Estee Lauder has opportunities for growth through its global online presence, where online sales continue to see double-digit growth. The company has launched nearly 50 new mobile commerce sites to expand in emerging markets where mobile is dominant for online shopping. However, Estee Lauder could do more to engage consumers and keep them loyal through enhanced social media engagement, as they face competition from other brands and companies. The business plan and e-marketing plan have become intertwined, with a focus on building brand loyalty and creating awareness through targeted online strategies.
1. Chelsea Smith
Social Media & Marketing
April 9, 2015
Writing Assignment 1
Situational Analysis
Estee Lauder has targeting opportunities in high-growth channels through global
presence. “Online continues to drive double-digit sales growth in both established and emerging
markets as more consumers adopt this channel.”₁ Estee Lauder distributes credit to its
innovation in digital marketing and social media campaigns. The company has launched in
nearly 50 new m-commerce sites that enhanced the reach in emerging markets where mobile is
the dominate platform for online shopping. Online shopping and marketing is the fastest-
growing platform for prestige beauty distribution channels worldwide that has no end in sight.
SWOT Analysis
Strengths Weaknesses
Company Presence
Estee Lauders Resources
Base-line for social media platforms
Focus on a downward
communication
Current integration of social media
2. Commitment to creativity and
innovation.
Global training in high-touch
services.
Fitting to local relevance.
Being connected digitally.
Production in different markets to
fit all consumers.
Established commitment to natural
products with 100% natural oils.
Research and development of
consumer reviews.
Manufacturing and distribution in a
timely manner.
Department store integration with
social media
Opportunities Threats
Targeting a growing consumer base
solely on the internet
Focusing on customer education
through take home instructions in
packaging.
Consumer out-reach through blogs
and video postings
Economic fluctuation.
Consumer’s plans and budget
luxury products.
Though the Estee Lauder has made great strides in reaching consumers online through
social media platforms and phones, they could do more. Many of the brands have great presence
online but the outreach to the consumers’ needs to redefine to keep them loyal to the company.
3. With so many competing competitors as well as competition within the existing umbrella
companies. Estee Lauder should reach out to the upcoming and ever changing consumers
through enhanced social media engagement.
Online Strategies
Online Goals Online
Advertisin
g
Online
Videos
E-Mail Online
Sales
Social
Network
Increase Customer
Engagement
Yes Yes Yes Yes Yes
Increase Customer Database Yes No Yes Yes Yes
Improve Customer Service Yes Maybe Yes Yes Yes
Build Brand Name Awareness Yes Yes Yes No Yes
Increase Online Sales Yes Maybe Yes Yes Yes
Reposition Brand Yes Yes Yes No Yes
Increase Facebook “Likes” Yes Yes Yes Yes Yes
Generate Sales Leads Yes Yes Yes Yes Yes
E-Marketing and Business Plan
The business plan and e-marketing plan used to separate entities however, with the
growing online presence, they are intertwined and neither can be without each other. Estee
Lauder has a strong, diverse, and highly valuable brand portfolio and global reach and potential.
The business plan is continuously leveraged on the creativity, innovation, and entrepreneurship.
4. The business plan is distinctively expanding by their “High-Touch” service model and distinct
channels of distribution and geographic regions. They state that “We have continued to enhance
our capabilities to deliver superior retailing experiences across brands, particularly in
freestanding retail stores. We also continue t to increase brand awareness and sales by
expanding our multi-pronged digital presence encompassing e-commerce and m-commerce, as
well as digital and social media.”₂
Market Segmentation
Target Market
Ultimately, the target market for the Estee Lauder is women over the age of 30. For
example, managers and administrators, professionals, and clerks. Why target this specific group?
Demograpic
Segmentation
Age
Gender
Pschographic
Segmentation
Socal Class
Life Style
Behavioral
Segmentation
Occasion
Benefits
Sought
5. Estee
Lauder
Woman
Strong
Purchasing
Power
Income of our
target groups
that are most
profitable
Wealthier
buyers that
are less price
sensitive Customers
with brand
loyalty
High-End
Market
Strategic Focus
• Build brand Loyalty
• Creating Awareness through promotion.
• Understanding how to deliver targeting
strategies through online social media and
marketing
• Consistent, clear, and compelling company and
brand messagethat targets the four categories
of online shopers
6. With e-marketing, the shift of more traditional marketing targets are shifting towards fast
passed consumers. Raj De Datta, the CEO of Blookreach, states the online shoppers can be
categorized into four different categories. Window shoppers, hunters, gardeners, and gatherers.
The “window” shoppers never have a clear intent on purchase but to them Pintrest is the
window shopping mega-mall. These customers don’t go there with a destination or product on
mind. They do go there for the “journey” of looking at visually stunning products, places,
gorgeous peoples, and of course the hit web sensation, cats.
Then there are the “hunters”. They are there with a clear purpose of purchasing a specific
item and want it done as quickly as possible. These customers know what they need and they
know when they see it. For these shoppers the intent to buy is clear by the patience is limited.
The “gardeners” are shoppers that have cultivated their tastes and the brands they like are the
ones the engage in. These customers also like to have a relationship through content – behind
the scenes photos, tips and tricks, and an opportunity to be involved.
The last category of the online shopper are the “gatherers”. Gatherers are out there to
find the best deal and rely heavily on their friends’ recommendations. For these customers there
is no place like Twitter and reviews. Gatherers are much like the hunter because once their mind
is set they know what they want.
7. Work Cited
₁-₂"President and Chief Executive Officer, Digital Success." Capturing Opportunity 2014 Annual
Report. Ed. William Lauder. New York,: Estee Lauder Companies, 2014. 8, 29. Print.
"Estee Lauder's Web Sales Top $500 Million in Fiscal 2013." E-commerce Grew by 6% in the
United States. Ed. Bill Brigs. Internet Retailer, 20 Aug. 2013. Web. 7 Apr. 2015.
<https://www.internetretailer.com/2013/08/20/estee-lauders-web-sales-top-500-million-
fiscal-2013>.