INCREASING CUSTOMER ENGAGEMENT IN THE COSMETICS INDUSTRY. THE EXAMPLE OF ESTEE LAUDER COMPANIES
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Marketing
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University Of Wales Trinity Saint David
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Marketing 4.0
The information era has changed daily life and shopping. Companies seek a multilevel approach to communicate with their customers and focus is moved to digital channels. Although nowadays it is easier for companies to connect with a customer, it is much harder to continuously keep them engaged. The...
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INCREASING CUSTOMER ENGAGEMENT IN
THE COSMETICS INDUSTRY. THE EXAMPLE
OF ESTEE LAUDER COMPANIES
ASSESSMENT 1
MODULE TITLE: MARKETING MANAGEMENT LCMB7006
LECTURER: TUSHARA BALENDRAN
STUDENT NAME: NADEZHDA KITANOVA
STUDENT NUMBER: 1918675
University of Wales Trinity Saint David
,1.INTRODUCTION
The information era has changed daily life and shopping. Companies seek a multilevel
approach to communicate with their customers and focus is moved to digital channels.
Although nowadays it is easier for companies to connect with a customer, it is much harder
to continuously keep them engaged. The first chapters analyse Estee Lauder's marketing
communications strategy and discuss prospects for the company. Engaging modern
shoppers requires a customer-centred approach, focusing on various key elements. Chapter
5 explores Estee Lauder's brand equity by referring to the literature. Customer touchpoints
brought together to shape the customer journey, discussed in chapter 6 and 7. Chapter 8
applies the Total Engagement Model to Estee Lauder by exploring how all marketing
elements create an effective customer engagement system.
2. COMMUNICATION AS A CORE PRINCIPLE IN
MARKETING
Merriam Webster defines communication as an exchange of information between individuals
through symbols, signs and behaviour. The marketing of a company should be
communicated in the customer's language so it is effective. In 1946, Shannon
(mathematician) and Weaver (electronic engineer) created the Shannon - Weaver’s model
of communication. In terms of marketing communication, the sender is the company which
transmits its message through various marketing channels to its customer, the receiver. The
message could be disrupted or blocked by “noise” - competitor’s messages.
The cosmetics market is dynamic, with rapidly changing trends and a lot of new entrants,
therefore there is a lot of noise. To reach the receiver, a company must ensure a universal
message, delivered through more channels.
3. ESTEE LAUDER CURRENT PROMOTIONAL STRATEGY
This chapter will focus on the current promotional mix of Estee Lauder across brands with
the purpose to identify areas of interest for further development. In recent years the
, company has focused on increasing digital marketing capabilities. EL's growth strategy
consists of saving costs by optimizing distribution channels and processes and relocating its
resources in increasing social and digital presence. Below subchapters discuss both online
and offline promotions and analyze how they are combined to create awareness and
represent the brand image. Estee Lauder uses the Integrated Marketing Communications
concept (IMC) to ensure that all forms of messages and communications are linked and
work in harmony.
3.1 TRADITIONAL ADVERTISING
Estee Lauder uses a wide range of media for advertising such as magazines, newspapers,
outdoor campaigns, television. The creatives are designed to match the brand identity -
luxurious and elegant. The company often uses popular faces and celebrity supermodels for
their TV & magazine ads. EL has been famous for its editorial campaigns since the late 70s
and has contracted high-profile celebrities such as Elizabeth Hurley, Paulina Porizkova,
Gwyneth Paltrow and Kendall Jenner. Estee Lauder focuses most of its printed advertising in
fashion & business magazines such as Vogue, Elle, Marie Claire, Forbes. Outdoor also
takes part in Estee Lauder’s traditional advertising strategy. Key locations are high-traffic
areas, close to retail points and touristic zones. Billboard images, posters, street ads, bus
and cabs took overs are used across Estee Lauder’s brands to promote new launches,
create brand awareness, and inform on novelties. Below, an example of rickshaw’s took
over, when Too Faced (owned by Estee Lauder) opened its very first boutique in London,
UK.
Advertising is done as well as in luxury retail points across the world by state-of-the-art retail
free standing stores and counters. Estee Lauder distributes its brands in selected locations,
known for high-quality customer service such as Sephora, Ulta, Selfridges, Harrods. The
counters often occupy big retail space and everything from the decor and display to
employees' grooming reflects the brand identity. Latest, the company has paired brick and
mortar with digital. In 2019, MAC Cosmetics opened an interactive retail store in Shanghai
by combining product discovery, social engagement and purchase, all designed to create a
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