ESTEE LAUDER COMPANIESAtif Nawaz

emil- aafinawaz@gmail.comMBA (3.5 Years)

INSTITUTE OF BUSINESS & MANAGEMENT SCIENCES,

Estee lauder Companies“bringing the best to everyone we touch”

About Estee Lauder EL based in New York city involve in manufacturing and

marketing of four type of product line:1. Skin care 2. Makeup3. Fragrances4. Hair care products It works in 130+ countries under the brand name of (estee

lauder, armis, clinique,lab series etc). Sales of EL is increase 7% in 2007 $7.037 billion. The sale is collected by 1. Skincare products 37%2. Makeup product 39%3. Fragrances 19%4. Hair care 5%

History of Estee LauderEstee lauder a young entrepreneur woman of

united state . She work with his uncle john shotzs who was a chemist . She interested in the products of cosmetics skin care etc. in 1946 she launch her first product and after the launch of her product she establish his own departmental store. Her name include in top 10 outstanding women of united states the further detail is in next slide.

Years History of Estee lauder

1946 She launch her first product and sale out in beauty saloons and hotels.

1948 She established her first department store with saks fifth avenue in New York.

1960 She globalized her company operation e.g. London Hong Kong etc.

1964 She launch the several brand e.g. armis prestige fragrance for men.

1967 She is one of the name of ten outstanding women in business in United States.

1968 She launch Clinique the first dermatologist and allergy tested brand.

1983 She introduce the product in soviet union.

1995 She introduce lar mer bobby brown and kiton.

1998 El selling a varity of products over internet & become first online shopping company.

2003 Darphin and rodan were acquired a license with Michael kors.

2004 Estee lauder launched flirt and good skin through its beauty division.

2005 She followed by grassroots.

2006 Daisy Fuentes follows by EL she license agreement with Sean hohn & Donald trump.

Vision statement

• “bringing the best to everyone we touch”

Mission of Estee Lauder We are family company committed to working together with

uncompromising ethics and integrity. We strive to always:

1. Provide customers with innovative cosmetic products of the highest quality.2. Deliver outstanding service by treating each individual as we ourselves would like to be treated.3. Create an environment that fosters personal growth and well being.4. Build partnerships with our suppliers, retailers and colleagues based on fairness and trust.5. Enhance our reputation of image, style and prestige.6. Pursue profit, but never at the expense of quality, service or reputation.7. Eliminate waste and reduce inefficiencies in order to provide maximum value to our customers.8. Be responsible citizens in every community we serve.

Financial position

• As indicated in Exhibit 3, Estee Lauder’s 2006 sales increased 3 percent to $6,463.8 million due to growth in their makeup, skin care, and hair care product categories, which waspartially offset by lower sales in the fragrance product category

Marketing mixProduct

• Estee Lauder markets more than 9,000 quality products.• Estee Lauder was the first major cosmetics firm to offer shopping via

the Internet.• Department stores remain the best venue for high service and great

brands $7.6 billion in beauty sales were generated in U.S. department stores in 2006, representing 18 percent of the total beauty market in the United States.

• The major shift has been in mall-based specialty stores. • In Europe, the skincare business continues to migrate to pharmacies. • While there is growth in perfumeries in Asia, the Asian department

store continues to dominate that channel.

Price

• Estee Lauder prices vary from product to product and from brand to brand, but remain to be in the mid-high to high range of the industry. Prestige pricing appears to be an effective strategy given their target markets.

Promotion

• Estee Lauder was the first cosmetics company to offer free samples and gift-with-purchase and continues this strategy today. The company was also the first in the industry to introduce consistent brand imagery around the world. For this purpose, the company usescelebrities as endorsers in advertising for commercials on TV, as well as in magazines.

Place

• It works in 130+ countries under the brand name of (estee lauder, armis, clinique,lab series etc).

Competitors• Top competitors in the cosmetics business are diversified with many brand names

and a wide range of products.• There are some competitors.1. L’ Oreal 2. Procter & Gamble 3. Unilever4. Colgate-Palmolive5. Avon6. Alberto-Culver7. Revlon

Financial position

Conclusion

• We expect to enhance our leadership in prestige beautyaround the world. We will continue to deliver innovative strong global brands. We will target and reach diverse consumers by distribution channels in key markets all over the world. Our goal is to optimize, diversify,and grow the business over the long term.developed a long-term strategy based on five imperatives:• Optimization of brand portfolio• Strengthening of product categories• Strengthening and expansion of global markets• Diversification and strengthening of channels of distribution• Operational and cost excellence.