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RETAIL LOCATION STRATEGY
Lauren Haden, Jamaal Camper,Allie Humes & AshleighVan Der Watt
SEPHORA
KEY FACTS
• Upscale beauty retailer
• Founded in France, 1970
• 1,900 stores in 25 countries
• 360 stores in North
America...
CLIENT & LOYALTY
• Ages 18-45
• Predominantly female
Rewards Program
• Beauty Insider
• V.I.B. (Very Important
Beauty Insi...
PRODUCT OFFERING &
PRICING
• Over 250 major brands
• Sephora Collection
- 10% of sales
• Cosmetics $5-$90
• Hair care $5-$...
KEY ISSUES
Competition Within Retail Landscape
• JCPenney’s demise
• Negative brand association
• Macy’s acquisition of Bl...
SWOT ANALYSIS
STRENGTHS
• In-store setup and self service
approach
• Successful online and social media
presence
• Growth ...
SWOT ANALYSIS
WEAKNESSES
• JCPenney: Not the
right brand
message?
• Rewards program
& shopper
incentives
• Pricing strategy
SWOT ANALYSIS
OPPORTUNITIES
• Increase awareness of men’s
product offering
• Harness holiday shoppers through
unique selli...
SWOT ANALYSIS
THREATS
• “Store within a store” trend
no longer innovative
• Online presence posing a
threat to in-store sa...
COURSES OF ACTION
1. Pop-Up Retailing
2. Specialty Boutique Retailing
3. College Retailing
4. Stay the Course?
POP-UP RETAILING
• Temporary retail spaces
• Surprising consumers
• A unique retailing experience
• On college campuses an...
PROS & CONS
Pros:
• Greater brand exposure
• “Guerrilla marketing” tactics
leave lasting impressions on
customers
Cons:
• ...
SPECIALTY BOUTIQUE
RETAILING
• ”Something
new” in a
cluttered beauty
landscape
• Micro-niche
retailing
• Spread concept
to...
PROS & CONS
Pros:
• Reaching new markets
• Segmented clientele creates loyalty
• Unique retailing experience
Cons:
• Costs...
COLLEGE RETAILING
• Increases convenience
for college students
(bookstore and student
center locations)
• Creates brand
aw...
PROS & CONS
Pros:
• Sephora is more
relevant to young
people, especially
college-aged
Cons:
• Clinique monopolizes
that co...
STAYTHE COURSE?
• Leverage social media presence to drive in-store traffic
• Build upon successful online retailing strateg...
PROS & CONS
Pros:
• Can focus on creating more innovative online retailing techniques
• Further develop HR and training pr...
RECOMMENDATION:
COLLEGE RETAILING + POP-UP RETAILING
=
Summer Style College Tour
COLLEGE POP-UP INSPIRATION
UTILIZING STRONG ONLINE
SOCIAL PRESENCE
On-site photo booth
Fans vote on favorite
#SephoraSummer
Instagram contest
“Summer...
BRAND RECOGNITION &
LOYALTY
• Establish campus brand
ambassador role
• Promote and raise awareness
for Summer Style tour
•...
QUESTIONS?
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Sephora Case Study

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Sephora Case Study

  1. 1. RETAIL LOCATION STRATEGY Lauren Haden, Jamaal Camper,Allie Humes & AshleighVan Der Watt SEPHORA
  2. 2. KEY FACTS • Upscale beauty retailer • Founded in France, 1970 • 1,900 stores in 25 countries • 360 stores in North America • 485 JCPenney boutiques
  3. 3. CLIENT & LOYALTY • Ages 18-45 • Predominantly female Rewards Program • Beauty Insider • V.I.B. (Very Important Beauty Insider)
  4. 4. PRODUCT OFFERING & PRICING • Over 250 major brands • Sephora Collection - 10% of sales • Cosmetics $5-$90 • Hair care $5-$85 • Skincare $5-$380 • Overall $1-$675
  5. 5. KEY ISSUES Competition Within Retail Landscape • JCPenney’s demise • Negative brand association • Macy’s acquisition of BlueMercury • Success of ULTA • “Open sell” strategy no longer unique • Competition in customer service “Store in Store” Retail Strategy
  6. 6. SWOT ANALYSIS STRENGTHS • In-store setup and self service approach • Successful online and social media presence • Growth in brand presence
  7. 7. SWOT ANALYSIS WEAKNESSES • JCPenney: Not the right brand message? • Rewards program & shopper incentives • Pricing strategy
  8. 8. SWOT ANALYSIS OPPORTUNITIES • Increase awareness of men’s product offering • Harness holiday shoppers through unique selling experiences (i.e. pop up shops) • Partner with popularYouTube vloggers and makeup bloggers to create free internet buzz • Venture into salon services to compete with ULTA & BlueMercury
  9. 9. SWOT ANALYSIS THREATS • “Store within a store” trend no longer innovative • Online presence posing a threat to in-store sales •The demise of JCPenney
  10. 10. COURSES OF ACTION 1. Pop-Up Retailing 2. Specialty Boutique Retailing 3. College Retailing 4. Stay the Course?
  11. 11. POP-UP RETAILING • Temporary retail spaces • Surprising consumers • A unique retailing experience • On college campuses and in major cities Sephora’s 2012 Pantone Color of the Year Pop-Up Shop:
  12. 12. PROS & CONS Pros: • Greater brand exposure • “Guerrilla marketing” tactics leave lasting impressions on customers Cons: • Wide and varied product offering - tough to narrow down
  13. 13. SPECIALTY BOUTIQUE RETAILING • ”Something new” in a cluttered beauty landscape • Micro-niche retailing • Spread concept to cities, test different markets
  14. 14. PROS & CONS Pros: • Reaching new markets • Segmented clientele creates loyalty • Unique retailing experience Cons: • Costs associated are high • Consistency • Lack of brand connection
  15. 15. COLLEGE RETAILING • Increases convenience for college students (bookstore and student center locations) • Creates brand awareness that will lead to more in-store traffic
  16. 16. PROS & CONS Pros: • Sephora is more relevant to young people, especially college-aged Cons: • Clinique monopolizes that college retail beauty market with its in store makeup counters
  17. 17. STAYTHE COURSE? • Leverage social media presence to drive in-store traffic • Build upon successful online retailing strategies • Continue operations of 300+ standalone stores and 470+ Sephora boutiques
  18. 18. PROS & CONS Pros: • Can focus on creating more innovative online retailing techniques • Further develop HR and training programs to help boost in- store sales. Cons: • JCPenney’s future is uncertain • ULTA’s recent success – Sephora no longer “ahead” • Macy’s acquisition of BlueMercury poses threat • Keeping same retail strategy will not give Sephora an edge
  19. 19. RECOMMENDATION: COLLEGE RETAILING + POP-UP RETAILING = Summer Style College Tour
  20. 20. COLLEGE POP-UP INSPIRATION
  21. 21. UTILIZING STRONG ONLINE SOCIAL PRESENCE On-site photo booth Fans vote on favorite #SephoraSummer Instagram contest “Summer Style” board showcases looks
  22. 22. BRAND RECOGNITION & LOYALTY • Establish campus brand ambassador role • Promote and raise awareness for Summer Style tour • Modeled similarly after Victoria’s Secret PINK campus rep program and pop-up shop tours; Rent the Runway and other ambassador programs
  23. 23. QUESTIONS?

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