Revlon is the American Company, founded in 1932. It is fragrance, personal care and cosmetic company. It is considered as the market leader in the cosmetic industry. Its products are widely distributed in more than 100 countries across the globe, with the sales percentage of around 55% mainly outside the US. The major product categories of Revlon are hair, beauty, cosmetics, deodorants, skin care and Fragrance (Revlon, 2018).
The BCG matrix helps in identifying the strategic position of the company. The Global market of makeup is growing at the rate of 4.8% on average since 2001. The Global market share of the Revlon had declined in 2006 to 6%. This had put the company at the category of question mark in BCG matrix analysis. The Revlon is considered as the oldest and leading company in industry, and seen at this position is justifiable as it is experiencing the normal cycle, after which the next stage definitely would be star. However, this matrix has the disadvantage that it never shows the advantages that Revlon has over its rivals in the industry, and the position of the competitors who are at the same stage with the company (Pareira, 2015). Here is the detailed BCG matrix of the company.
Cash Cows
These are the mature market’s leader, as they exhibit more return in terms of sales rather than the market growth, and successful in generating more cash to the company as compare to the consumption. These products need to be “milked” continuously, which means extracting more profits in less investment. Color cosmetics are the cash cow for the Revlon Company, as there are many competitors in the industry, still Revlon is able to lead the market. It has around 21.9% of the market share, but the market growth rate is 3.1%. It is necessary for the company to move towards market development strategy for these items for the company benefits (Alshahrani, 2018).
Stars
They generate large amount of cash for the company, but also consume large sum of it for the high level of market growth rate. Lip glosses, lipsticks, and lip colors are the star items for the Revlon Company, as they are the most selling items of the company, which have the highest demand. It is necessary for Revlon to invest more in this category, and avail the advantage of it (Revlon, 2018).
Question Marks
The name suggests the traits of this category; it is clearly not predictable that whether it will become dog items or star products for the company. Such products need immense investment for pushing them in the star category. Women deodorant by Revlon fall in this category, as it has 7.1% of market share, but the growth rate is relatively high. This means that if Revlon uses the market penetration strategy, it can be able to shift the items in the star quadrant. But this will require huge investment and consideration of the executives. As being facing the strong competition, Revlon should focus in this area (Pareira, 2015).
Dogs
Dogs have the low market growth rate and low market share, which clearly means neither they consume much nor they generate much cash of the company. However, shutting the operations of such products will not affect the company’s revenue, and the invested funds could be used for other purpose. Hair care and nail polishes are the dog items for Revlon, as they have very less market share as compare to the rival companies. These are not much selling items, neither have they had the growth potential. Revlon should bring new innovations in this, or should shut down its operations (Portland University, 2018).
References
Alshahrani, O. 2018. Revlon company- A case study within strategic management course. [Online], Available at: http://www.academia.edu/30413363/Revlon_company_-_a_case_study_within_strategic_management_course.docx, [Accessed on: 15th August, 2018].
Pareira, H. 2015. Revlon case analysis. [Online], Available at: https://www.scribd.com/document/268702908/Revlon-Case-Analyis-docx#user-util-view-profile, [Accessed on: 15th August, 2018].
Portland University, 2018. Revlon presentation. [Online], Available at: https://www.coursehero.com/file/9531556/Revlon-Presentation/?justUnlocked=1#/quiz, [Accessed on: 15th August, 2018].
Revlon, 2018. About us. [Online], Available at: http://www.revlon.com/, [Accessed on: 15th August, 2018].
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