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Sephora Body Care Centers
Marketing Plan 2011
Table of Contents
Part One : STRATEGIC PLANNING
1. Analysis of the Current Situation
2. Achievable Marketing Objectives
Part Two : ACTION PLAN
3. Yearly Action Plan & Marketing Budget
4. Control Procedures & Criteria of Success
Profile of the Company
TYPE : Division of Holding Company LVMH
INDUSTRY : Consumer Goods FOUNDATION : 1969 by Deeba
Abrishamchi HEADQUARTERS : Paris, France PRODUCTS : Cosmetics & Beauty PARENT : LVMH Louis Vuitton Mot
Hennessy S.A. WEBSITE : www.sephora.com
1.1. Macro environmental analysis
Political Environment legislation for the health of the nation and the quality of products and services
Social Environment Changes in social trend, lifestyle; the population has been ageing and demand for cosmetic products and services has increased, norms and values: to be beautiful;
1.2. Market Analysis
Substitutes Natural products, Cosmetics and fragrances sold in retail stores
Barriers of entry Image of a brand internationally known, Organization and logistics, Width of ranges, Marketing force of the existing companies
Bargaining power of suppliers Suppliers need Sephora to sell their products and touch the target
market they aim at, they have to sell at the same price everywhere
Bargaining power of customer The customer has a stronger bargaining power than the suppliers,
since they can decide to buy what they need at the competitors
1.3. Direct and indirect competitive analysis
Qualitative competitors: Drugstores, supermarkets, Reserve Naturelle
Marionnaud, Nocib, Douglas, Yves Rocher
For more details, see Appendice 1.3
1.4. Market Segmentation
First, Sephoras target is women between 18 to 60 years old,belonging to a middle class (monthly wage from around 1200 to2200) or upper middle classes (2200 to 3200). Sephoras second target is men between 20 and 55 years old,belonging to both classes.
1.5 Marketing Mix
Our actual marketing-mix is composed of:
30% of the offer mix: Sephora proposes a complete range of products 35% of brands: products sold at Sephora belong to famous and well
known brands 15% of service quality: salespersons follow customers in their choice 15% of physical attributes: good product quality 5% price: prices fixed by beauty stores are quite the same
Our actual promotion-mix is composed of:
60% of Direct Marketing 30% of Advertising 10% of Public Relations
For More Details, see Appendice 1.5
Sephora is located downtown Troyes where there are a lot of competitors .
New trends on the market, but competition seeks for the same goals.
For more details, see Appendice 1.6
USP:- Diversification of products- Own brand products- Customer services quality- Store presentation- Packaging-Atmosphere
Sephoras main competitors: Marionnaud, Nocib, Douglas
Sephoras best perceptual map is the one including the diversification of the products and the own brand products. This means that Sephora is the leader on those two points.
Fore more details, see Appendices 1.7
1.8 Sources of Information
See appendice Questionnaire
2.1 Marketing Strategy
Next year, Sephora is going to launch the project of a bodycare center in Troyes. The Spa will provide massaging andwaxing services.
2.2 Desired Marketing Segmentation
The first market is women living in Troyes and the suburbs,between 18 and 45 years old, and who belong to the middleclass or the upper middle class.
The second market chosen for the new service is men livingin Troyes and its suburbs, aged between 20 and 45,belonging to the upper middle class.
2.3 Desired Marketing-Mix
Next year, we will improve both price and quality of service of 5%.
We will put all our efforts on public relations to improve it of 10%, organizing an opening event and others.
For more details, see Appendices 2.3
The Beauty market is influenced by new trends and Sephora can offer such treatments. For that, it may:
Attract costumers of main competitor Yves Rocher.
Set up a satisfied or refunded policy to reassure clients.
If this project doesnt work, it might be hard on Sephoras finances.
For more details, see Appendice 2.4
2.4 Marketing Objectives - SWOT
The best situation for Sephora is the one mixing own brandproducts USP and diversification of products USP. Nextyear, we will improve both of them. To do this, we have toinvest money on developing Sephoras own brand products.
For more details, see Appendice 2.5
Combining the two kinds of services proposed, we evaluate theyearly sales forecast at 435 240. To reach this result, Sephorawould have to fill every single day, with appointments.
For more details, see Appendice 2.6
2.6 Yearly Sales Forecast
3.1 Main Cooperative Bodies (1+1 > 2)
We have decided to cooperate with Yves Rocher : Shops in the same area
Sephora transports a luxury image (famous brands)
Yves Rocher has a family and biological spirit.
Combine our strategies to attract new costumers New model that Yves Rocher will support through its experience in
We will increase their revenues by offering their natural products
Cooperation will be detailed on Sephoras Homepage.
3.2 Retaining Marketing Activities
Sephora should continue :
Selling its own brand of makeup and body care lines, to keep its advantage on competitors
Focusing on seasonal promotion (Christmas, Mothers Day)
Giving samples to customers
Its advertising campaigns (through website, posters)
We could start the project by :
offering massages and waxing building 2 rooms for treatments keeping the same schedule as for the shop (10 a.m. to 7 p.m.) hiring professionals beauty therapists (and train beauty counselors at the shop if we break even) middle range price (40 for a 30 min. massage) promote through posters, website, newsletters
3.3 Developing New Offer
3.4 Marketing Promotion (7 Ps)
Point of sales materials
Word of mouth
Magazines / Newspapers
Special Offers & Competitions
For more details, see Appendice 3.4
3.5 Enhancing Service Marketing Principles (3 Ps)
Employees: Sephora could first hire professionals to come to the Spa and perform the massaging according to the registered appointments.
When services are developed, Sephora could use trained employees. They should however wear the Sephora uniform.
Location: The Spa could take place in two rooms, at the back of the actual store. One room for massaging and another for waxing.
3.6 GANTT Scheme
See Appendice 3.6
3.7 Marketing Yearly Budget
See Appendice 3.7
4.3 Control by Milestones
Meetings between Marketing Manager and regional managers every 3 months, regarding marketing action plans.
4.1 Control Bodies
4.2 Control Tools
1. Surveys would be conducted to study the level of customer satisfaction. It can be oral or by filling questionaires in the stores.
2. Sales promotion activities3. Store managers have to submit monthly reports to the
regional manager .
Special offers in weekends. Launching of new products in weekends.
Barriers of entry
Estimated to 0,2
Substitutes Estimated to
Bargaining power of the
Estimated to 0,4
Critical SuccessFactors of Sephora
Diversification of products, + own
Less salespersons, freedom of the
Warm atmosphere, colors
Customer Service + samples
More samples givenQuick payment, not much time to wait at
the cash register
Quality of products
Product packaging Slightly lower price Bio products
Atmosphere/ smellProducts sometimes