Sephora Case Study 
Sephora Case Study
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
❖ High value brand in cosmetics category ❖ Providing many prestige brands and high quality products
❖ Sephora.com (best beauty website) and Beauty Insider program
❖ Experts are available in every stores
❖ Global expanding
❖ Growing in social media
❖ Increasing in online beauty shopping trend ❖ Mobile phone users increase and the improvement of application
❖ Product price is more expensive than drug stores or substitute products
❖ Difficulty to reach suburban region; most of stores located in metropolitan areas ❖ Strong competitors in beauty category both online and offline
Brand Positioning
❖ Experimental cosmetic retailer
➢ Experience and try different products for free before purchasing
➢ Experts in every stores are willing to be consultants
Single
Prestige
Beauty
stores
Price
Quality
Target Audience
❖ 25-35 year old women (many of whom “grew up” with the company)
❖ “This age group had an aspirational element, as the teenage girls looked up to this cohort and older women wanted to look 25-35 again.” - by Bornstein
❖ Younger, hipper people than people who go to department stores
❖ Look for more upscale
❖ Go online
❖ Want to discover and learn
❖ Want to experience new product
❖ Eager to share their personal experience online
❖ Most likely shop at multiple stores
Current Marketing Practice
High level Break-down of media spending
(Exhibit 5)
Marketing Mix:
❖ Store window merchandising
❖ Magazine advertising
❖ Two majors sales/promotions (in April & the holiday season) ❖ Beauty Insider program
➢ Catalog printing 3 times a year
➢ Direct mail
➢ Free gift and sample
Price: Cosmetics $5 - $90, hair care products $5- $85, skincare $5-$380
Place: Stores and online (Sephora.com and mobile application)
Products: Cosmetics, skincare, hair care, bath and body, fragrance; including prestige brands and private label brand, the Sephora collection
Promotion: Free samples, weekly special,
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
❖ High value brand in cosmetics category ❖ Providing many prestige brands and high quality products
❖ Sephora.com (best beauty website) and Beauty Insider program
❖ Experts are available in every stores
❖ Global expanding
❖ Growing in social media
❖ Increasing in online beauty shopping trend ❖ Mobile phone users increase and the improvement of application
❖ Product price is more expensive than drug stores or substitute products
❖ Difficulty to reach suburban region; most of stores located in metropolitan areas ❖ Strong competitors in beauty category both online and offline
Brand Positioning
❖ Experimental cosmetic retailer
➢ Experience and try different products for free before purchasing
➢ Experts in every stores are willing to be consultants
Single
Prestige
Beauty
stores
Price
Quality
Target Audience
❖ 25-35 year old women (many of whom “grew up” with the company)
❖ “This age group had an aspirational element, as the teenage girls looked up to this cohort and older women wanted to look 25-35 again.” - by Bornstein
❖ Younger, hipper people than people who go to department stores
❖ Look for more upscale
❖ Go online
❖ Want to discover and learn
❖ Want to experience new product
❖ Eager to share their personal experience online
❖ Most likely shop at multiple stores
Current Marketing Practice
High level Break-down of media spending
(Exhibit 5)
Marketing Mix:
❖ Store window merchandising
❖ Magazine advertising
❖ Two majors sales/promotions (in April & the holiday season) ❖ Beauty Insider program
➢ Catalog printing 3 times a year
➢ Direct mail
➢ Free gift and sample
Price: Cosmetics $5 - $90, hair care products $5- $85, skincare $5-$380
Place: Stores and online (Sephora.com and mobile application)
Products: Cosmetics, skincare, hair care, bath and body, fragrance; including prestige brands and private label brand, the Sephora collection
Promotion: Free samples, weekly special,