Estee Lauder Strengths And Weaknesses

The R & D facilities allowed them to continuously come up with new products in the market. In my opinion they are flooding the markets with many new products, in a way they are confusing an average golf player with too many different types of golf club.

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

Their extensive research in market trends enables them to keep a step ahead of its competitors by constantly expanding to meet consumer needs.

She would brush her mother’s long hair and also apply creams to her face (biography.com). As the years passed, her passion and love for beauty continued to grow which led her to open up her own beauty business (entrepreneur.com). When Lauder first started her beauty business, she only sold creams that she manufactured at home. After Lauder entered High School, her chemist uncle moved in with Lauder and her family. Her uncle was a chemist who specialized in manufacturing skin-care products. He taught Lauder all of the skills that he possessed so that she could start up her beauty business. “Jars of hope” were the first products that Lauder put out on the market (entrepreneur.com). Lauder was almost an expert at marketing and advertising her products. She gave free demonstrations and makeovers to people in salons, hotels, the subway, and even the streets. Lauder also visited customer’s homes and gave their friends makeovers which helped her sell more creams. She also introduced what is known as the “free gift with purchase” method which Estee Lauder Inc. has continued to go by. The method has also been adapted by many other companies worldwide (entrepreneur.com). This method was one of the reasons why Estee Lauder Inc. grew into what it is today since it brought her business more popularity among

These women were available to assist women with improving themselves both externally with the cosmetics and externally with being more confident in their appearance. The women were pioneers in the cosmetic industry with products they believed in which made them millionaires. Their products continue to be distributed and sold in some of the finer retail establishments, such as Saks Fifth Avenue, Lord & Taylor and Neiman Marcus. Two other

Our total Research and Development spending for 2015 equaled $3,259, which was a slight increase from $3,248 in 2014 with a significant increase from $2,861 in 2013 and $1,350 in 2012. Andrew’s created the new Aldo product this year; and we continue to steadily revise existing products in keeping with our strategy of providing customers with sensors using their unique specifications.

Sephora expanded their market with cosmetic products under LNMH’s ownership and opened its first U.S store in New York City in 1998. But as they faced difficulty supplying

Better Marketplace understanding – Diversity is vital for L’oreal as it helps them understand consumer needs across the world and innovate products accordingly. They therefore have research centers in 5 continents and have developed a unique portfolio of brands, each one with a different cultural origin to satisfy the differences in the sensitivities of people around the world.

Sephora one of the largest cosmetic retailer covering large portion of market share in the united states of America and Canada. Its known for its innovative ideas like vibrant stores that encouraged their customers to try new products and experiment them. But then as world is advancing into digital media marketing. Julie Bornstein, senior VP is getting ready to step into this new era of marketing. But few problems have to be addressed before they make their move.

L’Oreal is the top beauty company in the world with 15.5 billion in sales in 2004. (Gale Group, 2007)

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

Global interconnections, the process where continents, countries, states and cities interact through a diverse amount of ways. They occur every day through many things that we don’t realise and one of them is Estee Lauder. Estee lauder is a multinational corporation that owns a total of 29 brands, that produces a range of assorted products like Skincare, Makeup, Hair and Fragrances (Estee Lauder Companies, 2017). It is also said by Estee Lauder Companies (2017) that their headquarters are found in New York city and as seen in figure 1.1, where it also shows where their offices are, where their manufacturing and distribution is and where their R&D (Research and development) is found, as well as where the operated companied locations.

“The Estée Lauder brand has recorded a whopping 40 percent growth in China in the fourth quarter of the 2017 fiscal year,” which was accomplished due to their ability to identify foreign consumer needs and consequently fulfilling them.[28] In order to fulfill foreign consumer needs, they delved into research and development to innovate appealing products for consumers. Additionally, Estée Lauder hired influential celebrities like Yang Mi to increase their relevance in China. Estée Lauder used this marketing technique to leverage “local celebrities [...] who have huge fan bases and influence among this demographic, to be its brand ambassadors.”[28] Yang Mi’s endorsement introduced younger consumers (who are also her followers) to Estée Lauder’s products. In addition to marketing, Estée Lauder featured its products through “its comprehensive online sales channels, including Tmall

Avon, started its journey in the early 1886 is now the oldest and the largest marketers and manufactures of the beauty products. The advertisements from “Ding dong, Avon Calling” to “Hello Tomorrow” and from “You never looked so good” to the latest one “The Company For Women”, always helped Avon to improve its image and enhance the marketing strategies to serve the purpose. One of the amazing facts about Avon includes that it’s headquarter is situated in USA but major portion of its sales comes from outside North America. Avon has captured a huge market all over the world and its distributing the beauty solutions to almost all parts of the world. With Avon being a part of 112 countries, the company has

L’Oreal is the largest cosmetic manufacturer in the world since 1992 and contributes sales to more than 100 countries. L’Oreal invested heavily in research and development with the faith: innovation was the critical success factor. L’Oreal was at a stage of making critical decision to introduce Synergie skin care line and Belle Couleur permanent hair colorants which were successfully marketed in France, to Nederland market. These two products were under the family brand name, Laboratories Garnie, the largest provision of L’Oreal. Their introductions to the market were under pressure as Garnie was not very well known in Nederland.