Elizabeth Arden the Founder. Florence Term Paper

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Flo retaliated by acquiring Harry Johnson and 11 other employees who then worked for Helena. When Helena opened a salon in New York, Arden opened a counterpart elsewhere. Parallelisms appeared to occur between them in that they both entered the men's skin care industry at roughly the same time. They also both married exiled princes after their first marriages ended in divorce.

Flo or Arden also lost half a million dollars in sales in the first two years since her divorce with Tommy, but being inherently innovative, she managed the crisis, recovered and proceeded to lead the industry. Records bear these out. While many businesses flopped during the Great Depression, Elizabeth Arden not only stayed and spent. It also bought an office building and a penthouse in New York during the stock market crash of 1929 and opened several other salons in the 30s.

Elizabeth Arden demonstrated an unwavering commitment to quality and excellence in her products and adhered to high standards from ingredients to packaging. She owned more than 100 salons in North America and Europe and manufactured approximately 300 cosmetics and fragrances. Flo or Elizabeth Arden was a hard-driven businesswoman whose business grossed around $60 million per year at the time of her death in October 1966. Her business empire consisted of 17 different corporations and 40 salons throughout the world. With these feats, it can be contended that Elizabeth Arden invented the American beauty industry.

V. Major Product Lines. These are Blue Grass Perfume; Green Tea Perfume created in 1999, Red Door Perfume, Splendor Perfume, Sunflowers Perfume for Women in 1993, and True Love Perfume for Women in 1994.

Green Tea Perfume was a homeopathic fragrance, made up of caraway, citrus, peppermint, musk, and oak moss. Red Door Perfume was a blend of red rose, violet, jasmine, lily of the valley, orchid and a touch of honey. Splendor Perform was a floral blend of water lily, magnolia and white musk. A mix of melon, cyclamen, peach, musk, bergamot, jasmine, rose and sandalwood produced Sunflowers Perfume. And True Love Perfume for Women was made from musk, lotus, sandalwood, vetiver, iris, narcissus and jasmine. These and Arden's other scents are marketed under many brand names, including Elizabeth Arden, Red Door, Arden Beauty, White Shoulders and Elizabeth Taylor's White Diamonds and Passion. It also sells colognes and skin care products.

Elizabeth Arden has a 8.3% sales growth yearly, grossed $814 million in sales in 2004 and has a net income growth rate of 89%. It has 2,150 employees. Its top competitors are Coty, Inc., Estee Lauder and Revlon.

VI. Current Market Activities. A study conducted on Elizabeth Arden by Lubin Lawrence, Inc. reported that women were turned off by its dictates, perceived that Arden's concept of beauty was unreal and unattainable, the beauty industry was irrelevant to their real lives and that they had little relationship with brands.

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Arden president and chief executive Peter England commented that, while the industry focused largely on glamour, people's view of beauty changes. He admitted to Arden's struggling against giant competitor Estee Lauder Companies and that, with a $50-million corporate budget, Arden would redefine its image through an unconventional campaign. That campaign would tell women that beauty comes from within and not from a jar.

England said that this would be Arden's message in introducing a host of products that would help women find inner beauty, such as through colorful lipsticks, new fragrances and special skin care products. All Arden products would come under the theme, "Embrace Yourself." A beauty industry trade publication editor, Allan Mottus of the Informationalist, commented that Arden was attempting a dialogue with the consumer in creating subliminal trust after saturating the market with one product after another.

Last April, Arden announced that the J. Walter Thompson of New York would do the promotion and advertising for the campaign, which began last August. The campaign includes blind teasers in bus shelters and billboards in New York, Los Angeles and Chicago. Single words with "ea" in Arden's signature red would be flashed, followed by sentences that would complete these single words, like "I am a fearless girl... I am the leader in my free world" and Arden would be the messenger of these messages.

National print ads last September carried black-and-white un-retouched photos of various ethnic groups and ages, rather than the traditional highly stylized glamour shots of the industry. The creative minds at Arden said the campaign would involve real women, who would like to feel and look their best at any age. It would target women's sense of insecurity about looks and age, particularly in response to recent findings that women today would want not only to cover or mask their imperfections, but also make skin care and make-up bring out their natural best.

The campaign targets women aged 25 to 55. The NPD Research of Port Washington, New York said that Arden grew only at 3% last year and that Estee Lauder widened its share of the market in recent years, particularly with its Clinique and other prestige brands, which accounted for 44.9% of the market.

Arden would introduce the Millennium Energist Revitalizing Emulsion, using soy technology in treating aging skin and Lip Hooray lipstick to fight bad breath. Over and above, Arden would continue to tap into the heritage of the Arden proven lines to help revitalize its business through image projection and technical advancements......

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