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Revlon Inc has a 75 years history of providing high quality product.
Revlon is a world market leader. Vision – is to provide glamour
excitement & innovation through quality product at affordable prices.
David Kennedy, President & CEO, Revlon
Eliminated some senior position & reduce staffing by 8% of their US work force to save approx. $33 million a year.
Net sale of 2006 decrease by $1 million to $1,331 billion compared to $1,332 billion in 2005
Ron Perelman purchased a majority stake in company in 1985
Revlon sold the product in 100 countries & sale outside the US comprising of 43% of sales in 2006.
Cosmetic Hairs Beauty tools
Fragrance deodorants
Skin care
Revlon Color silk Revlon Charlie Mitchum Gatineau
Almay Colorist Expert effect
Jean nate Almay Almay
Frost & glow
Ultima ii
Flex
Bozzano
Almay intense eye color ( package that combines eye liner, mascara & eye shadow) introduce in 2005
Mission – emerge as the dominant cosmetic & personal care firm in the 21 century by appealing to young/trendy women, health conscious ( skin care)& older women with variety of brands.
In 2007 sale increase 4.8% to $677.8% million compared to net sale of 2006 -$646.6 million.
US sale increase in first 6 months of 2007- 5.1% to $397.5 million compared with sale of 2006- $378.3 million
Revlon International sale increase in 2007- 4.5% to $280.3 million compared to sale of 2006- $268.3 million
02- 2007 02-2006 Change
Color cosmetic 19.5 22.0 2.5
Revlon brand 13.4 14.3 0.9
Almay brand 6.1 6.4 0.3
Vital radiance brand
0.0 1.4 1.4
Women hair color 11.2 9.0 2.2
Deodorants 5.9 6.4 0.5
Revlon beauty tools
24.3 27.0 2.7
Revlon was founded in 1932, by Charles Revson and his brother Joseph, along with a chemist, Charles Lachman, who contributed the "L“ in the REVLON name. Starting with a single product a nail enamel unlike any before it - the three founders pooled their meager resources and developed a unique manufacturing process.
1950:The company began its success with opaque long-lasting nail enamel sol to beauty
salons Revlon sold its nail enamel through department stores and selected drugstores.
1960: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.
1970:1973 saw the introduction of Charlie® fragrance, designed for a young, working
woman marketand by the mid 70's, Charlie® was the #1 Fragrance in the world. Revlon sales figures passed the$1 billion mark in 1977.
1980:Growth and innovation led the way for Revlon. In 1985, Revlon was sold to a subsidiary of MacAndrews & Forbes Holdings. In 1987 Almay joined the Revlon lineup.
1990:The 1990's, Revlon revitalized its cosmetics business and strengthened its industry leadership role. Revlon introduced the first transfer resistant lip color which led to a full Color Stay TMCollection of transfer-resistant products. The company closed the gap on its closest competitors and reached a dramatic goal - the #1 brand in mass color cosmetics. Revlon again became a public company in 1996, listed on the New York Stock Exchange
2000Despite of financial struggle Revlon reintroduce new product line Charlie perfume in 2002 . Moisturous lipcolor (24 shades of hydrating lipstick, almay bright eyes introduce in 2003
Revlon is struggling to recover and collect debt of almost $2.3 billion.
In recent years Revlon launched Vital Radiance, a cosmetic line for older women with 100 products and it was the largest launch since Color Stay in 1994.
Revlon planned to launch a new prestige fragrance called Flair in 2006.
The company issued $185million in stock in 2006 to raise money to reduce debt.
MacAndrews and Forbes Holdings agreed to purchase a portion of the stock and to purchase nay stock not purchased by current stockholders. MacAndrews also extend a line of credit of $87 million to Revlon which can help the Revlon in the recovery of losses.
Industry is impacted by two major changes in the Aging Population & change in proportions of racial & ethnic population
75 million Americans born between 1946 &1964 are a significant market for the cosmetics/ personal care industry.
The number of people in the mature market is also increasing ( 55 & older)
Another segment (ages 12-19) is also increasing to 20 million by 2010.
Significant opportunities in Asian countries, which houses 60% world population
Year ended December 31
2006 2005 2004
Geographical area
Net sales % % %
United sales $764.9 57 $788.3 59 792.7 61
International 566.5 43 544.0 41 504.5 39
Total $1,331,4
$1,33,23 $1,297,2
Year ended December 31
2006 2005 2004
Chases of similar products
Net sales % % %
Cosmetic , skin care & fragrance
$832.0 62 $904.3 68 $874.7 67
Personal care 499.4 38 428.0 32 422.5 33
Total $1331,4 $1,332,3
Issue related to consumer concern about product safety & the use of animals testing by cosmetic companies.
Older people spend less on cosmetic, & this is growing problem for the industry.
Rises prices of gas leaving most Americans with less disposable income .
In march 2006, walt mart reduced inventory level , leaving cosmetic companies with fewer opportunities to stock additional
The value of the dollar has dropped , which benefited the cosmetic firms.
The industry is a $200 billion business world wide. Women prefer purchasing cosmetics from
drugstores, supermarket, retailers – K-mart & Walt Mart, door to door sellers such as Avon & on internet.
Smaller companies who are giving competition are Urban Decay, Fashion Fair – launched by Iman & Patti LaBalle
Revlon faces competition from P&G as it offers hair care product through its Pantene, Head & Shoulders and Herbal Essences.
P& G skin care include Olay, Noxzema & Gillette for $57 billion in 2005
Fragrance line include Giorgio, Hugo Boss, Old Spice & Lacoste.
Cosmetic line include Cover Girl & Max
2004 2005 2006
Net sales 51,407 56,741 68,222
Operating income 9,382 10,469 13,249
Net earning 6,156 6,923 8,684
Long term debt 12,554 12,887 35,976
Shareholders equity
18,190 18,475 62,908
L'Oreal acquire Maybelline, one of the leading competitors ,in 1996 for $758 million.
L'Oreal previously used to have only 7.5% share of the market but acquisition of Maybelline made L’Oreal the no 2 cosmetic firm.
L’Oreal,Maybelline,Garnier-Cosmetic
L’Oreal,Matrix,Redken-Hair care GiorgioArmani,RalphLauren-
Fragrances
2004 2005 2006
Sales 13,641 14,533 15,790
Operating profit 2,089 2,266 2,541
Non-current assets 15,734 18,686 19,155
Current assets 4,075 4,537 4,847
Loans & debt 1,568 2,217 3,329
Shareholders equity 11,825 14,657 14,624
Unilever include mass skin product (Dove, Pond,Vaseline)
Dove , Sunsilk- Hair care Unilever sold its prestige fragrance line
(Calvin Klein Chlos,Obsessions, Fternity & Escape ) to Coty for $800 million,2005
Hair care market- Africa,Middle East,Latin America
Skin care market-N.America,Africa,LatinAmerica,Asia,Middle East
2004 2005 2006
Net profit 2941 3,975 5,015
Total non current assets
27,571 28,358 27,571
Total assets less current liabilities
23,188 24,106 23,188
Total noncurrent liabilities
11,516 15,341 11,516
Shareholders equity 11,230 8,361 23,188
No 1 direct seller. Direct sale force 5 million people in 114 countries, Company sell many Avon product, include Avon color,
Avon skin caresolution,Anew,Skin- so –soft. It also sell jewelry, gift items…………..
Reduced no of management levels from 15 to 8 to save$100 million in 2006
Cross cutting measure in 2006-centralized purchasing & product line simplification plan that will reduce the no of item by 25 to 40%
Avon product can be purchased on www.avon.com
2004 2005 2006
Total revenue 7,747.8 8,149.6 8,763.9
Operating profit 1,229 1,149 761.4
Net income 846.1 847.6 477.6
Total assets 4,148.1 4,761.4 5238.2
Long term debt 866.3 766.5 1,170.7
Stockholder equity 750.2 794.2 790.4
Sale in 103 countries & territories Fragrance – Tommy Hilfiger, Donna Karan Other Brands- Babbi Brown essentials,
Prescriptives,MAC,Bobbi Brown, La Mwe, Donna Karan Aveda, Jo Malone, American Beauty
2004 2005 2006
Net sales 5,742 6,280 6469
Operating income 6,49 727 620
Net earning 3,42 406 244
Total assets 3,708.1 3,885.5 3784.1
Long term debt 461.5 679.5 698.2
Stockholders equity 1,733.5 1,692.8 1,622.3
PRESIDENT &CEO
VP & TAX COUNSEL
VP FINANCE
CONTROLLER
RESEARCH/ Development
HR & LEGAL OFFICER
MARKETING
VP NORTH AMERICAN SALES
VP LATIN AMERICAN SALES
VP EUROPEAN SALES
Organizational chart for Revlon ,Inc
Social Responsibility –supporting health programs, spent $25 million to help women.Women cancer research programSinger Sheryl Crow- support the cause & also help African American women
Manufacturing distribution – globalization help to increased operating efficiency & better use of capital assets.
Production facility in Oxford, North Carolina & Irvington, New Jersey, Mexico, Venezuela, South Africa, China , France – ISO -9000 certification
Organization / Management-
David Kennedy was selected CEO in 2006, third CEO since 2000. During 2006-2007 he planned to cut a total 250 jobs
Two vice president positions were eliminated & the marketing leadership reports directly ,
Company believes tat it will cost $29 million but save the company $34 million a year in reduce expenses
Marketing Available at Walgreens, Walt Mart, Target, K- Mart, CVS, Eckerd &Rite Aid.
Walt Mart sales were 23% ,2006
Revlon spent $24.4 million on research & development , 2006
Employed 170 people.
Spent $120 million on advertisement,2006.
Buddy Holly hit “Not Fade Away”- song lyrics for the add
Long term debt at the end of 2006, $2,3 billion, Sale decrease in 2004, 2005 & 2006. Net loss $50.2 million ,2006 Total assets decrease while current liabilities & total
liabilities increased from 2005 to 2006
Revlon is world leader in cosmetics skin care fragrance and personal care and is a leading mass-market cosmetics brand. Their vision is to provide glamour excitement and innovation through quality products at affordable prices.
Revlon's product categories include skin care cosmetics personal care fragrance and professional products. some of the company's most recognized brand names are Revlon ultimaII, color silk and Charlie etc
In the early years they developed near monopoly on beauty parlors sales by selling their nail polish door-to-door , and their slogan was matching lips and fingertips
The company went private in 1987
The company was taken public in 1996 and is traded on NYSE (new york stock exchange )
Net sales in 2006 decreased by $ 1 million US, Revlon are a company in trouble. In the year 2000 the company closed 3 plants and reduced their workforce by 1115
employees(14% percent of total workforce) in 2001 warehouse and manufacturing space was reduced by55% and the in-house advertising division was closed in the same year.
The Color man brand of cosmetics was sold in 2001 for $50 million to L'Oreal. The company has struggled in recent years and has amassed debt of almost $ 2.3
billion.
Discontinuation of Vital Radiance brand with a negative impact on Revlon.INC be approx $ 110million.
Constant change in CEOs, David Kennedy was selected as chairman and CEO in 2006, the thrice since 2000
Revlon contributed on a large scale on the US Navy's WWII campaign by supplying them with first aid kits and dye markers. In the 1960s they launched the All American campaign targeting the all-American girl to the world cosmetic market via well known US models.In 1996 Revlon was given permission to manufacture their products in China. Despite being in loss Revlon launched a new line of nail care products jointly developed by Pacific World Corp.After 2 years of R&D Revlon launched a brand named Vital Radiance for older women in the year 2006 with 100 products.Revlon started targeting younger consumers in the cosmetic markets aging from 12-19 year sold. Revlon also targeted Men who use cosmetics as well as the all time expanding hair dye market. Decrease in the value of Dollar was also well received as markets in Middle East, India etc showed great interest in buying more cosmetics and fragrance
After the death of Charles Revson, Michel Bergerac took control of the company. He started diversifying the company by manufacturing healthcare products, as the company started to lose ground in the cosmetic market.
Constant growth of Ethnic/racial issues and the population of Asian Americans.
Rise in the Gasoline/Petrol prices made the purchasing for American people difficult as they were left with little disposable money, in 2006 major retailers like Wal-Mart decreased their stocks/inventory levels, leaving the company with fewer opportunities to shelve their products.
Rapid increase in competition in the form of Avon, L'Oreal etc and many retailers selling their own products such as Victorians secret.
Restriction of the company worth 29 million, while already being in a debt $110 million
