Essay about Sephora Final

Decent Essays
Sephora Direct

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?

According to 2010 data, 45% of Sephora's media spending is in retail marketing that includes catalogs, store animations and print followed by 35% in Online marketing that includes search, affiliate and social media and 20% in Beauty Insider marketing that includes mails, gifts and events. The major chunk of media spending goes to traditional retail spending which in my view needs to be cut down. The reason for cutting catalog and print costs is that each day
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2010 marketing mix was
- Print catalogs
- Direct mail/ Ads
- Emails
- Store window merchandizing
- Online search advertising
- Sales/promotions
- Online display advertising

Beauty talk was launched in September 2010. As more and more people started shopping online, beauty talk became important. I feel that it was wise to create Beauty Talk as a separate social platform to facebook because it connected the company with its beauty insiders, future customers and its clients. It became a central place where clients could anonymously ask personal questions and get quick response from Sephora experts or other members of the Sephora community. Also with beauty talk, Sephora could recognize its 'Superusers' - people who answered a lot of questions voluntarily. It was built with strong search functionality. It also helped Sephora to save and query responses. People could ask potentially embarrassing questions which would not be possible to be asked on facebook as the real identity of the member would be revealed. Viewers could also search previously posted questions and answers. But it did not get the required response as people found it to be more in-depth and less well-understood experience.

3. As Sephora increasingly dabbles with digital marketing and social media, which competitors should the company be most worried about?

Sephora's competitors include:
a. Departmental stores: Macy's and
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