"GLOBAL MANAGEMENT STRUCTURE OF REVLON"

A Project Report
Submitted By
ZAHRA
In fulfillment for the award of the Diploma
Of
DIPLOMA IN BUSINESS MANAGMENAT

GIRLS COMMUNITY COLLEGE ABU ARISH

JAZAN UNIVERSITY

2010-2011

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 JAZAN UNIVERSITY

BONAFIDE CERTIFICATE

Certified that this project report "GLOBAL MANAGEMENT

STRUCTURE OF REVLON'' is the Bonafide work of who carried out

the project work under my supervision.

Dr. AYESHA ABU DHAYYA Dr. SHEEBA REHMAN

(HEAD OF THE DEPARTMENT) (SUPERVISOR)

Girls Community College Abu Arish Girls Community College Abu Arish

Jazan University, KSA Jazan University, KSA

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ACKNOWLEDGEMENT

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 ACKNOWLEDGEMENT

First of all I would like to thank to the Jazan University for having this project as a
part of the Business Administration curriculum.

Many people have influenced and shape and content of this project, and many
supported me through it. I express my sincere gratitude to Ms. SHEEBA REHMAN
for assigning me a project on "Global Marketing Structure of Revlon" which is an
interesting and exhausting subject.

She has been an inspiration and role model for this topic. Her guidance and active
support made it possible to complete the assignment.

I would like to thank my friends and group member of this project who have helped
and encouraged me throughout of the project.

Last but not the least I would like to thank the Almighty for always helping me.

ZAHRA

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Table Of Contents

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 Table Of Contents

S. NO. TITLE PAGE NO

1. Cover page &title page

2. Bonafide Certificate

3. Acknowledgement

4. Table of contents

5. Objective of the Report

6. Chapter-1

Introduction/summary/background

7. Chapter-2

Research Methodology

8. Chapter-3

9. Finding and analysis

10. Conclusion

11. References

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OBJECTIVE OF THE REPORT

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OBJECTIVE OF THE REPORT

The study of the project concentrates on the organisation structure and design. The
main objectives of the study is :

1. To find out the global structure designs

2. To find out the global structure of Revlon

3. To find out its impact on the growth of the company

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 Chapter One
INTRODUCTIO AND BACKGROUND OF THE
COPANY

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Company Perspectives: 
Revlon strives to create and develop the most consumer-preferred brands; to be the
most valuable partner to our retail customers; and to profitability grow the business
and its value for our stakeholders. 

Key Dates: 
1932: Brothers Charles and Joseph Revson and Charles R. Lachman establish
Revlon. 
1935: The Company's first ad appears in The New Yorker magazine. 
1940: Lipstick is added the company's product line. 
1955: The Company changes its name to Revlon Inc. and goes public. 
1966: U.S. Vitamin & Pharmaceutical Corporation is acquired. 
1970: Mitchum Co. is purchased. 
1973: The Charlie fragrance is launched. 
1985: Revlon is sold to Pantry Pride, a subsidiary of Ronald Perelman's MacAndrews
& Forbes Holdings, and becomes a private company. 
1994: ColorStay lipstick is introduced. 
1996: Revlon makes an initial public offering of stock. 
2000: The Company's professional products line is sold. 

Company History:

Revlon Inc. operates as one of the world's leading cosmetics companies and markets
its products in over 100 countries under such familiar brands as Revlon, ColorStay,
Age Defying, Almay, and Skinlights. Revlon also sells skin care products (Ultima II,
Vitamin C Absolutes, Eterna 27), fragrances (Charlie), and personal care products
(High Dimension, Flex, Mitchum, Colorsilk). Ronald Perelman, who gained control
of the company in a nasty hostile takeover in 1985, owns approximately 83 percent of
Revlon.
A Nail Polish Company Is Founded in 1932

Revlon's first beauty item was nail enamel. Opaque and long-lasting, it was an
improvement over the more transparent, dye-based products of other manufacturers.
Revlon's nail polish owed its superiority to the use of pigments, which also allowed a
wider color range than the light red, medium red, and dark red then available.
Initially, the revolutionary "cream enamel" came from the tiny Elka company, in
Newark, New Jersey, a polish supplier to beauty salons for whom Charles Revson
began to work as a sales representative in 1931. Charles Revson and his older brother
Joseph distributed Elka nail polish as Revson Brothers. Within a year, however,

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Charles Revson decided to open his own nail polish company, going into partnership
with his brother and a nail polish supplier named Charles R. Lachman, who
contributed the "l" to the Revlon name. Revlon was formed on March 1, 1932.

Revson had a keen fashion instinct, honed by his seven years of sales experience at
the Pickwick Dress Company in New York. Coupling this with his experience at Elka,
he noted that the permanent wave boom was making beauty salons more popular and
that demand for manicures was rising in tandem. He therefore targeted beauty salons
as a market niche--a fortunate choice whose importance would grow.

Within its first nine months, the company boasted sales of $4,055. There was a sharp
rise in sales to $11,246 in 1933, the year the company incorporated as Revlon
Products Corporation. At the end of 1934, the company had grossed $68,000. By
1937, sales multiplied more than 40 times. In that year, Revson decided to enlarge his
market by retailing his nail polish through department stores and selected drugstores.
This gave him access to more affluent customers as well as those with a moderate
amount of money to spend on beauty products. Formulating a maxim he followed for
the rest of his life, Revson steered clear of cut-rate stores, selling his product only at
premium prices.

Advertising helped Revson stick to this rule. Its use was a fateful step for the industry;
never again would major cosmetics companies attempt to sell beauty items without it.
Revson began by labeling his nail enamels with evocative names such as Fatal Apple
and Kissing Pink, which served both to describe a particular color while offering the
promise of novelty at the same time. The company's first commercial advertisement
appeared in The New Yorker in 1935. Aimed carefully at the upper-income clientele
Revson was trying to attract, the advertisement came with a price tag of $335,
constituting Revlon's entire advertising budget for the year.

By 1940, Revlon had a whole line of manicure products. Lipstick, Revlon's next
major item, appeared in 1940. A perfectionist by nature, Revson made sure that its
quality was the best he could produce. Its introduction was marked by a full-color
advertising campaign stressing the importance of cosmetics as a fashion accessory
and featuring the novel idea of "matching lips and fingertips." The campaign's success
showed in the 1940 sales figures; reaching $2.8 million, they more than doubled those
of 1939.

World War II brought shortages of glass bottles and metal lipstick cases. Paper had to
be substituted. Also in short supply were aromatic oils, fixatives, and packaging
materials, which had previously been imported from Italy, Ethiopia, and France. Since
the shortages affected the entire industry, secrecy was replaced by mutual
cooperation, new synthetics and domestic sources of supply were shared, and a new
U.S. aromatics industry was born.

During wartime, patriotic activities replaced expansion. In addition to cosmetics,

Revlon turned out first-aid kits, dye markers for the navy, and hand grenades for the
army. Characteristically, Revson's military products were the best his company could
produce. His attention to detail was rewarded in 1944 with an army-navy production
award for excellence.

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By the end of the war, Revlon listed itself as one of America's top five cosmetic
houses. Expanding its capabilities, the company bought Graef & Schmidt, a cutlery
manufacturer seized by the government in 1943 because of German business ties.
Costing $301,125, this acquisition made it possible for Revlon to produce its own
manicure and pedicure instruments, instead of buying them from outside supply
sources.

Postwar Promotions and Growth

Postwar sales strategy, too, was influenced by increases in spending and department
store credit sales. Returning interest in dress sparked the company's twice-yearly nail
enamel and lipstick promotions, which were crafted in anticipation of the season's
clothing fashions. Each promotion featured a descriptive color name to tempt the
buyer, full-color spreads in fashion magazines, color cards showing the range of
colors in the promotion, and display cards reproducing or enlarging consumer ads.
Packaging was designed specifically for each line.

The Fire and Ice promotion for fall 1952 was one of the most successful. Its features
included the cooperation of Voguemagazine, which planned its November issue
around the lipstick and nail enamel, "push" money given to demonstrators in stores
without Revlon sales staff to insure full retail coverage, and radio endorsements
written into scripts for performers such as Bob Hope and Red Skelton. These efforts
produced excellent publicity and helped to raise 1952 net sales to almost $25.5
million.

The company received its next boost from its 1955 sole sponsorship of the CBS
television show The $64,000 Question. Though initially reluctant to go ahead with
this project, Revson was persuaded by the success of rival Hazel Bishop, whose
sponsorship of This is Your Life was providing serious competition for Revlon's
lipsticks. Attracting a weekly audience of 55 million people,The $64,000
Question topped the ratings within four weeks of its debut. Revlon's advertising
budget for the year, $7.5 million, proved Charles Revson's adage that publicity had to
be heavy to sell cosmetics; as a result of the television show, sales of some products
increased 500 percent, and net sales for 1955 grew to $51.6 million, from $33.6
million one year previously.

In November 1955, an allegation of wiretapping was filed against Revlon by Hazel

Bishop. In testimony given in a hearing before the New York State Legislative
Committee to Study Illegal Interception of Communications, the charge was denied
by Revlon controller William Heller, who nevertheless admitted "monitoring"
employees' telephones for training purposes. Underscoring the denial of Hazel
Bishop's charges, a Revlon attorney added a denunciation of wiretapping for
industrial espionage and promised cooperation in efforts to stop it.

Also in November 1955, Revlon reorganized as Revlon, Inc. A month later, in

December 1955, the company went public. Initially offered at $12 per share, Revlon
stock reached $30 within weeks, and the company was listed on the New York Stock
Exchange at the end of 1956.

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Meanwhile, the success of The $64,000 Question soon spurred a spinoff called The
$64,000 Challenge. The two shows helped to raise the company's net sales figures to
$95 million in 1958 and to $110 million in 1959. The three-year bonanza came to an
end, however, in 1959, amid charges that both shows had been rigged. At the resulting
congressional hearings, the shows' producers and the Revsons blamed each other.
Nevertheless, the committee's verdict cleared Revlon of any blame in this matter.

A Segmented Product Line in the 1960s

As the 1960s began, Charles Revson became aware that his company was in danger of
locking itself into a narrow, upper-middle-class image that could restrict sales. To
avoid this, he borrowed a technique from General Motors and segmented his product
line into six principal cosmetics houses, each with its own price range, advertising
program, and image. Princess Marcella Borghese aimed for international flair, Revlon
was the popular-priced house, Etherea was the hypoallergenic line, Natural Wonder
served youthful consumers, Moon Drops catered to dry skins, and Ultima II offered
the most expensive products. Top-priced lines were sold only in department stores,
while others were available in other outlets. This strategy allowed the company to
cover a wide market area without in-house conflict.

Early attempts to diversify into other fields were unsuccessful. For instance,
Knomark, a shoe-polish company bought in 1957, sold its shoe-polish lines in 1969.
Other poorly chosen acquisitions, such as Ty-D-Bol, the maker of toiler cleansers, and
a 27 percent interest in the Schick electric shaver company were also soon discarded.
Evan Picone, a women's sportswear manufacturer which came with a price tag of $12
million in 1962, was sold back to one of the original partners four years later for $1
million.

The company's first successful acquisition came in January 1966, when Revson
bought U.S. Vitamin & Pharmaceutical Corporation in exchange for $67 million in
Revlon stock. The buyout brought Revlon a company with annual sales of $20
million, most of them coming from a drug used to treat diabetes. Within a year, U.S.
Vitamin proved its worth with its acquisitions of Laboratorios Grossman, a Mexican
pharmaceutical company, as well as comparable concerns in Argentina and Chile. In
1971, Revson traded U.S. Vitamin's diabetes drug and $20 million cash for a group of
drugs Ciba-Geigy was required to divest for antitrust reasons. Another U.S. Vitamin
acquisition was Nysco Laboratories and its Nyscap process for timed-release
medication. This, in turn, led to the introduction of vasodilation drugs. Fully
disposable injectables, introduced in 1968, also came from U.S. Vitamin.

The company had begun to market its products overseas at the end of the 1950s. By
1962, when Revlon debuted in Japan, there were subsidiaries in France, Italy,
Argentina, Mexico, and Asia. Revlon's entrance into the Japanese market was typical
of its international sales strategy. Instead of adapting its ads and using Japanese
models, Revlon chose to use its basic U.S. advertising and models. Japanese women
loved the American look, and the success of this bold approach was reflected in the
1962 sales figures, which were almost $164 million.

By 1967, expanding worldwide markets produced sales of $281 million, showing a

5.7 percent increase over the figure of almost $266 for 1966. Planning further

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expansion, Revlon spent $12.5 million on improvements to existing facilities plus a
new cosmetics and fragrance manufacturing plant in Phoenix, Arizona.

During the 1960s, the company consisted of four divisions: International, Professional
Products, Princess Marcella Borghese, and U.S.V. Pharmaceutical. In 1968, Revson
decided to add two more divisions: Cosmetics and Fragrances, headed by Joseph
Anderer, and the Revlon Development Corporation, which was headed by Evan
William Mandel and concerned chiefly with long-range planning concepts and
strategies for marketing opportunities.

Acquisitions and Restructuring in the 1970s

The 1970s began with annual sales of about $314 million. The Cosmetics and
Fragrances division, its six lines separately aimed, advertised, and marketed, was the
industry leader in all franchised retail outlets. Revlon fragrances, such as Norell and
Intimate for women and Braggi and Pub for men, had also become familiar to U.S.
consumers. Revlon also had a new line of wig-maintenance products called Wig
Wonder.

An important 1970 acquisition was the Mitchum Company of Tennessee, makers of

antiperspirants and other toiletries. Mitchum joined the Thayer Laboratories
subsidiary, formerly Knomark. Mitchum-Thayer division's widely publicized products
required a 1971 advertising budget of $4 million.

In 1973, Revlon introduced Charlie, a fragrance designed for the working woman's
budget. Geared to the under-30 market, Charlie models in Ralph Lauren clothes
personified the independent woman of the 1970s. Charlie was an instant success,
helping to raise Revlon's net sales figures to $506 million for 1973 and to almost $606
million the following year.

High profits notwithstanding, 1974 was a difficult year. Charles Revson was
diagnosed with pancreatic cancer. Determined to leave a worthy successor, he picked
Michel Bergerac, a president of International Telephone and Telegraph's European
operations. Terms of Bergerac's contract included a $1.5 million signing bonus, an
annual salary of $325,000 for five years, bonuses, and options on 70,000 shares.

Company profitability was Bergerac's chief interest. Impressed with Revson's

experienced management team, he induced them to stay by introducing the
Performance Incentive Profit Sharing Plan, which allotted each executive points based
on profit objectives achieved for the years 1974 to 1976. He also cut company
spending with tighter inventory controls and instituted an annual savings of $71.5
million by the elimination of 500 jobs. Bergerac installed a management-information
system requiring that all managers report monthly on problems, sales, and
competition.

Through acquisitions, Bergerac tried to reduce Revlon's dependence on the

increasingly crowded cosmetics market. His first major purchase came in 1975.
Coburn Optical Industries was an Oklahoma-based manufacturer of ophthalmic and
optical processing equipment and supplies which cost 833,333 Revlon common
shares. Barnes-Hind, the largest U.S. marketer of hard contact lens solutions, was

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bought in 1976 and strengthened Revlon's share of the eye-care market. Other
acquisitions included the Lewis-Howe Company, makers of Tums antacid, acquired in
1978, and Armour Pharmaceutical Company, makers of thyroid medicines, acquired
in 1977. These health-care operations helped sales figures to pass the $1 billion mark
in 1977, bringing total sales to $1.7 billion in 1979.

By the late 1970s, company pharmaceutical research and development had extended
into plasma research and new drugs for the treatment of osteoporosis and
hypertension. The markets for soft contact lenses and their rinsing solutions were also
growing. Bergerac compounded a successful 1979 by buying Technicon Corporation,
a leading maker of diagnostic and laboratory instruments for both domestic and
international markets, in 1980.

During the mid-1970s, Bergerac also organized the six cosmetics lines into three
groups for easier administration. Revlon, Moon Drops, Natural Wonder, and Charlie
now belonged to group one. Group two was comprised of Flex hair-care products and
other toiletries, while group three included Princess Marcella Borghese and Ultima II,
the prestige cosmetic brands sold in upscale department stores. The domestic
cosmetics operations also included the government sales division, carrying almost all
the beauty lines through military exchanges and commissaries in the United States
and overseas.

By the mid-1980s, Revlon's health-care companies rather than Revlon's beauty

concerns were innovating and expanding. Reluctant to initiate beauty-product
development or department store promotions, Revlon lost ground to Estée Lauder, a
privately held company whose marketing strategy of high prices with accompanying
gifts had earned it almost universal center-aisle department store space. This caused
Revlon's share to drop from 20 percent to 10 percent of department store cosmetics
sales.

Drugstore and supermarket sales were also suffering; Natural Wonder, a low-priced
line, lost 24 percent of its supermarket volume in 1983 alone, and competitor Noxell's
inexpensive Cover Girl line was claiming more drugstore sales. Comparisons of
profits from total operations told the story: $358 million in 1980 sank to $337 million
in 1981, which fell to $234 million by 1982.

1985 Takeover

By 1984, industry analysts believed that Revlon would be worth more if it were
broken up and sold. Within a year, this opinion was borne out by a takeover bid from
the much smaller Pantry Pride, a subsidiary of Ronald Perelman's MacAndrews &
Forbes Holdings. In defense, Bergerac accepted a $900 million offer for the cosmetics
businesses from Adler and Shaykin, a New York investment company. The rest of
Revlon was to go to Forstmann Little & Company, a management buyout corporation,
for about $1.4 billion. These sales, however, were disallowed by a Delaware judge,
who ruled that the deal was not in Revlon's shareholders' best interests. On November
5, 1985, at a price of $58 per share, totaling $2.7 billion, Revlon was sold to Pantry
Pride, becoming a private company and giving the name of Revlon Group to the
former Pantry Pride. The highly leveraged buyout--engineered with the help of junk

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bond king Michael P. Milken--saddled Revlon with a huge $2.9 billion debt load,
which was an albatross around the company's neck for years to come.

Perelman immediately began to divest the company of the healthcare businesses. By

1987, only National Health Laboratories remained. By the end of 1988, Perelman had
recovered $1.5 billion of his borrowed funds, partly by selling the eyecare businesses
to the British firm of Pilkington for $574 million.

Divested companies were replaced with others geared to the Perelman objective--
restoring the luster to the original beauty business. Costing about $300 million, Max
Factor joined the Revlon lineup in 1987, along with its Halston perfume and its
Almay toiletries. Other newcomers were Yves Saint Laurent fragrances and
cosmetics; Charles of the Ritz, Germaine Monteil, and Alexandre de Markoff
followed soon after. In 1989, Perelman spent another $170 million to acquire Betrix, a
German makeup and fragrance maker.

Other innovations of the 1980s meshed with national trends. The concern of a
burgeoning older population with health and fitness led to wider company research on
skin-care products as well as on makeup. International concerns for animal rights
found a response in Perelman's Revlon, which abandoned the Draize test in 1989 after
closing its animal testing center in 1986. Revlon also sought to improve the company
image when it signed supermodels Cindy Crawford and Claudia Schiffer for its
advertising in the late 1980s and early 1990s.

During the late 1980s, fears of an approaching recession made bankers generally wary
of highly leveraged transactions, and Revlon's junk bonds began to lose value.
Internal problems stemmed partly from the department store market, where an attempt
by Revlon to economize by grouping its Ritz, Monteil, and Borghese prestige brands
at one counter failed. Other problems included the introduction of No Sweat, a
deodorant which, despite its $12 million introductory advertising budget, failed to
garner market share; the reformulation of Flex, a popular shampoo which lost market
share when Revlon introduced a new formula with new packaging and a higher price;
and a 2 percent shrinkage in the fragrance market that affected the entire industry.

Turning the Corner in Mid-1990s

By 1990, Revlon held only 11 percent of the U.S. mass-market cosmetics market.
Losses were mounting year after year thanks in large part to the money that had to be
spent each year to service the debt. In 1991 alone, $131.6 million went toward debt
service, contributing to an operating loss of $241.7 million ($226.9 million of which
stemmed from extraordinary restructuring charges). Perelman was forced to sell still
more assets to keep Revlon from defaulting on its loans.

In addition to selling 80 percent of National Health Laboratories by 1992, Perelman

had to also sell off some assets from the core cosmetics area. In 1991, Max Factor and
Betrix were sold to Procter & Gamble for $1.14 billion in cash. Sold off the following
year were the high-end Halston and Princess Marcella Borghese brands.
Unfortunately for Perelman, such moves were not enough to gain the confidence of
Wall Street. In 1992, Perelman tried to sell 11 million shares of Revlon stock in an
initial public offering (IPO) at about $18 to $20 per share. The IPO failed, a victim of

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a sluggish stock market, poor Revlon earnings, and the huge debt that continued to
weigh down the cosmetics giant.

To shore up sagging sales, Revlon CEO Jerry Levin boosted Revlon's advertising
budget by 25 percent in 1992 to $200 million. Much of this money was spent on
television advertising, with less spent on print ads and in-store promotions than in the
past. While the Revlon line was promoted in this fashion and through mass-market
retailers, the company's only remaining premium brand, Ultima II, was shifted down
from upscale stores to JC Penney and Dillard's department stores. Early indications
were positive for these moves as overall market share for the Revlon Group hit 14.7
percent in 1992. By 1993, the company was finally able to report operating income--
$51.5 million--although debt service remained high at $114.4 million.

Meanwhile, the company started to develop successful new products. The ColorStay
line of longlasting cosmetics was introduced in 1994 with the debut of ColorStay
lipsticks, which soon captured the top spot in its category. The Age Defying line of
cosmetics for women over 35 soon followed and also proved popular. By 1995,
overall market share had reached 19.4 percent and what Advertising Age called the
"reborn cosmetics juggernaut" unseated Maybelline from the number one position in
cosmetics. Net sales were improving steadily from $1.59 billion in 1993 to $1.73
billion in 1994 to $1.94 billion in 1995. In addition, while debt service remained high
($137.7 million in 1995), it was finally exceeded by operating income ($145.1
million).

Backed by what was clearly a remarkable, though long-in-coming turnaround,

Perelman felt confident enough to try another initial public offering in early 1996.
This time he succeeded, and Revlon once again became a public company, although
Perelman retained 99.7 percent of the voting stock. About 15 percent of overall shares
were sold in the initial public offering, raising about $150 million.
Financial Woes in the Late 1990s and Beyond

Revlon's turnaround was short-lived, however, and by the late 1990s the company
was plagued with problems. Losses began to pile up, due in part to intense
competition, dwindling shelf space in stores, inventory overstock, and problems
overseas. Saddled by over $2 billion in debts, Perelman announced that he was
looking for a buyer for Revlon. He was unable to strike a deal, however, and instead
began selling off parts of the company. He sold Revlon's professional products
business and its Plusbelle line in 2000 and divested the Colorama brand the following
year.

CEO Jeff Nugent resigned in 2002, leaving Coca-Cola executive Jack Stahl at the
helm of Revlon. Losses continued to mount as the new CEO and his team worked to
save Revlon from bankruptcy. Overall, sales had fallen by 40 percent since 1998 as
competitors stole market share. To make matters worse, cosmetic sales at drugstores,
supermarkets, and discount stores had slowed significantly over the past several years.
Perelman set plans in motion to bail out the company, offering a cash infusion of $150
million in 2003 to help eliminate some of the firm's debt.

In an attempt to bolster Revlon's sales, the company launched an expensive marketing

campaign featuring Hollywood stars Halle Berry and Julianne Moore. Market share

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for Revlon and Almay increased slightly, and the company posted a 16 percent
increase in sales as a result. While the company focused on strengthening its brands,
restoring growth, building stronger relationships with its retail partners, and
revamping the organization as a whole, Stahl continued to have his work cut out for
him. A November 2003 Business Week article stated, "Today, the company isn't
making a dime--and Stahl can't get away with that for long. Sales may be rising, but
only because of a pricey ad blitz that some outside Revlon think is unsustainable."
Indeed, without the financial backing of Perelman and potential debt-for-equity
transactions that would reduce Revlon's debt, the company faced a long road of
financial difficulties.

In late 2003, the company launched Destination Model, a business plan designed to
get profits back on track. The model's strategies were based on improving
promotional and advertising success, reducing manufacturing and supply chain costs,
and developing successful new products while effectively managing current products.
Despite its financial position, Revlon management remained optimistic about its
future. Regardless of what happened in the years to come, Revlon's brands would no
doubt continue to be recognized across the globe.

Principal Subsidiaries: Almay, Inc.; Charles of the Ritz Group Ltd.; Charles Revson
Inc.; Cosmetics & More Inc.; North America Revsale Inc.; PPI Two Corporation;
Revlon Consumer Corporation; Revlon Consumer Products Corporation; Revlon
Development Corporation; Revlon Government Sales, Inc.; Revlon International
Corporation; Revlon Products Corporation; Revlon Real Estate Corporation; RIROS
Corporation; RIROS Group Inc.; RIT Inc.
Principal Competitors: L'Oréal SA; The Proctor & Gamble Company; Unilever NV.

Revlon, Inc. conducts its business through its direct wholly owned subsidiary, Revlon
Consumer Products Corporation (Products Corporation) and its subsidiaries. It is a
direct and indirect majority-owned subsidiary of MacAndrews & Forbes Holdings
Inc. The Company manufactures, markets and sells an array of cosmetics, women’s
hair color, beauty tools, anti-perspirants/deodorants, fragrances, skincare and other
beauty care products. The Company’s products are sold worldwide and marketed
under brand names, including the Revlon ColorStay, Revlon Super Lustrous and
Revlon Age Defying franchises, as well as the Almay brand, including the Almay
Intense i-Color and Almay Smart Shade franchises, in cosmetics; Revlon ColorSilk in
women’s hair color; Revlon in beauty tools; Mitchum anti-perspirants/deodorants;
Charlie and Jean Nate in fragrances, and Ultima II and Gatineau in skincare.

The Company’s customers include large mass volume retailers and chain drug and
food stores (collectively, the mass retail channel) in the United States, as well as
certain department stores and other specialty stores, such as perfumeries, outside the
United States. The Company also sells beauty products to the United States military
exchanges and commissaries.
Cosmetics-Revlon

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The Company sells a range of cosmetics under Revlon brand, which includes face, lip,
eye and nail products. The Company sells face makeup, including foundation,
powder, blush and concealers, under the Revlon brand name. Revlon Age Defying,
which is targeted for women in the over 35 age bracket, incorporates the Company’s
Botafirm ingredients to help reduce the appearance of lines and wrinkles. During the
year ended December 31, 2009, it introduced Revlon Age Defying Spa foundation
and concealer. The Company also markets a range of Revlon ColorStay liquid and
powder face makeup. The Revlon ColorStay Mineral collection includes Revlon
ColorStay Mineral Mousse makeup and Revlon ColorStay Mineral foundation, as
well as Revlon ColorStay Mineral pressed blush and bronzer. The Revlon Beyond
Natural collection offers skin-tone matching liquid foundation. In 2010, the Company
launched Revlon PhotoReady makeup, powder and finisher. The Company has also
launched Revlon Age Defying Spa face illuminator.

The Company markets a range of Revlon lip makeup, including lipstick, lip gloss and
lip liner, under several Revlon brand names. Revlon Super Lustrous is the Company’s
wax-based lipcolor, offered in a variety of shades of lipstick and lip gloss. Revlon
ColorStay Soft & Smooth lip color offers long-wearing benefits, while Revlon
ColorStay Overtime lipcolor and Revlon ColorStay Overtime Sheer lip color uses
transfer resistant technology. The Company’s Revlon ColorStay Mineral lipglaze is
the Company’s long-wearing lip gloss with up to eight hours of wear. In 2009, the
Company introduced Revlon Creme Gloss, a lip gloss that provides deeply pigmented
color with gloss shine and Revlon ColorStay Ultimate liquid lipstick, a lipcolor that
has ColorStay long-wearing technology with food-proof wear for up to 12 hours in
one step. In 2010, the Company launched Revlon ColorBurst lipstick, a lipstick
available in 20 shades with Elasticolor technology.

The Company’s eye makeup products include mascaras, eyeliners, eye shadows and
brow products, under Revlon brand names. In mascaras, franchises include Fabulash,
which uses a lash perfecting brush for fuller lashes, and Revlon Lash Fantasy Total
Definition, a two-step primer and mascara with lash separating brushes. In 2009, the
Company launched Revlon DoubleTwist mascara with a two-in-one brush for volume
and definition. In eyeliners, Revlon Luxurious Color liner uses a smooth formula. In
addition, in 2009, the Company introduced Revlon Luxurious Color kohl eyeliner for
intense matte color. In eye shadow, Revlon ColorStay 12 hour long-wearing
eyeshadow enables color to look fresh for up to 12 hours. In 2009, the Company also
introduced Revlon Matte eye shadows. In 2010, the Company introduced Revlon
Luxurious Color eyeshadow in satin and perle finishes. The Company’s nail color and
nail care lines include enamels, treatments and cuticle preparations.

Hair-Revlon

The Company sells both hair color and haircare products worldwide. In women’s hair
color, the Company markets brands, including Revlon ColorSilk.

Beauty Tools-Revlon

~ 19 ~
The Company sells Revlon Beauty Tools, which include nail, eye and pedicure
grooming tools, such as clippers, scissors, files, tweezers and eye lash curlers. Revlon
Beauty Tools are sold individually and in sets. In 2009, the Company launched a
range of makeup brushes under the Revlon brand name.

Cosmetics-Almay

The Company’s Almay brand consists of cosmetics and skincare products. Almay
products include face and eye makeup and makeup removers. Within the face
category, Almay Smart Shade offers foundation, blush, bronzer and concealer. In
2010, it introduced Almay Smart Shade Anti-Aging makeup matches skin tone, while
also fighting signs of aging. Almay TLC Truly Lasting Color makeup and pressed
powder protect the skin for up to 16 hours of coverage. The Almay One Coat mascara
franchise includes products for lash thickening and visible lengthening. Almay eye
makeup removers are offered in a range of pads and towlettes. Almay Bright Eyes
collection is made up of eye base and concealer in one, eye shadow and a
liner/highlighter duo.

Anti-perspirants/deodorants

The Company offers anti-perspirants/deodorants in many countries. In the anti-

perspirants/deodorants product category, it markets Mitchum anti-perspirant products.
Fragrances

The Company sells a range of fragrances, including perfumes, eau de toilettes,

colognes and body sprays. The Company’s portfolio includes fragrances under brand
names, such as Charlie and Jean Nate.
Skincare

The Company sells skincare products in the United States and in global markets under
brand names, including Revlon and Almay. It also sells skincare products under
various regional brands, including Gatineau brand, as well as Ultima II.

Products Corporation competes with L’Oreal S.A., The Procter & Gamble Company,
Avon Products, Inc. and The Estee Lauder Companies Inc.

~ 20 ~
 II. Organizational Structure & Designs
Organizational designs fall into two categories, traditional and contemporary.
Traditional designs include simple structure, functional structure, and divisional
structure. Contemporary designs would include team structure, matrix structure,
project structure, boundary less organization, and the learning organization. I am
going to define and discuss each design in order to give an understanding of the
organizational design concept.

I. Traditional Designs

1. Simple Structure

A simple structure is defined as a design with low departmentalization, wide spans of

control, centralized authority, and little formalization. This type of design is very
common in small start up businesses. For example in a business with few employees
the owner tends to be the manager and controls all of the functions of the business.
Often employees work in all parts of the business and don’t just focus on one job
creating little if any departmentalization. In this type of design there are usually no
standardized policies and procedures. When the company begins to expand then the
structure tends to become more complex and grows out of the simple structure.

2. Functional Structure

A functional structure is defined as a design that groups similar or related

occupational specialties together. It is the functional approach to departmentalization
applied to the entire organization.

Revlon, Inc. is organized around the functions

of operations, finance, human resources, and
product research and development.

3. Divisional Structure

A divisional structure is made up of separate, semi-autonomous units or divisions.

Within one corporation there may be many different divisions and each division has
its own goals to accomplish. A manager oversees their division and is completely
responsible for the success or failure of the division. This gets managers to focus
more on results knowing that they will be held accountable for them.

~ 21 ~
 Wal-Mart Stores, Inc. is organized by its divisions
such as Wal-Mart Realty, Wal-Mart International,
Wal-Mart Specialty Stores, Sam's Clubs, and
Supercenters.

II. Contemporary Designs

1. Team Structure

A team structure is a design in which an organization is made up of teams, and

each team works towards a common goal. Since the organization is made up
of groups to perform the functions of the company, teams must perform well
because they are held accountable for their performance. In a team structured
organization there is no hierarchy or chain of command. Therefore, teams can
work the way they want to, and figure out the most effective and efficient way
to perform their tasks. Teams are given the power to be as innovative as they
want. Some teams may have a group leader who is in charge of the group.

Whole Foods Market, Inc. is structured entirely around

teams. Each store composed of an average of 10 self-
managed teams with a designated team leader, and the
team leaders in each store are a team -- called store team.

2. Matrix Structure

A matrix structure is one that assigns specialists from different functional

departments to work on one or more projects. In an organization there may be
different projects going on at once. Each specific project is assigned a project
manager and he has the duty of allocating all the resources needed to
accomplish the project. In a matrix structure those resources include the
different functions of the company such as operations, accounting, sales,
marketing, engineering, and human resources. Basically the project manager
has to gather specialists from each function in order to work on a project, and
complete it successfully.

In this structure there are two managers, the project manager and the
department or functional manager.

3. Project Structure

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A project structure is an organizational structure in which employees
continuously work on projects. This is like the matrix structure; however when
the project ends the employees don’t go back their departments. They
continuously work on projects in a team like structure. Each team has the
necessary employees to successfully complete the project. Each employee
brings his or her specialized skill to the team. Once the project is finished then
the team moves on to the next project.

Previously known as Oticon Holding A/S, William

Demant Holding A/S has no organizational
departments or employee job titles. All work
activities are project based, and these project teams form, disband, and form
again as the work requires. Once the project is completed, employees move
on to the next one.

4. Autonomous Internal Units

Some large organizations have adopted this type of structure. That is, the
organization is comprised of many independent decentralized business units,
each with its own products, clients, competitors, and profit goals. There is no
centralized control or resource allocation.

Asea Brown Boveri (ABB) is a global organization. It is

actually about 1,000 companies operating in more than 140
countries around the globe. The whole operation is managed by just eight
top executives at headquarters in Zurich, Switzerland, but each individual
company has its own products, resources, and so on.

5. Boundary less Organization

A boundary less organization is one in which its design is not defined by, or
limited to, the horizontal, vertical, or external boundaries imposed by a
predefined structure. In other words it is an unstructured design. This structure
is much more flexible because there is no boundary to deal with such as chain
of command, departmentalization, and organizational hierarchy. Instead of
having departments, companies have used the team approach. In order to
eliminate boundaries managers may use virtual, modular, or network
organizational structures. In a virtual organization work is outsourced when
necessary. There are a small number of permanent employees, however
specialists are hired when a situation arises. Examples of this would be

~ 23 ~
subcontractors or freelancers. A modular organization is one in which
manufacturing is the business. This type of organization has work done
outside of the company from different suppliers. Each supplier produces a
specific piece of the final product. When all the pieces are done, the
organization then assembles the final product. A network organization is one
in which companies outsource their major business functions in order to focus
more on what they are in business to do.

ChevronTexaco now spends most of their

accounting to the Philippines in order to
cut costs. They also send all their computer programming to India.

6. Learning Organization

A learning organization is defined as an organization that has developed the

capacity to continuously learn, adapt, and change. In order to have a learning
organization a company must have very knowledgeable employees who are
able to share their knowledge with others and be able to apply it in a work
environment. The learning organization must also have a strong organizational
culture where all employees have a common goal and are willing to work
together through sharing knowledge and information. A learning organization
must have a team design and great leadership. Learning organizations that are
innovative and knowledgeable create leverage over competitors.

~ 24 ~
Revlon Creates New Global Management Structure

Global Heads of Skin Care, Revlon and Almay Brands Named announced that it has
created a new organizational structure designed grow Revlon's global business by
increasing consumer demand for its new and existing products and reducing costs by
capturing significant operating efficiencies.

The new structure conforms to a more streamlined business model, creating general
managers for the Company's global brands and the skin care category who will work
with presidents of the Company's regions, which are currently Europe, Latin America
and Asia Pacific. The three global general managers and the three regional presidents
report directly to Revlon President and Chief Executive Officer, Jeffrey M. Nugent.
The Company's objective in taking this action is to achieve consistent, profitable
growth by transforming Revlon from a multinational to a global company in which
brand and category strategy are set globally but are executed locally to meet consumer
preferences and needs. Mr. Nugent commented, "Globalization is one of our key
strategies for building the new Revlon. We are committed to creating a borderless
company for which the ability to swiftly take advantage of brand, product and market
opportunities where ever they arise becomes a key competitive advantage forus.

"The full transition to a global organization will take some time but we believe that
we know the best and most expeditious way for us to get there Revlon has a strong
international base from which to build a global beauty andskin care powerhouse," he
added. Tanya Mandor has been named Executive Vice President and General
Manager, Global Revlon Brand Equity Group. Ms. Mandor, a ten-year veteran of
Revlon, most recently served as Executive Vice President of Marketing, Revlon
Brand Equity Group for Revlon Consumer Products, USA where she was responsible
for the strategic management of the brand. Ms. Mandor was recognized by
BrandWeek as one of the "Top 100 Marketers of the Year" in 1996 and 1998 for the
development and launch of ColorStay lipstick and Top Speed nail enamel.

In her new role, Ms. Mandor will have global responsibility for managing all aspects
of Revlon brand management and marketing. Cheryl L. Vitali has been named
Executive Vice President and General Manager, Global Skin Care, responsible for
leading the Company's initiative to build a leading skin care business across all brands
globally. Ms. Vitali is currently Executive Vice President, Marketing, Portfolio
Brand Development Group for Revlon Consumer Products USA. In that role, she
successfully drove Almay to consecutive year-on-year growth from 1997 through
1999 and spearheaded the roll-out of Ultima II to select mass retail outlets, while
developing the unique skin care capabilities of these franchises.

Sharon K. LeVan, has been named Executive Vice President and General Manager,
Global Almay, Ultima, and Specialty Brand Development Group. In this capacity,
she will be responsible for all aspects of marketing and brand management for the
Company's Almay, Ultima, Streetwear, and Mitchum brands. Ms. LeVan is currently
a marketing and product development consultant to the cosmetics and fragrance
industry. Ms. LeVan has demonstrated ability to grow brand franchises, having

~ 25 ~
served as Corporate Senior Vice President, Creative Marketing at The Estee Lauder
Companies, as Senior Vice President, Marketing at Max Factor and as head of
marketing and sales promotion for Revlon color, fragrance and skincare, where she
began her cosmetics career.

These three appointments are effective immediately. Regionally, Clive L. Schreuder

continues as Regional President, Europe, Africa and the Middle East; Alfred Roman
has been named Regional President, Latin America and Alvan Lewis continues as
Regional President, Asia Pacific. Formerly, Mr. Roman was President and General
Manager, Revlon Argentina. Fornow, the North America region will be managed
directly by Mr. Nugent.

The chief marketing executives for each region are now integrated into the brand and
category groups, which are headquartered in New York. In addition, the Company
announced that Robert S. Graff, 51, has been appointed Executive Vice President,
Global Business Development. In this capacity, Mr. Graff has direct responsibility
for selected Revlon businesses and is leading several key globalization and cost
reduction initiatives. Mr. Graff has extensive international finance and business
experience, and joined Revlon in 1997 as Vice President, Chief Financial Officer,
Revlon International.

As part of this reorganization, Revlon has created a Global Marketing Committee.

This committee, which will be chaired by Mr. Nugent, is comprised of the global
general managers, region presidents, Robert Graff, Richard Tarlow, President of
Tarlow Advertising and Steven G. Perelman, Vice President, Global Haircare and
Haircolor. The charter of this committee will be to assess investment priorities across
brands, categories and regions. Regarding Ms. Mandor, Mr. Nugent said, "Tanya
brings invaluable experience to the job and a deep understanding of what the core
Revlon brand equity means. By managing this brand globally, we believe that we will
improve our ability to realize the full commercial potential of new Revlon products by
moving more swiftly and executing more effectively when they are launched." Ms.
Mandor said, "The Revlon brand is not nearly as well developed worldwide as it has
the potential to be. Its powerful position in the U.S. speaks to the quality of our
products and the relevance of our positioning. I believe that the brand can be just as
meaningful and successful in many other markets in the world."

At Revlon, Ms. Mandor, 47, has held numerous positions in marketing and general
management. She joined the company in 1989, first serving as a marketing director
and then as Vice President of Marketing for Ultima II. During this time, Ms. Mandor
managed the Ultima II treatment, cosmetics and fragrance business. In 1994, she was
appointed Vice President of Marketing, Revlon Cosmetics. In this capacity, she was
instrumental in the introduction of ColorStay Lipcolor, the first transfer resistant
lipstick.

Regarding the creation of a group to spearhead Revlon's efforts to expand its global
skin care business, Mr. Nugent said, "Building a global skin care business is a key
strategic priority for Revlon, and Cheryl is the perfect individual to lead the charge for
us. She has done a terrific job with Almay and Ultima, putting them on firm ground
for continued growth. Her business savvy and entrepreneurial instincts are just what
we need for this challenge." Revlon currently sells skin care products worldwide

~ 26 ~
under the Revlon, Almay and Ultima brands, and in Europe under such brands as
Jeanne Gatineau. Ms. Vitali commented, "The opportunity for Revlon in the skin care
category is tremendous. Globally, we have a solid portfolio of quality skin care
products and powerful brands that represent terrific platforms for growth.
Additionally, our Revlon Research Center, our Jeanne Gatineau Institute and several
joint development projects that are currently underway represent competitive assets in
this fast growing category. Our challenge will be to focus on products and markets
with the highest commercial potential and swiftly take advantage of them."

Ms. Vitali, 38, has been responsible for leading Almay to its third consecutive year of
share growth in the mass volume retail class of trade. The Almay line includes One
Coat Mascara, One Coat Lip Makeup and Stay Smooth Lip Makeup which are among
the top fifteen products at leading retailers. She has also sparked the resurgence of the
Ultima II brand by repositioning and re-launching it into the mass market. Today,
Ultima II is distributed to over 9,000 doors, as compared with 2,000 doors two years
ago. For Ultima II, she has led the re-launch of Glowtion and the creation of the skin
brightener franchise. The anti-perspirants and deodorants for which she is responsible
include the Mitchum and Almay brands. Mitchum now has the highest share of
market in its history and is one of Revlon's most profitable businesses. In addition,
her oversight of new business development at Revlon led to a focus on creating new
products in the treatment category.

Commenting on the appointment of Ms. LeVan to lead Almay, Ultima II and the
specialty brands, Mr. Nugent said, "We are excited to welcome Sharon back to
Revlon. She has deep experience in all aspects of product development and
marketing, and has a broad industry perspective that can help us build on the solid
foundation that the Portfolio Brand team has built over the past several years."

Ms. LeVan, 48, formerly served as Corporate Senior Vice President, Creative
Marketing at The Estee Lauder Companies, which she joined in 1992, developing new
marketing and distribution strategies for each of Lauder's five companies. Ms. LeVan
joined Lauder from Max Factor, where as Senior Vice President Marketing, she
launched Jaclyn Smith's California fragrance, No-Color Mascara and 2000 Calorie
mascara, among others. For the past five years, Ms. LeVan has been CEO of her own
company, specializing in marketing and product development for the cosmetics and
fragrance industry, and has been a partner in Linda Rose International, a manufacturer
of prestige hand and nail products. Her first experience in the cosmetics industry was
at Revlon, which she joined in 1973, starting in the Moon Drops Division, followed
by Charlie cosmetics and the Classic Revlon Divisions, and ultimately serving as Vice
President of Marketing and Sales Promotion for color, skincare and fragrance. Ms.
LeVan commented, "I am thrilled to return to my roots. The Almay and Ultima II and
brands are among Revlon's greatest assets. Their potential is unlimited. And
Streetwear and Mitchum are perfectly targeted to meet the needs of key consumer
segments. This is a very exciting portfolio of brands."

Revlon is a worldwide leader in cosmetics, skin care, fragrance, and personal care.
The Company's vision is to become the world's most dynamic leader in global beauty
and skin care. A web site featuring current product and promotional information can
be reached at http://www.revlon.com. Revlon brands include Revlon(R), Almay(R),

~ 27 ~
Ultima II(R), Charlie(R) and Flex(R) and they are sold in approximately 175
countries and territories.

Following its expansion in recent years, the powerful Estée

Lauder beauty group has slimmed down and taken on a global
outlook.

Estée Lauder has booked itself in for a major makeover in a bid to

boost profits.

Last week the company completed its biggest management shake-

up since the mid-Eighties. The management structure has been slimmed down from
22 global brand leaders to four group presidents with responsibility for the company's
core brands.

The move is designed to reflect the cosmetic giant's decision to operate globally with
a "single vision and a unified marketing strategy", claims the company (MW May
31).

One city analyst says: "Reorganisation with a strategic emphasis on core brands and
products is a key theme in cosmetics and toiletries, and a strategy very much in vogue
among major players - especially at a time when they are not only focusing on new
launches but particularly on acquisitions."

Ever since Estée Lauder transformed itself from a family-owned business to a public
company in November 1995, it has been building its stable of brands through various
acquisitions.

In 1997, Estée Lauder acquired the Bobbi Brown line of cosmetics, developed by a
US professional make-up artist; bought botanical beauty company Aveda for $300m
(&£180m) ; and entered the teen market with its purchase of Jane cosmetics. The
following year, it signed a deal to make and market cosmetics and fragrances for
Donna Karan International. Then, in 1999, it bought Stila Cosmetics and Jo Malone, a
London-based seller of some 200 skincare and fragrance products.

~ 28 ~
Last year competitor Revlon also created a global management structure to streamline
its business model and transform itself from a multinational to a global company.

Laura Kiernan, investor relations director at Revlon, US, says a shortfall in the
company's earnings triggered the reorganisation which was seen as a way to drive
profitability. The company's chief executive, George Fellows, resigned in 1999 and
was replaced by Jeff Nugent, former president of Neutrogena.

Kiernan says: "With the new structure we are setting the strategies globally but
executing the same locally to meet customers' needs and preferences."

But industry insiders say Estée Lauder, with its vast portfolio of 16 brands, is in a
different league to its competitors and has been raking in profits for several years.

The company recently reported net sales for the third fiscal quarter of $1.10bn
(&£0.8bn), a six per cent increase on the same period last year.

Nic Sochovsky, consumer analyst at Lehman Brothers, says: "To me, the best
consumer goods businesses are those that are family run. In order to create brand
equities, you have to think long term, and family-run companies such as Estée Lauder
can afford to do that."

The founding Lauder family owns 57 per cent of the company, according to its most
recent annual report.

Claire Briney, research manager at Euromonitor, says the company's management

restructure is more likely to be a response to the slump in the US economy and falling
department-store sales.

She predicts the company will turn its focus to "swiping away customers from other
brands rather than flooding its own customers with more of their products".

"Companies such as Estée Lauder, with varied brands, now have to come with new
ideas to attract customers. It might focus on diversifying more into their standalone
stores," says Briney.

The company refuses to reveal any details of how the changes will affect the
marketing or its marketing and advertising budgets.

Janet Bartucci, Estée Lauder's global communications vice-pres ident, says: "The
restructure is about doing away with the false divide between domestic and global
markets. We will now e speaking globally with one voice, but that does not
necessarily mean any shift in our emphasis towards marketing or advertising."

She adds at this point there are no redundancies planned, as staff are being reassigned,
and denies the company is considering a global shake-up of its estimated &£700m
creative and media business, following the management reshuffle (MW May 31).

~ 29 ~
The global creative account for the Estée Lauder brand is held by US agency A/R. UK
media, worth an estimated &£8.5m is handled by CDP. Advertising for the company's
other brands is created in house.

The Euromonitor cosmetics and toiletries IMIS database puts Estée Lauder sixth on
the list of top ten companies in terms of share of retail value of total sales, with a 3.5
per cent of the world market. The top three places are held by Unilever, L'Oréal and
Procter & Gamble, and Lauder's closest competitor is L'Oreal with an eight per
cent share.

An industry insider says the recent management changes at Estée Lauder are an
indication that the company is growing into its role as a public company: "With the
number of brands it has - from mass market such as Jane to high-end like Estée
Lauder and Clinique - it has to grapple with the fact it could get very arduous
operating all those brands through different markets," says the insider.

A leaner and revitalised Estée Lauder may well find it produces enough sales to take
on its closest competitor L'Oreal.

~ 30 ~
 CHAPTER TWO
RESEARCH METHODOLOGY

~ 31 ~
Research Methodology:
What is Research?

Conceptually, research is defined as the orderly search for truth. Operationally,

research is:

1. An orderly investigation of a defined problem,

2. Using an appropriate scientific method or methods,

3. To gather adequate and representative evidence,

4. Producing conclusions drawn from logical reasoning without bias, that can be
validated,

5. And yield general principles or laws that may be applied in similar conditions.

A research methodology defines what the activity of research is, how to proceed, how
to measure progress, and what constitutes success. AI methodology is a jumbled
mess. Different methodologies define distinct schools which wage religious wars
against each other.

Scope of research

1. National innovative capacity : modeling, measuring and comparing

national capacities
2. Designing efficient incentive systems for invention and innovation :
intellectual property rights, prizes, public subsidies
3. Research in EPFL labs : new economics of science
4. New R&D methods and the production of reliable knowledge in sectors
which lagged behind
5. New models of innovation : open, distributed systems and the role of
users
6. Other issues to be developed

Types of Research Methodology

First there is the purpose: The method section answered two main questions: How
was the data collected or generated? How was it analyzed? In other words, it shows
your reader how you obtained your results. The research methods must be appropriate
to the objectives of the study. The methodology should also discuss the problems that

~ 32 ~
were anticipated and explain the steps taken to prevent them from occurring, and the
problems that did occur and the ways their impact was minimized.

How Research Works?

Like every system of this world, research also follow certain rules and take the help of
certain organized procedures in order to get the intended result. In a word, a research
works on its methods to serve its true purpose in any area of the knowledge domains.
So, for working of a research project, you need to approach your study area in a
systematic way, which is also recognized and familiar with the rest of the world-what
I mean by this is that your research method must be recognized by all over the world
or at least by the majority of the scientific community.

As a research method you can choose one of the following or a

combination:

Experiments-this is used in exploratory type research. What types of experiments

necessary depends on the research topic. This is very time consuming and expensive
type of research method.

Surveys-this is used in empirical or exploratory type of research, usually used in

business studies. You can use questionnaires or even interview some specific group of
people to get your research result.

Observation – observational data can be recorded in order to find empirical

relationship between different parameters of your research. One disadvantage of this
type of research is that it is very time-consuming and expensive method.

Existing data-this type of research is done on the available data to find any findings
or patterns in the data. This is the most effortless, time-saving and less-expensive type
of research, but to carry out this type of research researchers need to be extra careful
in order to find the real findings out of the existing data-a slight mistake can lead you
to wrong direction-waste of time.so, the accuracy of this type of research mainly
depends on the experience of the researchers, but it has the advantage of give you
some important clue about any novel findings.

Data Collection Methods:

 Data collection is a term used to describe a process of preparing and
collecting data - for example as part of a process improvement or similar project.
 The purpose of data collection is to obtain that the  information to keep on
record, to make decisions about important issues, to pass information on to others.

~ 33 ~
 Primarily, data’s are collected to provide information regarding a specific
topic. Data collection which contains the following activity.

1. Pre collection activity – Agree goals and  target data also definitions, methods
2. Collection – data collection
3. Present Findings – usually involves that the some form of sorting analysis
and/or presentation.

Types of Data Collections:

Primary data collection definition
Secondary data collection definition

Types of sources of information:

Division of the qualitative sources of information, including:

Documentary sources: They each manuscript or in print, video or Mliser on a

pot of information sources.

Usually come in the form of documents. It is divided into two categories:

reference sources and third party reference sources.

Documentary sources: each container is not stored on any type of information

sources. But derives verbally or preview of sources.

And can also distinguish between the sources according to the degree it
approached direct in dealing with the phenomenon.

Data collection is the process of gathering the specific information used to answer
the research questions. There are a number of issues associated with data
collection, including the use of primary or secondary data, survey design,
sampling, survey administration, and increasing response rates.

SAMPLING:
When administering a questionnaire there are two options as to who should
complete the survey. Option one is to give the questionnaire to everyone in the
targeted population. This is called a census. However, a census is usually not
practical or cost effective. For instance, you may not be able to survey every one
of your customers from last year to determine levels of customer satisfaction with
your products. Consequently, in order to save time and money, only a sample or
subset of the target population receives the questionnaire.

~ 34 ~
When selecting individuals for a sample, either a probability approach or a non
probability approach can be used. Probability samples are those where each
element of the population has a known probability of being selected.

CHAPTER THREE
FINDINGS ANA ANALYSIS

~ 35 ~
FINDINGS AND ANALYSIS

1. In 1932, the United States was in the middle of one of the lowest points in the
country's economic history. During this time of the Great Depression, two brothers
named Charles and Joseph Revson had an idea to create nail polish using pigments
instead of the normal dyes. They believed this would make the polish last longer and
would allow for a larger variety of colors. To come up with their formula, they
partnered with a local chemist named Charles Lachman. Using the Revson name, plus
an "L" for Lachman, they named their new nail polish company "Revlon." Within 6
years, the 3 men had turned Revlon into a million-dollar company, selling only their
special nail polish.

2. Throughout the 1930s and 1940s, Revlon slowly began to create new products.
They added a selection of manicure tools and nail scissors, and then followed up with
a line of lipsticks, also based on their use of pigments rather than dyes. By the 1950s,
the company had branched out even further, buying a line of diabetes drugs,
sportswear companies and supplement lines. Most of these non-cosmetic ventures
were largely unsuccessful, so Revlon began to refocus on its core products, including
makeup and skin care. They sold off the unsuccessful lines and introduced "Charlie"
perfume and several professional skin care products during the 1970s. Since then, the
company has maintained its focus on beauty products and has enjoyed much success
in that arena.

3. From the time of the company's founding through the 1970s, Revlon was led by
founder Charles Revson. Though his brother Joseph helped found the company,
Charles was named CEO, and led the company through its first 40 years. In 1955,
Revlon began to offer stock for sale to the public, and by the next year the company
was listed on the New York Stock Exchange. In 1985, the company was sold to the
conglomerate Pantry Pride for $2.7 billion. Pantry Pride still owns Revlon, but it has
sold off nearly 75 percent of the company's holdings.

4. During the 1950s, Revlon began to rely heavily on print advertising. Full-page
color ads featuring Revlon model Dorian Leigh were some of the first cosmetic ads
used by any company. As Revlon began to sell its products overseas, it took a bold
advertising move, and used American models in international ads. International
audiences loved the "American look" and became loyal Revlon customers. Since that
time, the company has relied heavily on modeling contracts with female movie stars
and supermodels. Some of the most iconic ads include Shelley Hack for Charlie
perfume and the Cindy Crawford makeup ads of the 1990s.

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5.Revlon in the 21st Century:
 Today, Revlon is the leading cosmetics company in the United States.
The current board of directors has sold off many poor-performing lines
and returned the company to its core brands. Today, the Revlon
Corporation consists of Revlon and Almay cosmetics, Mitchum
Deodorant, and Jeanne Gatineau skin care products. By focusing on its
core product groups, Revlon management hopes to increase profits,
reversing a downward trend that started in 2001
 An industry insider says the recent management changes at Estée
Lauder are an indication that the company is growing into its role as a
public company: "With the number of brands it has - from mass market
such as Jane to high-end like Estée Lauder and Clinique - it has to
grapple with the fact it could get very arduous operating all those
brands through different markets," says the insider.
 A leaner and revitalised Estée Lauder may well find it produces
enough sales to take on its closest competitor L'Oreal.
 The new structure conforms to a more streamlined business model,
creating general managers for the Company's global brands and the
skin care category who will work with presidents of the Company's
regions, which are currently Europe, Latin America and Asia Pacific.
 Revlon is a worldwide leader in cosmetics, skin care, fragrance, and
personal care. The Company's vision is to become the world's most
dynamic leader in global beauty and skin care.
 Globally, Revlon has a solid portfolio of quality skin care products and
powerful brands that represent terrific platforms for growth.

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CONCLUSION

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 CONCUSION:

Today, Revlon is the leading cosmetics company in the United States. The current
board of directors has sold off many poor-performing lines and returned the company
to its core brands. Today, the Revlon Corporation consists of Revlon and Almay
cosmetics, Mitchum Deodorant, and Jeanne Gatineau skin care products. By focusing
on its core product groups, Revlon management hopes to increase profits, reversing a
downward trend that started in 2001

An industry insider says the recent management changes at Estée Lauder are an
indication that the company is growing into its role as a public company: "With the
number of brands it has - from mass market such as Jane to high-end like Estée
Lauder and Clinique - it has to grapple with the fact it could get very arduous
operating all those brands through different markets," says the insider.

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REFERENCES

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 :References

www.revlon.com

www.revlon.com/Revlon-Home/Revlon.../Corporate.aspx

www.fundinguniverse.com/company.../Revlon-Inc-Company-History.html

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