CavinKare and Coty's Strategic Alliance*
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Details
Case Code : CLBS061
Publication date : 2009
Subject : Business Strategy
Industry : Retail
Length : 04 Pages
Price : Rs. 100
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Key words:
Strategic alliance, brand building, acquisition, licensing, franchise, licensee, advertising, stock keeping units, CavinKare, Coty, product portfolio, distribution network, out of home advertising, Internet
Note
* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US
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Abstract:
In January, 2009, Indian FMCG major, CavinKare Pvt. Limited (CavinKare) entered into a strategic alliance with Coty Inc (Coty), the world’s 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 men’s 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.
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Issues: |
Questions for Discussion:
1. Discuss the benefits accruing to CavinKare and Coty from this strategic alliance. Analyze the future prospects of the strategic alliance in view of the competitive nature of the market.
2. Do you think CavinKare will be able to achieve its target of acquiring 10 percent of the market share in the Indian fragrance market? Analyze this in view of the economic slowdown.
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