Case Study: Ulta Beauty, Inc.

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Ulta Salon, Cosmetics, & Fragrance, Inc., now known as Ulta Beauty, Inc., was founded by Dick George and Terry Hanson. The two founders, once executives at Osco Drug, became business partners and launched a business plan made to revolutionize the way women shop for cosmetics (Kukec, 2017). George, once the president of Osco, had developed a new retail concept that would offer high-end cosmetics and fragrances, including services like hair salons and nails. The idea was to provide a convenient shopping experience for the busy shopper. Hanson was promoted at Osco, but in just a few short months, joined George’s team to help develop his ideas. The duo bought several brick and mortar businesses after having additional Osco executives follow …show more content…
Ulta offers not only several hundred well-established beauty brands, but offers its customers a full-service hair salon that includes many skin and brow services as well as experienced individuals that give tips and tutorials on skin and hair products for both men and women. The company’s mission statement says it all, “We’re on a quest to bring the fun of beauty to all – constantly delighting our guests with all things beauty all in one place, while offering rewarding careers for our passionate, beauty-loving associates” (ULTA Beauty, …show more content…
So what sets Ulta apart from other competitors? The store, loyalty perks, and brand diversity (ULTA Beauty, 2018). Ulta stores are unique in the fact they customers can expect a shopping experience that offers new and different beauty supplies, services, and products by beauty enthusiasts. Competitors like Macy’s and Sephora offer the experienced technicians that can provide advice on colors and shades, but the variety and products are limited and the experience is normal department store style and service. A huge business strategy that Ulta has developed over the years is the loyalty program. This is a program that offers Ultimate Rewards, with each purchase customers earn points that can later be used as cash with no expiration time. As a member of the loyalty program, customers get magazines in the mail that includes samples, tips, and new trends for the season. The last and most important part of Ulta that sets them high above other competitors is the fact they can deliver products of all prices and can bring together high-end names and general names for the sake of the customers, and it

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