CAVINKARE AND COTY: A STRATEGIC ALLIANCE

Submitted By:

MBA (SS) Bharathi Priyadarshini Geetha.H Keerthapriya.M Anandha Prakash Parthiban Raj Vignesh Ramdass Tamil Arasan

ABSTRACT:
In January, 2009, Indian FMCG major, CavinKare Pvt. Limited (CavinKare) entered into a strategic alliance with Coty Inc (Coty), the worlds leading fragrance marketer. With this alliance, Coty would expand its operations in the Asian market while CavinKare would gain a presence in the premium segment of mens personal care segment in India. Under their partnership, CavinKare was to market and distribute the Adidas range of fragrances while Coty was to help CavinKare in building the market. Analysts opined that that the deal was positive

considering the potential of the Indian fragrance market.

PREAMBLE
Cavinkare:

An Indian based FMCG (Fast Moving Consumer Goods)

company which was founded by C.K.Ranganathan in 1983.

Coty Incorporation: A Paris based company which specialises in fragrances, color

cosmetics, skin & body care products, was founded in 1904.

ADIDAS AND JOVAN

Adidas is a sports brand. Impossible is nothing is the current main

stream marketing slogan for Adidas. Adidas divided the brands in to

three main groups with each a separate focus: Adidas performance, Adidas Originals, Style essentials. Adidas personal care products

under sports sensation is one of the top selling product. Jovan is also a
famous premium brand.

PRODUCT CATEGORY

STRATEGIC ALLIANCE
A Strategic Alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations. This form of cooperation lies between M&A and organic growth.

TYPES OF STRATEGIC ALLIANCE

joint

venture

equity

strategic alliance
strategic alliance and

non-equity

global strategic alliances.

CAVINKARE AND COTY INC.

WHY STRATEGIC ALLIANCE?

CavinKare

can have a much higher market penetration

than before.
It It

can give high returns. gives an edge over rivalry competitors Hindustan

Unilever Limited and Henkel India.

Adidas

personal care products can make a mark in the

south Asia.

TIE - UP
Cavinkare

Pvt.Ltd., entered into a strategic alliance with Coty Inc. to

market the entire Adidas and Jovan range personal care portfolio in the Indian market, on a revenue-sharing basis.
Cavinkare,

is set to bring in the Adidas range of personal care

products Deo spray, body spray, shower gel, aftershave and eau de toilette and Jovan range include fragrance and personal care products

from the Cotys stable.

Jointly invest in Coty

building the brand in the Indian market.

Inc and Cavinkare foresee a long term marketing alliance to

successfully establish the business in India.

This

alliance will strengthen Adidas position as a major player in the

male personal care segment.

BENEFITS OF STRATEGIC ALLIANCE

Coty

has built a unique portfolio of brands that have produced some

of the strongest consumer franchises in history.

Expertise

Cavinkare in developing brands in the personal care space

and in extensive distribution network will come in handy.

Cavinkare

has plans to cut prices of its personal care products at

around 5% anticipating acute competition in the market. Competition will drive prices down. By the end of the year, prices could be lower by as much as 15%. This will help people to consume the products in Indian economically.
This

will build Cavinkare to introduce customized fragrances by

setting up a manufacturing facility.

CAVINKARE STRATEGIES:
SWOT ANALYSIS
Adidas has a brand image for shoes and sports accessories for the years.
idea can be copied by the competitors
llegal foreign imports of different PERSONAL CARE brands.

Sharing the financial risks

Easier access to target markets

To tap the large potential target market

Paves way for future alliances

New entrants.

BCG MATRIX

Sunsilk, Panteen, Head and Shoulder, Garnier Frutices,Clinic Plus

Vivel, Dove, Vatika

Clinic all clear, Ayur, Chik

Lux, Lifebuoy

PORTERS GENERIC STRATEGIES

CONCLUSION
On the whole, this type of alliance is used by the international and local companies for the entry of their markets in the vice versa location and also as it is the first time the Indian company is distributing other brands, this will show the way to other companies. To conclude, this type of alliance will be beneficial to both the companies if it is properly coordinated, communicated with full commitment and efforts

THANK YOU

Questions are welcome!!!!