Coty has announced a new organizational structure that it contends aims to reinforce the company's growth path and strengthen its position as a global leader in beauty. The firm said it is moving from two stand-alone divisions, Coty Prestige and Coty Beauty, to a “more integrated model built around categories and regions while maintaining prestige and mass differentiation and unique treatment in brand building, product development and sales execution where it represents a critical success factor.”
The move is expected to bring a more holistic view of consumer evolution and growth opportunities by product category. In addition, Coty said the shift is expected to improve coordination and resource allocation between channels and markets, and to increase focus on specific consumer and retailer needs of each region and bringing operational efficiencies.
The new organization will be structured as two units: Categories and Innovation and Global Markets.
"This evolved organization design will help us to advance our path to profitable growth," said Coty CEO Michele Scannavini. "We will be more consumer-driven, sharper in priority setting and resource allocation, and more agile, reducing duplications and redundancies over time. We are confident that this new organization will allow us to unleash the full potential of our brands and our talent."
Renato Semerari, previously president, Coty Beauty, will assume the new role of president, Categories and Innovation. Under his leadership, this new group, integrating marketing, R&D, communications, digital and consumer marketing insight, will become the engine of strategic category and brand development, to drive best-in-class innovation worldwide. All Coty brands will be housed under four consumer-driven categories: fragrance, skin care, color cosmetics and body care. Each category will have dedicated teams with specific skills and competencies to develop the prestige and mass portfolio with total respect for each of the brand's DNA and positioning.
Leaders of the four categories will be:
• Steve Mormoris, previously in charge of Coty Prestige—American fragrance marketing, is appointed CMO fragrances.
• Johanna Businelli, previously in charge of Coty Beauty—color cosmetics marketing, is appointed CMO color cosmetics.
• Jill Scalamandre, previously responsible for Coty Prestige—skin care marketing, is appointed CMO skin care.
• Jurgen Scharfenstein, previously responsible for Coty Beauty—Adidas and Llifestyle fragrance marketing, is appointed CMO body care.
Jean Mortier, previously President, Coty Prestige, will be appointed president, global markets, to better leverage the company's global scale and bring stronger sales execution. The markets will be organized under four regions: North America, Europe, APAC/MEA and Latin America. Each will be led by a senior VP along with dedicated management teams to steer the business according to specific consumer and retailer needs and priorities. This new structure will support the progress toward developing a stronger global footprint, said Coty.
Leaders of the four regions will be:
• North America: Marc Rey, also President, Coty USA
• Europe: Stephane Tsassis
• APAC/MEA: Peggy Elsrode
• Latin America: Manlio Pizzorni
Supply chain, finance, IT, human resources and Legal functions will be reorganized to best support categories and regions in developing and delivering top-quality products with high standard of service through efficient integrated processes.
Coty had net revenues of $4.6 billion for the fiscal year ended June 30, 2013.