STRATEGIC ALLIANCE

TEAM MEMBERS:

T.ELAVARASIV.KARTHICKZEESHAN ABDUL KHADERSHOBANAK.SUGANYAJ.GNANASOUNDRIM.ARUN KUMARNICHOLAS

Strategic Alliance

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

Strategic PartnerStrategic Partner

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 Carolina-USA.

Known for the cooperation with designers & celebrities for creation of fragrances.

PRODUCTS OF CAVINKARE

Personal Care: Chik, Spinz

Food: Ruchi, Chinni Dairy Products: Cavin’s

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 country’s market.Take advantage on partner’s local market

knowledge.

Why fragrance sector?

Cavinkare’s objective of bringing in premium products into the company’s umbrella.

The male fragrance sector is relatively untapped.

Favourable climatic conditions to carry out operations.

Changing lifestyle, increasing disposable income

levels, and rising influence are the major factors contribution.

Mr. Venkatesh Babu’s view

Huge potential in the personal care segment in Asia

License partner Coty Inc.

Global leader in fragrances

Mr.C.K.Ranganathan’s view

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

SWOT ANALYSIS OF CAVINKARE

STRENGTHS 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.

WEAKNESSES Not having world wide

operations. Lack of products in hair oil. Not strong products in hair

colour segment

SWOT ANALYSIS OF CAVINKARE

OPPORTUNITIES• More vertical mergers to

tap more market in northern zone.

• More Acquisitions to increase reach in both global and local markets

THREATS 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 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

WEAKNESSES

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

MARKET PENETRATION

SPINZ

PRODUCT DEVELOPMENT

CUSTOMIZED FRAGRANCES

MARKET DEVELOPMENT

ADIDAS AND JOVAN

DIVERSIFICATION CAVINKARE’S

FORAY

NEW PRODUCTS

EXISTING

MARKETS

EXISTING PRODUCTS

NEW MARKET

S

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 deo’s

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 revenue-sharing 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