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Estee Lauder: Integrated Marketing Communications plan

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Executive Summary

The purpose of this situation analysis is to identify internal and external factors that will have an impact on Estee Lauder's integrated marketing communications program (IMC). A situation analysis is necessary to determine the position Estee Lauder is currently occupying, in terms of finances, promotional strategies, product range and brand image. A thorough analysis will help identify any opportunities and potential threats that the company may come across and the effect that these opportunities and threats will have on their new IMC program. Strengths and Weaknesses will also be identified and taken into account as the new IMC program is developed.

As part of the internal analysis Estee Lauder's past promotional mix …show more content…

Internal Analysis

Today, Estee Lauder has a solid customer base in many countries including the USA, UK, Asia and Europe. Estee Lauder's and Clinique's combined sales made up 40% of the total cosmetics market share, with Lancome (owned by competitor L'Oreal) holding the third largest market share, with 13% of the cosmetics market (Bittar, 2002, p.29). Over the past five years, Estee Lauder's sales have slowed, allowing for Clinique, Estee Lauder's sister brand to gain market share, replacing them as number one brand in department store sales (Bittar,2002,p.29). Currently Estee Lauder's primary objective is reposition themselves as the consumers first choice for cosmetics. In order to achieve this objective Estee Lauder need to analyse current marketing efforts and identify opportunities for further expansions that will increase and improve the reputable Estee Lauder brand.

Pricing Strategies

Estee Lauder's prices are at the higher end of the price scale within the cosmetics market. This is consistent with many of Estee Lauder's direct competitors namely Lancome and Dior along with other subsidiary brands including MAC and Stilla. Their prices are set 20-35% above the price points of Clinique products. Current RRP prices for various Estee Lauder products can be found in appendix 2.

Review of Firm's previous promotional programs

o Advertising - Print media is the current primary

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