What is Estée Lauder’s marketing strategy?
What is Estée Lauder’s marketing strategy? Today, all brands are guided by a marketing strategy to achieve their goals and reach their potential customers. This is also the case for Estée Lauder, an American multinational cosmetics company, founded by Estée Lauder in 1906 in Manhattan, New York.
It is worth noting that this multinational company constantly renews its products. Similarly, its objectives focus on distribution, prices, promotion, and other relevant elements. Therefore, it is very clear that their strategy utilizes mixed marketing.
Let’s see how Estée Lauder’s marketing strategy works.
What is Estée Lauder’s target audience?
When conducting a consumer analysis, we can say that the central demographic of Estée Lauder’s consumer base is women between 35 and 55 years old who live in search of reliable and high-quality products.
To determine who its target audience is, the brand makes use of the segmentation technique.
In this way, you reduce your target audience by diversifying into specific groups.
Likewise, the company frequently conducts market surveys to obtain detailed customer information.
Estee Lauder’s marketing strategy
To begin with, we must say that Estée Lauder’s marketing strategy has been of great help in achieving its founder’s goals. Therefore, we will explain each of the company’s actions to understand how they have taken advantage of their marketing mix. We will take into account their product and pricing strategy as well as their advertising and promotion strategies.
Estée Lauder is characterized by bringing luxury products to the market. Also among its many products, we find hair care, skincare, and a wide variety of fragrances and makeup. Therefore, their mixed marketing strategy should cover all of the brand’s offerings.
For skincare, the brand offers a wide range of products, ranging from moisturizers and bronzers to concealers, foundation, and cleansers. As for its fragrances, the company offers collections to the public. Modern Muse and Beautiful are two of the brand’s most popular fragrances.
There is also another line of Estée Lauder products with the Re-Nutriv label and exclusive packages like Night Power, for special occasions.
This brand has managed to position itself because of its particularity. Since its inception, the company has known how to appreciate and distinguish women and celebrate their beauty through a line of quality products. By this, we mean that its price is premium, so its prices turn out to be higher than some competitors.
Therefore, the Estée lauder marketing strategy mainly aims at the wealthy class of women. It is becoming a luxury brand by being bought by the classes instead of being bought by the masses.
The prices of this brand do not inconvenience its potential clients, since they are not sensitive to the price that a tube of mascara or a fragrance may have. However, a mix of sales can also occur, considering that some of their products are more expensive than others.
Estée Lauder’s digital distribution marketing strategy is also very interesting.
It has a limited distribution system to stay positioned as a luxury brand.
Its products are sold in shopping malls and luxury department stores. Therefore, when analyzing this distribution system, there is no doubt that it has limited targeted customers.
The company’s product portfolio is not very extensive since the brand wants to remain premium. In this way, it has been expanding the distribution of its products according to the scope of its profits and its profitability.
Promotion and advertising strategy
Estée Lauder continues performing a practice that other luxury brands have perhaps already forgotten. They are still giving out free samples. Similarly, the company has carried out varied promotional campaigns, such as purchase-for-purchase to keep its loyal customers’ attention.
Gift-for-purchase has been another of the brand’s promotional campaigns. Through it, customers receive gifts every time they make a purchase. In this way, they can attract customers who until now had no interest in buying any of their products.
However, the brand also offers discounts to specific customers, which also motivates them to purchase the company’s products. Finally, we must also mention the large screens that stand out in the Estée Lauder stores. They are used to capture the customer’s attention, and so far, they have given good results.
Results of Estée Lauder’s mixed marketing strategy
Estée Lauder published its earnings results in the second quarter of 2022.
It has shown that its net sales increased by 14% yearly.
The figures increased from $4.85 billion to $5.54 billion. Also, when comparing last year’s earnings of $0.87 billion to today’s, they are at $1.09 billion.
Each category of their products has also generated an impressive amount of revenue so far in 2022. Let’s take a look at the revenue earned on some of their most popular products:
Skincare net sales
- 2021: $2,819.
- 2022: $3,159 million.
Fragrance net sales
- 2021: $618 million.
- 2022: $799 million.
Makeup net sales
- 2021: $1,247
- 2022: $1,386.
Still don’t have a marketing strategy for your luxury brand?
Estée Lauder’s profits have considerably increased compared to the revenue obtained in 2021. Therefore, we can say that Estée Lauder’s mixed marketing strategy has achieved positive results for the brand. These are sales generated by their potential customers and new customers who have heeded the brand’s call through its promotional campaigns.
Your luxury brand also needs a marketing strategy. At BluCactus Vancouver, we have a team of professionals in the world of marketing and we can take care of creating a campaign that reaches your target audience and helps you stand out from your competition. Contact us today!
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