revlon
DESCRIPTION
Revlon Introduction, History, Products, SWOT, Competitors, Financial Analysis, Competitive Profile Matrix, Strategies and Recommendations.TRANSCRIPT
Presented To
Sir Shahid Mehmood
Presented by
GROUP # 6
RVELON
GROUP NO. 6
SIDRA NOOR KHAN 11
NAZIA QAMAR 08
SHAHNEELA NAZ 40
AYSHA SAHAR 25
SHAHBAZ GHLIB 13
Introduction & Overview
SHAHBAZ GHALIB
ROLL NO 13
Overview • Introduction
• Products & Brands of Revlon
• Financial Analysis
• Competitor of Revlon
• SWOT Analysis
• Five Forces of Industry Competition
• Strategies of Revlon
Overview
• 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.
Overview
• Our global brand name recognition, product quality and marketing experience have enabled us to create one of the strongest consumer brand franchises in the world, with our products sold in approximately 175 countries and territories. Revlon's brands include Revlon®, ColorStay®, New Complexion®, Revlon Age Defying®, Almay®, Ultima II® and Flex® and Charlie®.
History
• Revlon was founded in the midest of the Great depression, 1932, by Charles Revson and his brother Joseph, along with a chemist, Charles Lachman, who contributed the "L" in the REVLON name.
History
• Starting with a single product — a new type of nail enamel — the three founders pooled their resources and developed a unique manufecturing process. Revlon developed a variety of new shades of opaque nail enamel. Successful in salons from the start, in 1937 Revlon started selling the polishes in department stores and drug stores.
History
• In six years the company became a multimillion dollar organization. By 1940, Revlon offered an entire manicure line, and added lipstick to the collection. During World War II Revlon created makeup and related products for the U.S. Army, which was honored in 1944 with the Army-Navy ‘E’ Award for Excellence
Ownership
• MacAndrews & Forbes Holdings: 60%(74% of votes)
MacAndrews & Forbes Holdings, Inc. is the principalholding company used by and wholly owned by private equity investor, Ronald Perelman. MacAndrews & Forbes holds interests in a diversified portfolio of public and private companies
FMR Corp.: 20%
• Fidelity Investments is an investment company. It consists of two independent but closely cooperating companies, Fidelity Management and Research LLC (FMR LLC), founded in 1946 and serving North America, and Fidelity International Limited (FIL), spun off in 1969 and serving the rest of the world.
Corporate governance
• Current members of the board of directors of Revlon are: Alan Bernikow, Paul Bohan, Meyer Feldberg, Debra Lee, David Kennedy, Ronald Perelman, Linda Robinson, Barry Schwartz, Kathi Seifert, and Ken Wolfe.
David L. KennedyPresident and Chief Executive
Officer
Subsidiaries
• Domestic• Almay, Inc., a Delaware corporation • Charles of the Ritz Group Ltd., a Delaware corporation • Charles Revson Inc., a New York corporation • Cosmetics & More Inc., a Delaware corporation • North America Revsale Inc., a New York corporation • PPI Two Corporation, a Delaware corporation • Revlon Consumer Corp., a Delaware corporation
Products & Brands of Revlon
BRANDS OF REVLON
Revlon®,
ColorStay®,
New Complexion®,
Revlon Age Defying®,
Almay®,
Ultima II®
Flex® and Charlie®.
Products & Brands of Revlon
• Lips • Face
• Eyes
• Nails
• Hair Color
• Beauty Tools
LipsLips Products are lipstick lip glazelip linerlip shinercrème glossliquid lip stick.
Lips
FACE
PRODUCTSFace Matching MakeupSmoothing PremierPressed powderFinishing powderMatte powder blush
HAIR COLOR
PRODUCTSColor silkColor silk root perfect Frost & glowRevlon colorist
Shampoo & Gel
EYES
PRODUCTSMatte eye shadow Powder eye shadow Mineral eye shadowKohl eye linerLiquid eye pinEye pencil
NAIL
PRODUCTSNail EnamelNaturally ChicDaily wearColor allureCuticle removerGel nail hardener
BEAUTY TOOL
PRODUCTSEyes shapeCurlFinishPrep + shapeGroomSmooth + treat
FRAGRANCE
• PRODUCTSCharlieCiaraEnjoliFire& IceJean NateJontue
Body Spray
FINANCIAL STATEMENT AND RATIO ANALYSIS
Aysha sahar
ROLL NO 25
Financial Analysis
INCOME STATEMENT
Income Statement: REVLON
REVLON Financial Overview
2008 2007 Change (2007 - 2008)
Net Sales/Revenues 1346M 1367M -21M
Gross Profit 855 M 861M -6 M
Net Income 57.9M -13.1M 71 M
Operating Income 155 M 118.4 M 36.67 M
Cash Flow:
Cash Flow:
2008 2007 Change (2007 - 2008)
Net Cash Flow - Operating
21.3 2.5 18.5
Net Cash Flow - Investing
100.5 -17.6 118.5
Net Cash Flow/Financing
Activities
-112.3 24.5 -87.8
Net change in cash
7.7 9.9 -2.2
Balance Sheet:
Balance Sheet:
2008 2007 Change (2007 - 2008)
Total Assets 813.4 M 889 M -78.6 M
Total Liabilities 1926.2 M 1971.3M 24.8 M
Shareholders Equity -1113 M -1082M 31 M
RATIOS ANALYSIS
Ratio Analysis
• Profitability Ratio
• Liquidity Ratio
• Activity Ratio
• Debt Ratio
ProfitabilityGross Margin 63.5%
Operating Margin 11.5%
Profit Margin 0.97%
Profitability
Return on Equity -5.20%
Return on Assets 16.37 %
Return on Investments
Liquidity ratio
Liquidity RatioQuick Ratio .84:1
Current Ratio 1.32:1
Cash Ratio .16:1
Activity RatioInventory turnover 3.18 times
Account receivable turnover 7.93times
Total asset turnover 1.65times
Days sales in Receivable 46 Days
Days sales in Inventory 114.6 Days
Debt Ratio
Debt Ratio
Debt Ratio
237%
Debt/Equity Ratio -119.48
Key Ratio :
Price/Earnings 1.13
Competitor Comparison
SIDRA NOOR KHAN
ROLL NO 11
Competitor Comparison
Competitor Comparison
Top Segment
Top Brand
CEO
Growth
Revenues
Revenue Growth
International
Business Segments
Employees
cosmetics Consumer care CG/Food
Revlon Tide Dove
David L.kendy
1346.8M
100+
A.G. Lafley
350000
9.25%
28200 m
19%
42
5
110000
A.Burgmans
15.58% 5.2%
42942M
-11.93%
100+ 100+
3
234000
2
42000
3
Avon
cosmetics
-8.70% -10.50% 10690m
0.72 %
Andrea Jung
April 8, 2023 GROUP # 4 57
April 8, 2023 GROUP # 4 58
April 8, 2023 GROUP # 4 59
Top Competitors Key Measures: REVLON
REVLON AVON P&G
Valuation
Price/Earnings 1.13 7.88 — 16.75
Per Share Data
REVLON AVON P&G
Last Dividend 0 $ 0.80 — 43.36
Revenue 1.35B 10.69B — 83.5 B
Profitability
Operating Margin 11.5% 13.10% — 22.13%
Profit Margin 0.97% 8.18% — 14.46%
Gross Profit Margin 63.5% 63.09% — 51.27%
REVLON AVON ------ P&G
GrowthNet Income 57.9M 875.30M — 12070 M
Revenue 1346M 10690M — 83500M
REVLON AVON
------ P&G
Quick Ratio .84 3.15 14.46
Current Ratio 1.32 7.07 0.69
LT Debt to Equity Ratio -117 83.73 32.45
ROE -5.20 7.93 17.34
ROA 7.11 5.69 10.61
ROIC (Return on Invested Capital) 5.2 8.22 12.51
REVLON AVON --------- PG
Financial Strength
Asset Turnover 0.82 0.67 0.58
Inventory Turnover 3.55 6.95 4.93
Assets
REVLON AVON ------------- P&G
SWOT ANALYSIS & PORTER MODEL
NAZIA QAMAR
Roll No.08
Strengths
Leader in mass-market cosmetic brand Strong relationship with retailersKnown Word Wide in nail Product Present in 175 Countries
Strengths
WeaknessesWeaknesses
Weaknesses Weaknesses
Too much focus on streamlining operations rather than improving revenues
Low spending on promotion and marketing Relatively low R&D spending <2% Most product has short life cycle as they rely on
color i.e. is nail polish
OPPERTUNITIESOPPERTUNITIES
Opportunities
New executive team appointed to boost sales Recently, more spending on ads and promotions McAndrews & Forbes financial support to
improve cash flow Create uniform images split up between world
wide region
Threats
Recently downgraded by S&P from CCC- to CC JC Penny cut cosmetics (incl. Revlon) out of
shelves due to low sales Divers marketing Strategies Need a global strategies to succeed around the
world Large financial losses makes an unstable
company
Five Forces of Industry Competition
Potential Entrants
Suppliers Customers
IndustryCompetitors
Rivalry AmongExisting Firms
Bargaining power of suppliers
Bargaining power of suppliers
Threat of new entrants
Threat of new entrants
Bargaining power of customers
Bargaining power of customers
Substitutes
Threat of substitute products
or services
Threat of substitute products
or services
Internal Rivalry
Internal rivalry
Internal rivalry in the cosmetic industry is high. There are a lot of existing cosmetic companies competing in the market. The environment endorses giant corporations to acquire numerous brand name products.
Threat of new entry
Threat of entry
Threat of entry is high. To build a cosmetic company requires a significant amount of capital investments, associated with research and development (R&D) and marketing expenditures. Cosmetic companies are no different than drugs companies. There are a lot of regulations and requirements imposed by the government to launch a single product. This is due to a high level of direct contact between cosmetics products
and human body.
Products substitutes
Products substitutes are not available in the market. Products complements are high. Beauty tools (brush, mirror, cottons ball, etc.) are needed to complement most of cosmetics products. The price of product complements will definitely affect the sales of cosmetics products.
Buyer
Buyer
Buyer (i.e. consumer) power is high, since there are a variety of cosmetics products available in the markets, ranging in price. All firms are competing to attract consumer’s attention by providing the best quality, most stylish, and great price.
Supplier
Supplier
Supplier power ranges from low to medium. Owing to a lot of merging and acquisitions, the monopoly in the cosmetics industry will be huge in the future. If the industry is becoming monopolized, therefore, suppliers will have low power, where they will compete tightly in order to get the biggest piece of share.
STRATEGIES AND RECOMMENDATION
SHAHNEELA NAZ
ROLL NO 40
STRATEGIES
• Building and leveraging our strong brands.• Improving the execution of our strategies and plans
and providing for continued improvement• in our organizational capability through enabling
and developing our employees.• Continuing to strengthen our international business.• Improving our operating profit margins and cash
flow.• Continuing to improve our capital structure.
Building and leveraging our strong brands.
in our organizational capability through enabling and developing our employees.
Continuing to strengthen our international business.
Improving our operating profit margins and cash flow.
Continuing to improve our capital structure.
April 8, 2023 GROUP # 4 94
Revlon, Inc. conducts its business through its direct wholly owned operating subsidiary, Revlon Consumer Products Corporation and its subsidiaries (Products Corporation), which manufactures markets and sells an array of cosmetics, skincare, fragrances, beauty tools, hair color and personal care products. The company is a mass-market cosmetics brand.