The Competitive Culture Map: Sephora and Ulta Beauty was performed to demonstrate a new methodology for conducting competitive analysis. It is aimed at marketers who are seeking to better understand their marketing competitive landscape.

1. The Luminosity Competitive Culture Map® Performing Competitive Analysis By Examining Company Culture and Organizational Structures

2. What is the Competitive Culture Map®? 2 The Competitive Culture Map® is a proprietary new research methodology developed by Luminosity Marketing. By utilizing information about the key decision makers, examining the company culture, and applying organizational development theories we are able to attain a richer competitive analysis. The approach allows marketers to predict future competitive moves by analyzing past actions and motivations of key decision makers. It goes beyond media spending and advertising messages to answer why competitors take certain actions.

3. Study Focus: The Beauty Retailer Industry 3 The companies analyzed in this report are Sephora and Ulta Beauty, two leaders in the Beauty Retailer category. Together they have continually revolutionized beauty retail and both have had explosive growth over the last 10 years. Despite the recession, both companies are poised for further growth and to continue their impact on the industry. We profiled the organizational structures and marketing leadership at the two companies as a way of understanding the organizations’ decision making processes and values. Valuable insights were uncovered about how the firms go to market and what marketing initiatives they might pursue in the future.

5. Are moderately sized (38 employees at Ulta, 42 at Sephora), employ highly educated staffs and enjoy low turnover.

6. Are heavily skewed formidable female staffs.

7. Employs more brand-centric managers and is based in the heart of large cities.

8. Has a fairly traditional organizational structure, except for the employment of two marketing SVPs who report directly to the CEO.

9. Is more operationally focused and located in more middle-class suburbs.

10. Has a less traditional organizational structure.

12. Are there innovations within competitors’ structures that can benefit my business?

13. What do competitors’ organization changes indicate about their future strategy?

14. How do competitors’ organizations function?

15. Are there key players that are willing looking for a new home? To schedule a presentation of this study for your company by the Luminosity research team, or to purchase the full Luminosity Marketing Competitive Culture Map: Sephora and Ulta Beauty Report please contact : Candice Seiger Associate Director, Research & Client Development info@luminositymarketing.com 646.213.4860

16. Download the Executive Summary 6 For a more comprehensive and detailed view of the Sephora/Ulta Competitive Study, download the Executive Summary— The Competitive Culture Map®: Sephora & Ulta Beauty About Luminosity Marketing Luminosity is an analytical marketing communications firm specializing in target audience definition, message framing and connection strategy. We use our combined expertise in research an media to generate powerful connections between brands and target consumers. Learn more at www.LuminosityMarketing.com.