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Services Marketing Presentation

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Maria Vita

on 28 April 2014

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Transcript of Services Marketing Presentation

Services Marketing: Birchbox
Emma Burke and Maria Vita

What does Birchbox Offer?
• Birchbox is the leading discovery commerce platform. We are redefining the retail process by offering consumers a unique and personalized way to discover, learn about, and shop the best beauty, grooming, and lifestyle products on the market.

per month (Women) and
per month (men)
4-5 customized products
each month (drug store brands and some higher end brands)
Sent in a cardboard box, with love, to the subscribers' doorsteps
(Online store, tutorials, expert tips and videos)
o Strengths:
• Clear business plan
• Defined Markets and Service Line
• Offers cost effective way to try new beauty and lifestyle products
• Innovative

o Weaknesses:
• Small product samples
• Birchbox’s biggest hurdle is actually getting samples from companies
• Customers aren’t able to choose the products they want to find in their boxes, even though they are able to create a customized profile

o Opportunities:
• Offer themed boxes
• More high-end name branded products
• More accurate matching to customized profile
• Non-repeated products
• Teen boxes for younger girls
• More reach to foreign nations, especially Asia

o Threats:
• Competitors, especially Ipsy
• Rising trend of online beauty subscription services
• Sephora, who also offers samples
• Economic, technological, and socio-economical factors and trends

Competitor Analysis
o GlossyBox - $21 per month - beauty
o LuxeBox - $12 per month - beauty
o Julep Maven - $19.99 per month – nails
o Sample Society - $15 per month – beauty
o Target Beauty Box - $5 per month – beauty
o Goode Box - $16 – eco-friendly beauty
o ISPY - $10 – beauty
o Beauty Army - $12 – beauty

Current Service Blueprint


INTERACTION TYPE: Information Technology
order process > establish customer record >
orders and billing > inventory/purchases

Birchbox Subscription Service
Company Facts:
Headquartered in
New York City
(230 Park Avenue South)
Launched in
September 2010
by 2 Harvard Business School Graduates
Katia Beauchamp and Hayley Barna
Birchbox is currently valued at
$485 Million
Less than 200 Employees
Mission Statement:
Birchbox delivers high-end beauty, grooming, and lifestyle samples once a month, customized just for you”

What competitors are offering:
Julep Maven =
you can get a sneak peak of what is to come before the end of the month. If you do not like the shades of polish, you can skip receiving the box for that month and not have to pay the monthly fee for that one
Sample Society =
includes a “mini magazine” with beauty tips and coupons inside
Target Box =
Target entices customers to first try products and then by purchase full-size ones by including Target Gift certificates and coupons in the boxes
the products in every month’s boxes are packaged in colorful cosmetic bags
Beauty Army =
You are allowed to choose 6 items per month and can skip months (without fee) for when you aren’t interested in receiving certain products that month

Redesigned Blue Print
What's next for BirchBox?
Normally, I’d cancel the service, but because the customer service was exceptional, I am going to hang around a bit longer to see how this all works out.
Most of the time, my boxes weren't worth $10.They do not customize your individual box to you at all

Payment Processing
Data Input (Profile)
Boxes Stuffed
Shipping and Transit
So, for 2 months in a row, I didn’t receive a box. As a new customer, this was quite discouraging
This subscription is great. They narrow your profile to what products you would most likely use. I got my first box this past month and everything is usable and they’re all GREAT products. Definitely worth the money
I have found several other monthly boxes that are a much better value than Birchbox is.
Payment: Skip Months
Profile: Stick to Customization
Product Sizes: More full sizes
Product Selection: 5-10
Shipping: 2-3 day expedited
A Brick and mortar store in SoHo, Opening Summer 2014!!
Increased Men's subscription promotions

More name brands
Urban Decay, Too Faced

Themed boxes
Are Maria and Emma Going to Subscribe to Birchbox?
Full transcript