ESTEE LAUDER INC. NEW PROMOTIONAL CAMPAIGN
Estee Lauder Inc.- New Promotion Campaign
The Estee Lauder Companies Inc. is considered as one of the leading manufacturers in the world of products including hair care, quality skin care, fragrance and make-up. The company is also considered as one of the world's leading marketers of these products. In this paper we have looked at their products with a totally new perspective and decided how their products would achieve higher brand shares if promoted today. The paper deals with a set of recommendations on proposed advertising for the leaders in Cosmetics -- Estee Lauder Inc. We have first reviewed the company and its products. Then we have looked at the different market segments it appeals to. Then we have chosen a few segments where we feel a change in strategy may help the products to achieve greater market shares.
The company was fist founded in New York City in 1946 by Estee Lauder, by whose name the company is known for and her husband Joseph Lauder. It was the effort of Mrs. Lauder, which brought the company to its pinnacle success. Estee Lauder started from the very bottom -- selling skin creams concocted by her uncle. The products were good, but similar products were available in the market. Estee succeeded because of her marketing strategy and she worked hard to achieve her success. Estee Lauder was a very much quality conscious, but her ability to compete in terms of a saleswoman was much more convincing. Her management skills are extraordinarily appreciative. Through her efforts, she first got counter space at Saks Fifth Avenue in 1948. She utilized the space to the hilt by her innovative personal selling. She was ambitious and had decided that she would reach the top. And her efforts have bore fruits. The products of the company are now sold under different and well-recognized brand names, which are Estee Lauder, La Mer, Prescriptives, Tommy Hilfiger, Aramis, Stila, Donna Karan, under well-recognized brand names, including Clinique, MAC, veda, Origins, Jo Malone, Bumble and bumble, Bobbi Brown essentials, and jane. (Gerson; Gerson, 2002)
These products are now sold in 120 countries all over the world, for $3.6 billion, which is a marvelous success. Thus the notion of Estee lauder of to think globally and to act globally is achieved. The region of Americas was able to show a performance of net sales worth 61%, and their operating income came to 56% during the fiscal year 2000. In the regions of Europe, Middle East and Africa, the net sales were 26% and the operation of income was 33%. Beauty Queen Estee Lauder applied classy sales methods to develop beauty into a big business. Whatever the lady knew about perfumes was correct, and the basis of her marketing strategy remains unchanged even today. She was also one of the few to give away samples so that the consumers could try her products, like them and buy them.
Today the company business controls 49% of the cosmetics market in the U.S. Estee's business is now worth $6 billion. This is a remarkable growth for a business that had only one employee. Estee Lauder answered all telephone calls and doubled up as the billing clerk or the shipping department as needed. She believed in hands on selling, and she visited every new counter opened, and kept visiting special stores till the end. The technique invented by her was to tie up the potential customer by offering her free something that the customer really cared for. She kept trying to attract the people who mattered. The organization developed as a result of her remarkable marketing strategies.
The headquarters of Estee Lauder companies are today in the 40th floor of the General Motors Office in Manhattan. The company has 20,000 employees worldwide. The products of Estee Lauder remain creative and are still essentially feminine but not the latest in fashion. She did not try to appeal to the fashionable women. Maybe, she knew that fashion was transient at best. She wanted her products to appeal to her clients for a long, long time. She made clear that the users of her product loved to be feminine, ultra feminine. Estee Lauder products gave women an opportunity to feel beautiful. The brands of the company from its latest brands to its oldest brands the company remains at the top. By inventing new and advanced technologies in manufacturing of its products, the company has been investing heavily in its marketing field to promote its products. The products are well-known -- Estee Lauder, Presciptives, Clinique, Origins, Aramis. They have even bought over new lines, which they thought could be their rivals one day -- M.A.C., Bobbi Brown Essentials, and Tommy Hilfinger. (www.time.com/time)(www.esteelauder.com), (www.elcompanies.com...
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