This case study is about the cosmetics industry. The Estee Lauder Companies Inc. (Estee Lauder or
"the company") is a globally recognized manufacturer and marketer of makeup, skin care, fragrances
and hair care products. The company operates in the Americas, Europe, the Middle East and Africa,
and Asia Pacific. It is headquartered in New York City, New York and employed about 32,300
people as of June 30, 2011. The company recorded revenues of $8,810 million in the financial year
ended June 2011 (FY2011), an increase of 13% over FY2010. The operating profit of Estee Lauder
was $1,089.4 million in FY2011, an increase of 37.9% over FY2010. The net profit was $700.8
million in FY2011, an increase of 46.5% over FY2010.
In the early years of Estee Lauders‟ entrepreneurship, she faces a rejection from Madison Avenue to
accept and carry her product. But that does not stop her from continuingselling her products directly
to customers where she targets high:class customers exclusively through boutiques and department
stores and one of the first department store to sell her products was with Saks Fifth Avenue in New
York. Until today, Estee Lauder Companies has 26 brands, selling over to 150 countries andemploys
over 22,000 people worldwide. By the year 2004, Estee Lauder Companies lost a very important
person and that is Mrs. Estee Lauder herself due to cardiac arrest. Although it was agreat loss for the
company, Mrs. Estee Lauder witnessed her empire grow from a smallhometown operation into a
worldwide corporation. She was proud that her company went public in 1995 and now, it is led by
her children and grandchildren.
As of 2010 Estee Lauder sells its products in department stores across theworld and has a chain of
freestanding retail outlets. On July 1, 2010, the company acquired Smashbox Beauty Cosmetics Inc.,
a brand created in Smashbox Studios in Culver City, California by brothers Dean and Davis Factor
(as in Max). On October 28, 2011, Aramis and Designer Fragrances, a division of The Estee Lauder
Companies Inc., and Tory Burch LLC announced the signing of a multi:year agreement for the
exclusive worldwide license of the Tory Burch fragrance business. This partnership marks Tory
Burch's first step into the beauty industry. The first Tory Burch fragrance products are expected to be
introduced in 2013.
"Bringing the best to everyone we touch and being the best in everything we do. By "the best" we
mean the best products, the best people and the best ideas."
Our mission is to deliver the highest quality skin care products, fragrance, cosmetics, and hair care
products (2) for men and women of all ages and nationalities (1) around the world (3). By using the
latest technology (4) in cosmetic design, we are able to ensure our customers' high demand for
superior and safe products will be met or exceeded in each and every product purchased (7).
Providing the best products possible to our customers will enable our philosophy (6) of...