Estee Lauder Swot

The Estee Lauder Companies Inc. Mission Founded by Estee Lauder in 1946, the Estee Lauder companies Inc. specialize in manufacturing top-end cosmetics, fragrance and hair care products. Beside famous Estee Lauder, its brands includes M. A. C. , Clinique, Bobbi Brown and etc. The mission of Estee Lauder is “Bringing the best to everyone we touch. ” Best products, best people, best ideas are three pillars that have been hallmarks of Estee Lauder company. Founder Estee Lauder was named after its establisher, Estee Lauder who was born in Queens, New York.

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The first cosmetic product sold by Estee Lauder was an altered version of his chemist uncle’s experimental face cream created in the lab. Later, Estee Lauder started her own business in face cream and improved the cream. Estee Lauder’s talent in selling her products was reflected in giving considerable amount of gifts in each sale. She died in April, 2004. Products The Estee Lauder companies Inc. carries a diverse portfolio of brands in skin care, makeup and fragrance.

Skin care includes its core brands, Estee Lauder, Clinique, Aramis and Lab series, which set the directions of the whole industry. Makeup line is composed by professional artists M. A. C, Bobbi Brown and La Mer. They are the innovative and leading brands. Fragrance and body beauty is desirable in seven brands, Kiton, Tommy Hilfiger, Donna Karan, Michael Kors, Sean John, Missoni and Tom Ford. Major Competitors * L’Oreal Founded in 1909, the L’Oreal Group is the world’s largest cosmetics and beauty company, including HR, Lancome, Biotherm, The Body Shop etc.

L’Oreal has strict rules about “SHE” (Safety, Health, Environment) policy, and it much more depends on American market than others. * Proctor&Gamble Founded in 1837, Procter & Gamble Co. becomes a Fortune 500 American multinational corporation, covering a wide range of consumer goods. 23 of P&G’s brands have more than a billion dollars in net annual sales. Besides the cosmetics brands such as OLAY, SK-II, P&G’s operations are categorized into three “Global Business Units” including Beauty&Grooming, Household Care, Health&Well-being. Coty Inc. Coty Inc. is the world’s largest fragrance company, whose fragance business occupys 65% of the total revenue. Coty Inc. is known for its cooperation with celebrities and desigers for the creation of fragrances. The brands are organized into two main divisions: Coty Beauty, including Adidas, Pierre Cardin, and Coty Prestige, such as Calvin Klein, Baby Phat, which is more luxurious than Coty Beauty. SWOT Analysis Strengths: * Established Brand Reputation: This brand is associated with luxuries and quality, it is also has a strong brand portfolio. Research & Development Advantage: Estee Lauder has role models and leaders in identifying what the consumers need and prefer, then developing products accordingly. * Strong Distribution Network: Estee Lauder’s products are sold to a limited stores that compliments the image of the brands such as department stores, upscale perfumeries, specialty stores etc. * Powerful Marketing Techniques: Free Gift, Gift-With-Purchase, Makeup Artist Events etc. Weaknesses: Lack of Focus: Estee Lauder develop skin care, cosmetics, perfume and hair care products, but they do not have the concentration to match costumers’ value. * Weak Liquidity Position: In the past few years, Estee Lauder declined in the firm’s liquidity. * Declining Operating Income: This phenomenon marks the weak penetration of the products in those specific markets. * Structure Reorganization: Estee Lauder management structure is under reorganization after the death of founder, Ms. Estee Lauder.

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