Coty to review its $267m media business

The world's largest fragrance company ' Coty ' is in the process of initiating a global review of its media planning and buying business that has an estimated worth of $267 million. The review is going to be headed by Coty's Sr. VP, Corporate Media, Sigrun Graeff and will include business through the portfolios that have an operating presence in 90 countries.

Media professionals believe it to be a jolting decision. To bring about a global pitch comes as shocking news. The decision about a global pitch comes in a time when certain local market reviews are already underway, including US that alone contributed close to $104 million.

The review will also include the $37 million UK account that was taken by Omnicom's OMD just seven months ago.

A market survey by Nielsen reported that the ad spend across the group had dropped about 20% owing to the global economic depression. However, last year's drop notwithstanding, Coty's CEO, Bernd Beetz has high hopes to realize a $1bn gain in 2010 vis-à-vis 2008 in annual sales. The sales in 2008 were at $4bn and Beetz is hoping to touch $5bn in 2010.

The 105-year-old cosmetics conglomerate has popular brands like Calvin Klein, Cerruti, Davidoff and Marc Jacobs under its Coty Prestige portfolio while Adidas, David and Victoria Beckham and Kate Moss operate as brands belonging to Coty's Beauty portfolio.