Revlon SWOT Analysis 2022
SWOT analysis by Revlon examines the brand’s reputation based on its strengths and weaknesses, as well as opportunities and threats.
With Revlon SWOT Analysis, the strengths and weaknesses are internal variables, while the threats and opportunities are external aspects.
SWOT Analysis is a tried and tested management tool that allows companies such as Revlon to evaluate their business and performance in comparison to their rivals. Revlon is among the top companies that operate in the FMCG sector.
The table below provides Revlon’s SWOT (Strengths, Weaknesses, Revlon SWOT (Strengths weaknesses, Strengths Opportunities threats) as well as the top Revlon competitors, and also the market it is targeting segmentation, positioning, and its Unique Selling Point.
Revlon was established around 1932, 1932 by Joseph as well as Charles Revson. The business was launched with an innovative product made up of nail polish that offered a range of shades that were not the typical red.
The name Revlon comes from the combination of the names Revson Lochman. In the past, Revlon was the only company with nail polish in a variety of shades.
This gives it an advantage over its competitors, leading to the development of an enterprise worth billions of dollars in just six years after it was established.
At the beginning of the 1940s, Revlon was able to enhance its product range, leading to the development of new cosmetics, such as lipsticks, which made the company a household name (Forest 2016).
Revlon made the decision to launch a stock exchange in the year 1955 and it was clearly an excellent decision.
The result was an increase in the stock’s price by over 200% in just a period of two months. The following 20 years saw Revlon launch a number of cosmetic businesses, including expanding its product line.
But the 1980s were not a good time for Revlon as it began to be targeted by competitors such as Proctor and Gamble, Cover Girl as well as Estee Lauder.
The issue resulted in a plan by Revlon to sell the brand to Pantry Pride. This meant that it was no longer offered in the department store and began becoming a mass-market cosmetics brand.
Famous models, Christy Turlington, Cindy Crawford along with Claudia Schiffer, were hired by the company to increase visibility and sales for the brand throughout the 1980s.
In the early 90s, Revlon launched Color Stay, its Color Stay line, and employed its model Halle Berry to promote the product.
The company’s policy has been to make use of models to promote and increase the sales of its merchandise.
For instance, the time Mirage Cosmetics and Colomer Group were purchased in the years 2011 and 2013, respectively by Revlon, and the company, appointed Olivia Wilde and Emma Stone to advertise their products.
The main office of Revlon is located in New York City, and it has a wide range of personal and beauty products.
Revlon has a variety of products, such as blush, makeup deodorant, and skincare products including lipsticks, hair, as well as nail care products.
It also includes more well-known brands such as Mitchum, Jeannette, Charlie, Revlon ColorSilk, Pure Ice, Sinful Colors, Almay, Gatineau, and Ultima II.
Revlon is a global company that operates around the world with the assistance of sales representatives sales force, salesforce, independent distributors, as well as the licenses that permit its choice of suppliers that offer complementary beauty products and accessories.
SWOT Analyse Of Revlon
A SWOT analysis can be a useful tool to take a realistic facts-based, data-driven analysis of an organization’s initiatives, their advantages, and disadvantages.
In avoiding preconceived notions, organizations can conduct the analysis in a precise manner. The following is the SWOT analysis of Revlon
Strengths Of Revlon
The strengths of the company are its capabilities and resources that can be used to develop, create, and maintain competitive advantages in the marketplace
- The history of the brand: Revlon which started in the beginning by selling nail polish using the use of a unique marketing plan became a multi-million dollar company within six years. The drive for the future and deep knowledge of the customer that has helped them achieve the heights of success is now embedded in its culture business that is the reason they continue to help the company to succeed even today.
- High level of customer engagementRevlon has always attempted to communicate frequently with their customers and take feedback and enhance their products. In addition to the 24/7 online helpdesk. Revlon also offers Revlon woman online, an online platform where customers can express themselves and create online profiles.
- brand endorsementsRevlon has always made its goal to work with famous stars who are the epitome of beauty. A few of the brands’ representatives comprise Halle Berry, Emma Stone, Ashley Graham, Raquel Zimmerman, and many more.
- Marketing approach: Revlon has always adopted a think global do locally approach in its advertisements, which helps improve the relationship with the consumer. The content can be universal for every advertisement, but the location along with the storyline as well as the actors in commercials should reflect the local taste and the audience.
- Charity commitment: Revlon has always focused on giving back to society and communities. Many of their charitable initiatives are geared towards empowering women who are not well-off and improving the well-being and health of women across the world with free health checks ups and portable cancer screening programs, etc.
Weaknesses Of Revlon
Insufficiencies of Revlon may be the result of a lack of strengths or capabilities that are needed however the company isn’t equipped with. Managers need to know that the weakness exists due to the absence of strategic planning, or because of decisions made in the direction of strategic planning.
- Acquisition of Elizabeth Arden: Revlon acquired the leading cosmetics brand Elizabeth Arden for a whopping amount of 420 million dollars in the year 2016. The company incurred losses following the acquisition, but it did not provide the necessary results.
- Consumer Behaviors change: The surge in specialty cosmetics stores, as well as online stores, has altered the manner that consumers purchase cosmetics and their choices. The shift in the behavior of consumers has forced a shift in strategy, especially for multinational companies such as Revlon.
- Insolvency Mounting: Revlon is suffering from increasing losses over the last couple of years. The loss that has been increasing rapidly has led to debts of 3 billion dollars.
- Limited focus on the younger generation: Revlon has been focusing more on an older and more mature audience to promote business. But, in the recent past, companies in the cosmetic industry have been buying brands for youth to get the attention of younger consumers, something Revlon is unable to achieve with success.
Opportunities For Revlon
Opportunities are areas of opportunity where firms can see potential to increase profits, growth, or market share.
- Customers’ preferences are swiftly changing driven by increasing disposable incomes, the ease of access to information and the rapid adoption of new technologies consumers today are more inclined to try and test new products on the marketplace. Revlon is required to closely monitor not just trends that are broader within that Personal & Household Prods. industry but also in the wider Consumer/Non-Cyclical sector.
- Local collaboration A tie-up with local players could create opportunities for growth for Revlon. Revlon on international markets. Local players are experts in their local area, and Revlon brings global procedures and knowledge to the table.
- Cost reduction of new launches of products by utilizing third-party retailers and dedicated social networks. Revlon could benefit from this emerging trend, to begin with, with a small launch before expanding after the initial successful launch of a brand new product.
- Rapid Expansion of the economy as it is evident that the US economy is growing more quickly than the average developed country and will give Revlon the opportunity to enter the market US market. Revlon already has the know-how to be competitive in the US market.
- Opportunities in the online Space-A growing use of internet-based services by customers will allow Revlon to offer new services for customers in the Personal & Household Prods. industry.
- The trend of customers moving toward higher-end products It is a huge opportunity for Revlon because the firm is well-known in the premium segment. customers enjoy outstanding customer services that are provided by Revlon products in the low segments. This is an opportunity for both the company and its customers and offers a chance to boost the profit.
Threats Of Revlon
Threats are the elements that could potentially pose dangers to the business model of the company due to shifts in macroeconomic factors as well as changing perceptions of consumers. The threat can be mitigated but isn’t controlled.
- Human resource shortage – resources Due to the high turnover of employees as well as the increasing dependence on new solutions the company may be faced with issues with human resource skills in the very near future.
- Trade relations Between the US, as well as China, can impact Revlon’s growth plans. This could lead to an all-out trade war that could limit the possibility of Revlon expanding its operations into China.
- A lack of trust in institutions and a growing threat of legal action for Revlon as it is the case that the WTO rules and regulations are hard to enforce across markets. Legal procedures are becoming expensive and lengthy. This can result in lesser investment in emerging markets through Revlon and result in slow growth.
- The growing technological proficiency that local companies have on the export market One of the major dangers of partnering with local players in the market for exports for Revlon is the risk of loss of IPR. The framework for intellectual property rights isn’t very robust in emerging markets, especially in China.
- Market saturation in the urban and stagnation in the market in the rural areas In the case of Revlon this is a constant challenge in the Personal & Household Prods. segment. One reason is that the use of new products is slow in the rural markets. Additionally, it is more expensive for Revlon to cater to rural markets than urban ones due to the distances, and lack of infrastructure.
- Changes in the political climate as a result of US as well as China trade wars and Brexit affecting the European Union, and overall instability in the middle east could affect Revlon’s business, both in the local markets and also in the international markets.
SWOT Analyses Have Limitations Revlon
While it is true that the SWOT analysis is extensively used to plan strategic strategies, However, it has its fair share of drawbacks.
- Certain aspects or capabilities of an organization can be both strengths and weaknesses at the same time. This is among the main drawbacks that SWOT analysis has. For instance, changing environmental regulations could be negative for the business but however, but it could also be an opportunity in the sense that it can allow companies to be on the same level or even gain an advantage over competitors if they could develop the product quicker than competitors.
- SWOT doesn’t provide a way to get a competitive edge It is not a strategy to gain a competitive advantage, therefore it should not be a complete solution.
- The matrix is merely an initial point of reference for an analysis of how the proposed strategies can be implemented. It also provided an evaluation window, but it did not provide an implementation plan based on Revlon’s strategic competitiveness. Revlon
- It is a static evaluation and analysis of the current conditions with only a few potential modifications. As the environment, circumstances threats, strategies, and circumstances evolve, the dynamics of a competitive setting cannot be analyzed in a single tableau.
- SWOT analysis could cause a company to focus too much on the importance of a single external or internal aspect when formulating strategies. There are interrelations between the most important external and internal elements that SWOT doesn’t reveal, which can be vital in formulating strategies.
SWOT Analysis Weighted By Weights Of Revlon
Given the previously stated shortcomings of the SWOT analysis/ matrix, the corporate management determined to give the weightage to each of the strengths and weaknesses of the business.
They also consider the likeliness of future events happening in the near future, and the impact they will be on the company’s performance.
This is referred to as weighted SWOT analysis. It’s better than a simple SWOT analysis as With a weighted SWOT analysis Revlon managers are able to focus on the most crucial aspects and eliminate the less important ones.
It also eliminates the problem of a long list that causes organizations to make a lengthy list but not addressing any is considered to be crucial.
References Books On Revlon SWOT Analysis
Revlon (2018), “Revlon Annual Report”, Published in 2018.
Euromonitor (2018), “Consumer/Non-Cyclical Sector Analysis “, Published in 2018.
A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
L. Wrigley, Divisional Autonomy and Diversification (Ph.D., Harvard Business School, 1970)
M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975)
R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)
It is possible to conclude that, on the corporate level as with all long-running companies there’s a lot of history. And not just in the products which Revlon sells.
Revlon’s global business is beginning to show signs of renewal and could be the main motivation in the coming years. Revlon’s brand names are getting a new look since the first quarter of the year.
It is working on making its products appealing to younger users of beauty, the most sought-after segment that drives the industry’s sales.
The company is also working to improve certain brands that appeal to the younger crowd through certain digital marketing strategies.
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