digital marketing - sephora case
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- M5A1815017
M5A1815014
51815038
1000 stores 23 countries 450 in USA & Canada
In metropolitan areas & shopping malls
Partnership with JC Penny exclusive beauty retailer
288 brands, over 20.000 products Prestige brands except for Chanel & MAC
Target group: 25-35 year old women
Pricing: MSRP
Promotion: samples, 2 discounts events each year (loyalty card)
Sephora.com 30% of the U.S. online market
Beauty Insider Program 15 million customers signed up
80% of Sephoras sales
Facebook 900.000 fans
Beauty Talk Q&A forum Twitter 100.000 followers
Online Video/ Youtube UGC and Professional videos
Mobile initiatives WAP optimized for mobile users
iPhone application
Pros 21.000 products
Discounted mass-market products and prestige brands beauty superstore
Strip malls & easy parking
Full- service salon
Extended target group 44+ women tend to be more loyal
Approachable & in style personality Considered as more
down to earth
Cons No niche makeup brands
Off-mall locations
Less retail stores
Less loyal customers (only 7 million in loyalty program)
Weaker digital presence E-shop & Social media
No mobile offering in 2010
Fast follower of Sephora 29% market share
Pros
First to have active review boards
posting reviews on amazon for products
bought on Sephora
Cheaper prices
Variety of products
Recognition
Cons
Not expert in Beauty
retail products (low
variety and stock)
No retail shop
No possible product
testing and
experimentation
No loyalty program
Pros
Deep discounts in
luxury brands flash
sales
Prestige brands not
available at Sephora
Cons
Only online shop
No mainstream
brands
Deep discounts only
for a short period
Limited stock
Pros
Convenient
Brand expert
employees
Variety of product
categories
Cons
Not expertised in
Beauty products
Limited line
products
No online shop
No digital presence
Strengths Strong brand recognition
Positioned as an expert in beauty industry
top of the times products
customers willing to pay more
Private label products value for money
Open sell, self-service in store setup
Fun & party atmosphere, no pressure to buy, free trial
Animations Coordinate messages both offline and online
The biggest online beauty website
Reward program VIB
Engaged & Loyal customers
Strong content Talk about things people care
Free samples (on-line and off-line)
Online search advertising (googleAdwords) traffic to website
Strong presence in social Media
Mobile iphone app
Integrated exprerience
Weaknesses
No retail stores in rural areas
Not every prestige brand (e.g. Chanel,
MAC)
Small staff size
No saloon experience
No discounts
Some app features slow to download
No android app
Budget Category Description/ Programs 2011 Budget Allocation
Video Production
(professional Sephora
videos)
positioned as expert
advisor
balance between
Sephoras and UGC
videos
More how to videos cross selling
100.000 (10%)
Video/YouTube
Advertising
Trend: less reading -
more video viewing
Attract new customers
Enhance repurchase
Inform for promo,
services, events
100.000 (10%)
Video Contest Take advantage of the
UGC video to create
content UGC videos boost
credibility of products
Brand engagement
50.000 (5% )
Budget Category
Description/ Programs
2011 Budget Allocation
Facebook Development Maintain our strong
presence
Continue promotions
50.000 (5% )
Holiday / Viral Promotion Maintain buzz
Catch attention
Enhance seasonal sales
50.000 (5% )
Social Partnerships Partnership with a
womens block or site
Sharing audience
Boosting digital
presence
150.000 (15%)
Mobile 90% of our clients use i-
products
Expand and improve
iphone app
App for ipad
250.000 (25%)
Budget Category
Description/ Programs
011 Budget Allocation
Store Kiosks Boosts in-store
experience
Ability to compare
products, prices
Ratings, reviews,
information
No need for more staff
or further training
150.000 (15%)
Twitter Strengthens social
media presence
Drive traffic to website,
youtube
Not everyone has FB
profile
Promotes events and
contests
50.000 (5% )
Beauty Talk Promote the forum
and blend it with FB
Improve platforms
environment
100.000 (10%)
Print Catalogs
Half length catalogs
2 times/year
Direct mail pieces email
On Facebook:
Lack of archival capacity
Same questions over & over again
not easy way to save & query responses
Not recognition of superusers
No way to mask a clients identity
24% of respondents said yes!
Q & A forum
Strong search functionality
Safe and private environment
Recognition of superusers beauty master, beauty heaven, VIB
Superusers become opinion makers
Enhance credibility, brand engagement & loyalty
Opportunity to provide a wealth expert advice
Create a banner on Facebook for direct
registration to Beauty Talk
Use links in Beauty Talk to the other social media
pages
How to
blend it with
Facebook?
How to
promote
the forum?
need
Seeking information
evaluation of
alternatives
purchase
use
Post purchase behavior
Promotion activities, Advertisment, Social Media, Website, Beauty Talk, E-mails,
Mobile app
Social media, Mobile app, Website, Beauty Talk, E-mails, In store,
Promotions (catalogs), Advertising
Social media, Beauty Talk, Website, Mobile App,
Promotions (free samples), In-store (trial)
Retail store, Website, mobile
app
Social media (how to videos), Beauty
talk, Website, Retail
store
Social media, Beauty talk, Website, Mobile
app, Retail store
Growth of website visits among current
and new users
Valid and timely update of product
information
Improve and refresh the functionality
and design of the context
Constant monitoring and derivation of
website statistics
Raise of customers loyalty
Customer relationship management- identify most profitable customers
Provide users with perks and rewards
Regular communication with clients by email
Coordination of all digital media for an integrated strategy
Contribution in promotion acts and synchronization of media in a digital campaign statistics of preferences and profile of online
beauty shoppers
Enhance page functionality more search filters
No 1 online community for anything beauty related
Maintain balance between responses of sephora experts and other members of sephoras community
Encourage user participation through gifts and rewards
Collect useful Feedback
Increase number of fans
Raise reach per post
Active management and consistent presence
Organization and constant renewal of the content of the page
Redirect user to the official website
Immediate response to messages or to user complaints addressed directly to the company
Encouraging more users for active presence and participation
Continuous rewarding of super-users
Collect useful Feedback
Increase the number of followers
Engage followers
Expand reach and create buzz
Redirect user to the official website
Make followers to republish promotions, messages and information about the brand or products
Collect useful Feedback
Organization and constant renewal of
the company's channel
Emphasis in counseling and in promotion
of the brand
Combination and balance between
Sephoras and UGC productions
Increase number of shares, embeds and
referrals from other Videos in Channel
Optimization of Websites mobile version (customized)
Increase downloads of iPhone app
Improve download speed of the various features of the app
App - Functionality that facilitates mobile purchases
App development suitable for iPad
Collect useful Feedback
Increase traffic from online search results
Keep clients for longer duration on the site
Reduce returns
Lowering call center visits
Encourage repeat visits
Enhance communication between clients
Consolidation as the main platform for ratings a