Case Study
Elizabeth Arden
430 Professional Portfolio Professor Green
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“To be beautiful is the birthright of every woman.” -Elizabeth Arden
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Contents Part 1 | In The Beginning Maine Chance History Red Door Salon Locations target Market SWOT Analysis Competitors
Part 2 | Fluctuation of Finance Beauty Industry Rise
Part 3 | Merger with Revlon Reese Witherspoon
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Part 1
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In The Beginning
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B orn Fl ore n ce N i g h t i n g ale G rah am i n C an ad a i n D e ce mbe r 1881, E l i z ab e t h A rd e n was a pi o n e e r i n t h e cos me t i cs i n d us t ry an d cre at e d t h e E l i z abe t h A rde n br an d b e f ore wome n h ad t h e righ t to v ot e . A rd e n ’ s f at h e r, W i lliam was a mark e t g ard e n e r an d h e r mo th e r, S us an , b e came v e ry i l l an d pas s e d away wh e n A rd e n was v e ry yo un g. A s F l ore n ce g re w, s h e ch o s e to g o t o work i n s t e ad of g raduatin g h i g h s ch ool . A rd e n t rai n e d an d b ri e f l y work e d as a n urs e an d l e arn e d ab out s k i n cre am s an d th e ir t re at me n t f or b urn s . I t was th is i n t e rn al d ri v e of wan t i n g mo re , re al i z i n g a ch an g e was n ee de d in ord e r t o accompl i s h h e r go als th at pre ci pi t at e d a mov e t o Ne w Yo rk C i t y i n 1 9 07. A t t h e ag e of 2 6, s h e s t art e d work i n g f or E l e an o r Adair, a l e ad i n g b e aut y cul t uri s t .
It was in 190 9 that El iz ab eth A rd e n ad opt e d t h e n ame f or b ot h h e rs e lf pe rsona l l y as w el l as f o r her b us i n e s s . H ow s h e came t o ch oos e E lizabe th h as had much spec u l atio n. So me b e l i e v e i t was a n od t o h e r f orm e r as s ociate, El iz abeth H u b b ard, wh i l e s t i l l ot h e rs at t ri b ut e t h e n am e to Q u een El izabeth. T he c ho ic e o f A rd e n was much cl e are r....i t came fro m on e of her fav o rite po em s, T en n y s on ’ s E n och A rd e n . In 1914, A rden em pl o y ed c hem i s t s t o s t art t h e proce s s of d e v e l opin g m any skin care pro du c ts. Du ri n g t h e cours e of t h e n e x t coupl e of ye ars , s h e also borro w ed so m e m arke t i n g t e ch n i que s t h at f orme rl y h ad o n ly be e n used to m arket to p ro stit ut e s an d t h e l owe r cl as s . H e r s t rat e gy to at t ract the m o re u psc al e c o nsume r work e d . B y 1 9 2 2 , s h e was open in g a s pa in Paris and ac c ep ted as on e of t h e f i rs t b ran d s t o mark e t i n th e wo rl d. I t w as du ring these y ears t h at t h e l on g s t an d i n g ri v al wi t h H e le n a Rubenstein b eg a n. El iz abeth A rd e n s urv i v e d t h e G re at D e p re s s i o n , and, al ong w i th Co c a- Co l a and S i n g e r S e wi n g Mach i n e s , was re cogn ize d as best known A m eric an b rand s i n t h e worl d . S h e f re e l y s h are d h e r bus iness successes w ith m any s e mi n ars ai me d at b us i n e s s wome n . Again , another first f o r a w o m an. . . . . Eli z ab e t h A rd e n g race d t h e cov e r of T ime m agazine.
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It was socially ac c eptabl e f o r wome n t o h av e ce rt ai n s k i n t re at men ts , but the use o f c o sm etic s w as o n l y f or act re s s e s an d pros t i t ut e s . Arde n t raveled to Eu r o pe in 1 9 1 2 to e n h an ce t h e b us i n e s s of cos me t i cs an d was surprised to d isc o v er that t h e wome n i n P ari s we re al re ad y w e arin g m ake-up on their ey es. H enc e , up on h e r re t urn t o A me ri ca i t was o n t h e l ist of pro du c ts to d ev el o p. A s s h e e x pan d e d i n t e rn at i on al l y , th e E li zabeth Ard en pro d u c t l ine al s o g re w t o i n cl ud e h ai r an d b at h pro duc ts , e y e make- up and l ipstic ks and we re s ucce s s f ul l y re ce i v e d i n al l t h e s alo n s aro und the wo rl d. A s long as E l iz ab eth A rd en w as al i v e , t h e b ran d was n e v e r s ol d .
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Maine Chance
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O nc e El izabeth A rd en estab l ished s ucce s s wi t h i n t h e b e aut y i n d us t ry, s h e c reat e d the firs t d estinatio n spa at h e r l ak e f ron t prope rt y i n M ai n e . S h e n ame d t hi s n e w est add itio n to her b u sin e s s port f ol i o, Mai n e C h an ce . Th e Main C hanc e spa c o st f iv e hu n d re d d ol l ars pe r we e k f or g ue s t s an d o ffe re d m an y services inc l u ding heal thy d i e t ary me n us , e x e rci s e work out s as we ll as ro u t i ne spa treatm ents inc l u d ing wax i n g , s t e am b at h s , f aci al s an d mu d pac k s . Th e prima ry reaso n m any c l ients v i s i t e d t h e s pa was t o l os e we i g h t . S o me o f t he s pa guests inc l u ded M am ie Eis e n h owe r, E d n a F e rb e r, J ud y G arl an d, Lillian G i s h and Ava Gard ner. T hese hig h prof i l e cl i e n t s e x pe ri e n ce d n ot h i ng but th e b e s t t reatm ent f ro m c hau f f eu rs, mai d s , l aun d re s s e s , f armi n g s t af f an d c h e fs . Th e s pa w as open f ro m 1 9 3 4 to 1 9 70. A f e w y e ars f ol l owi n g A rd e n ’ s de ath , th e prope rty w as sol d to p ay the estat e t ax e s .
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Red Door Salon Locations
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Make-up Counters & Services
Marshall Field’s Dillard’s Boston Store
28 Spa Locations within the United States
Lord & Taylor
The most locations are in New York with 8 different locations
Saks Inc.
Spa Services that are offered include Body Treatments, Body Wraps, Massages , Facials, Mircodermabrasion, Face Enhancements, Hair Styling, Make Application, Manicure and Pedicure and Waxing Treatments.
The Jones Store Macy’s
On top of the Spa locations she can service many other locations in the United States, Canada, Austria, Denmark, France, Germany, Italy, Norway, Spain, Sweden, United Kingdom, Australia, China, Hong Kong, Korea, New Zealand, Singapore, Taiwan and South Africa.
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Target Market
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N am e : A railia Go nz al ez
N ame : Me re d i t h C on s t an t i n e
A ge : 41
Age: 58
Hom etow n: Peo ria, A riz o na
H ome t own : H amps t e ad , N C
O c c upation: Partic l e Phy sic ist
O ccup at i on : Th e rapi s t
Sc h o ol: Cal T e c h Hobbies: Hikin g , b aking , and bi nge w atching reru ns o f T he B i g B ang T heory Vals : Thinker
P e d i at ri c
P h ys ic al
S ch ool : D uk e U n i v e rs i t y H obb i e s : Vol un t e e ri n g at h e r lo c al an i mal s h e l t e r, s ai l i n g , an d wal k i n g on t h e b e ach with h e r t h re e ch ocol at e l ab s Val s : A ch e i v e r
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N am e: Magnol ia Kako s
N ame : L uci a S t e i n b urg
A ge : 34
Age: 26
Hom etow n: Athens, GA
H ome t own : B os t on , Mas s ach us e tts
O c c upation: W edding Pl anner
O ccup at i on : Mas s ag e Th e rapi s t
Hobbies: Painting, she’s a ceramics j un ki e, and lov es attend ing y o g a i n t h e park
S ch ool : B an crof t S ch ool of M as s age Th e rapy H obb i e s : S wi mmi n g , g oi n g f or drin k s wi t h f ri e n d s , l oun g i n g i n t h e park
Vals : Maker
Val s : E x pe ri e n ce r
S
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Strong domestic market
Increasing competition
Customer loyalty and name recognition Skilled workforce
Customers looking for constant change in product formulation- always looking for something new
Solid distribution channels and network connections within the beauty industry
Low investments in research and innovation Seen as outdated by many markets
Utilize new technologies and innovations in cosmetics industry Increase social media engagement to reach younger consumers Revamp website and advertisements to keep up with modern tastes
Emerging cosmetics companies Increasing competition and easier entry into the market Product innovation by other brands surpassing the Elizabeth Arden, Inc. research and development capabilities
Update product packaging
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A U D I T
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Facebook | The Facebook pictures are the same ones featured on the instagram and twitter accounts. The company uses the Facebook account to answer customer questions. Instagram | Posts frequently to this platform and I was surprised to see their level of engagement on Instagram Another negative I noticed about their Instagram is a feel that it is a bit disorganized with the heritage that Elizabeth Arden has during the past 107 years . Twitter | Elizabeth actually has to twitter account she has a specific Twitter for the UK as well as the general Twitter account. What I felt is the UK Twitter account felt more engaging and different from the general account. The generic twitter account is basically their Instagram with no customer engagement.
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Competitors
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C ot y own s 77 bran d s i n cl ud i n g C hlo e , M arc J acob s , C al v i n K l e i n , C ov e rg i rl an d O.P .I. an d man y more . Th e i r prod uct l i n e s i n cl ud e s f rag ran c e s , c o lo r cos me t i cs , h ai r care , bod y care an d s k in c are . Th e me s s ag e C ot y con v e y s t h roug h out all th e ir b ran d s i s t o i n s pi re an d e n ab l e t h e c o n s ume r t o b e con f i d e n t an d b ri n g j oy i n e xpre s s in g t h e i r b e aut y i n wh at e v e r way i s co mfo rtable f or t h e m. Th e b ut t e rf l y i n t h e i r l og o i s a s ymbo l o f b e aut y an d t ran s f ormat i on .
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36 million women in Europe and the Americas had used Coty products
1925 Coty pioneered the long-lasting forumla for lipstick
1955
Opened subsidiaries in New York and London
1912 Francois Coty dies, family remains in control until the 1960’s
1940 Coty was sold to Joh A Benckiser GmbH
Acquired Philosophy and O.P.I. making it a leader in the skincare and nail category
2010 Coty enters partnership with Younique a online peer-to-peer social selling platform in beauty
2017
1992 Coty mergers with Proctor & Gambles fragrance, salon professionals and styling business, making it the 3rd largest beauty company
2016
S
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Existing distribution networks Highly profitable Differentiated price points (prestige and mass market)
W Must abide by retailer regulations that may restrict creativity Variation across retailers can lead to different images of the brand across various regions
Recognizable portfolio of brands leads to consumer confidence
Wide range of brands can lead to a lapse in quality control and image maintenance
Increase use of latest technological advances for cosmetics
Consumer markets leaning more towards natural fragrance and cosmetics options
Expand portfolio of brands Increase mass market holdings
Lower priced products and brands with higher quality products Beauty box subscription services
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Facebook | What I enjoyed about Coty facebook page was that they were sharing articles and video that were related to them or the beauty industry so that there was more content to look through The part that I did not enjoy about there Facebook were that the post were very sporadic
Instagram | They have several different accounts for different parts of the country which I think is great because different items could be trending at different times and for me their instagram was the most engaging form of social Coty has. Although my one, advice to them is that need to post more each day Twitter | Their twitter was fun to engage in but the last post is from April 4th of this year. I think that every brand should at least post once if not twice a day to social media and at the appropriate times
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Jo sephine E s t h e r M e n t z e r was b orn i n N ew Yo rk C i t y . H er f irst me mory of b e aut y was h e r m o ther, wh e n s h e woul d g o t h roug h her dail y ri t ual of app l y i n g cre ams t o her f ac e an d h an d s t o k e e p h e r s k i n sm o o th an d s of t . “ I w anted t o s e e my n ame i n l i g h t s , b ut I w as w il l i n g t o s e t t l e f or my n ame on a jar. �
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First overseas account in Harrods. The UK will later become a core market
1960
First department store order for Saks Fifth Avenue
1947 Launching into the China market
Online pioneers in the beauty industry
1996
1993 Estee Lauder goes public
Estee Lauder passes away at 95 years old
2004
A revenue milestone exceeding 10 Billion dollars in net sales for the first time
2012
1995 Fabrizio Freda was hired as the President and Chief Operating Officer
2008
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Strong brand reputation
Profit oriented
Experienced research and development department
Lost focus on customer
Distribution network
Declining operating income in various markets
Powerful marketing techniques (free gift, gift with purchase, makeup artist events)
Lack of innovation in product formulation
Diversification of distribution channels
Increasing competition in cosmetics industry Younger brands are increasing their customer base with technological advances Counterfeit products negatively affect sales
O
Regulations are increasing on cosmetic industry materials and ingredients
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Facebook |
The first thing I noticed about their facebook page is that they are very engaging with customers making sure that each client has the product they are searching for and asking questions quickly Instagram | Estee Lauder’s Instagram is one of the best I have looked through based on the previous accounts. Their content was very cohesive and they post a minimum of once per day. Another positive aspect I enjoyed about their account was different messaging opportunities based on location demographics. Twitter | Estee Lauder has great way to cater to their customers with especially in the UK because again they have a general Twitter account which is an okay asset to have but then they have more engaging content on their UK account and many more shared articles YouTube | A constant throughout the brands I have researched is their YouTube channels need more visuals and frequent posts to include short clips, GIFS, short films about the beauty industry, new products and trends.
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Part 2
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Fluctuation of Finance
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Beauty Industry Rise
Th e b e aut y i n d us t ry h as g rown f rom $ 4 32 .7 b i l l i on i n 2 01 6 t o an e s t i mat e d $ 750 b i l l i on b y 2 02 4 an d i s d ri v e n by t h e Un ite d S t at e s an d t h e C h i n e s e mark e t s , wh ic h will accoun t f or 5 4% b y 2 02 1 . O n - l i n e b e aut y s h oppi n g h as b e e n a h uge d e v e l op me n t i n C h i n a, U n i t e d S t at e s, UK, J apan an d G e rman y . A pri mary re as on b e h i n d t h e b e aut y gro wth i s ch an g i n g l i f e s t y l e s , t h e ri s e i n d e m an d f or s k i n an d s un care prod uct s . A n ot h e r re as on f or t h e pe ak i n b e au ty e n h an ce me n t p rod uct s i s t h e ag i n g d e mog raph i cs an d t h e i n t e re s t t o h elp k e e p s k i n h e al t h y wi t h f e we r wri n k l e s , age s po ts an d un e v e n s k i n t on e s .
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Part 3
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Merger with Revlon
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In 20 16, Revl o n ac q u ired El iz ab e t h A rd e n , I n c. f or $ 4 1 9 mi l l i on . R e vlo n , c ontrol l ed b y b il l io na ire R o n P e re l man , s aw an opport un i t y t o h e lp re vive the El iz ab eth A rd en bran d . Th e b ran d h ad b e come un pro fitable and the cel ebrity - branded f rag ran ce s we re n o l on g e r popul ar with c onsumers. In tu rning to the we l l k n own E l i z abe t h A rd e n b ran d , it allow ed Revl o n to ex pand its f oot pri n t i n f rag ran ce s an d s k i n care . T h e c e l ebrity en d o rsem ents f o r th e i r f rag ran ce l i n e h as n ot h e l p e d with th e c ompetitive m arket f o r c o sm e t i cs . E l i z ab e t h A rd e n , I n c, ack n ow le dge s t h at the financ ial streng th o f t h e n e w comb i n e d compan y wi l l h e lp to at t ract new p erf u m e l ic enses. I t i s al s o h ope d t h at t h e me rg e r w ill h e lp e x i sting fragra nc e b rands inc re as e i n popul ari t y an d s al e s . Th e m erger c o m b ined the 8 4- y e ar- ol d R e v l on wi t h t h e 1 06 - y e ar-o ld A rden business ho ping that th e comb i n e d d i s t ri b ut i on n e t work an d m arketing s trateg y w o u l d broad e n t h e i r con s ume r app e al . R e v l o n was , at one point, v u l nerab l e to a t ak e ov e r. R e v l on re al i z e d t h e re were great opportu nities f o r g ro w t h wh e re E l i z ab e t h A rd e n , I n c. was s tro n g. Th e compan y rec o g niz ed f av o rab l e ci rcums t an ce s i n k e y re g i on s wh e re E li zabeth Arden w as stro ng , s uch as C h i n a an d ot h e r A s i an coun t rie s . B oth Revlon and A rden are d e al i n g wi t h t h e s h i f t t o e - comme rce . T o date, Revlon has d o ne a b ette r j ob i n t h i s are a of e n h an ci n g s al e s an d wants to share its stro ng er di g i t al e x p e ri e n ce wi t h A rd e n an d b rin g th e c ompa ny up- to - date. B o tto m l i n e i s t h e t wo ag i n g cos me t i c g i an ts h ave a re new ed oppo rtu nity to re- in v i g orat e t h e i r b ran d s an d i n cre as e s ale s .
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Reese Witherspoon
“ A b ran d i s on l y a b ran d if it e n g e n d e rs s ome s ort of e mot io n al re act i on i n a con s ume r; i f i t live s i n t h e mi n d , ” D an P ark i n s on , h e ad of con s ul t an cy at M oun t ai n vie w. “ Th e k e y t o re v i v i n g or re pos i t i on i n g a b ran d i s d e cidin g wh e t h e r p e op l e h av e “ f al l e n o ut of l ov e ” wi t h i t or wh e t h e r i t is s t i l l re l e v an t t o our l i v e s t od ay,” M r. P ark i n s on s t at e d .
A c o sm etic company c o u l d no t wan t f or a b e t t e r f oun d e r t h an E l i z abe th A rde n. In April 20 1 7 , El iz ab eth A rd e n , I n c. we l come d R e e s e W i t h e rs po o n as th e n ew face of the b rand. El iz ab e t h A rd e n f oun d s ome on e wh o repre s e n ts th e glamour an d v isio n that has b e e n t h e E A t rad e mark s i n ce t h e ope n in g o f th e first Red Do o r Sa l o n in 1 9 1 0 . . “ It was very im p o rtant to u s as a b ran d t o f i n d s ome b od y wh o would truly embody the st o ry o f the b rand,” e x p l ai n e d K ara L an g an , E l i z ab e t h Arde n ’ s svp of gl obal m arketing . “ W e b e l i e v e i n our h e ri t ag e an d wh o E l i z abe th A rde n w as as a perso n, and despi t e t h e f act t h at s h e s t art e d h e r co mpan y ove r 10 0 years ag o , the w ay she t h oug h t ab out wome n an d be aut y is re le van t an d c ontem porary . A l o t o f w o me n d on ’ t k n ow t h at s t ory an y more . We w an t ed som eone w ho c o u l d em bod y t h at h e ri t ag e of t h e b ran d .”
“O f course, R eese is g o rg eo u s, ” L an g an con t i n ue d , “ S h e h as f l awl e s s s k in , wh i ch is ama z ing f o r a brand foun d e d i n s k i n care - - - b ut as a pe rso n , th e way she talks abo u t w anting to e mpowe r wome n an d t o t e l l s t ori e s abo ut s t rong and fasc inating w o m en- - - t h at g oe s al on g wi t h wh o E l i z ab e th A rden w as as a perso n and the re f ore wh o we are .” Re e se Witherspo o n indic ated s h e was f i rs t at t ract e d t o t h e E l i z ab e th A rden brand based o n its l o ng s t an d i n g t rad i t i on of s upport i n g wo men. Hello Su nshine is a mul t i - me d i a prod uct i on compan y f ou n de d by Witherspo o n in o rd er to tel l s t ori e s t h at wome n wan t t o s h are. Wi t herspoon f eel s as tho u g ht E l i z ab e t h A rd e n f org e d a pat h f or wo me n , t h u s m aking it a natu ral f it that s h e commun i cat e t h e E A b ran d ’ s me s s age from her perspec tiv e. Sh e is relevant and c o ntem po rary an d h as ov e r 9 .1 mi l l i on I n s t ag ram follow ers.
R e s o u r c e s http://news.in-cosmetics.com/2017/04/13/premium-beauty-drives-growth-in-global-beauty-industry/ https://www.youtube.com/watch?v=skLFwQ8tSng https://www.thoughtco.com/elizabeth-arden-1779864 https://www.youtube.com/watch?v=y5NiU3LSBjY http://www.vanityfair.com/style/2010/11/100-years-behind-the-iconic-red-door https://www.nytimes.com/2016/06/17/business/revlon-is-buying-elizabeth-arden-for-419-3-million.html?rref=collection%2Ftimestopic%2FElizabeth%20Arden%20Inc.&action=click&contentCollection=business&region=stream&module=stream_unit&version=latest&contentPlacement=2&pgtype=collection https://www.inkwoodresearch.com/reports/beauty-personal-care-products-market-forecast-2017-2024/ https://www.statista.com/statistics/297070/growth-rate-of-the-global-cosmetics-market/ http://www.pressherald.com/2014/06/13/elizabeth-ardens-maine-chance-spa-goes-on-the-market/ https://coschedule.com/blog/best-times-to-post-on-social-media/ https://www.linkedin.com/pulse/cosmetics-market-growth-spurred-drastic-rise-purchasing-david-raj https://www.coty.com/brands http://www.destinyconnect.com/2014/02/14/meet-the-new-face-of-elizabeth-arden/ http://www.beautyeq.co.nz/new-blog/2017/3/31/new-face-for-elizabeth-arden http://www.prnewswire.com/news-releases/elizabeth-arden-inc-signs-supermodel-karlina-caune-as-brand-ambassador-300003130.html https://www.elcompanies.com/who-we-are/key-moments#1947-first-department-store-order https://www.elcompanies.com/who-we-are/key-moments#2015-attracting-new-enthusiasts
Re so u r c e s http://www.straitstimes.com/lifestyle/beauty-world-boss <div>Icons made by <a href=”http://www.freepik.com” title=”Freepik”>Freepik</a> from <a href=”http://www. flaticon.com” title=”Flaticon”>www.flaticon.com</a> is licensed by <a href=”http://creativecommons.org/licenses/by/3.0/” title=”Creative Commons BY 3.0” target=”_blank”>CC 3.0 BY</a></div> https://amigobulls.com/stocks/RDEN/income-statement/annual http://www.businesswire.com/news/home/20170314005566/en/Revlon-Announces-Appointment-Serge-Jureidini-President-Elizabeth https://www.iconfinder.com/icons/2136499/media_social_social_media_socmed_youtube_icon#size=512