Estee Lauder 2010 Annual Report Download - page 9
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innovation with La Mer’s Regenerating Serum, as well as in fragrance with pureDKNY. M.A.C’s new Viva
Glam “From Our Lips” campaign featuring Lady Gaga and Cyndi Lauper was the most successful campaign
in the 16-year history of the M.A.C AIDS Fund, and the successful launch of Aveda’s new mobile e-commerce
site is one of many examples of how we are connecting with consumers by expanding our digital capabilities.
The Company also set out to improve our underperforming brands in an effort to boost overall profitability.
We took many steps to address different issues and, as a group, these brands turned around sharply.
We made the difficult, but strategically necessary decision to discontinue the wholesale distribution of
Prescriptives. As a testament to the team overseeing the plans and our retailers, we closed that business at
less cost than anticipated and adapted some of its best-selling products to our other brands. Through social
media efforts we also found that there is a very determined and passionate group of women that love the
brand. And by listening, we have decided to continue offering Prescriptives’ top-selling products online.
Additionally, our Aramis and Designer Fragrances division showed great improvement. Its significant
turnaround was driven by fewer, more impactful launches, improving its mix of business and distribution,
tightening inventory and numerous savings in cost of goods. We will continue working on improving the
profitability of certain smaller brands, which have made good initial progress.
In essence, we have reorganized our Company and changed many of our processes to grow and sustain
our leadership position in global prestige beauty. We will remain focused on our goals and build on the
significant progress we’ve made as we continue to prioritize four key initiatives:
Creativity and Innovation: Creativity will drive our success today, tomorrow and in the future.
However, to realize the fullest potential of our innovation, we must connect it to our consumers
worldwide, allowing them to be our inspiration. By using more in-depth consumer insights to ignite
our intuition, we can focus our talents on the greatest opportunities and produce even greater
breakthrough products and solutions.
High-Touch: We will apply our High-Touch service model to promote total value that goes beyond
price or technology in new and dynamic ways across various channels. Our personalized information
and education is a powerful asset and a point of differentiation from mass competitors, particularly
in stores.
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