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
This report has analysed Myer’s position in the Department Store industry, and identified the target demographic which should be targeted based on information found in the IBISWorld report. The 34+years old segment has shown signs of increased social media use as well as internet use. Moreover, a stark increase in mobile phone usage across the board has given Myer a need to change their current social media strategies as well as their other digital marketing techniques. Myer’s social media has been found to be poorly integrated, and each separate app is working on its own rather than cohesively which leaves some of their apps obsolete, while others thrive. Moreover, the rise in visual media and mobile phone internet usage is not being
Macy’s Inc. competes with other major players in the Department Store Retail Industry as well as with discounter, luxury stores, specialty stores, mail order and pure play internet retailers. Key competitors include Sears, J. C. Penny, Kohl’s, Nordstrom,
1) What significant changes have occurred in the Canadian mouthwash market in the past three years?
3. As Sephora increasingly dabbles with digital marketing and social media, which competitors should the company be most worried about?
Macy’s Inc. is one of the oldest enterprises in the United States, belonging to the department stores industry. (Hoovers.com) It is a national brand, owning 850 department stores. During the development of the company, there had several key decisions that were beneficial for the company. However, in recent years, the competitions in department stores industry become more and more serious.
The industry we have chosen is the department store-retail industry. Within this industry, we have chosen the department stores of JCPenney and Macy’s. We find this industry, as well as these two companies, interesting from a strategic perspective. JCPenney has recently undergone a massive strategic restructuring in regards to its pricing, brand offerings, and store layout, pushing it away from the typical department store strategy of discounts and coupons. Its new strategy has become much closer to Wal-Mart’s strategy of every day low prices. Macy’s, on the other hand, has restructured with a push from the economic
LUSH – a global pioneer brand name in cosmetic industry. LUSH which was defined as fresh and green is for its famous natural and handmade cosmetics, which will give customers a unique experience. In introduction we will discuss about the evaluation of LUSH cosmetics, their company profile and their impact on sustainability.
This report presents data describing the differences amongst the two department stores, their fundamental visions, and comparative statistics. Macy’s or Dillard’s: Differences amongst these competitors There are several aspects you can analyze from each department store. Major pieces do set each one apart from the other. Brand names carried by Macy’s and Dillard’s from an average shoppers point of view can go completely unnoticed unless price is involved. For trend shoppers brand names can either make or break a retail store. It can easily determine if he or she will walk to Macy’s or Dillard’s because they already know the store does or does not carry that brand. This is consistent with each department throughout both stores and
This beauty retail store SWOT Analysis includes several strengths and weakness that it has currently developed in its structure. However, there are a few opportunities that this company should take advantage to seize the moment and there are a few threats in which they should find new ways to overcome
Before ULTA entered the beauty market in 1990, a woman would have to go to multiple stores to find cosmetic, fragrance, and salon products. ULTA has become a woman’s one-stop-beauty department store, they house everything from brands such as Revlon to Estée Lauder, products such as nail polish to specialty shampoos, and they even offer makeup and hair services. In this industry of beauty there are many competitors and companies must stay ahead of their competition, ULTA has done this and more. At the same time they have to foresee any future problems while they continue to grow and find ways to overcome the barriers. Being a lover of cosmetics investing in a company such as ULTA would seem a
Sephora’s current target market are women who value quality products and associate with luxury brand names. Sephora also includes products for males such as fragrance, skincare, shaving, and other products. They are well known as a beauty store for females but do not have a reputation for selling men’s products.
Sephora makes large amount of money for JCPenney so that JCPenney is recommended to expand physical Sephora stores in the U.S and also all over the world. Despite of the declining popularity of in-shop stores, JCPenney can still invest more in online stores, enlarging this kind of retail channel.
Ulta Beauty is a chain beauty store with over 19,000 employees and 974 locations all across America. Ulta carries 20,000 products and 460 brands that consist of, cosmetic, skincare, haircare, and fragrance products for men and women. Majority of their inventory and sales come from cosmetic makeup brands. Ulta carries higher end makeup brands and well as lower end drug store brands. Their main target market and customers are women of all ages who use any type of beauty product. Their wide range of products can reach to all types of customers and they offer something that majority of people use. In 2013 Mary Dillon former chief of US cellular and chief executive of Mcdonald's became the new CEO. Since then Ulta sales have increased largely. At the end of 2015
Dominique Mandonnaud founded Sephora in France in 1969. Sephora was originally called Shop 8, but Dominique Mandonnaud re-named Shop 8. In 1993 Mandonnaud merged the Biblical name, Zipporah (Moses' wife), with the ancient Greek word "Sephos" which means pretty. Sephora stores specialize in selling cosmetic and beauty care products. Sephora was founded in 1969. That one store later expanded to
Sephora strive to continually build brand through direct marketing and Digital marketing platform. Sephora allocated 1 million budget on social media, mobile apps, and videos marketing. Bornstein Senior vice present of Sephora is anticipate to double the budget in 2011. Bornstein is thinking how to convinced LVMH and determine the impact to support additional funding.