Positic Analysis : Estee Lauder

The definition of true beauty continues to evolve as generations pass and new ones emerge. Ulta Beauty, a popular cosmetic store, sells products with the aim to make women feel confident in their skin. Their use of advertisements helps spread the word about new, improved product lines and reach out to potential buyers. Selling makeup is the obvious goal of a cosmetic store, but the kind of consumers they attract and how varies between different franchises. When a company displays their products in one shot instead of in a commercial, the task of conveying the message becomes harder. Ulta Beauty persuades women to purchase their products by pointing out buyers’ insecurities while still appearing to promote empowering feminist values.

LUSH – a global pioneer brand name in cosmetic industry. LUSH which was defined as fresh and green is for its famous natural and handmade cosmetics, which will give customers a unique experience. In introduction we will discuss about the evaluation of LUSH cosmetics, their company profile and their impact on sustainability.

(cost of goods manufactured in 2008/ sales value for units produced in 2008) * ending inventory 2008

On average, a woman starts wearing perfume at the age of 12. We can identify two big age categories of women:

Today’s quick-moving world of technology has media texts such as advertisements to make sure that people understand with just a glance. Having adverts on magazines, social media and billboards allow them to use tools such as semiology, genre and narrative because it makes their messages clear instantly. These signs allow us to carry meaning through advertisements, connotations and the signification process. These tools let brands, mainly celebrities, and the option to produce and create a myth of the product such as “Be daring. Be an inspiration” to sell it to the world. We are in a time where advertisers use ‘simplicity’ in their adverts; there are no more paragraphs. It is mainly down to the person and the few words shown in that advert.

MISSHA has created a history in the cosmetic industry. Through MISSHA’s emergence and the remarkable success in early 2000’s, the low-priced cosmetics niche market created by them became bigger enough to attract many other companies.

The huge success of L'Oreal Plenitude in French as the premium skin product with "class to mass" strategy was the primary reason for L'Oreal to expand the product to US market. The company started to enter the US market skin care in 1989 through mass channel by introducing the entire product line (14 SKU's) that had been developed in France, instead of launching the product one by one. Before Plenitude entered the US market, L'Oreal had had good reputation for its cosmetic and hair product, so the name was critical to sell the products. The company used the same formula "star" system in advertising as in France by putting bulk of dollars on the newest, most technologically advanced product. Even though Plenitude had a

Skin treatment products are often sold next to the cosmetics, but in reality are not cosmetics themselves. Skin treatment products are created with the purpose to improve the natural condition of the skin rather than purely the aesthetic. Cleansers, astringents, toners, acne medications, sunscreen, and lotion all help the skin stay healthy and free from blemishes. In the past, it used to be that consumers

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.

Hopkins L. (June, 2009). IMA Educational Case Study Journal. Luxor Cosmetics. (Vol. 2, No. 2, Art. 1). IMA.

Competition – There increase in price based competition from local brands which was driving down revenues, while competitors such as Revlon, had already promoted movies, compounded with stiff competition from Asian brands in the Asian market.

Makeup Art Cosmetics (MAC) was founded in 1985 in Toronto by Frank Toskan and the late Frank Angelo. The business plan concentrated on targeting young, fashionable females by creating cosmetic products which contain unique textures and colours. Using this strategy, the company targeted the ¡°hip¡± celebrities and other cosmetic influencers to gain recognition and market share in the younger consumer market. Since its inception, the company has grown to become a multi-national organization operating in over 180 locations worldwide. In the late 1990¡¯s, MAC was purchased by Estee Lauder, which has led to the alteration of the company¡¯s governance; the culture of the firm changed from that of an entrepreneurial-style with limited rules into

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,

L'Oreal is a cosmetic company, which makes some of the world's biggest beauty products. L'Oreal's success story begins in 1907. It has been the market leader in the cosmetics and toiletries market since 2001 (Euromonitor 2005). Their products are sold in about one hundred and thirty countries worldwide. L'Oreal is divided into four categories - consumer products, professional products, luxury products, active cosmetics. They mainly focus on skin care, make-up, hair care and fragrance. L'Oreal includes some important brands such as Lancôme Paris, Garnier, Mabelline, Softsheen Carson, Matrix, and Biotherm. L'Oreal invests heavily into its research and development which gives them competitive advantage over its competitors.

We have chosen to build our strategy upon a focused strategy, since it allows a much more narrow approach towards the market segment. In this case we have chosen focused differentiation.