What is Estée Lauder’s marketing strategy?

BluCactus South Africa - What is Estée Lauder's marketing strategy?

What is Estée Lauder’s marketing strategy in South Africa? 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 the 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 who are in search of reliable, 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 greatly helped the company achieve 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


Product Strategy


BluCactus - What is Estée Lauder's marketing strategy?Estée Lauder is characterized by bringing luxury products to the market. Among its many products, we find hair care, skin care, and a wide variety of fragrances and makeup. Therefore, its mixed marketing strategy should cover all of the brand’s offerings.


The brand offers a wide range of skincare products, 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.


Price strategy


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, Estée Lauder’s marketing strategy mainly targets the wealthy class of women. It is becoming a luxury brand by being bought by the classes instead of the masses.


This brand’s prices do not inconvenience its potential clients since they are not sensitive to the price of a tube of mascara or a fragrance. However, a mix of sales can also occur, considering that some of its products are more expensive than others.


Distribution strategy


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


BluCactus - What is Estée Lauder's 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, compared to last year’s earnings of $0.87 billion, today’s 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:


BluCactus - What is Estée Lauder's marketing strategy?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 in South Africa?


Ken Schreck BluCactus +1 469 206 5510Estée 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 South Africa, we have a team of marketing professionals who can create a campaign that reaches your target audience and helps you stand out from your competition. Contact us today!


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