Findings
– Each of these cosmetic companies is unique. They each offer something different to the industry; selling method, marketing strategy, product line, and distribution channel.
Practical implications
– The industry trends indicate that the future of cosmetics may move towards more joint ventures between drug companies, cosmetic companies and nutritional/food companies as cosmetic companies look for new ways to be innovative.
Originality/value
– The research provides an in‐depth business analyses of cosmetic industry using SWOT, Porter’s value chain and five forces and financial with results obtained that are generalizable to the entire cosmetic industry. Projections on the future of cosmetic industry are also presented.
Reference : Comparative innovative business strategies of major players in cosmetic industry
Revlon sells through department stores, drug stores, etc. They do not rely heavily on independent sale representatives like Avon and Mary Kay
Revlon
The company markets extensive consumer product lines at a range of retail prices primarily through the mass‐market distribution channel. For outside the USA, the company markets select premium lines through demonstrator‐assisted channels. The company’s goal for its marketing strategy is to create a uniform global image for all of its product portfolios, particularly for the core brands (Revlon Annual Report, 2002).
The Essay on 100 Cosmetics Company
Sales are for the 2004 calendar year or the closest fiscal year at the magazine’s printing date in August. Beauty volume is made up of fragrance, makeup, skin care, sun care, hair care, deodorant, plus cellulite and shaving items. It does not include bar soap, razors, toothpaste, foods and diet foods, medicine, vitamins or detergents. To be included in this ranking, a company must sell its ...
The company also distributes unique marketing materials such as the “Revlon Report”, which highlights the seasonal fashion and color trends that link to the company’s products associated with those trends. The report also includes coupons, rebate offers, and other promotional material to encourage consumers to try the company’s products. Other marketing materials designed to introduce the company’s newest products are: the point‐of‐sale testers on the company’s wall; magazine inserts; and “shade samplers”, collections of trial‐size products in different shades. In addition to these marketing efforts, the company maintains separate web sites, www.revlon.com and www.almay.com, featuring current product and promotional information for the Revlon and Almay brands, respectively, and are upgraded regularly (Revlon, 2002).
Revlon
The company is expected to recover from huge financial losses due to various reasons, such as discontinuation of operations, increase in spending (SG&A related), and restructuring costs. To pursue a growth increase for the near future, the company is adopting new strategies for its operations. Revlon will 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 (Revlon, 2002).
Social and environmental responsibility
Max Factor, Revlon, Avon, and Estée Lauder have comparable environmental policies. Each of the companies is also involved in recycling programs and endorse outside organizations
The Business plan on Company G: 3-Year Marketing Plan
Company G is a major player in the electronics market. We have an excellent reputation for being a ground-breaking company that provides high-quality, highly reliable products that are reasonably priced. Our consumers take pride in the items that they purchase with the Company G name on them. Our small appliance line fits well into our electronics family and will be just as pleasing to our ...
Meeting aggressive year-over-year inventory reduction targets while achieving 97 percent (or higher) customer service is not an easy task, especially while managing a supply chain that includes more than 5,000 active finished-good SKUs. Once you add in product lifecycles that last less than three years, multiple one-time promotional events, and a global supply base, the complexity only grows exponentially. And yet, this type of complexity and pressure is something most consumer product goods manufacturers deal with every day. This, in fact, is exactly the situation that Revlon Inc. was facing in early 2003. (For a quick review of Revlon’s business, see the sidebar on page 54.) Throughout the late 1990s, this worldwide cosmetic, fragrance, and personal-care products company had successfully reduced its inventory levels while continuing to meet service levels. Then the company hit a wall; year-over-year reductions stopped, but the need to free up cash for R&D and marketing continued.
Revlon’s existing practices just would not allow for more inventory reductions without a corresponding reduction in service. Revlon, however, was adamant on one point: Inventory reductions would have to be made without any significant technology investments or reductions in staff. Management challenged its transformation team to focus instead on people and process changes. To accomplish this, Revlon worked with Deloitte Consulting LLP to launch an Inventory Transformation project that would closely examine existing practices and “hold no cows sacred.” The results of the project have been impressive: In under a year, the company removed 21 days of active inventory from the supply chain while maintaining customer service targets.
Its net sales decreased by $1332 billion to $1331billion. The company is not financially stable. The net income has been negative for the last eight years. Its growth rates are below the industry rates. The strategic analysis shows that the company has some internal and external issues.
