Bcg Matrix for Estee Lauder Co. Inc.

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  • Topic: Estée Lauder Companies, Marketing, Bobbi Brown
  • Pages : 2 (329 words )
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  • Published : April 7, 2013
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The following diagram depicts the BCG Matrix where the main brands of the Estee Lauder Company are depicted as stars, cash cows, dogs or question marks. As the diagram shows that the company has a significant number of big brands in the question mark category the future prospective growth for the company can be very good. BCG MATRIX|

STARS| QUESTION MARKS|
Good Skin Labs| American Beauty|
Grass Roots Research Labs| Estee Lauder|
Sean John| Flirt!|
Clinique| MAC Cosmetics|
CASH COWS| DOGS|
Bobbi Brown| Aramis|
Aveda| Stila|
Lab Series| |

Calculations:
DIVISIONS| REVENUES(MILLIONS)| %REVENUES| PROFIT/LOSS(MILLIONS)| %PROFIT| SKIN CARE| 3227.1| 41%| 341.1| 71&|
MAKEUP| 2978.2| 38%| 147.3| 31%|
FRAGRANCES| 1136.9| 15%| (14) LOSS| -3%|
HAIR CARE| 390.575| 5%| 11.5| 2%|
OTHER| 55.4| 1%| (6.3)| -1%|

. Backward, Forward or Horizontal Integration. Market Penetration. Market Development. Product DevelopmentSKIN CARE DIVISION (STARS II)| . Market Penetration. Market Development. Product Development. DivestitureMAKEUP DIVISION (QUESTION MARKS I)| . Product Development. Diversification. Retrenchment. DivestitureFRAGRANCE DIVISION (CASH COWS III)| . Retrenchment. Divestiture. LiquidationHAIR CARE DIVISION (DOGS IV)|

|

Recommendations:
. Rely on the global brand awareness and build it further by endorsing celebrities from the local markets.
. Have tie-ups with beauty salons, clinics etc to push their brands. . Using market research, find the brands that have been doing poorly and makes strategies to either improve it or close its operations. Having an idle brand will add on as a burden to the company. . Do not have too many brands for the same product category since it will lead to cannibalization. . Innovation is the key. Identify new customer needs like anti aging products and bring in products that suit the customers better.

. Focus more on selling over...
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