REVLON INC. ANALYSIS

Revlon inc. Analysis



Revlon inc. Analysis

Question 1

Should Revlon concentrate its efforts on international markets, given the value of the dollar and competitive pressure? What countries should Revlon focus on?Answer

Revlon should retract from international market. The company should reorganize its international operations by appointing distributor setup and windup its presence in the higher costing markets. This option should be opted for the sub-continental and Latin American markets. However, the company should maintain its presence in the European market. This can be done on joint venture basis.

Revlon should because it has potential market based on geography area. Based on sales by geography area, its shows that Revlon perform a constant growth at international level even though not as much as in U.S. market. Revlon may focus in Asian countries to market their product since most Asian countries woman's are interested in consuming cosmetics, fragrances and health care products. In current the living style has changed to modern lifestyle. In such situation not even every woman in U.S. only fighting on aging problem but other European country also Asian countries woman's are moving to fight on this aging problem. The process is market development, where Revlon market its product to new geography area (www.revlon.com).

Revlon's competitors have typically the same quality of cosmetics with comparable prices and different marketing strategies. The current situation with the cosmetic industry is dominated by the current cosmetic companies and is very intense. Potential entry of new competitors always has potential and never can be taken for granted. With the current economy and such a large market share it would be hard for a small company just getting started to get a profitable share. Potential of development of substitute products are always being researched and developed and could be a threat. Bargaining power and suppliers as a large supplier market with a great range globally that consists of door-to-door, thousands of retailers, and the internet. This creates bargaining power for Revlon however as well as the competitors also. Bargaining power of consumers becomes increased due to the wider range of retailers in the market. This could be bad due to the pricing pressure that is applied by larger retailers (Tobias, 1976).

Revlon should have to start to focus on developing the most consumer-preferred brands, in addition to becoming the valuable partner to the company's retailers. As a result, the company developed the following key actions and investments to support the stabilization and growth phase of its plan:

Increase advertising and media spending effectively;

Increase the marketing effectiveness of the company's wall display;

Adopt revised pricing strategies;

Strengthen the company's new product development process; and

Implement a comprehensive program to develop and train the company's employees

I think if Revlon is going to make gains they must find a way to get back to their roots that made them a billion dollar company. Revlon must redevelop what consumers want and be valuable to retail stores and customers. They need to continue profit margins and grow their business and their value for their ...