Business Report: Coty Inc. Analysis, Recommendations, and Strategies

This business report provides a comprehensive analysis of Coty Inc., a prominent American multinational beauty company. The report begins with an overview of Coty Inc., including its history, key people, and market position as a leading beauty and fragrance company. It then delves into the company's competitive advantages, such as lower pricing strategies and innovative product offerings, and utilizes PESTEL and SWOT analyses to assess the external and internal factors influencing its performance. The report further examines Coty Inc.'s organizational competitive position, focusing on the marketing mix elements like product quality, pricing strategies, and distribution channels. Recommendations are made for further improvement, including technological advancements, increased investment in research and development, and the use of analytical tools like Porter's Five Forces model and supply chain management. The report concludes by summarizing the key findings and emphasizing the importance of competitive advantages and strategic planning for Coty Inc.'s continued success in the beauty industry. This report is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

Business Report of Coty Inc
Company

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Company overview.....................................................................................................................1
Competitive Advantage ..............................................................................................................2
Organisation competitive position .............................................................................................3
RECOMMENDATION ..................................................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES ...............................................................................................................................7

INTRODUCTION
This report is based on Coty Inc which is an American multinational company and also
one of the leading company in the beauty industry and serve its product to worldwide. In this
report it has cover the overview of the company and also discuss about competitive advantages
and how the organisation perform and manages its competitive advantages. It will also include
two analytical tools that will relevant to the report and helps in further analysing. It will discuss
the organisation competitive position of the organisation. And at last recommendation that is
what company can do to enhance its skills of the company.
MAIN BODY
Company overview
Coty, Inc is an American based multinational beauty company. Coty ,Inc. was founded
by Francois Coty in 1904 which 115 years ago. It is beauty industry. The company first
fragrances was La Rose which was launched the same year and it was packed in the bottle which
atract many customers. Its headquarters is at New York City. It serves its products at worldwide.
Coty,Inc key people are Peter Harf, Pierre Laubies. It is one of the world largest beauty
companies and largest fragrance company. The company has 20,0000 employees who work hard
to gives positive results to the business. Coty's executive offices are located in London. It
develops and manufacture markets and distributes fragrances, cosmetics, beauty care, skin care,
hair care products. It is the second largest product in hair colour. The company has its
specialization in mainly three division such as consumer beauty which focuses on body care,
colour cosmetic and styling products, the third one is luxury product such as luxury cosmetic,
fragrances etc. and the last one is professional beauty which provide services such as hair and
beauty salon which attract the customers to the large extent. Coty's vision is to become the
leading company in the world and serve quality of product to the customers. And its mission is to
celebrate and liberate the diversity of beauty. The company has revenue US $9.4 billion and it is
traded as New York Stock Exchange under the symbol COTY. It has own around 77 brands as of
2018. The main brands are Cover Girl , Sally Hansen, OPI, Max Factor. JAB Holding company
is Coty's largest shareholder with 37 % stake holding (Kumar and Pansari, 2016).
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Competitive Advantage
Competitive advantage helps the company to gain or outperform its competitor and earn
more profit than the other competitor of the company. This may include natural resources such as
low cost power sources, high skilled labour, quality of the products, high entry barrier and also
have advance technology. The competitive advantage can be gain by offering high quality
products and services in low prices and also satisfying the customers.
Coty Inc is making many efforts to gain competitive advantages such as lower pricing
strategy, offering quality of products, and making innovating products that satisfy the need and
wants of the customers. All the challenges are being manage by Coty Inc and creating an
effective barrier to safeguard. This can be done by PESTEL analyses and SWOT analysis (Festa
and et.al, 2016).
PESTEL Analyses of Coty Inc.
Political Factor – Political factor impact Coty Inc to the large extent as it is important for
the company to study and have proper knowledge of the factor such as political stability of the
country where it is operating and also the personal products' sector in the country, level of
corruption and various trade regulations and tariff related to consumer goods. As political factor
influence the long term profitability of the company.
Economic Factor – the economic factor includes the inflation rate, saving rate, interest
rate, income level, foreign exchange rate ,growth rate etc. If the income level of the consumer is
low then they will not show interest and avoid beauty care products so it will affect the sales of
the Coty Inc. (Kumar and Pansari, 2016).
Social Factor – Society culture impact the culture of an organisation as it includes belief,
customs, values, needs, preferences, education level, attitude of the customers .Coty Inc will
understand the consumers of a given market and then only design the product according to the
need and wants.
Technological Factor- Over the past year transportation industry has been moving very
fast. The company should not only do technological analysis of the industry. Slow speed
technology will take more time whereas high speed technology helps the company to run in the
effective manner. As technology impact on products, impact on cost structure in personal
products' industry.
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Environmental Factor – different market have different environment conditions and
standards. Before entering into market Coty Inc should carefully evaluate the environmental
standards. It includes weather, climate, reuse of resources and recycling the resources.
Legal Factor – Coty Inc should evaluate legal framework as it affect the company to the
large extent. Some legal factor that Coty Inc should consider are discrimination law, health and
safety law, data protection law and employment law etc. (Namada, 2018).
SWOT Analyses of Coty 's
Strength – As the leading company Coty Inc has various strength that enable to gain
competitive advantages over other. As it has successfully tracked record of developing new
products and services. And it has strong brand image and loyal customers which helps to
increase the profit of the company. And also it has high skilled worker which are properly
trained and develop and give excellent results.
Weakness – Weakness are the area where Coty Inc has to work on it to improve itself
and make strategies for further improvement. It has less investment in research and development
as compare to its competitor and also sometime the company has not being able to tackle the
challenges. And also financial planning is not done properly so it effects the efficiency of the
business (Gürel and Tat, 2017).
Opportunity – There are many opportunities for Coty Inc as the new opportunity
provide an opportunity to work in effective manner with differentiate pricing strategy in the
market. New customers from online channel will help to gain many customers and also have the
opportunity to know its customer better and serving their needs.
Threat – Coty Inc has suffered many threats that are new technology develop by the
competitor could be serious threat to the industry and also rising the prices of raw material will
affect the profitability of the company and also one of the biggest threat is that changing
consumer buying behaviour will cause threat to the existing physical infrastructure driven supply
chain model (Blockeel and et.al, 2016).
Organisation competitive position
Marketing MIX
The elements of marketing mix helps Coty Inc to the large extent. It includes products, price,
place, promotion, people, process and physical evidence.
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Products- Coty Inc is one of the recognized cosmetic and make-up brands. It has
introduced many products in its marketing mix product portfolio useful for various beauty
enhancement and care. The product includes various fragrances, skin care, beauty care products
with helps customers and attracts many of them. It offers high quality of products with lower
prices. Its products are worldwide famous. Also the cosmetic products should meet the needs of
the customer demand. The quality of the product should be too good that people are willing to
pay extra for the products without any hesitation (Stead and Hastings, 2018).
Price – the channel of distribution and logistic will determine the price of the material.
The pricing strategy is adopted by the Coty Inc is very effective as brand offer quality of
products and services in low price. It offers many discounts, credits, rebate etc. on the products
and services. Also, for deciding the pricing of the product it requires complete study and
knowledge. It is neither too cheap nor overprice. The company can earn profit as well as price
should be in range of customers as it should not be too expensive to buy. As pricing affect the
demand and profit of the product
Place – the product of Coty Inc should be available at every place and easily reach to the
customers. This can be available in different store, street, shopping mall, e- commerce
worldwide. It should be easily available. Coty Inc has various stores by which people can have
wide reach.
Promotion- it is important to use various promotional strategies to promote the products
and services of the company. It is important to promote products so that it will attract many
customers and promotion helps to earn profit for the company. Coty Inc have a good command
on the promotion strategies as it include advertisement, sales promotion, PR, and even personal
selling. As the current digital marketing techniques include social media marketing and mobile
marketing as it helps to promote the products worldwide. It is also the method of telling people
the positive aspects of the beauty products (Mkude and Wimmer, 2015).
People – People are the aspect of this type of industry as they are the important element
of this industry. It involves customers, staff and all the employees working in the industry. It is
important for the Coty 's Inc to satisfy its customers need and wants and deliver them the best
quality of the product to win faith of customers. And the next elements are the employees it is
important to show interest in the employees' success. And also if Coty Inc will consider the
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needs of the individual will help to aid in designing the best selling products (Noe and et.al,
2017).
Processes- it is important to choose the smooth delivering and offer right services in the
cosmetic industry. The process of Coty 's Inc should be effective and efficient of marketing. It
should use definite channel of distribution so that it will not hinder the production of the
company. The company should deliver the best services to the customer so that it helps to satisfy
the customer to the large extent.
Physical Evidence – the products of Coty Inc has very impact full physical evidence. As
the products are well packed and also they are attractive and customers buy it just because of it
packaging. As Coty's Inc provide various services as customers going in a spa or salon will
receive intangible services and that services must be effective one (Song, Sun and Jin, 2017).
RECOMMENDATION
It has been recommended from the above report that it the organisation should try to
improve its technology as it must adopt different types of advance technology to work in the
effective and efficient manner. It has also recommend investing more in research and
development to identify more about new products and also the needs and wants of the customer .
It has also suggested that to adopt many strategies to tackle challenges. It also recommended to
use porters five forces model as an analytical tool so that it will give a better view point of that
competitive advantage and attract more customers. It has also recommended that to use supply
chain management as organisation 's competitive position so that it will help to manage the
supply chain of the organisation.
CONCLUSION
From the above case study it is based on business report of Coty Inc Company which is
one of the leading company. And it has also concluded that it is important for the organisation to
gain competitive advantage over other. In this report it has uses two analytical tools such as
PESTEL analysis and SWOT analysis which helps to identify the macro and micro factors which
affect the companies long term profitability of the company. And it has uses marketing mix for
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organisation 's competitive position and also it has concluded various recommendation n this
report for further improvement.
REFERENCES
Song, J., Sun, Y. and Jin, L., 2017. PESTEL analysis of the development of the waste-to-energy
incineration industry in China. Renewable and Sustainable Energy Reviews.80.pp.276-289.
Mkude, C. G. and Wimmer, M. A., 2015. Studying interdependencies of e-government
challenges in Tanzania along a PESTEL analysis.
Blockeel, C and et.al, 2016. A fresh look at the freeze-all protocol: a SWOT analysis. Human
reproduction.31(3). pp.491-497.
Abdel-Basset, M., Mohamed, M. and Smarandache, F., 2018. An extension of neutrosophic
AHP–SWOT analysis for strategic planning and decision-making. Symmetry.10(4). p.116.
Gürel, E. and Tat, M., 2017. SWOT ANALYSIS: A THEORETICAL REVIEW. Journal of
International Social Research. 10(51).
Namada, J. M., 2018. Organizational learning and competitive advantage. In Handbook of
Research on Knowledge Management for Contemporary Business Environments (pp. 86-104).
IGI Global.
Kumar, V. and Pansari, A., 2016. Competitive advantage through engagement. Journal of
Marketing Research.53(4). pp.497-514.
Noe, R. A and et.al, 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing(pp. 29-43). Psychology Press.
Festa, G and et.al, 2016. The (r) evolution of wine marketing mix: From the 4Ps to the
4Es. Journal of Business Research.69(5).pp.1550-1555.
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