Sephora Direct Case Study Summary

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Case Analysis Sephora Direct: Investing in Social Media, Video, and Mobile 1. Propose fund allocation for digital marketing using funds from traditional marketing spend. Include both proposed spend and recommended cuts. Justify. Analyzing the data of 2010, (Exhibit 5), we can see that 45% of the resources are spent by Sephora in the retail marketing, such as catalogs, store animations, and print followed. 35% is spent in online marketing that includes searching, affiliate and social media, and the final 20% in the beauty market, like emails, gifts, and events. The major part of media is used for traditional retail spending which needs to be cut down, due to the increase in the number of people who use digital media today. Also, through the development of technology, the people who use the traditional pieces of media, like newspapers, catalogs, and magazines, is decreased. However, the number of people who use Smartphones or tablets to read has increased. For this reason, I think it’s important to reduce the number of points because the majority of Sephora customers is composed of women between 25 and 35 years old, who prefer digital media rather than print media. Furthermore, the catalog still represents a good image for the brand, therefore I think the correct way is not to eliminate it all together. Possible solution about the Funding Allocation: Mobile – 35% Beauty Talk – 20% YouTube – 20% Twitter – 10% Facebook – 10% Video contests – 5% Mobile – 35% ($350,000) –

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