Strategic Project - Merger & Acquisition
The company
Coty Inc. a French-American multinational beauty company. With its subsidiaries, it develops, manufactures, markets, and distributes fragrances, cosmetics, skin care, nail care, and both professional and retail hair care products.
Coty acquired P&G’s Fragrance, Color Cosmetics and Hair Color Business (“P&G Beauty Brands”) for $12.5bln, creating one of the world’s largest beauty companies, with pro forma combined annual revenues of more than $9 billion based, strengthening Coty’s leadership position in the global beauty industry. Following the transaction with P&G Beauty Brands, Coty is expected to become the global leader in fragrances with market leading positions in color cosmetics and hair coloring & styling.
the challenge
Coty’s acquisition of the P&G Salon Professional, Retail Hair Color, Cosmetics and Fine Fragrance business which covered over 43 brands, required a highly skilled, experienced and “heavy weight” supply chain leader to lead the global customer service and master data complexity.
Due to fixed penalty dates to exit Transition Service Agreements (TSA), timing was a crucial factor and Coty needed a combination of a seasoned supply chain leader also highly skilled in complex PMO leadership. The individual was required to hit the ground running and define what needed to be done and to be organized to execute fast. Kaleidoscope was engaged to provide this leadership via James Amoah, CEO.
THE KALEIDOSCOPE APPROACH
Within 48 hours of arrival Kaleidoscope had assessed the tenders of the Big 5 consultancies to support the Customer Service elements and reshaped the approach, saving the organization $5MM.
Wave 0: Ensured Business Continuity for and satisfied customers for Day 1 – integrated “mandatory” capabilities for Day 1 where no TSA could be found and ensured business continuity and satisfied customers.
Established Global Customer Service Operating Model – Process, People, Systems.
Wave 1: Exited TSA and realized consolidation region by region – NA, EMEA and Asia Pacific – over a period of 12 months. I ensured that Business Continuity was sustained and Customer Satisfaction via robust processes, defined roles and responsibilities and training deployed effectively.
Kaleidoscope led the Customer Communications deployed to all the Business Units General Managers globally.
the results/benefits
The complexity of the change, time of execution and success of the TSA Exit has been referenced as a Best In Class by PWC, Bain and Accenture M&A Consultants. The Customer Service area that Kaleidoscope led directly was particularly recognized.
Due to success with the M&A, Coty extended Kaleidoscope’sengagement to lead the Integration phase to Simplify and Standardize – One Order, One Shipment, One Billing – for all the Business Divisions, Business Units across the Coty/ex-P&G businesses,
Kaleidoscope also successfully led this transformation.