Marketing Plan 2010

Barbara DenoyPascale DuongSteven Van Der Lugt

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• More than 750 stores in 21 countries

• Founded in France in 1969

• Carries over 250 brands

• Launched online shop in 1999 available in 9

countries

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The most important issue for Sephora isthe economic issue because they need tofocus on their profits due to the crisis.

Sephora’s market is the cosmetic andperfume market (22% share of market) :

• United States

• China

• Europe

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Direct competitors Indirect competitors

• Supermarkets

Future competitors

• Pharmacy (an increase of 5% since 10 years)

• Murale (Canada, Pharmaprix)

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Sephora's target market is very big: - women of almost all ages- wealthy- 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 thatcustomers will come back because they found what they needed.

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Product : Sephora has their own productswith their own name.

Promotion : Sephora uses direct marketingwith their free loyalty card. They also usemailings and stands in shop.

Brand ( Product )

Advertising ( Promotion )

Distribution channels

Pricing

The priorities for Sephora are to invest in thebrand and to communicate to the targetaudiences in order to increase loyalty levels.

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Strengths

•Advertising

• Brand’s reputation

• Product quality

• Suppliers

• Own products with their own name

• Internationalization

USP

• Sales points: well-be, beauty

ESP

Weaknesses

• Difficulties of adaptation in foreign

countries (for example : Japan)

• Self service does not comply with the

luxury image

• Sephora does not have a strategy to

avoid the competitors.

Opportunities

• New trends

• New products

• “ Niche brand ”

Threats

• Lots of competition

• Economic crisis

• Real estate crisis

• Particular lifestyle, habits…

• Entry barriers on the perfume market:

we need lots of money

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A= SephoraB= MarionaudC= Beauty succesD= Douglass

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In 2010 Sephora will focus on market development strategy: selling the same product to a new group.

Sephora would like to increase the demand by promoting their existing offer to new segment.

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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 salesmen.

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Their market share consists of mostly womenand they would like to increase market sharefor 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.

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Strengths Weaknesses

Opportunities

Own products

with their own

name

Price

Threats

Internationaliza

tion

Suppliers

Self service

different from

the luxury

image

A= SephoraB= MarionaudC= Beauty succesD= Douglass

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Transaction per day: 8Transaction per week: 48 (8x6)Transaction per month: 192 (48x4)Contribution for the next year: 12 x 192 x 40 = 92 16092 160€ is an estimate revenue of the project.

Age

Men

20 to 30

Transaction / hours

1

Panier moyen

40 euros

Transaction / Day

8

Open days

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We decide to collaborate, in first, with Lacostebecause 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 cardbecause we notice that it is a pertinent (good) wayfor secure the fidelity of clients. Moreover, this is inrelation with our challenge.

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Even if we decided to develop a new market,we will create a new product with Lacoste topromote our new segmentation (men, age 20to 30).

Product :- Toilet bag which can contain one perfume,lotions and creams.- Sales places : only on the Sephora’s shopand Lacoste’s shop.- Price : about 20€ more than perfume’price.

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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.

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What is the activity?

Who?From

when?To

when?How

much?Comments

Advertising NoemieDecember,

1stJanuary the

4th.15000€

PublicRelation

Paul December January 13000€

Open Day, Conference, Sponsoring

…

Marketing budget

28000€

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We used 40% ofassumption budget of2.6 : 36.864€.

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- Meeting on Tuesday every 2 weeks- Control budget and check expenditures- Campaign is the most important- Consultant, accountant and loyal customer.

- Survey- Well-selected loyal customers- External firm to set up the survey

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Jan. April July Oct. Dec.

Important dates for our new market are :• Fathers day ( Mostly third Sunday of June )• Christmas period ( 18 – 26 dec )• National festivities where people give presents ( e.g “Sinterklaas in Holland, 5th of December )

Market leaderCheck on spending and budget

“Where can I buy male beauty products?” Sephora

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