifically the debts, of the company? 4. Which market segment must Revlon target in the Philippines? 5. What are the applicable and effective marketing strategies for the Philippine market? III. OBJECTIVE(S)
This study aims to address the aforementioned problems by providing information about threats, opportunities, weaknesses and strengths of Revlon and making use of this information to achieve the following: 1. Identify the industry where Revlon belongs to base on the needs of the consumers. 2. Improve the Research and Development of the Company within the next two (2) years. 3. Improve the Debts of the Company within the next five (5) years. 4. Strengthen Revlon’s Brand Recognition in the Philippines within the next five (5) years. IV. INDUSTRY ANALYSIS
A. ANALYSIS OF THE MACRO-ENVIRONMENT
1. Demographic/Social/Cultural Environment
The beauty and personal care industry is impacted by major changes in the demographic composition of the Philippines as well as the social awareness of most of its people.
Women, more than ever, feel the need to be camera-ready at all times, thanks mainly to cellphone cameras. Social media like Facebook, Twitter, Multiply, among endless list of others, also is feeding a subculture of "getting ready," where dressing and grooming before a big event can sometimes overshadow the event itself. "You have to be in a demographic where women care about makeup and care about their looks and care about the whole package," says Allison Conrad, president of Blushington. In the onset of the new millennia where women outnumbered men in terms of population and women started to take their places in the business world, cosmetics and personal care products became more of a necessity.
In the 2012 Philippine Demographic Profile conducted in the Philippines, ages 15-64 comprise the 61.1% of the total population of the Philippines (male 31,103,967/female 31,097,203). There is a potential large market for beauty and personal care products in the Philippines as more and more women on this age range are considered career women in which cosmetics is a necessity. 2. Political/Legal/Governmental Environment
Philippine Government regulates operations of any business entity in the country. It is also one of the countries around the globe to impose high tax rates. Thus, any entity wishing to import or export any goods must get clearance from Bureau of Customs (BOC). Revlon, being an American institution is subject to the rules and regulations of the BOC and also to the Bureau of Internal Revenue for income that could be derived by the firm in...