The document provides an overview of a research project conducted for Sephora. It includes an agenda, background on Sephora and the beauty industry, a SWOT analysis of Sephora, research objectives and methods, and key findings. Research methods included in-store observation of customer-employee interactions, brief employee inquiries, and an online survey. Findings showed that most interactions were initiated by employees and led to purchases. The survey found that while Sephora had higher quality products, most consumers preferred competitors for location and customer service. Recommendations included increasing promotions of Sephora brands, blind product testing, adding greeters, and exploring new locations like airports.

1. Megan Cornelius, Blerta Imeri, Alex Myers, Hannah Tillson, and Din Tran

2. ❖ Opportunities &
Recommendations
❖ Questions
Agenda
❖ About Sephora
❖ Beauty Industry
❖ Sephora’s
Competitors
❖ SWOT Analysis
❖ Research
Objectives &
Goals
❖ Research Methods
❖ Findings

3. About Sephora
❖ Sephora is a beauty-retail company
founded in 1998
❖ There are over 2,000 stores in 29
different countries
❖ Sephora is also located inside of
JCPenney stores
❖ Offers a wide variety of products
➢ Makeup
➢ Skincare
➢ Fragrances
➢ Haircare
➢ Tools
❖ Unique customer service and
technology

4. Beauty Industry
❖ Beauty Industry has a wide range
of products
➢ haircare, fragrance, makeup, etc.
❖ Continuous Innovation and product
introduction due to fast paced
market
❖ Industry is moving toward natural
and organic products
➢ Limited animal testing
➢ Health, and environment concerns

5. Sephora’s Competitors
❖ Main Competitors
➢ Ulta
➢ Walmart
➢ Target
➢ Drugstores

6. SWOT Analysis
Strengths
❖ Trained professionals
❖ Strong Brand Recognition among loyal
customers
❖ New industry technology
Opportunities
❖ Young Adult Female emerging market
❖ Global Presence
❖ Beauty Professional training and
application
Weaknesses
❖ Advertising: very little advertising for
company and products
❖ Weak fragrance brand awareness and
low sales
❖ Limited locations and brand
standardization
Threats
❖ Environmentally conscious stakeholders
and companies
❖ Lack of convenience

7. ❖ Analyze the quality of customer service provided to customers at
Sephora to determine the effectiveness of Sephora’s customer service
❖ Study why consumers choose Sephora’s competitors
❖ Determine if Sephora’s service is consistent with its mission
statement
❖ Identify opportunities for service improvement and make
recommendations to Sephora
Service Audit Objectives & Goals

8. Research Methods
❖ Observation
➢ In-store observation of customer and sales
associate interactions
❖ Brief Inquiries of Employees
➢ Asked the sales associates a few questions to
increase our data collection
❖ Online Survey
➢ RIT Qualtrics
➢ Distributed through social media, emails, etc.

9. Observation
❖ Understand how customers search for,
test, and decide to purchase products
❖ Study how often customers utilize the
makeup consultants and whether these
interactions led to a purchase
❖ View the level of organization of store
products

10. Sephora Customer Experience

11. Who Initiated the Interaction?

12. How Long was the Interaction?
Short - Sales Associate showed Customer
to product area / 1 Task done by SA for C
Medium - Sales Associate helped
Customer with more than 1 thing
Long - Sales Associate applied 1 or more
products onto Customer

13. Did Customers Use Any Makeup Testers?

14. Purchase Percents

15. Brief Inquiries
❖ The number of employees that work at one time
➢ Weekday vs. Weekend
❖ Qualifications required for employees
❖ Important skillsets necessary for employees
❖ How new technology has improved Sephora’s
customer service capabilities

16. Sephora Employees
❖ Weekends: 4-5 work at once
❖ Weekdays: 3 work at once
❖ No certifications
❖ Customer Service skills

17. New Technology!

18. Online Survey
❖ Where consumers shop or would shop for
makeup
❖ How Sephora customers rate Sephora’s
location, quality of products, atmosphere,
and customer service
❖ How Sephora’s competitors were rated in
the same categories

19. How Women Use Makeup
50%Women use makeup everyday
41%
Women use makeup 3-5 times a week

20. Where Consumers Would Shop
35 of 38
WOULD NOT
shop at Sephora

21. Sephora Vs. Competitors
Quality of Products
Atmosphere
Ability to Consult with Makeup Experts
Location
5.7 5.0
5.0 4.1
4.9 2.6
4.6 5.0

22. Sephora’s Customer Service
67%
of the participants who received
assistance from a sales associate said that
they were more inclined to purchase a
product

23. Strategic
Recommendations

24. Strategic Recommendations
Price Variety
Increase Promotions
a. Increase Advertising of Sephora Brand
Makeup
b. Blind Product Testing
c. Fragrance Promotion

25. Strategic Recommendations
Employee - Customer Service Interactions
a. Continuation of High Employee Expectations
b. Greeters
Location
a. Airport Vending Machines
c. Easy Access Mall Locations

26. Questions?