Revlon Pop Up Shop

Julia Llaguno Hibiki Sato Janice Tan Caridad Bustamante

Agenda 3 // Company Overview 11 // Financials 13 // Market Analysis

23 // Target Customer Persona 22 // Location Area Analysis 32 // Pop-Up Justification

18 // Distribution

39 // Pop-Up Shop Proposal

20 // SWOT Analysis

54 // Sources

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-market cosmetics business, alongside L’Oréal’s Maybelline and Procter & Gamble’s Cover Girl. Aside from its Almay and Revlon brands of makeup and beauty tools, the company makes Revlon ColorSilk hair color, Mitchum antiperspirants and deodorants, Charlie and Jean Naté fragrances, and Ultima II and Gatineau 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:

Brand Matrix

-Accessible Makeup (lipstick, foundation, concealers, eyeliner, mascara, and nail polish)

Expression:

-Accessible beauty products anywhere, with iconic colors like Revlons iconic red lipstick.

Culture:

-values boldness, creativity and a passion for beauty.

-encourage employees to bring their authentic selves to work.

Relationships:

-easy access and how they are a known everyday brand.

-collaborations with beauty influencers, known celebrities

Brand Core:

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.

Mission & Vision:

Revlon’s vision is to provide glamour, excitement and innovation through quality products at affordable prices.

Position:

-classic and well recognized brand that has been around for years.

-trustworthy brand with customer loyalty.

Personality:

-focuses on building community, growth, and planning for the future.

-values time for family, health, and personal rest.

Competences:

-deep beauty expertise and an entrepreneurial spirit.

-aims to delight consumers with trendsetting and innovative products.

Current Distribution

Stores & Locations CVS Harmon Heb Kroger Meijer Walgreens

Target Ulta Walmart Wegmans Rite Aid Bed Bath & Beyond

Sales by Channel

4% online 96% brick n mortar

S - Diversified brand portfolio helps Revlon enhance its value and revenue.

- Maintain strong customer base by widely operation in different regions worldwide.

- Advanced cosmetics and beauty products that enhanced by using its own technologies with patents registered.

- Strong manufacturing facilities that can help to enhance its operations and serve its customers’ needs efficiently.

W - Reducing the chances to obtain further investments and declining profitability.

- Declined liquidity causes less funding on its operations.

O

T

- Manufacturing facilities gained ability to produce certain amount of finished goods which can reach wider range of retail customers.

- Exposes the company to unknown outside risks by using facilities of third party manufacturers.

- The global make-up market has been growing at a fast pace which enables the company to expand its business worldwide.

- Competes with those global competitors who have larger and stronger presence and customer bases.

- Online shopping has become the preferred channel for several customers globally - The global fragrance market has been growing so fast due to the increasing disposable income and buying power of average customers

- The fluctuation of foreign exchange rates causes risks to the company.

Perceptual Map

High Price

Weak Brand Image

Strong Brand 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

10:00 am 11:00 am 12:00 pm 1:00 pm 2:00 pm 3:00 pm 4:00 pm 5:00 pm 6:00 pm 7:00 pm 8:00 pm Total

Sales People Items Avg. Basket Total Sales

30 30 40 50 50 50 50 60 50 410

Tuesday 30 30 40 50 50 50 50 60 50 410

12% 12% 49.2 49.2 3 3 $30.00 $30.00 $1,476.00 $1,476.00

Wednesday 30 30 40 50 50 50 50 60 50 410

12% 49.2 3 $30.00 $1,476.00

Thursday 30 30 40 50 50 50 50 60 50 410

12% 49.2 3 $30.00 $1,476.00

Friday 30 50 50 50 60 50 60 40 40 430

Saturday 30 50 50 50 70 70 50 40 40 450

12% 15% 52 67.5 3 3 $30.00 $30.00 $1,548.00 $2,025.00

Sunday 25 40 50 50 60 60 50 35 30 400

12% 48 3 $30.00 $1,440.00

Footfall: 60,000/day x .007 = 420

Sales Forecast + Footfall

Monday

$10,917.00 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 $1.4 trillion shopping each year by 2020 / They are loyal to a strict set of brands / 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

/ Wifi/Mobile Usage / 80% locals and 20% internationals / Avg number of users per month 33,000

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 The High Line park was a piece of industrial infrastructure which was a elevated freight railway, and repurposed into a unique designed public space.

Planking, peel-up benches, custom wooden furniture, public gathering areas, children’s exploration areas.

Elevated park-greenway

Health & Safety Natural wild grasses, indigenous plants, and rugged trees such as sumac grew wild along the structure.

Integrated pest management Low crime rate

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 from 7am to 10pm From June 1st to September from 7am to 11pm No alcohol permitted

Bulk of West Chelsea area is used for commercial use, light manufacturing, and special events. Residential area starts from 10th street onwards.

West Chelsea zone purpose: To encourage to grow and support the arts-related field.

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?

The High Line Park is visited by 6 million people a year, this includes local New Yorkers and tourists. Based on our target market, this is a key location to attract people from ages 25 to 35 that are artistic, experiential and early adopters.

Why these Dates?

June 2020. Since our pop-up store is going to be in an open space, the weather during this two months is perfect. People are getting out of the cold so they are excited to go outside but it is not too hot that people are uncomfortable.

Learnings Expected - - Whether to cut out or add on more color selections - The most popular color of lipsticks and nail polish - The changes of the brand’s position in the market

Performance Measures - Collect data from social media platforms, such as Instagram and Facebook - The sales amount per feet - User sentiment - Collect data of consumers from the interactive screen

Rent Payments The Chelsea Market near the highline retails for $249,428/month. Their square foot is roughly 2 times our space.

Our rent for the duration of the PopUp 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.

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.

Product Assortment Plan

Human Resources: Lipstick Area Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Sunday

10:00 am 11:00 am 12:00 pm 1:00 pm 2:00 pm 3:00 pm 4:00 pm 5:00 pm 6:00 pm 7:00 pm 8:00 pm

Sale Associates: ($15 an hour) 1st Group of 6 sale associates 2nd Groups of 6 sale associates Manager: ($25 an hour) 1st Manager 2nd Manager

Human Resources: Nail Polish Area Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Sunday

10:00 am 11:00 am 12:00 pm 1:00 pm 2:00 pm 3:00 pm 4:00 pm 5:00 pm 6:00 pm 7:00 pm 8:00 pm

Sale Associates: ($15 an hour) 1st Group of 6 sale associates 2nd Groups of 6 sale associates Manager: ($25 an hour) 1st Manager 2nd Manager

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

Promotional Plan PR Kit will be sent to beauty influencers and people from the media so that they know about the opening and attend it as well as an email invitation to customers Social Media Budget is $300 for sponsored posts throughout the month of June Print advertising mock up We will also encourage the visitors to share their pictures/videos with the hashtag #RevLab The CTA (Call To Action) is Create with RevLab

Launch Party Launch Party Itinerary Starts at 10 AM 11 AM-2 PM - free lipstick samples for people who pass by 1 PM - Lab themed appetizers will be served 4-6 PM - mock cocktails that will also be branded will be given to people passing by 7 PM wrap-up

Gift bags, that have make-up samples, stickers, branded pocket mirrors, discount flyers, will be given with every purchase (only the day of the launch) Decorations include: dj, photo booth, floral arrangements, and balloons

Launch Party Budget

RevLab Overall Budget

Operational Plan

Week one begins September 1, 2019 The last week, week 39, is June 1, 2020

Sources https://www.harpersbazaar.com/uk/beauty/make-up-nails/news/a37765/bobbi-brown-25th-anniversary-10-facts-about-the-brand/ https://investors.revlon.com/static-files/adeabe36-437f-4661-8fe9-316ef5b8a43a https://www.revloninc.com/our-company/our-leadership https://www.marketwatch.com/press-release/revlon-reports-fourth-quarter-and-full-year-2018-results-2019-03-18 https://investors.revlon.com/static-files/adeabe36-437f-4661-8fe9-316ef5b8a43ahttps://diginomica.com/revlon-needs-make-digitaljust-cosmetic-compete/ https://www.revloninc.com/our-brands https://www.meatpacking-district.com/wp-content/uploads/2018/11/MTPK_DemographicsReport_Web-2.pdf http://files.thehighline.org.s3.amazonaws.com/pdf/High_Line_Venue_Rentals_Deck.pdf https://becore.com/performance-indicators-pop-up-shops/ https://www.nycedc.com/project/high-line https://www1.nyc.gov/assets/planning/download/pdf/about/cpc/050161a.pdf https://www.southernliving.com/news/what-it-costs-to-make-lipstick

THANK YOU!