Estee Lauder Case Analysis by Fred David 12th Edition

A brand is what can either attract people to you or make people avoid you; people would identify you by the brand you portray. One can communicate their brand through actions and words. “It is essential to understand that wherever we are, in whatever we do, we are all building our brand”.

Her and her husband were the company at this time , only giving out a handful of products . In need of a facility to create these products the Lauders converted a Manhattan restaraunt into a factory. She would sell during the day and then cook up all her creams and oils at night. Estee landed her first department store order for her cosmetics. Saks Fifth Avenue bought $800 worth of cosmetics from Estee, which sold out in two days .Another good strategy Estee used was when someone bought one of her products you would get a free gift along with the purchase. The couple opened their first store in New York in 1944. Estees dedication to get her cosmetics in department stored payed off in the 1950s. Her line became a regular feature in stores such as :I. Magnin, Marshall Feild's, Nieman-Marcus and Bonwit Teller. The Lauders invested their entire $50,000 advertising budget in samples to be offered through direct mail, charity giveaways and as gifts with purchases. (Lauder's "free gift with purchase" technique would become a company trademark and later, a standard industry practice.) The result was thousands of new customers. Lauder continued to broaden her product line, introducing (among other things) male toiletries under the Aramis brand name and the first line of fashion-oriented, allergy-tested cosmetics, Clinique. In addition, Lauder set out to conquer the rest of the world, convincing Harrod's of London and Paris' Galleries Lafayette to carry her products. By the mid-1970s, Lauder's products were on the market in more than 70 countries

Her passion, perseverance, and resourcefulness gained her a spot among the great cosmetic retailers. Stated in Estee’s Biography, by Linda Peterson, “ When she was selling at beauty salons, she never lunched, for fear of missing a customer. When the family went on summer vacation, she'd make up the women relaxing poolside at resort hotels. In winter, she'd visit women's homes and give them beauty lessons while they played bridge.”. Estee’s drive and salesmanship formed at a young age and continued to grow as Estee Lauder did. In one attempt to sell her products to the first big retailer she was told no. Then after Estee accidentally dropped a bottle of her Youth Dew perfume on the floor, the smell spread throughout the store and customers were asking where to buy the product. The manager then withdrew his previous statement and ordered all of her stock. The store sold out in the next two days. Estee later created the “gift with purchase” sales technique that is now a staple for many cosmetic companies. With purchase of a certain amount or more, Estee would give away shavings of a lipstick or blush in wax paper. This was ingenious to Estee Lauder becauses often times the woman would come back and purchase them

Born in an era where women aren’t so rampant on running their own business, Elizabeth Arden rose successfully that she eventually became not only one of the most triumphant business woman but an icon as well. The favorable feat of her company that rooted from about 100 years ago has continued to prosper making the name ‘Elizabeth Arden’ not only some person’s name but a trusted and believed brand in the field of women’s necessity line.

Most people think of Estee Lauder as just a brand, but she is also a successful businesswoman. She went from dirt poor to the richest self made women in the world. (“Estee Lauder” bio) Estee Lauder was important to the growth of the cosmetics realm and has revolutionized and shaped the cosmetics industry not only with her progression from a small town girl to a cosmetic titan, but also with her hopes to give the gift of beauty, simplicity, and cost efficiency simultaneously. Josephine Esther Mentzer was born July 1, 1908 in Queens, New York to two european immigrants, Rose Schotz Rosenthal Mentzer and Max Mentzer.(Israel 8, “Estee Lauder” bio)

According to the American Marketing Association (AMA), a brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”. However, as Keller highlights, a brand is also “something that has actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace”. Therefore, a brand is an identity created to differentiate itself from the competitors and to be remembered in consumer’s mind.

Estée Lauder has an extremely large presence as the global leader in prestige beauty with products being sold in more than 150 countries. This global success is attributed to their focus on cultural relevance, making sure that their products, signage, marketing etc. appeals to consumers in each local market.

Founder: Estee Lauder, the founder of the $8 billion company that bears her name, started her business with four skin care products and a simple premise: that every woman can be beautiful.

Estée Lauder Companies, Inc. (ELC) is one of the world’s leading manufacturers and marketers of quality skin care, makeup,

In addition, your brand is all about the components that creates a brand that includes logo, packaging, colours,

The way Estée ran her company demonstrates how important family meant to her. In 1995, Estée stepped down and entrusted the family business to her sons and grandchildren. Afterwards, Estée’s two sons undertook the opportunity to be CEO of the company before giving the title to Fabrizio Freda in June of 2009. To this day, all family members of the second and third generation play an important role in the parent company and Estée Lauder the brand.[10] Employees testify that the culture of the business is very family oriented because the Lauder family remains immensely involved in company activities. As a result, employees are inspired to care for each other and the communities they serve. [11]

The Estee Lauder Companies Inc. engages in the manufacture, marketing, and sale of skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, creams, lotions, cleansers, sun screens, and self-tanning products; and makeup products,

Within this options we will examine different methods in going about this. But the basic idea will be one image on all package. The fallowing will also be discussed in a manner that reflects not only the idea of creating a global brand but the individual problems in some markets such as dull packaging. The overall goal would be to create a brand image and place that on all the packaging.

Branding often consists of a brand name, logo and slogan. Businesses would try their best in order to ensure the brand is recognisable in the market through advertisements. Businesses will trade market the brand so competitors cannot copy the same brand. Branding is a powerful tool when trying to sell products as it can help achieve marketing objectives such as becoming market leaders and it can raise customer’s awareness as well. In some instances the branding means, only certain colours and shapes is used and in other instances, it is more flexible. It takes time, money and effort to build a brand and to keep its position at the top in the market.

When people say brand, the brands that come to mind straight away would be Coca-Cola, Nike or even Versace. The dictionary defines a brand as ‘a kind or variety of something distinguished by some distinctive characteristic’. However, in marketing terms it is defined as ‘a name, term, sign, symbol or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers of a product or service’ (Kotler, Brown, Adam, Burton, Armstrong, 2007). A brand can be defined in many ways, and there are several characteristics that make up a strong brand. Furthermore, strong brands have strong brand loyalty and the importance a strong brand is shown when brands expand their products. Moreover, brand strategy is