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  • Sephora Body Care Centers

    Marketing Plan 2011

  • Table of Contents


    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 :

  • 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


    See Appendice


  • 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


  • 1.6 SWOT


    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

  • 1.7 Positioning

    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

  • 2.5 Positioning

    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

    natural products.

    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)

    Free gifts

    Point of sales materials

    Information points

    Loyalty cards

    Word of mouth

    Magazines / Newspapers

    Social Networks


    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.


  • Appendix 1.2

    Barriers of entry

    Estimated to


    Bargaining power

    of suppliers

    Estimated to 0,2

    Substitutes Estimated to


    Bargaining power of the


    Estimated to 0,4

  • Critical SuccessFactors of Sephora

    Marrionauds Nocibs

    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

    Products/store presentation

    Advantages withmembership

    Quality of products

    Product packaging Slightly lower price Bio products

    Atmosphere/ smellProducts sometimes

    less ex


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