Problem El

Estee Lauder Companies Inc.

Table of Contents

Executive Summary 3

Business Mission 3

Company Objectives 3

Market Overview 4

Customer Experience 4

SWOT Analysis 5

Competitive Analysis 5

Segmentation and Targeting 7

Marketing Mix 7

Timeline and Implementation 9

Promotional Budget 10

Position

Estee Lauder Companies Inc. (ELC) is one of the pioneers of the cosmetic industry. They are one of the leading cosmetic companies to manufacture and market prestige skin care, make-up, fragrances and hair products in over 150 different countries. (“Estee Lauder Companies”) As of June 30, 2012 ELC has over 38,000 Full-time employees and about 12,000 of them are employed in North America. In 2012 the North American region accounted for 42% of the company’s net sales along with the European, Middle East and Africa making up 37% and the Asian market represented 21% of their net sales. All together ELC accumulated over $9,700 million in net sales. What sets ELC apart from their competitors like Proctor and Gamble or L’Oreal is that ELC is made up of 27 prestige brands that are distributed exclusively to department stores, specialty retailers and limited salons and spas. (Estee Lauder Companies, Inc. 2012)

Estee Lauder Companies Inc. History

Estee Lauder began this venture selling four skin care products in 1940. Within 6 years, Estee Lauder launched as an official company and by 1947, Saks Fifth Avenue was her first retailer to carry her newly launched line. (“The Biography Channel”)

Within the same year, Estee Lauder revolutionized the cosmetic industry and gave a small gift with purchase. This practice is still in used today to attract customers to buy more items. By 1960, Estee Lauder’s company went international and began selling her line in Harrods; England’s prestige department store. In 1965, the first international factory was built in Belgium and 2 years later, a R&D department was started. This started...