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Transcript of Clinique
History: Clinique was the first dermatologist based prestige cosmetic brand, founded in 1968 by parent company Este Lauder. In 2008, Clinique partnered with the top dermatologists, Allegan. Today it is sold in over 139 countries and territories as a leading skincare influence.
Mission: is ‘to provide the highest quality and most effective collection of products to enhance every skin type and tone’, ‘allergy tested and 100% fragrance free’.
Users: men and women for all ages and ethnicities.
Products: skincare, makeup and fragrances in which 25% of their revenue is from foundation alone.
with a proactive stance, Clinique monitors environmental factors that may affect their marketing strategies to stay relevant and on top. These include:
Competition from other high-end cosmetic brands such as MAC, as well as mineral based foundation.
Changes in preferences and demand of target market, from where and how they shop.
Social, political and economic risks to the company’s position, product, price and place. Those factors include regulation, trends, and economic state of manufacturing, distribution, as well as retail country. For example, previous allergy lawsuits affecting the position of Clinique, which was dealt with in regards to partnership with Allegan.
Technology must be up-to-date and consistently innovative.
Competition e.g. Mac.
Unknown allergic reactions
High-quality image and awareness
Qualified and friendly staff
Multiple testings of products with allergies
Partnership with Allergan
Strong competitors Australia’s climate is warm therefore SPF is necessary
Department of Foreign Affairs and Trade (2008) reported, economically in 2008, 4.8million women had income SUN PROTECTION Professional business women High income earners Females 25 - 40 years of age The purpose of this strategy approach is to increase product awareness and positioning, based on: and the target market customer feedback Clinique's marketing and financial objectives OBJECTIVES TARGET
MARKET The potential market of Clinique has been analyzed in these areas, including Sydney, Melbourne and Brisbane. FY2008 Comparison of Top EL Competitors (in $millions)
Company Sales Growth from FY2007 Net Profit Margin Operating Margin Net Earnings
L'oreal (LRLCY)  2.8% 11.12% 14.64% £1,948.30
Products (AVP)  7.6% 8.19% 12.53% $875.30
Estee Lauder Companies 12.4% 6.12% 10.25% $473.80
Revlon (REV)  (1.5) 0.97% 11.51% $57.90
Elizabeth Arden (RDEN) 1.2% 1.74% 4.30% $19.90
Bare Escentuals (BARE) 8.8% 17.61% 31.51% $97.96
1. To achieve total sales revenue of 70 million in 2011, which represents a 3% increase on 2010 with an expected market share of 17%
2. Expand consumer awareness of the Clinique brand from 35% to 45% over the long term period.
3. Enter the medium-income segment of the 25-40 year-old market, using internet services, ordering capability and free make up lessons.
4. Expand the number of dealers by 12%
5. Aim for an average price of $ 49
1. Earn an annual rate of return on sales over the next five years of at least 20%-30% before interest and taxes.
2. Product net profit (BIT) of :
2011 -> 21 million
2012 -> 21.84 million
2013 -> 22.7 million
3. Achieve net sales growth between 3%-4% each year. Brochures
Online site news
Direct trial in store
Serviced with professional staff in a clean, friendly and fashion environment
Budgeted Income Statement
January 1, 2011 to December 31, 2011
Cost of Goods Sold
Merchandise Inventory, January 1 10,000,.000
Total Merchandise Handled 40,000,000
Less Inventory, December 31 19,000,000
Cost of Goods Sold 21,000,000
Gross Profit 49,000,000
Research and development 4,000,000
Total Expenses 28,000,000
Net Income $21,000,000
Target market All enthicities Personality: compulsive Attitude towards product: positive This particular market strategy's overall purpose is to increase awareness, with the aim to increase market size of young, average income women, to increase in sales profit
Loreal's brand name is well know by the market.
The foundation prices are approximately $ 29.94
Loreal sells the product through more intensive distribution channels, whereas Clinique has selective distributio9n channels. Loreal sells foundation at the local supermarkets, pharmacies, internet and department stores.
However, their target market is low- medium income level.
The foundation has wide range of color to select.
(Griffin, J 2008)
The short term marketing strategies such as increase in intergration marketing communication and sales promotion budget to increase awareness, will create liquidity or current assets to fund long term goals.
The short term strategy will build up stepping stones to achieve long term goals The long term strategy
The main marketing strategy features product extension, by increasing the research and developement budget
towards the suitable new and improved product will ensure innovation and relevance in the comestic society. In which this strategy will become a competitive advantage Financial objectives Marketing objectives To be able to achieve financial goals, broken down marketing objectives must be met! Establishing financial and marketing objectives projects future goals to aim towards! Geographic Competitive
Environment However, according to Clinique (2008), at the 2008 World Congress of Dermatology, 85% of the dermatologists surveyed, recommended Clinique to their patients!
Depend on mainly on customer loyalty and word of mouth.
Product quality, brand recognition and differentiation are the most important factors to indulge new customers and increase brand awareness. Make-up Industry According to Eaton (2009), the large cosmetics market is currently worth approximately $40 billion.
In recent years, the increase in demand for ethical consumerism has impacted on the cosmetic industry. Consumers prefer ethical products over ordinary products, therefore forcing management to re-focus their product positioning.
Australia's make-up industry is largely focused on sun protection due to the various climate conditions, including large exposure to sun.
Mineral or natural based cosmetics have increased in demand.
Clinique faces high competition level due to the competitive nature in the cosmetics industry. These competitors offer products with the same mid-end brand positions, such as Loreal, Revlon, Avon, Elizabeth Arden. Other competitive threats toward market share are simply small, private companies with differentiated products.
by providing a fresher and more ethical product! Controls used to monitoring and analyse product is through sales volumes and customer feedback.
Comparing proposed to actual outcomes.
By developing contingency plans to control any unexpected dilemmas, such as strikes. Demographic Behavourial Psychographic According to Australian government (2008) described
Therefore 90% population is living in the southeast coastline of Australia.” Age: 25 - 40 Gender:
female Life cycle: young, single; young married, with children and with no children Income level: medium income level, approximately $50,000 + Occupation: professional and technical, e.g. officals and propertiors, managers, clerical, sales, craftspeople, supervisors, operatives, homemakers etc. Nationally: all ethnicities Purchase occasion: regular occasion Benefits sought: Quality User status: potential user, first-time users, regular users Usage rate: medium and heavy user Loyalty status: strong Readiness stage: interested, aware, informed. Status: mid+ education, income, occupation levels Values, attitudes and lifestyle groupings: something better, look at me 7 P's increase in SPF to 30+
packaging for pink ribbon
water proof facility
vary skin- type product, especially for seasonal usages
modify the product based on the latest technology and fashion maintain at premium price
2% discount on limited time only online purchases
Department stores (Grace Brother & Myers)
Party plans - home, events e.g. fashion week attractive advertisements on social networking sites
magazine promotions with discounts, online sales, fee delivery
free make up course at department stores provision of free gift and gift with purchase
celebrity endorsements, e.g.
cooperate with pink ribbon foundation- every $5 made on each product goes to pink ribbon foundation, donate the pink ribbon organisation
introduce free make up course to female employees
cooperate with Australian fashion show
highly skilled and knowledgable, professional, friendly, informative and persuasive sales representatives
highly motivated, innovative management
top dermatologists and experts
loyal, not price sensitive and complex buying behaviour target customers
Taylor Momsen Competitor such as: ELIZABETH ARDEN
The product position and price strategy of this company are quite similar to clinique
According to Reuters (2010) Elizabeth Arden is found 'primarily in prestige department and specialty stores, perfumeries and travel retail outlets'.
Tartgeting from the mature aged women to the younger market.
Position Strategy Market research: Increase 15% of the budget for market research on the consumer choice process, competitors movements and market trends. Place special emphasis on the professional women environment. Target Market:
Skin care conscious and fashion active market with emphasis on young female buyers. Product positioning: fresh, high quality, premium, and efficient foundation. Product line:
All medium priced product for the primary market. Launch the new range of more highly quality product. price: Stable Salesforce: Expand by 5% to carry out growing operations and promotion methods. Service:
On-line purchase and in store purchase, quick and effective. Integrated marketing communication: Develop a new advertising campaign that supports the positioning strategy. Emphasise medium price and ethical, spf, all in one content in advertisements; increase the advertising budget 15%. Promote through television, fashion magazines, make up courses, online and fashion events.
increase the sales – promotion budget by 15% to develop point of purchase display. Cooperate with Australian fashion events; celebrity endorsements for promotion; donate to pink ribbon organisation, develope information package on sun protection.
Synchronous: Develop the company website that allow consumers to provide the feedback of product by running online surverys. Post make up course video on the website, develop on-line order system.
Research and development:
Increase budget at 25% to develop various product functions and quality control. Mainly to develop SPF to 30+. Product Pricing Place Promotion Physical Evidence Process People improvising existing product high end markets compete with similar brands, therefore price concerns are almost non-exsistent. In addition, product pricing will remain for the reason that Clinique's products are education-intensive. Cooperate with shipping company such as Australian post, Fedex for shipping discount, a free shipping offered to >$100 purchase
Categorising skin type in store/ online testings/ instructed by trained sales representatives
Detailed product explanation
Free make up test
Flexible payment ie. internet purchase
Co-operate with pink ribbon Waterproof function Increase online advertisement to mass market Research and developement Be as unique as you can be. STRENGTHS OPPORTUNITIES THREATS WEAKNESSES “70% territories of Australia are dry area and unsuitable for people to live". Distribution outlets: Increase efforts to penetrate online sales. Controls Overview! Marketing strategy $ $ $ $ $ $ (Clinique 2010) (Clinique 2010)
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(Bird, K 2008) (The sun, n.d.) Keep in touch with your PR target, Online PR guy 2007
(Female sign, Pacific women’s OB 2010)
(Pink ribbon products, Act style 2007) (Clinique, Teen vogue launch fresh faces tour with taylor mommsen, Lynne Greene 2009) (Wikinvest 2010) (Wikinvest 2010) (Clinique 2010) (Clinique 2010) (Bird, K 2008) (Good or evil?, Julie 2009) (Clinique Makeup 2010) (Clinique Bronzo Chic summer 2009, beautifulwithbrains 2009)
(Cliniques new store at Maritime Square 2009)
(Female gender sign 2009)
(State-By-State estimated population profile 2007) (Sosomuch process 2008) (Elizabeth Arden 2009) (Beyonce in Adverts: New Loreal 2009) (Cosmetics Design 2004) (Kotler, P et al. 2010) (Kotler, P et al. 2010) (kotler, P et al. 2010) REFERENCE LIST in-text reference seen when zoomed in.
very small. is around material GROUP STUDENT
NUMBER Thi Nguyen - 16778232 Nana Qin Yang - 17058357 cindy chung (wing sze) - 17014162 (Clinique, Cosmetics stop, 2009)
Tity Lam - 17003399