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REVLON Channel Audit
Transcript of REVLON Channel Audit
- Products range: cosmetics, hair color, beauty tools, fragrances, skincare, anti- perspirants/deodorants and personal care products
- Brands: Revlon, Almay, Charlie,Bozzano, Gatineau, Ultima II.
- Headoffice:North Ryde, New South Wales, Australia with 154
- Main competitors: Procter & Gamble, L’Oreal and Estee Lauder. Distribution strategy and structure [intensive strategy] Suppliers [multi-channel structure] Manufacturer Distributor Retailers Major Chain Final user Channel Functions & Flows Suppliers - raw materials are supplied by accredited third parties
- mostly come from Japan Manufacturer - factories: North Carolina, Venezuela, France and South Africa
- main manufacturing facility: Oxford, North Carolina, the US
- use the forecast plan to determine the production
- shipped directly to distribution centres in different countries Distributors - Located in Canberra, ACT
- Conduct 24-months forecast plan
- Store, pack and ship products to retailers Major Chain - have own distribution centres Retailers - retail toiletry, pharmacies, department stores, specialty stores, and e-commerce websites
(www. revlon.com; www.strawberry.net)
- Priceline Australia & Chemist Warehouse - major sellers
- contract with David Jones and Myer
- direct link to customers
- provide information Final users - purchase products in retail stores
- give feedback on products and services Target Market
- Age 20 to 40: make-up category target
- Age 35 to 50: hair color and skin care category
- Upper-middle class, well-educated Demographic & Socioeconomic: Geographic: -Urban areas with high population density
-Department stores, drug stores, chemist shop and hypermarkets. - Consumers who are willing to pay more for environmentally friendly products
- Young and active female who follow latest cosmetic trend and have interest in celebrity endorsements Psychographic: External Analysis Economic Forces -Economic condition after recession
- Increase of unsold stock in warehouse -Emerging concerns toward personal appearance
-Aging population with more disposable income to spend on cosmetics products Socio-cultural Competitive Environment -The top 50 firms form 70% of the industry’s market share
-Estée Lauder and L’Oréal dominant the market and lead to aggressive rivalry -Revlon uses NetApp Infrastructure
-Storage and data management system has enhanced the bottom line through more than $70 million in cost savings and cost avoidance. Technological Legal -Operations are regulated by the Federal Trade Commission (FTC) and the Food and Drug Administration (FDA) in the U.S
-Federal, state, local and foreign regulatory authorities are involved distribution of the product Marketing Channel Power
-81 years long history (knowledge, experience, expertise)
- Worldwide distribution (175 countries)
20% market share in U.S Expert Power Referent Power -High brand recognition (loyalty image & high quality)
-New partnership with Gemini Cosmetics
-In 2012, launched a new organic product line
-Raw material from overseas (regulation and political issue in those countries)
Resources Conflict Communication Difficulties -Lack of communication skills & methods between channel members
-In May 2011, factory in Venezuela burned out > factory in Edison, NJ had to double operations
-Improvement of IT system and website to avoid communication conflict Marketing Channel Conflicts Gaps in Distribution Channel Recommendations - Revlon For Men - Expanding Distribution