The Marketing mix of Estee Lauder analyses the 4Ps of Estee Lauder, which includes the Product, Price, Place, and Promotion of Estee Lauder. Estee Lauder is a public company of American origins associated with the cosmetics industry. It was established in 1946 by its founders, Joseph Lauder and his wife Estee Lauder.
The company deals in marketing net sales and manufacturing products and services related to hair, skin, and makeup. It uses advanced technology and innovative concepts to create products that personify superior quality, ultimate luxury, and elegance. Some of its rival companies are as follows-
About Estee Lauder
- Type: Cosmetics Company
- Industry: Personal care
- Founded: 1946
- Founder: Estee Lauder
- Headquarters: Midtown Manhattan, New York City, United States
- Area served: Worldwide
- Key people: William P. Lauder (Chairman) and Fabrizio Freda (CEO)
- Number of employees: 68,000
Table of Contents
Estee Lauder Product Strategy
Estee Lauder started its hair care product portfolio with only four items: Crème Pack, Super-Rich All Purpose Crème, Skin Lotion, and Cleansing Oil. It has a diverse product range that guarantees qualitative products that are both effective and gentle on skincare, too.
- Skincare Products: Moisturizers, Serums, Cleansers, Toners, Sunscreens, Anti-aging creams, Eye creams, Face masks.
- Makeup Products: Foundations, Lipsticks, Eyeshadows, Mascara, Eyeliners, Blushes, Concealers, Setting sprays, Makeup brushes and tools
- Fragrances: Perfumes, Eau de toilette, Cologne, Body lotions and creams, Gift sets
- Haircare Products: Shampoos, Conditioners, Hair treatments, Styling products, Hairbrushes and accessories
- Body and Bath Products: Body lotions, Shower gels, Body oils, Bath salts, Hand creams, Deodorants
- Men’s Grooming Products: Skincare for men, Shaving creams and gels, Aftershave balms, Cologne for men
- Nail Care Products: Nail polishes, Nail treatments, Manicure and pedicure tools
- Professional and Luxury Lines: Estée Lauder offers professional and luxury skincare, makeup, and fragrance lines under brands such as La Mer, Jo Malone, and Tom Ford Beauty, among others.
- Travel Retail Exclusives: Estée Lauder produces exclusive product lines for travelers, often available at duty-free airport shops.
- Online and Digital Products: Estée Lauder has expanded its digital presence with virtual try-on tools and online beauty consultations, enhancing the online shopping experience.
- Limited-Edition Collections: Estée Lauder periodically releases limited-edition collections in collaboration with designers and influencers, creating excitement and demand for exclusive products.
- Wellness and Lifestyle Brands: Estée Lauder has branched into wellness and lifestyle brands, offering products such as nutritional supplements and wellness essentials under brands like Origins and AERIN.
Estee Lauder Place Strategy
Estee Lauder is an international company with a worldwide network, including Brazil, China, Japan, the United Kingdom, and Italy. Its headquarters are based in Midtown Manhattan in the United States. The brand started its journey in New York City, and for the next fifteen years, it expanded its operating network in several parts of the United States.
In 1960, Harrods in London was chosen as its first international destination, and the following year was the turn for the Hong Kong office. Estee Lauder has been selling its products worldwide in nearly one hundred and thirty-five countries through department stores and a chain of retail outlets. Its products are also available at its online stores. Its distribution system network success depends on its efficient supplier chain and capable employees.
Here are five key aspects of Estée Lauder’s place strategy:
- Global Retail Presence: Estée Lauder operates a vast network of retail locations, including standalone stores, department store counters, and boutique shops, ensuring its products are available in high-traffic shopping destinations worldwide.
- E-commerce and Online Channels: Estée Lauder has a solid online presence through its official website and e-commerce platforms. This allows customers to browse and purchase products from the comfort of their homes, offering convenience and accessibility.
- Travel Retail and Duty-Free Shops: Estée Lauder products are strategically placed in airports and duty-free shops, targeting travelers who often seek luxury beauty items during their journeys.
- Partnerships with High-End Retailers: The company collaborates with prestigious retailers and luxury department stores to showcase its products at premium locations, aligning with its high-end brand image.
- Exclusive Pop-Up Stores and Limited-Edition Releases: Estée Lauder frequently employs pop-up stores and limited-edition releases to create buzz and exclusivity around its products. These temporary retail experiences generate excitement and demand among customers.
Estee Lauder Pricing Strategy
Estee Lauder has projected itself as a super-premium brand with high-quality luxury products that are in great demand in the market. The company has targeted upper and upper-middle-class sections of society and women for whom beauty is always at the forefront. A woman will never hesitate to spend a few extra bucks if she thinks it will prove beneficial and provide good results.
Estee Lauder has adopted a premium pricing policy for its products because it recognizes that it offers value-added products that will get dividends in significant revenues. To compete with rival companies, it provides incentives like gift coupons, discounts on first purchases, and discounts on online shopping. It brings the high prices down to a reasonable level and helps retain customer loyalty.
Vital elements of Estée Lauder’s price strategy include:
- Premium Pricing: Estée Lauder commands premium prices for its products, reflecting the brand’s heritage of offering high-quality, luxury beauty and skincare items. A reputation for superior formulations, cutting-edge research, and a commitment to innovation supports this premium pricing.
- Product Tiering: Estée Lauder offers a range of products catering to various customer segments. This includes premium and ultra-luxury lines under brands like La Mer and Tom Ford Beauty, allowing them to capture a broad spectrum of customers with varying preferences and budgets.
- Limited Editions and Exclusives: Estée Lauder introduces limited-edition and exclusive collections, often in collaboration with renowned designers or influencers. These offerings create a sense of exclusivity and justify premium pricing due to their uniqueness.
- Value Perception: Estée Lauder reinforces the value perception of its products by highlighting the quality, efficacy, and prestige associated with its brand. Through extensive research, clinical trials, and endorsements from makeup artists and skincare professionals, they underscore the worth of their offerings.
- Price Consistency: Estée Lauder maintains consistent pricing across different retail channels, including its stores, department stores, and online platforms. This pricing uniformity helps build customer trust and reinforces the brand’s image of reliability and prestige.
Estee Lauder Promotion Strategy
Estee Lauder is a recognized brand in the consumer market, and it has undertaken several policies to promote its products and increase brand awareness. New customers receive 15% off on their first purchase for purchases from the brand’s online stores. It has launched a scheme of offering gift coupons on gifts meeting some of the set criteria of the brand. This is emailed directly to the recipient’s address within a short period. It has successfully created a new consumer base and served as a reward for loyal customers. To provide transparency, information is published on its packaging, such as net contents, usage directions, ingredients, country of origin, and manufacturer name.
Estee Lauder promotes its luxury brand name and products through tools such as photo displays at strategic points, editorial coverage, and direct mail promotions. Sales and marketing executives are encouraged to spend time with customers and offer the best possible help. Famous faces for Estee Lauder include Shaun Casey, Elizabeth Hurley, Willow Bay, Anja Rubik, Carolyn Murphy, and Gwyneth Paltrow. Other supermodels associated with this famous brand are Hillary Rhoda in 2008 and Joan Smalls and Liu Wen.
These key elements characterize Estée Lauder’s promotion and marketing strategy:
- Influencer Collaborations: Estée Lauder partners with prominent beauty influencers and celebrities to create buzz and credibility around its products, leveraging their reach on social media platforms.
- Digital Marketing Dominance: The company invests heavily in digital marketing, utilizing social media, email campaigns, and online advertising to engage with its global customer base, showcase product innovations, and offer personalized beauty content.
- In-Store Experiences: Estée Lauder enhances the in-store shopping experience through exclusive events, sampling, and makeup consultations, fostering customer engagement and brand loyalty.
Some Recent Video ads and Print ads of Estee Lauder are:
Liked this post? Check out the complete series on Marketing Mix