INDUS INSTITUTE OF HIGHER EDUCATION

Chartered by. Government of sindh & recognized by the Higher education commission.

COURSE: strategic management

SUBMITTED TO: Sir MEHMOOD SHAH

SUBMITTED BY: QURAT.UL.AIN JAMEEL Sheikh

TITLE: DATED: 15.12.2010

TOPICS
AKNOWLEGMENT MISSION. VISION

Evaluation of mission statement REVELON PRODUCTS Environmental analysis SWOT ANALYSIS
Strategy formulation framework

Strategic analysis Conclusion, scope of report, recommendation

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.ACKNOWLEDGEMENT We would like to thanks the almighty ALLAH who give us the strength and courage to complete this report and after that we would like to say thanks to our respected SIR MEHMOOD SHAH who made our report comprehensible and possible for us without his guidance this report would not have been possible. Thank YOU .

Charles Lachman. Revlon offered an entire manicure line. skin care. Revlon has developed a long-standing reputation as a trendsetter in the world of cosmetics. In November 1955. and personal care. but it reached $30 per share within 8 weeks. By 1940. 1932. Army. by Charles Revson and his brother Joseph. Since 1932. This acquisition made it possible for Revlon to produce its own manicure and pedicure instruments. During this time of the Great Depression. In 1937. and added lipstick to the collection. Company Founding In 1932. By the end of the war. the company bought Graef & Schmidt. Revlon went public. the United States was in the middle of one of the lowest points in the country's economic history. Revlon was listed as one of America's top five cosmetic houses. Revlon started selling the polishes in department stores and drug stores. Using pigments instead of dyes. Revlon developed a variety of new shades of opaque nail enamel. Revlon's vision is to provide glamour. a cutlery manufacturer seized by the government in 1943 because of German business ties. two brothers named .History Revlon was founded in the midst of the Great Depression.S. which was honored in 1944 with the ArmyNavy µE¶ Award for Excellence. The IPO price was $12 per share. instead of buying them from outside supply sources. fragrance. who contributed the "L" in the Revlon name. During World War II Revlon created makeup and related products for the U. In six years the company became a multimillion dollar organization.[3]Starting with a single product ² a new type of nail enamel ² the three founders pooled their resources and developed a unique manufacturing process. excitement and innovation through quality products at affordable prices. Expanding its capabilities. along with a chemist.

In 1955. In 1985. so Revlon began to refocus on its core products. Charles was named CEO. Revlon began to offer stock for sale to the public. plus an "L" for Lachman. Pantry Pride still owns Revlon. and led the company through its first 40 years. Using the Revson name. Most of these non-cosmetic ventures were largely unsuccessful. they partnered with a local chemist named Charles Lachman. To come up with their formula. s Products Throughout the 1930s and 1940s. The current board of directors has sold off many poor-performing lines and returned the company to . Revlon slowly began to create new products. and then followed up with a line of lipsticks. Revlon is the leading cosmetics company in the United States. selling only their special nail polish. They added a selection of manicure tools and nail scissors.7 billion. Ownership From the time of the company's founding through the 1970s. They sold off the unsuccessful lines and introduced "Charlie" perfume and several professional skin care products during the 1970s. Since then. the 3 men had turned Revlon into a million-dollar company. Revlon in the 21st Century Today. the company had branched out even further. including makeup and skin care. buying a line of diabetes drugs. the company has maintained its focus on beauty products and has enjoyed much success in that arena. Revlon was led by founder Charles Revson. sportswear companies and supplement lines. they named their new nail polish company "Revlon. the company was sold to the conglomerate Pantry Pride for $2. By the 1950s. and by the next year the company was listed on the New York Stock Exchange." Within 6 years. Though his brother Joseph helped found the company. also based on their use of pigments rather than dyes. They believed this would make the polish last longer and would allow for a larger variety of colors.Charles and Joseph Revson had an idea to create nail polish using pigments instead of the normal dyes. but it has sold off nearly 75 percent of the company's holdings .

fragrances. and Ultima II and Gatineau in skincare. and Jeanne Gatineau skin care products. the Revlon Corporation consists of Revlon and Almay cosmetics. reversing a downward trend that started in 2001. skincare and other beauty care products. as well as the Almay brand.its core brands.. Revlon management hopes to increase profits. The Groups' principal activities include manufacturing. . beauty tools. Today. Revlon Super Lustrous and Revlon Age Defying franchises. It is a direct and indirect majority-owned subsidiary of MacAndrews & Forbes Holdings Inc.. anti-per spirants/deodorants. Charlie and Jean Nate in fragrances. Business Description: Revlon. Inc. The Group¶s products are sold worldwide and marketed under brand names. marketing and selling an array of cosmetics. Mitchum Deodorant. Mitchum anti-per spirants/deodorants. including the Almay Intense i-Color and Almay Smart Shade franchises. By focusing on its core product groups. Revlon in beauty tools. women's hair color. including the Revlon Color Stay. Revlon Color Silk in women's hair color. in cosmetics.

In 1947 Revlon introduced "Bachelor's Carnation" and in 1948. Dorian Leigh.Advertising Strategies Up until the 1940s. Revlon introduced matching nail polish and lipsticks with exotic and unique names. Revlon began launching full-color photographic advertisements in major magazines and stores across the country. Some of these ads were f "Paint the Town Pink" and 1945's "Fatal Apple" with Dorian Leigh. "Sweet Talk". starred in some of Revlon's most memorable advertisements of all time. One of the world's first supermodels. Beginning in 1945. Cecil Beaton. Revlon's magazine ads were drawn by hand and mostly in black and white. Revlon introduced a red lipstick and nail enamel called "Where's the Fire?" Revlon used the word "fire" again later in their "Fire and Ice" ads. In 1950. . These ads were taken by the top fashion photographers of the day including Richard Avedon. and John Rawlings.

MISSION STATEMENT Revlon Mission Revlon Inc. Technology: no Concern of survival. Evaluation of mission statement: Customer: it is customer ±oriented as it focus to fulfill the needs of the customer. Products and Services: Revlon is a company leader in the cosmetic and personal product industry. Markets: the firm is successful in market as it has implemented an aggressive R&D investment. Vision is to satisfy the needs of their customers with glamour and excitement that they provide at an affordable price. mission is to emerge as the leader in cosmetic and personal care throughout the world. Revlon takes pride in manufacturing the top skin care and strives to please young and older woman alike. growth and profitability: yes Philosophy ± It focuses on global expansion. Revlon vision Revlon Inc. .

Self concept ± yes Concern ofp ub licima ge = yes Concern of employees no .

Revlon Hierarchy Board of Directors Chairman of the Board Chairman and Chief Executive Officer Vice Chairman of the Board Senior Executive Vice President Vice Chairman of the Board Senior Executive Vice President President and Chief Executive Officer Retired Deputy Chief Executive Officer Retired Managing Director Chief Creative Officer Retired President Executive Vice Chairman and Chief Administrative OfficerChairman Management Vice Chairman of the Board President and Chief Executive Officer Executive Vice President and Chief Operating Officer Executive Vice President and Chief Financial Officer Executive Vice President. Chief Administrative Officer and General Counsel Executive Vice President and Chief Science Officer Senior Vice President and Managing Director .

.Senior Vice President and General Manager Senior Vice President. Asia Pacific Region Senior Vice President and Managing Director. Middle East. and International Finance Senior Vice President Senior Vice President. Treasurer and Investor Relations Senior Vice President. Corporate Controller. Chief Accounting Officer. Deputy General Counsel and Secretary Senior Vice President and Managing Director. Europe. and Africa Region Senior Vice President and General Manager. Global Supply Chain and Manufacturing Senior Vice President. Global Chief Marketing Officer Senior Vice President.

Revlon Products Revlon offers the products in following categories: Eyes: Eye shadows Lash colors Eyeliners Mascara Nail: .

Nail: Nail color Enamel Face: Powder Foundation Concealer Blush Hair: .

super stores cosmetics section. 550 Place: available at all the retail outlets Promotion: they mostly promote their products in beauty salons. Leaves hair in better condition. 100% gray coverage. Hair looks silkier. even color from root to tip that stays beautiful between colorings. shinier and healthier than before you colored. Available in a range of 40 brilliant shades Price: Rs. ammonia-free formula and after-color conditioner with nourishing silk proteins. sponsoring fashion shows and advertising on electronic as well as print media.Shampoo Styling Conditioner Revlon Hair Color: Color Silk Revlon® ColorsilkŒ gives you natural-looking. It is formulated to penetrate every strand with its gentle. .

650 Place: Revlon lipsticks are available at all the retail cosmetics outlets. new shades and a new look! Formulated with a breakthrough new LiquiSilk technology. . irresistible lips. Promotion: They mostly promote their products in beauty salons. Price: Rs. Available in 44 beautiful shades for smooth. super stores cosmetics section. sponsoring fashion shows and TV programs related to makeup. smooth color and silkenriched moisturizers and vitamins.Revlon Super Lustrous Lipstick Revlon Luxurious Color Revlon Super Lustrous Lipstick has a new formula. Revlon Super Lustrous Lipstick pampers lips with rich.

streaks and brush marks. super stores.Revlon Nail Enamel Revlon Nail Enamel gives up to 10 days of lasting color & shine*. . Promotion: they promote their nail enamels in beauty salons. Revlon's exclusive silkprotein shield works to instantly help even out the surface of the nail while rising above color to automatically smooth away bubbles. cosmetics retail outlets. Price: Rs. 465 Place: Revlon nail enamel is available at all the cosmetics retail outlets.

Revlon Colorstay Matte Complexion .

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Revlon has many different categories of which it sells product and they a cosmetically skincare. Furthermore. excitement and innovation to consumers Through high quality products at affordable prices.1. Revlon owns several brands.External analysis: Opportunities: y There is a lot of room for international expansion. Current Corporate and Business Strategies Revlon¶s believe is in individual values and the integrity of the firm and its actions. The company established the Revlon Learning Center and training programs to communicate its principles to employees b).. it supplies everything from makeup to fragrances to hair products. and therefore once it enters new markets it should be able to establish itself without much difficulty. : 2. some of these challenges. which allows it to reach out to customers of all income ranges. Lately the company has been experiencing many challenges to their success. personal care fragrance ultimate goal is to emerge as the dominate cosmetics and personal care firm through the twenty-first century. The company established a strong team of experienced managers that work to achieve leadership in the cosmetics and skincare industry.Environmental analysis: (a). Despite all of seen some strong within the company. y . revlon is a well-known brand.Internal Analysis: The Revlon Company¶s goal is to provide glamour.

such as China and Africa. and can afford to take additional brands under its wings. restrictive trade policies of other countries may become an issue. exchange rate fluctuations can impact the company y bottom line profit considerably SWOT Analysis . This can prove to be especially beneficial if it buys out brands in foreign markets. Inadequate research and development. Also. and testing can result in lawsuits.y Revlon is a successful company. if a product Impacts customers adversely. Revlon has the prestige and brand loyalty. Because revlon sells products in different parts of the world. Therefore. to be able to expand further into the Fashion industry. to be able to increase its market share. and respond accordingly to retain its market share. it needs to be aware of what the competitors are doing. by introducing products like handbags or jewellery y y Revlon¶s reputation and credibility allows it to sell products at a higher price Threats y y y Intense competition is the major thereat for revlon.

products. services Opportunisties y y y y y y y y Acquisitions Asset leverage Financial markets (raise money through debt.Strengths y y y y y y y y y y y y y y Cost advantage Asset leverage Effective communication Talented Human resources High R&D Innovation Online growth Loyal customers Market share leadership Strong management team Strong brand equity Strong financial position Supply chain Competitive Pricing Weaknesses y y y y y y y y y Low R&D Low market share No online presence Not innovative Not diversified Poor supply chain Weak management team Weak. damaged brand Ubiquitiouegory. etc) Emerging markets and expansion abroad Innovation Online Product and services expansion Takeovers Threats .

or services Price war . politics. etc) Exchange rate fluctuations Lower cost competitors or imports Maturing categories. taxes. products.y y y y y y y y Competition Cheaper technology Economic slowdown External changes (government.

45 WEIGHT RATING WEIGHTED RATING WEIGHTED RATING WEIGHTED SCORE SCORE FINANCIAL POSITION CONSUMER LOYALTY ADVERTISING 0.18 3 0.18 GLOBAL EXPANSION 0.60 4 0.43 3.40 3 0.40 0.45 4 0.43 4 0.10 4 0.40 4 0.15 3 0.45 3 0.30 4 0.48 .06 3 0.45 4 L¶Oreal 0.15 3 0.40 4 0.Strategy formulation framework Revlon CRITICAL SUCCSES FACTOR PRICE 0.40 3 0.45 3 0.40 2 0.15 3 0.18 3 0.10 3 0.10 3 0.60 TOTAL 1 3.45 MARKET SHARE 0.30 3 0.40 PRODUCT QUALITY INNOVATION 0.30 4 0.40 0.60 Estee lauder 3 0.10 4 0.20 3 0.30 MANAGEMENT 0.10 4 0.30 0.33 3.

The company has low competitive advantage compared to top competitors.) y y y STRATEGIC ANALYSIS: The strategic analysis shows that the company has some internal and external problems.competitors y y Estee Lauder Maybelline L'Oreal (owned by L'Oreal Cover Girl (owned by Procter and Gamble Avon (owned by Avon Inc. . This means that the company will be in a poor position to change with the market.

or $0. Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30.S. Excluding favorable foreign currency fluctuations of $2. while benefitting from lower advertising rates. as compared to expense of $2.5 million compared to $59. Net cash provided by operating activities in the third quarter of 2010 was $9.2 million compared to $951. Net sales in the first nine months of 2010 were $952. Inc. Excluding unfavorable foreign currency fluctuations of $5.1 million for the same period of last year.2 million in the same period last year. compared to $326.5 million in the third quarter of 2009. Net income in the third quarter of 2010 was $12. 2010.24 per basic and diluted share compared to income from continuing operations before income taxes of $25.6 million and income from continuing operations of $23.4 million compared to $5.3 million compared to $66. net sales were essentially .8 million.45 per basic and diluted share for the same period of last year. Adjusted EBITDA in the third quarter of 2010 was $54.3 million in the first nine months of 2009.2%. net sales were essentially unchanged year over year as lower net sales in the United States were largely offset by higher net sales in the Europe.y y y Revlon has a low rate of return and cash flow problems The Internal and External Strategic Position and Action Evaluation shows that the company has a weak competitive position a negative growth in a stable industry. The Internal-External Matrix shows that Revlon has average weighted scores. a decrease of 2.2 million in the third quarter of 2009. The $0. or $0.24 per basic and diluted share.6 million benefit from income taxes in the third quarter of 2010. Operating income and Adjusted EBITDA in the third quarter of 2010 included higher advertising spending. Operating income in the third quarter of 2010 was $39. 2010 Revlon. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30.5 million in the same period last year.7 million.45 per basic and diluted share.3 million compared to $50. Net sales in the third quarter of 2010 were $319. was primarily attributable to favorable resolution of tax matters in the U. The company reported income from continuing operations before income taxes of $12 million and income from continuing operations of $12. compared to $23. Middle East and Africa region and Latin America region.1 million or $0. and lower taxable income in certain jurisdictions. Revlon. the company increased media pressure year-over-year. CapEx was $4.0 million.3 million in the same period last year.1 million.5 million. in the same period last year.6 million or $0.

9 million for the same period of last year.1 million in the first nine months of 2010 compared to $158.60 per basic and diluted share.0 million compared to $77.8 million related to the re-measurement of Revlon Venezuela's balance sheet as a result of Venezuela's currency devaluation.2 million in the same period last year.4%.9%.1 million.0 million and income from continuing operations of $35. or $0. or $0.7 million or $0. Net income in the first nine months of 2010 was $31.0 million in the first nine months of 2010. representing an operating income margin of 11.59 per basic and diluted share compared to income from continuing operations before income taxes of $36. Adjusted EBITDA was $177.0 million. Net cash provided by operating activities in the first nine months of 2010 was $50. compared to $108.8 million or $0.6 million in the same period last year. Operating income was $132.70 per basic and diluted share in the same period last year. compared to $36.69 per basic and diluted share for the same period of last year . representing an operating income margin of 13.7 million of expenses associated with the March 2010 refinancing of the company's revolving credit and term loan facilities and a foreign currency loss of $2. CapEx was $12 million compared to $10.5 million in the same period last year. The company reported income from continuing operations before income taxes of $40 million and income from continuing operations of $30. Net income in the first nine months of 2010 included $9.unchanged year-over-year.

required for business and competitor intelligence needs Contains a study of the major internal and external factors affecting Revlon. Reasons to Purchase y y y y Support sales activities by understanding your customers¶ businesses better Qualify prospective partners and suppliers Keep fully up to date on your competitors¶ business structure. locations and subsidiaries as well as a list of products and services and the latest available statement from Revlon. Inc. history. Inc. Inc. key executives. strategy and prospects Obtain the most up to date company information available .Scope of the Report y y y Provides all the crucial information on Revlon. in the form of a SWOT analysis as well as a breakdown and examination of leading product revenue streams of Revlon. business description.-Data is supplemented with details on Revlon. Inc.

I have goo skin. Another con/negative I have about this foundation is that I wish that Revlon made this a pump bottle. In conclusion. I don¶t need to cake my face up constantly to hide blemishes I guess. I remember putting it on a couple of weeks ago to go to a friend¶s birthday party. but I don¶t use it often so I don¶t think being used to the smell will happen anytime soon. One thing I like about this product is that it doesn¶t make my face feel heavy or oily. it blends in so well! It also lasts long. but overall I still looked good! It also comes off easy. There aren¶t any spots. I don¶t have to use any harsh astringents or make up removers to take this off. it was in a club so I already knew I was going to be dancing and partying so I might have a risk of looking like a hot mess! Well guess what? 4:00 am and my face wasn¶t runny! Of course my hair was a little wild and my eye shadow may have rubbed off. It takes me longer to apply this due to it leaking everywhere. Of course eventually I will get used to it. . it works great! It also keeps the afternoon shine/glow that tends to appear when I¶m in the sunlight. and a combination of both dry and oil! So when I discovered this product I was so excited! I don¶t use foundation that much unless I¶m going somewhere like a dinner date. It¶s wonderful! I totally recommend it. clumps. I hope they improve that issue.conclusion This is the best foundation ever! I love it! Revlon really out did themselves on this one. a wedding. and that means less foundation for me to use! No fair! Those are my only cons though. or patches that form after applying it on to my face. which is also sensitive. and I fell in love with it after my first application. Anyways. it works the way it¶s supposed to without leaving my face looking cakey or fake. etc. I bought this foundation for about $13. this doesn¶t do this! I was surprised! One con I have about this foundation though is the smell. Only when I¶m going somewhere that I know I will be taking photos. it¶s a perfect match. the Revlon Color stay Foundation for Combination skin is great.00 at my local Rite Aid.

It should work on customizing its products.Recommendations y y y Revlon should introduce its own retail outlets such as ³The Body Shop´ so that its customers can buy its all range of products under one roof. . It should work on its advertising and promotion of its products in Pakistan for awareness among consumers.

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