4. • More than 750 stores in 21 countries
• Founded in France in 1969
• Carries over 250 brands
• Launched online shop in 1999 available in 9
5. The most important issue for Sephora is
the economic issue because they need to
focus on their profits due to the crisis.
Sephora’s market is the cosmetic and
perfume market (22% share of market) :
• United States
6. Direct competitors Indirect competitors Future competitors
• Supermarkets • Pharmacy (an increase of
5% since 10 years)
7. Sephora's target market is very big:
- women of almost all ages
- budget conscious.
The sales staff are low-key, no-pressure, people who are only there
when you need them.
They want to create an environment without pressure and believe that
customers will come back because they found what they needed.
8. Brand ( Product )
The priorities for Sephora are to invest in the
brand and to communicate to the target
audiences in order to increase loyalty levels. Advertising ( Promotion )
Product : Sephora has their own products
with their own name.
Promotion : Sephora uses direct marketing
with their free loyalty card. They also use
mailings and stands in shop. Pricing
9. Strengths Weaknesses
•Advertising • Difficulties of adaptation in foreign
• Brand’s reputation countries (for example : Japan)
• Product quality • Self service does not comply with the
• Suppliers luxury image
• Own products with their own name • Sephora does not have a strategy to
• Internationalization avoid the competitors.
• Sales points: well-be, beauty
• New trends • Lots of competition
• New products • Economic crisis
• “ Niche brand ” • Real estate crisis
• Particular lifestyle, habits…
• Entry barriers on the perfume market:
we need lots of money
12. In 2010 Sephora will focus on
market development strategy:
selling the same product to a new
Sephora would like to increase
the demand by promoting their
existing offer to new segment.
13. In 2010 Sephora’s marketing mix will be
focused on the advertising with a big
campaign. Sephora should create a new
atmosphere in their shop: new
decoration (more masculine) and
14. Their market share consists of mostly women
and they would like to increase market share
for male products :
• Men of 20 until 30
• A dynamic and attractive target group
• Need to take care of themselves
• Sociological influence
• New conception of the beauty
• It is no longer only for women.
• It is not only a trend but a real need.
15. Strengths Weaknesses
Opportunities with their own Price
Self service B= Marionaud
different from C= Beauty succes
the luxury D= Douglass
16. Transaction Panier Transaction
Age Open days
/ hours moyen / Day
1 40 euros 8 6
20 to 30
Transaction per day: 8
Transaction per week: 48 (8x6)
Transaction per month: 192 (48x4)
Contribution for the next year: 12 x 192 x 40 = 92 160
92 160€ is an estimate revenue of the project.
18. We decide to collaborate, in first, with Lacoste
because we think that it can complete our offer.
But we can also have a partnership with Azzaro
(perfume market), or Raph Lauren (clothes market)
and GQ magazine (press market).
We advise to continue its system of loyalty card
because we notice that it is a pertinent (good) way
for secure the fidelity of clients. Moreover, this is in
relation with our challenge.
19. Even if we decided to develop a new market,
we will create a new product with Lacoste to
promote our new segmentation (men, age 20
- Toilet bag which can contain one perfume,
lotions and creams.
- Sales places : only on the Sephora’s shop
and Lacoste’s shop.
- Price : about 20€ more than perfume’price.
20. Objective : promote our new product to men between 20 to 30 years old.
For that we decide to promote by 2 ways :
First : Advertising : Media : hoarding (billboard) in street with men
When : before the Christmas period
Message : that men can take care of themselves also,
without being seen as effeminate.
Secondly : Public Relation : organize open day with presents (toilet bag),
specimen and presence of football star. Press release and press conference.
Sponsoring for sports events and invitation to cocktail.
For increase the sales of men products, we decide to make the shop’s atmosphere
more masculine with more salesmen.
21. What is the From To How Comments
activity? when? when? much?
December, January the
Advertising Noemie 15000€
Paul December January 13000€
24. - Meeting on Tuesday every 2 weeks
- Control budget and check
- Campaign is the most important
- Consultant, accountant and loyal
- Well-selected loyal customers
- External firm to set up the survey