Sephora case study

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1. SEPHORA DIRECT-INVESTING IN SOCIAL MEDIA, VIDEO AND MOBILE 2. OVERVIEW Sephora is doubling the marketing budget for new digital initiatives. It needs to define the…
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  • 1. SEPHORA DIRECT-INVESTING IN SOCIAL MEDIA, VIDEO AND MOBILE
  • 2. OVERVIEW Sephora is doubling the marketing budget for new digital initiatives. It needs to define the optimal marketing mix and KPIs
  • 3. ABOUTSEPHORA Parent Company 1969 1998Started in Product Range Cosmetics Fragrances Hair Skin Care SEPHOS + ZIPPORAH Pretty + Moses’s Beautiful wife Brand Name Origin
  • 4. KEY TOUCHPOINTS Sephora Stores Sephora.com Beauty Insider Sephora inside JC Penney
  • 5. STORES Vibrant stores that encourage trial and experimentation
  • 6. SEPHORA.COM
  • 7. BEAUTY INSIDER
  • 8. SEPHORAINSIDEJCPENNEY
  • 9. • 1000 stores in 23 countries • 288 brands were offered, representing over 20,000 products • Classic lines such as Clinique and Lancome to emerging brands such as Urban Decay and Too Faced (except Chanel and MAC cosmetics) • Pricing was identical to that of departmental stores • Promotions involved offering samples rather than discounting • Private label products in nearly every category • Target market in 2010 was 25-35 year old women many of who “grew up” with the company SEPHORAUSAIN2010
  • 10. COMPETITION Department Stores Single Brand Prestige Beauty Stores Multi-brand Specialty Stores Large online merchants Online Companies
  • 11. SEPHORA’S MARKETING PLAN
  • 12. CUSTOMERRELATIONSHIP MANAGEMENT- BEAUTY INSIDER 80% sales from Beauty Insiders
  • 13. KEY ELEMENTS OF THE 2010 MARKETING MIX Store Window Merchandising 32 page print catalogs sent to a portion of Sephora’s beauty insiders three times a year Print Ads in Magazines
  • 14. KEY ELEMENTS OF THE 2010 MARKETING MIX Sephora Direct Mail Pieces to Beauty Insiders Two major sales/Promotions Free gifts for beauty insiders
  • 15. KEY ELEMENTS OF THE 2010 MARKETING MIX ANIMATIONS: For store windows and Sephora’s homepage
  • 16. KEY ELEMENTS OF THE 2010 MARKETING MIX Email Marketing to Beauty Insiders Online Search Advertising and Online display advertising
  • 17. Core of Sephora’s Communication STORE CONNECT Sephora.com Social Media Mobile app
  • 18. ALL ABOUT SEPHORA.COM Encouraged site visitors to purchase online • Launched in 1999 • 15-20% of Sephora USA sales in 2010. • Benefits- Higher margins, lower overhead costs • Statistics: • 3 million unique visitors to site each month making Sephora one of the top 50 retail sites in the U.S • In 2010, Sephora.com had 310,000 visits each day, 11 page views per visit
  • 19. • Improving site conversion • Increasing traffic from online search results • Keeping clients for longer durations on the site • Reducing returns • Lowering call center visits • Encouraging repeat visits FORAYINGINTO SOCIALMEDIA RATINGSANDREVIEWS
  • 20. • By Late 2009, the consumer behavior online had shifted, with 16% of all online time spent with social media • Sephora created a Facebook “fan page” for its clients who wanted to follow Sephora and communicate with the company and each other online FORAYINGINTO SOCIALMEDIA FACEBOOK • Clients used FB to let Sephora know when they were out of products or if they had a bad experience at a store • Served as a forum for Sephora to do consumer research and get client feedback • Contests, sweepstakes, Sephora Claus (Wish list) PURPOSE
  • 21. • Question and answer forum with strong search functionality • Launched as a Beta site in September 2010 • Reasons why this was launched: • Launched due to a lack of archival capacity on Facebook • A survey conducted in 2009, found that respondents would be very interested in a central place to ask beauty questions • Vision: Safe and Private environment where clients could anonymously ask personal questions and get quick responses from Sephora experts or other members of the Sephora community • “more organized version of Facebook” FORAYINGINTO SOCIALMEDIA BEAUTY TALK
  • 22. BEAUTY TALK • Leaderboard- 35 different levels • Users who posted frequently had a symbol identifying them as a “beauty master” or “beauty maven” • New users may have a symbol labeling them as a “newcomer” • VIB clients had a VIB symbol next to their names
  • 23. • Problem of Promotion and blending with the Facebook site • Additional work would require more funding • Early usage of Beauty Talk was not as high as the initial interest in ratings and reviews • More in-depth and less well-understood experience BEAUTY TALK PROBLEMS WITH BEAUTY TALK
  • 24. TWITTER FORAYINGINTO SOCIALMEDIA #SEPHORA By September 2010, approx. 100,000 users were “following” Sephora on Twitter Purpose: Spread news about promotions, contests, events and other timely information Was used as a communication channel during the Sephora Claus sweepstakes
  • 25. SEPHORA ON YOUTUBE 100 videos that generated over 3 million views CONTENT BUCKETS FOR VIDEO • “How to” • Hot Trends • Short segments by founders of up and coming cosmetic companies USER GENERATED CONTENT Make Up Tutorials, Recent shopping Hauls from Sephora stores
  • 26. PLATFORMS & SERVICES Shop Shopping list Past purchases New products Today’s obsession Mobile offers Store locator Videos Ratings & reviews Gift registry Beauty advice Beauty Insider
  • 27. BENEFITS & COMPLAINTS A mobile app could help clients while shopping in stores Increase in-store purchases Some of the app features were too slow to download Sole Focus on IPhone
  • 28. NEW OPPORTUNITIES AGGREGATORS COLLABORATIVE RELATIONSHIP CROSS BRANDING OPPORTUNITIES
  • 29. THE QUESTION-WAY FORWARD?
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