STRATEGIC ALLIANCE

TEAM MEMBERS: T.ELAVARASI V.KARTHICK ZEESHAN ABDUL KHADER SHOBANA K.SUGANYA J.GNANASOUNDRI M.ARUN KUMAR NICHOLAS

Strategic Alliance
Strategic Partner

Strategic Partner

A strategic alliance is a formal relationship between two or more companies in pursuit of common goal in their business while remaining as independent organizations

CavinKare Private Limited

Started in 1983 as CHIK INDIA LTD, later in 1998 renamed as CAVINKARE PVT LTD. Mainly concentrates on FMCG products focusing on the mass market. Its business units includes personal care, food and diary products. Smart marketing and clear product positioning ensured its growth and broaden its product portfolio.

Coty, Inc.
World's largest fragrance company. The company has its headquarters in both New York City and Paris, France. Coty's manufacturing facilities are located at Ashford-UK; Granollers-Spain; Chartres, France; Monaco; and Sanford, North CarolinaUSA. Known for the cooperation with designers & celebrities for creation of fragrances.

PRODUCTS OF CAVINKARE Personal Care: Chik, Spinz Food: Ruchi, Chinni Dairy Products: Cavins milk Beverages: Maa

PRODUCTS OF COTY

Adidas Playboy Jovan Esprit Nikos

Why CavinKare has adopted Strategic Alliance?

Function

as independent organization. Share technology among themselves. Usage of same marketing channel. Gain better access to host countrys market. Take advantage on partners local market knowledge.

Why fragrance sector?

Cavinkares

objective of bringing in premium products into the companys umbrella.

male fragrance sector is relatively untapped. climatic conditions to carry out

The

Favourable

operations.
Changing

lifestyle, increasing disposable income levels, and rising influence are the major factors contribution.

Mr.C.K.Ranganathans view
CavinKare enter the

Mr. Venkatesh Babus view

Huge

premium segment. Global product launching in the future. Unlock the potential of the Indian fragrance market Good understanding and strong distribution network

potential in the personal care segment in Asia License partner Coty Inc. Global leader in fragrances

SWOT ANALYSIS OF CAVINKARE

STRENGTHS

WEAKNESSES

Products Sales% Chik 21.4% Spinz 7% Fairever 9% Meera 23% Food division Understand local market Strong in shampoo segment Strong distribution network, product portfolio, R&D and Marketing team.

Not having world wide operations. Lack of products in hair oil. Not strong products in hair colour segment

SWOT ANALYSIS OF CAVINKARE

OPPORTUNITIES

THREATS

More vertical mergers to tap more market in northern zone. More Acquisitions to increase reach in both global and local markets

Its competitors are: *HUL *P&G *Dabur *Himalaya *Colgate Palmolive Lose share in shampoo segment Need to find other segments

SWOT ANALYSIS OF COTY

STRENGTHS

WEAKNESSES

Products Sales% Fragrance 59% Cosmetics 22% Personal care 19% Regions Sales% Europe 51% N.America 34% Australia 8% Asia 8% Key cosmetics and toiletries focus in fragrances Global fragrances Premium fragrances

Dire outlook for US fragrances Brand equity to survive Growth opportunities in only UK market

SWOT ANALYSIS OF COTY

OPPORTUNITIES
World wide delivery of fragrance and beauty products Honesty, integrity and openess Excellence in creation, design and experience Premium-led expansion in China High-end demand in Russia

THREATS

Innovation key strategy Targets premium fragrances Research key strategy Cross-sector extension Region-specific portfolio Its competitors are: *Oriflame *Ninestar HUL(Axe)

ANSOFF MODEL FOR STRATEGIC ALLIANCE

EXISTING PRODUCTS NEW PRODUCTS

EXISTING MARKETS

MARKET PENETRATION SPINZ

PRODUCT DEVELOPMENT CUSTOMIZED FRAGRANCES

NEW MARKETS

MARKET DEVELOPMENT ADIDAS AND JOVAN

DIVERSIFICATION CAVINKARES FORAY

STRATEGIC BENEFITS

Competitive advantage of CavinKare and strong brand name on premium and middle segment of Coty. It can edge over its rivals Hindustan Unilever limited and Henkel India limited. This can enable the Coty to tap the Lucrative fragrance and body deodorant market in Asia. Enormous potential in Indian fragrance and body deos market- Rs.3 billion and growing at the rate of 18%. This prove to be a huge potential in personal care segment in India.

FUTURE POSSIBILITIES
Market

the entire Adidas and Jovan range personal care portfolio in the Indian market, on a revenuesharing basis. Set to bring in the Coty range of personal care products. Jointly invest in building the brand in the Indian market. Foresee a long term marketing alliance to successfully establish the business in India. Strengthen Adidas position as a major player in the male personal care segment

THANK YOU