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The Estee Lauder Companies Inc. is a marketer and manufacturer of makeup, skin care, hair care, and fragrance products. Estee Lauder’s products are distributed in more than 150 countries, and the number of product names comprises Estee Lauder, Clinique, Aramis, Origins, Bobbi Brown, M.A.C, Aveda and La Mer. It is a universal licensee for cosmetics and fragrances sold under such names as Donna Karan, Tommy Hilfiger, Michael Kors, Coach and Tom Ford. It distributes its products through limited sales channels to satisfy the images linked with its products. These channels comprise more than 30,000 points of distribution, consisting of specialty retailers, upscale department stores, pharmacies, upscale perfumeries, spas, and prestige salons.

Estee Lauder Perfume Tuberose Gardenia

Tuberose and gardenia perfume is a product of complex white florals wrapped in a beautiful green vanilla rotation. It is a premium superior air freshening perfume that adds designer trace to the entire room. The sole 2-step activity ensures that bad smells are eliminated swiftly and entirely. The initial action utilizes a soy focused bad smell-neutralizing ingredient to eliminate an existing bad smell swiftly, while the unpleasant and stale bad smells are being removed. The second activity is adding a subtle burst of perfumed cleanness to the air (Bradley, 2007).

Marketing Mix

When marketing the product, the firms require creating an appropriate mix of:

  • selling at the best price

  • the correct product

  • using the most appropriate promotion

  • selling in the best place

To make the appropriate marketing mix, enterprise has to achieve the subsequent conditions:

Market Strategy

  1. Product

Estee Lauder presents the fancy and luxurious products for satisfaction of all consumers’ needs and also for the profitability of the business. Therefore, the prosperity of a company depends on the quality of the product.

  1. Price

Estee Lauder offers a wide variety of luxurious beauty products, and it intends to satisfy all customers’ needs. The prices are reasonable and vary depending on the consumer’s desires. There are essential products, which are relatively cheap. Meanwhile, Estee Lauder produces luxurious beauty products for high-income women, as well.

  1. Place

With online shopping at the Estee Lauder’s website, the customers are capable of receiving all their goods to be delivered to their homes, or even to their doorsteps, straight from the Estee Lauder Beauty shop. The customers can receive all the information concerning the products that they may want to buy from the official website of the Estee Lauder Companies Inc. and the stores. They can find out all the delivery charges and the delivery time; for example, it indicates that the customers should fill out the chosen beauty products information correctly (Wilson, 2006).

  1. Distribution Channels

Estee Lauder will be distributed through two channels: online (website) and offline (distributor, department stores in Longview and Texas, with 72% of sales). When the products leave the manufacturer, they are directed to the Estee Lauder office, where personnel define a retail price for items, and then deliver them to the department stores. When a customer buys a product online, the price stays the same as in the shops. Consumer can receive any information he/she needs. The website will be secured, and the buyers will be capable of paying with a credit card (Visa or Master card) without any risk (Bradley, 2007).

  1. Promotion

Promotion in Estee Lauder is one of the essential elements in the marketing program of the company, since it can communicate all the marketing strategy decisions. These promotions can be done through advertisement in different media for creating brand awareness among its loyal customers. The promotion mix elements that are mainly used by Estee Lauder Beauty shop include personal selling, publicity and direct marketing, sales promotion and advertising (Gerald, 2004).

Selling Strategy

Our selling strategy will be extremely simple and satisfy all the customers. This is one of our selling strategy tools in the developing of product awareness for high and middle-income women and their families. We are confident that women will enjoy and find it fun wearing luxurious beauty products for the important occasions in their lives. We believe that when a customer leaves our shop satisfied, he/she will bring a new customer, and this will broadcast our business name to the public in support of the quality of our products (Wilson, 2006).

The primary goals of the selling strategy of Estee Lauder are to attain full growth potential, acquire new customers and retain the old and existing customers. We will use some advertising campaigns through the Internet and the media.

The selling strategy that Estee Lauder will use includes the following:

  1. Punch Cards: After buying the beauty products for five times in the beauty shop, a customer will receive a 50% bonus on the next 3 beauty products that he/she purchases. This method of rewarding will show an appreciation for choosing our beauty shop. Moreover, it may help bring new customers (Gerald, 2004).
  2. Prioritizing Customers Experiences: If the client is not satisfied with the shopping experience, there is no doubt that the client will not visit such beauty shop again. All the employees in Estee Lauder are well trained in customer service to be capable of handling all the problems that may appear. They will try to create a positive impression from the shopping. As a result, the customer might want to come back to the beauty shop again.
  3. Special Bonus Programs: A bonus program will increase the number of customers through its special deal. This is where a customer who purchases more than five beauty products will be awarded a 10% bonus on the total cost of the beauty products bought. This will escalate the buying power of the customers since they will be motivated to buy more beauty products from our store (Finlay, 2000).

Implementation Strategy

  • Overall Strategy

The strategies are the tools that are used for achieving the goals. Estee Lauder will evaluate the suitability of the company’s sales using two strategies: (a) the replacement strategy, which would determine if the beauty products are suitable for direct sale; (b) or the complementary strategy, which could help determine if the beauty products are unsuitable for direct sales. This would lead to the need of the business to analyze its target market through market segmentation, where the Estee Lauder has identified the groups of middle and high-income women in the target group. Therefore, the business might be able to provide different beauty products according to the needs of all the groups, to enhance customer satisfaction and also increase the direct sales of the company (Colander, 2004).

These market segments in Estee Lauder will be analyzed for the purpose of determining the market value of the enterprise. The future projections of the future market share of the segments, all the unmet needs among the segments, and the market shares of the close competitors of the company will be investigated. The online customer segmentation will enable the company to move to greater heights, as it will ensure better client satisfaction. What is more, we will be able to know who our customers are, how their needs are changing, how we can target the market segments, how we can be able to increase our value, and how we can be able to come first through market positioning. This can influence the customer and create a positive perception of the beauty products we offer in the market (Wilson, 2006).

There would be strategies aimed at focusing on new marketing communications since the business has to communicate effectively with all its customers, to be able to reach as many customers as possible. This communication will be done through the use of the new digital media and the social media, which includes the use of websites, mobile commerce, and TV among other new digital technologies (Finlay, 2000).

  • Implementation

The implementation of a business plan is particularly essential to business. Therefore, for the project to be able to produce desired results, it has to be widely accepted by the residents, during the first year of operation of the business (Harvard Business School, 2007).

The goals of Estee Lauder are to improve its customer satisfaction and to reduce its functioning expenses, including the administrative and office expenses. If Estee Lauder can achieve its goals, it will be able to meet its primary objective. The primary objective is to attain a competitive advantage, which will make the business achieve industry returns that are above average (West & Essam, 2010).

Control Plan

This is the measurement and evaluation of whether we can reach the goal. This will be done through the utilization of:

  1. Customer Feedback Monitoring

This can help in monitoring the customer satisfaction and the performance of the channel through the use of new digital media (websites and other traditional channels). This shows if the customers’ needs are met, the number of complaints from the customers decreases. Meanwhile, the number of comments will increase in numbers, which could symbolize the growth in the total sales of the company (Bradley, 2007).

  1. Target Market Sales

The total sales of our business can be measured by the number of the total units sold. This will be achieved through the use of market surveys. The actual sales from the targeted market are compared. Afterward, they are compared to the projections of the marketing plan, to determine if there are any changes that could require particular attention (Gerald, 2004). For example, Estee Lauder targets, all the women who are over 18 years with no upper limit. The market sales would be monitored for that particular target group. If the realized sales are small, it means that there is a need for further research. One would search the reasons why the target group is not positively responding to the business marketing (Colander, 2004).

  1. Budgeting

Budgeting in marketing is a balance, which exists between the revenue that is created by the marketing plan and the costs that are incurred in the commercialization of the business products, such as advertising. Estee Lauder will monitor all these costs for being able to minimize the spending and increase the profitability of the enterprise. Thus, when the beauty shop can maintain a budget, it will be particularly easy to come up with the ways to cut down the spending (Kotler & Kelvin, 2006).

  1. Market Share

The market share of Estee Lauder will be a percentage of all the consumer sales, which will be dominated. With the constant viewing of the consumer patterns, the beauty shop will be able to determine its market share in the industry (Finlay, 2000). This is crucial in monitoring the progress of our business plan with one of the goals of the company is to increase the market share of the enterprise. Hence, the beauty shop has to take into consideration the consumer tastes and preferences (West & Essam, 2010).

External Environmental Factor

Every firm has both external and internal factors that contribute to its failure and success. External environment refers to outside factors affecting the business, but the business has no control over such factors as political, technological, economic and legal. PESTLE is a strategy that analyzes the environmental factors affecting business. The framework was expanded by Johnson et al. PESTLE denotes political, economic, social, technological, environmental and legal factors. PESTEL framework is used to analyze aspects that affect a business, but are outside the company control.

Advantages of PESTEL: It helps the management to understand aspects that are of their control and, therefore, take appropriate measures to cope with the effects of these aspects. This helps the business to acquire insurance so that the owner can be compensated in case the worst happens (Aaker, 2004).

Disadvantages of PESTEL: PESTEL analysis does not offer a solution to possible adverse impacts of factors beyond the organization’s control. In addition, PESTEL analysis does not provide accurate results since the factors are out of the organization’s control (Kotler & Kelvin, 2006).

Political forces are the occurrences that result from the political consistency or instability of the country. These include such events as tribal or racial violence on the ground of political aspirants. For instance, tribal crashes can make customers of a particular tribe fear visiting the place if it does not belong to their tribesman. This reduces the profit and adversely affects the business (Colander, 2004).

Economic forces include the things that influence the company as a result of economic fluctuations. These include inflation and balance of payment. For instance, inflation causes the rise of sugar prices. Consequently, the beauty shop is expected to raise the price of the drinks containing sugar. This price increase is likely to affect the profit since customers will reduce.

Social forces are the factors such as a social environment in that the company is placed, the age of the population living in that particular environment, and the ratio of males to females. For instance, the beauty shop cannot control the people in the area. It can only handle the available population (West & Essam, 2010).

Technological forces include the evolution of computerized office work and level of qualification and skills of management. For example, the beauty shop has no control in the rate of computer evolution, hence suffer obsolesce of the machines they have been using.

Environment forces include natural calamities such as earthquakes, tsunami, and floods. For example, in case of occurrence of natural hazards the beauty shop will suffer loss due to destruction of property.

Legal forces are the law requirement procedures that the government demands from the company. For instance, the beauty shop is affected on what to sell by the government regulations on consumable products.

In conclusion, external factors refer to the classification of the macro-environmental factors that influence the running of the business. Analysis of the external factors is done using the PESTEL framework.