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