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Free marketing plan sample of a French cosmetic retailer developing a new service, Sephora (LVMH), by


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A plan of a cosmetic retailer, Sephora France (LVMH group) - a new service

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  • 1. Sephora Body Care Centers Marketing Plan 2011
  • 2. Table of Contents• Part One : STRATEGIC PLANNING 1. Analysis of the Current Situation 2. Achievable Marketing Objectives• Part Two : ACTION PLAN 3. Yearly Action Plan & Marketing Budget 4. Control Procedures & Criteria of Success
  • 3. Profile of the Company• TYPE : Division of Holding Company LVMH• INDUSTRY : Consumer Goods• FOUNDATION : 1969 by Deeba Abrishamchi• HEADQUARTERS : Paris, France• PRODUCTS : Cosmetics & Beauty• PARENT : LVMH – Louis Vuitton Moët Hennessy S.A.• WEBSITE :
  • 4. 1.1. Macro environmental analysis• Political Environment legislation for the health of the nation and the quality of products and services• Social Environment Changes in social trend, lifestyle; the population has been ageing and demand for cosmetic products and services has increased, norms and values: to be beautiful; 1
  • 5. 1.2. Market Analysis Substitutes  See  Natural products,  Cosmetics and fragrances sold in retail stores Appendice 1.2 Barriers of entry  Image of a brand internationally known,  Organization and logistics,  Width of ranges,  Marketing force of the existing companies Bargaining power of suppliers  Suppliers need Sephora to sell their products and touch the target market they aim at, they have to sell at the same price everywhere Bargaining power of customer  The customer has a stronger bargaining power than the suppliers, since they can decide to buy what they need at the competitor„s 2
  • 6. 1.3. Direct and indirect competitive analysis  INDIRECT COMPETITION  Qualitative competitors: Drugstores, supermarkets, Reserve Naturelle  DIRECT COMPETITION  Marionnaud, Nocibé, Douglas, Yves Rocher  For more details, see Appendice 1.3 1.4. Market Segmentation First, Sephora‟s target is women between 18 to 60 years old,belonging to a middle class (monthly wage from around 1200€ to2200€) or upper middle classes (2200€ to 3200€). Sephora‟s second target is men between 20 and 55 years old,belonging to both classes. 3
  • 7. 1.5 Marketing Mix• Our actual marketing-mix is composed of:  30% of the offer mix: Sephora proposes a complete range of products  35% of brands: products sold at Sephora belong to famous and well known brands  15% of service quality: salespersons follow customers in their choice  15% of physical attributes: good product quality  5% price: prices fixed by beauty stores are quite the same• Our actual promotion-mix is composed of:  60% of Direct Marketing  30% of Advertising  10% of Public Relations For More Details, see Appendice 1.5 4
  • 8. 1.6 SWOT• Sephora is located downtown Troyes where there are a lot of competitors .• New trends on the market, but competition seeks for the same goals. For more details, see Appendice 1.6 5
  • 9. 1.7 Positioning• USP: - Diversification of products - Own brand products - Customer services quality - Store presentation - Packaging -Atmosphere• Sephora’s main competitors: Marionnaud, Nocibé, Douglas• Sephora‟s best perceptual map is the one including the diversification of the products and the own brand products. This means that Sephora is the leader on those two points. Fore more details, see Appendices 1.7 6
  • 10. 1.8 Sources of Information• QUESTIONNAIRE• See appendice « Questionnaire »• COMPANY’S WEBSITE•• WEB••• 7
  • 11. 2.1 Marketing Strategy• Next year, Sephora is going to launch the project of a body care center in Troyes. The Spa will provide massaging and waxing services. 2.2 Desired Marketing Segmentation• The first market is women living in Troyes and the suburbs, between 18 and 45 years old, and who belong to the middle class or the upper middle class.• The second market chosen for the new service is men living in Troyes and its suburbs, aged between 20 and 45, belonging to the upper middle class. 8
  • 12. 2.3 Desired Marketing-Mix• Next year, we will improve both price and quality of service of 5%.• We will put all our efforts on public relations to improve it of 10%, organizing an opening event and others.  For more details, see Appendices 2.3 2.4 Marketing Objectives - SWOT•The Beauty market is influenced by new trends and Sephora canoffer such treatments. For that, it may:  Attract costumers of main competitor Yves Rocher.  Set up a “satisfied or refunded” policy to reassure clients.• If this project doesn‟t work, it might be hard on Sephora‟s finances.  For more details, see Appendice 2.4 9
  • 13. 2.5 Positioning• The best situation for Sephora is the one mixing «own brand products» USP and « diversification of products » USP. Next year, we will improve both of them. To do this, we have to invest money on developing Sephora‟s own brand products. For more details, see Appendice 2.5 2.6 Yearly Sales Forecast• Combining the two kinds of services proposed, we evaluate theyearly sales forecast at 435 240€. To reach this result, Sephorawould have to fill every single day, with appointments. For more details, see Appendice 2.6 10
  • 14. 3.1 Main Cooperative Bodies (1+1 > 2)• We have decided to cooperate with Yves Rocher : – Shops in the same area – Sephora transports a luxury image (famous brands) – Yves Rocher has a family and biological spirit.• Combine our strategies to attract new costumers – New model that Yves Rocher will support through its experience in natural products. – We will increase their revenues by offering their natural products – Cooperation will be detailed on Sephora‟s Homepage. 11
  • 15. 3.2 Retaining Marketing Activities• Sephora should continue : – Selling its own brand of makeup and body care lines, to keep its advantage on competitors – Focusing on seasonal promotion (Christmas, Mother‟s Day…) – Giving samples to customers – Its advertising campaigns (through website, posters…) 3.3 Developing New Offer• We could start the project by : • offering massages and waxing • building 2 rooms for treatments • keeping the same schedule as for the shop (10 a.m. to 7 p.m.) • hiring professionals beauty therapists (and train beauty counselors at the shop if we break even) • middle range price (40 € for a 30 min. massage) • promote through posters, website, newsletters 12
  • 16. 3.4 Marketing Promotion (7 P‟s)– Free gifts– Point of sales materials– Information points– Loyalty cards– Word of mouth– Magazines / Newspapers– Social Networks– E-mail– Special Offers & Competitions  For more details, see Appendice 3.4 13
  • 17. 3.5 Enhancing Service Marketing Principles (3 P‟s)• Employees: Sephora could first hire professionals to come to the Spa and perform the massaging according to the registered appointments. When services are developed, Sephora could use trained employees. They should however wear the Sephora uniform.• Location: The Spa could take place in two rooms, at the back of the actual store. One room for massaging and another for waxing. 3.6 GANTT Scheme  See Appendice 3.6 3.7 Marketing Yearly Budget  See Appendice 3.7 14
  • 18. 4.1 Control Bodies• Meetings between Marketing Manager and regional managers every 3 months, regarding marketing action plans. 4.2 Control Tools1. Surveys would be conducted to study the level of customer satisfaction. It can be oral or by filling questionaires in the stores.2. Sales promotion activities3. Store managers have to submit monthly reports to the regional manager . 4.3 Control by Milestones Special offers in weekends. Launching of new products in weekends. 15
  • 20. Appendix 1.2 • Barriers Estimated to of entry 0,3 Bargainin Bargaining g power •power of the of Estimated to 0,2 customer suppliers • Estimated to 0,4 Substitutes • Estimated to 0,1
  • 21. Appendix 1.3 Critical Success Marrionaud’s Nocibé’sFactors of Sephora Diversification of Less salespersons, Warm atmosphere, products, + own freedom of the colors production customer Quick payment, notCustomer Service + More samples given much time to wait at samples the cash register Products/store Advantages with Quality of products presentation membership Product packaging Slightly lower price Bio products Products sometimesAtmosphere/ smell less expensive
  • 22. Appendix 1.5Quality of services Offer 15 % Mix Brands Physical 30 %attributes 35 % 15 % Price 5% ADVERTISING DIRECT MARKETING 30 % 60 % PUBLIC RELATIONS 10 %
  • 23. Appendix 1.6 • Shop situated in Downtown Troyes Strenght • Eye catching decoration and lighting • Products in self service • Once there were two Sephora shops in Troyes – the other one had a high clientele that sought for Weakness advice. • Since it closed, the high clientele goes to Marionnaud • New trends : men, organic, black skin tonesOpportunity • People spend a lot into cosmetics (250 € / year / person) • Very hard concurrence (Marionnaud, Nocibé, Threat Douglas), similar products and pricing • Numerous regulations (Environment and Health)
  • 24. Appendix 1.7 Atmosphere Customer Service quality D S S D Packaging Store N Presentation M M N Douglas Nocibé Marionnaud Sephora
  • 25. Appendix 1.7 Own Brand Products S D N This perceptual map is the best for Sephora. Diversification of products MDouglas Nocibé Marionnaud Sephora
  • 26. Appendice 2.3 Quality of +5% services Offer Adaptation 15 % Brands Mix of the Physical 30 % marketing attributes 35 % mix 15 % Price +5% 5% Quality of Offer Brands services MixNew 20 % 25 % 30 %marketing-mix Physical Price attributes 10 % 15 %
  • 28. Appendix 2.4 STRENGHT WEAKNESS O into S: Nowadays beauty care W into O: Sephora has is influenced by new trends (men, never provided such pregnant women, organic services before and could treatments). Sephora could offer be considered as novice.OPPORTUNITY such treatments to its potential Maybe it would reassure clients (massage with only organic its clients if Sephora put in products). a « satisfy or your money back » policy. T into S: Yves Rocher is a W into T: As said before, recognized Beauty Center in Sephora is new on the Troyes and main concurrent of Beauty Care Centers Sephora. If we have an market and if it is not THREAT appropriate eye-catching efficient and enough decoration and people pass by the competitive, it could go Shop going to Yves Rocher across bankrupt. the street, we could attract more customers. Group ESC Troyes 30
  • 29. Appendix 2.5 Own Brand Products Next year we will move from to D N Diversification of Products M
  • 30. Appendix 2.6• Massage • 30 minutes: 40€ • 2 massages per hour, opened from 10am to 7pm • 18 massages per days: 720€ per day. 540x6=4 320 per week • 3240x52= 224 640 € per year• Waxing • Face 20 minutes: 15 € : 405€ per day : 2 430€ per week 126 360€ per year • Legs 30 minutes: 30 € : 540€ per day: 3 240€ per week 168 480€ per year • Bikini 15 minutes: 30 € : 1080€ per day : 6 480€ per week 336 960€ per year  It is impossible to perform several waxing services at the same time. The yearly sales forecast is thus impossible to plan in a exact way. Actually, we can forecast an average result of 210 600 € per year.• Total Yearly sales Forecast: 224 640 + 210 600 = 435 240 €
  • 31. Appendix 3.4• Free gifts – a free 15 minutes-face-massage when contracting more than 2 another services• Point of sales materials – posters, displaying stands in the store – present the product/service to the customer• Info points – we will present our new service with experts and trained staff so that customers can get information• Loyalty cards – a customer fills up a card and is rewarded with a free treatment.• Word of mouth - the best form of advertising because 70% of consumers trust peer recommendations and only 18% trust advertisements. Flyers distribution to get recommendations – to get a positive effect on the business. Encourage people to talk about us.• Magazines / Newspapers – they are effective - magazine advertising would be better value for money. Younger people of our market – through magazines. AIM : raise our sales by 10 % within 6 months. “Lower television advertising in exchange for magazine advertising and to keep within the same budget, whilst increasing exposure”• Social networks – are one of the best opportunities on the Internet - Facebook users provide information such as their age, gender, location and interests. Target our ads directly to the demographic we want to reach.• E-mail - we will also use our email marketing list – people who have expressed interest in knowing when we offer new services. We have segmented our email list so that we can send appropriate emails to media and our customers.• Special Offers & Competitions we offer our customers free « beauty tips » after the massage therapy to attract their attention - this special offer can convince unsure customers to make a purchase.
  • 32. Appendix 3.6 When ? How What ? Who ? Comment much ? Start Finish A week Assistant of Sales Mothers‟ after manager in See 3.4Promotion day father‟s collaboration day with head office 3 weeks A week before after Marketing teamAdvertising starting fathers‟ of head office See 3.4 date day 3 weeks A week Public before after Marketing team See 3.4 Relations starting fathers‟ of head office date day
  • 33. Appendix 3.7 Resources in % Expenses in %Loan 70 Promotion: 25 Free gifts1+1>2 5 Point of sales materials Info points 30 Loyality cardsEquity 20 Advertising: Word of mouthInterest Income 5 Magazins / Newspapers 15 Facebook E-mail 15 Special Offers 15 Marketing Research: Analyst fees Publich Relations: PR campaign support Non allocatd funds:Total budget € 100,000 100,000
  • 34. Questionnaire (Translated to English)1. What is your role within Sephora-Troyes?2. What do you think about adding a body-care service in the store?3. Do you think it would suit the company‟s vision?4. Why could it be an advantage for the shop?5. How could the company promote this new line of services?6. According to you, how could Sephora compete with companis like Yves Rocher, already providing waxing and massaging?7. How much do you think customers would be ready to pay for a 30-minutes- massage?8. Would you be ready to receive a professional training to perform massaging and/or waxing?9. How long have you been working in Sephora-Troyes?10. Could Sephora develop and add a line of massaging products ot its own brand products ?