Estee Lauder

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

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