Case Study
Universal Luxury
Overview: Universal Luxury Group is an international group of companies principally engaged in the production and sale of luxury goods including Food and Beverages, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, and other business. Among them, this case is handling Perfumes and Cosmetics business group that accounts for EUR 2,231M, 19% of sales revenue. * What is the organizational structure of Universal Luxury’s brands and R&D? ULV Organization: In order to pursue business unit and brands objectives of making savings on product development and encouraging cross-pollination of innovation across brands, Perfumes and Cosmetics division adopted to have both centralized organization for R&D function and decentralized organization structure for brand business units. With its mixed structure, ULV is expecting 1) to give each brand full freedom to develop its markets and product while keeping R&D centralized to make savings on product development and 2) encourage cross-pollination of innovation across brands. [Exhibit 1] As shown in Exhibit 1 which tells a brief organization concept, each brand or its marketing team can communicate with R&D team directly for its own purpose. Not shown in Exhibit 1, each brand has largely 3 product lines such as Skincare, Makeup (texture, color/shade), and Ancillaries like fragrance products. In this report, we are mainly take into consideration Development Laboratories for formulation functions in R&D center. Uncertainty risk management – temporary workers 20% in Skincare and Makeup Pilot Brands Organization: Under the horizontal structure, each independent brand was structured along product lines. There is a VP of marketing who is the only person responsible for the marketing strategy of the brand across all product lines. Following VP, product line managers, marketing directors, manages either the fragrance, skincare or makeup line.
Overview: Universal Luxury Group is an international group of companies principally engaged in the production and sale of luxury goods including Food and Beverages, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, and other business. Among them, this case is handling Perfumes and Cosmetics business group that accounts for EUR 2,231M, 19% of sales revenue. * What is the organizational structure of Universal Luxury’s brands and R&D? ULV Organization: In order to pursue business unit and brands objectives of making savings on product development and encouraging cross-pollination of innovation across brands, Perfumes and Cosmetics division adopted to have both centralized organization for R&D function and decentralized organization structure for brand business units. With its mixed structure, ULV is expecting 1) to give each brand full freedom to develop its markets and product while keeping R&D centralized to make savings on product development and 2) encourage cross-pollination of innovation across brands. [Exhibit 1] As shown in Exhibit 1 which tells a brief organization concept, each brand or its marketing team can communicate with R&D team directly for its own purpose. Not shown in Exhibit 1, each brand has largely 3 product lines such as Skincare, Makeup (texture, color/shade), and Ancillaries like fragrance products. In this report, we are mainly take into consideration Development Laboratories for formulation functions in R&D center. Uncertainty risk management – temporary workers 20% in Skincare and Makeup Pilot Brands Organization: Under the horizontal structure, each independent brand was structured along product lines. There is a VP of marketing who is the only person responsible for the marketing strategy of the brand across all product lines. Following VP, product line managers, marketing directors, manages either the fragrance, skincare or makeup line.