Marketing Strategy: Esteee Lauder Company

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IV) Marketing Strategy
Estee Lauder Company will adopt the 5Ps strategic marketing for the new product line “Zero Oil” and with its slogan called “purity promises”. Since “Zero Oil” is an acne treatment skin care product, the main targeted consumers will be young adults and Millennial. This group will be more likely to spend disposal income in skin care products. Thus, it is one of the advantage for this product line since this targeted segment is the group that are more likely to spend money.
a. Product
Since “Zero Oil” is a new product line from Estee Lauder Company, the company will launch a strategic plan for its product strategy where the company will focus on a specific segment in he market. The target market is mostly Millennia and
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The company adopts value based pricing strategy because the company takes customer’s perception of value. It uses the market skimming pricing strategy where it sets high price relative to “Economic value to the customer”. For example, a 1.7oz “Zero Oil toner sells at $32 per unit, and customers are willing to purchase it instead of taking other alternatives such as a 8oz tone at $25 per unit. The Estee Lauder Company’s product quality and image support its high price, and there are many customers willing to pay at a high price. I think that this is the best method because market skimming generates the maximum amount of revenue to the Estee Lauder Company. The figure 1 below is a pricing chart compare to its competitors, as we can see, Estee Lauder is more of a prestigious brand compare to other …show more content…
It it considered level one manufacture where the company sell its goods through retailers. The company delivers the luxury image and prestigious status of the brand through these upscale department channels. However, these channels are independent from each other, and they are separate businesses that seeking to maximize their profits. The company has many distribution channels worldwide. Such multichannel marketing makes “Zero Oil “reaches to consumers easier and the new brand more well known. The primary weakness of the company is its not consistent with the marketing channels. Most of the “Zero Oil” product will be selling in a luxury and prestigious channels like Neiman Marcus and Sake Fifth Ave, but the Estee Lauder Company also sell it in Kohl’s. By selling the product in Kohl’s, it will lower the prestige of the brand. Therefore, I believe the company should be consistent with its marketing channels to make “Zero Oil” an exclusive

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