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

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."

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" Company Customers Products Markets Technology Concern Philosophy Self
1 & Services 2 3 4 for Survival 5 6 Concept 7 Concern for Public Image 8 Concern for employees 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)."

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

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. 2. 3. 4. 5. Excessive long-term debt Lower net sales than other competing brands Less diversified portfolio as compared to other competitors Lack of financial resources 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.

Revlon, INC-2007

SWOT Matrix

Strengths
1. A 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.

Opportunities
1. 2. 3. 4. Target market is not just confined to women but potential market of men is also increasing for skin products. Old age women are entering to cosmetic industry. Aging population are a significant market for aging cosmetics. Baby boomer Americans are a significant market for the cosmetic/personal care industry. Women in China, India and Middle East are rapidly growing interested in purchasing more cosmetics and fragrances. Market for hair coloring has expanded with teenagers and adults wanting more vibrant coloring options. Potential for sales of personal care products around the world is excellent. Baby boomers have high levels of disposable income and are brand loyal customers. Social media is now being widely used for promotion The trend of makeover accelerates the demand of beauty products.

SO & WO Strategies
SO-Strategies 1. Through strong research and development Revlon can come up with more vibrant hair coloring options and can cater to expanding hair coloring market and to eventually increase its market share. (S2, O6) 2. With the strong goodwill and popular brand name, they can cater brand loyal customers who have high levels of disposable income. (S9, O8) WO-Strategies 1. Can increase sales by catering to men as well since they are a potential market. (W2, O1) 2. Can improve its financial position by catering to markets other than US such as China, India and Middle East as women of these areas are rapidly growing interested in purchasing cosmetics and fragrances. (W8, O5)

5.

6.

7. 8. 9.

10.

Revlon, INC-2007

Strengths
1. A 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.

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.

ST & WT Strategies
ST-Strategies 1. Revlon is a socially responsible company hence realize consumer concern about safe products and thus provides high quality products at affordable prices. (S1, T5) Continuous new product development helps Revlon to compete with substitute products available in wide range. (S5, T8)

2.

WT-Strategies 1. Should use competitive pricing to bring in new brands rather than competitively higher prices. (W7, T7) Should improve sales to fight back the intense competition from competing brands. (W2, T1)

2.

10. Retailers reducing inventory levels

Revlon, INC-2007

Competitive Profile Matrix (CPM)

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

Revlon, INC-2007

Financial Ratio Analysis For the year 2006

Financial Condition 1. Current Ratio = Current Assets/ Current Liabilities Revlon 488/377.2 = 1.29 Avon 3334.4/2550.1= 1.31 Estee Lauder 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 488 - 186.5/377.2 = 0.79 Avon 3334.4 - 900.3/2550.2 = 0.95 Estee Lauder 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 1784.5/(1229.8) = - 1.45 Price Ratio 4. Price Earnings Ratio = Market Price Per Share/ Earning Per Share Revlon 0.01/(0.62) = - 0.02 Avon 0.25/2.13 = 0.12 Estee Lauder 0.1/2.63 = 0.04 Avon 1897.7/790.4 = 2.4 Estee Lauder 698.2/1622.3 = 0.43

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

10

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 785.9/1331.4 = 0.59/59% Avon 5242.7/8677.3 = 0.64/60.4% Estee Lauder 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 (251.3)/1331.4 = -0.188/18.9% 477.6/8677.3 = 0.055/5.5% Estee Lauder 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 (251.3)/(1299.8) = - 0.204/20.4% Avon 477.6/2550.1 = 0.187/18.72 Estee Lauder 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 (251.3)/931.9 = -0.27/27% Avon 477.6/5238.2 = 9.12% Estee Lauder 244.2/3784.1 = 6.45%

11

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

This ratio shows that company is utilizing its assets efficiently. Growth Rates Sales Revlon 1367.1-1331.4/133.4 *100 = 2.68% Avon 9845.2-8677.3/8677.3*100 = 13.46 % Estee Lauder 7,037.5-6463.8/6463.8*100 = 8.87%

12

Revlon, INC-2007

External Factor Evaluation EFE

Key External Factors Opportunities
1. Target market is not just confined to women but potential market of men is also increasing for skin products. Old age women are entering to cosmetic industry. Aging population are a significant market for aging cosmetics. Baby boomer Americans are a significant market for the cosmetic/personal care industry. Women in China, India and Middle East are rapidly growing interested in purchasing more cosmetics and fragrances. Market for hair coloring has expanded with teenagers and adults wanting more vibrant coloring options. Potential for sales of personal care products around the world is excellent. Baby boomers have high levels of disposable income and are brand loyal customers. Social media is now being widely used for promotion The trend of makeover accelerates the demand of beauty products.

Weight
0.09 3

Rating

Weighted Score
0.27

2. 3. 4.

0.04 0.03 0.04 0.06

2 3 3 3

0.08 0.09 0.12 0.18

5.

0.07

0.28

6.

0.05 0.05 0.04 0.03

3 3 2 2

0.15 0.15 0.08 0.06

7. 8. 9.

10.

Threats
1. 2. 3. Intense Competition from competing brands Global ethnic-racial issues 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 4 3 1 2 3 3 3 3 3 2 0.36 0.21 0.04 0.06 0.15 0.15 0.18 0.12 0.09 0.08

Total

2.9

13

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.

14

Revlon, INC-2007

Internal Factor Evaluation IFE

Key Internal Factors 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

Weights
0.14

Ratings
4

Weighted Score
0.6

0.10

0.4

0.05 0.02 0.03 0.03 0.03 0.04 0.04 0.02

3 3 3 3 3 3 4 3

0.21 0.06 0.12 0.09 0.09 0.12 0.16 0.06

Weaknesses
1. 2. 3. Excessive long-term debt Lower net sales than other competing brands 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. 0.1 0.04 0.02 0.06 0.02 0.13 1 1 1 1 1 1 0.1 0.04 0.02 0.06 0.02 0.13

0.04 0.04 0.03

1 1 1

0.04 0.04 0.03

0.02

0.02

Total

2.41

15

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 Market Penetration Product Development

Harvest or Divest Retrenchment 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.

16

Revlon, INC-2007

Space Matrix
(-6 worst, -1 best)

Competitive Advantage (CA) -1 -4 -4 -3

(+1 worst, +6 best)

Industry Strength (IS) 4 4 3 3

Product Quality Product Life Cycle X Market Share Axis Control over Suppliers & Distributors Average -3
(+1 worst, +6 best)

Growth Potential Resource Utilization Ease of entry into market Profit Potential

Average +3.5

Total X axis Score = 0.5 Financial Strength (FS) (-6 worst, -1 best) Environmental Stability (ES) Working Capital 2 Price range of competing -4 Y Leverage 1 products Axis Inventory Turnover 3 Competitive pressure -3 Earnings per share 2 Price elasticity of demand -4 Risk involved in business -2 Average +2 Total Y axis Score = -1.2 FS Conservative
Market Penetration Market Development Product Development Related Diversification

Average - 3.2

Aggressive
Backward, forward, horizontal integration Market penetration Market development Product Development Diversification (related or unrelated)

CA Defensive
Retrenchment Divestiture Liquidation ( 0.5, -1.2 )

IS Competitive
Backward, forward, horizontal integration Market penetration Market development Product Development

ES
17

Revlon, INC-2007

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.

18

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.

19

Revlon, INC-2007

The Quantitative Strategic Planning Matrix (QSPM)

Strategic Alternatives
Key Factors Improve marketing strategy AS TAS 4 4 3 0.36 0.16 0.09 Backward forward, or horizontal integration AS TAS 3 0.12

Key External Factors 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.

Weight 0.09 0.04 0.03 0.04 0.06

0.07 0.05 0.05 0.04 0.03

3 4 -

0.21

0.16

Threats

20

Revlon, INC-2007
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 0.09 0.07 0.04 2 0.18 -

0.03 0.05

3 1

0.09 0.05

0.05 0.06 0.04 0.03 0.04

4 2

0.2

0.2

0.08

0.12

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 0.14 -

0.10

0.05 0.02 0.03 0.03 0.03 0.04 0.04 0.02

0.15 -

0.25

Weaknesses
21

Revlon, INC-2007
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. 0.1 0.04 0.02 0.06 0.02 4 0.08 3 2 0.06

0.13

0.39

0.04 0.04 0.03

3 -

0.12

0.02

0.08

0.08

Total

2.01

1.22

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, mailin 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.

22

Revlon, INC-2007

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

23

Revlon, INC-2007

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=13 66&bih=673&tbm=isch&tbnid=A0n0SmQaee2xM:&imgrefurl=http://www.infobarrel.com/Revlon_Coupons__Instant_Savings_and_Free_Samples&docid=tJx19GhekzM7BM&imgurl=h 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

24