Case Analysis Coursework Example | Topics and Well Written Essays - 750 words - 1

Case Analysis - Coursework Example A company with the biggest presence in the cosmetics industry is Estee Lauder. Its products are unique. The qualities of the manufacturing capabilities of this company spark interest of any retailer Kohl’s. Kohl sales lately have been depleting, thus the company need a boost. The executives identified the cosmetics department as its biggest weakness since in comparison with the industry sales generated by the cosmetics departments of other retailer their fell 93% short in overall sales in comparison with the industry standard. In order to make the cosmetics initiative work this company utilized an innovative marketing strategy to get the ball rolling. This report analyzes the alliance formed by Estee Lauder and Kohl to bring cosmetics products to Kohl’s stores. The rare agreement Estee Lauder and Kohn entered was a marketing alliance based on Estee Lauder producing a new exclusive cosmetics brand for Kohl’s of top quality cosmetics which would not be associated in any way with the typical Estee Lauder products eventhough they would be suppliers. Branding is a marketing strategy that can pay off great dividends. Branding is strategy that creates value for a firm by investing the image of a brand through advertising and other marketing tactics in order to create customer loyalty which brings recurrent sales (Kotler). The branding strategy is also very attractive for a company since it creates a goodwill for the company due to the fact customer pay premium price for branded products. The benefits associated with offering an Estee Lauder based product line for Kohl include turning cosmetics business from a losing operation to a income generating department that could easily account for 1/7th in the total sale of the stores instead of th e current 1%. The profit margin of the company will rise and the customer traffic associated with cosmetics sales will indirectly boost overall sales since the