TERM PAPER

OF
MAREKETING
MANAGEMENT

Topic:- REVLON
SKIN CLINIC

Submitted to: Submitted by:

Anju saini Wasim md jan
Roll no. A22
Reg. no.
10905058 Section 1904
INDEX
 Company Description (Revlon)
 Business mission
 Marketing objective
 Situation analysis
• Competitors
• Customer profile
• SWOT analysis

 Marketing Strategy

• Target market strategy

• Marketing mix
a. Product
b. Price
c. Place/distribution
d. Promotion

 Implementation, Evaluation and Control

• Marketing research
• Organisatonal structure and plan
• Fianancial projections

INTRODUCTION
Revlon Inc. was founded in 1932 by Charles Revson, Joseph Revson and
Charles Lachmann. The Company began with only one product – nail
enamel. Revlon Inc. later introduced other numerous products such as
fragrances, manicure and pedicure instruments, and other cosmetic
products. Within six years, Revlon Inc. turned into a multimillion dollar
organization, becoming one of the most recognized cosmetics names in
the world. Revlon Inc. is now one of the world's leaders in cosmetics,
skin care, fragrance and personal care. Their vision is to "provide
glamour, excitement and innovation through quality products at
affordable prices."

In 1985, Ronald Perelman gained control of the company in a hostile

takeover and now owns approximately 83 percent of Revlon. Perelman
helped return the company to its roots (of cosmetics) and sold off the
healthcare products. He refocused the company to become an
internationally known manufacturer and seller of cosmetics and
fragrances. Since then, Revlon's debt began to grow and the Company has
been creating ways to keep from defaulting on its huge debt that
continues to weigh the company down. A lot of Revlon's operating losses
have been incurred due to money spent on repaying debt and
restructuring costs.

Revlon Incorporated

Type Public (NYSE: REV)

Founded 1932
Joseph & Charles Revson, Charles
Founder(s)
Lachman
Headquarters New York City, New York, United States
Key people Alan T. Ennis, President and CEO
Cosmetics, skin care, fragrance, personal
Industry
care
Revenue ▲$1.4 BillionUSD (12/31/2007)
Net income -$16.1 Million USD (12/31/2007)
Employees 6,800
MacAndrews & Forbes Holdings: 60%
Parent (74% of votes)
FMR Corp.: 20%
Website US Site
Revlon (NYSE: REV) is an American cosmetics company

Revlon, Inc., through its direct wholly owned operating subsidiary, Revlon
Consumer Products Corporation manufactures, markets and sells an array of
cosmetics, women’s hair color, beauty tools, fragrances, skincare, anti-
perspirants/deodorants and personal care products. The Company’s products
are sold worldwide and marketed as Revlon, which includes the Revlon
ColorStay, Revlon Super Lustrous and Revlon Age Defying franchises, as
well as the Almay brand, which includes the Almay Intense i-Color and Almay
Smart Shade franchises, in cosmetics; Revlon ColorSilk in women’s hair color;
Revlon in beauty tools, Charlie and Jean Nate in fragrances, Ultima II and
Gatineau in skincare, and Mitchum in personal care products. The Company’s
principal customers include retailers, chain drug stores and food stores, as
well as certain department stores and other specialty stores, such as
perfumeries, outside the United States. The Company also sells beauty
products to United States military exchanges and commissaries.

REVLON TOP COMPENSATED OFFICERS

Mr. Alan T. Ennis

Chief executive officer

Total Annual Remuneration :$ 760,900

Mr. Robert K. Kretzman

Chief Legal Officer, Executive Vice President

Age: 57 yrs

Total Annual Remuneration: $ 1.1millionM

NAME OF THE SERVICE TO BE LAUNCHED

REVLON SKIN CLINIC

Name of The Service REVLON Skin Saver

Tagline

Because your skin speaks a lot about you

Brand Ambassador Sofiya

Business Mission

COMPANY DESCRIPTION

• 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.
• Following the war, Revlon launched twice-yearly nail enamel and
lipstick promotions tied to seasonal clothing fashions. Revlon also
turned to television sponsorship to boost sales. In December 1955,
Revlon first offered stock to the public. At the end of the following
year, Revlon was listed on the New York Stock Exchange.
• Revlon laid the ground work for its highly successful international
presence in the 60's, bringing the "American Look" to the rest of
the world through advertising featuring U.S. models.
• 1973 saw the introduction of Charlie® fragrance, designed for a
young, working woman market and by the mid 70's, Charlie® was
 the #1 Fragrance in the world. Revlon sales figures passed the $1
billion mark in 1977.
• 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.
• In the 1990's, Revlon revitalized its cosmetics business and
strengthened its industry leadership role. Revlon introduced the
first transfer resistant lipcolor which led to a full ColorStay®
Collection 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 (NYSE:
REV).

• Modi-Revlon is the formidable alliance between the Modi Group

and the world famous Revlon of USA.
• Modi-Revlon was the first International cosmetic brand to enter
India in 1995.
• Modi-Revlon has entered the Indian market and has redefined the
concept of beauty care in India.
• It brings to the Indian women an exciting range of international
cosmetics, toiletries and fragrances - all adapted to suit the local
conditions and preferences.
• Modi-Revlon draws on the expertise of Revlon’s premier Research
Centre in Edison, New Jersey (USA), to harmonise its international
product offerings with the needs and preferences of the Indian
women.

• Since market liberalization, several multinational companies, such

as Revlon, Coty, Oriflame, Chambor, Avon, Yardley, Nina Ricci,
Garnier Laboratories, and L'oreal, have entered the Indian market.
• Revlon has a market share of 80% in the premium market. Lakme
is the overall market leader in the colour cosmetic segment (lip
care and nail enamel) with a wide range of products and prices,
both.
• Maybelline competes with Revlon and Lakme in the colour
cosmetics market in India. Revlon too has grown 65 per cent to
strengthen its share to 13 per cent during the period.
A FINANCIAL REVIEW OF THE COMPANY

Revlon Inc. reported unaudited consolidated earnings results for the third quarter and
nine months ended September 30, 2009. For the third quarter, the company reported
net sales of $326.2 million compared to $334.4 million, a decrease of 2.5% over the
same period a year ago. Operating income was $50.3 million compared to $19.8
million a year ago. Income from continuing operations was $23.1 million, or $0.45
per diluted share, compared to a loss from continuing operations of $15.2 million, or
$0.30 per diluted share. The improvement in income from continuing operations was
driven primarily by improved operating income of $30.5 million. Net income was
$23.1 million, or $0.45 per diluted share, compared to $29.2 million, or $0.57 per
diluted share, which included income from discontinued operations of $44.4 million,
or $0.87 per diluted share. Adjusted EBITDA in the third quarter of 2009 was $66.5
million compared to $42.6 million in the same period last year. Operating income,
income from continuing operations, net income, and adjusted EBITDA in the third
quarter of 2009 included $2.6 million, or $0.05 per diluted share, of charges related to
the restructuring actions announced on May 28, 2009. Free cash flow in the third
quarter of 2009 was $54.1 million compared to free cash flow of $16.9 million in the
same period last year, primarily driven by improved income from continuing
operations and continued improvement in working capital efficiency. Income from
continuing operations before income taxes was $25.6 million against loss from
continuing operations before income taxes of $12.8 million for the same period a year
ago. Net sales for the first nine months of 2009 decreased 6.1% to $951.3 million,
compared to net sales of $1,012.6 million in the first nine months of 2008. Excluding
unfavorable foreign currency fluctuations of $42.8 million, net sales decreased by
1.8%. Operating income was $108.5 million in the first nine months of 2009, which
included $21.4 million of restructuring charges and other, compared to $111.0 million
in the first nine months of 2008. Adjusted EBITDA was $158.6 million in the first
nine months of 2009, which included $21.4 million of restructuring charges and other,
compared to $181.4 million in the same period last year. Income from continuing
operations in the first nine months of 2009 was $35.7 million, or $0.69 per diluted
share, which included $21.4 million, or $0.42 per diluted share, of restructuring
charges and other, compared to $1.9 million, or $0.04 per diluted share, in the same
period last year. Net income in the first nine months of 2009 was $36.0 million, or
$0.70 per fully diluted share, which included $21.4 million, or $0.42 per diluted share,
of restructuring charges, compared to $46.6 million or $0.91 per share in the first nine
months of 2008. Net income in the first nine months of 2008 included income from
discontinued operations of $44.7 million, or $0.87 per diluted share. Income from
continuing operations before income taxes was $36.0 million against $18.7 million for
the same period a year ago. Net cash provided by operating activities was $77.2
million against $43.9 million for the same period a year ago. Capital expenditure for
the period was $10.9 million against $15.1 million for the same period a year ago.
 BUSINESS MISSION

In order to achieve our Vision, Revlon, Inc., commits to the following:

Revlon mission is to provide glamour, excitement, and innovation to
consumers through high-quality products at affordable prices. The
company is moving into an era of "transforming the beauty industry"ﾝ.
Revlon aims to emerge as the dominant cosmetics and personal care firm
through the twenty-first century. Revlon continues to focus on developing
products to reach existing customers and to attract new customer groups
in both domestic and international markets. Revlon also strive to treat
employees equal, fair, honest and with integrity. Through our mission
Revlon is an internationally know manufacturer and seller of ...

MARKETING OBJECTIVE

1. To valorize the brand to occupy a premium position in the market

• By taking big price leaps of their existing range: Avg MRP

up from Rs. 250 to Rs. 400 post 2007

• By launching more and more high value, latest international

products. E.g. color stay soft & smooth (Rs 575); mineral
foundation (Rs 900), limited editions (Rs 600-1000) as well
as skin care products

2. Focus on strengthening Modern retail operations

3. New international imagery in modern retail

SITUATION ANALYSIS

Competitors:
SWOT ANALYSIS

 Strength

 Strong Retail presence

 Attractive counters
 Multiple product category
 High quality

 Weakness

 Need to fill the gap of well informed new product launches.

 Small market
 High prices

 Opportunity

 First mover advantage as it has presence in fragrance and

experience in the price range category
 Has a lager portfolio in order giving high distribution
capacity.
 Threat

 Low media spends may make the brand weak over period of
time resulting to death.
 Other players
 Huge no. of substitutes

MARKETING STRATEGY

TARGET MARKET:

Target market of Revlon for its skin clinic will be the upper
class and the womens of metropolitan cities mainly.
MARKETING MIX

Marketing mix of any company involves 4P’s of the company. These are
as given below:

 Product
 Price
 Place
 Promotion

For the skin clinic of Revlon, these are as discussed below:

PRODUCT:

This is the very first p of the marketing. For knowing about this, we will
be studing product description, segmentation for revlon’s new skin clinic
and what will be the posioning and product differentiaton.

Product Description:

There will be 4 main products in the clinic:

• Revlon Cream
• Revlon Lotion
• Revlon Moisturizing Makeup
• Revlon Moisturizing Powder

Product Segmentaion:

These all products will be segmented on the basis of the following

factors:

1. Demographics:
• on the basis of age - 18 to 50 years
• on the basis of sex – women only
• on the basis of income – higher income group

2. Geographics:
• On the basis of social class – upper class
• On the basis of region – metropolitans and big cities
 3. Psychographics:
• Lifestyle
• Personality

Product Differentiation:

Products under skin clinic will be different from the competitors under
following ways:

• High quality products

• Give softness to skin
• Reduce dryness
• Keep the skin shining

Positoning:

The products will be positioned as follow:

• Only for elite and upper class

• High quality products
• Good for skin

Branding strategy:

The branding strategy for products will be umbrella branding such as:

Revlon Cream
Revlon Lotion
Revlon Moisturizing Makeup
Revlon Moisturizing Powder

PLACE:

This is the second marketing mix and place for the Revlon skin clinic is
as follows:

Metros: Mumbai, Chennai, Delhi and Kolkata.

Other cities: Pune and Chandigarh

Distribution channel:

A three tier distribution channel will be followed for the products

distribution:

o Manufacturer
o Distributor
o Stockist
o Retailor and salon

PRICING STRATEGY:

 Market skimming will be there for all the products under skin
clinic
 High quality- high price
 High price to target niche market

DISTRIBUTION CHANNEL

There are three categories of channels of distribution -

 • Prestige - Department stores, specialty stores and chain department
stores, such as Macy's, Neiman-Marcus and J.C. Penney
(internationally) and Shoppers’ Stop, VAMA, Westside, Bombay
Stores etc (nationally).
• Broad - Drug stores, food stores, cosmetic discounters, warehouse
clubs, and mass merchandisers.Such as Eckerd, Pathmark,
Cosmetic Center, Sam's Price Club and Wal-Mart (internationally)
and Satyam, Haiko, Sahkari Bhandar, Beauty Center etc.
(nationally)
• Alternative - is identified by five different marketing methods:
• o Direct Sales
o Direct Mail/TV/Print
o Salons (Lokhandwala)
• Sourcing: Imported and Local manufacturing. (AC Neilsen)

REFERENCES

http://www.emporiumonnet.com/beauty_health/revlon/
http://www.emporiumonnet.com/beauty_health/revlon/face_care/
http://www.emporiumonnet.com/beauty_health/revlon/skin_care/
http://www.oppapers.com/essays/Revlon-2004/117446
http://www.euromonitor.com/Revlon_Inc_(Cosmetics_And_Toiletries)
http://www.scribd.com/doc/19481715/Belezza
http://www.cheathouse.com/essay/essay_view.php?p_essay_id=89642
http://www.encyclopedia.com/doc/1G1-10933591.html
http://en.wikipedia.org/wiki/Revlon
http://www.wikinvest.com/stock/Revlon_(REV)
acquire aTING OBJECTIVE

Revlon is a world leader in cosmetics, skin care, fragrance and

personal care and is a leading mass market cosmetics brand. Our vision
is to provide glamour, excitement and innovation through quality
products at affordable prices. To pursue this vision, Revlon's
management team combines the creativity of a cosmetics and fashion
company with the marketing, sales and operating.
Specialties
Marketing, Sales, R&D, Manufacturing, HR, Legal, Finance, Package
Development

A FINANCIAL REVIEW OF THE COMPANY

Revlon Inc. reported unaudited consolidated earnings results for the third quarter and
nine months ended September 30, 2009. For the third quarter, the company reported
net sales of $326.2 million compared to $334.4 million, a decrease of 2.5% over the
same period a year ago. Operating income was $50.3 million compared to $19.8
million a year ago. Income from continuing operations was $23.1 million, or $0.45
per diluted share, compared to a loss from continuing operations of $15.2 million, or
$0.30 per diluted share. The improvement in income from continuing operations was
driven primarily by improved operating income of $30.5 million. Net income was
$23.1 million, or $0.45 per diluted share, compared to $29.2 million, or $0.57 per
diluted share, which included income from discontinued operations of $44.4 million,
or $0.87 per diluted share. Adjusted EBITDA in the third quarter of 2009 was $66.5
million compared to $42.6 million in the same period last year. Operating income,
income from continuing operations, net income, and adjusted EBITDA in the third
quarter of 2009 included $2.6 million, or $0.05 per diluted share, of charges related to
the restructuring actions announced on May 28, 2009. Free cash flow in the third
quarter of 2009 was $54.1 million compared to free cash flow of $16.9 million in the
same period last year, primarily driven by improved income from continuing
operations and continued improvement in working capital efficiency. Income from
continuing operations before income taxes was $25.6 million against loss from
continuing operations before income taxes of $12.8 million for the same period a year
ago. Net sales for the first nine months of 2009 decreased 6.1% to $951.3 million,
compared to net sales of $1,012.6 million in the first nine months of 2008. Excluding
unfavorable foreign currency fluctuations of $42.8 million, net sales decreased by
1.8%. Operating income was $108.5 million in the first nine months of 2009, which
included $21.4 million of restructuring charges and other, compared to $111.0 million
in the first nine months of 2008. Adjusted EBITDA was $158.6 million in the first
nine months of 2009, which included $21.4 million of restructuring charges and other,
compared to $181.4 million in the same period last year. Income from continuing
operations in the first nine months of 2009 was $35.7 million, or $0.69 per diluted
share, which included $21.4 million, or $0.42 per diluted share, of restructuring
charges and other, compared to $1.9 million, or $0.04 per diluted share, in the same
period last year. Net income in the first nine months of 2009 was $36.0 million, or
$0.70 per fully diluted share, which included $21.4 million, or $0.42 per diluted share,
of restructuring charges, compared to $46.6 million or $0.91 per share in the first nine
months of 2008. Net income in the first nine months of 2008 included income from
discontinued operations of $44.7 million, or $0.87 per diluted share. Income from
continuing operations before income taxes was $36.0 million against $18.7 million for
the same period a year ago. Net cash provided by operating activities was $77.2
million against $43.9 million for the same period a year ago. Capital expenditure for
the period was $10.9 million against $15.1 million for the same period a year ago.