CASE ANALYSIS. GROUP 1
I. BACKGROUND OF THE COMPANY
Estée Lauder Companies, Inc. founded by Estee Lauder and her husband Joseph in 1946 started by selling four skin care products invented by her chemist uncle in beauty salons and hotels. The enterprise established their first department store account with Saks Fifth Avenue in New York in 1947. By 1960, Estee Lauder was an international manufacturer and marketer, selling their products in the famous Harrods Department Store in London. In the subsequent years, they opened outlets in Central America, Denmark, Hong Kong, Italy, Spain, Sweden, Belgium, New Zealand and Switzerland. Today, Estee Lauder markets its products through different brands in more than 140 countries and territories. It also holds the global license for fragrances and cosmetics. The company consists of a collection of prestige brands targeted at a diverse selection of consumers. The group’s portfolio of brands includes the most recognized labels for mature customers (Estee Lauder, Clinique, Prescriptives, Aramis, and La Mer), eco-correct labels (Aveda and Origins), as well as hip labels (M.A.C., Bobbi Brown, Tommy Hilfiger, Donna Karan, Stila, Jo Malone, Bumble and Bumble, Kate Spade, jane, Darphin and Smashbox). The Estee Lauder Companies is an organization which engages in the manufacturing, marketing, and sale of several beauty products. The company is divided into four sectors, skin care, makeup, fragrance, and hair care. Estee Lauder is based in New York City and currently employs 32,300 people. The products are mostly marketed through department stores, specialty retailers, upscale perfumeries, pharmacies, salons, and spars. Additionally products are sold at company owned free standing stores and through e-commerce in selected countries. The company is still controlled by the Lauder family, which controls about 70% of the voting shares. Estee Lauder’s grandson is currently the chairman of the board of directors.
II. STATEMENT OF THE PROBLEM
This case analysis attempts to determine the most effective strategies Estee Lauder must use in the Philippines. To determine the main objective of this case the researchers focuses on the major components of the case analysis which are as follows:
A. Market Analysis
1. To what extent will the Filipino consumer will support or use Estee Lauder products? 2. What are demographic profiles of the target users of Estee lauder in the Philippines? 3. What are the information needs of the Filipino consumer to divert their patronage to Estee Lauder products?
B. Technical Analysis
1. Based on the needs of the Filipinos what would consist the basic collection of Estee Lauder products that should be put up into Philippine markets? 2. Where the possible locations that will effectively inform and market to the Filipino consumer the Estee Lauder products?
III. OBJECTIVES OF THE STUDY
The primary objective of this study is to determine the most effective strategies Estee Lauder must use in the Philippines using market analysis and technical analysis.
A. Market Analysis
1. To determine the perception of the Filipino consumer on Estee Lauder products versus other beauty product competitors. 2. To verify the demographic profiles of the target users of Estee lauder in the Philippines. 3. To determine the information needs of the Filipino consumer to divert their patronage to Estee Lauder products.
A. Technical Analysis
1. To enumerate the possible collection of Estee Lauder products that should be put up into Philippine markets? 2. To plot possible locations that will effectively inform and market to the Filipino consumer the Estee Lauder products.
IV. INDUSTRY ANALYSIS
A. Analysis of the Macro environment
1. Demographic Environment
In the next 20 years, there would be an expected growth of sales of cosmetic products because roughly 70 million...