HOW IT ALL BEGAN
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.
PERILS IN WANTING TO ACHIEVE QUICKLY
In any business, attempting to achieve too much in the establishment phase, when setting up your business will lead to unnecessary and unwanted disaster. Mondonnaud is a great example of this as through his hasty motives to expand rapidly throughout France which eventually lead to problems in his operational
Definition: A business strategy in which growth is obtained by increasing the number of stores in which customers can buy a company 's products and services. management which lead to the takeover of LVHM
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
Currently, the business has not ventured in the cosmetic market of London and Canada. Canada and London provide an opportunity for the company to expand its market through its international entry strategy of retailing and B2C framework. The SWOT analysis of the company shows a wide range of strengths and opportunities for the company’s future success such as market gap (London and Canada), Globalization, technology and good customer relation (BBB accreditation). The company demonstrates high capability of sustenance and survival through retailing, personal selling, E-commerce, E-marketing, Fashion Collaboration and other B2B platforms.
Whichever event they have to attend, they like to dress up and invest a lot in their styling which is why cosmetics have become the second fastest developing retail sector in Russia with a growth of about 40% per year according to Passport Magazine Moscow. Taking a look at Russia´s history these outstanding growth numbers even appear to be reasonable. For decades, the Russian women were only able to apply soviet cosmetics and had to improvise a lot by using beets instead of rouge for example. After the collapse of the USSR though, the cosmetics industry exploded since privatization brought choice and variety with it. In 1989 the first cosmetics store “Golden Rose” opened in Moscow and customers had to face long queues for weeks. In the beginning the demand for foreign luxury brands like Chanel was huge, but after the Russian Crisis in 1998 the industry experienced more “consumer aware” customers leading to a come-back of the original Russian brands like Kalina. Since then, the Russian cosmetics market has supplied its customers with international as well as with national products. The promising growth numbers of Russia let us understand why Natura casts an eye on this peculiar market. In conformity with an Ernst & Young survey Russia spends 1.3% of their
This report explores and considers the various factors which impacts lush cosmetic’s product in term of entering the market. There are methods which can be taken with this organisation, were researched; the main focus will be to:
In order for a business or corporation to grow and expand at a calculated pace, they must be able to strategize the proper business plan to get there. A strategy is a set of analytic techniques for understanding and influencing the firm 's position in the marketplace (Raimundo, 2001). Having a business
This report is on LUSH cosmetics – a sustainable brand in cosmetic industry. This report will
Cacharel fragrance brand was acquired by the L’Oreal group in 1975 (Insead, 2007). L’Oreal is known as a house of diverse corporate and umbrella brands, namely just a few: L’Oreal Paris, Lancome, Cacharel, Giogio Armani, Ralph Lauren and many others. Each of these umbrella brands has below it numerous products brands and line brands. They constitute so-called a multi-brand matrix (Marketing Mastermind, 2008). Cacharel umbrella brand belongs to the Luxury Products Division, one of three divisions of the L’Oreal group, which offers up-market premium products to consumers. Every umbrella brand has established distinct identity, image to focus on different target market, in turn; the Cacharel umbrella itself is perceived as an encompassing combination of prestige, femininity, charm and romanticism. (Kepferer, chapter 11, p292). As a result, Anais Anais was the most responsible for creating Cacharel’s identity by its extraordinary succeed. In the shoes of Katsachnias, we have been encoding the Cacharel brand identity in some extends, whether it helps to revitalize the brand at its crisis? We continuously perceive this insight in the next question.
The Beauty of Two Worlds When you’re a fan of cosmetics, anything about it excites you. In the world of beauty, there exists many different cosmetics brands. Many people have different thoughts about the different brands of makeup available. There are two stores in particular that have captured much of the public’s attention in the recent years. Sephora and MAC are two different stores that carry cosmetic products.
2. What are the advantages and disadvantages of selling cosmetic products through door-to-door selling, specialty stores, department store counters, and supermarket and hypermarket? How will the use of these channels vary with target market segments and brand strategies?
Makeup Art Cosmetics (MAC) was founded in 1985 in Toronto by Frank Toskan and the late Frank Angelo. The business plan concentrated on targeting young, fashionable females by creating cosmetic products which contain unique textures and colours. Using this strategy, the company targeted the ¡°hip¡± celebrities and other cosmetic influencers to gain recognition and market share in the younger consumer market. Since its inception, the company has grown to become a multi-national organization operating in over 180 locations worldwide. In the late 1990¡¯s, MAC was purchased by Estee Lauder, which has led to the alteration of the company¡¯s governance; the culture of the firm changed from that of an entrepreneurial-style with limited rules into
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.
Young girls are more concerned about acnes and blackheads while mature women are looking for anti-aging and anti-wrinkle products. Genders do affect the choice of skin care products. In the past, skin care products only belong to the girls’ world. Nevertheless, in recent years, men are increasingly becoming more and more concerned about skin care. With a view to this latest trend, various brands have started developing men’s line. Income level directly affects the purchasing power of customers. Skin care products take up a wide range of price levels from far less than a hundred dollars to more than a thousand. Young girls who do not have any income cannot afford the expensive skin care products while mature women with higher purchasing power focus more on quality and effectiveness. Occupations also determine the need for skin care products. Models and artists generally have a higher consciousness on skin care than people with less exposure to the public.
Burberry, founded in 1856, is a leading international luxury brand. Burberry designs, manufactures and licenses apparel and accessories for distribution through its own stores and network of prestige retailers worldwide. In early 1998, the new management team at Burberry set out its strategy to reposition and revitalise the brand, which resulted in significantly improved results and strengthened the base to build the business. With continuous growth since last five years, Burberry has faced new challenges of brand sustainability and positioning in a volatile industry (fashion) where customer behaviour is unpredictable. Thus, it requires a strategy that lays foundations for long-term growth and addresses the issues
Based on the SWOT analysis provided in the case, what are the two or three factors that Mistine should stress in its strategic planning as it looks to continue its growth and dominance in the Thai market? How can Mistine match its strengths with its market opportunities to create competitive advantage moving forward?