Revlon Presentation

View Point: Chairman of the Board

Time Context : 2007 Board Meeting

I . Problem Statement What is the best marketing strategy for REVLON in

the Philippines to increase its market share and obtain market leadership in the cosmetics business?

II. Statement of the Objectives

To achieve sustainable competitive advantage in the market

To attain better performance in terms of reversing and recovering its previous years’ losses

To craft a strategy that best matches REVLON’s core competencies

III. Areas of Consideration

STRENGHTS WEAKNESSES

79 Year of Business HistoryRecognized and Well-Known Brand in the leading countries and international communitiesStrong organizational and management structureEstablished and functioning R&D system and organizationHas extensive channel of distribution system for its product linesStrong social responsibility program.

Reduced order from its major supplier due to worldwide economic recession Weakening consumer market due to oil price increasesPoor operating performance for the past three yearsEntry of new competitor and failure to effectively matched the competitors strategies and new product offeringsThe industry is primarily fragmented and matureWeak financial resources due to previous years’ losses.

III. Areas of Consideration

OPPORTUNITIES THEATS

Increased demands for cosmetics in China, India and Middle East CountriesIncreased product demands from male and metromales due to cultural changesIncrease demands from African and Asian American segment of the market due to population growth in the USIncrease demands from the teener marketAging of the baby boomer market who still have not changed their spending and consumption.

Growing awareness on product safety by the consumer

Market Globalization

Maturing Industry which could attract its suppliers, buyers and competitors to effect vertical integration of their businesses to REVLON’s Industry; thus pose as a possible threat to current market share of REVLON

Continued economic downturn which would reduce overall consumers spending capacity for its products.

IV. ALTERNATIVE COURSES OF ACTION

1. Implement door to door marketing as in Avon

2. Adopt a product Differentiation Strategy thru better product features and variety to cater to untapped markets.

3. Diversification of operations thru

a. New business jewelries, gift items

b. Joint ventures

4. Open company for possible acquisition

ALTERNATIVE COURSES OF ACTION

ACA 1 Implement door to door marketing like Avon



ACA 1: Implement door to door marketing like Avon

Advantages Disadvantages Eases entry and penetration in

the Philippine market Recruited agents present as

potential users and loyalist of its brand

Might compete with its existing retail outlets

Takes time to organize and effectively implement

Will initiate a retaliatory move from a bigger and stronger competitor, Avon

Revlon does not currently possess the necessary resources to compete with Avon head on due to previous year’s poor operational performance





ACA 2: Adopt a product Differentiation Strategy thru better product features and variety

Adopt a product Differentiation Strategy thru better product features and variety


ACA 2 Adopt a product Differentiation Strategy thru better product features and variety

Advantages Disadvantages

Optimizes use of its R&D units’ capabilities

Effectively capture new and evolving market segments of significant potentials

Takes time to realize Takes time to organize and

effectively implement Uncertainty of success Entails organizational

restructuring of its production and marketing units





ACA 3: OPERATIONAL DIVERSIFICATION




ACA 3Operational Diversification.


Advantages Disadvantages Strengthens Revlon’s market and

industry leadership position Enables Revlon to solidify and

enhance its operational capabilities

Helps to penetrate and to pursue new markets globally and locally.

Technology transfers and sharing resulting to more efficient operations

Takes time to realize Takes time to organize and

effectively implement Uncertainty of success of getting a

serious partners who shares its visions and missions

Entails broader restructuring of its functional units





ACA 4:Opens Company For Possible Acquisition






Advantages Disadvantages

Infuse new and fresh sources of capital and technology for company to support continuing operation

Technology transfers and sharing resulting to more efficient operations

Takeover of Revlon by a bigger and stronger company will enable it to extend its market coverage and competitive capabilities

Management and Organizational restructuring

New majority owners may not share Revlon’s visions and missions.

Internal and operational conflicts may arise

Takes time to organize and effectively implement

Result to demoralization

V. ANALYSISDecision MatrixV. ANALYSISDecision Matrix

Factors ACA 1 ACA 2 ACA 3 ACA 4

Timeliness 1 2 4 3

Cost Implications (current management)

1 2 4 1

Strategy Fit to Current Situations of the Business

2 3 4 1

Helps Revlon to attain better performance

1 3 4 2

Help Achieve sustainable competitive advantage for Revlon

1 3 4 2

TOTAL 6 13 20 9

VI. CONCLUSION

– From the foregoing decision matrix, the Group chooses ACA 3 or the adoption of a marketing strategy thru product diversification into new international market and promising market segments. Implicit in this option is the pursuit of joint venture and business tie ups in order to strengthen and to galvanize REVLON against possible economic reversals and environmental threats. This is a very logical and wise move on the part of REVLON due to business uncertainties brought about by globalization, technological advancement and environmental changes of its operational arena.

•

VII . PLAN OF ACTIONVII . PLAN OF ACTION

PERSON RESPONSIBLE:

ACTION: TIME:

Chairman and CEO David Kennedy and Board of Directors

Redefine the company’s clear mission then transformed into detailed support goals and objectives to guide the entire company.

1 week

Research and Development

Must thoroughly understand the international market environment. Should consider the economic, political-legal and cultural environment.

1 month

Chairman and CEO David Kennedy and Board of Directors

Guided by the company’s mission statement and objectives the management plans the collection of business and product that should make up the company.

1 week

VII . PLAN OF ACTIONVII . PLAN OF ACTION

Research and Development

Provides all the crucial company information required for business and competitor intelligence needs.

1 week

Sales and Marketing Expand product offerings in the market to create a product for the target market.

1 week

All Revlon employees Support sales activities by understanding customers better.

1 month

All Revlon employees Keep fully up to date on competitors’ business structure, strategy and prospects.

continuous

All Revlon employees Obtain the most up to date company information available.

Continuous

PERSON RESPONSIBLE: ACTION: TIME:

Documents

Revlon Presentation