Budget allocation for Sephora:
Sephora needs to keep up with the changing times and for that they have rightly decided to allocate more budget to digital marketing efforts. However, in order to achieve that Retail budget will be reduced from 45% (Ex5) to 39%,
• Since online promotions will make most print and catalog redundant so their frequency and distribution will be reduced. Store animations will be reduced to 12 from a current 13. This effort will free up $1.2 million.
• Beauty insider program can also be decreased from 20 to 18.5% only from events only as client engagement should be increased on the online platform instead of physical events, freeing up $300k.
The additional $1.5 mil from this effort can be allocated to the digital …show more content…
It made their VIBs feel important and others also felt good with badges and tags as they grew within the community. Hence, leading to an increased participation. Beauty talk can also help them target their Beauty insider customers too which contribute to 80% of their sales.
• That being said, its effort with social media shouldn’t be reduced, as Social media also helps in targeting and gaining new customers whereas Beauty talk is a customer engagement tool and has a narrow reach only to existing.
Competitors for Sephora:
Sephora has been far more advanced than its competitors in Social media and digital strategy, but they are being closely followed and some new entrants as well as established e-retailers are looking to disrupt the market. Some of the competition they should keep an eye out for are:
• ULTA Beauty: They are a close follower for Sephora and try to target same market as Sephora. They have an added advantage of attracting all customers due to their locations, saloons and all kinds of products under one roof. They have started getting traction even with high end cosmetics brand and have similar market share.
• E-retailers: New entrants such as birchbox should be kept an eye on, as well as established one such as amazon. They can be also looked as avenues for possible partnership and increase
Sephora needs to keep up with the changing times and for that they have rightly decided to allocate more budget to digital marketing efforts. However, in order to achieve that Retail budget will be reduced from 45% (Ex5) to 39%,
• Since online promotions will make most print and catalog redundant so their frequency and distribution will be reduced. Store animations will be reduced to 12 from a current 13. This effort will free up $1.2 million.
• Beauty insider program can also be decreased from 20 to 18.5% only from events only as client engagement should be increased on the online platform instead of physical events, freeing up $300k.
The additional $1.5 mil from this effort can be allocated to the digital …show more content…
It made their VIBs feel important and others also felt good with badges and tags as they grew within the community. Hence, leading to an increased participation. Beauty talk can also help them target their Beauty insider customers too which contribute to 80% of their sales.
• That being said, its effort with social media shouldn’t be reduced, as Social media also helps in targeting and gaining new customers whereas Beauty talk is a customer engagement tool and has a narrow reach only to existing.
Competitors for Sephora:
Sephora has been far more advanced than its competitors in Social media and digital strategy, but they are being closely followed and some new entrants as well as established e-retailers are looking to disrupt the market. Some of the competition they should keep an eye out for are:
• ULTA Beauty: They are a close follower for Sephora and try to target same market as Sephora. They have an added advantage of attracting all customers due to their locations, saloons and all kinds of products under one roof. They have started getting traction even with high end cosmetics brand and have similar market share.
• E-retailers: New entrants such as birchbox should be kept an eye on, as well as established one such as amazon. They can be also looked as avenues for possible partnership and increase