Sephora Case Essay

914 Words May 13th, 2013 4 Pages
Case Analysis: Sephora Direct: Investing in Social Media, Video and Mobile
Track 1 – Due 2/19
Yubin Kwon / Barret England/ Tuesday 4:30PM

Company Background/ History and Growth
Started as a single perfume shop in France by Dominique Mandonnaud in 1969, Sephora was designed for customer to assist themselves with multiple brand products as Mandonnaud rebranded his combined set of stores. Mandonnaud expanded the chain throughout France and acquired 8% of total French retail perfume market and was purchased by LVMH, luxury product group, for $262 million in 1997.
Sephora expanded their market with cosmetic products under LNMH’s ownership and opened its first U.S store in New York City in 1998. But as they faced difficulty supplying
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* 90% of consumers who accessed Sephora through mobile devices used iPhone
* Sephora is currently attracting many media companies due to their success in media marketing
* Sephora’s difficulty in estimating ROI has challenged them in determining optimal investment levels.

Major Competition and Other External Factors
Traditional | Digital |
* Department Store I. Macy’s II. Nordstrom * Single brand prestige cosmetic stores I. MAC II. Channel * Multi-brand specialty stores I. ULTA Beauty (closest competitor)Operates nearly 400 retail stores in U.S. Includes full-service salon and carries more than 21,000 products. | * Large online merchants II. Amazon.com III. Beauty.com * Newer online companies I. BirchboxMonthly membership fee of $10 with box of samples to consumers each month. II. Gilt GroupOffers limited set of luxury products at discounts for short period (called “flash sales”). |

SWOT…

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