Each of these cosmetic companies is unique. They each offer something different to the industry; selling method, marketing strategy, product line, and distribution channel. Practical implications – The industry trends indicate that the future of cosmetics may move towards more joint ventures between drug companies, cosmetic companies and nutritional/food companies as cosmetic companies look for new ways to be innovative. Originality/value – The research provides an in-depth business analyses of cosmetic industry using
SOOT, Porter’s value chain and five forces and financial with results obtained that are generalized to the entire cosmetic industry. Projections on the future of cosmetic industry are also presented. Reference : Comparative innovative business strategies of major players in cosmetic industry Revolve sells through department stores, drug stores, etc. They do not rely heavily on independent sale representatives like Avon and Mary Kay Revolve The company markets extensive consumer product lines at a range of retail prices primarily through the mass-market distribution channel.
For outside the USA, the company markets select premium lines through demonstrator-assisted channels. The company’s goal for its marketing strategy is to create a uniform global image for all of its product portfolios, particularly for the core brands (Revolve Annual Report, 2002). The company also distributes unique marketing materials such as the “Revolve Report”, which highlights the seasonal fashion and color trends that link to the company’s products associated with those trends.
The report also includes coupons, rebate offers, and other promotional material to encourage consumers to try the Meany’s products. Other marketing materials designed to introduce the company’s newest products are: the point-of-sale testers on the company’s wall; magazine inserts; and “shade samplers”, collections of trial-size products in different shades. In addition to these marketing efforts, the company maintains separate web sites, www. Revolve. Com and www. Alma. Mom, featuring current product and promotional information for the Revolve and Alma brands, respectively, and are upgraded regularly (Revolve, 2002). Revolve The company is expected to recover from huge financial losses due to various seasons, such as discontinuation of operations, increase in spending (SO&A related), and restructuring costs. To pursue a growth increase for the near future, the developing the most consumer-preferred brands, in addition to becoming the valuable partner to the company’s retailers.
As a result, the company developed the following key actions and investments to support the stabilization and growth phase of its plan: increase advertising and media spending effectively; increase the marketing effectiveness of the company’s wall display; adopt revised pricing strategies; threaten the company’s new product development process; and implement a comprehensive program to develop and train the company’s employees (Revolve, 2002). Social and environmental responsibility Max Factor, Revolve, Avon, and Este Lauder have comparable environmental policies.
Each of the companies is also involved in recycling programs and endorse outside organizations Meeting aggressive year-over-year inventory reduction targets while achieving 97 percent (or higher) customer service is not an easy task, especially while managing a supply chain that includes more than 5,000 active finished-good SSW. Once you add n product lifestyles that last less than three years, multiple one-time promotional events, and a global supply base, the complexity only grows exponentially.
And yet, this type of complexity and pressure is something most consumer product goods manufacturers deal with every day. This, in fact, is exactly the situation that Revolve Inc. Was facing in early 2003. (For a quick review of Revolves business, see the sidebar on page 54. ) Throughout the late sass, this worldwide cosmetic, fragrance, and personal-care products company had successfully reduced its inventory levels while continuing to meet service levels. Then the company hit a wall; year-over-year reductions stopped, but the need to free up cash for R&D and marketing continued.