MANG 508

STRATEGIC PLANNING &

MANAGEMENT

A CASE STUDY PRESENTATION

Gersan Ramirez Menor
Nhazra Jainuddin Omar Merlyn Capoquian Tayo
Heide Casilang Pasco Ma. Kharen Aguila Vidad
 Objective:
To conduct a Strategic Audit on Estee Lauder Companies, Inc.

No. Topics Presented By

1 Background of the Company Nhazra Jainuddin Omar

Mission & Vision Statements and Products

2 Heide Casilang Pasco
Introduction

3 Internal and External Analysis Gersan Ramirez Menor

4 Strategy Formulation and Implementation Ma. Kharen Aguila Vidad

5 Strategy Evaluation and Conclusion Merlyn Capoquian Tayo

Case Study Objective & Outline ESTEE

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A Comprehensive Background of the Estee Lauder Companies, Inc.

ESTEE
LAUDER
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 Quick Facts
NAME
Estée Lauder
FULL NAME
Josephine Esther Mentzer
BIRTH DATE
July 1, 1908
DEATH DATE
April 24, 2004
EDUCATION
Newtown High School
PLACE OF BIRTH
Queens, New York
PLACE OF DEATH
New York, New York

Who was Estee Lauder? ESTEE

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I was a woman with a
mission and single-minded in the
pursuit of my dream.
~ Estee Lauder

ESTEE
LAUDER
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 1920
❖ Estée (Josephine Esther Mentzer) together with his uncle, John
Schotz, a Hungarian chemist, developed a face cream (Super-Rich
All Purpose Crème) – the miracle cream. They gave samples to her
customers at the Florence Morris Beauty Salon in New York.

1930
❖ Josephine Esther married young, to Joseph Lauter, whose father,
on moving to the United States, had his original family name –
Lauder. The couple decided to re-adopt the original family name
and Esther took the opportunity to nuance her own name.

1939
❖ Estée divorced her husband, but the pair remarried three years
later (1942). Estée continued her uncle’s work and it was a big hit.

History ESTEE
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 1946
❖ The Estée Lauder Cosmetics was founded. Estée and
Joseph Lauder divided responsibilities, playing to their
strengths: Estée led creativity, product development,
and sales, while Joseph managed finance and
operations.
❖ Introducing four original products which she sold in
Manhattan beauty salons, giving free demonstrations
and makeovers.

1947
❖ Determined to have her products available in
only the most elegant stores, Estée convinced
the cosmetics buyer from Saks Fifth Avenue to
place an order – equivalent to $10,000 today.

History ESTEE
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 1951
❖ Estée loved working directly with a customer championed the
irresistible concept of the now-famous “Gift with Purchase” promotion.

❖ Long before subscription boxes are a trend, Estée offered a “personally

selected” product in her “Beauty by the Month” Club. This brilliant
marketing tactic brought customers back to the stores.

1952
“Telephone,
Decades before social media
becomes mainstream, Estée Telegraph, Tell
knew the power of A Woman.”
word-of-mouth

Early Evolution ESTEE

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 1953
❖ Youth-Dew Sensation ~ The Company’s first
important product was Estoderme Youth-Dew
Cream, with an egg in every jar. It stole the
heart of the Harper’s Bazaar’s editor-in-chief
which sealed its success.

❖ An enduring product ~ Youth-Dew became a

sensation and the fledgling start-up cosmetics
company and began its transformation to a
multi-million dollar business, now including
fragrance.

Early Evolution ESTEE

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 1958
❖ Annual sales hit $1 million, and earned leading name in the
American cosmetics industry.
❖ Her son, Leonard - fresh from completing his Columbia MBA,
joined the company.

1960
Exceptional Growth
The 1960s marked a crucial period of growth with the construction of
three manufacturing facilities, overseas expansion and the launch of
two major brands: Aramis – the first men’s prestige fragrance brand
and Clinique – which revolutionized the industry and became one of
the most successful brands in cosmetics history. This role soon
morphed into a separate division within the company, Estée Lauder
International Inc.
.

Global Expansion ESTEE

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 1962
❖ Estée’s first makeup collection debuted, providing a complete package
of products designed for evening wear. The first face of Estée Lauder
was Karen Harris.

1963
❖ Estée Lauder’s second masterpiece was men’s fragrance. Aramis was
launched - a fragrance, a cologne and an after-shave lotion.

1964
❖ Ronald S. Lauder joined Company spending time overseas in Belgium
and Paris. His mastery of several languages was of tremendous value
to the Company.

Modern Business ESTEE

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1965
❖ The Company planned its first manufacturing
facility in Melville, New York, recognized for its
modern architectural design.
❖ Leonard Lauder was encouraging research and
development projects.
❖ The Company also broke ground its first
factory overseas in Oevel, Belgium allowing
international expansion to flourish.
❖ Its second factory overseas was built in
Hampshire, England.
1967
❖ The Lauder family’s first
philanthropic venture was to create
new, improved play areas for children
in New York City’s Central Park.
❖ The elegant 24-kt. gold-plated
Golden Alligator refillable compact
was introduced. There were more
than 1700 compacts in The Estée
Lauder Companies archives until
today.

Modern Business ESTEE

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1968
❖ Clinique revolutionized the beauty industry. Clinique was
launched and lost $3 million in its first seven years; no mean sum
for a company with a $40 million a year turnover.

1969
❖ The Company moved to even more prestigious
headquarters as one of the earliest tenants of the
new GM Building at 767 Fifth Avenue, overlooking
Central Park in New York City.

Modern Business ESTEE

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The 70s
❖ The Company’s advertising and packaging boldly reflected the overall
lifestyle of the 1970s.
❖ Karen Graham was hired to reflect the ideal Estée Lauder woman:
elegant, successful, sensual, and smart for 15 years.

1972
Leonard Lauder displayed
strong leadership skills
and assumed the role of
President.
1977
Estée was recognized for building a successful
influential company from humble beginnings.
Receiving the French Legion of Honor was a
definite high point in her life.

Modern Business ESTEE

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The 80s 1983
❖ Joseph H. Lauder
❖ New product launched and store
passed away. After his
openings became major news events.
death, their sons
Estée published her autobiography
established the Joseph
and was recognized for her great
H. Lauder Institute for
influence on the beauty business.
Management &
International Studies at
the University of
Pennsylvania.

1982
❖ Leonard A. Lauder assumed
the role of Chief Executive
Officer of the Company 10
years after being named
President.

Modern Business ESTEE

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 1985
❖ Estée related her life and start of the Company in “Estée: A Success Story,”
dedicated “To Joe, my love, my life, my perfect balance.”
❖ Launched of their “Beautiful” was a blockbuster that became another
long-term success.
1988
1986 ❖ Estee welcomed the
❖ William P. Lauder (Estée’s First Lady of Russia
grandson) joined the Company as (Raisa Gorbachev) to
regional Marketing Director for New York as the
Clinique U.S.A. in New York. His latter expresses her
mindset was to continue his dream of opening a
family’s strong leadership into the shop in Moscow.
future.
1989
Estée was added to the Wall Street Journal’s list of
business influencers of the century after the
Company surpassed $1 billion in annual sales.

Modern Business ESTEE

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The 90s
Brand acquisitions and licensing agreements contributed to explosive growth as the
Company transformed from a family-owned business to a publicly-traded,
family-controlled organization. Estée’s granddaughters joined the Company.

1992
Aerin Lauder, granddaughter of Estée and Joseph, joined as a member of the
Prescriptives marketing team, ultimately becoming Style and Image Director for the
Estée Lauder brand.

A breast cancer survivor herself, Evelyn Lauder and

SELF Magazine’s Editor-in-Chief Alexandra Penney
created the now-ubiquitous Pink Ribbon.

Modern Business ESTEE

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1993
The Estée Lauder and Clinique brands
launched in Shanghai.

The Company’s bold new fragrance

licensing division signed its first
agreement with fashion designer
Tommy Hilfiger and DKNY for global
distribution.

Modern Business ESTEE

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 1995
The Lauder family celebrated going public on the New York
Stock Exchange on November 17, at $26.00 a share ($6.50
post-splits). By day’s end the stock saw a 33% increase.

The company started brand acquisition : Bobbi Brown, La Mer,

Aveda and Jo Malone.

1996
Under William Lauder’s leadership and ahead of the curve, the
Company launched its first e-commerce sites for Clinique and
Bobbi Brown. The ELC Online division for all brands was
created in 1999.

Jane Lauder, daughter of Ronald and Jo Carole, joined Clinique.

As of 2020, Jane was Executive Vice President, Enterprise
Marketing and Chief Data Officer, The Estée Lauder
Companies.

Modern Business ESTEE

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 2000s

Leadership of the business transitions

to William Lauder, and was then shared
with Fabrizio Freda — brought in to
fortify operations and provide strategic
direction as the public company
evolved.

2003
An exclusive global licensing agreement
was signed with celebrated American
designer Michael Kors for fragrances
reflecting jet set lifestyle.

Modern Business ESTEE

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 2004
Estée Lauder passed away.
Estée Lauder believed that every woman can be beautiful. By
the time she passed away at the age of 95, this simple notion
has changed the face of the beauty business.
Estée’s legacy included products and brands she invented, and
a culture of quality, style and unsurpassed customer service
that has made the Estée Lauder Companies the global
cosmetics leader it is today.

Third generation of family leadership evolved.

William Lauder became CEO, championing areas like
digital commerce, citizenship and continuous learning.
Years later he designed and taught a course for MBA
students on decision-making in leadership.

Modern Business ESTEE

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 2005
Designer Tom Ford updated an
Estée Lauder classic with
Youth-Dew Amber Nude and the
Company signed with him to
develop and distribute fragrances
and cosmetics under the Tom Ford
Beauty brand.
2008
Fabrizio Freda was hired as President and Chief
Operating Officer. The strategically-focused,
financially-disciplined leader brought a wealth of
experience in the consumer products arena. He was
named CEO in 2009.
2009
William Lauder became Executive Chairman and Chairman of the
Board; Aerin Lauder joined the Board of Directors in 2004, and Jane
Lauder in 2009, keeping the family at the heart of the Company.

Company Structure ESTEE

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 The 2010s
The Estée Lauder Companies was the only company focused solely on
prestige makeup, skin care, fragrance and hair care with a diverse
portfolio of 25+ exceptional brands.

Breast Cancer Awareness Campaign earned a Guinness World of

Record for “Most Landmarks Illuminated For A Cause in 24 Hours”

The Company acquired Hollywood-based Smashbox,

founded by the great grandsons of makeup legend
Max Factor.

Recent Efforts ESTEE

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 2010
Clinique continued to innovate with Even Better Clinical Dark Spot
Corrector — a breakthrough product that rivals a prescription for treating
uneven skin tone. It quickly became the brand’s bestselling product.

2011
Evelyn Lauder left a legacy.

A visionary and true leader, Evelyn Lauder passed

away from complications of non-genetic ovarian
cancer. She was perhaps best known to the public for
her work in bringing global awareness to women’s
health.

Recent Efforts ESTEE

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 2012
Aerin Lauder introduced AERIN Beauty, a luxury
lifestyle beauty and fragrance brand based on the
premise that living beautifully should be effortless.
The brand developed luxurious makeup, fragrance
and body products.

Joining a rarefied list of major businesses, the

Company’s dedication to prestige beauty resulted in
another record year, exceeding $10 billion in net sales
for the first time.

Recent Efforts ESTEE

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 2015
2012
A revenue milestone The Company bolstered its base in London by
Joining a rarefied list of major businesses, the Company’s
gathering employees and education facilities under
dedication to prestige beauty results in another record year,roof at One Fitzroy — a unique workplace
one
exceeding $10 billion in net sales for the first time. designed to draw in the best young new talent.

2017
After 25 years, with more than $70 million raised to advance
pioneering research, education and medical services. The
Breast Cancer Campaign updated its name by removing the
word “Awareness,” and renewing its pledge to create a breast
cancer-free world.

Recent Efforts ESTEE

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 2012 2019
A revenue milestone
Joining a rarefied list
The company of major businesses,
completed the Company’s
its acquisition of Dr. Jart+, a
dedication to prestige
Seoul-based, beauty
global results
skin in another
care companyrecord and
year, was
exceeding
renowned $10 billion
for in itsnetoutstanding
sales for the firstand
time.fast-moving
innovation pipeline and rapid speed-to-market
capabilities.

2020
The company achieved Net Zero emissions and sourced
100% renewable electricity globally for all direct
operations. Building upon this achievement, the
company has also met its goal to set science-based
emissions reduction targets for its direct operations
and value chain, positioning the company to take even
more decisive action against climate change in the
coming decade.

Recent Efforts ESTEE

LAUDER
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 2012
A revenue milestone
Joining a rarefied list of major businesses, the Company’s
dedication to prestige beauty results in another record year,
exceeding $10 billion in net sales for the first time.

Recent Efforts ESTEE

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 2012 2021 onwards
A revenue milestone
Joining a rarefied
Buildinglist on
of major businesses,
a rich heritagetheandCompany’s
diverse portfolio of
dedicationexceptional
to prestige beauty results in another record
brands — The Estée Lauder year, Companies
exceeding continues
$10 billion intonet salesthe
push forboundaries
the first time.in prestige beauty.

The Future of Beauty ESTEE

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 2012
A revenue milestone
Joining a rarefied list of major businesses, the Company’s
dedication to prestige beauty results in another record year,
exceeding $10 billion in net sales for the first time.

❑ Consumer Contact "I didn't get here by dreaming or

thinking about it.
❑ Innovation I got here by doing it.“

❑ Brand Management -Estee Lauder

The Company’s DNA ESTEE

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 Our mission will always be to bring the
best to everyone we touch and to
support the environment in which we
live. As the namesake brand of The
Estée Lauder Companies, here is what
we are doing today and tomorrow for a
more sustainable future.

The Estee Mission ESTEE

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The global leader in prestige beauty:
A WELL-DIVERSIFIED,
BRAND-BUILDING POWERHOUSE
OF UNRIVALED CREATIVITY AND
INNOVATION

The Estee Vision ESTEE

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 “Our culture is respectful of our roots and inspired to
envision the future.”
“The company operates like a family.
Families are, in fact the most caring and demanding of
environments. Our culture is a unique combination of
nurturing and challenging, respectful of our roots and
inspired to envision the future.”

Fabrizio Freda
President & CEO

Culture & Values ESTEE

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The Estee Lauder culture is often described as a rare mix
of family values with a high-performing public company.
This unique mix translates into a caring, collaborative and
compassionate workplace that is also demanding – with a
competitive spirit that is a powerful source of motivation.
Above all else, there is a focus on long-term, sustainable
growth which engenders loyalty and commitment from
internal and external stakeholders.

Culture & Values ESTEE

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Estee Lauder products are sold in over 150 countries and
territories under the following brand names:
Estee Lauder, AERIN, Aramis, Aveda, BECCA, Bobbi Brown,
Bumble and bumble, By Kilian, Clinique, Darphin, Donna
Karan, DKNY, Dr. Jart+, Editions de Parfums Frédéric
Malle, Ermenegildo Zegna, GLAMGLOW, Jo Malone
London, Kiton, La Mer, Lab Series, Le Labo, M•A•C,
Michael Kors, Origins, Prescriptives, RODIN olio lusso,
Smashbox, Tom Ford, Tommy Hilfiger and Too Faced

Estee Lauder Brands ESTEE

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 Estee Lauder Brand Icons

Estee Lauder ESTEE

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 A curated collection of fragrances
and beauty products inspired by her
enduring love of flowers and
artisanal discoveries from around
the world.

AERIN ESTEE
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 Aramis Fragrance continues to be a
defining pillar of The Estée Lauder
Companies as an industry leader in
the men’s fragrance and grooming
category which embodies classic
masculinity and sophistication that
transcend time.

Aramis Fragrance ESTEE

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 Aveda is the leading
high-performance, plant-based
hair and skin care brand, trusted
by millions of guests and
thousands of artists and salons
around the world

Aveda ESTEE
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 BECCA Cosmetics was founded in
Perth, Australia with a mission to
create effortlessly glowing
complexion products for every skin
type and color.
Every product we make has the
same goal: to help you create the
same glow on the outside as the one
that emanates from the inside.

BECCA Cosmetics ESTEE

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 Bobbi Brown Cosmetics is a global
prestige beauty brand that
empowers women to embrace and
enhance their individual beauty.
The brand offers universally
flattering products created with
uncompromising quality and an
intuitive sense of what every
woman wants

Bobbie Brown Cosmetics ESTEE

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 Bumble and bumble began as an
NYC salon in 1977, where we clipped,
colored, and styled our way into
prominence – with a strong design
aesthetic and extraordinary
products with deeply, passionately,
and fearlessly dedicated to the craft
of hair.

Bumble and bumble ESTEE

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 Clinique’s mission has always been
to provide the safest, most effective
formulas in simple routines that
bring remarkable results. No
parabens. No phthalates. No
fragrance. Just #HappySkin.

Clinique ESTEE
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 DARPHIN was founded in 1958 by
Pierre Darphin, a master botanist
with a lifelong dedication to the
pursuit of scientifically-proven
botanical efficacy.
Its pioneering research lead the field
in high-performing, botanical-based
skin care solutions.

Darphin ESTEE
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 DKNY fragrances reflect Donna
Karan’s love of New York and her
desire to create a brand designed
for the truly modern woman on the
go with a multifaceted lifestyle.
DKNY Fragrance celebrates
individuality with a playful spirit.

DKNY ESTEE
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 Donna Karan Cosmetics is a
reflection of Donna’s mission to
deliver what women need, want and
desire. It brings out the inner beauty
and power that all women possess.

Donna Karan Cosmetics ESTEE

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 Dr.Jart+ joins science and art to
develop innovative products that
deliver results. Founded in Korea in
2004, Dr.Jart+ pioneered the
invention of the BB Cream, setting
the standard for multifunctional
beauty.

Dr.Jart+ ESTEE
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 Frédéric Malle introduced Editions
de Parfums in 2000, as a completely
original concept whereby the
world’s greatest noses composed
exclusive, creative fragrances that
would be sold under their creators'
names.

Frederic Malle Editions de Parfum ESTEE

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 As a leading luxury menswear brand,
Ermenegildo Zegna is one of the most
renowned businesses in Italy with a
product range spanning fabric and
clothing to accessories and fragrance.
Zegna fashion underscores a man’s
elegance and style, while it’s fragrance
accentuates his masculine aura with
alluring essence.

Ermenegildo Zegna ESTEE

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Instant skincare for everyone who
wants to rock a glow. Products that
overload your senses and deliver
immediate, transformative results.
We started a revolution by
promising glowing skin in 10
minutes, clearer skin in 20, refined
pores in 60 seconds.

GLAMGLOW ESTEE
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 Timeless and elegant but always
infused with a charming dash of wit
and whimsy. From the start, their
colognes have been revolutionary in
their elegant simplicity and
pioneering in their use of ingredients.

Jo Malone ESTEE
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 In the pursuit of ultimate luxury,
KILIAN was founded from the dark
cognac cellars of his childhood
memories, to elegant Parisian evenings
where desires roam free

Kilian ESTEE
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 It all began when Dr. Max Huber, an
aerospace physicist, suffered burns in a lab
accident and set out to create his own
destiny.
6,000 experiments and 12 years of
searching led to the epiphany of a lifetime
– a fermentation process that transformed
sea kelp and other pure ingredients into
the miracle that would help transform the
look of his skin.

La Mer ESTEE
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 Lab Series
As one of the original men's-only
skin care brands, we understand the
difference between men's and
women's skin. Each and every one of
our cutting-edge formulas is tried,
tested and tailored to suit the
specific needs of guys across the
globe.

Lab Series ESTEE

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 In our labs, every fragrance is freshly
hand-blended and each label is
personalized.
We also offer genderless body formulas
and a grooming line.

Le Labo ESTEE
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Part of the Estée Lauder Companies
since 1994, M·A·C is sold today in
over 120 countries and territories
around the world.

MAC ESTEE
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 The Michael Kors Beauty collection
embodies the effortless luxury that
defines the brand. Timeless and always
chic, Michael Kors Beauty evokes
glamour and desire.

Michael Kors ESTEE

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 Origins has valued the well-being of
people and the planet. Our products are
mindfully formulated with the
highest-quality, naturally-derived
ingredients, non-toxic-to-skin
alternatives and advanced science.
And we are 100% vegetarian.

Origins ESTEE
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 Our precious yet powerful luxury oils deliver a
wealth of nourishing benefits. Expertly
sourced from around the world and artisanally
crafted so you can count on uncompromising
quality and consistency with every drop.
And you will feel an overwhelming sense of
well-being.

RODIN olio lusso ESTEE

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 But mostly, we love sharing our makeup
secrets with you. Why? Because creativity
and collaboration are at the core of our DNA.
The only brand born out of a legendary
photo studio — Smashbox Studios in Los
Angeles — where major photographers,
celebrities and makeup artists converge to
create iconic images every day.

Smashbox Los Angeles ESTEE

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 Tom Ford Beauty is a covetable
collection of cosmetics and
fragrances, shaped with Tom Ford’s
singular vision of modern glamour and
crafted with the ultimate in quality
and luxury.

Tom Ford Beauty ESTEE

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 Tommy Hilfiger Fragrances aim to
capture the scent of the new
American style, empowering those
who are working every day to make
their dreams happen.

Tommy Hillfiger ESTEE

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 At Too Faced, makeup is power,
giving women the freedom to express
themselves and the confidence to
take on the world. Makeup is so much
more than a little color on your face.
It's a mood booster and a powerful
ally.

Too Faced ESTEE

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 STRENGTH
Pioneer in creating new innovation
products coupled with creative
marketing and packaging technique
Icon of reputable upscale cosmetic
products with quality, brand
imagery, creative and innovative for
more than 60 years
Great leadership and management
and well succession planning
Worldwide research & development
facilities creating products that cater
to consumers specific markets and
regions
Talented and dedicated workforce
SWOT Analysis
WEAKNESS
Low Revenue and Net Income
(YTD/YTD) 2019 – 2020 of -61.79%
Low inventory turnover of 1.75
Net profit margin only recorded
4.87%
Concentrated on a single
international image
OPPORTUNITY
International expansion, a well
known & reputable brand easier to
expand and exploit internationally
Global warming and environmental
pollution effects, lead to more
demand on clinical and preventive
cosmetics products
World aging population will multiply
2.5x in the next 40 years
Acquisition of local and international
cosmetic products
Increase in online purchase trends.
THREAT
Aggressive competition from the
competitors who targets the same
market segment
Internet security threat on its
e-commerce, consumer database
and company website
Rise in energy, raw materials and IT
systems and infrastructure cost and
new product testing technique cost
Change of spending atmosphere and
pattern of consumers towards luxury
goods
ESTEE
LAUDER
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 KEY INTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE

STRENGTH

Icon of reputable upscale cosmetic products with quality, brand imagery, creative and innovative for more than 60 years 0.08 4 0.32

Great leadership and management and well succession planning 0.12 4 0.48

Talented and dedicated workforce 0.10 3 0.30

Pioneer in creating new innovation products coupled with creative marketing and packaging technique 0.10 3 0.30

Worldwide research & development facilities creating products that cater to consumers specific markets and regions 0.12 4 0.48

WEAKNESS

Low Revenue and Net Income (YTD/YTD) 2019 – 2020 of -61.79% 0.14 1 0.14

Low inventory turnover of 1.75 0.14 1 0.14

Concentrated on a single international image 0.08 2 0.16

Net profit margin only recorded 4.87% 0.12 1 0.12

TOTAL 1.0 2.44

ESTEE
Internal Factor Evaluation Matrix LAUDER
COMPANIES
 KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE

OPPORTUNITIES

International expansion, a well known & reputable brand easier to expand and exploit internationally 0.12 4 0.48

Global warming and environmental pollution effects, lead to more demand on clinical and preventive cosmetics products 0.08 3 0.24

World aging population will multiply 2.5x in the next 40 years 0.08 3 0.24

Increase in online purchase trends. 0.12 3 0.36

Acquisition of local and international cosmetic products 0.10 3 0.30

THREATS

Aggressive competition from the competitors who targets the same market segment 0.14 3 0.42

Change of spending atmosphere and pattern of consumers towards luxury goods 0.12 3 0.36

Rise in energy, raw materials and IT systems and infrastructure cost and new product testing technique cost 0.14 3 0.42

Internet security threat on its e-commerce, consumer database and company website. 0.10 2 0.20

TOTAL 1.0 3.02

ESTEE
External Factor Evaluation Matrix LAUDER
COMPANIES
 ESTEE LAUDER L’OREAL REVLON
CRITICAL SUCCESS FACTOR
WEIGHT
(INTERNAL)
RATING SCORE RATING SCORE RATING SCORE

Market Share 0.17 3 0.51 4 0.68 3 0.51

Management 0.07 4 0.28 3 0.21 3 0.21

Consumer Loyalty 0.08 4 0.32 4 0.32 3 0.24

Financial Position 0.07 1 0.07 2 0.14 1 0.07

Product Diversity 0.12 2 0.24 2 0.24 2 0.24

Competitive Profile Matrix ESTEE

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 ESTEE LAUDER L’OREAL REVLON
CRITICAL SUCCESS FACTOR
WEIGHT
(EXTERNAL)
RATING SCORE RATING SCORE RATING SCORE

Global Expansion 0.16 4 0.64 3 0.48 3 0.48

Distribution 0.10 3 0.30 4 0.40 3 0.30

Website Design 0.07 4 0.28 3 0.21 3 0.21

Customer Service 0.08 2 0.16 2 0.16 2 0.16

Price Competitiveness 0.08 2 0.16 2 0.16 2 0.16

TOTAL 1.0 2.96 3.00 2.58

Competitive Profile Matrix ESTEE

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 SO Strategies
❖ Continue to create innovative and quality cosmetic products and
distribute or sales via the effective marketing way.
❖ Consolidate and conquer the existing oversea markets and exploit other
new potential markets.
❖ Enhance existing internet market sales and gain public confidence on the
safety of internet transactions
❖ Worldwide R&D center to match the local market needs and aspirations
❖ Ongoing social activities will up lift the Companies image

Strategy Formulation ESTEE

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 WO Strategies
❖ Increase the R & D expenditure
❖ Reduce the expenses in Cost of Sales and Operating Cost

Strategy Formulation ESTEE

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 ST Strategies
❖ Continue products revolution and enhancement and diversification
without compromising the quality, packaging, innovative, creativity and
uniqueness
❖ Continue to expand international business into new countries and
localities
❖ Stability and consistency of the management team and talented staffs
ensuring the Companies objectives and policies are in line and moving
forward

Strategy Formulation ESTEE

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 WT Strategies
❖ Effort to reduce Companies liabilities conspicuously the long term
liabilities
❖ Reduce the company operational cost and effectively resources usage in
the cost rising environment

Strategy Formulation ESTEE

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❖ Strengthening the leadership and management
❖ Commitment to racial equity
❖ Product innovations focusing on hero products and franchise
❖ Intense consumer loyalty
❖ Non-GAAP Financial measure

Strategy Formulation ESTEE

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❖ Sales expansion on different platforms
❖ International on product sales
❖ Facility expansion

Strategy Formulation ESTEE

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 Estee Lauder Companies Inc. centers its marketing philosophy on
promoting its high quality products to its loyal consumer base. Let’s
see how Estee Lauder follows the Marketing Mix (4 Ps) Strategy.

Strategy Formulation ESTEE

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 Product
Estee Lauder Companies Inc. provide a wide range of products and
had diversified product portfolio.

✔ Majorly deals in luxury products and product lines include

skin care, hair care make-up and fragrances.
✔ It covers all different types of offering of the brands

Brand acquisitions and licensing agreements contribute to

explosive growth as the Company transforms from a family-owned
business to a publicly-traded, family-controlled organization.

Strategy Formulation ESTEE

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 Place & Distribution
The Estée Lauder Companies sells products in approximately 150
countries and territories.
The company have three main geographic regions: Asia/Pacific; Europe,
the Middle East & Africa; and The Americas. Each region is composed of
one or more affiliates. Today, they have affiliates in 50+ countries and
territories.
However,
✔ Estee Lauder offers limited distribution system to position as a luxury brand
✔ Selectively expanded distribution of products

Strategy Formulation ESTEE

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 Price
The Estée Lauder Companies has a premium branding in its target
audience mind. They always projected itself as a premium brand
and provide high-quality products. They targeted affluent class of
women thus perceived to be a luxury brand.

They adopted Premium Pricing Strategy because this portrays

them that they offer value-added products to their customers.

But at the same time, they offer several discounts and gift cards for
retaining customer loyalty.

Strategy Formulation ESTEE

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 Promotion & Advertising
They have taken many steps to promote their brand awareness through
continuous promotion with free samples. They offer a 15% discount to the new
customer and had launched a new scheme for providing gift cards and coupons.

They helped them create a new customer base and also benefited the existing
customer.

The company promotes its product through designs and uniqueness of stores
and through several media like photo displaying, email marketing, and sales &
marketing executives are advised to connect with the customer as much as
possible.

Strategy Formulation ESTEE

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 Implemented programs on Listening and Learning
❖ New trainings and programs to be rolled out globally
❖ 100% of the Executive Leadership Team completed one on one
trainings as well as team evaluations and support
❖ Launched inclusive Leadership Behaviors and Talent Planning
Program
❖ Organized 35 skill building workshops globally

Strategy Implementation ESTEE

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 Talent and Opportunity
❖ The internal mentorship program “From every Chair” launched on
February 2021 for Executive Director-level Black employees
❖ External recruiting efforts through deepened partnerships with
recruitment firms and national diversity organizations
❖ Launching of “She’s Howard, Own Your Power” aims to recruit
alumnae from Howard University

Strategy Implementation ESTEE

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 Representation
❖ Research and Development and Legal Task Force on Inclusive Beauty
expanded capabilities and testing for inclusive skin tone and ethnicity
❖ Majority of brands develop unique internal councils and long term
strategies in line with their identities and areas of opportunities.

Strategy Implementation ESTEE

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 Working with Suppliers
❖ ELC joined the National Minority Supplier Development Council
(NMSDC) and renewed membership with the Women’s Business
Enterprise National Council (WBENC) to builds connections and
enable new supplier

Strategy Implementation ESTEE

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 Investing in Change
❖ The ELC Charitable Foundation and ELC Good Works, ELC Global
Charitable initiated donations of $5M USD to support external
organizations and non-profit.

Strategy Implementation ESTEE

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 The Breast Cancer Campaign
❖ The Estée Lauder Companies’ iconic brands proudly support their mission to
create a breast cancer-free world and raise funds for the Breast Cancer
Research Foundation® (BCRF).
➢ Raised more than $99 Million globally for lifesaving research, education,
and medical services.Funded
➢ 321 Medical Research Grants through the Breast Cancer Research
Foundation (BCRF). ~ $80 million of total funds raised
➢ Distributed approximately 173 Million pink ribbons at our brands’ beauty
counters worldwide
➢ Supports more than 60 Breast Cancer Organizations around the globe

Strategy Implementation ESTEE

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 Strategy-Evaluation Assessment Matrix
Has the firm
Have major Have major
progressed
changes occurred changes occurred
satisfactorily
Strategy in the firm’s in the firm’s Result
toward achieving
internal strategic external strategic
its stated
position? position?
objective?

Implemented
programs on
Yes No Yes Corrective Actions
Listening and
Learning

Talent and
Yes No Yes Corrective Actions
Opportunity

Representation Yes Yes Yes Corrective Actions

Evaluation ESTEE
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 Strategy-Evaluation Assessment Matrix
Has the firm
Have major Have major
progressed
changes occurred changes occurred
satisfactorily
Strategy in the firm’s in the firm’s Result
toward achieving
internal strategic external strategic
its stated
position? position?
objective?

Working with
Yes Yes Yes Corrective Actions
Suppliers

Investing in
Yes Yes Yes Corrective Actions
Change

The Breast Cancer

Yes Yes Yes Corrective Actions
Campaign

Evaluation ESTEE
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 Mission To bring the best to everyone we touch and to support the environment in which we live.
Purpose Engages in the manufacturing of skin care, make-up, fragrance and hair care products.
Strategic Inclusion, Diversity & The Breast Cancer
Social Impact Sustainability Employee Well-Being
Priorities Equity Campaign

63% Forest-based fiber Employees at the Estee Lauder

$500M Raised to support
Strategic health & rights for all
Results through sales of M.A.C. VIVA
GLAM lip products.
cartons are FSC certified,
100% Net Zero carbon
emissions
84% of Global Workforce is
Female, 48% of U.S.
Workforce is comprised by
minorities
$99M+ Raised by The Breast
Companies are part of a global
Cancer Campaign to fund
family that is caring,
global research, education
compassionate and committed
and medical services to their success.

Strategic Objectives KPIs Targets Projects

Increase By 2020, achieve Net Zero

Financial Revenue
Citizenship Sustainability
carbon emissions
● Social
Investments
Commitments
● Global Reporting Each brand will focus on &
Social Inclusive & ● Employee
Customer High-Touch Initiative (GRI support at least one social or
Approach Investments Diverse environmental cause by 2025 Engagement
Index) Standards
Commitments
● Fiscal 2020
By 2025, 75-100% of ● Environmental
Research & Creativity & Brand Product Packaging Citizenship &
Internal Processes Development Innovation Development Development Sustainability
packaging will be Responsibility
recyclable Commitments
Report
● Inclusion,
Organizational Continuous E-commerce
Sustainable By 2020, 100% of Diversity & Equity
Learning Sourcing employees worldwide will Commitments
Capacity have access to training

Estee Lauder’s Balanced Scorecard ESTEE

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 Child labor Controversy
❖ In 2001, it was reported that children were discovered working in a
factory in Cambridge, New York, making products for Origins, one of
Estee Lauder's natural products brands. The contracted company
was Common Sense Natural Soap & Bodycare, owned by a group led
by cult leader Yoneq Gene Spriggs.
❖ Estee Lauder said it immediately moved to terminate the contract
with the manufacturer it had been in business with for 5 years,
stating it was totally unaware prior to the initial inspection.
❖ Estee Lauder Companies began working with Save the Childhood
Movement

Contingency Planning ESTEE

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Conclusion ESTEE
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 ❖ In our view, Estee Lauder has been executing well on its
strategies, and we think it’s brands’ prestige positioning will
serve it well in international markets as well as in the U.S.

❖ Brand acquisitions and licensing agreements contribute to

explosive growth as the Company transforms from a
family-owned business to a publicly-traded, family-controlled
organization.

❖ Estee Lauder Companies still aggressively expands and explores

new market and opportunities either in local or internationally.
The brands portfolio will continue to expand via own R&D
results or via acquisition of other brands and products.

Conclusion ESTEE
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 ❖ Although Estee Lauder Companies is principally managed and
owned by the Lauder’s family, the management has never taken
out any prevention or restriction for talented people to join and
contribute to their company. Their talents and contributions are
being appreciated and acknowledged, thus better opportunities
and challenges are awaiting them.

❖ The Estée Lauder Companies Contributes to Global COVID-19

Relief Support

❖ The initiatives on Social Investments, Employee Engagement,

Environmental Responsibility and Inclusion, Diversity & Equity
that were successfully implemented by the Company had earned
them prestigious recognitions and awards.

Conclusion ESTEE
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Conclusion ESTEE
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 ❖ The highlights of their Fiscal 2020 Citizenship and Sustainability
Report are the Goals and Progress on the focus areas such as:
➢ Energy and Emissions
➢ Waste
➢ Employee Safety
➢ Responsible Sourcing
➢ Packaging
➢ Ingredient Transparency
➢ Learning & Development
➢ Social Investments
➢ Employee Engagement

Conclusion ESTEE
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 “My company is alive
with a dauntless spirit
of its own, and my
children and
grandchildren are
here to cheer it on.”

Estēe Lauder

Estee’s Lasting Legacy ESTEE

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 ❖ https://www.elcompanies.com/en
❖ https://media.elcompanies.com/files/e/estee-lauder-comp
anies/universal/investors/investor-resources/toolkit/form-
10k-200820-a.pdf?_gl=1*14i0hcw*_ga*MzY0MDMyOTA5LjE2
MjM0OTAxMzA.*_ga_V9QZ4PSDRY*MTYyMzYwNDc0OC4yLj
EuMTYyMzYwNjk1Mi4yNQ..
❖ https://media.elcompanies.com/files/e/estee-lauder-comp
anies/universal/our-commitments/2020-cs-report/elc-fy20
-citizenship-sustainability-report.pdf?_gl=1*dlqwee*_ga*MT
A2NDU1MDM2Mi4xNjIyNjEzMzY3*_ga_V9QZ4PSDRY*MTYy
Mzk2NTc0NC4xOC4xLjE2MjM5NjcxODUuNDE.
❖ David, Fred R., Strategic Management Concepts and Cases
13th Edition

References ESTEE
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Thank you