Estee Lauder 2011 Annual Report Download - page 58

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biggest concerns today. Over the past few years, our BeautyBank division, whose mission is to uncover the
potential for new ideas to become new brands, took GoodSkin Labs’ one-product wonder, Tri-Aktiline, and
built it into a multi-faceted, global brand. Exten-10™ — which helps restore skin’s youthful appearance and is
the brand’s best-selling moisturizer to date— is but one of its latest innovations.
MAKING PROGRESS WITH OUR “TURNAROUND” BRANDS
We recognize where there is room for improvement and take action to deliver results. We continue to work
hard to advance our turnaround brands by focusing each on only its most promising categories, channels
and markets. An example of this is the tremendous progress made by our Aramis and Designer Fragrances
(ADF) division this year. Comprised of nine distinctive brands, ADF makes up approximately 40 percent of
our Company’s fragrance business. In recent years, the global fragrance category has been in a slow
decline, affecting many fragrance businesses, including ours. Recognizing the need for change, ADF took
on the challenge of revitalizing its business model. It significantly reduced its cost of goods and reinvented
its product development processes. Importantly, ADF addressed the complexity of its brand portfolio to
maximize the impact of its biggest opportunities. It focused on prioritizing by region and strategically
boosting the support of its classic brands, such as the Donna Karan franchise, while decreasing the number
of new product launches. ADF expanded its distribution of the Coach Signature fragrance into U.S.
department stores while successfully introducing Coach Poppy. As a result of ADF’s evolution, the division
achieved profitable growth with Coach Poppy as a strong driver of retail sales in our U.S. fragrance
category. DKNY BeDelicious increased its rank globally, supported by strong “pull” strategies, a better mix
56
RIGHT: With a little knowledge, the right makeup and great tools,
Bobbi Brown believes every woman can be her prettiest, most confident self