This document summarizes research conducted for Estée Lauder on millennial makeup users. It provides background on Estée Lauder and their goal to be more modern and aspirational. A survey of 200 millennial women found that over 60% would consider purchasing Estée Lauder. The research also found that millennial women care about affordability and long-lasting products. The document concludes that emphasizing Estée Lauder's long-lasting benefits could help the brand appeal more to millennials and overcome its perception as expensive.

1. Google Confidential and Proprietary 11
Estée Lauder
Consumer Insights
Alejandra Ramirez
Emily Theil
Kim Van Der Wall
Victoria Lara
Lance Dunbar
May 5, 2014

2. Google Confidential and Proprietary 22
Agenda
Company
Background
Company
Background HypothesisHypothesis MethodologyMethodology Moving
Forward
Moving
Forward
Insight
Express
Survey
Results
Insight
Express
Survey
Results

3. Google Confidential and Proprietary 33
In 1946 Joseph Lauder
and his wife Josephine
Esther Mentzer (Estée
Lauder) began producing
cosmetics in NYC.
The company has
expanded to 20+ global
prestige beauty and
personal care brands with
Estée Lauder as the
flagship brand.
The Estée Lauder Story

4. Google Confidential and Proprietary 44Source: Estée Lauder Companies Q2 FY 2014 Earnings Call
According to Estée Lauder
Companies’ Q2 FY14
Earnings Call, Esteé Lauder
has an ongoing effort to be
more modern and
aspirational. To support this
they have new products,
Pure Envy Sculpting Lipstick
and Nail Lacquers, that
should generate excitement.
Modern & Aspirational Brand

5. Google Confidential and Proprietary 55
If Estée Lauder emphasized
it’s long-lasting benefits to
Millennial women it would
gain relevance in the
category and overcome it’s
expensive price perception,
helping the brand achieve
long-term growth.
Hypothesis

6. Google Confidential and Proprietary 66
Research Methodology
Qualitative
Research
Survey
Quantitative
Research
Desk Research
Social Media
Listening
Focus Group

7. Google Confidential and Proprietary 77
InsightExpress Methodology
 Sample Size Description:
 Females between the
ages of 18 and 35
 Wear makeup
 May or may not be
Estée Lauder brand
users
 Live in urban areas in
the U.S.
 Have internet access
 Sample Size: 200
 Launch Date: April 15,
2014
 Completion Date: April
17, 2014

8. Google Confidential and Proprietary 88
InsightExpress Results
72%
used Mascara in
the last 30 days
43%
purchase
Estée Lauder
cosmetics
61%
wear makeup
every day
69%
purchase cosmetics
at wholesale
retailers
60%
agree they
would consider
purchasing
Estée Lauder
in the near future
…and there’s so much more
Source: InsightExpress, Estée Lauder, April 17, 2014

9. Google Confidential and Proprietary 99
Millennial Makeup Users
She…
buys eye makeup products,
purchases CoverGirl &
Maybelline,
shops at wholesale retailers,
prefers shopping in-store,
and her favorite celebrities
are Jennifer Lawrence & Mila
Kunis.
Source: InsightExpress, Estée Lauder, April 17, 2014

10. Google Confidential and Proprietary 1010
Where They Shop for Cosmetics
 68% prefer to shop in-store
 69% typically buy at
wholesale retailers (i.e., Wal-
Mart & Target)
 Discounts & promotions are
the number one influencer
that determines where they
buy cosmetics
 Product variety is ranked
second when determining
where they buy cosmetics
Source: InsightExpress, Estée Lauder, April 17, 2014

11. Google Confidential and Proprietary 1111
Spending Behavior for Cosmetics
 Affordability is the most
important factor when buying
for Seniors to Seniors*
 Affordability & Long-Lasting
are the most important
factors for Working
Millennials**
 78% approximately spent up
to $50 they last time the
purchased makeup
Source: InsightExpress, Estée Lauder, April 17, 2014
* Females aged 18-24
** Females aged 25-34

12. Google Confidential and Proprietary 1212
Makeup Usage
 72% use Mascara
 Category usage for the
last 30 days:
1. Eye (Mascara, Eyeliner,
Eye Shadow)
2. Lip (Lip Stick, Lip Gloss,
Lip Liner)
3. Face (Foundation,
Powder, Concealer,
Blush)
Source: InsightExpress, Estée Lauder, April 17, 2014

13. Google Confidential and Proprietary 1313
Competitive Perception
Source: InsightExpress, Estée Lauder, April 17, 2014
Has a wide product variety 65% 70% 57%
Offers the colors I like 59% 67% 53%
Focuses on skin care 58% 50% 52%
Is within my price range 44% 50% 42%
Would consider purchasing
in the near future
60% 64% 53%
Fits with my lifestyle 50% 55% 44%
Likes how it makes me feel 47% 52% 47%

14. Google Confidential and Proprietary 1414
Perception of Estée Lauder
Seniors to
Seniors
Working
Millennials
40% Already buy Estée Lauder products 46%
47%
Feel the brand fits with their
lifestyle
52%
44%
Like how the brand makes them
feel
49%
60%
Would consider purchasing
the brand in the future
60%
24% Make $40k+ annually 55%
Source: InsightExpress, Estée Lauder, April 17, 2014

15. Google Confidential and Proprietary 1515
If Estée Lauder emphasized
it’s long-lasting benefits to
Millennial women it would
gain relevance in the category
and overcome it’s expensive
price perception, helping the
brand achieve long-term
growth.
Revisiting the Hypothesis

16. Google Confidential and Proprietary 1616
Moving Forward
Consider…
taking advantage of existing positive perceptions (skin
care and product variety)
 aligning the long-lasting benefit to higher price points
nurturing Senior to Seniors to develop a long-term
relationship

17. Google Confidential and Proprietary 1717
Q&A