Marketing Fundamentals Report: An Analysis of Estée Lauder's Marketing

This report provides a comprehensive analysis of Estée Lauder's marketing fundamentals. It begins with an introduction to marketing and the Estée Lauder company, highlighting its global presence and iconic marketing strategies. The report then delves into the marketing process, emphasizing the SOSTAC model (Situation analysis, Objectives, Strategy, Tactics, Actions, Control) and its application to Estée Lauder. It examines situation analysis, objectives, strategy, tactics, actions, and control mechanisms. The report further explores how Estée Lauder creates value for its customers, focusing on product quality, effective marketing tools, and customer engagement through various channels. Finally, it discusses stakeholder engagement, including shareholders, employees, customers, and media, and their impact on Estée Lauder's marketing activities, such as market research, product development, pricing, and promotion. The report concludes by emphasizing the importance of stakeholder involvement in achieving organizational goals and sustainable growth.

MARKETING
FUNDAMENTALS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 A........................................................................................................................................3
TASK 1 B........................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is a business activity used by the company to promote goods and services.
Marketing helps in attracting large number of customers to buy a particular product which leads
to customer satisfaction. Effective marketing plan helps in maintaining competitive advantage
which leads to higher customer base and market share. Marketing consists of advertisement,
promotion, selling and distribution of goods and services to the prospective customers on a
timely manner effectively and efficiently.
Estée Lauder is one of the leading multinational cosmetic company which was founded in
the year 1946 by Estée Lauder and Joseph Lauder. This company mainly deals in skincare,
fragrance, make up and hair care products. Estée Lauder operates in over 150 countries and
territories and mainly operates in Europe, Asia, America and Middle East & Africa. Estée
Lauder company has one of the most iconic marketing strategies and concepts which helps in
maintaining competitive position which leads to long term sustainable growth and success.
This study will highlight critical marketing concepts and the stages included in the role of
marketing mix i.e., product, price, place, promotion, people, physical evidence and process. It
also analyses role of marketing in creating value to customers. It further includes stakeholders
engagement and their impact on marketing activities of an organization.
TASK 1 A
The most crucial part of marketing process is to define the problem and opportunity in
order to collect specific data from various sources which helps in taking necessary corrective
actions which leads to smooth functioning of Estée Lauder. Marketing process also helps in
research process is to develop a research plan by conducting various interviews and surveys.
Marketing process is a strategic steps used identify the goals and objectives of the
company and accomplishing the same. An effective marketing process consist of setting goals
for the company, analysis of various internal and external factors which influence the operations
of the business. It also consists of product planning and developing marketing strategy to achieve
desired goals and mission of the company (Rowles, 2017). Marketing process consists of critical
evaluation of marketing mix and effective implementation of the marketing plan by tracking and
monitoring company's progress. The main steps for successful strategic marketing process
consists of :

 Mission: Estée Lauder commits to work together with uncompromising ethics and
integrity by using best quality ingredients and latest technology.
 Situation analysis: Estée Lauder aims at providing best quality products to its customs
which helps in customer satisfaction. Complete analysis of various factors which
influence the operational efficiency and performance of the company for sustainable
growth and success of the company.
 Marketing strategy/ planning: Formulation of long term plan which helps in achieving
desired goals and objectives of the company. Marketing strategy aim at defining the
target audience which will help increase market share of the company by delivering
quality products to customers (Kleinaltenkamp and et.al., 2015).
 Marketing mix: The next step of marketing process is to develop marketing mix which
helps in development of new products, pricing, promotion, place and distribution of
goods to the targeted segment which help in achieving desired goals and mission.
 Implementation and control: Last step in marketing process is to analyse the marketing
plan effectively and put this plan into action by complete monitoring the results and take
necessary actions accordingly in case of any deviation.
SOSTAC marketing model used by Estée Lauder offers logical order to tackle the plan
effectively and efficiently which help in critical analysis and evaluation of the marketing process
which helps in achieving desired goals and objectives of the company (SOSTAC® marketing
planning model guide, 2019).
 Situation analysis
Situation analysis helps in analysing the current position of the company. It helps in determining
and analysing the goals and objectives of Estée Lauder and how they are currently performing
and what action must be taken to achieve the desired goals. Estée Lauder is currently performing
in in over 150 countries and territories and mainly operates in Europe, Asia, America and Middle
East & Africa. It aims at delivering quality products and services to the customers with the help
of effective marketing and promotional strategies which helps organization in segmenting
particular market. Situation analysis helps in benchmarking its rivalry competitors like Coty,
Revlon, L'Oréal, P&G, Beiersdorf to compare the current performance of the company with it

competitors using various set of metrics. This helps Estée Lauder in understanding needs and
insights of customers and analysing strengths, opportunities and weakness of the organization to
attain competitive advantage over its competitors and helps in long term sustainable growth of
the business (Hollensen, Kotler and Opresnik, 2017).
 Objectives:
This step of SOSTAC model analyses where we want to be in the mere future. This helps in
defining mission and vision statements by aligning business goals and objectives (SOSTAC
Marketing Model — Top Ranked Planning System, 2013). The main objective of Estée Lauder is
to build a sustainable business without compromising ethics, fairness, diversity, trust and
integrity of the business. They aim at providing quality products with improved ingredients and
technology which helps in achieving competitive advantage over its competitors with increased
market share and customer base. Estée Lauder also aims at setting standard objectives of the
company by selecting key performance indicators with the main objective of unwavering quality
and excellence.
 Strategy:
This step of SOSTAC model focuses on how to get there. Estée Lauder focuses on making a
strategic plan to achieve desired set objectives. Estée Lauder aims at using tactical tools like
social media platforms such as Facebook, Instagram, twitter, you tube, etc, personal website,
content marketing, artificial intelligence and automation to attract large customer segment to the
targeted market which helps in attaining increased market share and customer base which leads
to attainment of goals and objectives of the company my maximizing profits (Estée Lauder
Marketing Mix (4Ps) Strategy, 2019).
 Tactics:
It is detailed analysis of strategy to accomplish the desired goals of the company by analysing
marketing mix of Estée Lauder. It mainly deals in cosmetics such as make up, fragrance, hair
care products and skin care. Pricing strategy of Estée Lauder is premium and are priced higher
than its rivalry competitors in the market. It is one of the luxury brand and aim to position
themselves in shopping malls and high street departmental stores. The promotional tactics which
help achieve desired target is that they provide free samples to its customers and by launching
effective promotional campaigns to attract new customers and retain old. Estée Lauder aims at

strengthening its marketing position by delivering quality and improved products than its
competitors. They aim at targeting affluent woman class (Andrews and Shimp, 2017).
 Actions:
It is detailed analysis of the tactics for more responsible structure and helps in assigning task so
that goals of the company can be achieved effectively and efficiently. Estée Lauder mainly focus
on strong internal and external marketing using various network and platforms. It also helps in
building strong employees and supply chain to accomplish goals of the company.
 Control:
This is the final step which helps monitor whether the company has achieved the desired goal on
not. In case of any deviation strategic action will be taken for sustainable growth of Estée
Lauder. Continuous monitoring is done through various surveys and interviews.
The role of marketing in creating value to customers.
The core purpose of marketing is to create value for customers by providing them quality
and improved products which satisfy their needs in an efficient manner. Marketing helps in
identifying the target market and customers which helps Estée Lauder in creating value to its
customers by delivering quality goods and services to its prospective clients. Formulation of
effective marketing strategies helps in analysing the desired goals and objectives of Estée Lauder
by delivering value added products top its customers (Armstrong and et.al., 2015).
Implementation of effective marketing tools which helps in reaching right people with the right
products and also effective communication helps in displaying effective features of the product.
Marketing helps in directing right product to the right customers and it also helps in determining
the need of the product to consumers. Marketing adds value to the customers by effectively
postposition the product in customer's mind by efficiently targeting the market.
The key role of marketing is to identify their customers by understanding the need of the
target market. Marketing also aim at satisfying their customers by making right products to right
customers and at the right time. Effective marketing also helps in retaining old customers and
creating new customers by providing quality and improved services to the customers. This also
helps Estée Lauder in maintaining competitive position which leads to higher market share and
customer base (Kotler and et.al., 2015). Estée Lauder use augmented reality to help customers
virtually try lip shades. They also communicate with its customers using social media platforms,

mobile commerce, e-commerce and automation which helps in building long term relationship
with customers and increased sales of the company. Estée Lauder target their products to the
market where women are ready to pay high prices for the products. They aim to strengthen their
position by launching several new and innovative products to attract clientele. Estée Lauder also
effectively segment their market to different geographical areas to attract large customers all
over the globe which helps in higher market share and maintain its competitive edge in the
market.
Stakeholder engagement and their impact on the marketing activities of an organisation.
Engagement of stakeholders like shareholders, employees, customers, lenders, supplier,
creditor, government, media influence the marketing activities of the organization which
influence in decision making and strategic planning. Engagement of stakeholders helps in brand
enhancement, improved productivity, strategic operations, increased investment and trust
development which helps Estée Lauder in sustainable growth and operations of business.
Effective engagement of stakeholders in marketing activities helps in building cohesive vision
for future and also helps in translating stakeholders needs into effective strategy development
which helps achieve organizational goals and objectives (Valos and et.al., 2017). There are
several marketing activities which are influenced by the stakeholders of Estée Lauder, they
mainly consist of :
 Market research: Market research helps in analysing the current performance of the
company and the range of products offered by Estée Lauder. Customers, suppliers and
employees of the company are involved in market research. Employees of the company
gets completely involved in analysing the performance of particular product by
conducting various surveys and interviews. Customers gets clear and transparent views
about the product which helps Estée Lauder in effective and strategic decision making.
Supplier and distributors of the company also take review about the product which helps
in improved market research and decision making for sustainable growth and
development.
 Product development: Estée Lauder focuses on developing new and innovative products
without hampering the quality of the products. Customer engagement plays a key role in

development of new products. Company focuses on developing only those products
which add value to the needs of customers.
 Pricing: This is the core marketing activity where Estée Lauder focuses on pricing their
products higher tan the competitors. Customers are widely engaged in the formulation of
the price of products as Estée Lauder analyses the price the customer is willing to pay
which will affect their decision making.
 Promotion: The main activity of Estée Lauder is to promote their luxury products
through various social media platforms, personal website, advertisement to reach large
number of customers all across the globe. Various stakeholders like customers, media,
are involved in promotional activities of Estée Lauder. Media helps in advertising and
promoting products at large scale to consumers (Pluta-Olearnik, 2018). Affluent
customers of the company gets attracted to the products due to effective promotional
activities. Increase in promotional and marketing activities leads to higher cost burden to
the company.
 Company growth: Growth of the company is largely influenced by the customers,
media, employees and suppliers of Estée Lauder. Employees of the company should
maintain healthy relationship with customers for sustainable growth and success of
business. Increased market share and customer base helps in maintaining competitive
position in the market. Strong supply chain helps in reaching larger customer base. Media
also helps in building positive reputation and goodwill of Estée Lauder.
TASK 1 B
According to (Valos and et.al., 2017), marketing is a crucial activity which helps in
delivering products to customers. This also helps in promoting, delivering and selling goods to
the prospective customers by satisfying their needs. Effective marketing helps in analysing the
needs of customers and also leads to effective decision making for developing the new products
which satisfy the needs of customers. (Asif and Sargeant, 2015)states that, marketing helps in
setting mission to achieve desired goal and objective of the company and leads to strategic and
tactical marketing planning which helps in sustainable growth and development of Estée Lauder
(The Tactical Communication Mix in Digital Marketing, 2019). Marketing also helps in
analysing and controlling the deviation and helps in taking necessary actions accordingly.

According to (Chaffey and Ellis-Chadwick, 2019) marketing is of key importance to
Estée Lauder which helps them in reaching large number of customers using digital tactical
communication tool like social media platforms such as Facebook, Instagram, YouTube, twitter,
etc., email marketing, search engine optimization, automation of products, artificial intelligence,
personal website. This tactical tools helps Estée Lauder in building direct communication with
large customer from all across the globe. Effective tactical communication improves operational
efficiency and productivity of the organization which leads to higher market share and
profitability. (Visser, Sikkenga and Berry, 2018) states that, there are several tactical
communication tools like personal selling, advertisement, sales promotion, direct marketing,
public relations, guerrilla marketing which helps in achieving desired goals and objectives of
Estée Lauder which leads to higher market share and customer base. Online digital marketing is
one of the leading brand which helps in increased sales and direct communication with
customers from all over the world. It is one of the best tactical communication tool which helps
in increasing customer satisfaction and helps in maintaining competitive advantage to Estée
Lauder. Tactical communication tool helps company in communicating with large customer
which helps Estée Lauder in achieving desired goals and objective effectively and efficiently
which leads to longer sustainable growth.
CONCLUSION
From the above study it has been summarized that, marketing is of crucial significance
for the company which helps in delivering goods and services to the targeted market which helps
increase customer satisfaction. It also concludes that, marketing process is of key significance
which helps in determining goals and mission of the company and leads to strategic and tactical
planning using SOSTAC model which helps achieve desired goals and implementation and
monitoring of strategic plan. It also concludes that marketing helps in creating value to the
customers which helps in identifying their target customers and leads to customer satisfaction. It
further states that, engagement of stakeholders impact marketing activities like pricing, selling,
distribution, promotion, company growth and market research of the organization.
This further concludes that, marketing use various tactical communication tools like
digital marketing, email marketing, content marketing, direct selling, public relations, personal
website for effective communication with customers all across the globe.

REFERENCES
Books and journals
Andrews, J.C. and Shimp, T.A., 2017. Advertising, promotion, and other aspects of integrated
marketing communications. Nelson Education.
Armstrong, G. and et.al., 2015. Marketing: an introduction.
Asif, S. and Sargeant, A., 2015. Internal marketing tactics: Is communication really all there is to
it?. In Proceedings of the 1998 Academy of Marketing Science (AMS) Annual
Conference. (pp. 351-355). Springer, Cham.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
Hollensen, S., Kotler, P. and Opresnik, M.O., 2017. Social Media Marketing: A Practitioner
Guide.
Kleinaltenkamp, M. and et.al., 2015. Fundamentals of Business-to-business Marketing. Springer.
Kotler, P. and et.al., 2015. Marketing. Pearson Higher Education AU.
Pluta-Olearnik, M., 2018. Integrated marketing communication—concepts, practice, new
challenges. Marketing of Scientific and Research Organizations. 28(2). pp.121-138.
Rowles, D., 2017. Mobile marketing: how mobile technology is revolutionizing marketing,
communications and advertising. Kogan Page Publishers.
Valos, M.J and et.al., 2017. Integrating social media within an integrated marketing
communication decision-making framework. Journal of Marketing Management. 33(17-
18). pp.1522-1558.
Valos, M.J. And et.al., 2016. Exploring the integration of social media within integrated
marketing communication frameworks: Perspectives of services marketers. Marketing
Intelligence & Planning.34(1). pp.19-40.
Visser, M., Sikkenga, B. and Berry, M., 2018. Digital Marketing Fundamentals: From Strategy
to ROI. Noordhoff Uitgevers BV.
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