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Table of Contents
Company Description and Location…………………………………….…..
2–4
Strategic Plan and Focus……………………………………………………….
Mission Statement……………………………………………………..………
Product Mission Statement…………………………………………...…..…..
Corporate Goals…………………………………………………..………...…
Corporate Values…………………………………...…………………...….....
Core Competency and Sustainable Competitive Advantage……………..
5–8
5
5
5–6
6–7
7–8
Situation Analysis…………………………………………………..……………
SWOT Analysis……………………………………………………………...…
Industry Analysis………………………………………………………….…...
Competitor Analysis……………………………………………………...…....
Company Analysis…………………………………………………………..…
Customer Analysis…………………………………………………...……..…
9 – 14
9 – 10
10 – 12
12 – 13
13 – 14
14
Marketing Product Focus………………………………………………….…...
Marketing and Product Objectives………………………………………..….
Target Markets………………………………………………………………....
Product Positioning….…………………………………………………….…..
Product Differentiation...………………………………………………….…...
15 – 19
15 – 17
17
18
18 – 19
Marketing Program………………………………………………………..……..
Product Strategy.….……….……………………………………………..……
Price Strategy……………………………………………………………..……
Place Strategy…….……………………………………………………….…...
Promotion Strategy……………………………………………………….……
20 – 22
20
20
21
21 – 22
Financial Data and Projections……………………………………………….
23
Implementation Plan……………………………………………………………
24
Evaluation and Control………………………………………………………...
25
Resources…………………….………………………………………………….
26
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Company Description and Location
Clinique Laboratories, Inc. (Clinique) is one of the world’s leading manufacturers of
prestige skin care, makeup and fragrance products for women and men, first introduced
by the Estée Lauder Companies, Inc. in 1968. Clinique products are created with the
assistance of dermatologists and extensive research, insuring that they are allergy
tested, 100 percent fragrance free and designed to address individual skin types and
needs. The company’s signature 3-step system of cleansing, exfoliating and
moisturizing is the basis of all Clinique’s skin care products. In 1996 Clinique became
the first brand in the cosmetics industry to launch a company website, and in 1998 it
became the first prestige brand to offer an e-commerce site. Clinique is sold in more
than 9,000 doors in more than 80 countries and territories.
Successful Clinique product launches include: Stop Signs Visible Anti-Aging Serum,
Acne Solutions, Superfit Makeup, Super City Block SPF 25 and Body Clinique.
Dramatically Different Moisturizing Lotion, launched as part of the original system in
1968, remains the number one selling moisturizer in the world, selling one bottle every
four seconds. Another successful Clinique product is the Clinique Happy fragrance line.
Clinique Happy for women was launched in 1997 and is now the number one prestige
fragrance in the country. Following its success, Clinique Happy for men was introduced
in 1999 with rapidly escalating sales. Being an innovative leader in the cosmetics
industry, Clinique launches several new products each year, including the 2001
projected number one seller Clinique Anti-Gravity Firming Eye Lift Cream.
One of Clinique’s focuses is to maintain long-term, loyal relationships with its
customers. Clinique was the first member within the cosmetic industry to devote
significant times and resources to consultant training. Also, Clinique was the first brand
to support the need for everyday sun protection.
Clinique’s parent company, Estée Lauder Companies, Inc., was founded in 1948 by
Estée and Joseph Lauder. The Lauder’s chose New York City for its corporate
headquarters and it remains there today. Over the years, Estée Lauder has built a
family of brands with a unique balance, owning numerous brands that appeal to
different consumer groups. The company’s products are sold in over 120 countries and
its portfolio of brand names include Estée Lauder, Aramis, Clinique, Prescriptives,
Origins Natural Resources, M•A•C, La Mer, Bobbi Brown essentials, Tommy Hilfiger
Toiletries, jane, Donna Karen Cosmetics, Aveda, Stila, Jo Malone, and Bumble and
bumble. Currently, Estée Lauder employs approximately 17,000 full-time employees
worldwide.
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The company has been at the forefront of technology by investing millions of dollars in
Research and Development each year. In general, approximately one third of Estée
Lauder’s sales volume in a year comes from products developed internally within the
previous three years. Approximately 300 skilled chemists, biologists, microbiologists
and physicist are currently on staff. These research facilities are located in New York,
Minnesota, Ontario, Belgium, and Japan.
Financially Estée Launder Companies Inc. has had much success. For fiscal year
2000, net sales were $4.4 billion and net earnings were $341.1 million. The company
has recorded more than 45 years or consecutive annual sales increases. The Class A
Common Stock of the company is listed on the New York Stock Exchange under the
symbol EL.
Estée Lauder Company Inc. Corporate Timeline
1946
Joseph and Estée Lauder found Estée
Lauder in New York City.
1948
The first department store account is
established with Saks Fifth Avenue.
1960
International operations begin, launching
products in the United Kingdom.
1964
Aramis, a line of prestige fragrance and
grooming products, is launched.
1967
Mrs. Estée Lauder is named one of ten
Outstanding Women in Business in the
United States.
1968
Clinique Laboratories, Inc. is founded.
1979
Prescriptives is founded.
1985
Mrs. Estée Lauder 's autobiography, ESTÉE:
A SUCCESS STORY, is published.
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1990
Origins is founded.
1993
Aramis Inc. signs a licensing agreement with
Tommy Hilfiger. This marks the company's
first licensing venture.
1994
Estée Lauder Companies Inc. acquires a
majority interest in M•A•C Cosmetics.
1995
The Estée Lauder Companies Inc. acquires
Crème de la Mer and Bobbi Brown
essentials.
1996
Clinique launches Website on the Internet,
www.clinique.com.
1997
Clinique launches a new fragrance, Clinique
Happy. Estée Lauder Companies Inc.
acquires 100% of Sassaby, Inc., owner of the
color cosmetics brand jane, as well as Donna
Karen and Aveda beauty products.
1998
Clinique launches interactive e-commerce
site at www.clinique.com, becoming the first
prestige cosmetic brand to sell its entire line
of cosmetics over the Internet.
1999
The Estée Lauder Companies Inc. acquires
Stila Cosmetics, Inc. and Jo Malone Limited.
2000
Estée Lauder Companies Inc., Chanel and
Clarins announce the development of a
relaunched www.gloss.com with brands of all
three companies to be represented on the
site in 2001. Acquires Bumble and bumble.
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Strategic Plan and Focus
The following five sections describe in detail the corporate strategy used in designing
this marketing plan: (1) the corporate mission statement, (2) the product mission
statement, (3) the corporate goals, (4) the corporate values, and (5) the core
competencies and competitive advantages.
Corporate Mission Statement
Our mission at Clinique is to be the world’s leading manufacturer and marketer of
prestige skin care, makeup and fragrance products. Clinique strives to always meet
individual skin care needs through innovative products that are allergy tested, 100
percent fragrance free, and designed under the guidance of dermatologists and
research. Clinique products are never tested on animals.
Product Mission Statement
Clinique’s Anti-Gravity Firming Eye Lift Cream produces firmer, less lined, brighter skin
all around the eyes. Its patent pending formula renews the skin’s elasticity by boosting
natural collagen, building a supple cushion back into time-thinned skin and reducing the
signs of aging.
Corporate Goals
For the subsequent three years, Clinique will recognize the following goals:
Non-Financial Goals
¾ Continue to develop innovative products in accordance with our mission
statement, adding three new products each year.
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¾ Establish a presence in Latin American countries.
¾ Launch www.gloss.com website with Chanel and Clarins by December 2001.
¾ Develop e-commerce websites for Aramis, Prescriptives, La Mer, Tommy Hilfiger
Toiletries, and Stila brands.
¾ Explore entering a new product line, possibly in nail care or deodorant, that
would further enhance Clinique’s position as a prestige cosmetic company.
Financial Goals
¾ Increase sales by at least 15% per year for the next three consecutive years.
¾ Increase revenue growth by at least 15% per year for the next 3 years.
¾ Increase Return on Investment by 20% per year for the next 3 years.
¾ Budget $10 million for Research and Development of new products and product
lines each year for the next three years.
Corporate Values
“
At Clinique, we develop and create high-quality prestige products with individual
consumer needs in mind. All our products are 100% fragrance free and allergy tested,
as we understand the importance to maintaining healthy skin and everlasting beauty.
We believe that understanding and aiding consumers is fundamental in maintaining
positive relationships and thus sales growth.
We also believe in the need to help people who are less fortunate then ourselves and
have incorporated this belief into our corporate values. Clinique Laboratories, Inc. is
dedicated to the idea of “Bringing the Best to Everyone We Touch.” We have joined
forces with our parent company, Estée Lauder Companies Inc., to initiate a philanthropy
program that supports the growth of numerous organizations dedicated to health and
human services, education, the environment and the arts. We strive to be responsible
business people and citizens in every community that we serve. Our corporate fund
drives help sustain local public school and charities. We work to preserve the
environment through recycling programs and we strongly endorse employee
volunteerism.
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Some of our community involvement projects include:
¾ The Estée Lauder Companies’ Breast Cancer Awareness Program – introduced
in October 1992 this program aims at drawing public attention to breast cancer
and helps spread the message that early detection saves lives.
¾ First Step Job Readiness Program – an intensive, sixteen-week job readiness
program that helps homeless and low-income woman gain the skills and
confidence needed to obtain economic independence.
¾ Dear Santa Holiday Program – each year, Clinique volunteers “adopt” many
hundreds of children’s letters written to Santa and fulfill their wishes.
¾ Partnerships with School, including:
™ The Murry Bergtraum High School for Business Careers.
™ P.S. 20, a New York City public elementary school.
™ Roberto Clemente High School – Clinique supports this school through
donations of computer equipment and office supplies.
™ P.S. 811X, a Bronx school that offers a unique environment for disabled
students.
Core Competencies and Competitive Advantage
Clinique Laboratories, Inc. has established a reputation as one of the world’s leading
manufacturers and marketers of prestige skin care, makeup and fragrance products. As
we realize no two people have the same beauty needs, we provide high quality products
that are tailored to meet individual preferences. We receive moderate to premium
prices for our products, as trained scientists and dermatologists extensively researched
to produce them. We have incorporated a “product differentiation” strategy, in order to
distinguish ourselves from competitors who do not spend as much of their revenue on
developing products that are the safest for consumers and that meet their individual
needs.
Clinique’s Anti-Gravity Firming Eye Lift Cream will benefit from these highly developed
core competencies. We can position this product as a premium product and market
accordingly, as this product holds true to the idea of creating products for individual
customer needs and is free of harmful chemicals.
Clinique has achieved a sustainable competitive advantage in the cosmetic industry by
creating an expectation in the minds of consumers that products are free of fragrances
and chemicals causing allergies are of superior quality to the less-researched option
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from our competitors. Our limited distribution channels complement the premium image
associated with our brand. These upscale department stores and specialty retailers
offer a limited amount of space on their floor to what they deem to be respected
cosmetic manufacturers. After distributing in these stores for over 30 years, it would be
difficult for our competitors to take over our position. An important advantage of the
Anti-Gravity Firming Eye Lift Cream is that it has a unique, innovative formula, with U.S
and International Patents pending. We will use a penetration pricing strategy, as the
products by our competitors are currently overpriced and of lesser quality. By doing
this, we believe we will be able to gain a considerable amount of market share.
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Situation Analysis
SWOT Analysis
Figure 1 below shows both the external and internal factors that influence the market
opportunities for Clinique. The SWOT analysis will summarize the strengths,
weaknesses, opportunities and threats that Clinique is currently facing.
Figure 1. SWOT chart
Internal Factors
Management
Strengths
Weaknesses
Over 30 years experience
overseeing the design and
initiation of new products and
product lines.
All members of Clinique’s
Board of Directors are from its
parent company, Estée Lauder
Companies, Inc.
Offerings
High-quality, tailored products
that are free of harsh
chemicals. Our products are
never tested on animals.
Competitor products are
offered to public at a higher
price, making Clinique’s
products appear to be of lesser
quality.
Marketing
Aggressive, well-funded
marketing programs aimed at
building brand equity.
Products are rarely discounted.
Personnel
Believe strongly in the quality of Employees at the customer
our products and in our
sales level are often
corporate philanthropy
inexperienced.
initiatives.
Finance
Financial support from Estée
Lauder Companies, Inc., who
have recorded more than 45
years of consecutive sales
increases.
Large portion of funds spent on
Research and Development of
new products and product
lines.
Manufacturing
Numerous manufacturing
facilities in the United States,
Belgium, Switzerland, the
United Kingdom, Canada and
Australia.
Suppliers of chemicals are
often late with shipments.
Research &
Development
More than 300 chemists,
biologists, and microbiologists,
currently on staff.
Extremely costly to develop
products free of fragrance and
allergy inducing chemicals.
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Figure 1 continued
External Factors
Consumer/Social
Opportunities
Threats
Product is marketed toward
upper-middle class market
as a prestige product that
is extensively researched,
better for your skin, and
personalized to individual
preferences.
Customers feel they are
paying too much for a
product that they feel they
can find a cheaper
alternative for at a discount
store.
Competitive
Anti-Gravity Firming Eye
Lift Cream has a unique,
new formula, with US and
International patents
pending.
Competitors are rapidly
developing similar products
with additional features and
benefits.
Technological
Customers can buy
products online at
www.clinique.com and can
be delivered anywhere in
the United States.
High website start up and
maintenance costs.
Economic
Currently the United States
has just gone through a
period of rapid economic
growth, and thus
consumers are wealthier.
Economy is expected to
level off, making consumers
more conscious of their
purchase decisions and
less willing to purchase
premium products.
Legal/Regulatory
Clinique products are
extensively tested to
ensure that they meet all
safety and regulatory
guidelines.
Clinique’s products are not
tested on animals and
therefore use more
expensive methods to
ensure they meet safety
standards.
Industry Analysis
The cosmetic industry is a $26 billion per year industry at the sales level in the United
States alone. Because of the opportunity for extensive sales and revenues, there are
numerous manufacturers throughout the world. As a result, no single supplier holds a
market share greater than 17%. Estée Lauder Companies, Inc. holds an 8% market
share. Other leading manufacturers include: Unilever, Proctor and Gamble, Cosmair.
Colgate, Revlon, and Bristol-Myers Squibb. There are such a large number of
manufacturing firms tapping into this market that potential entrants would have
tremendous difficulty raising the revenues necessary to enter the market or to continue
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in Research and Development to gain any portion of the incredibly competitive market
share.
Key societal trends that will impact cosmetic products sales throughout the world
include:
¾ An increase in the number of middle aged customers, as the Baby Boomer
generation has grown up.
¾ A paradigm shift to an industry that is focused on “relationship marketing.”
¾ Increased concern for consumer safety.
¾ Popularity of buying from firms who are socially conscious.
Clinique’s Anti-Gravity Firming Eye Lift Cream will benefit from these trends. This product
will be targeted at middle-aged consumers worried about the signs of aging and thus, as
trends indicate, has an extremely large potential target market. Clinique is also a leader
in relationship marketing, as they were the first in the cosmetics industry to devote
significant time and resources to consultant training, and were the first to introduce
“one-on-one” consultations to consumers. We use natural chemicals that are free of
any harmful toxins and our products are never tested on animals. Finally, Clinique’s
corporate values are well known.
Clinique also needs to analyze the outside forces affecting the cosmetics industry by
using Michael Porter’s Five Forces Model. Porter suggests that each industry analysis
should include the following: (1) potential entrants, (2) suppliers, (3) buyers, (4)
substitutes, and (5) industry competitors.
Potential Entrants
As mentioned earlier, entrance into the cosmetics industry is extremely difficult. This is
due to high start up costs in Research and Development and limited accessibility to
market share. Clinique has strong brand recognition and a very loyal customer
following. With the support of one of the country’s founding cosmetics corporations,
Estée Lauder Companies, Inc., we do not perceive that any possible new entrants
would be of significant concern at this time, however, we will continue to regulate this.
Suppliers
Maintaining a positive relationship with our suppliers is crucial to Clinique’s success.
Our products are created using specific chemicals that are proven to not be of harm to
the skin. There are a limited number of suppliers for these chemicals, giving them
significant bargaining power. The power of the suppliers, however, does not exceed the
power of Clinique and its parent company, Estée Lauder Companies, Inc. Estée
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Lauder Companies, Inc. has a large amount of financial backing and could feasibly
develop their own supply company if need be.
Buyers
Clinique products are sold largely in upscale department stores and specialty retailers
and retain a prestige image and premium pricing. Buyers have a limit on the places
they can buy these products and substitutes are often of poor quality. Also, brand
preference for the Clinique name is very strong. As a result, buyer power of our
products is very limited. If one of the major stores in our distribution channel decided to
pull our products from their stores and replace them with another brand in which they
have more influence, buyer power would increase.
Substitutes
Our target market demands products that are of premium quality and not harmful to
their skin. Clinique is a brand name that has a strong consumer preference backing it.
There are no equivalent substitutes for our products that provide the same remarkable
results. Our products are patented and confidentially developed in our labs. Because
of these facts, it is reasonable to assume that the threat of substitutes is unsubstantial.
Industry Competitors
Our major competitor in the cosmetics industry is Lancôme, a cosmetic retailer of
makeup, skin care, and fragrance products based in Paris, France. Our major
advantage over Lancôme is that we have a greater distribution of our products
worldwide. Also, Clinique has the backing of its parent company, Estée Lauder
Companies, Inc., a very strong and influential member of the industry. Lancôme, on the
other hand, is its own corporation and has more limited financial resources. Lancôme
does, however, have one major advantage over Clinique: it charges a slightly higher
price for its products, making Clinique’s brand appear to be of a lesser quality.
Competitor Analysis
Our industry analysis described the cosmetics industry’s major manufacturers. This
industry is very competitive, as there are currently several well-established firms in the
market. Because there is such a large market, products have been segmented into
smaller, specialized groups, such as makeup, skincare, sun and body care, and
fragrances. Many members of this industry produce products for both men and women,
further segmenting their product lines. There are also three main types of cosmetic
lines: professional products, used in the entertainment business or for reconstruction
purposes, salon products, manufactured by different salons, such as Aveda or Paul
Mitchell, and finally retail products, including both premium products, such as Clinique,
or products sold in discount stores, such as Revlon.
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Our leading competitor, as mentioned in the five forces analysis, is Lancôme. The
products they market are also considered high quality and have strong brand
recognition. Lancôme distributes their products in the same retailers and upscale
department stores as Clinique. Lancôme currently has a product that is similar to
Clinique’s Anti-Gravity Eye Lift Cream, however, this product is relatively outdated,
highly priced, and does not produce the same remarkable results that Clinique’s AntiGravity Firming Eye Lift Cream produces. In this marketing plan we will also consider
our other sources of competition in the premium product cosmetic industry: Aveda and
Shiseido. Please note: Aveda is one of Clinique’s main competitors, however, it is also
owned by Estée Lauder Companies, Inc.
The following is a list of our product and our competitors leading products:
Clinique’s Anti-Gravity Firming Eye Lift Cream
Lancôme’s RÉNERGIE EYE Anti-Wrinkle And Firming Eye Cream
Shiseido’s Eye Revitalizer
Aveda’s Pure Vital Moisture Eye Cream
$28.50
$45.00
$49.00
$32.00
Price (In Dollars)
Suggested Retail Price
60
40
20
0
Clinique
Lancome
Shiseido
Aveda
Company
At Clinique we are striving to be competitive in our pricing of our Anti-Gravity Firming
Eye Lift Cream, while at the same time offering a prestige product that is of extreme
quality and true to our mission. By offering our product at a lower price, we will be able
to penetrate the market quickly.
Company Analysis
Clinique has existed in United States for more than 30 years as a leader in quality,
prestige cosmetic products. Over the years, Clinique has expanded and is now a
competitor in the global market. Currently, Clinique is sold in over 83 countries and
territories. Clinique is a member of Estée Lauder Companies, Inc., one of the world’s
leading manufacturers and marketers of quality skincare, makeup, fragrance and hair
care products. Clinique has been a very profitable branch for Estée Lauder and will
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continue to be so in the future through the strength of existing brands and the
development of new products.
At Clinique we focus on quality products that are fragrance free and do not consist of
chemicals that would stimulate allergies. We have created many different versions of
our product lines to suit individual customer needs. We have over 300 chemists,
biologists, and microbiologists on staff to help create our patent-protected products.
At Clinique we have a strong corporate philosophy to help our communities. We donate
resources to several organizations, such as schools with underprivileged children. We
also volunteer to raise awareness of political issues, such as our Breast Cancer
Awareness Program. Over the years, we have supported numerous activities dedicated
to health, human services, education, the environment, and the arts. We are committed
to “Bringing the Best to Everyone We Touch.”
Customer Analysis
With a wide variety of product offerings and lines, we have a fairly large customer base.
Typical customers range between the age of 22 and 55. Our consumers are mainly
women, however we do offer male product lines. Clinique customers are professionals,
earning incomes that would distinguish them as members of the upper middle class.
They typically live in urban areas or suburbs, where fashion trends are more prevalent.
These customers are concerned about their skin, looking for a more natural approach to
beauty. Also, the majority of customers are loyal Clinique shoppers and seldom
purchase a different brand of cosmetics.
In accordance with the Value and Lifestyles (VALS) analysis, Clinique consumers would
typically fall into the actualizers grouping. Our customers typically have a large amount
of financial resources, a common trait of an actualizer. Also, they enjoy the “finer
things” in life and purchase premium products. Actualizers are receptive to new product
technologies.
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Market-Product Focus
This section describes the three-year marketing and product objectives for Clinique’s
Anti-Gravity Firming Eye Lift Cream. It includes a description of our target markets and
our product positioning and differentiation strategies.
Marketing and Product Objectives
The following are the market objectives that Clinique Laboratories, Inc. hopes to
accomplish through the marketing of its Anti-Gravity Firming Lift Cream:
Non-Financial Goals
™ Launch product by March 2001, with distribution primarily in upscale department
stores, specialty retailers, upscale perfumeries and pharmacies, as well as online
at www.clinique.com.
™ Gain a 5% market share among existing anti-aging products, with a 10% market
share among prestige brands.
™ Sell a minimum of one million units in the first year, with at least a 25% increase
in sales in the next two consecutive years.
™ Continue our global marketing strategy by entering markets in Latin America.
Financial Goals
™ Generate at least $10 million in profits during the first year.
™ Increase revenue growth by at least 10% per year for the next 3 years.
Our specific market strategy will be that of “market development.” The cosmetics
industry is crowded with many different manufacturers all striving to make their products
successful. At Clinique we are determined to continue our growth in the marketplace
and believe that our development and distribution in Latin America will provide us with
the potential to substantially increase our earnings.
Due to the defining characteristics of our Anti-Gravity Firming Eye Lift Cream, we have
developed a “product differentiation” marketing strategy. Our product is made from
ingredients that are allergy tested and fragrance free, designed to lift up and firm skin
around the eyes that have been affected by time and gravity. The Clinique difference is
that the Anti-Gravity Firming Eye Lift Cream is made from a patent-pending formula that
renews elasticity by boosting natural collagen, thus building supple cushion back into
time –thinned skin, a feature that can not be matched by our competitors.
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Figures 2, 3 and 4 show how Clinique is moving in the right direction for future growth
and development. Figures 2 and 3 show where we currently stand in the cosmetics
market and Figure 4 identifies the strategy we will take in the future.
Figure 2. Market Attractiveness
Attribute
Market
Overall Market Size
Attractiveness Market Growth Rate
Historical Profit Margin
Competitive Intensity
Technological Requirements
Environmental Impact
Social/Political/Legal
Weight
.05
.05
.10
.15
.20
.25
.20
1.00
x Rating
5
1
3
4
4
5
3
= Value
0.25
0.05
0.30
0.60
0.80
1.25
0.60
3.85
Weight
x Rating
= Value
.05
.05
.15
.10
.05
.05
.10
.10
.05
.05
.20
.05
1.00
2
2
5
5
5
3
4
4
3
3
5
5
0.10
0.10
0.75
0.50
0.25
0.15
0.40
0.40
0.15
0.15
1.00
0.25
4.20
Figure 3. Business Strength
Attribute
Business
Strength
Market Share
Share Growth
Product Quality
Brand Reputation
Distribution Network
Promotional Expenses
Production Capacity
Production Efficiency
Unit Costs
Material Costs
R & D Performance
Managerial Experience
Rating Legend
1
2
3
4
5
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Very Unattractive
Unattractive
Fair
Attractive
Very Attractive
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Figure 4. Portfolio Classification
Market Attractiveness
5.0
Protect Position
Invest to Build
Build Selectively
Build Selectively
Selectivity/
Manage Earnings
Ltd. Expansion
or Harvest
Manage for
Earnings
Divest
3.85
3.67
2.33
Business
Strength
Protect & Refocus
0.00
5.0
4.20
3.67
2.33
0.00
Figure 4 above shows us that we are in a “protect position.” Clinique has established
itself as a prestige cosmetics company and has been very successful as a result. The
cosmetics industry will always be open to potential entrants and competitors trying to
force us out of this position. Because of this Clinique must continue to grow through
Research and Development, and continue to promote our products competitive
advantages over the rest of those in the industry.
Target Markets
For our products, we focus on targeting the end user, as these consumers make the
decision to purchase. Our target market is professional people over the age of 35 and
will most likely be women. These women are concerned with the signs of aging and
trust Clinique, as they believe Clinique is devoted to quality skin care products. These
professionals earn middle to upper class incomes and live in urban and suburban areas.
They are buyers of fashionable clothing, premium products, and shop in upscale
department stores. Also, these customers are often socially and naturally conscious
and are drawn to Clinique.
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Product Positioning
Proper product positioning can either lead to the success or failure of a new product. At
Clinique, we understand this statement and are committed to finding the right niche for
each of our product lines. We have developed our products with the belief that each
person is different and as a result has different beauty needs. It is our mission to
provide these consumers with the products to fit those needs, ones that are allergy and
fragrance free, never tested on animals, and are backed by years of Research and
Development to prove that they are of exceptional quality, “Bringing the Best to
Everyone We Touch.”
Clinique’s Anti-Gravity Firming Eye Lift Cream is designed to provide for its users firmer,
less lined, brighter skin all around the eyes. This densely hydrating cream actually lifts
and firms skin, addressing the effects of time and gravity. Our product is positioned as
a cream that will combat the signs of aging through its patent pending formula that
renews elasticity by boosting the body’s natural collagen and thus building supple
cushion back into the skin. It provides results that go above and beyond.
Product Differentiation
Product differentiation is the significant other half of product positioning: the two must
work together to achieve success. Many manufacturers offer creams that are designed
to reduce the signs of aging around the eyes. Thus, it is detrimental to the success of a
product that it carries additional benefits and features that make it more attractive to the
consumers than the industry alternatives. Clinique’s Anti-Gravity Firming Eye Lift
Cream differentiates itself from its competitors through the advantages listed below:
¾ Patent-pending formula that renews elasticity by boosting natural collagen.
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¾ A price that is considerably lower than its major competitors. We provide a highquality product with a price that is more suitable and desirable.
¾ Allergy-tested and 100% fragrance free.
¾ Never tested on animals.
¾ Strong brand equity.
¾ Backed by years of research from Clinique’s notable Research and Development
department.
¾ Easy to obtain through upscale department stores and retailers, as well as on ecommerce website. Lancôme is the only other major competitor that currently
has set up such a website.
¾ Backing from strong parent company, Estée Lauder Companies, Inc.
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Marketing Program
The section below will describe how Clinique plans to utilize the four components of the
marketing mix: (1) product strategy, (2) pricing strategy, (3) place strategy and finally (4)
promotional strategy.
Product Strategy
Our product strategy for Clinique’s Anti-Gravity Firming Eye Lift Cream is “product
differentiation.” Products designed by our competitors to reduce the signs of aging have
over and over proved to be ineffective and overly priced. At Clinique, we have changed
this notion. The Anti-Gravity Firming Eye Lift Cream firms and brightens the skin
surrounding the eye, making your skin vibrant and more youthful. Our product uses a
well-researched, natural approach to do this: our formula boast collagen, a natural
ingredient in the skin that visibly reduces the signs of aging. The Anti-Gravity Firming
Eye Lift Cream is a revolutionary fountain of youth for your skin.
Price Strategy
In order to establish ourselves in this anti-aging products market, we are offering the
Anti-Gravity Firming Eye Lift Cream at a moderate price point. The suggested retail
price for this product will be $28.50, a price that is slightly less than our major
competitors. We are currently trying to penetrate the market with a high quality product
at a moderate price, as shown in Figure 5. The perceived benefits of our product is high
with respect to the price, therefore Clinique is taking on a value-pricing strategy.
Figure 5. Price/Value Map for Clinique’s Anti-Gravity Firming Eye Lift Cream
High
Skim
Price
Premium
Average
Low
Inferior
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Place Strategy
Our customers can purchase our products through a couple of different channels.
These channels consist primarily of upscale department stores, specialty retailers and
perfumeries and pharmacies. Examples of these channels would include Sax Fifth
Avenue, Macy’s, Nordstrom’s, Neimann Marcus, Dayton’s, Hudson’s, and Marshall
Fields. Clinique is sold to a lesser extent at freestanding company stores and spas,
stores on cruise ships, and in-flight and duty free shops in airports and cities. Our
products are sold in over 83 countries and territories.
The Anti-Gravity Skin Firming Eye Cream will also be available at www.clinique.com,
Clinique’s interactive online shop. Customers in the United States can order from this
site and have shipping timeline options, depending on their own personal preference.
Clinique uses a limited distribution channel to establish itself as a prestige cosmetic
company. Our company will distribute the Anti-Gravity Firming Eye Lift Cream through
these sources beginning in March 2001. By doing so, Clinique can charge a premium
price for its high quality product.
Promotional Strategy
In order to gain market share for our product, we will have to implement a strong
promotional effort, advertising externally, in-store, as well as on our website. We will
implement a pull strategy for the Anti-Gravity Firming Eye Lift Cream, directing the
promotional mix at ultimate customers to encourage them to ask the retailer for the
cream.
For our external strategy will be to launch an aggressive national ad campaign.
Magazines such as Cosmopolitan, Glamour, Allure and Martha’s Stewart’s Living will
display a full-page advertisement with large colorful pictures of the cream. We will also
display an ad monthly in the Sunday edition of the New York Times. We will advertise
on billboards, such as the electronic billboard at Times Square, New York. Finally, the
Anti-Gravity Firming Eye Lift Cream with be advertised via commercials on the Lifetime
television station, as well as during the Oprah show, hosted by Oprah Winfrey. This
external advertising initiative will be in effect for 3 years.
We will also launch an aggressive in-store marketing strategy to gain customer
exposure and demand for the Anti-Gravity Firming Eye Lift Cream. In March 2001, we
will distribute smaller, sample size versions of the cream through our “Clinique Bonus”
program, which is designed to attract customers by giving them sample sizes of a few of
our products when they spend over $20.00. The Anti-Gravity Firming Eye Lift Cream
will also be coupled with other Clinique skin care products and then sold as a bundle
package. We will send each of our distribution sites large color advertisements to
display in their stores, as well as small brochures explaining our product and its
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features. In addition, we will train our consultants to suggest the product to potential
customers when they are giving individual facials or selling behind the counter.
After launching our product in March 2001, we will display a specialty advertisement for
our product on the homepage of our website. In addition, we will purchase banners on
different well-traveled websites, such as www.yahoo.com or www.netscape.com,
leading to our company’s homepage.
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Financial Data and Projections
This section provides an overview of our past sales data and our three-year projected
sales revenue.
Past Sales Data
Ever since Clinique’s establishment in 1968 sales have increased between 15% - 20%
each year. The following are the financial statistics for 2001:
Total Gross Income From Sales
Less Cost of Goods Sold
Less Operating Expenses
Profit Before Taxes
$5.2 million
($1.0 million)
($2.6 million)
$1.6 million
Clinique should make approximately $1.2 million after tax expenses. This gives us a
profit margin is of about 23%.
Three Year Projected Sales Revenue
The projected sales will increase by 15% to 20% for the next three years. We will be
increasing our Research and Development in order to meet our goal of producing three
new products each year. Also, we will be spending large portions of our revenue on
advertising and further development of our website. As a result, net profits will go down.
1
Total Gross Income from Sales
Less Cost of Goods Sold
Less Operating Expenses
Profit Before Taxes
2002
$6.0
$1.8
$3.2
$1.0
2003
$6.9
$2.6
$4.0
$0.3
2004
$8.3
$2.9
$3.8
$1.6
We believe that with the introduction of our Anti-Gravity Firming Eye Lift Cream, our
expansion into Latin America, and our continual development of new products, Clinique
should be able increase its profits before tax from $1.0 million to $1.6 million in the next
three years.
1
All sales figures are in millions
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Implementation Plan
The implementation plan shows how Clinique plans to turn its marketing efforts into
results. The following Gantt Chart will show an overview for our projected plans.
Figure 6. Gantt Chart
Activity
Timeline
2002Q1
2002Q2
2002Q3
2002Q4
2003Q1
2003Q2
2003Q3
2003Q4
2004Q1
2004Q2
2004Q3
2004Q4
Expand into New Markets
Latin America
****** ****** ****** ****** ****** ******
Build and Expand
Increase Number
of Retailers
Launch New
Products
****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ******
****** ******
****** ******
****** ******
Other
Build Strong
Relationships with
Retailers
Increase R & D
Spending
Develop Product
Lines
Increase
Advertising
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****** ******
****** ******
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Evaluation and Control
Through this marketing plan, Clinique has strategically defined its three-year marketing
outlook for both its company and for its new product launch, Clinique’s Anti-Gravity
Firming Eye Lift Cream. Our corporate and product missions and goals have been
projected and our methods for achieving these goals defined. It is now our mission to
implement this plan. To guarantee success, Clinique will need to re-evaluate our
progress towards these goals each quarter to determine if our marketing mix is working
properly and profitably. To do so, we will assess both our Gantt Chart and our sales
figures. If it appears we are not meeting our goals each quarter, we will need to analyze
our marketing plan and make adjustments if we determine that we have set
unreasonable goals. The final authority for implementation and evaluation of this
marketing plan is the project Marketing Director.
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Resources
™
www.clinique.com
™
www.elcompanies.com
™
Estée Lauder Companies, Inc. 2000 Annual Report
™
www.lancome.com
™
www.aveda.com
™
www.shiseido.com
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