Because of the recent economic decline, consumers have been turning to cheaper alternatives for the products they used to buy regularly. Large cosmetic companies are facing competition with inexpensive drug store brands. For example, as explained by a Wall Street Journal article entitled "Estée Lauder's Counter Makeover," Estée Lauder Cosmetics are implementing new strategies to attract consumers to their cosmetic counters in department stores.
Some of these new strategies include allowing consumers to browse for products and test the products on their own, eliminating the "nagging" consultant, and creating an "express line" for customers who already know what they want to purchase. Estée Lauder is now making its products' prices easily visible, so consumers don't have to embarrassingly ask how much a product is.
Also, in order to boost sales, consumer loyalty, and the number of people who come into large department stores, Estée Lauder is offering promotions, such as handing out free samples of products and following up with the consumers on how they liked it.
Estée Lauder's Chief Executive Fabrizio Freda stated, "The recent recession has opened up many companies—for sure ourselves and many of our retail partners—to be willing to put more dynamic change into the way we go to market." Other retailers for other products may undergo changes in the way they sell their products, all in efforts to attract more consumers during times of dwindling sales nembers.
Read the article online at:
http://online.wsj.com/article/SB10001424052748704855104575469901711752466.html
- Bria G.
Business 1.0 Blog setup by Colin Dame, Tania Dabdoub, Leah Stoltz, Bria Gutierrez, and Jacky Meltzer. Critique of the the latest news in the world of retail.
I believe that due to this economic depression, many companies have found great, new strategies to reach out to their customers. I like the way Estée Lauder has come up with smart ideas to sell their products. For example, you said that they are changing the way they are labeling their prices on cosmetics, and are also giving out free samples of perfumes at malls. Wouldn't you agree that although it is the most difficult time for companies to gain a lot of profit, that they are doing a better job at advertising their goods, and doing better at attracting more customers? I think if they keep up with this new strategy, they will benefit from their sales and accomplish their goal of attracting more consumers.
ReplyDelete-Tania Dabdoub
I agree with what you are saying, i have definitely seen this happen first hand and its very true that it is overall more convenient for people to go to a drug store. Saves both money and time. As the world changes and as the economy changes, companies are going to have to adapt to survive.
ReplyDeleteI read this article as well and found it quite interesting that they hadn't already jumped on the bandwagon with a lot of other makeup retailers. I know that brands such as Clinique & Prescriptives are always offering free sample products and give aways when you buy a certain amount from their counters. It's definitely a wise strategy, I know that when my mom or myself go to buy good quality makeup we look for the most we can get for our dollar and these buying incentives often draw us to buy from that certain company. Sure, as Tania said, it is expensive to be offering so many free incentives, but I definitely think it will be beneficial to the company.
ReplyDeleteI also liked the customer service follow up aspect of Estee Lauder's plan, it's important to know the consumer's response to the quality of a product, especially in make up since women frequently will become loyal to a certain brand and/or product.
--Leah Stoltz
Hey Bria,
ReplyDeleteWhile this is a great post i'm missing YOUR voice.. what do you think about these new promotion ideas? Is this unique to Estee Lauder or are other retailers use similar methods to attract buyers?