More Than Just a Pretty Face
Learn about Estee Lauder's journey to becoming an entrepreneur and developing the successful Estee Lauder Companies Inc.
Estee Lauder
Background
- 1930- married Joseph H. Lauter, a businessman in the garment industry
- 1933- had their first son, Lauder
- Continued to develop her beauty business through motherhood
- 1939- divorced her husband but remarried him 3 years later
- 1944- gave birth the second son, Ronald
- Beautician and business executive
- Birth date: July 1, 1908
- Place of birth: Queens, New York
- Death date: April 24, 2014
- Place of death: New York, New York
Estee Lauder Inc.
- 1946: advanced her cosmetic business by forming a corporation
- Estee Lauder Inc. originally was run by her and her husband
- Only offered a handful of products
- Products were originally made in the kitchen of a former restaurant
Background
Obstacles
- Showed interest in beauty at a young age by brushing her mother's hair and applying face creams
- Learned to make her own beauty creams from her uncle, a chemist
- Began selling her products as a teenager at local hair salons
- Marketed her wares as "jars of hope" and gave out free samples
Accomplishments
- She had to pursue her career while trying to balance motherhood
- Hostility at home between herself and her husband
- Marriage issues resulting in divorce, and then remarriage
- There was a limited work space before her company became a corporation
Company Changes
- 1985: Lauder shared journey to high status and wealth in an autobiography Estee: A Success Story
- 1995: Company went public
- Her company was valued at $2 billion
Company Breakthrough
- 1973: Lauder reduced her role in company's day-to-day operations
- She resigned as post but remained company's chairman of the board
- 1983: husband died and she established the Joseph H. Lauder Institute of Management and International Studied at the University of Pennsylvania
- 1947: Saks Fifth Avenue ordered $800 in her products
- These items were popular and sold out in 3 days
- 1953: launched Youth Dew product which was a bath oil that doubled as a perfume and was a hit with consumers
- Business continued to thrive in the next decade and expanded overseas
- Launched the Clinique brand and men's product line Aramis
Qualities for Success
Product Emphasis
- Business efficient
- Passionate
- Intense drive
- Motivation
- Self-disciplined
- Marketing strategy: originated the practice of giving a free gift
- Fragrances
- Skin care products
- Makeup
- Men's toiletries
It's an honor to be a part of the Estee Lauder family
Works Cited
What Can I Learn?
Affect On the Economy
- It is important to find something that you are passionate about. Lauder was passionate about cosmetics so she enjoyed her work.
- It is okay to start small. Lauder began by making her own cosmetics, then opened a company, which eventually became a million dollar corporation
- It is smart to use some type of incentive as a marketing strategy. Lauder gave away a free item with purchases to encourage buyers.
- It is possible to balance motherhood and be a successful entreprenuer
Brains Behind the Beautiful
Current Status of Company
- Has employed 15,000 people
- Grossed nearly $3.4 billion
- Her innovative product ideas and business strategies have turned the beauty business into an international industry
- Her company still remains in the family
- Her oldest son, Leonard, is the chairman emeritus of the Estee Lauder Companies
- Her younger son, Ronald, is the chairman of Clinique Laboratories
- Her grandson, William, is the executive chairman of the Estee Lauder Companies
- Incorporate high end models to represent the company
- Company continues to thrive and includes product lines like Estee Lauder, Mac, Clinique