Kohl's Tie-Up with Estée Lauder - Influencing Customer Perceptions*

            


Details

Case Code : CLCB014
Publication date : 2005
Subject : Consumer Behavior
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

Kohl's Corporation (Kohl's), Estée Lauder, Target, Wal-Mart, Procter & Gamble, BeautyBank, Brand Differentiation, Prestige Cosmetics, Mass Distribution and Mass market cosmetics

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The caselet, Kohl's Tie-Up with Estée Lauder: Influencing Customer Perceptions, gives an overview of the advantages that Kohl's and Estée Lauder derived by entering to an alliance. For Kohl's, display of the up-market Estée Lauder cosmetic brand helped in improving the Kohl's brand image. The display also helped Kohl's to fill a gap in its product lines. For Estée Lauder, the deal brought in increased sales.

Issues:

» The role of an alliance in influencing consumer perceptions about a company's product offerings
» How a company manages an alliance
» How alliances can be used as a strategy to eliminate gaps in the product lines offered by a company

Introduction

Kohl's Corporation (Kohl's), retail chain headquartered at Menomonee Falls, Wisconsin, the US, with 637 department stores, had net sales of $11.7 billion and a net income of $730.4 million in 2004.


Kohl's did not have an established cosmetic line as part of its product mix and therefore in 2004, it entered into an agreement with Estée Lauder, a US-based cosmetic company founded in 1946, which had gained worldwide reputation as a maker of luxurious cosmetic products...

Questions for Discussion:

1. What are the elements that Kohl's has taken into consideration as part of the deal so that the company maintained its positioning as a store offering value pricing in branded merchandise?

2. How did Kohl's try to match the product image of the new cosmetic range it was going to display with the self image of the customer?


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