Comprehensive Analysis of Estee Lauder's Marketing System and Product

This report provides a comprehensive analysis of the Estee Lauder marketing system, examining the product life cycle from concept to consumer. It begins with an overview of the company, its global operations, and the specific product (perfume) under consideration. The report then maps the product's journey, identifying key stakeholders like raw material suppliers, factories, retailers, and consumers, while also providing a detailed breakdown of the product life cycle stages, including concept development, design, product development, testing, labeling, and pricing. The marketing system is defined, and key elements such as network, innovation and knowledge, and assortments are explored. The report highlights Estee Lauder's global network, commitment to innovation, and diverse product assortments. It concludes by emphasizing the importance of a strong marketing system for business success and customer trust, referencing the company's continuous economic growth. References to support the analysis are included.

RUNNING HEAD: MARKETING 0
Marketing Systems February 4
2020

MARKETING 1
Contents
About Estee Lauder.............................................................................................................................2
Map of the product (Estee Lauder)....................................................................................................3
Product life cycle..............................................................................................................................4
Concept..........................................................................................................................................5
Designing......................................................................................................................................5
Product development and testing...................................................................................................5
Labelling and pricing.....................................................................................................................5
Stakeholders.....................................................................................................................................5
Marketing system................................................................................................................................5
Customers........................................................................................................................................6
Research and Evaluation................................................................................................................6
Product.............................................................................................................................................6
Marketing elements.............................................................................................................................6
Network............................................................................................................................................6
Innovation and knowledge..............................................................................................................7
Assortments......................................................................................................................................7
Conclusion............................................................................................................................................7
References............................................................................................................................................9

MARKETING 2
About Estee Lauder
An Estee Lauder company is cosmetic industry, founded in 1946 in New York City.
Founders of company were Estee Lauder and Joseph Lauder. Estee Lauder has skin care,
makeup, fragrance, and hair care products. Estee lauder operates in approximately 150
countries; three main regions of operation are Asia, Pacific, and Europe. According to Forbes
Estee Lauder has $5.63 billion sales recorded (Companies data, 2020). The product I bought
was Estee Lauder’s perfume. This report will express the map of the product and after
consumption feedback. This will give detailed analysis of the stakeholders involved in the
entire process and marketing system used by the company. Further this report will discuss
about the network, innovation, knowledge, and assortment of the product.

MARKETING 3
Map of the product (Estee Lauder)
Estee Lauder’s
Laboratories
Raw materials from multiple
countries
Utilities from New York
Estee Lauder
Factories
Natural resources
From farmers
Wholesalers in
multiple countries
Online market
Daily supplies
from nearby
stores
Retailers and
distribution
Super markets and
shops
Consumers
Shipping and
transport
Packaging and labeling material

MARKETING 4
Product life cycle
New Conceptualization
Designing and
material collection
Product development
and testing
Final labelling and
pricing
Final product

MARKETING 5
Concept
Before getting into the product first step is to decide on the concept of the product.
Estee lauder is a cosmetic industry that deals with self-care products. Before launching any
product in the market, it is essential to know the demand and the competition present in the
market. Thus, first step in product life cycle is to decide the concept of the product (Hsueh,
2010).
Designing
After deciding on the product’s concept second step is to decide on the design of the
product. Consumers always demands for freshness and uniqueness in the product. Estee
Lauder designs the product in a way that it appears fresh and unique in front of the target
audience.
Product development and testing
Before launching the product in the market, it is important to test the product’s quality
and develop it to make it perfect and user friendly for the final consumers.
Labelling and pricing
The last step in the product cycle is to decide on the price and label the products. The
packing and pricing of the product is the centre of the attraction for most if the consumers.
After all the steps are done all the information and raw material is transported to the factories
to start the production.
Stakeholders
Traditionally or generally stakeholders get involved in the process after the launch of
the product. But stakeholders like directors, shareholders, and employees have all rights to
get involved in the production process. They can get involved in prior production cycle of the
product (Aapaoja, Haapasalo, & Söderström, 2013).
Marketing system
Marketing system is the network of sellers and buyers and stakeholders’ involved in
the business. This system includes direct market players like buyers, producers, and people
who drive economic activity in the market. Another part of this system is suppliers of good
and services. Every market’s key player is their customers.

MARKETING 6
Customers
There are four types of customers, existing customers, referring customers, past clients,
and prospects.
 Existing customers are the path to increase the sales. Because they already have trust
in the product and are friendly with the products.
 Referring customers are those who are regular buyers and recommend products or
services to new customers.
 Past clients are the customers who has left the the brand. Although, brand should try
to convince them and ask them to come back.
 Prospects are the new customers to the company (Aksoy & Donkers, 2010).
In creating a marketing system it is essential to understand the customers because they are
the key players in the market system. One can never totally understand the target market
enough but if they learn about the customers they can succeed in the market.
Research and Evaluation
Another approach in marketing system is to research about the market trends and
demands. Information about target market is the key to success. Evaluating and testing the
internal and external environment can make business run smoothly (Lewis & Erickson,
2016).
Product
After getting informed about the customers most important element in the marketing
system is to know about the product and maintaining the quality of the product. None of the
marketing strategies can save a business if the product is of low quality. The quality must
align with the respective target market.
Within the marketing system there are few elements that provide better understanding
about the system. They are exchange logics, innovation, knowledge, networking, organising
principles, buyers, and assortments. From given elements three most discussed elements are
elaborated below.
Marketing elements
Network
The network of Estee Lauder is established globally. Estee Lauder’s main factories
are located in US, Canada, UK and China. For basic ingredients and machinery Estee Lauder

MARKETING 7
takes help from multiple countries globally. From the very beginning Estee Lauder was able
to address the performance gaps in every area, such as collecting natural resources or natural
essences for the fragrances or perfumes. Estee lauder sourced natural ingredients from
farmers to keep the skin care products safe for the consumers.
Estee lauder always believed in working collaboratively and establishing network
chain globally because that would improve efficiency and opportunities for the organization.
Also the network is not only within the organization it is with the customers as well (Noort,
Antheunis, & Verlegh, 2014).
Innovation and knowledge
“We want to deliver breakthrough products that benefit the consumer and continue to
invent the unexpected” was said by Carl Haney executive Vice President and global research
and development head. An Estee Lauder company is passionate for creativity and innovation.
Dealing in beauty products is not easy; Estee Lauder helps millions to express their individual
self. Estee Lauder utilizes the latest technologies and has knowledge about required efforts.
Estee Lauder believes in innovation and tries to capture consumers’ imagination. Developing
a fragrance is the hardest in the cosmetic industry. It requires skills and driving force to
develop a formula or concept with no harmful things used (Lauder, 2020).
Assortments
There are always variants available for great products. But only best stays in the
market with continuous growth and customer satisfaction. Estee lauder has built positive
perception of customers over quality products. In Estee Lauder factories fragrances are not
just made through machines all the perfumes are created by professionals. Estee Lauder has
grown beyond boundaries. Estee Lauder has also created employment in the general market.
Their entire supply chain is successful.
Conclusion
Marketing system enables the business to fight in the system. It is very important to
create trust in the market for the product and marketing system provides path for success. Out
of all marketing is the most interesting and exciting in the business. Above given report
discuss about cosmetic company “Estee Lauder”. This report holds the map of the product
and life cycle of a product. Further it will explain the marketing system. Overall, Estee
Lauder as an organisation has grown and registered continuous economic growth with a
flexible and effective marketing system.

MARKETING 8
References
Aapaoja, A., Haapasalo, H., & Söderström, P. (2013). Early Stakeholder Involvement in the
Project Definition Phase: Case Renovation. International Scholarly Research Notices , 13-14.
Aksoy, L., & Donkers, B. (2010). Undervalued or Overvalued Customers: Capturing Total
Customer Engagement Value. Journal of Service Research, 297-310.
Companies data, T. (2020, Febuary 03). Global Operations. Retrieved from Estée Lauder
Companies: https://www.elcompanies.com/en/who-we-are/global-operations
Hsueh, C.-F. (2010). International Journal of Production Economics. Elsevier, 645-652.
Lauder, E. (2020). Estee Lauder. Retrieved February 04, 2020, from Creativity and
innovation: https://www.elcompanies.com/en/who-we-are/creativity-and-
innovation#brand-product-development
Lewis, R. J., & Erickson, L. G. (2016). Marketing Functions and Marketing Systems: A
Synthesis . Journal of Marketing, 10-14.
Noort, G. V., Antheunis, M. L., & Verlegh, P. W. (2014). Enhancing the effects of social
network site marketing campaigns. International Journal of Adertising, 235-252.