Premium Essay

Estee Lauder

In: Business and Management

Submitted By cherryab
Words 695
Pages 3
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, skin tones and beauty habits” (The Estee Lauder Companies Inc., 2011). It adds value to customers through its market research by creating products customers want (Moch, 2011) (The Estee Lauder Companies Inc., 2011). Its products are rare and difficult to imitate because it requires a great deal of know-how and capital. It provides the company with access to a wide variety of markets....

Similar Documents

Free Essay

Estee Lauder

...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......

Words: 3650 - Pages: 15

Free Essay

Estee Lauder

...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......

Words: 314 - Pages: 2

Premium Essay

Estee Lauder Study Case

...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......

Words: 9721 - Pages: 39

Free Essay

Estee Lauder Case Study

...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......

Words: 1394 - Pages: 6

Free Essay

Estee Lauder Strategic Management Case

...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......

Words: 3871 - Pages: 16

Free Essay

Consumer Behaviour: Estee Lauder

...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......

Words: 3298 - Pages: 14

Premium Essay

Estee Lauder

...Introduction Founded in 1946, the Estée Lauder Companies, Inc. is one of an American corporation in New York City. Estée Lauder is a manufacturer and market of four cosmetics product lines: skin care, make up, fragrances and hair care products. By integrating “High-Touch” aspect into all day-to-day business activities, this technologically advanced, innovative company has gained a worldwide reputation for elegance, luxury and superior quality. Each of the company’s brands has a single global image that is promoted with consistent logos, packaging, and advertising designed to differentiate it from other brands. Beauty, youth, and being forever young are common themes in the personal products industry. II. Industry Analysis Using Porter’s Five Forces Rivalry Among Existing Firms This is high in the case of Estée Lauder. There are numerous competitors among the market. Estée Lauder’s major competitors are Avon, L’Oreal, P&G, Shiseido, Max Factor, Revlon, etc. Some of these competitors, such as L’Oreal, P&G, have the similar size as Estée Lauder does, which makes the competition intenser. There are various brands under the company, so it is important to differentiate products and increase consumer switching costs. Bargaining power of buyers This is high because there are lots of other big brands in the market and many products in Estée Lauder have substitutes in other brands, so buyers can easily switch to other brands.However, Estée Lauder does not have to worry......

Words: 4843 - Pages: 20

Premium Essay

Estee Lauder

...Submitted by: Reginald C. Lamson Introduction: • Manufacturers and marketers Skin care, makeup, fragrance and hair care products • Estee lauder companies came in front in 1946 • ByEstee lauder and her husband Joseph lauder. • Estee lauder companies has 26 brands • Selling products in over 130 countries andterritories • Employs over 22000 people worldwide. VISION STATEMENT In a short, concise statement, Estee Lauder Companies Inc. stated their vision, i.e. “Bringing the best to everyone we touch.” MISSION STATEMENT “We (Estee Laude r) are a family company committed to working together with uncompromising ethics and integrity I. STATEMENT OF THE OBJECTIVES • To know the possibility of bringing Estee Lauder to in the Philippines. • To know the possible market for Estee Lauder products. II. CENTRAL PROBLEM • High cost of production • Difficulties in distribution channels /Changes in distribution policy and retail environment III. SWOT A. STRENGTH • Markets about 9000 of quality products. • Global licenses for fragrances and cosmetics. • Each of the company brands has a single global image • It engages celebrities to advertize its products B. WEAKNESSES • Difficulties for the customer to order online for those who doesn’t have computer and bank accounts. • High pricing • Geographically not targeting Asian......

Words: 598 - Pages: 3

Premium Essay

Estee Lauder

...1. INTRODUCTION 2.1. COUNTRY OF JAPAN Japan is an island nation in East Asia. Located in the Pacific Ocean, it borders China, North Korea, South Korea, Russia, Taiwan, the Sea of Japan, the Sea of Okhotsk, and the East China Sea. It is an archipelago of 6,852 islands, most of which are mountainous and many are volcanic. The government system is a parliamentary government with a constitutional monarchy. The chief of state is the Emperor and the head of government is the Prime Minister. Japan has a market economy in which the prices of goods and services are determined in a free price system. Japan is a member of the Asian Pacific Economic Cooperation (APEC). Japan's main export goods are cars, electronic devices and computers. Most important trade partners are China and the USA, followed by South Korea, Taiwan, Hong Kong, Singapore, Thailand and Germany. Japan has a surplus in its export or import balance. The most important import goods are raw materials such as oil, foodstuffs and wood. The industries of Japan are manufacturing, construction, distribution, real estate, services, and communication are Japan's major industries today. Agriculture makes up only about two percent of the GNP. Most important agricultural product is rice. Resources of raw materials are very limited and the mining industry rather small. Japan's service sector accounts for about three-quarters of its total economic output. Banking, insurance, real estate, retailing, transportation, and......

Words: 2304 - Pages: 10

Premium Essay

Estee Lauder Debrief

...Estee Lauder Inc. is one of the most successful and most popular cosmetic brands in a very competitor cosmetic industry. In this analysis we have determined the top competitors for Estee Lauder by extrapolating a list of key criteria. The first key criterion is market share. Market share is essential in determining how each of Estee Lauder’s competitors is like to capture more or less share of the cosmetic industry based on the competitor’s current position in the market. The next criterion we examined is gross revenue, which is similar to market share in determining how large or small competitors are compared to Estee Lauder based on earnings. Another criterion is quality, this criterion is more subjective; however, we confidently believe that quality could be based on pricing, location, and availability of products. Moreover, Estee Lauder’s competitors may have a higher or lower quality product compared to Estee Lauder based on these factors. After considering these criteria, we have determined seven major competitors, three of which are considered major competitor while the other four would be considered less competitive competitors. Among the seven competitors Procter & Gamble, Avon, L’oreal, Coty Inc, Revlon, Shishedo, Bare Essential, the top three competitors that are fit in our criteria in cosmetic and personal care product manufacturing industry are Procter & Gamble, L’Oreal, and Coty Inc. The first reason is that their market capitals are very competitive. Based on...

Words: 924 - Pages: 4

Premium Essay

Executive Summary

...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...

Words: 557 - Pages: 3

Premium Essay

Analysis

...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.......

Words: 900 - Pages: 4

Premium Essay

Finance Equities

...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......

Words: 617 - Pages: 3

Premium Essay

Case

...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...

Words: 1162 - Pages: 5

Premium Essay

Cash Flow

...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,...

Words: 1008 - Pages: 5