Culture :
Marketing stratergies :
Marketing strategy is a long-term, forward-looking approach to
planning with the fundamental goal of achieving a sustainable
competitive advantage.
Single greatest expense for the company.
Marketing departments part of Brand Business Unit.
Regional marketing groups in USA.
Domestic Marketing teams report into Brand Business
Unit.
Regional Marketing groups service subsidiaries.
All Global Marketing teams report into Brand Business
Unit.
In house creative teams report into Brand leadership
was the first major prestige cosmetics firm to offer shopping via
the internet. Department store is the best venue for the high
services and the brands since $7.6 Billion in beauty sales were
generated in U.S. Department stores in 2006, representing 18
Price :
EL has projected itself as a super-premium brand with high-
quality products which are in great demand in the market. A
woman will never hesitate to spend a few extra bucks if she
thinks will prove beneficial and provide good results.
EL has adopted a premium pricing policy for its products
because it recognises that it is offering value-added products
which will get dividends in terms of great revenues. It brings
down the high prices to a reasonable level and helps in retaining
customer loyalty. EL positions itself to be a brand that cherishes
the women’s uniqueness and celebrate women beauty. Thus the
pricing is premium and its products are priced higher than most
of its competitors. The pricing strategy in the marketing mix of
EL is for targeting the affluent class of women. The brand is
thus perceived to be a luxury brand. Estee Lauder is bought by
the classes and not the masses. The customers who are less
sensitive to prices and are affluent buy the products of this
brand. There is a sales mix that is created by pricing some of its
products higher than the rest
Production:
EL’s overall strategy also includes heavily investing in Research
Social Stratergy :
Place:
To position itself as luxury brand, EL has limited distribution
system. It sells its products on up-market departmental stores,
and shopping malls. Due to its distribution system, it has limited
customers targeted. The product portfolio is also not very long
due to its choice to remain a premium brand. Competitors of the
brand have wide range of products and distribution channels
spread across many places. Depending upon profitability and
scope for profits, Estee Lauder has selectively expanded its
distribution of some products.
Promotion stratergies :
EL has also launched promotional campaigns like Gift-for-
purchase and purchase-for-purchase to retain its loyal customers
as well as to gain new customers. In the Gift-for-purchase is a
campaign wherein the customer is offered gifts for every
purchase he makes. The Purchase for purchase is used to attract
new customers who were not buying their products. The
attractive in-store displays also are used to grab the attention of
the customers. This covers Estee Lauder marketing mix Estée
Lauder's Gift-with-Purchase and Purchase-with-Purchase
technique works wonderfully by rewarding loyal customers for
purchasing EL products and by attracting new customers who
otherwise might not buy EL products. Promotional activities and
in-store displays are designed to attract new customers. The
company has offered 15% off first orders from new customers
on the EL online store. Some of the ways that The Estée
Lauder Companies’ brands encourage consumers to contribute
to the conversation include asking questions around specific
pain points, engaging in dialogue around cultural moments
like Coachella or International Women’s Day, or posing a
challenge, such as “create your best Halloween look and share
it with us.”
Celebrity :
The EL brand has had sometimes iconic spokesmodels,
sometimes referred to simply as 'faces'. Past 'faces' for Estée
Lauder include Karen Graham, Bruce Boxleitner, Shaun
Casey, Willow Bay, Paulina Porizkova, Elizabeth
Hurley, Carolyn Murphy, supermodel Liya Kebede was the first
African American 'face' of Estee Lauder, Anja Rubik, and
actress Gwyneth Paltrow.
As of 2008 the main spokesmodel for Estée Lauder was
supermodel Hilary Rhoda.
In 2010, the company added three more faces to the roster,
Chinese model Liu Wen, Puerto Rican model Joan Smalls, and
French model Constance Jablonski.[14]
In 2015, Estée Lauder signed model and social media
sensation Kendall Jenner to introduce a new generation of
beauty enthusiasts to the brand.
In 2017, the company announced Violette Serrat as their Global
Beauty Director.
Advertising :
Magazines : Elle , Jessica , Jessica Code
Promotion codes : Times Square , SOGO , APM
Internet : Webpage , Facebook, Instagram
Public realtions :
SEGMENTATION :
Geogrrphic : EL is capable of producing a brand in China,
India and Brazil in line with the Geographic requirement of
Market Segmentation
Demograpgic : In terms of Demographic requirement to
support Market Segmentation it should cater for the aging
population in this region.
Target Market :
Positioning :
Quality
Sophistication
Relaible
Established
Mature
Varity
Beautiful
Consistnt
Supply chain :
The Estée Lauder Companies corporate structure places all
supply chain activities outside of the brand business units, and
therefore all Supply Chain operations are corporate functions.
Multiple production facilities are positioned strategically
around the globe and allow for final product assembly to
occur on the same continent as the target market.
Major production operations for the company are in Long
Island, NY, Pennsylvania, Canada, Belgium and Japan.
The largest cost for products is packaging, and the package
development division of the company works with a global
network of suppliers, many of whom have operations in the
New York/New Jersey region.
Global Package Development is a corporate division
dedicated to the cost effective and quality production of
packaging for all 28 brands.
The global Supply Chain faces many challenges from a
plethora of regulations on product and packaging that vary
significantly by country
Charity :
Breats cancer awarness campaign : Every 19 seconds,
somewhere in the world, a woman is diagnosed with breast
cancer. For those facing a breast cancer diagnosis, time takes
on a whole new meaning. In life, time is a universal constant. It
is finite, precious and can’t be bought. We all wish we had more
of it. It’s time to take action; time to increase education. It’s time
to develop treatments and new therapies. It’s time to fund the
world’s leading research to bring us closer to a cure. It’s time to
unlock more clues about causes and prevention. It’s time for
patients and survivors to live better, healthier lives and there’s
no time like the present.
Aveda earth fund : Every April, the Aveda network (Aveda
Salons/Spas, dedicated beauty industry professionals, Aveda
Institutes, Aveda Experience Centers, Aveda corporate
employees and Aveda guests) celebrates Earth Day throughout
the entire month to raise funds to protect people, animals and the
environment.
Since the campaign began in 1999, the Aveda network has
raised more than $56 million for various non-profit
organizations focused on environmental issues including saving
ancient forests, combatting climate change and protecting
endangered species.
Slogans :
“Never underestimate any woman’s desire for beauty.”
“So delicate. So Beautiful.”
“If you don’t sell, it’s not the product that’s wrong, it’s you.”
“Our life isn’t how much we can take out, but how much we
money.”
Controversies :
SOPA
Estée Lauder Companies appeared on lists of major companies
supporting SOPA, the controversial, but unsuccessful,
Congressional anti-piracy bill that was considered overreaching
by critics
Child labor
In 2001, it was reported that children were discovered working
in a factory in Cambridge, New York making products for
Origins, one of Estee Lauder's natural products brands. The
contracted company was Common Sense Natural Soap &
Bodycare, owned by a group led by cult leader Yoneq Gene
Spriggs. Estee Lauder says it immediately moved to terminate
the contract with the manufacturer it had been in business with
for 5 years, claiming it was totally unaware prior to the initial
inspection.[
Animal testing
The Estée Lauder Companies performs non-animal and human
volunteer testing to assess product safety and efficacy. The Estée
Lauder Companies does perform animal testingwhere required
by law. The Chinese government requires testing on animals for
many cosmetic products. This causes controversy for smaller
brands that are "cruelty free" but were bought out by Estée
Lauder. Estée Lauder becomes the parent company of the
smaller brand and profits through the smaller brand.
Boycott and anti-boycott
Since at least February 2001, Estée Lauder and its brands have
been the target of a boycott campaign led by pro-Palestine
activists who have targeted the corporation because of the pro-
Israel activities of Ronald Lauder. In June 2003, the San
Francisco-based Queers Undermining Israeli Terrorism (QUIT)
took up the boycott with their "Estée Slaughter" campaign. The
boycott has generated an anti-boycott campaign by supporters of
Israel
Brand portfolio :