Industry Analysis of the Cosmetic Industry Essay

Industry Analysis of the Cosmetic Industry - Essay Example Charles Revson with his brother and the chemist Charles Luchman formed Revlon in the year of 1932. An "L" was added by Luchman in the Revson to name it REVLON. Quality supplies at reasonable prices soon made Revlon a world leader. Under recognized brands such as Revlon, ColorStay, New Complexion, Revlon Age Defying, Almay, Ultima II and Flex Charlie. and Skin lights, made Revlon known worldwide. Revlon sold its goods in approximately 175 countries. A wide range of skin care and sun care products; Ultima II, Vitamin C Absolutes and Eterna 27, were also offered by Revlon. Currently, the main players in the cosmetics game are; Estee Lauder, Elizabeth Arden, Mac Cosmetics, Mary Kay Cosmetics, Avon, Clinique, L'Oreal, Bobbi Brown cosmetics, Victoria Jackson cosmetics everybody's getting into the scenario with their own lines and inventions but controlled by the price factor. The cosmetic industry is vast and creates plentiful jobs because of its cosmopolitan nature. The market is a multi-billion dollar industry and united States own the largest personal product market in the world accounting for 26% of global sales. The main frame of this industry relies on production value, labor production, number of employees, personnel costs and the number of enterprises. Cosmetic science is not only about formulation of a product but also takes an account of intelligent and innovative marketing decisions and cost constraints. It is lucky for the manufacturers to hold the top manufacturers position. Revlon also ruled the industry for a long time but was not lucky enough. Reconsideration, re-evaluation and innovation is the key to success and survival in cosmetic industry. In 1930' Revlon began selling its product through drug and departmental stores. During 50s, the usage of innovative ways of advertisement to gave a boost to publicity and sales. It used television sponsorship and radio ads. The advertisement sector was always supported by Revlon and generated a lot of business. This sector is one of the biggest revenue generator in United States. Advertising campaign "The Most Unforgettable Women in the World wear Revlon" of late 1980s and 1990s became very popular. Advertising the product in an effective manner is the name of the game which Revson introduced and now the industry cannot do without it. During severe financial crises even, Cindy Crawford and Claudia Schiffer were two top models signed up by Revlon. Again in 90s, in spite of loss, the company launched an expensive marketing campaign featuring Halle Berry and Julianne Moore, to boost sales. Revlon has never compromised on advertising a product in an effective manner. Anticipation of new trends brings business to this industry and the foundation of Revlon was based on it. Revlon started with a single product, nail enamel which was never available before. In only six years of new innovations, high-quality marketing strategies, sales, packaging with an effective operating system made Revlon listed in