ESTEE LAUDER. ENVIRONMENTAL
MARKETING ANALYSIS AND MARKETING
PROSPECTS
ASSESSMENT 2
MODULE TITLE: MARKETING MANAGEMENT LCMB7001
LECTURER: TUSHARA BALENDRAN
STUDENT NAME: NADEZHDA KITANOVA
STUDENT NUMBER: 1918675
University of Wales Trinity Saint David
, 1.INTRODUCTION
If one word should be chosen to most accurately define the beauty industry, this would be
“dynamic”. The market has grown significantly in recent years with more and more
individuals and companies joining the industry. What is a new product today is outdated
tomorrow. Buying personal care products is not only a necessity anymore, it’s a trend and a
way to show social status. This first part of this report focuses on analysing the marketing
environment of one of the key players in the cosmetics industry, Estee Lauder.
A visionary of her time, Estee Lauder started her company with four skincare products in
1946. Nowadays the company offers makeup, skincare, haircare and fragrance under
various brand names, known globally. Operating predominantly in the luxury segment, the
company’s mission is “Bringing the best to everyone we touch and being the best in
everything we do”
2. MACRO ENVIRONMENT ANALYSIS
Being aware of the constantly changing environment in which a company operates is
essential for a successful marketing strategy (Hooley, 2012, p.55). The macro environment
of an organisation is the habitat in which it conducts its operations. It is influenced by various
factors, which will be further discussed below in the context of Estee Lauder.
● Political & Legal factors
With its operations conducted in more than 150 countries, Estee Lauder has to comply with
various regulations on import/export, labour, competition and taxes. The company's
headquarters are situated in the United States, a major influencer on the global political
scene. Trump's tax reform, resulting in significant tax cuts for big corporations has given a
chance to the company increasing its profitability or relocating its resources. Despite this, the
political environment could be described as more unfavourable than favourable, because of
the tendency of political instability in some profitable Estee Lauder markets. The emerging
trade war between the United States and China will not only negatively affect Estee Lauder's
competitiveness in the Chinese market but will create a barrier for future expansion in the
Asian country, whose makeup market is forecasted to have 18.3% growth from 2019 to
2024. BREXIT in the UK is another political reform which can create threats for the company.
On the other side, BREXIT will create obstacles for competitor brands, originating from the
EU, which can be beneficial for Estee Lauder growing its market share.
● Economic factors
Undoubtedly, the global pandemic of COVID-19 has been the biggest event of 2020 so far,
resulting in a global distortion of the economy. Employment rates have seen a historical drop
and the huge cash injections from governments to support the economy during the
pandemic will increase inflation rates. This could result in less buying power and increase in
MARKETING ANALYSIS AND MARKETING
PROSPECTS
ASSESSMENT 2
MODULE TITLE: MARKETING MANAGEMENT LCMB7001
LECTURER: TUSHARA BALENDRAN
STUDENT NAME: NADEZHDA KITANOVA
STUDENT NUMBER: 1918675
University of Wales Trinity Saint David
, 1.INTRODUCTION
If one word should be chosen to most accurately define the beauty industry, this would be
“dynamic”. The market has grown significantly in recent years with more and more
individuals and companies joining the industry. What is a new product today is outdated
tomorrow. Buying personal care products is not only a necessity anymore, it’s a trend and a
way to show social status. This first part of this report focuses on analysing the marketing
environment of one of the key players in the cosmetics industry, Estee Lauder.
A visionary of her time, Estee Lauder started her company with four skincare products in
1946. Nowadays the company offers makeup, skincare, haircare and fragrance under
various brand names, known globally. Operating predominantly in the luxury segment, the
company’s mission is “Bringing the best to everyone we touch and being the best in
everything we do”
2. MACRO ENVIRONMENT ANALYSIS
Being aware of the constantly changing environment in which a company operates is
essential for a successful marketing strategy (Hooley, 2012, p.55). The macro environment
of an organisation is the habitat in which it conducts its operations. It is influenced by various
factors, which will be further discussed below in the context of Estee Lauder.
● Political & Legal factors
With its operations conducted in more than 150 countries, Estee Lauder has to comply with
various regulations on import/export, labour, competition and taxes. The company's
headquarters are situated in the United States, a major influencer on the global political
scene. Trump's tax reform, resulting in significant tax cuts for big corporations has given a
chance to the company increasing its profitability or relocating its resources. Despite this, the
political environment could be described as more unfavourable than favourable, because of
the tendency of political instability in some profitable Estee Lauder markets. The emerging
trade war between the United States and China will not only negatively affect Estee Lauder's
competitiveness in the Chinese market but will create a barrier for future expansion in the
Asian country, whose makeup market is forecasted to have 18.3% growth from 2019 to
2024. BREXIT in the UK is another political reform which can create threats for the company.
On the other side, BREXIT will create obstacles for competitor brands, originating from the
EU, which can be beneficial for Estee Lauder growing its market share.
● Economic factors
Undoubtedly, the global pandemic of COVID-19 has been the biggest event of 2020 so far,
resulting in a global distortion of the economy. Employment rates have seen a historical drop
and the huge cash injections from governments to support the economy during the
pandemic will increase inflation rates. This could result in less buying power and increase in
