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Sephora Direct: Investing in Social Media, Video and Mobile

Consumer Behavior Case Study Assignment
by

Avril Hsu

on 7 April 2014

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Transcript of Sephora Direct: Investing in Social Media, Video and Mobile

Executive Summary
Situational Analysis
SWOT Analysis
Problem Definition
Development of Alternatives
Recommendations to Management
Background
"Sephos" - greek for pretty, "Zipporah" - Moses’ beautiful wife


Largest beauty retailer in the world
History
1969: Founded in Europe
Marketing Strategy
Double the budget of the marketing strategy
Understand and define
"success"
in the digital space
Improvement of various existing channels:
Sephora Direct
Facebook fan page
Beauty Talk
YouTube channel
Mobile
Strengths
Weaknesses
Opportunities
Threats
Largest online Beauty Site
VIB program
Passionate Engaged Customers
Social Media
Promotions
Beauty Talk Leader Board
Mobile/iPhone App

No distribution on Chanel/MAC brands
No Android app
No stores in non-metropolitan areas
Integrate videos w/ UGC
Jennifer Aniston Fragrance
Cross-Branding with Vendors
New e-commerce partnerships

Ulta Stores
Amazon.com
Beauty.com
Summary
Questions?
Presented by:
Group 4
Jeff Britton
Jessica Corcoran
Ronald Jay Gervacio
Julie Godfrey
Avril Hsu
Katrina Vanacora
Sephora is doubling the marketing budget for
new digital initiatives.
It needs to define the optimal marketing mix and KPIs
Focused touchpoints in digital strategy
Beauty Board
Facebook
Beauty Talk
YouTube

Strategic Initiatives
Real-Time Chat
VOC Survey
Multi-Channel Integration

Sephora needs to maintain their
creative edge
in the beauty market by determining the optimal digital marketing mix, and how to measure their marketing activities’ success.

Sephora Direct
Sephora.com
Beauty Insider
Beauty Board

Social Media
Facebook
Beauty Talk
Twitter

Online Video
YouTube

Mobile
iOS

Opportunities
New e-commerce partnerships
Cross branding with vendors

Focused Touchpoints
Beauty Board
Facebook
Beauty Talk
YouTube

Alternatives: Sephora Direct
Photos are uploaded so users can get ideas for a certain look and what products to buy - similar to Pinterest
Products are tagged in the photos to users do not have to do extensive research to find what products were used to get the certain look

Alternatives:Social Media
• Utilize to announce upcoming promotions and new product launches

• Post photos of new products suitable for each season
- Spring nail polish colors
- The perfect summer moisturizer with SPF

• Post photos from in store new product launch parties
- Creates excitement
Alternatives: Social Media
Important focus since more people are now shopping online
Sephora professionals should respond and monitor questions but also allow customers to interact with each other
- Users will feel comforted if can discuss
challenges with other users instead of
speaking solely with a professional
Users are more likely to ask questions online instead of in person
Main focus is on content – answering questions and giving advice
Alternatives: Online Video
• Utilize YouTube for tutorials
• Looks that are trending now – celebrity looks
• Nail and makeup tutorials
• Videos can be specific for different skin tones or face shape
• Creates excitement since users are able to recreate their
favorite look themselves
Sephora’s goal

1.
Cultivate and improve Sephora customers’
digital experience

2.
Measure, track, and report
the digital performance to support funding for digital marketing
Sephora.com
1. Launch
live chat
on the site to differentiate
“expert” advice
from “customers” advice
Address the issue from Beauty Talk
Provide
in-depth advice
on the variety of the products, the ingredient of the
products etc.
2. Implement
voice of customer type of survey
(eg. iPerception) to measure the customer satisfaction online
Generate
Customer Satisfaction Score
(just like Net Promoter Score) to gauge
the online performance
Quantify
the results and define KPI for next year’s budget on digital marketing
Mobile market
Launch
Digital Out-of-home

(DOOH) advertising campaign

Capture
on-the-go market
Manage
multi-channel
,
Integrate
online and offline
shopping experience for Sephora
Maintain Current Spending Split
Focused Touchpoints
Beauty Board
Facebook
Beauty Talk
YouTube

Strategic Initiatives
Real-Time Chat
VOC Survey
Multi-Channel Integration
Full transcript