Estee Lauder Targets a Wide Variety of Consumers

When one mentions Estee Lauder Companies (NYSE: EL), make-up and other beauty/skincare products is the first thing which pops up in most women’s minds.  The company itself includes several well-known brands, including MAC, Clinique, Aveda, Sean Jean (fragrances), and of course, the Estee Lauder line itself. 

The company was first launched in 1946 by Estee Lauder and her husband, Joseph.  At the time, they only had four skincare product, but soon expanded to a full make-up line.  A sister brand, Clinique (launched in 1968), was one of the first to have a men’s line when it made its debut in the 1970s.  It is interesting to note that Estee Lauder’s brands encompass many different lifestyles.  Marketing for Bobbi Brown targets the sophisticated, suburban mom going for a more natural look, while MAC is more wild and runway-crazy (MAC ads tend to feature very bright colours on its models).  Of course, the brands aren’t just about parties and fashion – they have a serious side too.  For many years, MAC has been at the forefront of AIDS Awareness. The Estee Lauder brand itself supports breast cancer research annually.

Over the years, there have been a few controversies over Estee Lauder Companies, including a boycott of the company’s brands by pro-Palestinian groups – apparently because of son, Ronald Lauder’s pro-Israel activities.  An ad for a Sean Jean fragrance featuring Sean “Diddy’ Combs and two women was seen by many as too sexual.  There was also a viral video featuring comedienne Sandra Bernhardt talking about certain theoretical individuals who were “a little freaked out,” and a “right-winged, Republican, thin-lipped b!%$h.”  That upset many, and the company ultimately had to take down the video. 

On Tuesday, April 7, Estee Lauder Companies opened at 25.30 and closed at 24.98.  Its 52- week highs and lows were 54.75 and 19.81.