A Comparison Of Clinique Marketing Strategy - Case Study Example

A Comparison of Clinique Marketing Strategy For Female Skin-Care Products in the United Kingdom and in China by (Course) (School) November 30, 2006 A Comparison of Clinique Marketing Strategy For Female Skin-Care Products in the United Kingdom and in China: Finding a fountain of youth is the dream of many women in a society that sets impossible standards for what is considered ideal. Models on television invariably are blemish-free and wrinkle-free, with promises of miracles to be wrought through use of a variety of beauty products. Over time, cosmetics have been accepted as necessary products for women, but successful companies in this flourishing business do not stand on their laurels. They study market trends and change their products to meet customer demand. With methods of communication growing and new technology allowing for instant information, legitimate objections arose in the mid-20th century in the skin care industry, with allergies, environmental concerns, possible harm from chemicals, artificial colors, synthetic fragrances and dishonest advertising creating a need for continuing research extending beyond beauty and calling for attention to health concerns. The company which looks ahead to identify and resolve global barriers is the company which will garner a larger market share. Company Background (Clinique) Este Lauder is one of the best-known cosmetic companies in the world, but when it was noted that certain beauty products were having an adverse effect on a certain percentage of the people using them, a product needed to be developed to offset these concerns. The answer was Clinique, launched in 1968 as an allergy-tested, fragrance-free product, based on research and related expertise of leading dermatologists. Marketed as a three-step system-cleanse, exfoliate, moisturize-its simplicity appealed to a female population faced with too many options for cosmetic use. In determining market strategy for Clinique products, the company focused on its development of skin care products as much for health as for beauty, and offered the public a simple 1-2-3 plan-a facial soap for cleansing, a clarifying lotion for exfoliation and a product called Dramatically Different Moisturising Lotion for the final step. These three items were said to be the only products necessary for healthy skin. The parent company, Este Lauder, had already established itself as an icon in beauty and fragrance (Xenias), and over the years Clinique developed a positive brand image as well. In addition to the simplicity of their image, the company's Web site was equally simple-illustrations of products with very little or no text. But with businesses expansion taking place in order to reach global markets, the simplicity of Clinique's marketing strategy might not have the same effect in countries other than UK and USA. Purpose of Study China is the market of the future, and successful companies expanding their bases throughout the world see China as a necessary market. What are the differences in the way Clinique reaches domestic customers and customers in other cultures Will the 1-2-3 plan work in China What barriers must be faced Two recent articles included Clinique in a list of cosmetic companies accused of using harmful chemicals in their products in China (China Monitoring 2006; Overseas Companies 2006). At present the international Clinique Web site doesn't seem to offer a simple doorway into other countries, at least for researchers. Clinique does, as a way to reach Chinese customers, discuss a product called Clinique Derma White which focuses on Asian markets. Derma White is an update on Clinique's Active White line, developed by Korean dermatologists to address pigmentation in the skin. Derma White uses blackout yeast to break up pigment into smaller fragments and exfoliants help remove them from the skin (Clinique 2006). The Asian culture considers white skin to be beautiful, while Western countries and cultures seem to prefer tanning products. The emphasis on darker skin in the United Kingdom is evident on Clinique's UK Web site, featuring Pink Chocolate, intended to enhance darker skin (Clinique 2006). This could be an effort to reach the immigrant population from India and Africa. Marketing Objectives Online shopping has changed the way people shop, and this is clearly the case with people in China who can avoid high taxes and prices on imported products by shopping online (Crocker and Tay 2004). Physical location of products and customers is no longer important, with the ability to get any product from anywhere in the world through an online ordering system. The importance is in drawing customers to a specific site. With Clinique, marketing strengths include introducing new, innovative products directed at specific customers and the use of language in the product names which immediately describe their attributes, i.e. Superdefense Triple Action Moisturiser and Lifting Face Serum as well as Dramatically Different Moisturising Lotion, a standard of the company since its inception. A weakness, however, could be the company's apparent belief in a customer knowing who they are, what they do and how they do it. They are taking for granted that their products will sell themselves. Clinique has not even begun to tap the opportunities to sell their products through the Internet. Much of the research information on skin care is filtered through the Este Lauder advertising and press releases. It is also important for them to be aware of negative commentary online which might affect their market share if they don't meet the challenge of offsetting negativity. At present one of the major efforts by Clinique is to increase the male customer base, and much of their advertising focuses on that market. In the meantime, the female market might be discouraged when trying to get information on the products they want, especially in China, where women are not considered worth cultivating but are beginning to see themselves in a more attractive light. Another important market for Clinique is the ageing population looking for anti-ageing products such as "Stop Signs" said to "make time stand still" (Clinique Web site 2006). Cosmetics as a health aid is found in Clinique products for acne, enlarged pores, dullness, uneven skin tone, lines/wrinkles, excess oil, and dryness, and products to protect against sun damage and pollution (Clinique 2006). Methodology for Analysis The SWOT Analysis below is the simplest way to start exploring a company, as utilised above, and once the analysis has been made, the areas of necessary research will be much clearer: http://www.marketingteacher.com/Lessons/lesson_swot.htm Este Lauder, parent company of Clinique, is listed as the No. 4 beauty company in the world. Proctor and Gamble in the United States is No.1, followed by L'Oral in France, Unilever in the United Kingdom, and Este Lauder, with headquarters in New York (Caridad 2006). The question that arises for No. 4 is how can they become No. 1 References Caridad, A. (ed.) 2006, 'Top 20 Global Beauty Companies', Beauty Packaging. Retrieved November 27, 2006, from http://www.beautypackaging.com/articles/2006/10/top-20-global-beauty-companies.php 'China Monitoring Other Top Cosmetic Brands for Harmful Chemicals', 2006. Carefair.com/Skincare, Retrieved November 26, 2006, from http://www.carefair.com/html/China_Monitoring_Other_Top_Cosmetic_Brands_for_Harmful_Chemicals_888.html 'Clinique', 2006. Wikipedia. Retrieved November 26, 2006, from http://en.wikipedia.org/wiki/Clinique Clinique Web site (United Kingdom). Retrieved November 27, 2006, from http://www.clinique.co.uk/ Crocker, G., and Tay, Y. 2004. 'What It Takes to Create a Successful Brand', The China Business Review, July-August 2004. Retrieved November 26, 2006, from http://www.monitor.com/binary-data/MONITOR_ARTICLES/object/193.PDF Overseas Companies Brush Up Cosmetics Earnings, 2006. China Economic Net:Shanghai Daily. Retrieved November 26, 2006, from http://en.ce.cn/Industries/Consumen-Industries/200611/02/t20061102_9251855.shtml Xenias, A. 2002, 'The Sweet Smell of Success: Este Lauder Honored at World Trade Week Event', Export America, retrieved November 26, 2006, from http://www.ita.doc.gov/exportamerica/NewOpportunities/no_EsteeLauder.pdf Read More