Why?
The beauty business is one of the most profitable markets in the world. The beauty industry experiences tremendous amounts of growth despite economic challenges faced throughout the globe. Annually, people in the United States spend eight billion dollars on cosmetics alone. (Matters of Scale- Spending Priorities, 1999) Estee Lauder is a pioneering company that is internationally known for its cosmetics.
The company has made major contributions to the cosmetics industry for the sixty-seven years that it has been in business. Estee Lauder was established in 1946 by a woman named Josephine Mentzer who had an interest in beauty and the beauty industry. (Inc., 2013) However, what makes the company stand out against the competition?
What?
Estee Lauder focuses on the marketing, manufacturing and the selling of skin care, fragrance, makeup and hair care products throughout the world. (Gale) Estee Lauder Companies Incorporated generates over ten billion dollars a year from being sold in over 130 countries with over twenty companies it owns. (LLC™, 2013) Their products are very accessible by being available in establishments like Macy’s, Bloomingdale’s and Nordstrom’s. Their products are also available in their freestanding stores and online. The company offers a variety of products for the customers to choose from making it thus more attractive to a customer than a company that has limited assortments. Estee Lauder provides quality products while providing appropriate quantities to its distributors. It instills trust with its customers so that when they purchase an Estee Lauder product, the customer will less likely have buyer’s remorse due to customer satisfaction.
How?
Estee Lauder’s legacy plays a large role in the company’s succ...
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... L. (2013, December 05). About Estee Lauder. Retrieved from Estee Lauder: http://www.esteelauder.com/cms/about/index.tmpl
Inc., E. L. (2013). Makeup Estee Lauder Official Site. Retrieved December 8, 2013, from Estee Lauder: www.esteelauder.com/cms/product/supercat/makeup.tmpl?CATEGORY_ID=CAT631
Inc., E. L. (2013). Skincare Estee Lauder Official Site. Retrieved December 8, 2013, from Estee Lauder: www.esteelauder.com/cms/product/supercat/skincare.tmpl?CATEGORY_ID=CAT681
LLC™, 2. F. (2013, September 9). Estée Lauder -- A Beauty Company To Be Reckoned With. Retrieved November 28, 2013, from Forbes: http://www.forbes.com/sites/walterloeb/2013/09/09/estee-lauder-a-beauty-company-to-be-reckoned-with/
Singer, N. (2011, March 26). Business Day. Retrieved December 9, 2013, from The New York Times: http://www.nytimes.com/2011/03/27/business/27lauder.html?ref=esteelauder&_r=1&
...he oldest companies producing skin care and pharmaceutical products, it has a high level of customer care in order to create high value from their products and high customer satisfaction.
Sally Beauty has a heritage as the first choice for professional cosmetologists and consumers alike because of the broad range of products. Their international presence offers Sally Beauty / BSG insight into fashion and beauty trends. It gives buyers and merchandisers a head start on obtaining the tools and products salon professionals need to create the latest fashion looks, as well as the products consumers use to maintain the look between salon visits. Beauty Systems Group stores, along with its outside sales consultants, sell up to 9,500
.... "The Beauty Industry Promotes Unrealistic Beauty Standards." Not Just a Pretty Face: The Ugly Side of the Beauty Industry. Gabriola Island, BC: New Society Publishers, 2007. Rpt. in The Culture of Beauty. Ed. Roman Espejo. Detroit: Greenhaven Press, 2010. Opposing Viewpoints. Opposing Viewpoints in Context. Web. 4 Mar. 2014.
Horst Rechelbacher founded Aveda in 1978. Aveda started with one product shampoo that Rechelbacher had created in his kitchen sink leading to the development of conditioners and all other products. Aveda is now a successful business with 5000 employees, and has store locations in 33 different countries and 7231 beauty shops. All of Aveda’s products are manufactured in their factory in Minnesota; the Estee Lauder Company now owns Aveda. Estee Launder purchased Aveda in 1997 for $350 million, since then Aveda has doubled their annual sales.
Over the last 50 years, the esthetics industry has grown tremendously. At one time, it was all about luxury and pampering the client with services that make them feel relaxed. Now, it also implements specific skin treatments that target skin conditions, such
As you read further you will see why MAC is such a unique entity in this well established industry. Every aspect of what makes MAC Cosmetics; "MAC" being its products, its location, its brand image, or its phenomenal price point is unique and goes against most typical marketing methods. As we all know product, price, promotion and place are the four fundamental variables that either make or break a company. MAC is currently the only Estee Lauder brand that is not only meeting; but exceeding its annual sales goals. Last year MAC surpassed its sales plan by 121 million dollars! Which is unheard of in this industry.
Analysis of the “Dollar Shares” table combined with the “Moisturizer Units Sold” table (on page 309) shows that Plenitude actually leads in the “treatment” category. On the other hand, they are only third when it comes to the “daily” category (see appendix). This all contributes to the fact that Plenitude does not have the mass-market appeal which it needed for the “class of the mass” strategy to work. People viewed L’Oreal as a high-end, a step-up, more expensive and only for older women.
NARS Cosmetic is a cosmetic company founded by Francois Nars in New York, US in 1994 (Hollywoodnoirmakeup.com, 2012). It is considered as one of the best-selling cosmetics and skincare products company in U.S.A, Canada, Korea, Japan, and Taiwan (Shiseido Co., 2014). Since the demand for cosmetics are growing every year and people are looking for more quality products, the company decided to open a new branch in the Middle East to have more customers and to satisfy them by making the NARS product more easily accessible.
Everybody needs to look alluring and feel their best. Makeup are restricted that we improve our looks and our elements. Before purchasing beauty care products it is fundamental, in any case, to comprehend the potential threats of cosmetics and to look for items that will sustain and decorate without hurting your skin or your body. Ladies don't need to trade off on their wellbeing to accomplish magnificence in the 21st century.
According to the textbook case study, the main reason is due to the market in the United States for cosmetics are very mature, not to mention extremely competitive. Because of this, Avon made the decision to put its emphasis – and resources – in less-competitive markets. (Daniels, 2010)
Although L’Oreal reached European success, entering into the U.S. market proved much more difficult. In 1953, L’Oreal formed licensee Cosmair Inc. in New Jersey to distribute its hair-coloring products to beauty salons. The company soon realized three challenges within the U.S. market. First, in the U.S. local middlemen delivered products to salons, and L’Oreal had little to no relationship established with this group. Second, L’Oreal hair products were not well known by the salon workers and their clientele and therefore were not purchased and sold much in salons. Finally, the French prestige, which helped sell perfumes, did little for the hair-coloring products.
· Strong Brand name/ image of products- A wide range of leading brands in its products portfolio such as; Dove soaps and shampoo, Lipton teas, Slim-fast, Ben and Jerry’s ice-cream.
L’Oreal is the largest beauty company in the world and in the past 100 years that it has expanded, it has supplied to 130 countries with offices in 58 different countries. This global company is the number one premium cosmetic product in the world today and has taken the core and beauty of people’s everyday lives since 1907, the beginning of L’Oreal. The superior leadership of a guy named Eugene Schueller started this strategic company with basic products such as hair care and also the first man-made hair color product. Five years later you could find these products in Austria, Italy, and the Netherlands. In 1934 Eugene invented the first mass market of soap less shampoo and this led the success of L’Oreal in the country of Europe which soon recognized them as the leader in body care and hair coloring products. Finally soon after World War II L’Oreal moved into the United States and the company seemed to change. When L’Oreal expanded the competition was more involved and more growth was needed in order for the company to be more successful. With problems like this, the strategy and planning that has been applied in L’Oreal has been huge for the success of the company. L’Oreal realized they needed to expand in other fields of the beauty market and target markets in order to stay alive and successful. This would mean that L’Oreal would need to acquire other companies as part of their expansion and through this they have kept the constancy of the leading company with acquisitions of many small companies. Finally in the 1980s they started their globalization into new markets all around the globe by acquiring new companies that would form the cosmetics that we know today. Although the role of acquisitions has never been the main focus of the company, internal growth and strategy was the number one reason for L’Oreal becoming such a big name. The main strategy was to adopt new companies and expand it from within believing that the brand could be taken globally and benefit their overall brand portfolio. The main role of acquisitions was to increase and lengthen the internal growth rate. L’Oreal started acquiring companies from the beginning of their name. They started with the basics of their own brands such as L’Oreal Professional, L’Oreal Paris, Kerastase, and Club des Createurs de Beaute.
Avon Products, Inc. (Avon) is based in New York. The firm engages in the manufacture and marketing of beauty and complimentary products primarily in North America, Latin America, Europe, and Asia Pacific (Yahoo Finance, 2005). Avon's products are classified into three product categories: Beauty, Beauty Plus, and Beyond Beauty. The Beauty category consists of cosmetics, fragrances, skin care, and toiletries; Beauty Plus includes fashion jewelry, watches, apparel, and accessories; and Beyond Beauty comprises home products, gift and decorative products, candles, and toys (Ibid). The company sells and markets its products through a combination of direct selling, marketing by independent Avon representatives, and via its consumer Web site, avon.com.
Beauty product can be defined as cosmetics; materials and devices made and sold for the purpose of enhancing the physical attractiveness of users or in other words, as any product, especially a cream or lotion, intended to improve a person's appearance . We live in society where people nowadays are very obsessed with beauty and spending so much money on beauty products. Since we were children, the society taught us that beauty is happiness, wellness and everything. This creates a mindset that only attractive physical appearance is beauty, even though ‘beauty’ is a very subjective word where it can apply to many things. It is a rare sight these days to