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SEPHORA	DIRECT-INVESTING	IN	SOCIAL	MEDIA,	VIDEO	AND	MOBILE
OVERVIEW
Sephora	is	doubling	the	marketing	budget	for	new	digital	
initiatives.	It	needs	to	define	the	optimal	marketing	m...
ABOUTSEPHORA Parent	Company
1969
1998Started	in	
Product	Range
Cosmetics
Fragrances
Hair
Skin Care
SEPHOS + ZIPPORAH
Prett...
KEY
TOUCHPOINTS
Sephora	Stores Sephora.com
Beauty	Insider
Sephora	
inside		JC	
Penney
STORES
Vibrant	stores	that	encourage	trial	and	
experimentation
SEPHORA.COM
BEAUTY INSIDER
SEPHORAINSIDEJCPENNEY
• 1000	stores	in	23	countries
• 288	brands	were	offered,	representing	over	
20,000	products
• Classic	lines	such	as	Cliniq...
COMPETITION
Department	Stores
Single	Brand	Prestige	
Beauty	Stores
Multi-brand	Specialty	
Stores
Large	online	merchants
On...
SEPHORA’S MARKETING PLAN
CUSTOMERRELATIONSHIP MANAGEMENT- BEAUTY INSIDER
80%	sales	from	Beauty	
Insiders
KEY ELEMENTS OF THE 2010 MARKETING MIX
Store	Window	
Merchandising
32 page print catalogs sent to a portion
of Sephora’s b...
KEY ELEMENTS OF THE 2010 MARKETING MIX
Sephora	Direct	Mail	
Pieces	to	Beauty	Insiders
Two	major	sales/Promotions
Free	gift...
KEY ELEMENTS OF THE 2010 MARKETING MIX
ANIMATIONS:	
For	store	windows	
and	Sephora’s	
homepage
KEY ELEMENTS OF THE 2010 MARKETING MIX
Email	Marketing	to	
Beauty	Insiders
Online	Search	
Advertising	and	
Online	display	...
Core	of	Sephora’s	Communication
STORE CONNECT
Sephora.com
Social	
Media
Mobile	app
ALL ABOUT SEPHORA.COM
Encouraged	site	
visitors	to	purchase	
online
• Launched	in	1999	
• 15-20%	of	Sephora	USA	
sales	in	...
• Improving	site	conversion
• Increasing	traffic	from	
online	search	results
• Keeping	clients	for	longer	
durations	on	th...
• By	Late	2009,	the	consumer	
behavior	online	had	shifted,	
with	16%	of	all	online	time	
spent	with	social	media
• Sephora...
• Question	and	answer	forum	with	strong	search	
functionality
• Launched	as	a	Beta	site	in	September	2010
• Reasons	why	th...
BEAUTY
TALK
• Leaderboard- 35 different levels
• Users who posted frequently
had a symbol identifying them
as a “beauty ma...
• Problem	of	Promotion	and	blending	with	the	Facebook	
site
• Additional	work	would	require	more	funding
• Early	usage	of	...
TWITTER
FORAYINGINTO SOCIALMEDIA
#SEPHORA
By	September	2010,	approx.	100,000	users	were	“following”	
Sephora	on	Twitter
Pu...
SEPHORA ON
YOUTUBE
100	videos	that	generated	over	3	
million	views
CONTENT	BUCKETS	FOR	VIDEO
• “How	to”
• Hot	Trends
• Sho...
PLATFORMS &
SERVICES
Shop
Shopping	list
Past	purchases
New	products
Today’s	obsession
Mobile	offers
Store	locator
Videos
R...
BENEFITS
&
COMPLAINTS
A	mobile	app	could	
help	clients	while	
shopping	in	stores
Increase	in-store	
purchases
Some	of	the	...
NEW OPPORTUNITIES
AGGREGATORS COLLABORATIVE
RELATIONSHIP
CROSS	BRANDING
OPPORTUNITIES
THE QUESTION-WAY FORWARD?
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Sephora case study

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A case facts presentation on Sephora Direct (HBR case study)

Published in: Marketing

Sephora case study

  1. 1. SEPHORA DIRECT-INVESTING IN SOCIAL MEDIA, VIDEO AND MOBILE
  2. 2. OVERVIEW Sephora is doubling the marketing budget for new digital initiatives. It needs to define the optimal marketing mix and KPIs
  3. 3. ABOUTSEPHORA Parent Company 1969 1998Started in Product Range Cosmetics Fragrances Hair Skin Care SEPHOS + ZIPPORAH Pretty + Moses’s Beautiful wife Brand Name Origin
  4. 4. KEY TOUCHPOINTS Sephora Stores Sephora.com Beauty Insider Sephora inside JC Penney
  5. 5. STORES Vibrant stores that encourage trial and experimentation
  6. 6. SEPHORA.COM
  7. 7. BEAUTY INSIDER
  8. 8. SEPHORAINSIDEJCPENNEY
  9. 9. • 1000 stores in 23 countries • 288 brands were offered, representing over 20,000 products • Classic lines such as Clinique and Lancome to emerging brands such as Urban Decay and Too Faced (except Chanel and MAC cosmetics) • Pricing was identical to that of departmental stores • Promotions involved offering samples rather than discounting • Private label products in nearly every category • Target market in 2010 was 25-35 year old women many of who “grew up” with the company SEPHORAUSAIN2010
  10. 10. COMPETITION Department Stores Single Brand Prestige Beauty Stores Multi-brand Specialty Stores Large online merchants Online Companies
  11. 11. SEPHORA’S MARKETING PLAN
  12. 12. CUSTOMERRELATIONSHIP MANAGEMENT- BEAUTY INSIDER 80% sales from Beauty Insiders
  13. 13. KEY ELEMENTS OF THE 2010 MARKETING MIX Store Window Merchandising 32 page print catalogs sent to a portion of Sephora’s beauty insiders three times a year Print Ads in Magazines
  14. 14. KEY ELEMENTS OF THE 2010 MARKETING MIX Sephora Direct Mail Pieces to Beauty Insiders Two major sales/Promotions Free gifts for beauty insiders
  15. 15. KEY ELEMENTS OF THE 2010 MARKETING MIX ANIMATIONS: For store windows and Sephora’s homepage
  16. 16. KEY ELEMENTS OF THE 2010 MARKETING MIX Email Marketing to Beauty Insiders Online Search Advertising and Online display advertising
  17. 17. Core of Sephora’s Communication STORE CONNECT Sephora.com Social Media Mobile app
  18. 18. ALL ABOUT SEPHORA.COM Encouraged site visitors to purchase online • Launched in 1999 • 15-20% of Sephora USA sales in 2010. • Benefits- Higher margins, lower overhead costs • Statistics: • 3 million unique visitors to site each month making Sephora one of the top 50 retail sites in the U.S • In 2010, Sephora.com had 310,000 visits each day, 11 page views per visit
  19. 19. • Improving site conversion • Increasing traffic from online search results • Keeping clients for longer durations on the site • Reducing returns • Lowering call center visits • Encouraging repeat visits FORAYINGINTO SOCIALMEDIA RATINGSANDREVIEWS
  20. 20. • By Late 2009, the consumer behavior online had shifted, with 16% of all online time spent with social media • Sephora created a Facebook “fan page” for its clients who wanted to follow Sephora and communicate with the company and each other online FORAYINGINTO SOCIALMEDIA FACEBOOK • Clients used FB to let Sephora know when they were out of products or if they had a bad experience at a store • Served as a forum for Sephora to do consumer research and get client feedback • Contests, sweepstakes, Sephora Claus (Wish list) PURPOSE
  21. 21. • Question and answer forum with strong search functionality • Launched as a Beta site in September 2010 • Reasons why this was launched: • Launched due to a lack of archival capacity on Facebook • A survey conducted in 2009, found that respondents would be very interested in a central place to ask beauty questions • Vision: Safe and Private environment where clients could anonymously ask personal questions and get quick responses from Sephora experts or other members of the Sephora community • “more organized version of Facebook” FORAYINGINTO SOCIALMEDIA BEAUTY TALK
  22. 22. BEAUTY TALK • Leaderboard- 35 different levels • Users who posted frequently had a symbol identifying them as a “beauty master” or “beauty maven” • New users may have a symbol labeling them as a “newcomer” • VIB clients had a VIB symbol next to their names
  23. 23. • Problem of Promotion and blending with the Facebook site • Additional work would require more funding • Early usage of Beauty Talk was not as high as the initial interest in ratings and reviews • More in-depth and less well-understood experience BEAUTY TALK PROBLEMS WITH BEAUTY TALK
  24. 24. TWITTER FORAYINGINTO SOCIALMEDIA #SEPHORA By September 2010, approx. 100,000 users were “following” Sephora on Twitter Purpose: Spread news about promotions, contests, events and other timely information Was used as a communication channel during the Sephora Claus sweepstakes
  25. 25. SEPHORA ON YOUTUBE 100 videos that generated over 3 million views CONTENT BUCKETS FOR VIDEO • “How to” • Hot Trends • Short segments by founders of up and coming cosmetic companies USER GENERATED CONTENT Make Up Tutorials, Recent shopping Hauls from Sephora stores
  26. 26. PLATFORMS & SERVICES Shop Shopping list Past purchases New products Today’s obsession Mobile offers Store locator Videos Ratings & reviews Gift registry Beauty advice Beauty Insider
  27. 27. BENEFITS & COMPLAINTS A mobile app could help clients while shopping in stores Increase in-store purchases Some of the app features were too slow to download Sole Focus on IPhone
  28. 28. NEW OPPORTUNITIES AGGREGATORS COLLABORATIVE RELATIONSHIP CROSS BRANDING OPPORTUNITIES
  29. 29. THE QUESTION-WAY FORWARD?

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