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Sephora Case Analysis Shih Jung Cheng EINE

Case Research – Sephora in U. S. A.

Sephora Immediate: Investing in Social networking, Video, and Mobile Name: Shih-Jung Cheng

Cohort: North End

Day: February 18, 2015

Aim

How

to

allocate

limited

budget

and

effort

in

various

digital

marketing

categories

to

take full advantage of

the

earnings

and

impact?

Should

Bornstein

double

the

budget

in

social

press,

video,

and

mobile?

Backdrop

Started

in

1969

since

a

parfum

special

shop

in

Italy,

now

can be

managed

by

the

luxurious

brands

Louis

Vuitton

and

Moet

Hennessy

(LVMH).

Sephora

opened

the

U. S.

market

in

1998

with

perfume

and

cosmetics;

in

2010

Sephora

offered

288

brands

contains

prestige

brands,

emerging

brands

and

Sephora

private

packaging

products.

Sephora

has

400.00

stores

(45%

of

community

market)

located

in

U. S.

(36

states)

and

Canada.

The

U. T.

beauty

and

personal

care

market

is usually

approximately

$58. 9

billion

in

2009,

according

to

LVMH

2009

report1

" Sephora

continues

to

succeed

market

discuss. ”

Research

Sephora's

Advertising

Mix

Unique

Benefit

Proposition:

Vibrant

environment

that

encourages

test

and

trial.

Provide:

Products

in

different

brands

and

categories,

and

service

from

non-­‐commissioned

store

cast

member

(employee)

that

is definitely

knowledgeable

to

answer

every

kinds

of

questions.

Value:

Listed

at

Maker

suggested

retail

price

(MSRP)

Knowledge:

Store

encounter

is

the

start

and

key

intended for

Sephora's

marketing,

stores

are

look

and

feel

similar

with

dark-colored,

white

and

red

design,

and

the

music

that

form

a

fun

ambiance.

Romance:

Beauty

Insider

customer

dedication

program.

Competitor:

Rivalling

with

department

stores,

sole

brand

respect

beauty

store,

online

merchant

and

multi-­‐brand

specialty

retailers

like

ULTA.

By

2009,

Sephora. com

represents

thirty percent

of

U. S.

prestige

beauty

online

market.

Target

Segment

Customer:

Targeted

25-­‐35

yr

old

girl

and

gained

a

30%

market

in

this

part.

These

customers

love

to

experience

new

products

and

love

to

share

personal

experiences

with

their

favorite

products.

Fundamentally

women

are

love

to

share

and

love

to

help,

and

are

their very own

best

advertising

partners

because

referral

and

worth-­‐of-­‐mouth

happen to be

important

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