By: Ashley Reeves

1. By: Ashley Reeves

2. PEST and Industry Analysis

3. History • Founded in 1932 by Charles and Joseph Revson, along with chemist Charles Lachman • Products: Global color cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirant/deodorants and beauty care tools • Net Sales 2010= $1.32 Billion • U.S.= 55% • International= 45% • Vision: “Glamour, excitement, and innovation through high-quality products at affordable prices.” • Target market = women of all ages worldwide • Brands: • Revlon • Almay • Age Defying • ColorStay

4. History Continued • Headquartered in New York, NY • CEO Alan Ennis as of May 2009 • 4,900 employees • 17 manufacturing locations worldwide • U.S., Canada, Europe, Latin America, and Asia Pacific

5. External macro-environment factors

6. Political factors • Strict FDA regulations in the U.S. and other countries

7. Economic Factors • Currency exchange rates • Revlon would benefit from a weak U.S. dollar relative to the currencies of other countries. • Growth in emerging markets • Sales have grown immensely in the Asia Pacific region. • Global economic conditions • Higher unemployment levels • Decreased consumer spending

8. Social Factors • Changes in consumer purchasing habits • Increased customer awareness of permanent make-up options

9. Technological Factors • E-Commerce • Use of social media

10. PEST Analysis

11. Industry Analysis Porter’s Five Forces Model

12. Personal products industry

13. Threat of New Entrants • Barriers to entry

14. Power of suppliers

15. Power of buyers

16. Power of substitutes

17. Intensity of rivalry

18. Nature of the forces

19. Suggestions for addressing key forces • Intensity of Rivalry • Continue producing quality products, anticipating and responding to changes in consumer demands, and educating product benefits.

20. Pest & Industry Analysis Conclusions

21. Economic and social factors have the greatest affect on Revlon. • Intensity of rivalry is the greatest force for Revlon. • It is important for companies in the personal products industry to stay on top of changing consumer preferences and needs in order to stand out among the competition. • Although the cosmetics and personal products industries have fierce competition, by continuing to spend more time on research and development to create differentiated and quality products, Revlon can increase their position in the personal products industry.

22. Competitor and Market Analysis

23. Key Competitors "Bringing the Best to Everyone We Touch and Being the Best in Everything We Do."

24. “We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come.” “To help men and women around the world aspire to beauty and express their individual personalities to the full.”

26. Products

27. Sales by Region

28. Sales by Segment

29. Trends & Forces

31. Cosmetic industry BCG Matrix High Market Growth Rate Low High Low Relative Market Share Position

32. Competitor and Market Analysis Conclusions

33. Revlon has a vast amount of competition in the personal products industry. • Being a lot smaller than the competition has caused them to fall behind in revenues and the amount of money they are able to spend on research and development. • By continuing to develop unique products and investing more money in R&D, Revlon can work their way to becoming as big as the competition.

34. internal and Swot analysis Generic and Grand Strategies

35. Business Model

36. Performance • Sales have fluctuated from 2005 on. • The decline in consolidated net sales was driven by lower net sales of Revlon and Almay color cosmetics and certain beauty care products • Profits have also fluctuated in past years due to: • unfavorable foreign currency fluctuations • higher pension expenses within cost of goods • higher returns and allowances

37. Change in Sales by Region • U.S. and Europe have observed a steady decrease in sales over the past few years while Asia Pacific and Latin America have experienced a steady increase in sales. • While sales have increased in Asia Pacific and Latin America, they are not increasing at the rate in which they should, based on the growth rate of cosmetics in those regions.

38. Change in sales by region (continued)

39. U.S. Share % by Brand/Product

40. Resources

41. Key Assets

42. BCG Matrix Market Growth Rate High Stars Question Marks Low Cash Cows Dogs High Low Relative Market Share Position *Market Share: Increase in competition causes a decrease in market share for Revlon *Market Growth: A high growth rate is possible in global countries.

43. *Revlon works to expand their current products into new emerging markets where cosmetics sales are increasing.

44. Value Chain

45. Value Chain (continued)

46. Generic Strategy Competitive Advantage Low Cost Differentiation Broad Competitive Scope Narrow

47. Revlon’s Grand Strategy Rapid Market Growth Quadrant II Quadrant I Product Development Product & Market Development Market Development Market penetration Market Penetration Backward integration Horizontal/Vertical integration Forward integration Liquidation/Divestiture Concentric diversification Quadrant III Quadrant IV Retrenchment Related/unrelated diversification Related/unrelated diversification Horizontal/Vertical diversification Conglomerate diversification Conglomerate diversification Liquidation/Divestiture Joint ventures Weak Competitive Position Strong Competitive Position Slow Market Growth *Revlon needs to work to increase research and development in order to develop new products. *Sales can be increased by introducing their products into new markets.

48. SWOT Analysis

49. Swot Analysis Continued

50. Internal and SWOT Analysis Generic and Grand Strategies Conclusions