Magic of

Ethnic Marketing
for Breakthrough
Results
By Linda Singh
Senior Marketing Director
Coty Beauty

Sept. 15, 2009

Success-Secrets of Ethnic Fragrances
Our Heritage

• Coty’s Heritage Dates Back to 1904,

founded by François Coty

• One of Only 3 Global Beauty

Companies Over 100 Years Old

• The World’s Leading Fragrance Maker

• Our Legendary Past & Future is Based

on A Free-Thinking, Creative Culture
 Worldwide Presence

Dubai
China
Hong Kong
Japan
Canada Singapore
United States France Netherlands
Australia
Puerto Rico Belgium Germany
Mexico Ireland Poland
Brazil United Kingdom Slovak Republic
Argentina Switzerland Czech Republic
Chile Italy Austria
Portugal Hungary
Spain Romania
Greece
 DESIGNERS

LIFESTYLE

CELEBRITIES
No.1
Worldwide
position in
fragrance
 COTY – Our Passion
• In the US alone, over $6 Billion in Fragrance is sold each
year

• Over 800 Fragrance Launches Worldwide Resulting in

Significant Competition that Demands Innovation

• Coty Believes in Fragrance:

• The power of scent can evoke feelings of desire, health,
happiness, sensuality, fear & more
• Our memories are tied to scent, & a whiff of some aroma can takes
us back to our earliest childhood or remind us of our 1 st love
 Recession Blues

Source:: Mintel
 Premium Fragrance Sales
Continued to Grow
“ Beauty products make me feel confident”, general consumer sentiment.

$ Sales in millions

Premium +26%
More than
Doubled

NPD Group’s Consumer

Panel findingsSuccess-Secrets
‘08 of Ethnic Fragrances
But Overall Fragrance Sales Declined
Fragrance $ Sales Without 4th Quarter (January – September)

-1% +1% -2%

Fragrance $ Sales 4th Quarter (October – December)

-1%
-4%
-10%

Success-Secrets
Source: NPD of Ethnic
Group’s Consumer Panel Fragrances
Findings ‘08
How every $100 was spentIfon
I Had $100 Dollars…
different
Beauty Products
 Fragrances are Losing out

The $100 spending split on different beauty categories

Skincare Makeup Fragrance

34.4% 30.4% 23.9%

Fragrances’ share has shrunk

NPD Group’s Consumer Panel findings ‘08

Fragrances have continued to Slide
Total Beauty $ Share
(2005-2008)

NPD Group’s Consumer Panel Findings ‘08

 Fastest Growing Reasons For Not
Wearing Fragrances
18-24% 25-34% 35-44%
No Interest Too Expensive Social Causes

NPD Group’s Fragrance Annual ‘08

Need For Ethnic Marketing to
boost niche social positioning
Source: NPD FragranceTrack
Fragrance Business Reality
• Fragrance buying is a very personal choice
• Fragrance brand loyalty is a continued emotional connection
• More women than men use fragrances
• Cultural conditioning is a very powerful emotional force in
individuals
• Ethnic marketing allows fragrances to bond culturally and
emotionally with users
• Niche positioning and ethnic marketing are ‘Magic Messiahs’ for
Fragrance Industry
 Ethnic Fragrance Facts
• Hispanic & AA females are frequent appliers of fragrance
throughout the day
• There is an opportunity to reach out to ethnic females
•88.3% of AA women wear fragrance, down 2.0% from
90.3% in 2007
•84.8% of Hispanic wear fragrance, down 6.3% from
91.1% in 2007
• Hispanic women over index with fragrances that are light,
fresh, and smell natural
• AA women over index with fragrances that are light,
casual, modern & trendy

Source: NPD 2008 Women’s Fragrance Track 11/08

 Changing US Demographics

Source:: Mintel
Success-Secrets of Ethnic Fragrances
Ethnic Americans prefer
Niche/Ethnically Targeted Advertising

Source:: Mintel
Success-Secrets of Ethnic Fragrances
 Quote
"There used to be one ideal consumer. today
and tomorrow belongs to be many different
ideal consumers ... and we're all going to
have to be really good at guessing what
they want and where they want to be
pampered."
Coty’s Ethnic Marketing ‘SENSE’

S: Smart & Sexy

E: Evolutionary

N: Novel

S: Sensible & Sustained

E: Engaging
Coty’s Ethnic Marketing ‘SENSE’

Brands aren’t people. People are people. Culture

doesn’t belong to brands. Brands belong to
culture.

Martin Lindstrom, author of Brand Sense: Build

powerful brands through touch, taste, smell,
sight, and sound, says that 75 % of all emotions
we generate every day are due to what we smell
—not see
 S: Smart & Sexy- Jennifer Lopez
• Partnered with Jennifer Lopez to create Glow by JLO in 2001

• Glow by JLO breakout success opened the Celebrity scent category,

a modern way for today’s media-savvy youth to connect with scent.
The J-Lo Success Story at Launch

Glow by J.Lo, debuted in 2002 when the

market for celebrity fragrances was largely
inactive. Sold at specialty stores and
department stores and generated ____$ in
its first launch year, and ranked as the #1

J-Lo line of fragrances are one of the

biggest success stories in the entire
fragrance industry
The JLO Success story remains so
today

•Generating well over $___ in retail sales

• #3 Fragrance House in 2008
•Top selling Christmas gift set brand in 2007
 E: Exotic & Evolutionary
 Kimora Lee Simmons - an iconic Asian urban celebrity

 $750 million baby phat urban powerhouse fashion brand

 Targeted ethnic youngsters in 15 -24 age group with an urban glam

mindset

 Delivered Unique Packaging - Crystal shaped bottle representing

Kimora’s love for diamonds and opulence.

 Brought the brand to life with a catchy theme ‘are you a goddess’
Success-Secrets of Ethnic Fragrances
 N: Natural & Novel

#1 Ethnic fragrance brand in 2007

Enter other launch data here

 S: Sensible & Sustained
Coty utilizes many media channels to reach millions of
people on a global basis and creates event centered
around the brand to be heard over and over

Success-Secrets of Ethnic Fragrances

 E: Engage Consumers Everywhere

BRACELET AUCTION TO BENEFIT

VICTIMS OF DOMESTICofVIOLENCE
Success-Secrets Ethnic Fragrances
Accelerating Ethnic Marketing
throughout Coty

 Acquire companies and competencies

 Breakthrough Innovation process
 New ways of Collaborating with retailers partners
 Newer Promotional Mix (digital media, new ways of
sampling etc)
 Despite the large number of headline brands, there
is very little cannibalization

Success-Secrets of Ethnic Fragrances

Many of Coty’s partnerships reflect the
company’s commitment to diversity

“We look at our business as a wonderful and dynamic

global enterprise, filled with passion and dedication,
to ultimately create new visions of beauty,” says
Beetz. “From the sexy, playful tone of Baby Phat’s
Kimora Lee Simmons and the distinction of Kenneth
Cole, to the star power of Celine Dion, Shania Twain
and Jennifer Lopez, not to mention critically
acclaimed designer Calvin Klein – we clearly thrive in
an a diverse beauty landscape

Success-Secrets of Ethnic Fragrances

Succeeding through Ethnic Marketing

 Be keyed in to the chronological & cultural differences of US

consumers

 Continued focus on ethnic market segmentation

 Success comes through strategic niche marketing innovations

 Appeal to both ends of age spectrum & to different ethnic

consumers
Suceeding through Hispanic Marketing
1) Engage Hispanic Consumers Online
• Paid search marketing is an effective way to reach the online
Hispanic community
• Google and Yahoo have Hispanic-targeted syndication partners
(Terra, Univision, Telemundo and AOL Latino)
• Hispanics welcome email promotions more times per month
than non-Hispanics
2) Hispanics are Group-oriented and have Strong Ties to
Friends and Family
• Do not rely solely on TV or internet to reach them
• Street fairs & festivals are extremely popular (Hestia
International)
• Social media sites are a great way for your brand to interact
(Facebook, Twitter, MySpace)
Suceeding through African American
Marketing
 Thank You
Linda_Singh@cotyinc.com
Senior Marketing Director
Coty Beauty US

Success-Secrets of Ethnic Fragrances