digital marketing - sephora case

- 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