At the eTail Palm Springs Conference on February 27, Doug Jensen, Senior Vice President of Go-to-Market Analysis and Activation at The Estée Lauder Companies, unveiled a revolutionary shift in the company's marketing strategy. Highlighting his 10-year transition from traditional to digital marketing, Estée Lauder currently devotes 90% of his budget to digital channels, investing in owned brand assets, collaborations with retailers, and collaborations with creators. highlights the vital role of partnerships.
Revolutionize your marketing strategy
Estée Lauder's innovative approach combines brand equity and performance marketing. The company leverages marketing mix modeling (MMM) to closely analyze the effectiveness of marketing efforts at various stages of consumer behavior. This multi-step strategy not only increases brand favorability, but also optimizes budget allocation and ensures balanced investments in both brand building and direct marketing strategies.
Adapt to viral marketing opportunities
Mr. Jensen highlighted the importance of agility in today's fast-paced digital environment, citing the example of a viral video for Dr. Jart's Cicapair product that significantly increased sales. This case highlights the potential of viral he marketing to rapidly expand brand awareness and consumer engagement. Estée Lauder's MMM ecosystem plays a critical role in this dynamic environment, allowing the company to quickly adapt its strategy and take advantage of unexpected opportunities.
Insights from the MMM ecosystem
Estée Lauder's MMM ecosystem provides detailed marketing impact analysis and facilitates strategic budget allocation based on key performance indicators. This nested ecosystem allows companies to more accurately measure brand favorability and consideration, allowing them to refine their marketing strategies. Mr. Jensen's keynote at eTail Palm Springs highlighted the transformative impact of digital marketing and demonstrated how Estée Lauder is at the forefront of redefining the marketing paradigm.
Estée Lauder's strategic shift to digital marketing represents a broader trend in the beauty industry, where digital channels are increasingly becoming the primary vehicle for consumer engagement. This shift highlights the need for brands to be more dynamic in responding to changes in consumer behavior and market trends. As Estée Lauder continues to innovate and adapt, it is setting a benchmark for other companies in the industry, emphasizing the importance of digital fluency in today's market environment.
