Updated: Dec 26, 2022
Operation is not the only reason for its bankruptcy, changing society is: Revlon's marketing advertising strategies offer much to emulate.
A 90-year-old firm, Revlon, filed for Chapter 11 bankruptcy in the US this Wednesday. To continue its operation as one of the major cosmetic brands, the company now expects to receive $575,000,000 from its existing lenders.
I assume most of us are not aware of the actual definition of Chapter 11. So, here is the summary of Chapter 11 provided by the US Courts: Chapter 11 on the bankruptcy code provides a plan of reorganization of corporations or partnerships, keeps its business alive, and pays creditors over time. This chapter also referred to relief for the business leaders.
Revlon, Inc. first launched in New York in the throes of the Great Depression by selling nail polishes. With decades of effort, they became widely known for their mascara collections, color cosmetics, hair care/color, skincare, beauty care, and fragrances. It also became a multi-national operator and was sold in 150 countries. Their locations now include Mexico City, London, Paris, Hong Kong, Indonesia, Sydney, Singapore, and Tokyo.
Revlon is the first major cosmetic company to go bankrupt in recent years, and some perceive its operation as the only reason why it encountered this condition. However, this may not be true. Financially evolving bankruptcy is partly due to the declining demand and sales of products due to the COVID-19 quarantine, and the consumers' change in the taste of products because of continuing inflation.
From this perspective, I believe the company's operation is not the only factor in facing bankruptcy. I still think that some of its marketing strategies are worse learning.
Revlon's promotion & advertising strategy:
We can learn tips - adapting the changing society's use of SNS - for improving brand awareness from Revlon. Because it is a long-lasting firm, Revlon has long been making use of conventional marketing, such as printed advertisements, booklets, television, banners, etc. However, as the improvement of technology allowed everyone to use the internet and SNS, and newcomer companies started using it for their promotion, Revlon also anticipated opportunities to utilize modern-style marketing. For the brand to become more familiar with youngsters, it operated influencer marketing with Olivia Wilde and many other macro-influencers in the past.
Almost all successful companies are now using SNS as major promoting platforms. Nonetheless, using SNS is not just going to spread brand awareness: we must learn to adapt to the new helpful tools they provide.
Thank you for reading :)