The Budget Allocation For Sephora Essay
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 and social media efforts in the following manner:
• Mobile App development: 25% of the users use mobile in their buying process, this number is bound to increase so we must cover Android market too as it is getting traction too. Nevertheless, 90% of users use Apple devices an IPad app is also a must this effort will cost us around $300K+ $75K in maintenance of all 3.
• For YouTube videos, we should produce 1 professional video monthly, in synergy with our instore animation costing us around $240K, along with that I will increase tie-in videos with top performing Users, giving them sponsorships in form of products and money this whole program will be allocated $260K.
• Remaining new budget of $625 K along with the old budget (~$1 mil) will…