“I had to fulfil a dream when I worked for Ferrari, and do everything I could to make that dream even more desirable. It’s not so different for fragrance. You are still creating emotion, fulfilling dreams, buying into something. Wherever and whenever you work with a luxury product, you try to build a dream around a name.” |
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In the three years since Lancaster Group Worldwide President Michele Scannavini has been in charge, Lancaster’s business has gone through the roof while the brand’s portfolio has expanded exponentially |
Lancaster Group Worldwide President Michele Scannavini is an outsider – in the best possible way.
Before being appointed in March 2002 the charismatic Italian was CEO of sport apparel and footwear company Fila Holding. Prior to that Scannavini was Head of Sales & Marketing for Ferrari and Maserati.
But maybe it’s true that the onlooker sees more of the game, because Scannavini arrived with a fresh eye, new ideas and big ambitions.
In the three years since he has been in charge, Lancaster’s business has gone through the roof while the brand’s portfolio has expanded exponentially, with the global prestige fragrance business of Unilever the most recent addition.
Scannavini gives Rebecca Mann his take on the next chapter for Davidoff; his general tenure so far; and what the future might hold for the Lancaster Group.
The Moodie Report: Why in your opinion has the Davidoff license been so enduringly successful?
Michele Scannavini: “Firstly, the brand value that Davidoff encapsulates, this intense experience of living, is a strong and everlasting concept. It’s not something “˜in the trend’.
Then of course Cool Water has been instrumental. It’s still in the market almost 20 years after its launch, and it’s one of the most successful men’s fragrances in the world.
The fragrance per se was a change, being so new from an olfactory standpoint. And the concept of freshness and the natural environment is so simple. It’s so easily understood and so relevant to so many people. And importantly it’s as relevant today as it was 20 years ago.
So both those two elements have contributed to the longevity of Davidoff. More recently we have covered different territory with Echo and now the Silver Shadow franchise will give yet more substance to the positioning of Davidoff.
Conventional wisdom says that to succeed fragrances need a fashion or cosmetics heritage, or a famous celebrity face. Davidoff has been successful without that. What are the issues – advantages/disadvantages – in creating a fragrance that doesn’t have that kind of background?
We have carried out some research in a few countries, and what we discovered was that Davidoff’s association with fragrance is as strong, or in some cases, stronger than its association with tobacco.
So it is now mostly perceived as a fragrance house, thanks largely, but not exclusively, to the success of Cool Water. That makes it not so difficult to come with new concepts and ideas for things that are not related either to fashion or celebrity.
We have invested a lot of money to establish Davidoff as a fragrance company. It’s a big house: today we do around US$280-300 million worldwide. And we invest about 30-40% in advertising and marketing activity, so you can work out [what we have spent] in order to establish the name and to communicate the brand values in the best possible way.
Was the success of Cool Water in one sense a burden, because how do you follow that? A nice problem, admittedly”¦
In some ways it’s not easy to have a product that is so strong and so stable, but what it does do is provide the means to invest in innovation. (Laughs) so each company should pray to have a problem like Cool Water, which has kept itself, although not without investment of course, at a very high level for almost 20 years.
“Davidoff could be a good opportunity for entry into a broader grooming line for men. We have experimented in the past and maybe then we were too premature, but I think now there is opportunity there. It is something we are considering.” |
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“Silver Shadow is perfect to express this prestigious and yet also sentimental world,” says Michele Scannavini |
There have been a number of feminine launches over the years, but do you consider Davidoff is and will remain primarily a men’s brand?
It talks to men and to women, and we have had some very good business with Cool Water Woman. But I must admit it is more tailored to men.
Presumably then it would be an ideal platform from which to enter the burgeoning men’s skincare market – and indeed expand Lancaster’s general presence within the cosmetics sector?
I agree that Davidoff could be a good opportunity for entry into a broader grooming line for men. We have experimented [unsuccessfully] in the past and maybe we were too premature, but I think there is opportunity there. It is something we are considering.
But the fragrance market is still growing. And I prefer to be sure first that we are maximising our potential within fragrance, and that we are reaching the right level for Davidoff [within this business].
What is your overview of the travel retail channel, from both a personal and professional viewpoint?
I like this environment very much, because it’s where you have the quintessence of the retail approach within the fragrance industry. It’s where, if you retail in the right way, you can make a difference. It’s where, sometimes, you have more opportunity to give real breadth to your brand, in terms of presentation, theme, events and animations.
Let me say also anecdotally, that before getting into the fragrance business, I travelled a lot, and spent a great deal of time at airports. As a consumer I liked fragrance and cosmetics very much, and I spent a lot of time sniffing and looking.
So much so, that when I started working in this industry, I had to learn everything else fast, but regarding travel retail I already had a really good idea of what was involved because I had been such a good consumer.
Specifically for Lancaster, I think the team has done a tremendous job within the past two, three years. Our presence in the channel has improved a lot.
What specifically has worked well for Davidoff?
The way it is portrayed today in most airports, and inflight, is excellent. There is a very good, consistent representation and presentation of the brand.
For Cool Water specifically, the team has organised some fantastic events. During the Athens Olympics, we had events in 86 airports worldwide. This year we are working with Rip Curl for surfing. These are mega events that we do in 70, 80, 100 airports. And they give an image of the brand that is unusually striking.
More on Silver Shadow: Click on images to read the stories | |
 | Lancaster embarks on a fragrant new journey |
 | Making scents with a nose |
 | Turning old into gold – via silver |
You’ve been in post for three years and delivered some very good financial results in that time. What are you most proud of?
The first thing is the energy that I contribute to the business, to the innovation. I have a lot of belief in creativity and innovation. We have intensified the programme of the brands, and given a lot of life and energy to them. Our rate of innovation in the past three years has increased substantially, and also the success. So it’s not only about quantity, but quality too.
The second thing I’m proud of is how we have built up a good team with a very entrepreneurial culture. People feel empowered. They are asked to take the initiative, to take risks, to be creative in their jobs. We have a very motivated team. And most importantly of all, I think that team is having fun.
How much of a leap has it been from fast cars to fragrance? Has your time so far been how you expected it to be?
Obviously, the technical side is very different. But I have found some similarities, and as a matter of fact, I expected to.
I had to fulfil a dream when I worked on Ferrari, and do everything I could to make that dream even more desirable. It’s not so different for fragrance. You are still creating emotion, fulfilling dreams, buying into something. The principle of what pushes someone to purchase a certain brand, be it a fragrance or a car, is not so different either. Wherever and whenever you work with a luxury product, you try to build a dream around a name.
There’s been quite a lot of corporate shopping since you joined. What can you tell me at this stage of your plans for UCI? And are you happy with the portfolio as it stands or should we expect further acquisitions?
Firstly, I’m very pleased that our new acquisitions, such as Kenneth Cole, have been so successful. All I can say about UCI at present is that we will take our time to understand it, and to merge those brands into the group in the most successful and effective way.
Our portfolio now is very competitive. But if good things became available, we would of course consider them. However, anything new would have to give us additional competitive advantage. We will not buy just for the sake of it.
MORE STORIES ON THE LANCASTER GROUP
Coty completes purchase of Unilever’s prestige fragrance business – 11/07/05
Lancaster invites consumers to get the Lopez look – 29/06/05
The Lancaster Group smells Lovely with first Sarah Jessica Parker scent – 28/06/05
The Lancaster Group and Kenneth Cole aim for another good Reaction – 21/06/05
