Revlon mission and vision statement

Revlon, Inc., 2015

www.revlon.com , REV

Headquartered in New York City, Revlon is a large beauty and personal care products company and is a subsidiary of MacAndrews & Forbes Holding Inc. Popular Revlon products include lipsticks, skin care products, deodorant, blush, makeup, hair and nail products, and much more, marketed under such brands as Almay, SinfulColors, Pure Ice, Revlon ColorSilk, Charlie, Jean Naté, Mitchum, Gatineau, and Ultima II. Revlon sells products worldwide through its sales force, sales representatives, and independent distributors, and licenses its trademarks to select manufacturers for complementary beauty-related products and accessories. For the quarter that ended June 30, 2015, Revlon’s revenues were $482 million, up from $438 million the prior quarter, and the company’s net income was $26 million, up from a negative $900,000 the prior quarter. Also during Q2 of 2015, Revlon completed its acquisition of the CBBeauty Group and exited business operations in Venezuela, moving to a distributor model in that country. Revlon’s sales for Q3 of 2015 were $471.5 million, about the same as the prior year Q3, but the company’s Q3 2015 net income was $6.2 million, down from $14.6 million the prior year Q3. The company’s stock price declined 12 percent in 2015 through November. Thus, investors are concerned about Revlon’s strategic plan and performance.

Revlon hired a new CEO in 2014, Lorenzo Delpani. He needs a clear strategic plan going forward, as rivals such as Avon, L’Oreal, Mary Kay Cosmetics, and Estee Lauder compete for market share in the industry.

Copyright by Fred David Books LLC. www.strategyclub.com (Written by Meredith E. David and Forest R. David)

History

Revlon was founded in 1932 when brothers Charles and Joseph Revson, and chemist C. R. Lachman, launched a new product—a nail enamel that came in colors other than red. Somewhat bizarre, but interestingly, the name Revlon comes from replacing the s in Revson with the L from Lachman. One of Charles Revson’s most famous quotes to describe his business was “in the factory we make cosmetics, in the drug store we sell hope.” Being the only provider of different color nail polishes, Revlon had a large leg up on competition, and within 6 years the firm was a multimillion dollar organization. By the early 1940s, Revlon had expanded its product line to include many other beauty products, including lipstick, which it remains famous for today. Revlon went public in 1955 and saw its stock price increase over 200 percent in the first two months of trading. In the 1960s, Revlon restructured into six different business units based on target customer. Throughout the next 20 years, Revlon acquired many different cosmetic-related firms to expand its product offerings, but in the 1980s, it was still losing ground to major competitors Estee Lauder, Cover Girl, Procter & Gamble, and others. Thus, in 1985, Revlon was sold to Pantry Pride and left department stores to become a mass-market beauty brand. The firm hired Claudia Schiffer, Cindy Crawford, and Christy Turlington to model its products during the 1980s. In the 1990s, Revlon introduced its Color Stay line and hired model Halle Berry to promote the products. Revlon acquired Mirage Cosmetics in 2011 and Colomer Group in 2013 and hired both Emma Stone and Olivia Wilde to promote its products. Revlon divested all of its Chinese operations in 2014.

Internal Issues

Vision/Mission

Revlon has one statement as follows on the corporate website related to vision/mission: “Revlon is a global color cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirant deodorants and beauty care products company whose vision is Glamour, Excitement and Innovation through high-quality products at affordable prices.”

Organizational Structure

Like about half of the Fortune 500 companies, Revlon does not have an executive with the title COO among its top management team. As depicted in Exhibit 1 , the company has two primary divisions: Professional and Consumer. The two divisions focus on selling products to (1) beauty salons (Professional Segment) and (2) individuals (Consumer Segment), respectively. The current structure was finalized in October 2013 with the acquisition of the Colomer Group for $664 million in cash. The Colomer business comprises 100 percent of Revlon’s professional segment. Let’s presume that the two divisional presidents report to the CAO because sometimes that is another name for the COO position.

Exhibit 1 Revlon’s Organizational Structure

https://content.openclass.com/eps/pearson-reader/api/item/5237b030-dfc9-11e5-95f5-cd3b5082a19b/1/file/david-acaacc-16e_v3b/OPS/images/EX_24_001.png

Source: Based on company documents.

Marketing and R&D

Revlon uses sales representatives and independent distributors primarily in marketing. In 2013, 56 percent of all Revlon sales in the United States were derived from mass merchandisers. Revlon’s largest customers in this country are Walmart, CVS, Walgreens, Boot Alliance, and Target. In November 2014, Revlon launched its “Love is On” marketing campaign in all markets globally—the firm’s first global marketing campaign in over 10 years. CEO Delpani suggested the new slogan because he says love is a “universally applicable theme that has no boundaries.” Audio and video of related marketing ads are played to the classic song “Addicted to Love” and feature Halle Berry, Emma Stone, and Olivia Wilde.

Revlon spent $32 million on R&D in 2014 and employs 200 people in its R&D locations in New Jersey, Florida, and California. The bulk of Revlon’s products are produced at its own factories in North Carolina and in South Africa. The firm produces products for its professional segment in Florida, Spain, Italy, and Mexico, as well as through various third-party contractors.