PHILIPPINE CHRISTIAN UNIVERSITY

DASMARINAS, CAVITE
COLLEGE OF BUSINESS AND TECHNOLOGY

CASE STUDY
REVLON

Submitted by: Caryl Jane R. Toledanes

Submitted to: Dr. Jeanet Parreno

I. INTRODUCTION

Revlon is a universal company that sells products for skin care, cosmetics
,personal care fragrance and professional products. Based on my research it was found
that in 1932 also it began in the nail polish market, expanding with lipsticks. Revlon has
consistently lost revenue besides struggling with debts over the past six years.

II. EXECUTIVE SUMMARY

Year 1932 when Revlon had been developed by Charles Reson who’s brother of Joseph
and chemist Charles Lachman. “L’ is Lachman's contribution to make the name “REVLON”. By
selling opaque long-lasting nails to beauty salons which were distributed through department
stores and few particular pharmacies the business found initial success. Revlon had relaunched
its cosmetics division in 1990’s and secured its position as the market leader. They introduced
their first transfer- resistant lip colored and developed to build the whole Colorstay Collection.
Revlon also faces obstacles: it has almost $2.3 billion debt, and also having trouble catalyzing
new items to market.

III. TIME CONTEXT

It was conducted in year 2015 to current

IV. VIEW POINT

V. CENTRAL PROBLEM
Declining sales with its net income due to intensive competition and mounting
debt.
VI. STATEMENT OF OBJECTIVES

MUST: To resolve financial issues by being one of the top of the formulated product in
order to keep the business competitive.

WANTS: To bring back the business profit and cash flow in line.

VII. AREAS OF CONSIDERATION

STRENGTHS
● Strong brand recognition.
● Continuous production of new products.
● Well developed relationship with well known companies.
● Had built a good image and relations with the public.

WEAKNESSES
● Target market is only limited for young and old women.
● Long term debts.
● Not budget friendly.

OPPORTUNITIES
● Men is also user of make-up now.
● Product recognition through social media.
● Product adaptiveness based on ethnicity.

THREATS
● Increasing high quality and budget friendly cosmetics.
● Intense competition within the market.
● Unsold expired manufactured products.

VIII. ALTERNATIVE COURSES OF ACTION

1. Reformulate quality but cheaper of the particular cosmetic products

Advantages:

● Could catch up consumers attention

● Increase number of sales
● budget friendly
 Disadvantages:
● Long process of research and approval before releasing to market.
● Consumers concerned about product safety
● Loss of its Authentic formulation
● Risky

2. Strengthen brand awareness through the use of social media.

Advantages:

● Has the power in reaching audiences in different parts of the world.

● The product will gain popularity and market share by using smart advertisements.
● Increases the target audience in the market.

Disadvantages

● Very costly in terms of post boosting.

● Massive amount of time when it comes to researching.

3. Develop new products

Advantages:

● Would help to contribute to the sales profitability of the company.

● Can catch consumer’s attention and interest.
● Expand consumer’s options.
● Can gain influencers because of the quality.
● Could follow trends.

Disadvantages
● Another cost for the company.
● Requires massive amounts of research time.
● Takes time of importing raw materials

IX. RECOMMENDATION

I recommend ACA 3 which is Developing new products. It might be a long

process to make but surely helps the company to improve and get in line with the trends. By this
it will surely help the company to contribute its profitability sales to rid off the financial issues.
Also, they are well-known products which can easily introduced their new products.
 X. DETAILED PLAN OF ACTION

ACTIONS PERSON TIME FRAME BUDGET

INVOLVED

Conducting of Management 12- 18 months 500,000

product raw materials
and development

Product testing and Employees/Manage 6-12 months 0

qualification ment

Safety and Management 6 months 250,000

Regulatory
Requirements

Manufacturing and Management 5 months 0

Marketing

Post- Market Retailers/Distributo Continuational depends

Surveillance rs/Management/Em
ployees