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Estee Lauder Company Strategic Analysis Sample

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30 June 2012

Estee Lauder2Table of ContentssIntroduction…………………………………………………………………………………………………………… . 3

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Estee Lauder’s History………………………………………………………………………………………………4

Estee Lauder’s Product Mix……………………………………………………………………………6Competitors…………………………………………………………………………………………………6

General Strategy…………………………………………………………………………………………………… . . 7

Target

Market…………………………………………………………………………………………………………7 Strengths………………………………………………………………………………………………………………8 Weaknesses…………………………………………………………………………………………………………… . 9

Menaces ……………………………………………………………………………………………………………… . . 10 Opportunities……………………………………………………………………………………………………… . 11

Fiscal Analysis………………………………………………………………………………………………… . . 13

Estee Lauder’s Gross Profit Margin ( 2010-2012 ) ………………………………………………13Estee Lauder’s Total Net Income ( 2010-2012 ) ………………………………………………… . 13Comparison with Competitors ( 2012 ) …………………………………………………………… . . 13

Future Goals of Estee Lauder………………………………………………………………………………… . . 14 References…………………………………………………………………………………………………………… . 15.

Estee Lauder3Introduction

This research paper will research the Estee Lauder company. This paper will include the history of Estee Lauder. and how Estee Lauder started in the United States.

and now has become one of the most popular markets for beauty attention in and out of the United States. This paper will give the reader a strategic analysis of the company. The paper will explicate the competitory advantage. fiscal properties. along with strengths and failings. growing chances. and future ends of Estee Lauder. The paper will discourse Estee Lauder’s rivals. and how Estee Lauder continues to get the better of and endeavor for more prestige beauty attention.

Estee Lauder4HistoryEstee Lauder is a maker and selling company for prestigiousness skin care.

make-up. aroma and hair attention merchandises. The central office of the company is in the Manhattan country of New York City. New York. Estee Lauder began in 1946 when Joseph Lauder and his married woman Estee Lauder ( Josephine Ester Mentezer ) began bring forthing cosmetics in New York City. In the beginning they merely had four merchandises. These four merchandises included a Super-Rich All Purpose Creme. Creme Pack. Cleansing Oil. and Skin Lotion. Mrs. Lauder sold these four merchandises in salons and hotels in the New York country. Within two old ages. they established their first section shop history in Saks Fifth Avenue in New York. Their market thought of gift with purchase. made a manner for Estee Lauder to advance more of their merchandise by giving sample sizes of pick based pulverization with their purchase. A new creative activity came approximately and selling their celebrated face creme made with an whole egg. Estoderme. which was made in 1951. Estoderme besides was being sold at Saks Fifth Avenue in New York.

In 1953. Youth Dew was created. it was a bath oil. since in this clip. aromas were given as gifts to adult females. adult females were non purchasing for themselves outright. With the creative activity of Youth Dew. if gave the adult females a sense of smelling good. without experiencing guilty. In 1959. Evelyn marries Leonard Lauder. and becomes portion of the household concern. Evelyn Lauder starts instruction plans for beauty advisors. a must hold in this concern.

Estee Lauder did good over the following 15 old ages. and in 1960 they went planetary with their first international history in the London section shop Harrods. In 1961 they open an office in Hong Kong. In 1964. they started Aramis Inc. . which is a line that produces merchandises for work forces. These merchandises include Colognes and preparing points. In 1965. the first mill in Oevel. Estee Lauder5

Belgium becomes unfastened. and gives Estee Lauder an international measure to boom. In 1967. they produced a 2nd line for work forces that included tegument attention. In 1968. Estee Lauder launches. Clinique. It is the first skin doctor created prestige beauty trade name. with 117 merchandises. In the 1970ss. 1974. Estee Lauder hired photographer Irving Penn to hit the celebrated “Twice a day” ad for the Clinique Line. In 1979. Prescriptives is created. In 1982. Estee Lauder creates the first nightlong creme attention for anti-aging. being named. Night Repair. In 1985. Beautiful became known. It was a aroma that was made from 2. 000 fresh flowers. and hit in the top 10 at this clip. and still remains one of the most favorite aromas. In 1989. Estee Lauder opens their first perfumery in Moscow. Soviet Union. In 1990. Origins is created.

It is the first health trade name in the United States. In 1992. Evelyn Lauder and Alexandra Penney create the Pink Ribbon to delegate it with chest malignant neoplastic disease. and do everyone aware of this malignant neoplastic disease. The BCA run distributes 1. 5 million pink threads across its 2500 Estee Lauder counters in this twelvemonth entirely. In 1993. Estee Lauder begins licencing some of their aromas. Example is Tommy Hilfiger. he is a manner interior decorator now with a perfume/cologne line. In 1993. Estee Lauder and Clinque launch in Shanghai. China. In 1994. Estee Lauder buys a bulk involvement in MAC cosmetics. in Toronto. Canada. Estee Lauder so creates a M. A. C Aids fund to function all races. ages. sexes who are affected by this disease. They used Ru Paul and Lady Gaga as their interpreter. In 1995. Estee Lauder becomes active in the stock exchange. In 1996. the company launches its first e-commerce site for Clinique and Bobbi Brown. In 1997. the company acquires their first hair attention trade name. Aveda. In 2004. American Beauty and Flirt launch in Kohls Department Stores in the United States. In 2009. the first Bumble and Bumbling manner saloon opens in Bloomingdale’s Estee Lauder6

59th street. New York. In 2009. Estee Lauder launches new version of their Night Repair. In 2010. Beginnings opens first counter in mainland China. at Parkson Department Store. Besides in 2010. PureDKNY is introduced with Aramis and Designer aromas. Smash box joins the portfolio in 2010 as good. In 2011. Estee Lauder marks on 3 foreign radiuss theoretical accounts to heighten their planetary scheme. These theoretical accounts are Liu Wen. China. Constance Jablonski. France. and Joan Smalls. Puerto Rico. In 2011. a new invention centre is built in Shanghai. China. These will give Estee Lauder an advantage to work and develop merchandises tailored to Asiatic tegument attention. Trade names of Estee Lauder-Product Mix

Estee Lauder M. A. C Darphin Kiton La Mer Michael Kors Bobbi Brown Donna Karan Bumble and bumble Aramis Aveda Jo Malone Clinique Prescriptives Lab Series Skincare for Men Origins Tommy Hilfiger American Beauty Flirt! GoodSkin Labs Grassroots Research Lab Tom Ford Coach Ojon Smashbox Ermenegildo Zegna

RivalsEstee Lauder does hold rivals. Their chief rival is Proctor and Gamble. Proctor and Gamble sells makeup. cremes. hair and tegument attention merchandises at cheaper costs. The other chief rival is L’Oreal. L’Oreal is the universes largest beauty merchandises company. Proctor and Gamble and L’Oreal sells in all shops. Walt-Mart. Roses. Dollar General. Walgreen’s. etc. Estee Lauder sells in section shops and/or online. This can be a great competitory advantage for Estee Lauder every bit good its rivals. Estee Lauder 7

General StrategyEstee Lauder’s scheme is to heighten 1s beauty/aging procedure by selling skin merchandises to both female and male consumers. They besides carry aromas and aromas to supply 1s ability to smell good. Their scheme is to market their merchandises with specific trade names to each consumer. An illustration would be the M. A. C. Line. which is used to derive popularity by all races and infinities. and age.

Target MarketEstee Lauder’s mark market is all races. all snaps. all ages. male and female. Estee Lauder has merchandises that are low-cost to all economic categories. Estee Lauder is now able to make the younger crowd every bit good as the older crowd of consumers. be it adult male or adult female.

Estee Lauder8Estee Lauder Strengths and WeaknessesStrengthsThe Estee Lauder Company is a prima maker and seller of aromas. tegument attention. makeup. and hair attention merchandises. ( Hoovers. 2013 ) The company offers merchandises under celebrated trade names including Estee Lauder. Aramis. Clinique. Origins. MzAzC. Bobbi Brown. La Mer. and Aveda. ( Hoovers. 2013 ) New aroma line to come out in October 2013. “Tory Burch” : Tory Burch signed on with Estee Lauder with a multi-year understanding in October of 2011. Estee Lauder sells most of their merchandises through upscale section shops. forte retail merchants. upscale perfumeries. and pharmaceuticss. prestige salons. and watering place. ( Hoovers. 2013 ) Estee Lauder merchandises are sold in morethan 150 companies. ( Hoovers. 2013 ) The company has offices in 50 states.



These countries are in the Middle East. Africa. Europe. America. and the Asia Pacific. ( Hoovers. 2013 ) Estee Lauder has a strong impact in prestige beauty in the North Americas and China. Skin attention merchandises seem to be the best merchandise strategically. nevertheless. with make-up due to peculiar lines. the gross revenues have increased in 2013. 3rd one-fourth as good. ( Hoover. 2013 ) In 1992. the BCA. ( Breast Cancer Awareness ) run was launched by Evely H. Lauder. She was the co-creator of the pink thread along with Self Magazine as the symbol of chest wellness. ( Wikipedia )

Estee Lauder9FailingsEstee Lauder has been a mark with a large boycott run since 2001. In February of 2001 pro-Palestinian militants targeted the corporation due to Ronald Lauder’s activities of pro-Israel. In June 2003. San Francisco-based Fagots Sabotaging Israeli Terrorism ( QUIT ) took up the boycott with their slogan “Estee Slaughter” . Estee Lauder does prove their merchandises and ingredients on animate beings prior to worlds and before doing them available to public. At this clip. there is failing in the Southern Europe Countries and Korea due to economic uncertainnesss. so net gross revenues did bead. but overall the company as a whole has done good. It is projected. that while Korea will still hold failing in prestige beauty. it will turn by 6 % in changeless currency.

Estee Lauder10MenacesThe major menace to Estee Lauder is non traveling to hit this company at whole. Due to Estee Lauder holding many merchandises. and major names and labels. each menace is labeled to a different class. so the gross revenues will either addition or lessening. The company as a whole will equilibrate each one out. nevertheless there are some classs making better than others. There are some geographical parts making worse than others. By merchandise class. Estee Lauder saw its skin attention net gross revenues for the one-fourth at $ 1. 015 billion. make-up net gross revenues were $ 919. 2 million. fragrance net gross revenues were 233. 2 million. hair net gross revenues came to 2. 29 billion. ( GCI Magazine ) By geographic part. Estee Lauder recorded net gross revenues for the one-fourth of $ 988. 1 in the Americas. $ 847. 9 million in the Middle East. Africa. and Europe. and $ 455. 8 million in Asia-Pacific. ( GCI Magazine ) A major menace for Estee Lauder is their advertisement. With the changeless advertisement of tegument attention merchandises. and make-up. they can potentially acquire a judicial proceeding instance on them on enforcing unnatural beauty is non beautiful. Besides. with all the costs of advertisement and paying for top theoretical accounts and histrions and actresses. it could be the company more.

Estee Lauder11OpportunitiesEstee Lauder prepares the launch of its new aromas. which are in creative activity for shortly 10 old ages. Among these aromas we can happen the new aroma “Modern Muse” and the perfume “Uomo” of the Italian trade name Ermenegildo Zegna. Furthermore. the launch of several aromas inspired by the particular gustatory sensations of certain states such as the Middle East or still Japan is planned for shortly. Indeed. Estee Lauder is known to make local trade names being inspired by demands for the assorted populations. for illustration. the trade name “Nutritious” which was specially created to score the Chinese. Some groups such as P & A ; G or L’Oreal have already conquered China in term of cosmetics ; they register of of import net incomes and a existent commercial growing. Estee Lauder is that the fifth market participant of cosmetics behind these two groups. it registers nevertheless an addition of its gross revenues of 13 % in 2011 and reaches a figure of 6. 2 billion euro turnover. The group would warrant this addition through the success of its merchandises with the Chinese of the whole universe which would stand for about 700 million euros of its gross revenues of 2012.

However. in malice of the high potency that militias the Chinese market. Estee Lauder uninterrupted to keep its strong presence in the United States. where it holds at present 38 % of the market portion. Indeed. for the CEO of the group. the United States represent the most emergent and promising state of the universe. Many positions would be planned with in peculiar two figures which would be representative of the development of cosmetics within the Estee Lauder12

population Americans. Harmonizing to Fabrizio Freda. 70 % of the growing will come from the old adult females of more than 55 old ages old and 80 % of the growing of the market of cosmetics will be represented by the populations of beginnings African and Latinos. ( HTTP: //marketing/Estee-Lauder-bases-its-future-growth-on-perfumes-and-make-up/ )

Estee Lauder13Fiscal AnalysisEstee Lauder Company reported net gross revenues for its 3rd one-fourth stoping March 31. 2013 at $ 2. 29 billion. a 2 % addition compared to $ 2. 24 billion in prior-year one-fourth. The company reported net net incomes for the one-fourth rose 37 % to $ 178. 8 million. compared with $ 130. 4 million last twelvemonth. ( GCI Magazine ) Estee Lauder’s Gross Profit Annually

June 292010June 292011June 292012$ 5. 966. 400 $ 6. 873. 100 $ 7. 717. 800Estee Lauder’s Total Net IncomeJune 292010June 292011June 292012$ 478. 300 $ 700. 800 $ 856. 900Proctor & A ; Gamble and L’Oreal Comparison of Gross Profit and Entire Net Income Proctor & A ; Gamble ( 2012 )L’Oreal ( 2012 )Gross Profit $ 41. 289Gross Profit $ 20. 978Entire Net Income $ 10. 756Entire Net Income $ 3. 789Estee Lauder 14Future Goals and Projected Growth AreasEstee Lauder has projected more growing in China. In today’s society. males are going concerned about their tegument as good. Estee Lauder will besides go on to market M. A. C as their stepping rock into the international market in the Latino. African. and Middle Eastern states. Estee Lauder wants to capture all sexes. all races. all ethnicties. and all ages.






















I believe if Estee Lauder continues on with the thought of gift with purchase. this excessively will market their new creative activities for the old ages to come. With the past runs refering Breast Cancer and Aids. I would wish to see Estee Lauder do a run for Alzheimer. this could profit the company every bit good.

MentionsWorld Wide Web. gciamagazine. com/business/financial/205790371. HTML?utm_source+Most+Read & A ; utm_medium+websiteHypertext transfer protocol: //www. warc. com/latestnews/news/est_e_lauder_targets_chinanes Estee Lauder Companies-WikipediaGCI MagazineWikipedia/wiki/Estee_Lauder_CompaniesWilliam hoovers. 2013World Wide Web. elcompanies. comyokel finance. comEstee Lauder Companies ( EL )hypertext transfer protocol: //models. com/oftheminute/ ? p=17176models. comWikipedia/Estee_Lauder_CompaniesHypertext transfer protocol: //seekingalpha. com/article/1493712-the-estee-lauder-companies-inc-presents-at-dbaccess-10th-annual-global-consumer-conference-jun-11-2013-11-15-am? page=2 hypertext transfer protocol: //www. businessweek. com/articles/2013-03-21/with-m-dot-a-dot-c-dot-est-e-lauder-enters-emerging-markets Self-Evaluation











Cite this Estee Lauder Company Strategic Analysis Sample

Estee Lauder Company Strategic Analysis Sample. (2017, Jul 19). Retrieved from https://graduateway.com/estee-lauder-company-strategic-analysis-essay-sample-557/

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