Analyzing Business Markets & Consumer markets: Revlon

Revlon is one of the world’s leading skin care manufacturer with its products physically manifested in various countries of the world.
Revlon reaches its consumers in two ways:

• B2B2C(Revlon->Retailers->Consumers)

• B2C(Revlon->Consumers)

 ü  Revlon's market share expanded from 2.9% in 2012 to 3.2% in 2013. Forbes has forecasted revenues from color cosmetics to outpace overall market size growth till the end of our forecast period.

 ü  EBITDA margin for Revlon declined from 21.6% in 2012 to 19.2% in 2013. Forbes has currently forecasted Revlon's Color Cosmetics EBITDA Margin to increase marginally to reach 20% by 2020.

 ü  Revlon's hair care market share expanded from 0.44% in 2012 to 0.66% in 2013.  Trefis expects to see a strong addition in sales in 2014, resulting from the full year addition of TCG's hair care product sales and have a market share estimate of approximately 1.41%. Post 2014, we expect Revlon's hair care market share to increase marginally and reach 1.45% by 2020.

Revlon sells predominantly through large mass retailers and chain drug stores such as Wal-Mart, Target, Sears, Walgreens, Rite Aid, CVS and Longs Drug Stores in the US, with Wal-Mart making up about 24% of the company's net sales.

International Markets

ü  SECOND LARGEST MARKET SHARE IN COLOR COSMETIC IN US: 18% of the global market size and commands over 20% share of the US market in color cosmetics.

ü  TCG(The Colomer Group) adds close to $530 million in revenues to Revlon's core business, taking the total to $1.9 billion in 2013.

ü  Revlon , derives 43% of revenues from international geographies.

On the basis of revenue, Revlon ($1.4 billion revenues) is much smaller than L'Oreal (at $30.5 billion), Avon ($10 billion) and Estee Lauder ($10.4 billion), therefore Revlon has less money to spend on marketing, an extremely important factor for success in the cosmetics industry.

Analyzing Consumer Market

ü  Consumer Characteristics:

There would be more or less mostly the Personal characteristics of the consumer that would drive her(mostly) or him to go for a purchase of any personal care product from Revlon.

ü  Psychological Processes:

Motivation- The people around, if have used the product in the past and are satisfied with it or its services, then it’s a possibility that they would praise the product recommend it to their friends.

Perception- The consumers’ own perception about the product or past experience with the product could be a factor in driving the person to buy the product.

Memory: Any top of the mind recall or any blur image of the product in mind could also be a reason in any product purchasing decision.

ü  Buying Decision Process:

Ø  Problem Recognition

Ø  Information Search

Ø  Evaluation of Alternatives

Ø  Purchase Decision

Ø  Post Purchase Behavior

ü  Purchase Decision:

Product Choice- Hair Care, Lip care, Skin Care etc

Brand Choice- Revlon, L’Oreal, Lakme etc

Dealer Choice- Which store to choose to get the best quality product at the best price?

Purchase Amount- Setting the limit to the expenses

Purchase Timing- Deciding the occasion of purchase

Payment Method- Deciding on how to make the payment(On Cash/On card)