"The Estee Lauder Companies Inc. (Estee Lauder) is one of the leading manufacturers and marketers of fragrance, skin care, makeup and hair care products in the world. The group employs more than 31000 professionals in the fields of R&D, marketing, finance, retailing, etc. The group is headed by Fabrizio Freda since 2009 as the CEO, Director and President. The company markets its products through different brands in more than 140 countries and territories. It also holds the global license for fragrances and cosmetics which are sold under the Sean John, Missoni, Daisy Fuentes, Tommy Hilfiger, Donna Karan, Kiton, Michael Kors, Tom Ford and Mustang brands. In six countries Estee Lauder has 14 manufacturing facilities. It operates in the Middle East and Africa, Europe, America and Asia Pacific regions with business offices located in more than 43 countries.
The company reported revenues of $7.8 billion during the fiscal year ended June 2010, an increase of 6.44% over 2009. The operating profit of the company was $762.6 million during the fiscal year 2010, an increase of 82.27% over 2009. The net profit of the company was $478.3 million during the fiscal year 2010, an increase of 119.00% over 2009. For the six months ending December 31st 2010, the Fragrance products accounted for $447 million, approximately 18% of company's net sales in the first half of fiscal 2010. The Skin care products accounted for $1.02 billion, approximately 41% of company's net sales in the first half of fiscal 2010. The company operates on a global basis, with approximately 56% of its fiscal 2010 net sales generated outside the US. In six countries Estee Lauder has 14 manufacturing facilities. It operates in the Middle East and Africa, Europe, America and Asia Pacific regions with business offices located in more than 43 countries.
The company conducts its research and development activities at its various facilities located in Melville, New York; Oevel, Belgium; Petersfield, UK; Tokyo, Japan; Markham, Ontario; Blane, Minnesota; Shanghai, China; and Colombes, France. The company augments the growth of its existing businesses with a number of strategic acquisitions. During fiscal year 2009, the company acquired Applied Genetics Incorporated Dermatics (AGI), a manufacturer of cosmetics ingredients. In addition, the company acquired businesses engaged in the wholesale distribution and retail sale of Aveda products. It had acquired Ojon Corporation, which gave it the exclusive rights to sell and distribute Ojon products worldwide. The major competitors of The Estee Lauder Companies, Inc. are L'Oreal, Bare Escentuals Inc., Beiersdorf AG, Natura Cosmeticos S.A., Alticor Inc., Nu Skin Enterprises, Inc., LVMH Moet Hennessy Louis Vuitton SA, Kao Corporation, Elizabeth Arden Inc., Coty Inc., Chanel S.A. and Avon Products, Inc."
[...] Estee Lauder Companies,Inc. – Creating Fashion for the world Table of Content ➢ Company Snapshot & Product Portfolio ➢ Historical and Strategic Developments ➢ Industry Outlook ➢ Marketing & Promotional Strategies ➢ SWOT Analysis ➢ Peer Benchmarking & Future Outlook ➢ Risks, challenges and Limitations ➢ Corporate Social Responsibility and other initiatives ➢ Recommendations & Future Research Scope ➢ References Company Overview Snapshot & product offerings Fourth largest skin care manufacturer and distributor worldwide with market share of 6.2% (2012e: 6.7%) in 2011. [...]
[...] Estee Lauder had 550 employees engaged in the research and development activities. B) Estee Lauder operates in all of the major markets worldwide including Europe, the Middle East and Africa, the US and Asia Pacific regions. The company operates on a global basis, with approximately 43.07% of its fiscal 2011 net sales generated from the US (Datamonitor, 2011). ➢ Weaknesses: A) The company is dependent on a number of global suppliers for its production activities. Estee Lauder purchases essential oils, alcohol and specialty chemicals for its manufacturing activities (Datamonitor, 2011). [...]
[...] ➢ P&G and L'Oreal are the core competitors for Estee Launder in skin and hair care along with make-up marketspace worldwide. P&G is offering high discounted bundled pricing to improve volume share in 2011. Cheaper product portfolio in price sensitive and fragmented marketspace will hamper competitive advantage. ➢ Low priced counterfeit brands from China, Vietnam and Indonesia will hamper customer loyalty and retention rates on long-term basis. ➢ Finally, natural disaster such as Tsunami, Hurricanes etc and energy shortage at production facilities will hamper business continuity and revenue growth. [...]
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