Estee Lauder Company

Estée Lauder Companies, I n c . —

2 0 0 8

Sharynn To m l i n

Angelo State University

E L

www.ELCompanies.com

Based in New York City, Estée Lauder is a manufacturer and marketer of four cos-

metic product lines: 1) skin care, 2) makeup, 3) fragrances, and 4) hair care products.

These products are sold in over 130 countries and territories under brand names that

include Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, MAC, Bobbi

B r own, La Mer, Aveda, Jo Malone, Bumble and Bumble, Darphin, Rodan + Fields,

American Beauty, Flirt!, Good Skin and Grassroots. Estée Lauder also has global licenses

for fragrances and cosmetics sold under brand names that include Tommy Hilfiger, Donna

Karan, Michael Kors, Donald Trump, Sean John, Missoni, and Daisy Fuentes. Estée

Lauder announced in June 2007 that it might acquire skin care company Murad Inc., based

in El Segundo, California. Murad sells skin care products and dietary supplements on the

Internet and via infomercials, and also in spas and stores such as Sephora and Bath and

Body Works. Estée Lauder's final 2007 sales increased 7 percent to $7.037 billion.

E s tée Lauder sells its products mainly through upscale department stores, specialty

retailers, upscale perfumeries and pharmacies, and prestige salons and spas. In addition, its

products are sold in freestanding company - owned stores and spas as well as its own and other

authorized retailers' Web sites. You can also find Estée Lauder products for sale at stores on

cruise ships, on television direct marketing channels, and at in-flight and duty-free shops.

Estée Lauder's range of skincare products for women and men include moisturizers,

creams, lotions, cleansers, sunscreens, and self-tanning products, a number of which are

developed for use on particular areas of the body, such as the face, the hands, or around the

eyes. Skincare products account for about 37 percent of net sales as compared to makeup

products that account for about 39 percent of sales.

The company 's makeup products include lipsticks, lip glosses, mascaras, foundations,

eye shadows, nail polishes, and powders, as well as related items such as compacts, brushes,

and other makeup tools. Fragrances for women and men comprise about 19 percent of sales.

Fragrances are sold in perfume sprays and colognes, as well as lotions, powders, creams,

and soaps.

Finally, Estée Lauder sells hair care products in salons and freestanding retail stores.

These products include hair color and styling products, shampoos, conditioners, and fin-

ishing sprays. In fiscal 2006, hair care products accounted for about 5 percent of sales.

Each of the company's brands has a single global image that is promoted with consistent

logos, packaging, and advertising designed to differentiate it from other brands.

H i s t o r y

B e a u t y, youth, and being forever young are common themes in the personal products

industry. A young entrepreneur named Estée Lauder felt that she could provide a product

that espoused those qualities. Estée Lauder Company was founded in 1946 by Estée

Lauder and her husband Joseph Lauder. Estée was always interested in beauty and began

her business selling the skin care products her chemist uncle, John Schotz, developed. Her

first products