Estee Lauder 2011 Case Study
Estee Lauder 2011 Case Study
1. Case Abstract
This case study is about the cosmetics industry. The Estee Lauder Companies Inc. (Estee Lauder or "the company") is a globally recognized manufacturer and marketer of makeup, skin care, fragrances and hair care products. The company operates in the Americas, Europe, the Middle East and Africa, and Asia Pacific. It is headquartered in New York City, New York and employed about 32,300 people as of June 30, 2011. The company recorded revenues of $8,810 million in the financial year ended June 2011 (FY2011), an increase of 13% over FY2010. The operating profit of Estee Lauder was $1,089.4 million in FY2011, an increase of 37.9% over FY2010. The net profit was $700.8 million in FY2011, an increase of 46.5% over FY2010.
In the early years of Estee Lauders‟ entrepreneurship, she faces a rejection from Madison Avenue to accept and carry her product. But that does not stop her from continuing selling her products directly to customers where she targets high-class customers exclusively through boutiques and department stores and one of the first department store to sell her products was with Saks Fifth Avenue in New York. Until today, Estee Lauder Companies has 26 brands, selling over to 150 countries and employs over 22,000 people worldwide. By the year 2004, Estee Lauder Companies lost a very important person and that is Mrs. Estee Lauder herself due to cardiac arrest. Although it was a great loss for the company, Mrs. Estee Lauder witnessed her empire grow from a small hometown operation into a worldwide corporation. She was proud that her company went public in 1995 and now, it is led by her children and grandchildren.
As of 2010 Estee Lauder sells its products in department stores across the world and has a chain of free standing retail outlets. On July 1, 2010, the company acquired Smash box Beauty Cosmetics Inc., a brand created in Smash box Studios in Culver City, California by brothers Dean and Davis Factor (as in
1. Case Abstract
This case study is about the cosmetics industry. The Estee Lauder Companies Inc. (Estee Lauder or "the company") is a globally recognized manufacturer and marketer of makeup, skin care, fragrances and hair care products. The company operates in the Americas, Europe, the Middle East and Africa, and Asia Pacific. It is headquartered in New York City, New York and employed about 32,300 people as of June 30, 2011. The company recorded revenues of $8,810 million in the financial year ended June 2011 (FY2011), an increase of 13% over FY2010. The operating profit of Estee Lauder was $1,089.4 million in FY2011, an increase of 37.9% over FY2010. The net profit was $700.8 million in FY2011, an increase of 46.5% over FY2010.
In the early years of Estee Lauders‟ entrepreneurship, she faces a rejection from Madison Avenue to accept and carry her product. But that does not stop her from continuing selling her products directly to customers where she targets high-class customers exclusively through boutiques and department stores and one of the first department store to sell her products was with Saks Fifth Avenue in New York. Until today, Estee Lauder Companies has 26 brands, selling over to 150 countries and employs over 22,000 people worldwide. By the year 2004, Estee Lauder Companies lost a very important person and that is Mrs. Estee Lauder herself due to cardiac arrest. Although it was a great loss for the company, Mrs. Estee Lauder witnessed her empire grow from a small hometown operation into a worldwide corporation. She was proud that her company went public in 1995 and now, it is led by her children and grandchildren.
As of 2010 Estee Lauder sells its products in department stores across the world and has a chain of free standing retail outlets. On July 1, 2010, the company acquired Smash box Beauty Cosmetics Inc., a brand created in Smash box Studios in Culver City, California by brothers Dean and Davis Factor (as in