The Coty company and the launching of Adidas Action 3
Coty has produced high-end perfumes for many years now. Today, it holds licenses for major companies such as Rimmel, Adidas, Pierre Cardin, etc and is responsible for all the marketing activity involved in the launch of products from these brands. This unusual position confused us a great deal in our approach to market research, because it was unclear whether Coty or Adidas undertook the various steps to be performed at the launch of a product. In exchange for a financial reimbursement, Coty is entitled to display its logo on the products of the brand, which benefits it in terms of communication.
We will thus start our analysis with a study of the market for deodorants in France. We will then study the position of the company and develop a SWOT analysis to determine the problems that will guide us throughout our study. Subsequently, we shall examine the marketing mix of Adidas Action 3. In the last step, we will establish our findings with the assumptions that emerge from our critical analysis of Coty, detailing the points on which our approach would have been different.
To fully explore the market for deodorants in France, we should segment it according to its different categories. We can implement the segmentation by genre. Indeed, we will distinguish at first the male deodorants from the deodorants for females. However, within these two categories should be distinguished three possible segmentations:
? Packaging: There are different types of deodorants: deodorant roll-ons, tube, disposable, stick, spray and the recently launched deodorant wipes.
? Texture: You can find these days deodorants in different forms - liquid, solid, cream, gel, powder or wipes.
? Properties: Apart from the conventional deodorants that help prevent body odor, there are antiperspirants and products with various properties such as alcohol-based, fragrant, and hypoallergenic.
While the market for deodorants for women has become saturated, where the penetration rate has a trend difficult because it is already 84.4%, the market for deodorants for men holds immense potential with a penetration rate of 67.8%.
The deodorant market in France is very large as more than 200 deodorants are referenced in supermarkets, including 30 leading brands. Among these brands, five were accounted for by the Unilever group: Axe, Brut, Dove, Rexona and Impulse.
Thanks to this, Unilever has achieved turnover worth 50.7 billion euros in 2003 which puts it ahead of its competitors by a large margin. Unilever is followed by the Colgate-Palmolive group with brands such as Mennen brands, Palmolive Soft & Gentle and Tahiti for a turnover of 9.9 billion euros in 2003. The French group Pinault-Printemps-Redoute achieved through Rock & Gallet and Boucheron a total turnover of 24.4 billion euros. Sanex and Williams and owned by Sara Lee Corporation turnover: 18.3 billion euros). L'Oreal (with Narta and Ushuaia) recorded a turnover of 14 billion euros.
The main distribution channel for deodorants is the supermarket .We recorded 90.6% sales of toiletries and personal hygiene products in supermarkets. This represents a 0.3% gain in market share over 2002. In the field of deodorants, consumption has continued despite the adverse economic conditions of recent years. The other main distribution channel is pharmacies that offer more specific deodorants (perspiration, for sensitive skin) or perfume (mostly for men) associated with a particular deodorant fragrance.
Tags: Distribution channels in the deodorant market, Coty company and the launching of Adidas Action 3