REVLON, INC.

-2007
By: Syeda Muzeadhy Fatima, Moshin Javed Sethi & Noorullah
Khan
Sec-G BBA IV

14-03-2012
 Revlon, INC-2007

Contents

Introduction...............................................................................................................3
Vision Statement........................................................................................................3
Proposed Vision Statement........................................................................................3
Mission Statement.....................................................................................................4
Proposed Mission Statement.....................................................................................4
External Audit - Opportunities & Threats.................................................................5
Internal Audit - Strengths & Weaknesses..................................................................6
SWOT Matrix............................................................................................................7
Competitive Profile Matrix (CPM)...........................................................................9
Financial Ratio Analysis For the year 2006............................................................10
External Factor Evaluation EFE..............................................................................13
Internal Factor Evaluation IFE................................................................................15
IE Matrix.................................................................................................................16
Space Matrix............................................................................................................17
Grand Strategy Matrix.............................................................................................19
The Quantitative Strategic Planning Matrix (QSPM).............................................20
Recommendations...................................................................................................23
References...............................................................................................................24

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 Revlon, INC-2007

Introduction
Revlon Inc. has a 75- year history of providing high quality products at affordable prices to
women. Revlon products are sold in more than 100 countries around the world with sales outside
the United States comprising 43% of sales in 2006. Revlons product category includes skin care,
cosmetics, personal care, fragrance and professional products. Some of the companys most
recognize brand names are Revlon, Ultima II, Colortay, Almay, Charlie, Flex, Mitchum, Jean
Nate and ColorSilk. The company continues to introduce new products. Almay Intense Eye
Color (package that combines eye liner, mascara and eye shadow) was successfully introduced in
2005 and Almay Smart Shade (colorless foundation that changes to correct color when applied)
and ColorStay Smooth Lip Color were introduced in 2006.

Revlon Inc. was formed in 1932 by brothers Joseph Revson and Charles Lachman with a $300
investment. Charles Lachman, who contributed the "L" in the REVLON name. Starting with a
single product nail enamel unlike any before it - the three founders pooled their meager resources
and developed a unique manufacturing process. The company began its success with opaque
long-lasting nail enamel sold to beauty salons. Revlon sold its nail enamel through department
stores and selected drugstores. Revlon contributed directly to the war effort, by manufacturing
first aid kits and dye markers for the navy. At war's end, Revlon began to produce manicure and
pedicure instruments. This company initially began with only one single product-nail enamel.
Today company's product portfolio comprises off various different products such as:

Cosmetics
Skin Care Products
Personal Care Products
Fragrance

According to the companys web site, Revlon is a world leader in cosmetics, skin care, fragrance
and personal care and is a leading mass-market cosmetics brand.

Vision Statement
"Our vision is to provide glamour, excitement and innovation through quality products at
affordable prices."

Proposed Vision Statement

"Our vision is to provide beauty at its best through environmentally safe and high quality
products at affordable prices."

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 Revlon, INC-2007

Mission Statement
" To emerge as dominant cosmetic and personal care product firm in twenty first century by
appealing to young people with its variety of brands"

Compan Customer Product Market Technolog Concer Philosoph Self Concer Concern
y s s& s y n for y Concep n for for
Services 3 4 Surviva 6 t Public employee
1 2 l 7 Image s
5 8 9

Revlon Yes Yes Yes No Yes No No No No

The above mentioned mission statement lacks few important components which are essential for
a successful mission statement such as the important aspect of corporate social responsibility. It
is important for a company to be environmentally, ethically and socially a responsible one.
Hence below another mission statement has been proposed considering various important
components.

Proposed Mission Statement

"Revlon aims to provide its prestigious customers (1) with a fulfilling experience of beauty and
care globally(3). We believe in servicing our valuable customers by providing them with a
solution through our quality products(2). Revlon also enrich its environment and community by
giving back love and care(8). We aim to be a company which is economically successful, has
motivated workforce (9) and is committed to provide excellence(6)through innovation (7) We aim
to diversify our product portfolio(5) through extensive research and development (4)."

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 Revlon, INC-2007

External Audit - Opportunities & Threats

Opportunities
1. Target market is not just confined to women but potential
market of men is also increasing for skin products.
2. Old age women are entering to cosmetic industry.
3. Aging population are a significant market for aging
cosmetics.
4. Baby boomer Americans are a significant market for the
cosmetic/personal care industry.
5. Women in China, India and Middle East are rapidly growing
interested in purchasing more cosmetics and fragrances.
6. Market for hair coloring has expanded with teenagers and
adults wanting more vibrant coloring options.
7. Potential for sales of personal care products around the
world is excellent.
8. Baby boomers have high levels of disposable income and are
brand loyal customers.
9. Social media is now being widely used for promotion
10. The trend of makeover accelerates the demand of beauty
products.
Threats
1. Intense Competition from competing brands
2. Global ethnic-racial issues
3. Gas prices are high and rising leaving most Americans with
less disposable income for purchasing cosmetics
4. Retailers selling their own brands such as Gap, Victoria's
Secret.
5. Consumer concern about product safety and use of animal
testing by cosmetic companies.
6. Older people tend to spend less on cosmetics
7. Competing brand products available for comparatively low
prices.
8. Availability of substitute products in a wide range.
9. Environmental concerns are increasing.
10. Retailers reducing inventory levels

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 Revlon, INC-2007

Internal Audit - Strengths & Weaknesses

Strengths
1. Socially responsible company as mentioned Revlon and its
employees are active in supporting women's health programs
and other community efforts
2. Strong research and development programs as stated Revlon
spent more than $25 million on services and research that
help women
3. Increased operating efficiency and better use of capital assets
4. Use of internet as medium of sales (website)
5. Continuous new product development
6. Its primary customers are large mass merchandisers and
chain drug stores.
7. Has a wide product range
8. Provides high quality products at affordable prices
9. Holds a strong goodwill since its a known brand
10. Has a wide range of nail enamel colors
Weaknesses
1. Excessive long-term debt
2. Lower net sales than other competing brands
3. Less diversified portfolio as compared to other competitors
4. Lack of financial resources
5. Lost grounds in cosmetics due to unwise diversification in
health products
6. A weaker financial position as current assets and total assets
have decreased while current and total liabilities have
increased.
7. New brand was not welcomed as it was comparatively
expensive
8. Less focus on improving financial position
9. Most of their products such as nail enamel, have a shorter life
because they use color instead of dyes.
10. Had to cut down on promotional budget to reduce operational
costs.

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 Revlon, INC-2007

SWOT Matrix
Strengths Weaknesses
1. A socially responsible company as 1. Excessive long-term debt
mentioned Revlon and its employees are 2. Lower net sales than other competing
active in supporting women's health brands
3. Less diversified portfolio as compared to
programs and other community efforts
2. Strong research and development other competitors
4. Lack of financial resources
programs as stated Revlon spent more
5. Lost grounds in cosmetics due to unwise
than $25 million on services and research
diversification in health products
that help women 6. A weaker financial position as current assets
3. Increased operating efficiency and better
and total assets have decreased while
use of capital assets
current and total liabilities have increased.
4. Use of internet as medium of sales
7. New brand was not welcomed as it was
(website)
comparatively expensive
5. Continuous new product development
8. Less focus on improving financial position
6. Its primary customers are large mass
9. Most of their products such as nail enamel,
merchandisers and chain drug stores.
have a shorter life because they use color
7. Has a wide product range
8. Provides high quality products at instead of dyes.
10. Had to cut down on promotional budget to
affordable prices
9. Holds a strong goodwill since its a known reduce operational costs.
brand
10. Has a wide range of nail enamel colors

Opportunities SO & WO Strategies

1. Target market is not just confined to women
but potential market of men is also increasing SO-Strategies
for skin products. 1. Through strong research and
2. Old age women are entering to cosmetic development Revlon can come up with
industry. more vibrant hair coloring options and
3. Aging population are a significant market for can cater to expanding hair coloring
aging cosmetics. market and to eventually increase its
4. Baby boomer Americans are a significant
market share. (S2, O6)
market for the cosmetic/personal care 2. With the strong goodwill and popular
industry. brand name, they can cater brand loyal
5. Women in China, India and Middle East are
customers who have high levels of
rapidly growing interested in purchasing
disposable income. (S9, O8)
more cosmetics and fragrances. WO-Strategies
6. Market for hair coloring has expanded with 1. Can increase sales by catering to men
teenagers and adults wanting more vibrant as well since they are a potential
coloring options.

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 Revlon, INC-2007

7. Potential for sales of personal care products market. (W2, O1)

around the world is excellent. 2. Can improve its financial position by
8. Baby boomers have high levels of disposable catering to markets other than US such
income and are brand loyal customers. as China, India and Middle East as
9. Social media is now being widely used for
women of these areas are rapidly
promotion
growing interested in purchasing
10. The trend of makeover accelerates the
cosmetics and fragrances. (W8, O5)
demand of beauty products.

Strengths Weaknesses
1. A socially responsible company as 1. Excessive long-term debt
mentioned Revlon and its employees 2. Lower net sales than other competing
are active in supporting women's health brands
3. Less diversified portfolio as compared to
programs and other community efforts
2. Strong research and development other competitors
4. Lack of financial resources
programs as stated Revlon spent more
5. Lost grounds in cosmetics due to unwise
than $25 million on services and
diversification in health products
research that help women 6. A weaker financial position as current
3. Increased operating efficiency and
assets and total assets have decreased while
better use of capital assets
current and total liabilities have increased.
4. Use of internet as medium of sales
7. New brand was not welcomed as it was
(website)
comparatively expensive
5. Continuous new product development
8. Less focus on improving financial position
6. Its primary customers are large mass
9. Most of their products such as nail enamel,
merchandisers and chain drug stores.
have a shorter life because they use color
7. Has a wide product range
8. Provides high quality products at instead of dyes.
10. Had to cut down on promotional budget to
affordable prices
9. Holds a strong goodwill since its a reduce operational costs.
known brand
10. Has a wide range of nail enamel colors

Threats ST & WT Strategies

1. Intense Competition from competing ST-Strategies
brands
2. Global ethnic-racial issues 1. Revlon is a socially responsible
3. Gas prices are high and rising leaving company hence realize consumer
most Americans with less disposable concern about safe products and thus
income for purchasing cosmetics provides high quality products at
4. Retailers selling their own brands such affordable prices. (S1, T5)
2. Continuous new product development
as Gap, Victoria's Secret.
helps Revlon to compete with
5. Consumer concern about product safety
substitute products available in wide
and use of animal testing by cosmetic
range. (S5, T8)

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 Revlon, INC-2007

companies.
6. Older people tend to spend less on
WT-Strategies
cosmetics
7. Competing brand products available for
comparatively low prices.
8. Availability of substitute products in a
wide range.
9. Environmental concerns are increasing.
10. Retailers reducing inventory levels
1. Should use competitive pricing to
bring in new brands rather than
competitively higher prices. (W7, T7)
2. Should improve sales to fight back the
intense competition from competing
brands. (W2, T1)

Competitive Profile Matrix (CPM)

Revlon Estee Lauder L'Oreal
Critical Success Factors Weight Rating Score Rating Score Rating Score
Advertising 0.20 4 0.8 3 0.6 4 0.8
Product Quality 0.20 4 0.8 4 0.8 4 0.8
Price Competitiveness 0.10 3 0.3 3 0.3 3 0.3
Management 0.10 2 0.2 2 0.2 3 0.3
Financial Position 0.15 1 0.15 3 0.45 3 0.45
Customer Loyalty 0.14 3 0.42 2 0.28 3 0.42
Global Expansion 0.10 3 0.3 3 0.3 3 0.3
Market Share 0.01 2 0.02 3 0.03 3 0.03
Total 1 2.99 2.96 3.4

CPM identifies the major competitors of Revlon. The total sum shows that Loreal is the best out
of the three. This can only be stated from a calculation perspective but doesnt stands true from
comparison point of view because all these values are on the basis of own judgment.

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 Revlon, INC-2007

Financial Ratio Analysis For the year 2006

Financial Condition

1. Current Ratio = Current Assets/ Current Liabilities

Revlon Avon Estee Lauder

488/377.2 = 1.29 3334.4/2550.1= 1.31 2176.9/766.3 = 1.51

Current Ratio which comes out to be greater than 1 is satisfactory. Though in this case Revlon's
current ratio is greater than 1 which suggests satisfactory but if compared from the other two
competitors Revlon needs to improve a bit to get more stable.

2. Quick Ratio = Current Assets - Inventory/ Current Liabilities

Revlon Avon Estee Lauder

488 - 186.5/377.2 = 0.79 3334.4 - 900.3/2550.2 = 0.95 2176.9-766.3/1438.2 = 0.98

From an industry point of view, 1 is satisfactory however less than one doesnt sounds good.
Revlon's quick ratio is less than one which means they need to work on their financial issues to
reach to the satisfactory level.

3. Debt-to-Equity Ratio = Total Debt/Total Stockholder's Equity

Revlon Avon Estee Lauder

1784.5/(1229.8) = - 1.45 1897.7/790.4 = 2.4 698.2/1622.3 = 0.43

Price Ratio

4. Price Earnings Ratio = Market Price Per Share/ Earning Per Share

Revlon Avon Estee Lauder

0.01/(0.62) = - 0.02 0.25/2.13 = 0.12 0.1/2.63 = 0.04

This ratio shows the attractiveness of the firm on the equity market as in how much an investor is
willing to pay for one share of the company. In this case Revlon's ratio is lower in comparison to

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 Revlon, INC-2007

Avon and Estee lauder. It doesnt sounds to be an attractive figure to the investors as they don't
expect to get the highest returns from this company as opposed to the other ones in the industry.

Profit Margins

5. Gross Profit Margin = Gross Profit/Sales

Revlon Avon Estee Lauder

785.9/1331.4 = 0.59/59% 5242.7/8677.3 = 0.64/60.4% 4777.2/6463.8 = 0.74/74%

The above results show that there is still 59% margin available for the firm to cover its operating
expenses. As compared to other two brands Revlon essentially needs to work on its margins.

6. Net Profit Margin = Net Income/Sales

Revlon Avon Estee Lauder

(251.3)/1331.4 = -0.188/18.9% 477.6/8677.3 = 0.055/5.5% 244.8/6463.8 = 0.037/3.78%

The above value has come out to be negative which is not favorable for the firm. it shows that
firm is incurring losses and firm essentially needs to improve its situations.

Investment Return %

7. ROE = Net Income/Stockholders Equity

Revlon Avon Estee Lauder

(251.3)/(1299.8) = - 0.204/20.4% 477.6/2550.1 = 0.187/18.72 244.2/1622.3 = 0.15/15%

Since in 2006 the company is facing loss and has shareholder's deficiency and no equity
therefore the sign is negative. All these are bad signs for the company and they need to improve
their financial position in time.

8. ROA = Net Income/Total Assets

Revlon Avon Estee Lauder

(251.3)/931.9 = -0.27/27% 477.6/5238.2 = 9.12% 244.2/3784.1 = 6.45%

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 Revlon, INC-2007

For every one dollar of assets the company yields a loss of ($0.27) which is not good. Firm is
earning nothing out of the assets being employed and from competitive perspective the situation
is worse too.

Asset Turnover Ratio = Sales/Total Assets

Revlon Avon Estee Lauder

1331.4/443.9 = 2.99 times 8677.3/5238.2 = 1.66 times 6463.8/849.2 = 7.6 times

This ratio shows that company is utilizing its assets efficiently.

Growth Rates

Sales

Revlon Avon Estee Lauder

1367.1-1331.4/133.4 *100 9845.2-8677.3/8677.3*100 7,037.5-6463.8/6463.8*100
= 2.68% = 13.46 % = 8.87%

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 Revlon, INC-2007

External Factor Evaluation EFE

Key External Factors Weight Rating Weighted Score
Opportunities
1. Target market is not just confined to women 0.09 3 0.27
but potential market of men is also increasing
for skin products.
2. Old age women are entering to cosmetic 0.04 2 0.08
industry. 0.03 3 0.09
3. Aging population are a significant market for
aging cosmetics. 0.04 3 0.12
4. Baby boomer Americans are a significant
market for the cosmetic/personal care
0.06 3 0.18
industry.
5. Women in China, India and Middle East are
rapidly growing interested in purchasing more
0.07 4 0.28
cosmetics and fragrances.
6. Market for hair coloring has expanded with
teenagers and adults wanting more vibrant
coloring options. 0.05 3 0.15
7. Potential for sales of personal care products
around the world is excellent. 0.05 3 0.15
8. Baby boomers have high levels of disposable
income and are brand loyal customers. 0.04 2 0.08
9. Social media is now being widely used for
promotion 0.03 2 0.06
10. The trend of makeover accelerates the demand
of beauty products.
Threats
1. Intense Competition from competing brands 4 0.36
2. Global ethnic-racial issues 3 0.21
3. Gas prices are high and rising leaving most 1 0.04
Americans with less disposable income for
purchasing cosmetics 2 0.06
4. Retailers selling their own brands such as Gap,
Victoria's Secret.
3 0.15
5. Consumer concern about product safety and use of
animal testing by cosmetic companies.
6. Older people tend to spend less on cosmetics 3 0.15
7. Competing brand products available for 3 0.18
comparatively low prices.
8. Availability of substitute products in a wide range. 3 0.12
9. Environmental concerns are increasing. 3 0.09
10. Retailers reducing inventory levels 2 0.08

Total 1 2.9

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 Revlon, INC-2007

The above weighted average score has come out to be 2.9 which is greater than the industry
average score that is 2.5. This means the company is doing above average. However there is still
enough room for improvement because the highest total weighted average score would be 4.0.
By looking at ratings this business needs to counter the tough competition from other brands and
should work on ways to increase its sales.

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 Revlon, INC-2007

Internal Factor Evaluation IFE

Key Internal Factors Weights Ratings Weighted Score
Strengths
1. Socially responsible company as mentioned 0.14 4 0.6
Revlon and its employees are active in
supporting women's health programs and
other community efforts
2. Strong research and development programs 0.10 4 0.4
as stated Revlon spent more than $25 million
on services and research that help women
3. Increased operating efficiency and better use 0.05 3 0.21
of capital assets
4. Use of internet as medium of sales (website)
0.02 3 0.06
5. Continuous new product development
6. Its primary customers are large mass 0.03 3 0.12
merchandisers and chain drug stores. 0.03 3 0.09
7. Has a wide product range
8. Provides high quality products at affordable 0.03 3 0.09
prices 0.04 3 0.12
9. Holds a strong goodwill since its a known
brand 0.04 4 0.16
10. Has a wide range of nail enamel colors 0.02 3 0.06

Weaknesses
1. Excessive long-term debt 0.1 1 0.1
2. Lower net sales than other competing brands 0.04 1 0.04
3. Less diversified portfolio as compared to 0.02 1 0.02
other competitors
4. Lack of financial resources
0.06 1 0.06
5. Lost grounds in cosmetics due to unwise
0.02 1 0.02
diversification in health products
6. A weaker financial position as current assets
and total assets have decreased while current 0.13 1 0.13
and total liabilities have increased.
7. New brand was not welcomed as it was
comparatively expensive 0.04 1 0.04
8. Less focus on improving financial position
9. Most of their products such as nail enamel, 0.04 1 0.04
have a shorter life because they use color 0.03 1 0.03
instead of dyes.
10. Had to cut down on promotional budget to
reduce operational costs. 0.02 1 0.02

Total 1 2.41

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 Revlon, INC-2007

The above weighted average score which is 2.41, shows that company's internal position is quiet
weak since its score is below industry average score which is 2.5. The company needs to
essentially work on its financial issues in order to get hold of this weakening position which
might lead to serious consequences if not catered properly in time.

IE Matrix

Grow & Build

Hold & Maintain Harvest or Divest

Market Penetration Retrenchment

Product Development Divestiture

The EFE and IFE total weighted scores of Revlon fall in cell V of the IE Matrix. Divisions that
fall into this category can be managed best with Hold and Maintain Strategies which are Market
Penetration and Product Development. Revlon is already into continuous product development
and should now also focus on market penetration strategy.

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 Revlon, INC-2007

Space Matrix
(-6 worst, -1 best) Competitive Advantage (CA) (+1 worst, +6 best) Industry Strength (IS)
Product Quality -1 Growth Potential 4
Product Life Cycle -4 Resource Utilization 4
X Market Share -4 Ease of entry into market 3
Axi Control over Suppliers -3 Profit Potential 3
s & Distributors

Average -3 Average +3.5

Total X axis Score = 0.5
Financial Strength (FS)
(+1 worst, +6 best) (-6 worst, -1 best) Environmental Stability (ES)
Working Capital 2 Price range of competing -4
Y Leverage 1 products
Axi Inventory Turnover 3 Competitive pressure -3
s Earnings per share 2 Price elasticity of demand -4
Risk involved in business -2

Average +2 Average - 3.2

Total Y axis Score = -1.2

FS

Conservative Aggressive

Market Penetration Backward, forward, horizontal

Market Development integration
Product Development Market penetration
Related Diversification Market development
Product Development
Diversification (related or unrelated)

CA IS
Defensive
Competitive

Retrenchment ( 0.5, -1.2 ) Backward, forward, horizontal

Divestiture integration
Liquidation Market penetration
Market development
Product Development

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 Revlon, INC-2007

ES

This particular space matrix tells us that Revlon should pursue a competitive strategy which
includes backward, forward and horizontal integration; market penetration; market and product
development. It suggests that the company needs to work on its internal dimensions. Though the
company is into continuous product development, it should now also consider entering into new
markets too.

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 Revlon, INC-2007

Grand Strategy Matrix

In the above matrix, Revlon is positioned in the second quadrant which means that they need to
evaluate their present approach to the marketplace seriously. Though their industry is growing,
they are unable to compete effectively may be due to financial constraints as mentioned earlier,
they had to consolidate some sales and marketing functions to reduce operational cost. They need
to analyze why their present approach has come out to be ineffective and what best changes they
can make to improve their competitiveness.

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 Revlon, INC-2007

The Quantitative Strategic Planning Matrix (QSPM)

Strategic Alternatives
Key Factors Improve Backward forward,
marketing or horizontal
strategy integration
Key External Factors Weight AS TAS AS TAS
Opportunities
1. Target market is not just confined to 0.09 4 0.36 -
women but potential market of men
is also increasing for skin products.
2. Old age women are entering to 0.04 4 0.16 3 0.12
cosmetic industry.
3. Aging population are a significant 0.03 3 0.09 -
market for aging cosmetics.
4. Baby boomer Americans are a
significant market for the 0.04 - -
cosmetic/personal care industry.
5. Women in China, India and Middle 0.06 - -
East are rapidly growing interested
in purchasing more cosmetics and
fragrances.
6. Market for hair coloring has
expanded with teenagers and adults 0.07 3 0.21 -
wanting more vibrant coloring
options.
7. Potential for sales of personal care 0.05 - -
products around the world is
excellent. 0.05 - -
8. Baby boomers have high levels of
disposable income and are brand
loyal customers. 0.04 4 0.16 -
9. Social media is now being widely
used for promotion 0.03 - -
10. The trend of makeover accelerates
the demand of beauty products.

Threats

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 Revlon, INC-2007

1. Intense Competition from 0.09 2 0.18 -

competing brands
2. Global ethnic-racial issues 0.07 - -
3. Gas prices are high and rising 0.04 - -
leaving most Americans with less
disposable income for purchasing
cosmetics
4. Retailers selling their own brands
0.03 3 0.09 -
such as Gap, Victoria's Secret.
5. Consumer concern about product
0.05 1 0.05 -
safety and use of animal testing
by cosmetic companies.
6. Older people tend to spend less
on cosmetics 0.05 4 0.2 4 0.2
7. Competing brand products
available for comparatively low 0.06 -
prices.
8. Availability of substitute products 0.04 -
in a wide range.
9. Environmental concerns are 0.03 -
increasing.
10. Retailers reducing inventory 0.04 2 0.08 3 0.12
levels

Strengths
1. Socially responsible company as 0.14 - -
mentioned Revlon and its
employees are active in
supporting women's health
programs and other community
-
efforts 0.10 -
2. Strong research and development
programs as stated Revlon spent
more than $25 million on services
and research that help women 0.05 3 0.15 2 0.25
3. Increased operating efficiency
and better use of capital assets 0.02 -
-
4. Use of internet as medium of
sales (website) 0.03 -
5. Continuous new product -
development
6. Its primary customers are large 0.03
- -
mass merchandisers and chain
drug stores. 0.03
0.04 - -
7. Has a wide product range
8. Provides high quality products at

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 Revlon, INC-2007

affordable prices 0.04 - -

9. Holds a strong goodwill since its
a known brand 0.02 -
10. Has a wide range of nail
-
enamel colors

Weaknesses
1. Excessive long-term debt 0.1 - -
2. Lower net sales than other 0.04 - -
competing brands
3. Less diversified portfolio as 0.02 4 0.08 3 0.06
compared to other competitors
4. Lack of financial resources
0.06 - 2
5. Lost grounds in cosmetics due to
0.02 -
unwise diversification in health
products
6. A weaker financial position as
current assets and total assets 0.13 - 3 0.39
have decreased while current and
total liabilities have increased.
7. New brand was not welcomed as
it was comparatively expensive 0.04 3 0.12 -
8. Less focus on improving financial
position 0.04 - -
9. Most of their products such as
nail enamel, have a shorter life 0.03 - -
because they use color instead of
dyes.
10. Had to cut down on 0.02 4 0.08 - 0.08
promotional budget to reduce
operational costs.

Total 1 1.22
2.01

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 Revlon, INC-2007

The total attractiveness score of Alternative 1 versus Alternative 2 is 2.01 vs. 1.22 suggests that
Revlon should go for strategy 1which is improving marketing strategy. This is an excellent way
to boost sales and promote the brand. Revlon is already a market leader and people are aware of
the brand. However, through more aggressive advertisement campaigns, sales promotions, mail-
in discounts/coupons, increase internet presence and bill boards. They can further heighten brand
awareness, build customer loyalty and create appeal for their products by new and existing
customers.

Recommendations
1. The company should sell the products to new markets such as India, China and
Middle East.

2. The company should take the prices of competitors into account when they
make a decision such as pricing, packaging distribution etc.

3. The company should develop products according to the needs created in the
market such as developing products for men.

4. The company should open its retail outlets to resolve the problem of retailers
cutting back inventory.

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 Revlon, INC-2007

5. The financial situation can be improved by retrenchment strategy and

improving its efficiency.

References
1. http://www.annualreports.com/Company/784
2. http://www.annualreports.com/HostedData/AnnualReports/PDFArchive/avp
2008.pdf
3. http://www.annualreports.com/HostedData/AnnualReports/PDFArchive/avp
2008.pdf
4. http://www.google.com.pk/imgres?
q=revlon&um=1&hl=en&sa=N&biw=1366&bih=673&tbm=isch&tbnid=A0
n0-SmQaee2xM:&imgrefurl=http://www.infobarrel.com/Revlon_Coupons_-
_Instant_Savings_and_Free_Samples&docid=tJx19GhekzM7BM&imgurl=h

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 Revlon, INC-2007

ttp://www.infobarrel.com/media/image/5601.jpg&w=400&h=400&ei=YClf
T7PWLIqnrAfN_sWPBg&zoom=1&iact=hc&vpx=777&vpy=174&dur=18
42&hovh=225&hovw=225&tx=130&ty=104&sig=10276738292000414929
6&page=1&tbnh=146&tbnw=146&start=0&ndsp=22&ved=1t:429,r:4,s:0
5. http://www.loreal-finance.com/eng/regulated-information
6. http://www.revlon.com/Revlon-Home/Revlon-Corporate/Corporate.aspx
7. http://www.lorainhealth.com/documents/reports/2007_Annual_Report_-
_AVON_LAKE.pdf

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