"Following the merger between P&G Specialty Beauty Business and Coty, how can we deliver on our newly formed company purpose?"
"Beauty comes from diversity and thrives when it is authentic"
At the end of 2016, Coty merged with P&G Specialty Beauty Business to become Coty. Coty is now the third-largest beauty company in the world, with approximately $9 billion in annual revenue. As a combined company, Coty will also hold the number one position in fragrances, and the second and third positions in salon hair and color cosmetics, respectively.
Defining why we exist
As part of the merger process, the joint leadership developed a new purpose - “We celebrate and liberate the diversity of your beauty”. This purpose was based on the belief that beauty comes from diversity and thrives when it is authentic and nurtured with individuality.
Fortitude was asked to work with the leadership to best establish how this new purpose could be given substance, particularly with regards to the positive and substantial contribution the company could make towards society, as well as the environment.
Drilling for insight
Using the mantra “We celebrate and liberate the diversity of your beauty” to frame the areas of investigation, we mapped the context by reviewing the corporate strategy, competitors, relevant megatrends, consumer insights and emerging issues. Following this, we held extensive interviews with the Chairman, every member of the Executive Committee, and their direct reports, to fully gauge what specifically the purpose could mean for their part of the business, whilst simultaneously challenging the traditional boundaries of beauty to shape the future.
Defining territories for impact
From this discovery phase, we determined three territories that we believed would connect to the new business in the short and long term.
Specifically, these territories would
Underpin the purpose
Support the company’s new values
Help drive growth, spark innovation, deliver trust and attract talent
Mitigate risk and reduce costs
We tested these out with members of the Executive Committee to assess direction, scale of ambition, and alignment to the purpose. Based on their feedback, we articulated a radical ambition statement outlining the societal and environmental contribution they wished the company to make.
The new purpose underpinned by substance
An Executive Committee aligned on the direction and scale of the company’s societal and environmental contribution
Defined territories that would help connect and drive forward the new business and its brands
A clear rationale and structure to develop more detailed plans and targets