This blog shows that Revlon has built a reputation for high-quality products and an inventive attitude throughout the years. As a result, the company had become so well-known in just a few years. This long history has helped them build a strong customer base and earn their trust by using various marketing strategies.
Without further delay let’s dive into the SWOT Analysis of Revlon, starting by learning about the company.
Revlon Inc. is one of the leading cosmetics companies in the world that aims to modify lives. Revlon Inc. is an American Multinational Company whose headquartered in New York City, founded in 1932 by Jewish American brothers Charles Revson and Joseph Revson along with a chemist, Charles Lachman, who contributed the “L” in the Revlon name. This company came a long way and achieved great success.
From starting their business with nail enamel, now they are into many products which include hair colour and hair care products, skincare and beauty, and fragrances through a diverse portfolio in more than 150 countries. Revlon endeavours to create and develop the most customer-oriented brand and to be the most valuable partner to their retail customers, and profitably grow the business and its value for our stakeholders.
After getting huge success by launching their first product in the market, the company started to expand their business by buying more sportswear and drug companies. But, later on, it has been seen that they are not as successful, i.e., beauty and cosmetics products, which make them refocus on their core products. So, after that, they continued producing beauty products and enjoyed staggering success.
In recent years, Revlon has enlisted the help of several well-known people for its traditional and digital media campaigns.
Let’s look at Revlon’s marketing budget now that we have a better grasp of the company.
SWOT Analysis of Revlon
A SWOT analysis is a tool for taking a realistic, fact-based, data-driven look at an organization’s, initiative’s, or industry’s strengths and weaknesses. By avoiding preconceived notions, the organization can maintain the analysis accurately. Following is the SWOT Analysis of Revlon :
1. Strengths of Revlon
Revlon, being one of the leading companies in its market, has a lot of benefits that help it succeed in the marketplace. These advantages not only help it maintain market share in existing areas but also help it break into new ones.
- Strong dealer community
It has established a culture among distributors and dealers in which dealers not only market the company’s products but also spend in educating representatives to explain to customers how they may get the most out of the items.
- Excellent Results in New Markets
Revlon has developed competence in entering new markets and making them successful. The expansion has allowed the company to diversify its revenue streams and reduce economic cycle risk in the markets it serves.
- High customer satisfaction
the company has been able to attain a high level of client satisfaction owing to its specialized customer relationship management department.
- Training programs
Successful training and learning programs have resulted in a highly competent workforce. Revlon devotes significant resources to employee training and development, resulting in a team that is not just highly skilled but also driven to attain greater success.
- Commitment to charity
Revlon has always put a strong emphasis on giving back to society and communities. Many of their charity activities focus on empowering poor women and promoting the health and well-being of women throughout the world through free health screenings, mobile cancer screening camps, and other initiatives.
2. Weakness of Revlon
Weaknesses are the aspects where a company still needs to improve
Let’s see some of the aspects of Revlon
- Changes in customer behavior
The expansion of specialized cosmetics stores and e-commerce sites has altered the way clients shop for cosmetics as well as their preferences. This shift in consumer behavior necessitates a shift in approach, particularly for global brands like Revlon.
- Investment in Research and Development
Investment in Research and development is lower than that of the industry’s fastest-growing companies. Despite spending more on research & development than the industry average, Revlon has been unable to compete in terms of innovation with the industry’s leading firms. It appears to be a well-established company eager to release products with market-proven characteristics.
- Lack of focus on the younger generation
Revlon has a limited focus on the younger age because their company is geared toward an older and more mature demographic. However, cosmetic corporations have been acquiring youth brands in recent years to gain the mindshare of a younger audience, which Revlon has not been able to achieve success.
- Increasing Debt
Revlon has been losing money for the previous five years. Losses that have been steadily increasing have resulted in debts of USD 3 billion.
3. Opportunities for Revlon
Opportunities are the aspects where a company gets a chance to grow and increase their profits
- Market Potential
The BRIC countries, mainly India and China, are the next largest markets for cosmetics companies. Cosmetics demand is expected to be extremely high in these regions, with a total market value of USD 15 billion expected to grow at a rate of 22 to 25% in the next five to six years.
- Customers acquired through the Internet channel
The corporation has put a lot of money into the internet platform in the last few years. Revlon has gained access to a new sales channel as a result of its investment. In the coming years, the corporation can capitalize on this opportunity by better understanding its customers and meeting their demands through big data analytics.
- Lower inflation rate
A lower inflation rate provides more market stability and allows Revlon consumers to obtain loans at a lower interest rate. After years of recession and a poor growth rate in the sector, Revlon sees an opportunity to gain new clients and expand its market share.
- Investments in Contiguous Products
The ability to invest in contiguous product sectors is made possible by stable free cash flow. With greater cash on hand, the corporation will be able to invest in new technologies and product sectors. Revlon should be able to expand into new product categories as a result of this.
4. Threats to Revlon
Threats are the aspects where a company needs to be prepared for some kind of loss or damage to companies reputation
Let’s see some of the threats from which Revlon need to protect themself
- Chemical content
Users are highly concerned about the chemical content of makeup, prompting them to seek out natural or mineral cosmetics. Revlon has failed to make a significant mark in the organic and mineral makeup categories.
- Increasing local distributers
Local distributors’ increasing presence poses a challenge in some sectors, as the competition pays local distributors better margins.
- Infrastructure driven supply chain
The present physical infrastructure-driven supply chain paradigm may be threatened by changing customer buying behavior through internet channels.
- Growing competitions
Loreal, Estee Lauder, Mac, and Sephora are Revlon’s key competitors.
We can conclude that on the corporate side, like any long-running firm, there is a lot of history, and not just in the items that Revlon sells. Revlon’s worldwide business is showing signs of life, and this might be the company’s main driving force in the future. Revlon’s brands are all getting a facelift since the first quarter of 2018. The company is working to make its products more appealing to millennial beauty users, the most sought-after demographic that drives the beauty industry’s sales. It’s also attempting to update some of its brands that are appealing to the younger generation by some digital marketing schemes.
Thank you for reading the case study and taking some time to do so.