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Harvard Case - Helena Rubinstein: Making Up the Modern Woman

"Helena Rubinstein: Making Up the Modern Woman" Harvard business case study is written by Geoffrey G. Jones, Kathy Choi. It deals with the challenges in the field of General Management. The case study is 22 page(s) long and it was first published on : Apr 28, 2017

At Fern Fort University, we recommend Helena Rubinstein adopt a strategic approach to international expansion, focusing on emerging markets with a strong emphasis on adapting her brand to local cultures and preferences. This should be accompanied by a robust digital marketing strategy, leveraging technology and analytics to reach a wider audience and personalize the customer experience. Furthermore, we recommend the implementation of a strong corporate social responsibility program to enhance brand image and resonate with socially conscious consumers.

2. Background

Helena Rubinstein, a pioneering businesswoman, built a global cosmetics empire based on her innovative products and a bold vision for empowering women. The case study highlights her journey from a small shop in Australia to a global brand, navigating challenges like the Great Depression and World War II. The case focuses on the 1950s and 1960s, where Rubinstein faced a changing market landscape with the rise of new competitors and the need to adapt to evolving consumer preferences.

The main protagonists of the case study are Helena Rubinstein herself, a visionary entrepreneur, and her company, facing the challenge of maintaining its market leadership in a rapidly evolving industry.

3. Analysis of the Case Study

This case study can be analyzed through the lens of several frameworks:

• SWOT Analysis:

  • Strengths: Strong brand recognition, innovative product development, global reach, strong leadership, and a focus on empowering women.
  • Weaknesses: A potentially rigid organizational structure, reliance on traditional marketing methods, and a lack of focus on emerging markets.
  • Opportunities: Expanding into emerging markets, leveraging digital marketing, and developing new product lines catering to diverse needs.
  • Threats: Increasing competition, changing consumer preferences, and economic instability.

• Porter's Five Forces:

  • Threat of New Entrants: High - The cosmetics industry is relatively easy to enter, with many new brands emerging.
  • Bargaining Power of Buyers: Moderate - Consumers have a wide range of choices, but the brand loyalty of established brands like Helena Rubinstein provides some protection.
  • Bargaining Power of Suppliers: Low - The raw materials used in cosmetics are readily available from numerous suppliers.
  • Threat of Substitute Products: High - Consumers can choose from a wide range of beauty products, including natural and organic alternatives.
  • Competitive Rivalry: High - The cosmetics industry is highly competitive, with many established brands vying for market share.

• Growth Strategy: Rubinstein's strategy of international expansion aligns with the Market Development strategy, focusing on expanding into new geographic markets with existing products.

• Marketing Strategy: The case highlights the need for a shift from traditional marketing to a more modern approach, incorporating digital marketing and data-driven decision making to better understand and target specific customer segments.

• Organizational Culture: The case suggests a culture of innovation and a strong focus on customer needs, but also highlights the potential for a bureaucratic and hierarchical structure that could hinder agility and adaptation to changing market dynamics.

4. Recommendations

1. International Expansion Strategy:

   • Focus on Emerging Markets: Identify high-growth potential markets like China, India, and Brazil, where demand for cosmetics is increasing.
   • Adapt Products and Marketing: Tailor product offerings and marketing campaigns to local cultural preferences and sensitivities.
   • Strategic Partnerships: Explore joint ventures or partnerships with local companies to gain market access and expertise.

2. Digital Transformation:

   • Develop a Robust E-commerce Platform: Establish a user-friendly online store to reach a wider audience and offer convenient shopping experiences.
   • Leverage Social Media: Engage with customers on social media platforms to build brand awareness, gather feedback, and create a sense of community.
   • Implement Data Analytics: Utilize data analytics to understand customer behavior, personalize marketing messages, and optimize product offerings.

3. Corporate Social Responsibility (CSR):

   • Focus on Sustainability: Adopt environmentally friendly practices in manufacturing and packaging, and source sustainable ingredients.
   • Support Women Empowerment: Partner with organizations that promote women's education, health, and economic opportunities, aligning with the brand's core values.
   • Transparency and Ethical Sourcing: Be transparent about sourcing practices and ensure ethical treatment of employees throughout the supply chain.

4. Organizational Change Management:

   • Embrace Agility: Foster a more agile and responsive organizational structure, empowering employees to adapt to changing market conditions.
   • Invest in Talent Management: Develop training programs and leadership development initiatives to equip employees with the skills needed for success in the digital age.
   • Promote Diversity and Inclusion: Create a diverse and inclusive workplace that values different perspectives and fosters creativity.

5. Basis of Recommendations

These recommendations are based on the following considerations:

1. Core Competencies and Consistency with Mission: The recommendations leverage Helena Rubinstein's core competencies in product innovation and brand building while aligning with the company's mission of empowering women.
2. External Customers and Internal Clients: The recommendations focus on understanding and meeting the needs of diverse customers through targeted marketing and product development, while also empowering employees through training and development programs.
3. Competitors: The recommendations aim to differentiate Helena Rubinstein from its competitors by emphasizing a strong digital presence, ethical sourcing, and a commitment to social responsibility.
4. Attractiveness: The recommendations are expected to increase market share, improve profitability, and enhance brand value.

6. Conclusion

Helena Rubinstein's success was built on innovation, a strong brand, and a deep understanding of her target audience. To maintain its leadership position in the evolving cosmetics industry, the company needs to embrace digital transformation, expand into emerging markets, and prioritize corporate social responsibility. By implementing these recommendations, Helena Rubinstein can continue to empower women and build a sustainable and profitable future for its brand.

7. Discussion

• Alternative Strategies: Other alternatives could include focusing on niche markets, acquiring smaller competitors, or developing entirely new product categories. However, these options may carry higher risks and require significant investment.
• Risks and Assumptions:
  • Risk of Failure in Emerging Markets: Entering new markets can be challenging due to cultural differences, regulatory hurdles, and competition.
  • Assumption of Digital Adoption: The success of the digital strategy relies on the assumption that consumers will embrace online shopping and digital marketing channels.
  • Assumption of Consumer Interest in CSR: The effectiveness of the CSR strategy depends on the assumption that consumers are willing to pay a premium for ethical and sustainable products.

8. Next Steps

1. Market Research: Conduct thorough market research to identify the most promising emerging markets and understand local consumer preferences.
2. Digital Strategy Development: Develop a comprehensive digital strategy, including e-commerce platform development, social media engagement, and data analytics implementation.
3. CSR Program Implementation: Develop and implement a robust CSR program that aligns with the company's values and resonates with consumers.
4. Organizational Change Management: Implement change management initiatives to foster a more agile and responsive organizational culture.

By taking these steps, Helena Rubinstein can position itself for continued success in the dynamic and competitive global cosmetics market.

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Case Description

This case examines the entrepreneurial career of Helena Rubinstein before 1938. Rubinstein is widely considered the single most important female entrepreneur in the United States in the 20th century. She was born in Poland but immigrated to Australia where she started a cosmetics company. She subsequently moved first to Europe, and then to the United States during World War I, where she engaged with relentless competition in the upscale cosmetics market with her rival Elizabeth Arden. The case examines how Rubinstein created a luxury brand and enables a discussion of the impact of such brands on women. Rubinstein articulated the view that cosmetics were liberating for women, but some of her strategies, such as wearing white coats in many advertisements designed to signal that she was scientifically qualified, can be used to support a more critical view of the beauty industry.

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