to do segmentation the market to select target market that are relevant to enterprise and identify key consumer profile

Estee Lauder is one of the leading cosmetics companies in the world, with a diverse portfolio of brands, from luxury brands such as La Mer and Clinique to mass-market brands such as MAC.

UEH UNIVERSITY

BUSINESS SCHOOL

FACULTY OF INTERNATIONAL BUSINESS - MARKETING

UEH

UNIVERSITY

FINAL ESSAY

1 TO SELECT THE MARKET AND ENTERPRISE

2 TO DO SEGMENTATION THE MARKET, TO SELECT

TARGET MARKET THAT ARE RELEVANT TO ENTERPRISE

AND IDENTIFY KEY CONSUMER PROFILE

COURSE: PRINCIPLES OF MARKETING

Lecturer: Prof Trần Mai Đông

Class code: 23C1BUS50307003

Student: Pham Minh Anh

Class: IBP003 (K49)

Student ID: 31231023636

H6 Chi Minh City, 20 December 2023

TABLE OF CONTENT

I INTRODUCTION

II MARKET ANALYSIS AND ESTÉE LAUDER ENTERPRISE 55+ 3

The beauty and cosmetics mmaTK€f - SH TH kh 3

._ Estée Lauder €'If€TpTISG . TT ĐH 3

SWOT analysis of Estee LauđeF - - c S1 S222 S11 S TS S TS HH 5

II MARKET SEGMENTATION AND TARGET MARKET SELECTION 6

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3 Justification for choosing Estee Lauder

4

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2 Target markef ác nh HH HH HH HH HH HH HH 8

TV KEY CONSUMER PROFILE 0 ccccccccccccceeececeeeeeeeeeeeeeeeeeeaaeseeseneeeseseeesseneetaanees 9

1 Key consumer attributes .c eee etree eee a KH tk kh 9

2 Values from key CuSfOIT€TS TT ng kg 10

3 Meeting the needs and retaining key customers of the Estee Lauder 10

V CONCLUSION

VỊ, REFERENCE DOCUMENTS Tnhh Tnhh ket 11

Phạm Minh Anh

I INTRODUCTION

The beauty and cosmetics market is a booming industry, projected to reach a staggering $716

billion by 2025 Today, this market encompasses a staggering array of products, from

skincare and makeup to haircare and fragrances It caters to diverse demographics, with

personalized solutions for every age, skin type, and cultural preference The market is

expected to continue its upward trajectory, with personalization, technology, and

sustainability playing key roles in its evolution Brands that can cater to diverse needs, offer

unique experiences, and prioritize ethical practices are poised to thrive in this dynamic and

ever-evolving landscape

Estee Lauder is one of the leading cosmetics companies in the world, with a diverse portfolio

of brands, from luxury brands such as La Mer and Clinique to mass-market brands such as

MAC In order to maintain its success in the always-evolving and fiercely competitive

cosmetics industry, segmentation of the market and accurate identification of target

customers are essential Through thorough analysis of the global market and estee lauder

business, this essay will propose a market segmentation plan, and also select appropriate

target markets and identify key customer groups for Estee Lauder's business

Pham Minh Anh

Il MARKET ANALYSIS AND ESTEE LAUDER ENTERPRISE

1 The beauty and cosmetics market

The world of cosmetics is a vast and vibrant industry dedicated to enhancing and beautifying

individuals Makeup, skincare, haircare, fragrances, and personal care items all play a role,

catering to diverse preferences and needs From different skin types and tones to unique

styles, there's a product out there for everyone

This market thrives on the human desire for self-expression, confidence, and looking one's

best It's woven into personal care routines and beauty culture, where self-care and grooming

take center stage With increased focus on these aspects, spending on cosmetics and beauty

products naturally rises

As individuals seek the best version of themselves, the demand for effective and innovative

cosmetics continues to surge Advancements in technology and formulation bring forth

ingredients, textures, and long-lasting effects that were once unimaginable This attracts

consumers who prioritize both performance and safety in their beauty choices

Cosmetics market is on the rise: With a current valuation of USD 360.78 billion and a

projected growth of 5.02% to reach USD 444.02 billion by 2027, the cosmetics market

shows no signs of slowing down It's a dynamic and exciting space, constantly evolving to

meet the ever-changing desires and needs of individuals seeking to enhance their beauty and

boost their confidence (Market Research Network, 9/2023)

2 Estée Lauder enterprise

Estee Lauder: A Global Cosmetics Empire

Estee Lauder is a multinational cosmetics company founded in the United States in 1946 by

Estee Lauder and her husband, Joseph H Lauder Starting from a small shop in Manhattan,

New York, Estee Lauder quickly became one of the most famous cosmetics brands in the

world

Estee Lauder was a talented and visionary woman She dedicated her life to researching and

developing high-quality, effective cosmetics that meet the needs of women Thanks to this,

Estee Lauder's products have quickly been loved by millions of women around the world

Estee Lauder has continued to grow and expand its business The company has acquired or

partnered with many other famous cosmetics brands, including Clinique, MAC, La Mer,

Bobbi Brown, Tom Ford, etc As of today, Estee Lauder owns over 200 different cosmetics

brands, covering over 150 countries and territories

Pham Minh Anh

Estée Lauder

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Estee Lauder products are known for their high quality, effectiveness, and luxurious design

Estee Lauder positions itself as a high-end, luxury cosmetics brand Estee Lauder products

are designed for successful women with a refined aesthetic sense

Estee Lauder is not only a leading cosmetics company in the world, but also a symbol of

success and development Estee Lauder has inspired millions of women around the world to

pursue their dreams and achieve success in their careers

3 Justification for choosing Estee Lauder

Estee Lauder presents itself as a compelling case study for market selection and

segmentation due to its multifaceted nature and strong presence in the global cosmetics

industry Estee Lauder boasts significant brand recognition across over 150 countries,

making it a household name in many markets This recognition provides a strong foundation

for analyzing its market selection and segmentation strategies Estee Lauder has successfully

adapted its brand image and product offerings to cater to diverse cultural preferences,

making it relevant across different market segments

Operating in diverse markets exposes Estee Lauder to a variety of consumer preferences,

needs, and purchasing behaviors Owning over 200 brands across makeup, skincare,

haircare, fragrance, and personal care, offers a comprehensive view of how product

diversification affects market selection and segmentation The vast array of products allows

Estee Lauder to target various customer segments based on their specific needs and

preferences

Pham Minh Anh

4 SWOT analysis of Estee Lauder

Strengths: Estee Lauder boasts a formidable presence in the global cosmetics industry,

anchored by its strong brand recognition, diverse product portfolio, and expansive global

reach This powerhouse brand caters to a wide range of customer needs through its extensive

selection, while consistently pushing boundaries in innovation and quality Estee Lauder's

robust financial performance further cements its position as a leader in the beauty world

Weaknesses: Estee Lauder navigates a competitive landscape in the cosmetics industry,

facing established giants like L'Oréal and Procter & Gamble While their reputation hinges

on consistent innovation and high-quality products, occasional stumbles like product safety

controversies or price points inaccessible to some segments can dent their luster Moreover,

rising consumer awareness of sustainability puts them under pressure to address their

environmental footprint and adapt to evolving preferences

Opportunity: Estee Lauder's future sparkles with opportunity The booming luxury cosmetics

market offers fertile ground for expansion, while burgeoning economies in emerging

markets unlock avenues for further reach As digital reigns supreme, savvy online strategies

hold the key to attracting new customers And by staying at the forefront of innovation, Estee

Lauder can constantly evolve its offerings to keep pace with ever-changing consumer

desires

Threats: While Estee Lauder enjoys brand recognition and a diverse product portfolio, its

future remains susceptible to external forces An economic downturn could dampen demand

for its luxury offerings, while evolving regulations on safety and sustammability might

demand costly adaptations Furthermore, changing consumer desires for natural or eco-

friendly alternatives could erode market share if Estee Lauder fails to keep pace Finally, the

emergence of innovative competitors threatens to carve out their own niches and chip away

at the established empire Navigating these potential threats demands constant innovation,

agility, and a keen eye on evolving consumer priorities

Pham Minh Anh

Ill MARKET SEGMENTATION AND TARGET MARKET SELECTION

1 Estee Lauder market segmentation

Market segmentation is a marketing term that refers to aggregating prospective buyers into

groups or segments with common needs and who respond similarly to a marketing action

Market segmentation enables companies to target different categories of consumers who

perceive the full value of certain products and services differently from one another

(EVAN TARVER, 2023)

Market segmentation is the process through which Estee Lauder decides to segment the

overall market in smaller segments and groups that have similar attributes, buying behaviour,

socio economic background, etc This is done to reach out to the group of consumers more

efficiently and effectively

Market segmentation factors are divided into four main categories:

e Demographic: age, gender, income, occupation, education level, marital status, etc

e Geographic: geographic location, climate, and region, etc

e Psychographic: lifestyle, values, attitudes, personality, interests, etc

e Behavioral: buying habits, product usage frequency, brand loyalty, etc

The following are the 4 major market segments of Estee Lauder, which include all 4 of the

above categories:

“Successful women”: This segment includes women aged 35-50, living in urban areas, with

high incomes, social status, and an interest in beauty and style They are successful in their

careers and have busy lifestyles, so they want to use high-end products to enhance their

appearance Estee Lauder offers a wide range of luxurious and high-performance products

that cater to diverse needs and preferences But there 1s one type of product that is most

popular among customers in this segment: high-end serums from Estee Lauder (Advance

Night Repair)

Pham Minh Anh

“Fashion lovers”: This segment includes women from 24 to 32 years old, living in cities,

who are interested in fashion and the latest trends They are often young people who like to

express themselves through their style So they can be easily attracted by fashionable and

trendy makeup and skincare products Pure Color Envy Sculpting Lipstick: This lipstick is

a favorite among the fashion crowd for its luxurious feel, bold colors, and long-lasting wear

It comes in a variety of shades to suit any style, from classic nudes to trendy brights The

sculpting formula also flatters the lips and makes them appear fuller

“Health-Conscious”: This segment includes women aged 30-45 who live in crowded cities

and are concerned about health and natural beauty They are typically people with healthy

lifestyles who prefer to use cosmetics and personal care products that contain natural and

gentle ingredients So they would love to use the skincare and makeup products that use

natural and organic ingredients Origins is a brand under Estee Lauder's umbrella focuses on

natural, plant-powered skincare and makeup Their products are free from harsh chemicals,

fragrances, and synthetic ingredients, making them perfect for those with sensitive skin or a

preference for gentle formulas Some popular Origins products for health-conscious

consumers include the Mega-Mushroom Relief & Resilience Soothing Treatment Lotion

Pham Minh Anh

“Men with personality and creativity”: This customer segment is characterized by a

unique, creative personality and a focus on self-expression They are men between the ages

of 25 and 35 who live in bustling cities They are often open-minded, have their own sense

of style, and are not afraid to experiment with new things Estée Lauder can target this

customer segment by focusing on unique skincare, makeup, and fragrance products that help

them express their individuality and style, such as: Tom Ford ombre leather parfum

R

2 Target market

Based on market analysis, the main customer segments and SWOT analysis of Estee Lauder,

the proposed target market that are the most relevant to enterprise is “Successful women”

Estee Lauder has long positioned itself as a brand for successful, sophisticated women

‘Targeting this segment reinforces its existing brand image and resonates with its established

customer base Successful women typically have higher disposable incomes, making them

more likely to afford Estee Lauder's premium products Within the "successful women"

segment, there's a vast array of needs and preferences regarding product types, ingredients,

and price points Estee Lauder's diverse portfolio allows them to cater to this variety

Pham Minh Anh

IV KEY CONSUMER PROFILE

1 Key consumer attributes

A consumer profile is a compilation of consumer information, including demographic,

geographic, psychographic, and behavioral data, to create a detailed understanding of

consumers for marketing and research purposes (mobilewalla, 2023)

The Estee Lauder Woman: A Portrait of Success

Within the vibrant tapestry of modern consumerism, few brands paint their target audience

with such precision and detail as Estee Lauder Their muse, the "Estee Lauder woman,” is

more than just a demographic; she's an ideal, a living embodiment of success, sophistication,

and self-actualization To understand this archetype, we must delve into her four key

dimensions: demographic, geographic, psychographic, and behavioral

Demographic: The Estee Lauder woman typically resides in the prime of her life, aged 35-

50 Her education level is often high, reflecting an intellectual curiosity and a desire for self-

improvement Financially, she’s secure, belonging to the mid-to-high income bracket,

allowing her to inve st in premium beauty products that enhance her image While her

location can vary across continents, she gravitates towards urban and suburban environments

characterized by cultural vibrancy and professional opportunities

Geographic: They are Urban Sophisticates: Major metropolitan centers like New York,

London, and Paris boast a high concentration of the Estee Lauder woman She navigates

these concrete jungles with confidence and grace, her appearance reflecting her urban-chic

sensibilities

Psychographic: Beyond demographics, the Estee Lauder woman is defined by her inner life

Confidence is her defining characteristic, radiating from her polished exterior and

unwavering sense of self She values sophistication, not just in her appearance but also in

her taste and intellect Driven by a strong work ethic and a desire to excel, she juggles

professional ambition with personal fulfillment Yet, amidst her busy schedule, she

prioritizes self-care and indulgence, recognizing the importance of nurturing her spirit and

well-being

Behavioral: The Estee Lauder woman's purchasing habits are as discerning as her taste

Brand loyalty is her hallmark, evident in her repeat purchases and unwavering trust in the

brand's legacy of quality and innovation While department stores remain a familiar terrain,

she embraces the convenience and personalization of online shopping, often engaging with

Pham Minh Anh