Revlon Ida

CORPORATE PROFILE ? ? ? ? Revlon is a worldwide cosmetics, hair color, beauty tools, fragrances, skincare, anti-per spirants/deodorants and beauty care products company. Revlon is a global color cosmetics, hair color, beauty tools, fragrances, skincare, anti-per spirant / deodorants and beauty care products company Websites featuring current product and promotional information can be reached at www. revlon. com, www. almay. com and www. mitchumman. com. The Company's brands, which are sold worldwide, include Revlon ®, Almay ®, ColorSilk ®, Mitchum ®, Charlie ®, Gatineau ® and Ultima II ®.CORPORATE PROFILE CONT†¦ Type: Public Traded as NYSE: REV Industry: Cosmetics, skin care, fragrance, personal care Founded: 1932 Founder(s): Joseph & Charles Revson, Charles Lachman Headquarters: New York City, New York, United States Key people: Alan T. Ennis, President and CEO CORPORATE PROFILE CONT†¦ Revenue: US$1. 3 billion (2009) Operating income: US$170. 8 million (2009) Net income: US$821. 20 million (2009) Total assets: US$794. 20 million (2009) Employees: 6,800 Parent: MacAndrews & Forbes Holdings: 60% (74% of votes) FMR Corp. : 20% Website: http//www. evlon. com/(US) VISION & MISSION Revlon Inc. Vision is Glamour, Excitement and innovation through High-quality Products at Affordable Prices. ? Revlon Inc. Mission is â€Å"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†. ? HISTORY ? ? ? ? Revlon was founded in the midst of the Great Depression, 1932, by Charles Revson and his brother Joseph, along with a chemist, Charles Lachman, who contributed the â€Å"L† in the Revlon name.Starting with a single product — a new type of nail enamel — the three founders pooled their resources and developed a unique manufacturing process. Using pigments instead of dyes, Revlon developed a variety of new shades of opaque nail enamel. In 1937, Revlon started selling the polishes in department stores and drug stores. HISTORY CONT†¦ In six years, the company became a multimillion dollar organization. ? By 1940, Revlon offered an entire manicure line, and added lipstick to the collection. ? During World War II, Revlon created makeup and related products for the U.S. Army, which was honored in 1944 with the Army-Navy â€Å"E† Award for Excellence. ? By the end of the war, Revlon was listed as one of America's top five cosmetic houses. ? REVLON IN INDIA ? Revlon was the first International Color Cosmetics brand to be launched in India (1995). ? It all began in the year 1994, with formation of Modi-Revlon Pvt. Ltd. , a collaboration between Modi-Mundipharma Pvt. Ltd. (a joint venture between the Umesh K. Modi Group of India and Mundipharma Group of Switzerland) and Revlon of USA.REVLON IN INDIA CONT†¦ ? Today, Revlon is a name to reckon with in the beauty industry in India . It has added glamour and color to the lives of many a women to make them look and feel beautiful and confident. ? ? Revlon has brought to the modern Indian women the excitement and fun of experimenting with trend setting colors and innovative products. The company offers an extensive range of high quality products in different categories namely, color cosmetics, skincare, fragrances, hair care and hair colors. ? REVLON IN INDIA CONT†¦ ?Revlon in India enjoys immense consumer franchise with its world famous brands like Super Lustrousâ„ ¢, Revlon ® Nail Enamel, Colorstay ®, Street Wear ®, Revlon Absolute Câ„ ¢, Flex ®, Charlie ® , Fire & Ice ®, Colorsilk ® and many more. Modi-Revlon ceaselessly continues to introduce new products and color trends keeping in view the preferences of the Indian consumer. It draws expertise from Revlon’s state-of-the-art Research Center in Edison, New Jersey (USA) and complies with its stringent product quality standards. ? ? FAMOUS BRANDS FAMOUS BRANDS FAMOUS BRANDSTOP COMPETITORS FOR REVLON, INC. Avon Products, Inc. ? The Procter & Gamble Company ? L'Oreal SA ? SWOT ANALYSIS STRENGTH ? ? ? ? ? ? ? ? ? ? ? Revlon is the major player in cosmetics, skin care, fragrance and personal care products. It has long history of 75 years. Famous brand especially among the women’s. Despite of heavy debt and net losses from last few years. Product development is the main focus area for Revlon. Strong research and development. Revlon products are sold in more than 100 countries. Revlon 43 percent sales are from United States market.It has been supporting several health programs for Women. Advertising is one of the key areas for Revlon. Revlon aims to provide quality products. Distribution channels are well managed that the reason Revlon products are used in more than 100 countries of the world. SWOT ANALYSIS Weaknesses †¢ Weak financial position due to net losses and heavy debts. †¢ Cutting down number of jobs reduce employee trust on the Company. †¢ Continuous changes in the Organizational Structure may impact the performance for employees. †¢ Besides advertising other marketing areas are he weak. SWOT ANALYSIS Opportunities †¢ Revlon is currently facing financial problems so joint ventures or partnership with other players in the industry may open the doors of new opportunities. †¢ Utilize all marketing methods to promote its products; it will help to boost the sales of the company. †¢ Develop products for male segment. SWOT ANALYSIS Threats †¢ Intense competition with major players of the industry including Procter & Gamble, Unilever, L’Oreal, †¢ Rapid changes in fashion may require heavy budgets for product development & marketing.Revlon has to find some financial assistance to support its operation to sustain its position in the industry. †¢ Revlon selling its products through websites but it haven’t made efforts to develop relations with the customers through online channels. †¢ Government instability and variation in exchange rate in few countries †¢ Focused towards woman segment PRODUCTS Eye Products ? Face Products ? Lip Products ? Nail Products ? Skin Care Products ? EYE PRODUCTS FACE PRODUCTS LIP PRODUCTS NAIL PRODUCTS SKIN CARE PRODUCTS BORROWED STRATEGYIn the 1960s, Revson â€Å"Segmented Revlon Inc into different divisions, each focusing on a different market†. ? He borrowed this strategy from General Motors. ? Each division had its own target customer: ? a. b. c. d. e. f. Revlon, the largest and most popular-priced brand Princess Marcella Borghese, upscale/international Ultima II, premium Natural Wonder, juniors Moon Drops, dry skin Etherea, hypo-allergenic SALES STRATEGY 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 an d models. ? Japanese women loved the American look, and the sales for 1962 came to almost $164 million. ? STRATEGIC GOAL ? Strategic Goal is to profitably grow their business. 2011 was a year of many notable achievements, as they continued to execute their business strategy despite continued uncertain global economic conditions. ? From a financial perspective, they grew net sales for the second year in a row, sustained competitive operating margins, achieved their fourth consecutive year of positive free cash flow and improved their capital structure. From a marketplace perspective, they introduced innovative, high-quality, consumer-preferred products across their entire portfolio, they acquired the SinfulColors brand, and they signed two of Hollywood’s most sought-after actresses, Emma Stone and Olivia Wilde, as Global Brand Ambassadors for their Revlon brand. ? ELEMENTS OF BUSINESS STRATEGY They are focused on the five elements of their business strategy, specifically, to ? (i) build their strong brands; ? (ii) develop their organizational capability; ? (iii) drive their company to act globally; ? (iv) increase their operating profit and cash flow; and ? v) improve our capital structure. DEBT LIMITS FLEXIBILITY ? But, here's our concern†¦ Revlon's balance sheet is heavily loaded with debt, so much so that in 2007, the interest payments due exceeded its operating profit (as measured by EBIT) for that year. Even in 2009, the interest payments exceeded 60% of EBIT, making the earnings highly volatile and vulnerable to market fluctuations and interest ratesy. ? DEBT LIMITS FLEXIBILITY ? As a result, Revlon's R spending at 1. 7% of sales amounting to $24 million is dwarfed by L'Oreal's 3. 7% at $666 million. Also, given Revlon's sales at close to $1. billion compared to $24 billion for L'Oreal and $7. 9 billion for Estee Lauder leaves it with much less money to spend on marketing, a crucial factor for success in cosmetics industr ? CORPORATE CSR Overv iew of Revlon's Corporate Social Responsibility Framework ? Please find in the link below Revlon's Corporate Social Responsibility Framework (the â€Å"Revlon CSR†) which is disseminated to all of our employees worldwide. ? The Revlon CSR is monitored and overseen by two of our most senior executives – our Chief Science Officer and our Chief Administrative Officer. The Revlon CSR includes the Purpose, Standards and Measurements in each of the key areas of Safety, Social, Ethical, Regulatory and Environmental. ? CORPORATE CSR The stated purposes are as follows: ? Safety: Provide our consumers with highquality, safe and efficacious products and our valued employees with a safe workplace. ? Social: Enhance women's lives through our products and philanthropic efforts. ? Ethical: Conduct business in an ethical manner. ? Regulatory: Ensure that our products and operating facilities meet or exceed all applicable standards, globally. Environmental: Reduce the environmental imp act of our operations. ? WHAT IF REVLON FOCUSED ON COLOR COSMETICS AND PHASED OUT SKIN CARE AND/OR FRAGRANCES? Revlon is most well known for color cosmetics and commands a significant market share of over 20% in US, which itself constitutes over 18% of the global market for color cosmetics. ? Given, the company average EBITDA margin(Earnings before depreciation, impairment and amortization) for color cosmetics and moderate growth rates in excess of 3%, it would be reasonable to focus on this product segment and to further strengthen Revlon’s market share in the same. We estimate that color cosmetics constitute over 60% of Trefis price estimate of Revlon’s stock. ? CONCLUSION ? In the current scenario, there is forecast Revlon to lose share in the future across all product segments due to its inability to match the competition in marketing and R&D. ? Hence, focusing the limited funds available on a few preferred product categories presents a more viable option for the f uture