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Sephora case study
Sephora is doubling its marketing budget for new digital initiatives like social media, video, and mobile. It currently uses various touchpoints like stores, its website, Beauty Insider loyalty program, and shops within JCPenney. In 2010, its key marketing mix elements included print ads, direct mail, promotions, animations, email, search/display ads, and social media like Facebook, Beauty Talk, Twitter, and YouTube. It launched a mobile app but it had slow download issues and only supported iPhone. Sephora is exploring new opportunities like aggregators, collaborative relationships, and cross-branding as it seeks to define the optimal marketing mix and KPIs going forward.
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Sephora case study
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- 3. ABOUTSEPHORA Parent Company 1969 1998Started in Product Range Cosmetics Fragrances Hair Skin Care SEPHOS+ ZIPPORAH Pretty + Moses’s Beautiful wife Brand Name Origin
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- 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
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- 12. CUSTOMERRELATIONSHIP MANAGEMENT- BEAUTYINSIDER 80% sales from Beauty Insiders
- 13. KEY ELEMENTS OFTHE 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. KEY ELEMENTS OFTHE 2010 MARKETING MIX Sephora Direct Mail Pieces to Beauty Insiders Two major sales/Promotions Free gifts for beauty insiders
- 15. KEY ELEMENTS OFTHE 2010 MARKETING MIX ANIMATIONS: For store windows and Sephora’s homepage
- 16. KEY ELEMENTS OFTHE 2010 MARKETING MIX Email Marketing to Beauty Insiders Online Search Advertising and Online display advertising
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- 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. • 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. • 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 FORAYINGINTOSOCIALMEDIA 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. • 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. BEAUTY TALK • Leaderboard- 35different 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. • 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
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- 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
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