Estee Lauder

Topics: Advertising, 2009, Estée Lauder Companies Pages: 10 (3965 words) Published: March 28, 2013
Company Overview:
The Estee Lauder Companies Inc., ticker symbol EL, was founded in 1946. The company sells a variety of beauty and hair-care products and currently employs 31,300 people. Over the course of its lifetime, the company has bought or merged with many famous beauty brands. Some of the more recognizable companies that are a part of the Estee Lauder family include: Clinque, Aramis, La Mer, Origins, Bumble and Bumble, Aveda, and Bobbi Brown. In 2006, they were marketing their products to over 130 countries, and in September, they made agreements with the popular designers, Coach and Missoni, to create their fragrances. Also in 2006, Estee Lauder sold their makeup line, Stila, as it was not generating enough revenue. In 2007, they acquired Ojon, a popular Canadian hair-care company, but sold their Rodan + Field brands. Sales began growing tremendously in China and Russia and helped the company’s overall sales grow nine percent from the previous year. The company also announced that Frabrizio Freda, originally from Proctor and Gamble, would become their future president and chief operating officer starting in 2008. In 2008, Estee Lauder hired Omnicon Media Group’s M2M as their advertising agency in twelve different countries including places in Europe and Asia. During 2008 Estee Lauder also introduced their Time Zone Line and Wrinkle Reducing Moisturizers which were clinically proven to reduce the skin’s visible age. The company also opened up a brand new facility in Ontario for manufacturing and development. Situational Analysis:

During the months of September, October, November, and December, Estee Lauder advertised the following products: Double Wear Lipstick, Advanced Night Repair, Double Wear Makeup SPF 10, Bold Volume Lifting Mascara, and Sensuous by Estee Lauder (perfume). The most popular items advertised were the Double Wear Lipstick, which ran three different magazine ads, and the Advanced Night Repair which was featured several times on the fourth cover page of magazines and in promotional company emails.

Situational Analysis:
The features of the Double Wear line include the option to choose liquid or powder makeup, the ability to create desired coverage, and a wide range of shades for every skin type. The advantages of the Double Wear line are the twelve to fifteen hour staying power and that makeup is comfortable to wear and silky smooth to the touch. The benefits of the Double Wear line are that the products contain SPF-10 and once the makeup is applied, there is no need for touchups. The features of the Advanced Night Repair are that it prevents future aging damage from occurring and it reduces damage that has already been done to skin. The advantages of the Advanced Night Repair include over twenty-five years of research behind the formula, Estee Lauder’s exclusive Chronolux Technology, and it has over 20 patents worldwide- so you can’t find it anywhere else. The benefits of Advanced Night Repair are the dramatic reduction in the visible signs of aging on the face. Estee Lauder sells a variety of beauty care products besides the ones that are advertised. They sell makeup for the face, eyes, and lips, along with tools such as makeup brushes, makeup remover, and nail polish. They also sell many skincare products for different needs, such as firming, age-prevention, anti-wrinkle, moisturizers, and the evening out of skin tone. They also have a luxury line called Re-Nutriv that contains an assortment of makeup and skincare that contain real gemstones within their formulas. Estee Lauder also sells fragrances for men and women. Many gift sets that contain a mixture of skincare, perfume, and makeup are also offered for reduced prices. Estee Lauder’s target market is defined by several categories, the broadest being females. This is due to the fact that most of Estee Lauder’s products are catered towards females. Since many of Estee Lauder’s products involve...
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