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Media Plan

Sonya Matejko

on 6 November 2012

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Transcript of Sephora

Media Plan Sephora Client Info -French cosmetic brand
-Founded in Paris in 1970
-acquired by Louis Vuitton and Moet Hennessy in 1997
-First US store was in NY in 1998
-began opening stores in J.C. Penny in 2006 Positioning Statement OUR positioning: For affluent males between the ages of 20-40 who are interested in skincare, who have a healthy lifestyle and discretionary income. Sephora is the destination for the health and beauty market that delivers an exceptional variety of products from low to high class, and from skincare to makeup. Sephora is the only destination for skin-conscience consumers who value an assortment of quality products in a high-end venue. Target Audience Psychographics Sephora’s in-store design indicates several target market segments/personas including women and men. Specific sections of the store show pictures of women of all cultures from Target Audience Affluent, young females who are influenced by the perceptions of beauty and trends, are concerned with high quality and esteemed brand names, are willing to go out of their way for excellent products, and are committed to making the most educated purchases possible. Competitor Analysis Direct Sonya Matejko
Haley Sasser
Lauren Wilson
Lauren Tami -Sephora carries over 250 brands, and their own label
-largest North American store in terms of sales and selection of products and brands is their online store, which was launched in the US in 1999
-2007: Sephora launched a client loyalty program
-2009: “V.I.B.” Very Important Beauty Insider: gave insiders free gifts and event invites
-“Science of Sephora” is a program developed to identify skin types, know history of make up, application techniques, and how to interact with clients Macro-Environmental Analysis social networking sites and word of mouth
economy is not where it used to be, people are trying to save money where they can Current Potential Affluent, young male professionals who value high quality skincare and products associated with good hygiene and an improved appearance. 20-30, 30-40, 40-50+ and men 20-40+ Market Analysis The most important issue for Sephora is
the economic issue because they need to
focus on their profits due to the crisis. Indirect Ulta

Mac Bath & Body Works
Department stores
Pharmacy stores
Walmart/Target movement for companies to be more green. Some of Sephora's makeup brushes are made of recycled aluminum, and its synthetic, cruelty-free brush hairs are more hygienic than real hair. social trends economic trends environmental trends STRENGTHS •Advertising
• Brand’s reputation
• Product quality
• Suppliers
• Own products with their own name
• Internationalization
• Sales points: well-being, beauty Current target market- women ages 18-55. Awareness and familiarity are already high. Awareness 95%
Familiarity 93%
Opinion 89%
Consideration 75%
Intention 70%
Shopping 61%
Buy 57% 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 (niche) competition
• Economic crisis
(People would rather buy cheaper products to save)
• Particular lifestyle, habits…
• Entry barriers on the perfume market STRATEGY Objectives BUDGET Flow Chart Problem Statement -While men do not typically seek out beauty products the way women do, skin care is something both genders have concerns about. Women characteristically know about many different places that they can purchase skin care products, but men are not as knowledgeable.
-For this target market (men 20-40), we would like to increase awareness of not only Sephora being for both males and females, but also of their selection of skin care products for males.
-Sephora is a very classy, high-end beauty store. We would like our target market to be aware of the quality products they sell. http://mashable.com/2012/06/20/sephora-15-days/ Flow Chart Media Mix Quintiles -Heaviest users of TV, heavy users of
Print and Digital
-Least consumes Radio The problem that Sephora has encountered is that they have a higher need to reach more males between the ages of 20-40+. Due to the company being positioned towards females, they have yet to successfully target and bring in male consumers. Also, due to multiple factors such as prices, the current economic crisis and being that the overall atmosphere of Sephora (and beauty/skincare) is geared towards females, they have yet to acquire male consumers. -Sephora’s 2012/2013 campaign will be a national campaign, with flighting advertising.
-We have a $15,000,000 budget to continue advertising to the female current market and target the 20-40 year old male market. The spot contingency is $2,250,000 (which is 15% of our $15,000,000 total budget). Therefore, our total media budget is $12,750,000.
-30% of our budget will go towards TV, 25% to Print, 25% to Digital, 15% to OOH, and 5% to Radio. Awareness 25%
Familiarity 17%
Opinion 14%
Consideration 12%
Intention 10%
Shopping 9%
Buy 7% Future target market-
men ages 20-40.
awareness and familiarity are low, this should be our main focus As an employee As a consumer As a company More about Sephora -Sephora is one of the highest paying retail jobs. (According to Forbes.com)
-Employees begin at $12.15/hr, receive beneficial discounts (which add to Sephora's profits) and have the opportunity for benefits via commission-like practices. http://www.forbes.com/2011/03/16/highest-best-pay-retail-sales-leadership-sales-leadership-salary_slide_4.html -Sephora offers free consultations to help out those with questions but limited discretionary income
-Sephora offers a rewards program for members to earn free products and extra discounts
-Sephora considers their store "a science" which requires employers to be very knowledgeable about their products
Industry: Cosmetics and Perfume Retail
Revenue: $900M
Employees: 6,000
Stores: 1,300
Countries: 27 http://www.insideview.com/directory/sephora-usa-inc
http://www.sephora.com/contentStore/mediaContentTemplate.jsp?mediaId=10800104 Why does this company matter? Jobs Gives back -Employs 6,000 people as one of the highest paid retail positions "Today, Sephora is the largest cosmetic and perfume retailer in the world." http://www.interbrand.com/en/our-work/Sephora.aspx Revenue: 730M
Locations: 300+ stores
(USA only) http://en.wikipedia.org/wiki/Ulta
http://en.wikipedia.org/wiki/Make-up_Art_Cosmetics Multiple socially-responsible efforts in place 1,000+ stores WORLDwide Dillards vs. JCPenneys Less affluent consumers who are not as interested in advice and service. IN SHORT Luxury beauty-product store with tailored and expert advice for beauty conscious individuals. We're here!
52% of U.S. consumers who make health and beauty purchases online do some from Amazon, compared to 8% for Drugstore.com, 7% for Walmart, 6% for Walgreens, and 5% for CVS http://www.factbrowser.com/facts/7244/ Booming health and beauty industry, even through the rough economic times
78% of online U.S. consumers have purchased health and beauty items online in the past year
Fragrances contributed 35% of the growth in the premium health and beauty products market in 2011, compared to 30% for skin care, and 15% for makeup http://www.factbrowser.com/tags/health__and__beauty/ But why... -"A new survey from HauteLook has shown that the number of men buying such items from the women’s section has risen by 76% since 2010.
Skincare was shown to be the most popular category, with men especially being drawn towards cleansers, moisturisers and eye creams to keep their skin in peak condition for longer."
-There are over 50M males in the U.S. in our target market of 20-40 (as of 2010 US Census Data). http://bella-kinks.com/men-becoming-more-interested-in-beauty-products/
http://en.wikipedia.org/w/index.php?title=File:Uspop.svg&page=1 www.sephora.com
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