Revlon_Final

Julia Llaguno
Hibiki Sato
Janice Tan
Caridad Bustamante

Agenda 23 // Target Customer Persona
22 // Location Area Analysis
3 // Company Overview 32 // Pop-Up Justification
11 // Financials
13 // Market Analysis 39 // Pop-Up Shop Proposal
18 // Distribution 54 // Sources
20 // SWOT Analysis
21 // Perseptual Map & Competitors

Company Overview

History

/Charles Revson became a cosmetics salesman by the toss of a coin -- tails, he’d apply for
a job selling household appliances; heads, he’d answer an ad for a cosmetics salesman.
/It was heads, and in 1931 Revson began selling nail polish to beauty salons. He painted
his own nails with different colors so he wouldn’t need a color chart.
Revson and his brother Joseph decided to start their own nail polish company with $300
/They hooked up with nail polish supplier Charles Lachman, and in 1932 began Revlon.
Revson introduced matching lipsticks in 1940, with names like Kissing Pink and Fifth
Avenue Red.
/More opportunist than innovator, he let his competitors do the research and make the
mistakes, and then he would make a better version of the product, out-packaging and
out-advertising his rivals
/In 1952, Revlon went public. To diversify and expand its markets, it began making
acquisitions and selling its products overseas.

Mission Statment

Revlon, Inc. is a leading global beauty company with a portfolio of iconic brands that
transform the lives of women and men around the world.

Our Company manufactures and markets color cosmetics, hair color and care, skincare, beauty
care and fragrances through a diverse portfolio of 15+ brands sold in more than 150 countries.

Type of Business

Revlon has the look of a leader in the US mass-mar-
ket cosmetics business, alongside L’Oréal’s Maybel-
line and Procter & Gamble’s Cover Girl. Aside from
its Almay and Revlon brands of makeup and beauty
tools, the company makes Revlon ColorSilk hair col-
or, Mitchum antiperspirants and deodorants, Charlie
and Jean Naté fragrances, and Ultima II and Gatin-
eau skincare products. It also owns Elizabeth Arden,
a maker of prestige fragrance brands.

Ownership

Functional Accountabilities

Silvia Galfo - President/Revlon Brand
Debra G. Perelman - President
Meagan Fitzsimmons - Vice President
Ronald O. Perelman - Chairman
Victoria Dolan - Chief Financial Officer
Keyla Lazardi - Chief Scientific Officer
Chau Banks - Chief Technology Officer
Linda Wells - Chief Creative Officer
Christopher Peterson - Operations

Financial Performance

Sales Profits

2016 2334M 2016 1417M

2017 2694M 2017 1541M

2018 2565M 2018 1448M

2019 742M 2019 432M

(first quarter) (first quarter)

Market Analysis

Size of Market
in the U.S

Revenue in the Cosmetics
segment amounts to
US$17,378.9m in 2019.

Growth Rate of
Market

The Cosmetics segment is
expected to show a
revenue growth of 3.1%
in 2020.

Market Share

With a market volume of
US$17,379m in 2019,
most revenue is generated
in United States.

Key Offerings: Relationships: Position:

-Accessible Makeup (lipstick, -easy access and how they are a known -classic and well recognized brand
foundation, concealers, eyeliner, everyday brand. that has been around for years.
mascara, and nail polish) -collaborations with beauty -trustworthy brand with customer
influencers, known celebrities loyalty.

Brand Matrix Expression: Brand Core: Personality:

-Accessible beauty products Revlon, Inc. is a leading global -focuses on building community,
anywhere, with iconic colors beauty company with a portfolio of growth, and planning for the
like Revlons iconic red lipstick. iconic brands that transform the lives of future.
women and men around the world. -values time for family, health,
and personal rest.
Culture: Mission & Vision:
Competences:
-values boldness, creativity and Revlon’s vision is to provide glamour,
a passion for beauty. excitement and innovation through -deep beauty expertise
-encourage employees to bring quality products at affordable prices. and an entrepreneurial spirit.
their authentic selves to work. -aims to delight consumers with
trendsetting and innovative products.

Current Distribution

Stores & Locations Sales by Channel

CVS Target 4% online
Harmon Ulta 96% brick n mortar
Heb Walmart
Kroger Wegmans
Meijer Rite Aid
Walgreens Bed Bath &
Beyond

SWOT

- Diversified brand portfolio - Reducing the - Manufacturing facilities gained - Exposes the company
helps Revlon enhance its chances to obtain ability to produce certain amount to unknown outside risks
value and revenue. further investments of finished goods which can reach by using facilities of third
- Maintain strong customer and declining profit- wider range of retail customers. party manufacturers.
base by widely operation in ability. - The global make-up market has - Competes with those
different regions worldwide. - Declined liquidi- been growing at a fast pace which global competitors who
- Advanced cosmetics and ty causes less funding enables the company to expand its have larger and stronger
beauty products that on its operations. business worldwide. presence and customer
enhanced by using its own - Online shopping has become the bases.
technologies with patents preferred channel for several cus- - The fluctuation of
registered. tomers globally foreign exchange rates
- Strong manufacturing - The global fragrance market has causes risks to the
facilities that can help to been growing so fast due to the in- company.
enhance its operations and creasing disposable income and
serve its customers’ needs buying power of average customers
efficiently.

Perceptual Map HighPrice

Weak Strong
Brand Brand
Image Image

Low Price

Key Competitors

NYX / Revlon / Glossier / Mary / Fenty / Nars
Kay Beauty

Foundation $4-$15 $11-$18 $26 $18-$22 $35 $10-49

Lipsticks $1.8-$13.5 $9-$20 $14-$18 $18 $13-$24 $26-$34

Eyeliner $3.38-$15 $8.5-$12 $15 $12-$18 $20 $24-$28

Concealer $3-$12 $10-$14 $18 $16 $25-$26 $26-$30

Blush $3-$20 $10.7-$14 $18 $14 N/A $30-$59

Target Customer Name: Sara Cassady
Age: 18
Location: Chicago, IL
Occupation: Senior in High School
VALS: Believer
Sara loves make-up and fashion. Her favorite
magazine is Teen Vogue. She also loves spending
time outside and posting about the latest places to
eat in town. She follows a few youtubers like James
Charles, Tati and Jaclyn Hills. She wants to open her
own channel but she thinks she is not good enough
yet. She has a younger sister and when they were
younger they always did each other’s make-up for
fun. They are really close so she is really sad that she
has to leave her next year when she goes to college.
Her dream is living in California.

Location Area Analysis

14th Street Passage on NYC Highline

Sales Forecast + Footfall 10:00 am Monday Tuesday Wednesday Thursday Friday Saturday Sunday Footfall:
11:00 am 60,000/day x .007 = 420
12:00 pm 30 30 30 30 - - -
1:00 pm 30 30 30 30 - - -
2:00 pm 40 40 40 40 30 30 25
3:00 pm 50 50 50 50 50 50 40
4:00 pm 50 50 50 50 50 50 50
5:00 pm 50 50 50 50 50 50 50
6:00 pm 50 50 50 50 60 70 60
7:00 pm 60 60 60 60 50 70 60
8:00 pm 50 50 50 50 60 50 50
- - - - 40 40 35
Total - - - - 40 40 30
410 410 410 410 430 450 400

Sales 12% 12% 12% 12% 12% 15% 12%
People 49.2 49.2 49.2 49.2 52 67.5 48
Items 3 3
Avg. Basket 3 3 3 3 $30.00 3 $30.00
$30.00 $30.00 $30.00 $30.00 $30.00 $1,440.00 $10,917.00
Total Sales $1,548.00
$1,476.00 $1,476.00 $1,476.00 $1,476.00 $2,025.00 4 Weeks

Total Retail $43,668.00

Target Market Characteristics

Ages: 20-35
Location: Metropolitan areas such as New York,
Chicago, Boston, Austin, LA, etc.

Our target market are experimental people, always on
the go and usually work in the creative industry. They
are curious and open to learn about any topic.
Traveling is their hobby. They are early adopters,
therefore they are not afraid to try new foods/activities/
places. They are in love with the city and get bored easily,
so they need something to change every day. Up for any
challenge, our target customer loves to be the outlier and
they always get what they want. It is people who set up
objectives for each week and force themselves to be
better.

Shopping Habits & Tech and Sales

/ The Millennial population is projected to spend / Wifi/Mobile Usage
$1.4 trillion shopping each year by 2020 / 80% locals and 20% internationals
/ They are loyal to a strict set of brands / Avg number of users per month 33,000
/ New Yorker spend mostly in material items (men’s
suits and underwear, women’s footwear and
undergarments, and cosmetics), dating services (of
course), and charity.
Things they’re not putting our money towards?
Cigarettes (thankfully), pets (because who really has
the room), and, despite the city’s number of
hipsters, bicycles

Location Justification

New York City is the best place to generate buzz
around Revlon, launch new products, test new
markets and of course, drive sales.
Specifically, the New York Highline brings a large
amount of traffic that inclues nyc locals and
tourists.
The chosen location will not only make it easy for
loyal customers to visit the pop-up shop but it will
also be able to bring in new customers. This will
help with brand awareness and a great experience,
which is what most customers are looking for today
when they are out shopping.

Area Attractions

High Line - Popular tourist attraction
Near - Whitney Museum of American Art
Near - Chelsea Market
Near - Hudson River Park
Near - Chelsea Art District
Food tours
Shopping

Infrastructure Health & Safety

The High Line park was a piece of Natural wild grasses, indigenous plants, and
industrial infrastructure which was a elevated rugged trees such as sumac grew wild along
freight railway, and repurposed into a unique the structure.
designed public space. Integrated pest management
Planking, peel-up benches, custom wooden Low crime rate
furniture, public gathering areas, children’s
exploration areas.
Elevated park-greenway

Pedestrian & Auto Traffic / Public Transportation / Public Access

Easy to access as it’s a public park
Near to subway station
Local buses

Many parking areas next to the park for auto traffic
People can walk through buildings, high glass walls and gardens.

Legal Issues & Zoning Laws

From April 1st to May 31 Bulk of West Chelsea area is used for
from 7am to 10pm commercial use, light manufacturing,
From June 1st to and special events. Residential area
starts from 10th street onwards.
September from 7am to West Chelsea zone purpose:
11pm To encourage to grow and support the
arts-related field.
No alcohol permitted To encourage and guide the
development of West Chelsea as a
dynamic mixed use neighborhood.

Exact Location

“14TH STREET PASSAGE”
NYC hihgline, between 13th
and 14th Sts., along 10th Ave.
Event will occur on the west side of the split
passage.
Covered passage featuring raw, structural
elements from the elevated railway’s
industrial past
Best for: • Receptions • Fashion shows •
Small- to large-scale public-facing activations

Pop-Up Justification

Objectives

It will create brand awareness, improve their
brand image, and remove their drugstore
image stigma. The pop up will also enhance
their in-store experience and will broaden their
audience and not just price conscious
customers.

Why this Location? Why these Dates?

The High Line Park is visited by 6 million June 2020. Since our pop-up store is going to
people a year, this includes local New Yorkers be in an open space, the weather during this
and tourists. Based on our target market, this two months is perfect. People are getting out
is a key location to attract people from ages of the cold so they are excited to go outside
25 to 35 that are artistic, experiential and but it is not too hot that people are uncom-
early adopters. fortable.

Learnings Expected Performance Measures

- - Whether to cut out or add on more color - Collect data from social media platforms, such as
selections Instagram and Facebook
- The sales amount per feet
- The most popular color of lipsticks and nail - User sentiment
polish
- Collect data of consumers from the interactive
- The changes of the brand’s position in the screen
market

Rent Payments

The Chelsea Market near the high-
line retails for $249,428/month. Their

square foot is roughly 2 times our
space.

Our rent for the duration of the Pop-
Up is going to be $124,714

Target Customer Madison Bryant

Age: 27
Location: New York, New York
Work: Cosmopolitan journalist
Income: $54,000/year
VALS: Experiencer
Status: Single, no time for boyfriends
Listens to: Rihanna, Florence +The Machine and Billie Eilish

Madison is a typical New Yorker. She cannot live without her
coffee and she’s always on the move. She recently moved to
the East Village so she’s excited to decorate her new
apartment, although she will have to leave early for work since
she’s a little far now. She loves exercising and does yoga every
once in a while. Her way of treating herself is having a drink
with her friends on the weekends. She is a journalist therefore
she is always curious about her surroundings and is always
on the look for her next story. She is really fashion forward.
She shops 2 times a month (with her Cosmo credit card, of
course) since she has to look good for work.

Target Customer Zach Johnson

Age: 31
Location: Austin, Texas
Work: Art director/Freelancer
Income: $80,000/year
VALS: Experiencer
Status: In a serious relationship although they don’t live
together
Listens to: Tame Impala, Eminem and Childish Gambino
After spending the whole day at work, he likes to come
home and cook dinner for his girlfriend, Jessica. After
dinner they like to spend time watching Netflix together.
He spends his weekends picking up freelance jobs, as well
as looking for his next greatest capture with his new Sony
Camera. He loves Austin but his dream is to live in New
York. Therefore, he goes there whenever he cans. He is
applying to new jobs in the city and also goes to take more
pictures for his portfolio. He loves his girlfriend so if he
ever travels somewhere, she’s with him almost every time.

Pop-Up Shop Proposal

RevLab challenges the beauty industry by introducing affordable customizable products.
Customers are able to match their skin tone to create the perfect shade of lipstick, by
creating their very own shade. RevLab associates, also known as “Color Chemists”, are
trained to mix various pigments, making your one-of-a-kind color.

Final Pop-Up Design

Renders by: Hannah Fuller

Floor Plan

Ambiance

The ambiance of RevLab is very comfortable, and welcoming.
It is located in an open space with plenty of room to explore
the different atmospheres to further enhance the experience.

Display Details

Product Assortment Plan

Human Resources: Lipstick Area

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

10:00 am Sale Associates:
11:00 am ($15 an hour)
12:00 pm 1st Group of 6
1:00 pm sale associates
2:00 pm 2nd Groups of 6
3:00 pm sale associates
4:00 pm Manager:
5:00 pm ($25 an hour)
6:00 pm 1st Manager
7:00 pm 2nd Manager
8:00 pm

Human Resources: Nail Polish Area

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

10:00 am Sale Associates:
11:00 am ($15 an hour)
12:00 pm 1st Group of 6
1:00 pm sale associates
2:00 pm 2nd Groups of 6
3:00 pm sale associates
4:00 pm Manager:
5:00 pm ($25 an hour)
6:00 pm 1st Manager
7:00 pm 2nd Manager
8:00 pm

Technology

RevLab will include technology in innovative ways to create a more dynamic and hands on experience
with the customers. Interactive Mirrors will be located at the Pop-Up so customers can change makeup

looks virtually, also easy to use digital POS systems, to make purchases easy and quick.

Special Characteristics

- Interactive smart screens for customers to play around with, they
can test whether the color they curated is perfect for them
- 4 swings in front of the Rev Lab wall for customers taking pictures
- 4 counters for each lab; open space of interior design that people
can come through from either ways
- cafe area; no seat available but have high standing tables
- interesting set up at the entrance in both ways
- lipsticks hanging on the ceiling and coming out from the floor
- mirror behind of the counter lab