Essay on Ulta Beauty: the Journey and Investment

Macy’s enjoys economies of scale giving them purchasing power with their suppliers and the ability to reduce operating costs by spreading fixed costs over a larger base; due to this process Macy’s buys in bulk which locks in larger discounts they can pass on to the consumer creating a win/win situation. This purchasing power allows them to control a larger section of the market and protects them from smaller retailers purchasing the same product. Macy’s sales equal $27.82B with a gross profit of $11.21B. Most analysts recommended buying Macy’s stock last month with 6 analysts predicting a strong performance. Dillard’s revenue is $6.69B and J.C. Penny Corporation revenue is reported at $12.98B for the same time period. (Macy’s (M), 2014). Macy’s, Inc. is currently trading at $57.11 (Macy’s (M), 2014) with a 52-week high of

Ulta gathers data turns that into useful information to take on as learning experiences. Through this, they share what does and does not work with the company to create a stronger and more efficient company and strategy.Ulta acts fast in getting the latest products and trends.The company has a strong and wide range of networks. The company tries to provide quality service by helping customers and providing input. Though, they could use some help in this department. The brand delivers informative and useful content.Ulta is either is somewhere in between stage 4 and 5. The company is beginning to collaborate with brands and has yet to really co-create with

I chose ULTA because it is the nation’s largest beauty retailer. By carrying over 20,000 products, from top of the line to drugstores brands, therefore, it is accessible to a variety of people’s incomes. Stated in “Zacks Equity Research”, ULTA has put up a historical EPS growth rate of 38.69%, investors should really focus on the projected growth. Here, ULTA is looking to grow at a rate of 16.10%, thoroughly crushing the industry average which calls for EPS growth of just 10.91% in comparison. Additionally, ULTA is 3x larger than its closest competitor, Sally Beauty Holdings, Inc. Furthermore, the demand for beauty product continues to thrive even in these slow-growth environments. In other words, consumers will cut back on big ticket items but allow themselves to satisfy their hard earned money on products that provide style and appeasement, which is what ULTA provides.

chemicals and start flushing them out of our system”. (Source B). One of these, are a chemical

Ann Taylor’s target market primarily comprises of ages between 30 years and 60 years to whom, the company offers a plethora of work related apparel and accessories. LOFT’s target market comprises of 18 to 34 year olds who have a wide variety of casual work related (can be used for other purposes) apparel and accessories. Although the two divisions cater to different target markets, their primary purpose is to provide to the ‘working customer.’ Ann Taylor’s expansion into value based divisions (LOFT and its clearance centers) has captured the value market. The pricing at LOFT is about 30% lower than its sister concept, Ann Taylor. The outlets too, have captured the market that comprises of consumers seeking deeper value over traditional pricing and stores. The corporation added more value to these “clearance centers,” by creating private labels for the outlet centers. All the three divisions have proven to be a success among consumers. A third strength of the company would be its marketing strategies through celebrity associations. Some of the biggest celebrities like Heidi Klum, Milla Jovovich, Rachel Bilson are the faces of the company. The brand equity of the company, i.e. the image of the company in the minds of the consumers is enhanced because of positive perceptions. To further enhance this, the company is specifically targeting different markets by using different celebrities for each type of market. For example: Christina Hendricks, known for her curves is a

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:

Lisa’s Nail and Beauty Boutique believe that it’s our guests individual differences that make them unique. We aim to exceed your expectations whilst giving you exceptional service for a fair price. Whether you’re a highly driven professional, super parent or an academic all-star, come experience a family atmosphere where you arrive as a guest and leave as a friend.

When Ulta first started off, they promoted their products through different channels of printed promotion like magazines and direct mail catalogs to TV commercials and being on the radio. Just recently in around 2016, Ulta started to shift their focus to being more digital. This shift in promotion direction caused a dramatic increase in their e-commerce sales. Since then, Ulta has been investing in their digital marketing to make their websites more engaging to the customers. Ulta also promotes themselves through their loyalty program, which ha 24.5 active members to market their brand. They are promoting their brand through their rewards card by expanding their rewards cards into co-branded or private-label credit cards. They believe this

ULTA Beauty utilizes comprehensive marketing strategy to increase brand awareness, attract current and new customers to their retail stores and website, increase customer loyalty, and increase shopping frequency. The company uses a broad advertising approach to attract customers through a variety of tactics. These tactics include mass direct mail, digital communication through e-mail, in-store events, and rewards programs (Piaget, 2013). The company’s primary form of marketing is through direct mail of their catalogs. Catalogs are mass mailed to local households and highlight the variety of products offered in stores and online. The company also hosts in-store events and grand openings as a way of increasing foot traffic (Annual Report, 2015).

The fashion industry is one of the most competitive industries in the world: sought after products and coveted brand-name garments can be “in” one season and just as quickly “out” the next. It is one of the most difficult industries for a new brand to successfully penetrate, as the top tier of respected and recognized designers have built their brand equity through many seasons of impeccable looks and styles that consumers have come to demand. Tory Burch LLC, however, made the feat seem easy in 2004 when the start-up brand stormed the women’s ready-to-wear apparel scene and introduced their luxurious, yet affordable, line of clothing. Selling out its first shipment in a matter of weeks, Tory Burch LLC set the tone for

The company’s strengths include strong brand identity, properly established within the United States, well known celebrity endorsers, iconic style that is tailored for the modern corporate woman, and it promotes confidence and style among customers. Ann Taylor’s major weaknesses are related to the fixed image of its brand in people’s minds that would be difficult to change, and solely focuses on the classic American style, a problem that may be tricky for the international market. The company’s opportunities include the ability of its brand to branch out to other countries like the United Kingdom. Ann Taylor can also increase market range for its products and introduce some lower priced items that will attract new customers. The main threat of Ann Taylor is a highly competitive specialty market that may affect its sales suppose it tries to expand to other countries. Currently, Ann Taylor lacks strategic control and can take advantage of its strengths and opportunities to improve on its areas of weakness and fight

Most people think of Estee Lauder as just a brand, but she is also a successful businesswoman. She went from dirt poor to the richest self made women in the world. (“Estee Lauder” bio) Estee Lauder was important to the growth of the cosmetics realm and has revolutionized and shaped the cosmetics industry not only with her progression from a small town girl to a cosmetic titan, but also with her hopes to give the gift of beauty, simplicity, and cost efficiency simultaneously. Josephine Esther Mentzer was born July 1, 1908 in Queens, New York to two european immigrants, Rose Schotz Rosenthal Mentzer and Max Mentzer.(Israel 8, “Estee Lauder” bio)

Analysts concur that “Global distribution and a large retail store base allow Luxottica to keep competitors at a disadvantage, as any new entrant would have to consider using some of Luxottica’s retail network if it were to reach the scale needed to compete” (Swinand, 2014, p. 2). Hefty revenues give the company extensive leverage to produce competitively priced products, and to open well-placed retail locations which do more than simply compete with smaller companies or stores. As a result, competitors sometimes have no choice but to merge, as Oakley did early in the last decade. “…when competitors get too large, Luxottica can simply cut them out of their popular distribution channels” (Goodman, 2014, p. 2). In this way, Luxottica has utilized its growing size and revenues to maintain and expand its market

While in the European market, Victoria’s Secret faces a fierce competition especially in the French lingerie market given that Etam has already occupied a large market share. And Darjeeling is regarded as the potential competitor of Victoria’s Secret. But Victoria’s Secret is strong enough to compete with all these brands.

Sephora is a worldwide cosmetic phenomenon that reflects its definition in the Greek language; 'beautiful '. The business was established in France 1984 by Dominique Mondonnaud. Sephora 's founder struggled financially in the establishment phase of the business with the over enthusiasm to expand in new regions of France, which lead to the retirement of Mondonnaud on his 50th birthday, 27 years passed and the business was taken over by Louis Vuitton and Moet Hennessy (LVMH). It was then when Sephora began its journey to expand globally dealing with the daily accessories, skincare, hair care, makeup and well know products which appeal to customers from the age of 16-70, either male and female. This has lead to Sephora becoming recognised as a global brand and a contender in the cosmetic world race. This paper will critically analyse and evaluate the operational strategies which allow Sephora to attain its success.