A short history & financial analysis of Estee lauder Companies.

1. ESTEE LAUDER COMPANIES
Atif Nawaz
emil- aafinawaz@gmail.com
MBA (3.5 Years)
INSTITUTE OF BUSINESS &
MANAGEMENT SCIENCES,

2. Estee lauder Companies
“bringing the best to everyone we touch”

3. About Estee Lauder
 EL based in New York city involve in manufacturing and
marketing of four type of product line:
1. Skin care
2. Makeup
3. Fragrances
4. Hair care products
 It works in 130+ countries under the brand name of (estee
lauder, armis, clinique,lab series etc).
 Sales of EL is increase 7% in 2007 $7.037 billion.
 The sale is collected by
1. Skincare products 37%
2. Makeup product 39%
3. Fragrances 19%
4. Hair care 5%

4. History of Estee Lauder
Estee lauder a young entrepreneur woman of
united state . She work with his uncle john
shotzs who was a chemist . She interested in
the products of cosmetics skin care etc. in
1946 she launch her first product and after
the launch of her product she establish his
own departmental store. Her name include in
top 10 outstanding women of united states
the further detail is in next slide.

5. Years History of Estee lauder
1946 She launch her first product and sale out in beauty saloons and hotels.
1948 She established her first department store with saks fifth avenue in New York.
1960 She globalized her company operation e.g. London Hong Kong etc.
1964 She launch the several brand e.g. armis prestige fragrance for men.
1967 She is one of the name of ten outstanding women in business in United States.
1968 She launch Clinique the first dermatologist and allergy tested brand.
1983 She introduce the product in soviet union.
1995 She introduce lar mer bobby brown and kiton.
1998 El selling a varity of products over internet & become first online shopping company.
2003 Darphin and rodan were acquired a license with Michael kors.
2004 Estee lauder launched flirt and good skin through its beauty division.
2005 She followed by grassroots.
2006 Daisy Fuentes follows by EL she license agreement with Sean hohn & Donald trump.

7. Vision statement
• “bringing the best to everyone we touch”

8. Mission of Estee Lauder
 We are family company committed to working together with
uncompromising ethics and integrity.
 We strive to always:
1. Provide customers with innovative cosmetic products of the highest
quality.
2. Deliver outstanding service by treating each individual as we
ourselves would like to be treated.
3. Create an environment that fosters personal growth and well being.
4. Build partnerships with our suppliers, retailers and colleagues based
on fairness and trust.
5. Enhance our reputation of image, style and prestige.
6. Pursue profit, but never at the expense of quality, service or
reputation.
7. Eliminate waste and reduce inefficiencies in order to provide
maximum value to our customers.
8. Be responsible citizens in every community we serve.

9. Financial position
• As indicated in Exhibit 3, Estee Lauder’s 2006
sales increased 3 percent to $6,463.8 million
due to growth in their makeup, skin care, and
hair care product categories, which was
partially offset by lower sales in the fragrance
product category

15. Marketing mix
Product
• Estee Lauder markets more than 9,000 quality products.
• Estee Lauder was the first major cosmetics firm to offer
shopping via the Internet.
• Department stores remain the best venue for high service
and great brands $7.6 billion in beauty sales were
generated in U.S. department stores in 2006, representing
18 percent of the total beauty market in the United States.
• The major shift has been in mall-based specialty stores.
• In Europe, the skincare business continues to migrate to
pharmacies.
• While there is growth in perfumeries in Asia, the Asian
department store continues to dominate that channel.

16. Price
• Estee Lauder prices vary from product to
product and from brand to brand, but remain
to be in the mid-high to high range of the
industry. Prestige pricing appears to be an
effective strategy given their target markets.

17. Promotion
• Estee Lauder was the first cosmetics company
to offer free samples and gift-with-purchase
and continues this strategy today. The
company was also the first in the industry to
introduce consistent brand imagery around
the world. For this purpose, the company uses
celebrities as endorsers in advertising for
commercials on TV, as well as in magazines.

18. Place
• It works in 130+ countries under the brand
name of (estee lauder, armis, clinique,lab
series etc).

19. Competitors
• Top competitors in the cosmetics business are diversified with many brand
names and a wide range of products.
• There are some competitors.
1. L’ Oreal
2. Procter & Gamble
3. Unilever
4. Colgate-Palmolive
5. Avon
6. Alberto-Culver
7. Revlon

20. Financial position

21. Conclusion
• We expect to enhance our leadership in prestige beauty
around the world. We will continue to deliver innovative strong
global brands. We will target and reach diverse consumers by
distribution channels in key markets all over the world. Our goal is
to optimize, diversify,and grow the business over the long term.
developed a long-term strategy based on five imperatives:
• Optimization of brand portfolio
• Strengthening of product categories
• Strengthening and expansion of global markets
• Diversification and strengthening of channels of distribution
• Operational and cost excellence.