7. Business marketing

Clinique is a consumer oriented company, but they also pay attention and develop business marketing. Clinique is usually reselling its products to cosmetic and department stores, cosmetic companies abroad and makeup artists, who can use all the products in their work with models, during fashion shows, etc.
Last year Clinique sold their products to a company called Fresh Faces, who used Clinique products in the Star Tour project. It was a major makeover event that targeted young women age 15-25. Their objectives were to offer young womwn a unique Clinique experience that was fun and relevant to them.

Star Tour involved a custom built mobile makeover truck with 8 makeover stations. During the tour participants experienced star treatment. First, makeup was done by a professional makeup artist, hair styled by a stylist and everybody had fun getting their photos taken by a professional photographer. It was not onle a show, but also a contest. Top 3 winners got a chance to be on the cover of CLEO magazine and take home $5000 worth of Clinique products.

8. Segmenting and targeting markets

Market segmentation

Clinique focuses on individual needs, skin types and age, and then segments the market accordings to those factors. Clinique has a wide range of products for all skin types, from dry to oily skin, and from young skin care to anti-aging cream. Clinique also segments the market according to gender. For a long time Clinique had products only for women, but now offers a range of cosmetics for men. Men around the world have responded well to their new product line.

Clinique uses a differentiated segmentation strategy. Their products are advertised differently to different segments, mainly in different magazines for different segments.

 

Target market and positioning

Clinique primarily targets young women, but a lot of older women use Clinique's products due to customer loyalty that has been established thanks to Clinique's high quality.

Clinique has positioned itself as one of the most attractive cosmetic brands for young women, due to it's emphasis on technology, dermatologist recommendations, and slightly lower prices than other high-end brands.

HOLIDAY SEASON

Holiday season is coming up and Clinique is ready for the big celebration. They recently updated their website and added a Holiday Shop link where you can find everything you need: gift ideas, great value products and even tips on how to look your best during holidays.



11. Developing and managing products

Because Clinique is a cosmetic company that emphasizes on technology and carefully selected ingredients, they create and develope their skin-care products according to these standards. Clinique hires a number of scientists that develope and test products in their high-tech modern laboratories. There are a few rules that apply to all Clinique products: all products must be tested by dermatologists, allergy tested, 100% fragrance free and they must be appropriate for people of all ages and all skin types.

Another important factor of the Clinique product development process is reacting quickly and effectively to new trends on the market. This means that Clinique pays attention to what customers want. They adapt their products according to their customer's preferences and also to potential customers. This has helped them become one of the most successful cosmetics companies in the world and that is why their products have a lot of beauty awards and positive customers reviews.



After examining the market and looking for niches, Clinique undertakes a business analysis by thoroughly researching which products can be profitable and which target market must they advertise certain products to. Clinique introduces every year new products to every product line and for every market segment.

Clinique is constantly introducing new products and in that way increasing sales. Clinique was for a long time primarily focused on skin-care products such as face creams, facial cleansers and tonics. Today Clinique's product mix is much more diverse. Now, Clinique has a much wider range of hair-care products , but also has started to expand the production of high-quality decorative make-up and fragrances. The most recent product line that Clinique introduced is the new mens skin care product line.
Not only is Clinique introducing new product lines, Clinique is also using a line-filling strategy and adding new products into existing product lines. For instance they make moistuirizing cream for dry, oily, senstive skin, and recently for dehydrated, reactive skin.

16. Integrated Marketing communications

Clinique is known for having an individualistic approach to consumers. By communicating directly with consumers, Clinique's salespeople can gather information about specific groups of people. They can find out information that is revelant for the company in order to design an appropriate marketing mix. This technique can be useful because the information is revelant and up to date. An individualistic aproach can also help create a positive image and increase customer loyalty. Clinique also uses internet surveys to find out about customers preferences.

Database marketing

Recently Clinique wanted to increase sales online. By using an e-mail questionnaire and registration form Clinique gathered substantial information about the visitors of their website.

Using the information that was gathered through the questionnaire, Clinique formed a database with all the users catalogued. What Clinique did was program the database to separate people who use Clinique products and those who were just visiting the site, and then sent them e-mails. Their strategy was to increase consumer loyalty of the people who already used their products and to persuade non-users to become users of Clinique products. They sent 22 000 non-users a e-mail newsletter requiring them to fill out a questionnaire and around 12 000 responded. The reason the response was so high is that Clinique offered an award for anyone who responded. The people were sent free Clinique products and an empty bottle that could be filled with Clinique foundation only at Clinique counters. This strategy brought many people in touch with their product range.

10. Product Concepts

Product Components
Quality

Cliniques products are known for their high quality. The reason they are so high in quality is the fact that the company uses high technology in the production of the cosmetics and also uses special ingredients. Today's consumers insists upon quality, especially if cosmetic products are concerned. Clinique has achieved that there name alone is connected with high quality.

Design

Clinique's design has stayed the same for many years, but now Clinique is starting to redesign the packages of some products. Clinique has a simple yet recognizable design and logo, which attract many customers.

Customer Service

Clinique pays great attention to the importance of customer service. Their service just like their products are high quality. This gives Clinique a competitive advantage compared to other companies that don't realize how important good customer service is. Good customer service can help create customer loyalty.

Clinique's salespeople have to be very professional and must provide customers with specific information about their products and be able to give advice about skin types and skin care.

                

Clinique Service as YOU like it concept

Clinique, the number one prestige cosmetics brand in the United States, unveils a revolutionary shopping experience at Lord & Taylor Fifth Avenue. The must-see destination is reinventing the prestige beauty shopping model with Clinique's service as you like it concept that offers multiple levels of service and new ways to shop for beauty products at the counter.

The new state-of-the-art counter provides an innovative, dynamic and engaging shopping experience. Clinique's service as you like it means consumers can partake in one or all of the following shopping experiences based on their individual needs and moods:

• Full-service: A one-on-one consultation is perfect for the consumer who has time and wants expert skin care analysis and application tips.
• Guided self-service: The state-of-the-art skin diagnostic allows consumers to browse alone and offers one-on-one service on demand. With guided self-service, consumers identify their skin care concerns and receive personalized skin care recommendations using a 90-second computer-guided skin care analysis.
• Self-service: The play-and-pay concept offers features such as the Color Bar and interactive Mascara and Lip Bars in a welcoming, easy-to-use layout, making it convenient for consumers to test, pick up and play with their favorite products. Additionally, the Browsing Basket is not only convenient but also signifies to the consultants that a consumer wishes to browse alone.

18. Sales Promotion and Personal Selling

Clinique uses different sales promotion techniques in order to increase public acceptance and interest in their products. Clinique's most frequently used sales promotion techniques are contests and sweepStakes, and premiums.

One example of a sweepStake took place recently, when people could take a survey on Clinique's website to see if they qualified for Clinique's Beauty Bootcamp. Contestants that qualified automatically received Clinique's new Acne Solution Clear Skin System and then were entered in a competition to win a Total Celeb Makeover or an Apple MacBook.

An example of the sales promotion technique premiums is Clinique Bonus Time. In certain periods of the year Clinique offers certain gifts to customers with every purchase. This technique works very well, is very popular and stimulates sales, but also attracts new customers. Clinique uses other techniques also, such as coupons, samples etc., with the goal to increase sales, and attract new customers.

Clinique pays a lot of attention to personal selling. Not only is personal selling an important advertising technique for Clinique, but it also helps create a positive image and brand loyalty.

Clinique's salespeople are specially trained to understand and recognize customer's skin types and to give them skin-care advice by recomending certain Clinique products that suit them the best. This has a specific and positive affect on customers because they feel that Clinique cares about helping them by having an individual approach to every customers needs.

The employees that sell Clinique's products to customers are called Clinique Consultants. They are service oriented and have good communication skills. They are recognizable because they wear Clinique's specific white lab coats.

Education Managers are also Clinique's employees and their job is to provide Consultants knowledge about products and how to present their products to customers. Education Managers teach Consultants service and selling skills that are necessary to meet Clinique's standards.

17. Advertising and Public Relations

Clinique's advertising strategy consists of targeted advertising and personal selling. 90% of Clinique's budget for advertising is used for magazine and newspaper advertisements. These ads are found in magazines, like Elle, Cosmopolitan, that are read by their target market, women that care about quality and health. Their ads are connected with the image they want to create. Close-ups of their products are presented on a white background and it that way emphasizes the product and it's design. The design and packaging hasn't changed in a long time, but now Clinique is starting to redesign the packaging. The goal of their advertising is to create an image of cleanliness, technology and quality. They also want to achieve an image of a sophisticated brand that health awared women use.

Personal selling is an important element of Clinique's advertising strategy. Clinique's salespeople wearing lab coats help customers find a product that suits their skin type best. The salespeople have to thoroughly understand Clinique's products and have good communication skills in order to successfully sell their products.

Until recently Clinique has targeted women from ages 25 and above, but now has recognized a new potentially profitable segment- teenage girls. Ofcourse, reaching teenage girls requires a different advertising strategy which Clinique is successfully implementing by putting ads in teen magazines and advertising on MTV.

15. Retailing

New retailing experience.

 IPad Skin Diagnostic.

The new device, called the iPad Skin Diagnostic Tool, was installed in new counter configurations, which ultimately includes new product testers for foundation and color cosmetics and a new smart-screen scanner that provides product information and even reviews from other consumers. "By integrating digital technologies into the shopping experience, we are offering the consumer a stimulating and socially modern way to connect with the brand," stated Lynne Greene, global brand president of Clinique.

The first digital advance out of the gate is the iPad device. By answering questions about individual skin conditions, the iPad analyzer is designed to produce a personal analysis for a consumers, providing 180,000 possible product recommendations.

Microsoft Surface.

Clinique Smart Bar.

The new digital interface enables shoppers to place specially tagged Clinique products on the Clinique Smart Bar. The shoppers can then access product information, and Clinique.com’s best in class user reviews and how-to videos, before adding their products to a virtual browsing basket.The application allows shoppers to print out a barcode and present it at the nearby express service counter for quick checkout. Shoppers can also share the virtual browsing basket directly to their Facebook or via e-mail.
“Today’s consumer has more tools and devices than ever before to communicate, connect and learn. From the explosion of smartphones to Google to Facebook, our consumers are looking beyond a one-dimensional experience,” said Ricardo Quintero, Clinique’s senior vice president, global general manager, Market Development.

Both devices have been installed in a number of department stores, and reportedly the results so far have produced sales increase of 30% in the first stores. Clinique is trying to stay on the cutting edge of innovation. Nowdays consumers move from one screen to another, sending and gathering information via phone, e-mail, text, etc. 50% of all in-store purchases are influenced by online information. IPad and Clinique Smart Bar gave the service a higher level of credibility. 

6. Consumer decision making

Today in order for a company to be successful it must understand the changes in the consumer market and adapt to those changes. Not only that, companies have to understand consumers, their attitudes towards products and what motivates them to buy a certain product.
Clinique takes great importance in understanding it's consumers and knows that effective consumer-orientad marketing is a key factor for success in the highly competitive cosmetic industry.
Clinique would like its young audience to perceive its brand as quality products made with natural ingredients that provide innovation, and fresh, clean looks to younger women looking for what Clinique offers in respect to cost, performance and technology. Clinique's line of quality skin care products and  knowledgeable consultants provide innovative client-oriented solutions to healthy and radiant looking skin that is always in style.

Changes in the consumer market

I already mentioned that today's population is becoming older and that demand for anti-wrinkle cream is increasing. For instance, the baby-boom generation today represent a big percentage of the American population, but also represent a potential market for Clinique's anti-age treatment.
Another important trend is that consumers are more aware of enviromental issues and will probably favor a company that takes environmental issues into consideration. All of the companies in the Estee Lauder Inc. group have environmental programs such as pollution prevention, waste minimization and recycling practices. ( Environmental and Safety Policy)

5. Developing a Global Vision

Clinique launching mobile apps in Asia

 

Emily Culp of Clinique

Emily Culp, Global Digital Marketing & Media director at Clinique, announced that the brand piloted its latest mobile app in Korea to ensure global adoption.

In February, they developed the Clinique Forecast mobile application to be launched as a test-and-learn in Korea to confirm whether mobile applications had traction with their consumer. The app was developed to help keep the user updated on the current weather, UV, pollution and humidity conditions as well as learn condition-relevant skin care tips. They wanted to ensure that the products being recommended were relevant to current weather conditions so users could help protect their skin accordingly. With the Asia markets leading the way in terms of mobile use, they chose to pilot the Clinique Forecast app in Korea. 

Many people are involved in the development and success of a mobile application. Getting to know the partners and having a close relationship with them will help Clinique in the future. It can also be very helpful and advantageous to know their consumers feedback. They regularly ask Facebook and Twitter users for feedback and reference user reviews to help them address relevant consumer needs. All of these efforts have helped make the launch of the Clinique Forecast app a success. In fact, it was ranked #2 on Apple’s “New and Noteworthy” list of top apps within the first month of it being launched. 

Mobile application approach

Clinique realizes that the best mobile application experiences start when they are created specifically for mobile. The mobile experience is unique in many ways; the mobile screen is always with the consumers and enables them to instantaneously connect with the brand whenever and wherever they are. Additionally, mobile (especially applications) allows unique, on-the-go functionality unavailable with traditional web. By embracing the utilities unique to mobile, such as the camera, GPS and push notification, they are able to reach the consumer through new touch points. Finally, the mobile space moves faster than the web’s so it is better to have the latest approach.

4.The Marketing Environment

The cosmetic industry today is growing rapidly. Today more than ever people are concerned about how the look and search for ways how to improve their looks. This trend isn't just clearly noticable in the female population, but also very significant in the male population( metrosexuals). Social environment An important trend that is occuring today is that the population is getting older, and at the same time with a little help from the media people are becoming more aware of the importance of their appearance. Also, people are becoming more demanding and want the best for themselves, meaning quality. This gives high-quality cosmetic companies, which already have a brand name, like Clinique a competitive advantage. Estee Lauder Inc., including Clinique have successfully adapted to the new movement called consumerism, which protects the rights of buyers. Clinique is commited to providing customers with innovative cosmetic products of the highest quality and outstanding service. ( Commitment and Principles) Competitive environment The cosmetic industry today is dominated by a small number of multinational companies, with big market shares. This industry grows significantly every year, making it very attractive for new entrants. Prestigious brands like Clinique are not only facing fierce competition from domestic new entrants, but also from international brands such as Shiseido, a popular Japanese brand. Environmental responsibility Precautionary Principle: The traditional definition of the Precautionary Principle has three elements:threat of harm; scientific uncertainty; and preventive, precautionary action. According to experts in this area, the final test for knowing when to apply the Precautionary Principle is the combination of threat of harm and scientific uncertainty. At this time, Estee Lauder Inc., including Clinique are reviewing this complex process which must take into consideration the different regulatory obligations in the countries where they  operate, the shifting nature of information and opinion on environmental matters, and their responsibilities to all of their Company's stakeholders, including consumers. In the meantime, they comply with applicable worldwide regulations, continuously monitore their products for safety and actively analyze peer-reviewed research.

3. Social responsibility & ethical considerations

Sustainability crosses many avenues in the Company. Clinique strives to optimize the use of natural resources and reduce their carbon footprint. Their commitment to the communities and the health and wellness of consumers and employees is engrained in their corporate culture.Clinique pays great attention to the safety and health of  consumers, bio-diversity,energy conservation and good corporate ethics.

• Clinique is a member of the Sustainable Packaging Coalition. In fact, their Origins brand developed a line of packaging that is manufactured, printed and folded using 100% renewable energy resources.
• In Fiscal Year 2006, they reduced the total waste generated and disposal costs.
• They recently implemented an array of smart transportation initiatives to combine shipments and reduce the amount of outgoing materials shipped via air freight.

They are focused on the need to ensure a healthy future for their consumers, employees and the communities.

ETHICAL CONSIDERATIONS   Animal testing. It is the corporate goal of The Estée Lauder Companies to seek the complete elimination of animal testing on cosmetic products and ingredients worldwide. It is their policy not to test on animals nor to ask others to test on their behalf except where required by law. They were one of the first companies to mandate complete replacement of animal tests on finished products. They voluntarily stopped testing their products on animals nearly 20 years ago. They have been in the forefront of efforts to use clinical tests that do no harm to living entities while ensuring safe, efficacious products for customers. They partner with associations and institutions worldwide to achieve the corporate goal.

2. Strategic planning for competitive advantage

Estee Lauder Inc. represents the corporate level, while Clinique is a business unit inside Estee Lauder Inc. and represents the business level together with other cosmetic companies that Estee Lauder consists of. Each level has a strategic plan. The Estee Lauder Inc. strategic plan gives directions to Clinique's strategic plan.
Corporate strategic plan
The vision of Estee Lauder Inc. achieved a respectable image and reputation in the cosmetic industry by concentrating on high quality cosmetics, respecting consumer rights and enviromental issues and particapating in social responsibility actions.The main corporate growth strategies that are used are constantly developing new products and expanding globally.

 

Business Strategic plan

Clinique has achieved competitive advantage through product differentiation. The main difference between Clinique and other cosmetic brands is that Clinique emphasizes on laboratory development, dermatologist-recommended products, and mild and hypoallergenic ingredients. This has helped Clinique create a favourable image of a brand that concentrates not only on beauty, but more on healthy and radiant skin. To save this image and reputation of a clean and heath-oriented brand, their sales representatives wear lab coats.Their products are sold in upscale department stores in order to keep their image of a high quality brand. Clinique uses a segmented approach rather than a mass approach.

1.CLINIQUE: Brief history

Clinique Laboratories, LLC.

Type	Division of holding company (Estée Lauder Companies, Inc.)
Industry	Consumer goods
Founded	1968
Headquarters	New York, United States of America
Products	Cosmetics & beauty
Parent	Estée Lauder Companies, Inc.
Website	www.clinique.com

Clinique, an offshoot of the Estee Lauder Company, was founded in 1968. It’s charter, which is somewhat different than most cosmetic companies, is to meet individual skin care needs. Rather than selling a universal solution to all customers regardless of skin type, Clinique, with its unique line of skin care products, seeks to customize its approach to skin care, to the specific individual.  Chemists and dermatologists at Clinique formulated a skin care system, which is based on a 3-Step System of cleansing, toning and moisturizing the skin. The basic assumption behind the Clinique method is thewith skin toner. Dr Lazslo was a large critic of fragrance in skin-care products; he developed a set of guidelines to determine the client's exact skin type and needs (called "clocking"); he stressed the significance of thorough cleansing and removing makeup; and established a testing lab to evaluate the tolerance for his products before they were sent to market. All of these ideas have become Clinique signatures, much to Erno Lazslo's chagrin. maintenance of hygiene and cleanliness as the foundation of caring for all skin conditions. All Clinique products are allergy tested and many are 100% fragrance free. Originality Clinique bears more than a subtle resemblance to the late Dr. Erno Lazslo's concept of skin care. His philosophies are mirrored at Clinique: cleanse with soap, rinse very thorughly and then re-establish pH with skin toner. Dr Lazslo was a large critic of fragrance in skin-care products; he developed a set of guidelines to determine the client's exact skin type and needs (called "clocking"); he stressed the significance of thorough cleansing and removing makeup; and established a testing lab to evaluate the tolerance for his products before they were sent to market. All of these ideas have become Clinique signatures, much to Erno Lazslo's chagrin.

Mission Statement

Mission statement

Clinique as a part of The Estee Lauder Companies is "Bringing

the best to everyone we touch". By "the best" we mean products,

the best people and the best ideas.