Beruflich Dokumente
Kultur Dokumente
3
Early Evolution . . . . . . . . . . . . . . . . . . . . 6
Global Expansion . . . . . . . . . . . . . . . . . 8
Modern Business . . . . . . . . . . . . . . . . . . 9
Company Structure . . . . . . . . . . . . . . 16
Recent Efforts . . . . . . . . . . . . . . . . . . . .17
Company DNA . . . . . . . . . . . . . . . . . . 32
Summary . . . . . . . . . . . . . . . . . . . . . . . 35
Social Media Accounts . . . . . . . . . . . 36
In the 1960s, Este carried her sales bag around the world,
opening up concessions wherever she went: Hong Kong, Canada,
Austria, Italy and Germany
Este then handed over the task to an international sales manager
Their first store in Moscow opened in 1981 while it was still the
capital of the Soviet Union
By the mid-1990s, the company was selling in over 100 countries
Este Lauder passed away in April 2004
Her son, Leonard - fresh from completing his Columbia MBA, joined
the company in 1958
By 1962, Este Lauder Company chose a different approach
She used only one model, who would be the face of the
company that would appear on every product over several
years
The first face of Este Lauder was Karen Harris
Este Lauders second masterpiece was mens fragrance in 1965
Aramis was launched - a fragrance, a cologne and an aftershave lotion
Due to uninspiring sales results, Aramis re-launched in 1967
Presented entire range of products: after-shave, eye pads and a
face mask and covered with brown and gold tortoiseshell livery
Este now presented an entire range of products: after-shave, eye
pads and a face mask
The Este Lauder name was relegated to small print and soon
dropped altogether
2
The first advertisement for the brand ran in The New Yorker
featuring the All-Weather Hand Cream Este was selling to
metrosexuals thirty years before the term came into common
jargon
A successful re-launch that Este Lauder promoted brand equity.
They could appeal to both sexes and all ages
Leonard appealed medical reassurance and partnership with Dr.
Norman Orentreich, an expert in skin sensitivities and formed
Clinique
At department stores, Clinique stood out for its bright, clean lines
and its not too clinical packaging; the artists lamp for examining
customers skin; and a question-and-answer board
Codenamed as Project Miss Este, Cliniques launch day
approached but a complaint was filled by Jacquet and Jacquet with
their trademark product called Astringent Clinique
More success came with the Launch of White Linen as part of the
trio of fragrances called New Romantics
The company returned to its skin care roots in 1983 with the
launch of Night Repair, trumpeted in ads as a biological
breakthrough
Unfortunately, the message was undermined by the Clinique
collaborator, Dr Orentreich, going rogue, and debunking the whole
idea in the press
Launched of Their Beautiful in 1985, was a blockbuster that
became another long-term success
Este Lauder were now un-disputed kings of the department store
cosmetics floor, and second only to Avon in sales of fragrances
In 1990, Leonard recruited Robin Burns from Calvin Klein. Under
Burns leadership, companys portfolio and advertising was
updated
In 1996, sales, which had grown every single year since the
companys inception, rose to nearly $3 billion
So far, the company had been hugely successful developing its
own brands, but around the IPO, they ventured into acquisitions
They decided to merge with Make-up Art Cosmetics Ltd.
(MAC) followed by another professionals beauty line, Bobbi
Brown Essentials
Sassaby Inc. with its Jane brand, was also purchased for its
populist appeal to teenagers
With 42% of sales coming from this one unit, it was a huge
multi-billion dollar enterprise in its own right
2004
The 58th successive year of sales growth saw a company-record
increase of $700 million, making the top line up to $5.8 billion
Five of the companys brands - Este Lauder, Clinique, Aramis,
Donna Karen fragrances and Tommy Hilfiger fragrances were
available in over 120 countries, Clinique in over 130 countries
Este Lauder and Clinique were growing rapidly in China
Aveda was launched in Japan
MAC was growing fast in Brazil via its own stores
Darphin, a high-end botanical beauty brand sold primarily through
independent European pharmacies, was acquired
BeautyBanks initial output was three new brands, which were
launched through the Kohls chain of 600 department stores
2005
Sales reached of $6.3 billion
Este Lauder had four of the top five best-selling fragrances in
department stores. But the fragrance market was getting tougher
all the time.
The company was now marketing a range of over 90 prestige
fragrance brands with over 200 new ones being launched by the
industry each year
Stood at 26 with the addition of fashion designer Tom Fords name
70% of sales was coming from the five core brands the company
had developed themselves: Este Lauder, Clinique, Aramis,
Prescriptives and Origins
Clinique was launched into Vietnam during the year, soon followed
by Este Lauder
2
MAC launched into both India and China during the year
Clinique and Este Lauder, launching in another 23 Chinese cities,
almost doubled sales
2006
Este Lauder being squeezed at either end: by category killer
chains and by Wal-Mart, experienced a huge struggle for the
company to keep growing sales
There was a slow but unstoppable decline in the effectiveness of
the gift-with-purchase promotional technique
Sales declined, despite makeovers for the venerable Youth Dew,
White Linen and Pleasures brands
MAC was the companys fastest growing brand, launching into
Russia as well as China and India
Diversifying Distribution
$3.2 billion, international sales had doubled to nearly $4.7 billion impressive by any standards. This was due to three factors:
The company was then most excited about the potential offered in
four up-and-coming channels:
The Internet 15 brands became available for sales online in
a growing number of countries - Korea being the latest. In line
with Este Lauders trademark personal touch, Clinique,
MAC, Bobbi Brown and Origins all offered live chat, with real
make-up artists providing personalised advice
Direct Response TV - This was another arena where a
prolonged interaction with the audience played to company
strengths. Clinique, Origins, Bobbi Brown and Ojon had all been
big hits, but only Ojon had been acquired because it was
primarily a direct response TV brand
2009
A declined of 7% to $7.3 billion was more due to currency
fluctuations
Este Lauder reduced its SKU (Stock Keeping Unit), count by 16%
and cut merchandising, advertising and sampling budgets
At the Bobbi Brown counters and in the Origins stores: for the
traditional fragrance brands, smaller, less expensive pack sizes
were introduced
Bouncing back with a 6% sales increase to $7.8 billion
Asia and Europe drove the growth
Sales in China increased by almost 30%, with E-commerce
chipping in a 23% increase
The launch of Este Lauders Advanced Night Repair was the most
successful in the companys history
79 MAC stores opened around the world
2
2011
13% increase which was three-times the growth rate of the total
industry
Here increased footfall in department stores encountered Este
Lauders revitalised counters:
special lighting
interactive touch screen tools
a host of new products
Business also grew in other US channels, particularly fast-growing
multi-brand beauty retailers like Sephora, where Bumble launched
in 298 stores
In digital selling, sales rose by 28%
The company became leaders in China in the prestige beauty
category
2
Consumer Contact
The most important aspect was making human contact
Product selection is personalized
Companys greatest achievement has been to translate their USP
(unique selling point) into areas such as company stores, direct
response TV and, most successfully, the Internet
Global
Helping to meet basic needs applicable across all races, countries
and languages
Este Lauder is in an ideal position to benefit hugely from the
rapidly increasing new middle classes in emerging markets - having
powerful, leading positions in the BRIC markets (Brazil, Russia,
India and China) and elsewhere
Innovation
Innovation has always been at the heart of the company: both what
the products did and how they were sold
8 global R&D laboratories provide an endless stream of hundreds of
new products a year
The companys prowess in innovation is best illustrated by the
Forbes 2012 lists: The Este Lauder Companies ranked #933 in
sales, #716 in profits, #348 in market cap and #23 in Innovative.
This is one place above Google.
Brand Management
All of the original brands have been developed and adapted to be
still relevant today
Every acquired brand has gone on to much greater heights under
their stewardship. MAC. Brand equities have been passionately
protected, a process continues today.
Which brands should appear in which retail environments has
always been a company obsession - iron discipline in this area is
the key reason that the Este Lauder brand itself is now the worlds
leading beauty brand.
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