MARKETING COMMUNICATIONS

Marketing Communications

Marketing Communications

Executive Summary

The purpose of this situation analysis is to identify internal and external factors that will have an impact on Estee Lauder's integrated marketing communications program (IMC). A situation analysis is necessary to determine the position Estee Lauder is currently occupying, in terms of finances, promotional strategies, product range and brand image. A thorough analysis will help identify any opportunities and potential threats that the company may come across and the effect that these opportunities and threats will have on their new IMC program. Strengths and Weaknesses will also be identified and taken into account as the new IMC program is developed.

As part of the internal analysis Estee Lauder's past promotional mix strategies will be assessed and evaluated. Strengths and weaknesses will also be evaluated in terms of brand image and the products and services they offer were also identified. Estee Lauder's current promotional strategy has a strong focus on advertising in sources of print media within media relevant to its target market such as fashion magazines including, Harper's Bazaar and In Style. Personal Selling also plays a dominant role in Estee Lauder's current IMC strategy. The use of the Internet and Direct marketing has played a minimal role in Estee Lauder's IMC program for Australia. This was identified as a weakness but also as a potential opportunity to expand and use these promotional tools in their future IMC program.

Other weaknesses were based around poor and inappropriate promotional strategies for reaching their intended 'youth' market and consumers in their twenties. Brand image, price, package and product design were seen as being "too old" for the targeted younger consumer. The new IMC program will be focused on overcoming these weaknesses and on reaching the younger audience in the most effective way. Strengths such high levels of brand awareness, trust and a strong position in the market place have been Identified and utilised in the future IMC program.

The external analysis involved gaining insight regarding customers and competitors. A pilot study was conducted among 18-25 year olds regarding their perceptions and experiences with Estee Lauder in order to develop a more in-depth analysis of Estee Lauder's customer base amongst young Australian females. Competitor Analysis required thorough research into the strategies and positions of Estee Lauder competitors in the market place. Major competitors included Loreal and Revlon, their strengths and weaknesses were identified and will be considered during the development of Estee Lauders new positioning strategy.

Although a company has little or no control over their external environment an effective marketing communication strategy will anticipate such conditions and respond to them sufficiently. Estee Lauder needs to consider socio-cultural forces such as consumers increasing concern regarding animal testing among other environmental and social issues. They must also be aware of the adverse affects on the IMC program that will occur if any social expectation are breached or if any legal or political regulations are breached. The environmental analysis also identifies the opportunity for growth due to the trend in overall retail ...