...Estee Lauder CASE STUDY ANALYSIS STRATEGIC MANAGEMENT (MGT 658) Prepared by: ACKNOWLEDGMENT Alhamdulillah, first of all we would like to thank ALLAH S.W.T as finally we were able to finish our assignments that have been given by lecturer to us. This task had been done with all afford by group members even though a little bit problem were happened among us while doing this assignment. Luckily all the problems can be settled down and we were able to adapt properly and wisely. Besides that, big thank we address to our supervisor or our lovely lecturer for MGT 657/MGT 658 Mrs. Shaherah Binti Abdul Malik because without his guide our project cannot be done properly like this. He always give us supports and guide to us how to do our assignment in purpose to produce a good outcome from research that been studied. We already analysis and discussing about the Estee Lauder Company. Last but not least, we would like to dedicate a thousand of thank you to anyone that participates directly or indirectly in our assignment to complete this report. Without their commitment and support, this report would not complete successfully. Content of Case Study Analysis: 1. Case Summary/Background Estée Lauder Company was found by Estée Lauder herself alongside with her husband, Joseph Lauder in the year 1946 which manufactures and markets four cosmetic product lines namely skin care, make up, fragrances and as well as hair care products. These products are sold over 150 countries...
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...1.0 Introduction Many companies at different levels strive to achieve a positive attitude towards their organizations, companies such as Coca Cola, Estee Lauder Companies Incorporation (Estee Lauder) and many others. Estee Lauder is a globally recognized manufacturer and marketer of prestige skin care, makeup, and fragrance and hair care products. Estee Lauder founded the Estee Lauder Company in 1946 and it’s headquarter is located in Midtown, New York. Estee Lauder comprises of popular brands such as Estee Lauder, Clinique, MAC Cosmetics and many others. According to Estee Lauder (2011), the purpose of Advance Night Repair (ANR), is it frees skin from the visible accumulation of excessive damage and helps dramatically boost skin's natural ability to repair the visible effects of this accumulation and restoring skin of past damage. 1.1 Consumer Behavior Models ‘Consumer behavior reflects the totality of consumers’ decisions with respect to the acquisition, consumption, and disposition of goods, services, activities, experiences, people and idea by (human) decision-making units (overtime),’ (Hoyer and Macinnis, 2008, p.3). Consumer behavior toward a brand influence their purchase which can be shown through the Hierarchy of Effects Models (see Figure 1.1) propose that consumers become aware of, learn about a brand, develop an attitude towards it, a desire to purchase it which then leads to trial and adoption or rejection. Title: Hierarchy of Effects Models Purchase ...
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...Estée Lauder – 2008 Forest David: Francis Marion University A. Case Abstract Estée Lauder (www.elcompanies.com) is a comprehensive business policy and strategic management case that includes the company’s fiscal year-end June 2007 financial statements, competitor information and more. The case time setting is the year 2008. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in New York City, Estée Lauder’s common stock is publicly traded on the New York Stock Exchange under the ticker symbol EL. Estée Lauder produces a diverse line of shampoo, perfumes, lip gloss and other skin care products. A small sampling of the brand names marketed by Estée Lauder include: Estée Lauder, Clinique, American Beauty, and Flirt. The products are sold through various distribution channels, including specialty stores, department stores, pharmacies, the and Web. Estée Lauder operates in the Americas, Europe, Middle East, Asia, and Africa. The company has over 28,000 employees and is led by CEO William Lauder whose base pay was over $3.5M in 2007. The firm’s two major competitors are conglomerate giant Procter & Gamble and L’Oreal. B. Vision Statement (proposed) Estée Lauder is committed to its name being synonymous with the best quality skin care products in the world. C. Mission Statement (actual) Bringing the...
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...Malik Yomen Estee Lauder Case Study Professor Hackenberg October 17, 2010 Estee Lauder Company was founded by Estee Lauder and her husband Joseph Lauder in 1946. Estee Lauder started the company by selling her first beauty products in beauty salons and hotels and established their first department store account with Saks Fifth Avenue in New York in 1948. Estee Lauder is now one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. Estee Lauder is one of the most well known manufacturers and marketers of cosmetic product line companies in the United States and is guided by the original values of quality, delivering outstanding customer service, enhancement of reputation through image, style, prestige, and pursuance of profit, but never at the expense of quality, service, or reputation that Estee Lauder instilled at the beginning. The business strategy and mission of Estee Lauder, in their own words is: “Bringing the best to everyone we touch” through a great business that is committed to uncompromised ethics and integrity. The company is always striving to give its stakeholders the maximum value for their money by continuous improvement and growth in all sectors of the company. The company is primarily managed by the Lauder family members as both the CEO and Chairman of the board are Lauders. It is unclear of the organizational structure of the company, the executive officers...
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...Q6 What is the cost of capital for the restaurant division of Marriott?The Estée Lauder Companies, Inc. is a prestigious cosmetics company in the cosmetics industries which was found by Joseph Lauder and his wife Estée Laude. The Estée Lauder Companies, Inc. was started as a family business and develop to a public company. The top level management used to work by the family member of Lauder only; however, the top level management has changed to work by not related to family member of Lauder that is Fanrizio Freda. I believed the differences between running a family-owned business and a publicly-traded company with diverse, fragmented ownership is the development to the business. The pros of running a family business is the family business is your life which mean you are more conservative, because you don’t want to destroy your family business. In addition, the family business is built on the trust which means the more stable. On the other hand, the cons of running a family business are conservative which mean you don’t want to take risk on your business. And at the same time, your business might not to grow stable since you don’t want to change the business. Conflict also is a big challenge to run a family business; the challenges can be identity the development for the business. For example the old generation might not agree what the younger generation ideas, and doesn’t have enough rooms for them to learn and develop. The pros of running a publicly-traded company...
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...1.0 INTRODUCTION 1.1 COMPANY’S BACKGROUND Estee Lauder Company was founded in 1946 by Estee Lauder and her husband Joseph Lauder. It is a manufacturer and marketer of four cosmetic product lines, which include skin care, makeup, fragrances and hair care products in the world. In U.S. prestige cosmetics category, Estee Lauder Companies has a market share of about 46 percent. In 1948, Estee Lauder established their first department store account with Saks Fifth Avenue in New York. During the next 15 years, the products were selectively distributed in other stores in the United States. By 1960, Estee Lauder was an international corporation selling their products in the famous Harrod’s Department Store in London. Within a few shorts, they opened outlets in Central America, Denmark, Hong Kong, Italy, Spain, Sweden, Belgium, New Zealand and Switzerland. The first Estee Lauder products sold were Super Rich All Purpose Crème, Crème Pack, Cleansing Oil, and Skin Lotion. Additional brands such as Aramis, a line of prestige fragrance and grooming products for men was launched in 1964, and Clinique, the first dermatologist-guided, allergy-tested, fragrance-free cosmetics brand was launched in 1968. Prescriptive, a color authority with an advanced collection of highly individualized products, was founded in 1979. Lab Series Skincare for Men, specializing in men’s treatment was debuted in 1987. Origins, a plant-based line of skin care, makeup, bath or body and sensory therapy product were...
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...another miles storm andFabriozio Freda, the President and COO), who earned two decades of experiences in global consumer products and luxury goods companies is now servicingthe Companies. Besides, the Companies also has a well topmanagement successor planning, Eg: William Lauder (CEO) had mapped outa succession plan that anticipates Fabrizio becoming CEO within two years of his hire, the plan is ensuring the Companies’ directions and strategies are constantly andconsistently on going. 10. Managed to create iconic products’ spokesman via famous and well knowncelebrities and models. Eg, Gwyneth Paltrow and Hihary Rhoda arerepresenting the Companies’ Tom Ford Beauty’s products, with success toboot up the sales of the respective brand’s products. 11. Pioneer in creating new innovation products coupled with creative marketingand packaging technique. Although has been classified as the global cosmeticgiant, the Companies consistently design and manufacture new innovative products, eg:its recent kick off of the industry first breakthrough technologyrevolutionized night-time facial skin repair, received warm response from thepublic, 250,000 10-day samples of the products has been distributed at all Estée Lauder department and specialty store nationwide Weakness 5. The Companies’ total liabilities are on increase trend, from 2007’s total...
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...Estée Lauder Inc. (EL) EL was founded 1946 and is in the personal care products manufacturing industry and produces makeup, skin care, fragrances, and hair care products (About Estée Lauder) (The Estee Lauder Companies Inc., 2011). EL includes brands like Estee Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, MAC, Bobbi Brown, La Mer, Aveda, Jo Malone, Bumble and bumble, Darphin, American Beauty, Flirt!, Good Skin and Grassroots. EL is also a licensee for well-known brands like Tommy Hilfiger, Donna Karan, Michael Kors, Sean John and Coach. It grew to become one of the largest companies in its industry. It has 31,200 employees and its headquarters are in New York City, NY. EL” recorded revenues of $7,795.8 million during the financial year ended June 2010(FY 2010), an increase of 6.4% over FY2009.The operating profit of the company was $789.9 million in FY2010, an increase of 88.8% over FY2009.The net profit was $478.3 million in FY2010, compared to a net profit of $218.4 million in FY2009.” Core competency: EL’s core competency is in research and development (R&D) of high-end personal care products. It has increased its investment in R&D in the last few years. “With 440 employees in its principal R&D facilities (Melville, New York; Oevel, Belgium;Tokyo, Japan; Markham, Ontario; Blaine, Minnesota; and Shanghai, China), the company is focused on creating products that cater to consumers in specific markets and regions, based on their cultural preferences...
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...Executive Summary The Estee Lauder Company was founded by 1946 by Mrs Estee Lauder and her husband, Joseph Lauder. The Estee Lauder Company is the company that sell numerous beauty and skin care products in the cosmetics marketplace. Estee Lauder acquired many brand licensing such as Michael Kors, Tommy Hilfiger, Donna Karan, Bobbi Brown and La Mer. The company’s vision is: “Bringing the best to everyone we touch and being the best in everything we do. By ‘the best’ we mean the best products, the best people and the best ideas.” Besides, the company also committed to uncompromised ethics and integrity. The highest standard of ethics is a condition of employment for al Estee Lauder’s employees. The company is committed to the Code of Conduct which require the employees to conduct themselves at all times within the letter and spirit of the code. Since 2011, Estee Lauder has 28 brands, sells product in over 150 countries and territories and employs over 31,200 people worldwide. The company is managed using the strategic business unit-type structure where three of the top 12 executives are Mrs Estee Lauder family members. The company has a manufacturing facilities, R&D operation and business offices and for each group of vice presidents, there are four division such as skin care, makeup, fragrance and hair care. The company sell its products through upscale department stores, specialty retailers, upscale perfumeries and pharmacies, professional hair free shops in airports and...
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...Case Report The product of plenitude line was still being sold only in France where it took over unit share leadership in moisturizers despite its price premium. For 1987, its dollar share of the French mass moisturizer market was leading 19.6% VS Henkel’s Diadermine 13.0% and Nivea’s 8.8%.( The data comes from the 4th page of case.) Comparing with the products in the market of France , the products of Plenitude were introduced covering 3 categories which are basic moisturizers, treatment moisturizers and cleansers. In the moisturizers of market, the share of market improved from 11.7% in 1991 to 14% in 1995 and quickly ranked to 2nd in 1996 in U.S . According to the appendix 1, treatment moisturizers and cleansers is 33.97434, 80.30488125 and 33.4940625 respectively, offering a evidence about the improving of sales of Plenitude. Plenitude concentrates on resource, technology and supports on newest “Star Product” to pull the entire line. So the price has a 30% price premium over incumbents. In addition, its advertising strategy is distinctive. From the initial printed advertisement to sequential television advertisement, Plenitude always dominated advertising medium to expand its influence. In most people’s mind, L’OREAL Plenitude is a used by upper class and aged people who like to spend money on themselves. Oil of Olay and Pond’s has more users on Unconcerned and Price Conscious segment. It shows Plentitude didn’t going well for mass market like students, housewives...
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...Company Profile Founded in 1946, this technologically advanced, innovative company has gained a worldwide reputation for elegance, luxury and superior quality. Our products come with a promise to uphold the finest standards of excellence. Through extensive research and stringent product evaluation, we are pleased to bring you skincare, makeup and fragrance products that are both gentle and highly effective. 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. Principles: We are dedicated to working together with uncompromising ethics and integrity. We encourage our people to create, to innovate, to be entrepreneurs and to strive for the best, always. To ensure the long-term success of our Company, we integrate the “High-Touch” aspect of our business –our best quality– into all our day-to-day business activities. Our workplace culture fosters a unique spirit of teamwork, innovation, passion and a shared mission of "Bringing the Best to Everyone We Touch and Being the Best in Everything We Do." We clearly post the following commitments in our offices throughout the world for our employees to live and work by: • Provide customers with innovative cosmetic products of the highest quality. • Deliver outstanding service by treating each individual as we ourselves would like to be treated. • Create an environment that fosters personal...
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...Analysis of Estee Lauder Professor Ridilla Feb 16, 2014 Mariam Mujtaba TABLE OF CONTENTS A. Introduction ………………………………………………………….Pg 3 B. Financial Aspects…………………………………………………….Pg 4-5 C. Graphs and illustrations………………………………………………Pg 6 D. References……………………………………………………………...Pg 7 INTRODUCTION Estee Lauder Companies, a very renowned and admired company, recognized worldwide making a name in the states as well as on the international level. Estee Lauder found in New York City in 1946. Estee lauder manufactures prestige skincare, makeup, fragrance, and hair care products. Estee Lauder began its journey with four products now branching out to numerous companies and over 100’s of products within those companies and under the Estee Lauder name. Estee Lauder products are sold in over 150 countries. For over 65 years Estee Lauder has focused on making the most innovative products for the woman, letting every woman know that she is beautiful. Estee Lauders mission to provide a personalized experience global to the 5 million consumers daily. There are 25 world- class brands under the Estee Lauder name. Estee Lauder has over 30,000 points of sale from upscale department stores, specialty retailers, to pharmacies. Estee Lauder was named #15 on the Forbes list of most innovative company and #100 worlds most valuable brand. CEO and President Fabrizio Freda explains their accomplishments for 2011 “We experienced many outstanding achievements during the past year. First...
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...in advertisements Advertising has become the most useful and effective tool for companies to promote their products. By definition, advertisement is a form of “promotion of ideas, goods, and services by an identified sponsor” (qtd in Wright 13). The ability to attract consumers is the crucial key to determine if the advertisement can successfully promote the product to consumers. Usually, we can say an advertisement is successful if the product is well-known by consumers, and attract consumers to be willing to pay money for it. Each company has its special technique to persuade consumers to purchase their products through web advertisement. Estee Lauder, a distinguished cosmetics company, attracts more and more consumers to buy their products because it has unique techniques in advertisements. In a particular ad for Estee Lauder, the marketers use, web design, color and rhetorical appeals in ad to successfully increase consumption of their new released product , Resilience Lift Collection, to mid-age women. One of the crucial keys the ad uses to attract consumers is the unique and reasonable web design which well explains the product. Instead of lengthy and gathered product information, the ad for Resilience Lift Collection divides it into small categories. The close-up facial feature of a captivating woman with the text “ Now, look as young as you feel. Our first, multi-faceted, 24-hour lift” on the side. The picture of the woman subconsciously inject the idea to consumers...
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...2008-2009 when growth was only 2.9% and 1%; just before the recession and during the recession. The global skin care market earned 99.6 billion dollars in 2012 and is expected to make 154 billion dollars by 2021. Skin Care in the United States Skin care has become a big trend in the United States as consumers look for anti-aging creamers to assist in skin health care. New product innovation drove skin care growth in 2013, with products like blur creams and face oils. Women responded positively to the new products and additionally men have become interested in skin care products and have helped in the promotion of sales. Competitor Landscape Estee Lauder Cosmetics Inc. lead the industry with a 13% value share in 2013 (Euromonitor, Jul.2014). The company operates in premium skin care under the names of Estee Lauder, Clinique,...
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...Margin Expansion in Recent Acquisitions Firstly, there will be a boost of earnings from Estee Lauder’s recent acquisitions announced between October to December 2014. Throughout this two-months period, Estee Lauder has announced and completed a total of three acquisitions – GLAMGLOW, a prestige skin care brand in December 2014, Le Labo, a high end fragrance in November 2014, and RODIN Olio Lusso, a luxury skin care brand in October 2014. The last acquisition for Estee Lauder was in May 2010, when it acquired Smashbox Beauty Cosmetics. Estee Lauder has revealed that it will be focusing primarily on mergers and acquisitions to increase its revenues. Estee Lauder aims to capture a bigger share of the ultra-prestige consumer market and also to enhance the acquired brands’ global presence and in turn strengthen its own portfolio of offerings. These brands that EL has been taking over are all luxury brands since the company is focusing more on targeting a high-end customer base. Furthermore, skincare is the most important segment in Estee lauder’s portfolio and skincare products contributed 43% of Estee Lauder’s net sales in FY 2014 (ended June 2014). As US consumers are expecting innovative products across newer skincare categories, the company’s acquisition of GLAMGLOW also suggests that Estee Lauder also understands the importance of innovative products. By possessing a strong R&D arm in the area of skincare, this might strengthen the recent acquisitions in RODIN...
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