SEPHORA
A Brand Case Study
Nikki Kerber PBDS 705 • November 21, 2011
Nikki Kerber • PBDS 705 • The Design/Business Link
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History of SEPHORA: The Foundations of Modern Design
Founded in late 1969 as Shop 8, Dominique Mondonnaud opened a speciality
perfumery retail store in Franceʼs Haute Vienne region that was revolutionary for its time due to the way the store was operated and designed (”Sephora holdings s.a,” 2011, p. 1). While department stores heavily relied on the tried and true commission-based model to sell perfume and essential perfume oils, Dominique Mondonnaud set out to create an innovative and unique way to sell perfume and cologne. In 1979, Mondonnaud created a cutting-edge retail model that dramatically
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Sephora: The Brand
As a brand, Sephora is the strongest competitor in the beauty industry. When
individuals think of the Sephora brand the overall feeling is that Sephora is the leader in perfume, skin care, and cosmetics due to the way the company is marketed, advertised, and designed. When customers were polled on their overall feeling of the Sephora brand, nearly all customers replied that Sephora is modern, innovative, fun, knowledgeable, professional, friendly, and trend-setting. These positive attributes echo what Dominique Mondonnaud set out to do from the beginning when he opened his first Shop 8 store. Building upon Mondonnaudʼs unique views, LVHM was able to further his vision and create the beauty empire Sephora is today. Without the ownership and support from LVHM, Sephora might not be the
recognized leader in the industry today. Since Sephora is owned and operated out of France, which is the fashion capital of the world, and LVHM is owned and operated out of France, the Sephora brand is automatically granted a certain level of credibility in the beauty industry. Additionally, its credibility also stems from the knowledgeable sales associates and make-up artists who have undergone Sephoraʼs extensive proprietary training program called the “Science of Sephora.” This program was developed by
Nikki Kerber • PBDS 705
1. Assuming she receives the additional funding, how should Bornstein allocate her budget across the various digital categories? Given that the additional funding requested must be shifted from Sephora’s other marketing spending, where would you propose to cut? Why?
Many great fashion designers have entered the market of fragrance (Chanel, Lanvin, Givenchy, Yves Saint‐Laurent, Balenciaga …). After that, the speakers of the cosmetic market launched their own perfumes (Yves Saint Laurent, Estee Lauder) and finally, the family brands made their entry on the market (L’Oreal, Procter & Gamble, Unilever…). These
Based on the uniqueness perceived by the customer and expansive opportunity inferred from the SWOT analysis (see Appendix B), Myer has employed a differentiation strategy which seeks to satisfy all customers groups in the market with a full line of non-food products. From standing by this strategy, Myer carries more than 60,000 product lines and approximately 2400 domestic and international brands across its 11 core product categories including women’s swear, menswear, youth fashion, children’s wear, intimate apparel; beauty, fragrance and so on. In addition, Myer has established a special brand hierarchy which covers a broad range from entry level to luxury price points, with a focus on modern and fashionable products. Hence, Myer believes its width of products and brands at a range of price points differentiate the company from other special department retail stores, and the depth of the product knowledge is a key competitive advantage over the discount department stores.
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.
Any person who is absent will receive a mark of zero for this assessment and
On the other hand, Ulta Beauty have four teams to establishing marketing strategies in the store:
This report evaluates and analyzes the potential investment toward Ulta Beauty. To determine if Ulta is the right fit, I have reviewed their financial statement, analyzed researched articles, and compared it to their competitors. Based on the research, Ulta Beauty has exhibit three main strategies that will determine if Tech Shield should or should not invest in. The three strategies consist of the following:
Los Angeles-based perfumer Lisa Hoffman embraces every facet of life into her creative process, from the everyday to the adventurous. With a rich background in fragrance—including education in Grasse, France with the world's most esteemed perfumers—she has seamlessly assimilated traditional fine fragrance into the lifestyle of the contemporary woman to create a brand that's unique and wearable. Each scent in Lisa’s diverse fragrance line has been crafted to capture the essence of her favorite destinations from around the world to effortlessly transport women to places filled with beauty and tranquility.
Michael Miller’s book, The Bon Marché: Bourgeois Culture and the Department Store, 1869-1920, is an expansive and interesting look back on a era of Parisian history that is best represented by its then-current trend and social innovation, the department store. The book gives a fascinating account of the store from its beginning to eventual common place status in 1914. The book gives an insight on the factors in which the store saw success, such as the management, the labor, and new marketing. It also gives light to the social factors that made the store possible (i.e education and economy).
When an unfavorable issue occurs, a good PR representative is especially important to have on board representing the company (Kim, Sung, 2016). Public relations dates back to the early 20th century and early on emphasized the engagement of press and publicity, while more recently has transitioned to more modern concepts such as engagement and relationship building (PRSA, n.d.). Ulta Beauty is a cosmetics retail store that has more recently taken the reins on their PR by working to create a noticeable, meaningful and thoughtful relationship with the public.
I have worked for Ulta Beauty for about two years now, and during my employment with the company I have noticed a few areas they could improve on. I work as a cashier and retail sales associate and I often encounter customers who are from other countries. These customers often inform me that they do not have any store similar to Ulta where they live. Currently, Ulta has over 1000 retail stores, however they are only within the United States. Unlike their competitor, Sephora, Ulta has yet to expand their retail locations outside of the U.S. It was just this past year that Ulta finally started to offer shipping to Canada. It is because of these reasons, I feel that Ulta Beauty would benefit from implementing a globalization strategy.
Born in an era where women aren’t so rampant on running their own business, Elizabeth Arden rose successfully that she eventually became not only one of the most triumphant business woman but an icon as well. The favorable feat of her company that rooted from about 100 years ago has continued to prosper making the name ‘Elizabeth Arden’ not only some person’s name but a trusted and believed brand in the field of women’s necessity line.
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
I consider Sephora as a platform. They have become more than a product now because they have hundreds of brands and thousands of different products, the variety is considerably large. Other reason is, their affectivity on social media and also their websites; the beauty talk policy in their website has become a platform that brings people together and it is really like a huge forum.
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.