Clinique laboratories

Clinique Laboratories, Inc. (Clinique) is one of the world's leading cosmetics companies that established by the Este Lauder Companies, Inc. (Estee Lauder) in 1968 and now we can find Clinique's cosmetic products in 139 countries and territories. Este and Joseph Lauder is the founder of Este Lauder Companies, Inc. and they established this company in New York City in 1946. "Bringing the Best to Everyone We Touch" is the mission statement of all brand names that hold by Este Lauder Companies. In order to build a good reputation in the competitive cosmetics market and to maintain the sales growth of the products, Clinique believes that the significance of understand, helping and maintain good, positive and loyal relationships with its customers (http://www.clinique.com, 2009; http://www.elcompanies.com, 2009).

The products that Clinique sell in the market are its prestige skin care, fragrance and make up products. These products are produced for women and men of all ages and ethnicities with their different skin types and skin problems. Besides addressing individual skin types and concern, Clinique products are created to insure 100 percent fragrance free and allergy tested through its extensive research by skilled dermatologists in its laboratories (http://www.clinique.com, 2009).

The basis of all Clinique's skin care products is Clinique's signature 3-step system which includes cleansing, exfoliating and moisturizing. Successful Clinique products include Moisture Surge Extended Thirst Relief, Long Last Glosswear SPF

15, Anti-Blemish Solutions Clarifying Lotion, Anti-Blemish Solutions Clear Blemish Gel, Superdefence SPF25 Age Defense Moisturizer, and Even Better Skin Tone Corrector (http://www.clinique.com, 2009). The most successful Clinique's product is Dramatically Different Moisturizing Lotion that launched in 1968. One bottle of this world's best selling moisturizer is sold every four seconds in the market (http://www.econ.univpm.it/servizi/hpp/micozzi/documenti/Clinique_Marketing_Plan.pdf, 2007). Clinique, an innovative brand in the cosmetics market, launches a number of novel products every year. For example, Even Better Clinical Dark Spot Corrector is the newest skin care Clinique's product that will be launch in coming March, 2010. This anti-aging product is created to help customers who desire to lighten their appearance of age spots, dark spots and skin discolorations (Naughton, 2009).

Clinique launches its company website on the internet in 1996 and it is the first brand in the cosmetic market that has its own company website. In 1998, Clinique started to sell its all ranges of cosmetics products over the internet through its interactive e-commerce site at its company website (http://www.clinique.com, 2009).

Clinique's parent company, Este Lauder Companies, Inc. (Este Lauder), sells its luxurious cosmetics, skincare, fragrance and hair care products in over 140 countries and territories. Other than established Clinique, Este Lauder Companies also established another 29 brand names like Este Lauder, Lab Series Skincare for Men, La Mer, Aramis, Tommy Hilfiger, Prescriptives, Aveda, Darphin, good skin, Missoni, Daisy Fuentes, Ojon, Eyes by Design, grassroots, Kiton, Bobbi Brown, Flirt!, Bumble and bumble, MAC, Donna Karan, American Beauty, Mustang, Sean John, Daisy Fuentes, Coach, Missoni, Origins, Micheal Kors and Jo Malone (http://www.elcompanies.com, 2009).

Presently, there are approximately 32,000 full time employees includes about 300 skilled chemists, biologists, microbiologists and physicist are on staff in Este Lauder. Annually, Este Lauder invests millions of dollars in its Research and Development and their scientists work in research facilities that located over the world like in New York, Ontario, Belgium, Minnesota, Canada, France, U.K, China and Japan (http://www.elcompanies.com, 2009; Facial care in US).

Being a world's leading company in the cosmetics market, Este Lauder gains high achievement financially. Annual sales reports of the company show that the sales of the company rise successively for more than 45 years. Its net sales and net earnings were $7.3 billion and $218 million respectively for fiscal year 2009. Este Lauder has the Class A Common Stock, with the symbol EL is listed in the New York Stock Exchange (http://www.elcompanies.com, 2009).

Marketing and Product Objectives
  • Boost the sales for Clinique's Anti-Gravity Firming Lift Cream by improving our marketing strategy.
  • Generate at least a 35% increase in sales for this cream during the first year and at least 25% in the next two consecutive years.
Target Markets

For Clinique's Anti-Gravity Firming Eye Lift Cream, recently, our target market is professional women with late 30s who are apprehensive of the signs of aging. Most of these women are Clinique's loyal customers who trust the quality of Clinique skin care products and conscious of Clinique's skin care products. These professional women have quite high purchasing power with their high or moderate incomes. They like to do purchasing in upscale departments that sell premium skin care products and trendy garments (http://www.econ.univpm.it/servizi/hpp/micozzi/documenti/Clinique_Marketing_Plan.pdf, 2007).

Product Positioning

Clinique's Anti-Gravity Firming Eye Lift Cream is an anti-aging product with eye treatment effect. This product is positioned as a hydrating eye cream that can reduce dark circles, reduce lines and wrinkles, firm and lift the skin around the eyes of its consumers. This product also helps in moisturizing the skin surrounding the eyes. This product is especially designed with concentrating on the effects of gravity and time on the skin around the eyes. This product, with the patent pending formula that has the ability to improve the natural collagen production can effectively renew elasticity, firm and lift the skin around the eyes (http://www.econ.univpm.it/servizi/hpp/micozzi/documenti/Clinique_Marketing_Plan.pdf, 2007).

Product Differentiate Advantages Clinique's Anti-Gravity Firming Eye Lift Cream has several advantageous differentiations if compared with its competitors that designed to give rise to similar effects. Its patent-pending formula with the capacity to enhance natural collagen in the body is one of the product's differentiate advantage. Also, as other Clinique's products, this cream is 100% fragrance free, created with allergy-tested and not tested on animals. This cream is offered at a lower, more desired and suitable price if compared with its major competitor, Lancme Renergie Morpholift Yeux R.A.R.E Repositioning Eye Cream. Furthermore, other differentiate advantages of this cream are Clinique's strong brand equity, Clinique's reputable research and development by years, and the support from Este Lauder Companies, Inc which has good and high financial achievement (http://www.econ.univpm.it/servizi/hpp/micozzi/documenti/Clinique_Marketing_Plan.pdf, 2007).

Marketing Mix

Marketing mix that Clinique currently uses to satisfy the customers of Clinique's Anti-Gravity Firming Eye Lift Cream targeted markets are the major 4 Ps, product strategy, price strategy, place strategy and promotional strategy. The 4Ps are described as section below:

Product Strategy

Differential advantages that posed by Clinique's Anti-Gravity Firming Eye Lift Cream are the product strategy of this product. This cream can help to reduce the signs of skin aging surrounding the eyes by making eyes become firmer, brighten, less lined, more youthful, more vibrant and more elastic. All these effects can be gained through the ability of this cream in boosting the natural collagen in the skin. The property of this cream is its patent pending formula (http://www.econ.univpm.it/servizi/hpp/micozzi/documenti/Clinique_Marketing_Plan.pdf, 2007).

Price Strategy

The price of Clinique's Anti-Gravity Firming Eye Lift Cream is moderate and lower than the similar premium products in the market. The e-commerce price for this product is £23.00 per 15ml, a price less than its main competitor, Lancme Renergie Morpholift Yeux R.A.R.E Repositioning Eye Cream with e-commerce price at £42 per15ml (http://www.clinique.com,2009; http://uk.strawberrynet.com, 2009). Quality and benefits of Clinique's Anti-Gravity Firming Eye Lift Cream make it comparable with its competitors even though the price of this cream is lower than the others. In short, value-pricing strategy is applied on this hydrating cream.

Place Strategy

As mentioned above, Clinique's products, presently, are available in more than 139 countries and territories (http://www.clinique.com, 2009). Consumers can purchase all range of our products through different distribution networks. Consumers can buy Clinique's Anti-Gravity Firming Eye Lift Cream in upscale stores in numerous shopping malls, perfumeries and pharmacies and specialty retailers. Also, customers can order Clinique's Anti-Gravity Firming Eye Lift Cream via online purchasing at Clinique's interactive online shop and other beauty products online shops such as strawberryNET and YesStyle. The online purchased products are distributed to the customers with the timeline chosen by the customers. In addition, duty free shops that located in different cities and airports around the world are also the distribution channels for this cream. Customers can also purchase our products in flight and cruise ships (http://www.econ.univpm.it/servizi/hpp/micozzi/documenti/Clinique_Marketing_Plan.pdf, 2007). In order to retain as a prestige cosmetics brand, Clinique limits its distribution channels, for instance, Clinique's products are not distributed in the largest skin care products distribution channel, hypermarkets or supermarkets in United States (Facial care in US, 2009).

Promotional Strategy

Clinique's Anti-Gravity Firming Eye Lift Cream has been promoted through different internal and external strategies after it's launching in March 2001. This cream is promoted both in store and externally in magazines, beauty campaign and so on especially in the begging of the launching this product. However, further promotional effort should be implemented when this product reaches its maturity stage of life cycles.

Situational Analysis

SWOT analysis, marketing opportunity, customers' analysis and competitors' analysis have been carried out in this marketing plan.

SWOT Analysis

Strengths, weakness, opportunities and threats of Clinique's Anti-Gravity Firming Eye Lift Cream have been analyzed in order to determine the improved product position. Figure 1 shows the SWOT analysis.

Marketing Opportunity

Clinique's Anti-Gravity Firming Eye Lift Cream which grouped under anti-aging product shows great potential in the current and future facial care market. According to Datamonitor's facial care market reports, the most profitable facial care products are belong to anti-aging products in both United States and Europe facial care market in 2008. The reports show that anti-aging products alone gain 49% and 16.5% of facial care market's value in United States and Europe respectively in 2008 (facial care in US, Europe). The percentage of facial care market share of anti-aging products in United States and Europe are shown in Figure 2 and Figure 3.

Customers' Analysis

Population of baby boomers or middle aged customers are increasing nowadays and this demographic trend may bring significant impact on the sales of anti-aging products worldwide (Este Lauder Companies, Inc., The). Furthermore, we also realise that people nowadays especially women become more concern on anti-aging problems and some of the market consumers with their late 20s begin to purchase anti-aging products. Hence, it is definitely a good opportunity for Clinique to boost its revenue with improving the sales of its anti-aging products.

Competitors' Analysis

Other than Lancme Renergie Morpholift Yeux R.A.R.E Repositioning Eye Cream from Lancme, Youthtopia Firming eye cream with Rhodiola from Origins and Advanced Extra Firming Eye Contour Cream from Clarins are the potential competitors of Clinique's Anti-Gravity Firming Eye Lift Cream. All these premium products are popular in cosmetics market with their strong brand names. These products are also trusted by consumer with their high and superior quality. Besides that, our competitors utilize similar distribution channel as Clinique. Clinique compete its Anti-Gravity Firming Eye Lift Cream with other competitors by adjusting the product price wisely. Youthtopia Firming eye cream with Rhodiola from Origins is sold through online with price of £26/15ml while Advanced Extra Firming Eye Contour Cream from Clarins is sold with e-commercial price of £58 per 0.7oz, approximately 15ml (http://us.clarins.com/, 2009; http://www.origins.co.uk/, 2009).

Marketing Strategic Improvement

With the aim in boosting the sales growth of Clinique's Anti-Gravity Firming Eye Lift Cream, marketing strategic improvement of this product is described in this marketing plan. Clinique plans to enlarge the target market, reposition and further address on the product differential advantages. Implementation plan that describes on the improving the market mix of this product is elaborated in the marketing plan as well. Besides increasing the sales of the product, Clinique also wish to satisfy its customers through the improvement of product marketing strategies.

Enlarge Target Markets

Instead of targeting on the women with late 30s, Clinique plans to enlarge the target market of this product to the women with their late 20s. The main reasons for this adjustment are due to people nowadays is more worry on signs of aging and people buy anti-aging products at their earlier age. Furthermore, Clinique will not only mainly focus sales on its loyal buyers but also the novel potential buyers in the market.

Product Strategy

Clinique plans to reposition the product by create a confidence image to the product. However, other differential advantages of this product like the superior technology used and its unique patent-pending formula will be further emphasized. The new created confidence image will help in tempting those consumers who desire skin care products that associated with confidence image. Besides that, Clinique plans to use Scarlett Johansson as the product ambassador.

Price Strategy

Clinique will remain the e-commerce price of Clinique's Anti-Gravity Firming Eye Lift Cream at £23.00 per 15ml. However, to boost the sales of this cream, we will offer a price reduction on this cream with coupling it with Clinique's Repairwear Deep Wrinkle Concentrate for Face & Eye in a gorgeous Clinique bag and sold it as gift set. The e-commerce price for Clinique's Repairwear Deep Wrinkle Concentrate for Face & Eye is £45.00 per 30ml (http://www.clinique.com, 2009). The new gift set with both Clinique's Anti-Gravity Firming Eye Lift Cream and Clinique's Repairwear Deep Wrinkle Concentrate for Face & Eye will be launched in January 2010 and sold with £55.00.

Place Strategy

Clinique plans to increase the number of upscale stores and retailers especially in those cosmetic talented markets such as Brazil, India and China. These markets have been largely stimulated by events such as beauty contest (Este Lauder Companies, Inc.,The-Datamonitor).

Promotional Strategy

Clinique will further emphasize the differential advantages of this product via intelligent and convincing advertisements. We will increase the advertisement in international TV commercials, beauty magazines and websites. Our advertisement will be appeared with attractive pictures of the cream and Scarlett Johansson. With using Scarlett Johansson as the product ambassador to deliver the confidence image will greatly enhance perception of the advertisement (Solomon, 2002).

We will also couple Anti-Gravity Firming Eye Lift Cream with another two Clinique anti-aging products, which are Superdefense SPF25 Age Defense Moisturizer and Super Rescue Antioxidant Night Moisturizer and then sold as Christmas gift sets and Mother's Day gift sets in the next two years. Additionally, this product will be coupled with Repairwear Deep Wrinkle Concentrate for Face & Eye in a lovely bag and sold it as a must have gift for all anti-aging conscious consumers. This couple package is created because this cream works well with Repairwear Deep Wrinkle Concentrate for Face & Eye (http://www.clinique.com, 2009).

We will also distribute free sample of the cream from December 2009 until February 2010 through our "Clinique Bonus Time" program to increase exposure of this cream and gain new consumers. Furthermore, we will organize Great with Confidence event starts in Selfridges London from 12 December until 26 December 2009. Anti-aging products consultation will be given at the event.

Budget

Our budget to improve the marketing strategy of this product is approximately 5% of the revenue of the product.

Evaluation and Control

We will reevaluate the development of this marketing strategy in every four months to facilitate smoothness and success of this plan. Adjustment or further improvement will be made if we found the progress is not running profitably and efficiently.

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