INTRODUCTION: Revlon incorporation has a 75 year history of providing high quality products at affordable prices to women.

Revlon was formed in 1932 by brothers charles and joseph revon and chalres lachmann with $300 investment. Charles Lachmann was a nail polish supplier who is most notably remembered for his contribution of the L in Revlon name. Charles Revson was the primary force behind the success of Revlon until his death in 1968. Revlon is a world leader in cosmetics, skincare fragrance and personal care and is leading mass-market cosmetics brand. Their vision is to provide glamour, excitement and innovation through quality products at affordable prices. Revlon products are sold in more than 100 countries around the world. Revlon product categories include skincare, cosmetics, personal care, fragrance and professional products. Some of the companies most recognized brand names are Revlon, Ultima II, color stay, Almay, Charlie, Flex, Mitchum, Jean Natie and color silk. The company continues to introduce new products. The Revlon lengterm mission is to emerge as the dominant cosmetics and personal care firm in the 21st century by appealing to young/trendy women, health conscious women and older women with its variety of brands. ENVIRONMENT: EXTERNAL: 1. Demographic changes: The cosmetic and personal care industry is impacted by two major changes in demographic composition of the US. The aging population The change in proportion of racial and ethnic population. The aged women are more customer loyal and they are more wealthier as compare to others and they even remain active for longer period at workforce. But another important segment of cosmetic industry include the teenagers. The ethnic/ racial makeup of Americans are shifting. One of the social issue that is impacting the industry is the product safety and animal testing. Men are also engaged in this industry as they color their hair and use various products to enhance their appearance. Older people is spending less on cosmetics and that is the major problem for the industry. 2. Competition: The industry is a $200 billion business worldwide. Revlons major competitors include P&G, Avon products, Estee Lauder company, LOreal and Unilever. Other competitors include small companiea such as body shop, urban decay, sephura. INTERNAL: Social responsibility: Revlon and its employees are active in supporting women health program and another community efforts. In the last decade Revlon has spend more than $25 million on servies and research that help women.

 Organization/ Management: The company is being restructured to consolidate market/ creative functions and international divisions. The company believes that restructuring will cost $29 million but will save the company cost of $34 million in a year in reduced expenses. Marketing: The primary customers for Revlon products are large mass merchandisers and drug stores such as Walgreens, Wal Mart, Target, K-mart, CVC, Eckerd and rite aid. They also sell on their website. New product development stayed continue at Revlon even at bad financial position. Revlon spent approx $120 million on advertising in US. Manufacturing & Distributing: Currently revlons number of production facilities are reduced and centralized to cover core regions. Financial Conditions: The sales are declined in 2004, 2005 and 2006. in 2006 Revlons net losses were $50.4 million. According to balance sheet current assets and total asset decreased while current and longterm liabilities increased from 2005 to 2006. ISSUES: Net sales for 2006 decreased by $1 billion to $1.332 billion in 2005. and net losses in 2006 is $251 million following a loss of $84 million 2005. The company is even struggling from debt of $2.3 billion since Ron parelna purchased a majority of stake in the company. All the brand of Revlon shows a negative change in 2007 except womens hair color which shows a positive change of 2.2% Revlon did not study the market carefully before launching Vital Radiance. Therefore, they suffered a huge loss of around $110 milion. They are focusing on US market only. Infact their product has great future in Asia. As women there are more engaged in cosmetics. REASONS FOR THE ISSUES: The sales start declining due to intense competition in cosmetic industry. As many companies have emerged who are selling their product at lower prices then Revlon. Ano ther reason could also be that they are continuously focusing on the older women and not on young ones. And older women are not willing to spend too much on cosmetics. The reason behind the brands negative change is that customers have changed their brand because better product is in the market then Revlon. And there are not doing any product development. So that customers can be attracted.