Sephora Case Analysis Shih Jung Cheng NE
Case Analysis – Sephora in U.S.A.
Sephora Direct: Investing in Social Media, Video, and Mobile
Name: Shih-Jung Cheng
Cohort: North End
Date: February 18, 2015
Objective
How
to allocate limited budget and effort in various digital marketing categories to maximize the profit and impact? Should Bornstein double the budget in social media, video, and mobile? Background
Started
in 1969 as a perfume special shop in France, now is managed by the luxury brands Louis Vuitton and Moet Hennessy (LVMH). Sephora opened the U.S. market in 1998 with perfume and cosmetics; in 2010 Sephora offered 288 brands includes prestige brands, emerging brands and Sephora private label products. Sephora has 450 stores (45% of world market) located in U.S. (36 states) and Canada. The U.S. beauty and personal care market is approximately $58.9 billion in 2009, according to LVMH 2009 report1 “Sephora continues to win market share.” Analysis
Sephora’s
Marketing Mix •
Unique Value Proposition: Vibrant environment that encourages experiment and trial.
•
Offer: Products in different brands and categories, and service from non-‐commissioned store cast member (employee) that is knowledgeable to answer all kinds of questions.
•
Value: Priced at Manufacturer suggested retail price (MSRP)
•
Experience: Store experience is the start and key for Sephora’s branding, stores are look and feel similar with black,
Sephora Direct: Investing in Social Media, Video, and Mobile
Name: Shih-Jung Cheng
Cohort: North End
Date: February 18, 2015
Objective
How
to allocate limited budget and effort in various digital marketing categories to maximize the profit and impact? Should Bornstein double the budget in social media, video, and mobile? Background
Started
in 1969 as a perfume special shop in France, now is managed by the luxury brands Louis Vuitton and Moet Hennessy (LVMH). Sephora opened the U.S. market in 1998 with perfume and cosmetics; in 2010 Sephora offered 288 brands includes prestige brands, emerging brands and Sephora private label products. Sephora has 450 stores (45% of world market) located in U.S. (36 states) and Canada. The U.S. beauty and personal care market is approximately $58.9 billion in 2009, according to LVMH 2009 report1 “Sephora continues to win market share.” Analysis
Sephora’s
Marketing Mix •
Unique Value Proposition: Vibrant environment that encourages experiment and trial.
•
Offer: Products in different brands and categories, and service from non-‐commissioned store cast member (employee) that is knowledgeable to answer all kinds of questions.
•
Value: Priced at Manufacturer suggested retail price (MSRP)
•
Experience: Store experience is the start and key for Sephora’s branding, stores are look and feel similar with black,