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  1. 1. Sephora Vs. Ulta Hana Kim
  2. 2. Sephora • Founded in France by Dominique Mandonnaud in 1993. • Leading cosmetic/ fragrance in France and in 13 other countries. • Over 500 locations in the U.S. The majority are in metropolitan cities and in JC Penny. • They carry brands of prestige makeup and have their own private label.
  3. 3. Ulta • Founded in 1990 by Terry Hanson and Dick George. • Found in 40 States and approximately 400 locations in the U.S. Usually located in more suburban cities. • Not only carries prestige make-up but mass product brands as well as their own private label.
  4. 4. Brand and Affordability • While Sephora holds more luxury brands, Ulta wins by offering a more price variety from lower priced to high priced. • For $200, you can get more beauty products at Ulta than Sephora. • For most of America, Ulta is more accessible than Sephora. The more variety and availability gives Ulta a greater potential for sales.
  5. 5. Loyalty Programs • Both use cards and reward points. • The only thing, you can roll over your points at Sephora, but not at Ulta. • For Sephora, you earn 1 point ever dollar spent. In return you get free deluxe samples you want. • Ulta has a step level program where you can receive free products with each level reached.
  6. 6. Loyalty Programs • I think that once the Sephora addicts realize that Ulta carries the majority of what Sephora does plus so much more, and also has a salon and makeup artists as well, then they’d be more likely to go to both. And when Ulta customers want a more boutique experience, they’re likely to shop Sephora. However, with the economy as it is today, the wide range of price points at Ulta give it an edge over Sephora’s luxury positioning.
  7. 7. Customer Acceptance (Social Media) • For Facebook: Ulta has 1,199,940 likes with 26,644 people talking about them. Sephora has 5,644,295 with 27,624 people talking about Sephora. • Twitter: Ulta- 193,997 Followers. Sephora-1,252,808 Followers. • However Ulta generates more revenue with 1,776M (2012) and $900M for Sephora.
  8. 8. Positioning • Ulta wants to put all their focus on one-stop shopping. They encourage natural beauty. • With Sephora… they want to position themselves has a boutique, professional shop with highly trained staff. Their origin of France already gives them an air of luxury.
  9. 9. So in conclusion… • Ulta is more affordable and carries more products from low to high prices. • Sephora has more higher priced products but is has more customer acceptability. • Sephora wins for brand consistency/ recognition and their push in social media while Ulta wins in affordability and revenue.