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 lives in a constant renewal of its products. Similarly, its objectives focus on distribution, prices, promotion, and other relevant elements. Therefore, it is very clear that their strategy is a marketing mix.
Let’s see how the Estée Lauder marketing strategy works.
What is Estée Lauder’s target audience?
When conducting a consumer analysis, we can say that the central public of Estée Lauder is women between 35 and 55 years old.
Which 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, it frequently conducts market surveys to obtain detailed customer information.
Estee Lauder Marketing Strategy
To begin with, we must say that Estée Lauder’s marketing strategy has been of great help in achieving her goals. Therefore, we will explain each of their actions to understand how they have taken advantage of their marketing mix. We will take into account your product and pricing strategy. Also, of its advertising and promotion:
Product Strategy, Estée Lauder’s marketing strategy.
Estée Lauder is characterized by bringing luxury products to the market. Also, among its line of products, we can find hair care, skincare, and a wide variety of fragrances and makeup. Therefore, their marketing mix 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, they are offered to the public by collections.
Modern muse and beauty have been one of her most popular fragrances.
Indeed, there is also another line of Estée Lauder products with the Re-Nutriv label. And exclusive packages like Night Power, for special occasions.
Price Strategy, Estée Lauder’s marketing strategy.
This brand has managed to position itself for a particularity. Since its inception, it has known how to appreciate and distinguish women.
And celebrate its 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 Estee 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 mascara or a fragrance may have. However, a mix of sales can also occur, considering that some of your products are more expensive than others.
Distribution Strategy, Estée Lauder’s marketing strategy.
Estee Lauder’s digital distribution marketing also becomes 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.
Its 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’s marketing strategy.
Estée Lauder continues to do a practice that perhaps other luxury brands have already forgotten. They are still giving out free samples. Similarly, the company has carried out different 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. What also motivates them to purchase your 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 marketing mix 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 $1.09 billion.
However, each category of their products has generated an 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: £2,288
- 2022: £2,600 million.
Net sales in fragrances
- 2021: £500 million.
- 2022: £650 million.
Makeup net sales
- 2021: £1,012
- 2022: £1,125.
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 the Estée Lauder mix marketing strategy has achieved positive results for the brand. Also, sales are generated by your 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, 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.
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