Christina Guo

Jacqueline Stratton

Jordan Hirsch

Vaishali Rao

Yuri Zheng

B R A N D V I S I O N M E T H O D O L O G Y

S E C O N D A R Y

P R I M A R Y

E X P L O R A T O R Y

MintelMRICompetitive Analysis

Employee ConversationsCategory-Related BlogsSocial Media Exploration3 Shop-A-Longs

4 IDIs with female Sephora Shoppers1 IDI with male Sephora shopper

B R A N D V I S I O N T A B L E O F C O N T E N T SB R A N DIntroduction

C O N S U M E R S

P R O B L E M A N A L Y S I SNew

OpportunitiesB R A N D V I S I O NC R E A T I V E B R I E F

Methodology: Primary and Secondary ResearchIndustry: Targets and Trends

Research FindingsPersona

B R A N D V I S I O N - History of Sephora

- Fragrance, Skincare, and Color Cosmetics- Science of Sephora- Flash program- “Classes for Confidence”- Color IQ- Play! By Sephora- Virtual Try On- Beauty Talk- Sephora TV

I N T R O D U C T I O N

Source: Hopp, Byrdie.com Essaywriters.com

B R A N D V I S I O N Worldwide sales of beauty-related products and services are estimated to be in excess of $159 billion dollars each year.

B E A U T Y I N D U S T R Y

Source: Wilson, BEAUTY STATS.com

B R A N D V I S I O N - Sustainable, natural and organic products.- Products targeting the aging population, babies and young children, men,

and family.- Consumer in-store experience- Continued Asian Innovation- Multi-Tasking Products- At Home Beauty Devices- Individualism and personalization- Underlying social trends: sustainability, fast-paced life, convenience,

individualism and personalization.Source: Wilson, BEAUTY STATS.com

B E A U T Y I N D U S T R Y T R E N D S

B R A N D V I S I O N Teen Spending Patterns:

- 45% of female between the ages of 15 to 17, and 22% of female between the ages of 12 to 14 spend money on makeup.

- Sample size: 1,344 Time and Skill Level:

- 69% of females spend up to 20 minutes on their beauty routines each day with 43% have basic skill level.

- Sample size: 1,026Patterns in Buying Behavior of Beauty Products:

- “I buy certain products from prestige brands and other products from mass brands,” - 63%.

- Sample size: 1,026

B E A U T Y C O S M E T I C P R O D U C T S

Source: Mintel 2014, 2016, Lightspeed GMI/Mintel.com

T A R G E T C O N S U M E R S

T A R G E T C O N S U M E R S

18 - 34 highly-educated female shoppers in urban areas.

HHI: $75,000+Potential: Asian and Hispanic

Source: MRI 2015, Mintel.com

B R A N D V I S I O N C O N S U M E R M E D I A C O N S U M P T I O N

Source: MRI 2015

B R A N D V I S I O N C O N S U M E R S O C I A L M E D I A U S E S● 48% of Millennials use their smartphones daily.● Millennials are more likely to multitask across

multiple devices.

The breakdown of millennial social media consumption:88% 77

%60%

Source: MRI 2015, Mintel.com

Source: Mintel- Beauty Retailing January 2016 US

B R A N D V I S I O N C O N S U M E R T R E N D S

Channel Shifting & Mobile Shopping

S E P H O R A

- Exclusive and premium brands- Exclusive shopping events- Loyalty program: points redemption, flash

shipping- Digital presence on social media- High-tech shopping experience

S E P H O R A F I N D I N G S

S E P H O R A

- One-stop shopping experience

- Professional representatives

“It is a nice place to work. Heavy competitions are frequently being done to receive special gratis.”

S E P H O R A F I N D I N G S

Source: InfoScout

●Product reviews and ratings

●Product functions: anti-aging, moisturising

●Price and exclusive discounts

●Attitudes and Knowledge of Store Representatives

B R A N D V I S I O N S E P H O R A S H O P P E R S

● Testing is important

- Skin types- The right colors

for makeups

B R A N D V I S I O N D E C I S I O N M A K I N G P R O C E S S

Source of information- Friend recommendation- Online reviews and

comments- Sephora’s favorites and

top sellers.- Salespeople- Makeup bloggers and

YouTubers.

Learn about a

product/brand

External and Internal

Search

Product Testing/ Purchase

Post

Purchase

Become

loyal

Refer the brand/product to

friends

B R A N D V I S I O N P E R S O N A She was born in California.She is trendy, bold and social. She is an early adopter.She has a boyfriend and they are celebrating their one year anniversary next month.She is very knowledgeable and very experienced about cosmetics, skincare, manicure, and hair style. She likes to advise her friends about best and new cosmetics.

She is glued to her phone. She is highly active on social media, especially Instagram and Facebook.She reads Cosmopolitan and follows makeup bloggers and YouTubers worldwide, such as Michelle Phan, Pony.She loves going out at night. She loves Electronic Dance Music and goes to Ultra Music Festival every year in Miami.

AriannaAge: 24

Second-Year Student at New York University

1. Primary Competitors- Department stores: M.A.C.,

La prairie - Mass merchandisers(16%

market share): Saks Fifth Avenue, Macy’s, Ulta

2. Secondary Competitors- Drug stores (10.3% market

share): CVS, Walgreens- Grocery stores (5.52%

market share): Wal-Mart, Target

B R A N D V I S I O N C O M P E T I T O R S

Source: MRI 2015

Strength:- High end and reputation in the skincare

market and among consumers. - Exclusive and unique brand image:

modernity and luxury. Has a professional website which offers personal skin consultations

Weakness:- Products are expensive and available on

concession counters in selected department stores and limited spa centers.

- In-store experience is limited (no test sample). Products could be seen as too expensive.

B R A N D V I S I O N P R I M A R Y C O M P E T I T O R S D E P A R T M E N T S T O R E S

Source: Nikita, Skincarereview.com

B R A N D V I S I O N P R I M A R Y C O M P E T I T O R S D E P A R T M E N T S T O R E S

Strength:

Brand has a strong brand image and perceived high quality products

Weakness:

Selective (high price for the average consumer, so the brand has a smaller audience)

Source: Chesters, Guardian

B R A N D V I S I O N P R I M A R Y C O M P E T I T O R S M A S S M E R C H A N D I S E R S

Strength: Strong brand image that is incorporated in American culture

Weakness: A lot of employee turnover due to huge workforce (which costs the company money)

Source: NRF Foundation, Wages in the Retail Industry

B R A N D V I S I O N P R I M A R Y C O M P E T I T O R S M A S S M E R C H A N D I S E R S

Strength:

Diverse portfolio with 20000 products and over 450 brands

Weakness:

Individual companies have limited market share

Source: Ulta

Strength:

- Big quantity of regular(loyal) customers and multi-channel platform

- Luxurious brand image because of high quality products

- Excellent brand heritage and image,, premium quality merchandise

Weakness:

- Differences between online and in-store prices

- High shipping fees in comparison to competitors

- Brand design selection available in-store is different from online due the economic downturn

B R A N D V I S I O N P R I M A R Y C O M P E T I T O R S M A S S M E R C H A N D I S E R S

Source: SWOTanalysis24.com

B R A N D V I S I O N S E C O N D A R Y C O M P E T I T O R SD R U G S T O R E

Strength:

- Over 7,000 CVS stores at specific pharmacy locations in over 40 states of America

- The walk in clinics initiated by the company has demographic locations in almost 25 states with 570 outlet units.

Weakness:

- Customers may find it frustrating to find that their product assortment have changed.

- Product may be regarded lower quality compared to higher end brand.

Source: businesswire.com

More Experience

LessExperience

More Exclusiveness

Less Exclusiveness

B R A N D V I S I O N

Original positioning:

Affordable price and high-quality products.

New positioning:

To 18-34 females who are influenced by trends and social influencers, Sephora is a one-stop shop to satisfy all beauty needs with immersive and enjoyable experiences.

P O S I T I O N I N G

SWOT Analysis of Sephora

Strength

Self – Service; The ability to try and test products; No guess-work anxietyTracking Buyer Habits1. Via website 2. Loyalty cards and programs

Quality products at Affordable Price; Targeted price points for different income groupsSkilled WorkforceExperienced Business UnitsWide Range of Products; Sephora offers variety in choice, and exclusive brands.

WeaknessLow brand recognition: many not aware of brand or not within their physical reach.Ineffective advertisingNo Strong Global Presence

Source: Thu, Academia.edu Hagloch, Library

Journal

SWOT Analysis of Sephora

Opportunities

Men’s cosmetics: The Independent report with MR Porter claim 300% increase in salesPartnership with Social Influencers: Beauty Vloggers on YouTube and Makeup BloggersIncrease in Buying Power of Ethnic Groups: Hispanics, Asians, Indians

Technology in Selling: Mobile apps for shopping, Augmented mirrors

Threats

Economic Instability - Makeup, speciality product, is not needed during recessionsDepartmental Stores: Bloomingdales, Nordstrom

Specialty Stores: MAC Cosmetics, La Mer, Bath & Body Works, Body Shop

Price of Raw Materials: Harder to maintain low price due to high inflation in raw material costs

Source: Hunt, Academia.edu Hagloch, Library

Journal

B R A N D V I S I O N Core Identity Brand Soul: A cosmetic store offering over 250 classic and emerging skincare, haircare, body, fragrance, and makeup brands. Brand Values: Expertise, Variety, Beauty, Knowledge, Inspiration, Style, Fun Point of Difference: Ability to try new products, variety in brands, knowledgeable and friendly employees.Extended IdentityPersonality: Sephora is a 25 year old, recent college grad, who lives and works in New York City. Though most of her day time is spent at work in a management firm, the night is when she thrives. She considers herself a leader, not a follower, especially when it comes to beauty and style. Her phone, filled with social media apps and work emails, is always in her hand. Her calendar is filled with charity events and white-tie dinners. She loves to shop, to dine, and to dance, and she loves to post about it.

B R A N D V I S I O N

Source: Halzack, Washington Post. Hopp, Byrdie.com

B R A N D V I S I O N Brand Positioning: Sephora is edgier and cooler than their competitors. The variety in products, plus their knowledgeable employees, cater to a consumer without brand loyalty who is only looking for the best product.

Consumer RelationshipFunctional Benefits: Allows consumers to try out makeup brands in a no-pressure situation and benefits from multiple brands in store.Emotional Benefits: Anyone can be the beautiful, “It” girlConsumer/Brand Relationship: An integral part of their everyday beauty routine. The trustworthy friend they turn to for advice when they need to ask, “does this look good?”

B R A N D V I S I O N

Source: Sharpori, Smart Brief.

•What is the background for this assignment?- To understand the brand and branding of Sephora, the category it

belongs to, current performances and future potentials •What is the role of communications?

- Re-positioning from affordable, high-quality products to unique, high-quality experiences

- Effective advertising to increase brand recognition and loyalty to retain customers

•Who are we talking to?- 18-34 female shoppers- Ethnic groups such as Asians, Hispanics with higher disposable income

B R A N D V I S I O N C R E A T I V E B R I E F

● What is the target insight? Customers recognize and appreciate the free and comfortable environment of Sephora, and value experience more than brand or price. They also enjoy the freedom to test products.

- “Sephora taps into every little girl’s dream of being able to open up their mom’s makeup bag and just play.”

- “I can try the unlimited tester by myself, which is much more convenient and less awkward.”

Millennials trust social Vloggers and their decisions are influenced based on the information they receive. They are also trusting of in-store representatives.

- “I know who I follow and I kind of trust who I follow because we have a similar type of skin...so, when they share their shopping list, I always willing to try the products that I never use before and purchase them in store.”

- “I don’t try new things. But maybe if the representatives talk to me and give me information about what I need according to my specifics I might try.”

B R A N D V I S I O N C R E A T I V E B R I E F

● What is the benefit?- Sephora offers superior and wider range of products, variety in choice, exclusive brands,

quality information, and enjoyable experiences for everyone.

BRAND SHIFT: What is the shift we are trying to create in the consumer’s mind?- Current perception of Sephora is that it is a store of quality products at affordable prices, only.

We want them to view Sephora as offering high-quality experience, with innovative technology, better in-store service, and high-benefit loyalty programs that exceeds their value for money expectations.

From “affordable pricing and high quality products” To “one-stop-shop, no other makeup stores needed”

● What is the shift idea that will lead to famously effective work?- To view Sephora not just as a traditional brick-and-mortar store to a more extensive, high-

tech, integrated experience with innovative apps, programs and in-store technology such as Color IQ.

- To offer customized, focused service and give the freedom of DIY experience to customers.

B R A N D V I S I O N C R E A T I V E B R I E F

● Reasons to Believe- Proven experience in new and inventive technology such as Color IQ, Skin IQ that

has been integrated into in-store shopping- According to Webby Research Report in 2015, there is an increase in demand and

appreciation for technology and customization by customers.

● Personality- In-Depth Interview, Sephora as a person: “woman maybe 25 with dark hair, very

fashionable.”- Desired personality: confident, intelligent, trustworthy, and community-

oriented.

● Mandatories - Using ethnic and gender diversity in advertising to show the inclusive nature the

brand. - Moment of zero to reflect the freedom Sephora technology offers to customers, to

reflect the emotional enrichment and connection Sephora as a brand makes with its patrons.

B R A N D V I S I O N C R E A T I V E B R I E F

A P P E N D I X

1. How often do you shop at Sephora?

2. What is your average expense when you shop with Sephora?

3. What products do you usually buy in Sephora?

4. How do you decide specific products and brands?

5. Do you usually shop in store or shop online?

6. So when you shop in store, are you always shop alone or shop in a

group?

7. What do you feel about shopping at Sephora?

8. Why do you choose Sephora instead of other department stores or drug

stores? How will you convince your friends to shop at Sephora?

9. Where else do you purchase skincare and makeup products?

10. If you are going to recommend three brands to your friends,

what will be the three brands and why?

11. Do you care about reviews and ratings when you make your

purchase?

12. Do you think bloggers have great influence on you?

13. What do you think about salespeople at Sephora stores?

14. What do you think about your Sephora membership status?

15. Have you ever use Sephora mobile app?

16. Have you received any sample from Sephora? If so, have you

purchased any products because of the samples?

17. Have you seen any of their ads?

18. Words that come to your mind when you think of Sephora.

B R A N D V I S I O N I N T E R V I E W G U I D E L I N E S

Shop-a-long Correspondent Profiles 21 year-old femaleMarital status: Single

21-year-old femaleMarital Status: Single

26-year-old femaleMarital status: Married

Occupation: undergraduate student at Boston University

Occupation: undergraduate student at Northeastern University

Occupation: junior position in the banking industry

Shopping goals: brow gel for friend

Shopping goals: New foundation because of lost summer tan

Shopping goals: facial cream

Shopping alone/ in group: alone

Shopping alone/in group: alone

Shopping alone/ in group: Friend group

Frequency of purchase: Rarely

Frequency of Purchase: Multiple times per Month

Frequency of purchase: Twice per month

Below-than-average Shopper

Heavy Shopper Higher-than-average Shopper

20-year-old femaleMarital status: Single

23-year-old maleMarital status: Single

21-year-old femaleMarital status: Single

26-year-old femaleMarital status: Single

28-year-old femaleMarital status: Married

Occupation: undergraduate student at

Boston University

Occupation: graduate

student at Boston

University

Occupation: undergraduate student at

Boston University

Occupation: senior

software engineer at

Wayfair

Occupation: Software

Engineer at Qualcomm

Shopping goals: Skincare

and makeup

Shopping goals: Shopping

for friend

Shopping goals: Foundation, lipstick

Shopping goals: new

foundation and concealer

Shopping goals: mission-

based; makeup

Shopping alone/ in group: Friend group &

Alone

Shopping alone/ in group: Friend group

Shopping alone/ in group: Alone

Shopping alone/ in group: Friend group

Shopping alone/ in group: Alone

Frequency of purchase: Almost every week

Frequency of purchase: Almost never

Frequency of purchase: Twice per month

Frequency of purchase: Once per month

Frequency of purchase:Once every two months

In-depth-Interview Correspondent Profiles

Bibliography- “Beauty Retailing.” Jan. 2016. mintel.com- Butler, C. “Millennials Buying Beauty: Sephora Proves It’s All About the Experience.” Mar. 2015. Millennial

Marketinghttp://www.millennialmarketing.com/2015/03/millennials-buying-beauty-sephora-proves-its-all-about-the-experience/

- Chesters, Anna. "A Brief History of M.A.C." Guardian Fashion Blog. The Guardian, 24 Oct. 2011. Web. 01 Dec. 2016.

https://www.theguardian.com/fashion/fashion-blog/2011/oct/24/brief-history-of-mac - “Custom Sephora: Competitive Analysis.”

http://essayswriters.com/essays/Analysis/sephora-competitive-analysis.html- Hagloch, S. B. “Sephora, Personal Grooming,” 2013 Library Journal- Hall, J. “Saks Fifth Avenue financial SWOT analysis - Strengths, Weaknesses, Opportunities, Threats of

Saks Fifth Avenue.” SWOTanalysis24.comhttp://www.swotanalysis24.com/swot-s/93829-swot-analysis-saks-fifth-avenue.html

- Halzack, S. “The Sephora effect: How the cosmetics retailer transformed the beauty industry.” Washingtonpost. Web. 9 Mar. 2016.

https://www.washingtonpost.com/news/business/wp/2015/03/09/the-sephora-effect-how-the-cosmetics-retailer-transformed-the-beauty-industry/?utm_term=.41eaeedf7805

- Hopp, D. “13 Crazy but True Facts About Sephora.” Byrdie.com http://www.byrdie.com/sephora-facts/

- Hunt, K. “Sephora.” academia.eduhttp://www.academia.edu/8407579/TABLE_OF_CONTENTS_COMPANY_OVERVIEW

- NRF Foundation. Wages in the Retail Industry. Rep. N.p.: n.p., 2013https://nrf.com/sites/default/files/Wages%20in%20the%20Retail%20Industry%20REV.pdf

- “Sephora Shopper Insights.” InfoScout.comhttp://infoscout.co/retailer/sephora/?utm_expid=75303912-10.v9m4H1nZTUmfwmIv2SHFOg.0&utm_referrer=https%3A%2F%2Fwww.google.com%2F

- Shapouri, B. “The way we buy beauty now.” Ma.y 2016. Racked.com http://www.racked.com/2016/5/26/11674106/buying-beauty-sephora-department

- “Shopping for Beauty Products by all and Beauty Enthusiasts.” Jan. 2016, mintel.com- “Spring 2015 Simmons NCS Teen Study” Simmons Research, mintel.com“The Beauty Consumer.” Mar.

2016. mintel.com- “Time spent and Skill level.” Jan. 2016. mintel.com- "Ulta Website." Cosmetics, Fragrance, Skincare and Beauty Gifts | Ulta Beauty. N.p., n.d. Web. 29 Nov.

2016. http://www.ulta.com/

- White, N. “HighEnd -La Prairie.” SkincareReview.comhttp://skincarereview.com/skincare-review-1#!high-end---la-prairie

- Wood, L. “'CVS Corporation' SWOT Analysis Is An Essential Strategic Planning Tool Evaluate Their Strengths, Weaknesses, Opportunities, And Threats.” BusinessWire.com.

http://www.businesswire.com/news/home/20071011005498/en/CVS-Corporation-SWOT-Analysis-Essential-Strategic-Planning

Bibliography (continued)