MARKETING

Estee Lauder Company

Estee Lauder Company

Introduction

Estee Lauder is a renowned manufacturer of skincare, makeup, fragrances and hair products. The company enjoys global presence along with a diverse portfolio of products. This has also reduced the amount of risk associated for the company. Currently, the market of cosmetic product has been facing stiff competition with a number of rivals entering the segment. This has affected the overall market share of Estee Lauder (Lauder & Lauder, 2009, pp. 99).

Opportunities and Threat for Estee Lauder

With the Chinese economy booming, it presents the company with an opportunity to tap the vast potential of the cosmetic market. The advent of social media and online retail also provides the company with an opportunity to reach to potential customers (Scranton, 2001, pp. 67). Emerging economies such as India and China possess massive potential for the cosmetic segment. This is amplified by the counterfeit products available in the market that damage the company's reputation. Also, the cost of labor in the United States and Europe has increased the cost of production (Lauder, 1985, pp. 101).

Competition and Their Positioning

The major competitors of Estee Lauder include;

Elizabeth Arden

Revlon

L'Oreal S.A.

Johnson & Johnson

Unilever

Procter & Gamble

The competitors have been using a similar positioning strategy that focuses on providing consumer with special care when it comes to their looks. Elizabeth Arden positions its products older women that look to maintain their features over a longer period of time. Unilever and P&G position their products for a younger audience generally between 18 to 24 years of age for both men and women (Koehn, 2001, pp. 25).

Estee Lauder's Positioning

Estee Lauder positions its products in a manner that it makes the women feel like “a beauty queen”. The company's objective is to create a belief among user that Estee Lauder products can change the way ...