Estee Lauder 2011 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2011 Estee Lauder annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 168

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168

of television, print and digital advertising and an international social networking campaign entitled “DKNY
Core Club.” We are pleased to report that our prestige fragrance business grew well above the
performance of the fragrance category in general.
BUILDING OUR CAPABILITIES AND ACHIEVING COST SAVINGS
As part of our strategy, we look at the health and structure of our Company from different angles in order
to ensure that we can continue delivering sustainable, profitable growth. Over the past few years, we have
been able to better align our organization with our strategy by transforming how we utilize and leverage
our people, processes and technology through our Strategic Modernization Initiative (SMI). SMI addresses
the need for more sustainable operations and has continued to deliver new processes and technology
infrastructure to support our corporate strategy. We also continue to deepen our commitment to driving
out non-value-added costs to increase our investments in activities with the biggest returns. In fiscal 2011,
we worked tirelessly across the organization to reduce expenses and achieved a total cost savings of
approximately $200 million. We also tightened the relationship between our Global Supply Chain and our
brand teams early on in the innovation and research and development process. With these functions more
closely collaborating with our brands, we are able to better utilize our intellectual property and boost our
ability to translate good ideas into great concepts, and great concepts into successful market opportunities.
59
Our Strategic Modernization Initiative addresses
the need for more sustainable operations
and has been delivering new processes
and technology infrastructure to support our
corporate strategy.
LEFT: Aveda is at the forefront of sustainable packaging with many of its products using
recycled packaging