CH5 DEveloping A Global VIsion

Sephora is ahuge multinational company.As first Sephora was store was opened in Demagos, France in 1970, 30 years later Sephora chain has 1300 stores in 17 countries. The variation of brands is very significant as well around 250, along with their own brand. As  Sephora started their online business expending its  operations over 1,300 stores in 27 countries worldwide.

Sephora's first step in the way  to the international market, opening its first flagship store in New York City in 1998. The company then began to target expansion into the European market. Italy became one of the company's first targets, and it began buying up a number of smaller chains in that country. The company's acquisitions in Italy included Kharys in 1998, the 46-store Laguna chain in 1999, and Boidi, a chain of 19 perfume stores in 2000. By 2005, Sephora operated more than 100 stores in Italy, including its Milan flagship location, opened that year.

Sephora also renewed its international expansion drive. In 2004, the company boosted its presence in Eastern Europe, buying up the Empik perfume chain in Poland, then forming a partnership with leading Russian perfumery L'Etoile to bring the Sephora format to that market

Although Company had problems with launching their business in Japan. Management had a  number of mistakes that fallowed one by one like wrong customer targeting, wrong product targeting, misunderstanding of Japanese culture.

The result is company's losses in its final year operations were over $50 million (Weil and Hirano, 2001).Decision was made to withdraw from Japan as a move to be in conformance to its new strategy of 'achieving profitable growth' by venturing into new markets where it can eventually gain significant market share. The management  decided to focus on Europe and key region in the United States where it had major market positions.

Although Sephora failed in Japan, it is evident that the company has learnt from its past mistakes, for when it attempted a second entry into Asia through establishing itself in China the luxury retailer performed a series of market research activities structured around different aspects of the Chinese market. The company adapted its marketing mix to amalgamate more cohesively to the Chinese culture.

arch the company realized that the Chinese consumer, similar to the Japanese have a preference to body care over perfume. Further the company changed its target demographics to be 25-40 which they identified as the segment with an estimated highest growth rate in terms of purchasing power. The company has further identified the color association of red in Japanese people by changing packaging from their signature black and white to pink and violet during the Chinese New Year, signifying happiness and prosperity.

 The steady success of the line of Sephora branded products led the company to announce its plans to emphasize the future development of the brand.

Afuah, A. (2009), Strategic Innovation: New Game Strategies for Competitive Advantage, New York: Routledge.

Ahmadjian, C. L. and Robbins, G. E. (2005), "A Clash of Capitalisms: Foreign Shareholders and Corporate Restructuring in 1990s", American Sociological Review, Vol.70, pp.451-471.

Bucknall, K.B. (2006), Japan: Doing Business in a Unique Culture, Raleigh: Lightning Source Inc.

Business Week (January 25, 2006), "Sephora: Liberating Beauty Products", http://www.businessweek.com/innovate/content/jan2006/id20060125_183621.htm, accessed November 2009.

Camere, C. and Lovallo, D. (1999), "Overconfidence and Excess Entry: An Experimental Approach", The American Economic Review, Vol. 89, No. 1, pp. 306-318.

Dawson, J. A. (2007), "Scoping and Conceptualizing Retailer Internationalization", Journal of Economic Geography, Vol.7, pp. 373-397.

CH4 The marketing environment.

Sephora and recession.
In time when economy is in recession every business must think about ways of meeting their cliental needs/satisfactionand company revenues. Sephora is a premium cosmetic retail and in "hard" economic period is very difficult to keep customers. Alot of American people going trough rough times, where they have to cut down on their personal expenses. Thats why people tend to buy less brand goods,which is a lot cheaper. Thats why stores Like Walmart, JC Penny became more popular.    Sephora found their own way to manage this situation. For example,Sephora opened up their retail stores at JC Penny(one of them is in Manhattan Mall 33rd & Broadway). 

http://www.youtube.com/v/LWVZEl6Gv9Y&fs=1&source=uds&autoplay=1

 Technological/Competitive Factors.
To stay competitive and more attractive to customers Sephora staff demonstrates the use of specific products, but they go above and beyond this basic sales tactic.  For example, Sephora stores also offer free 10-minute Express Services – a makeup application and mini-lesson on how to achieve the season’s most coveted looks, such as a pouty lip or smoky eye – as well as 60-minute makeup sessions with a minimum purchase.  Larger stores regularly offer special events featuring consultations with visiting industry and brand experts



Sephora and Regulatory Agencies(FDA).
  Sephora had registrade many of their products with Food and Drug Administration (FDA).
  They have list of FDA approved products like skin care, tan lotions, lifting lotions, shampoos, etc.
Even face hair removal device that is FDA approved 
http://www.sephora.com/silk-n-sensepil-P241733

Specials are designed to both entice and inform.  They are typically presented as “$8 (a $30 value)” or as a gift with purchase, with product benefits and quality clearly prioritized over price.  All of these elements combine to reinforce Sephora’s image as a trusted advisor and provider of exclusive, top-tier products and the latest cosmetic innovations help them to make great revenue even at hard recession times.

CH3 Ethics and Social Responsibility

            CH 3 Ethics and Social Responsibility
       

 Sephora is a very social open company. The way they target their customers and the way they expand their company. It possible to find Sephora's stores almost all over the globe. Company's policy is to anti discrimanate in race,gender, religion,age, sexual orientation etc.It does not matter where you was born or what gender you are. You are welcome to Sephora as a customer or  employee. Even the way this company promotetheir product in magazines, billboards, facebook, twitter etc Sephora do not cater to one look.
  Visiting sephora's retail stores you can see employees there very divese, you can see male or female consultants very different ages ethnic backrounds and even hear different languages. No matter where those people came from , but all of them came for the same reason to provide good customer service and make Sephora better To make sure that work place at their best Sephora Company update ethics codes every
 few months.They try to do it to make sure that employees has clear understanding of how to make their customers happy and build long lasting relations with them- make them regular. Sephora started to make their poll services to make sure that they have a clear picture of customer needs and the best way to meet customers needs.Their strategy of providing ethic codes gave positive result : 
- new Sephora's stores keep open-up,
- more and more customers go to Sephora,
- more and more people get hired at sephora,
 

 Sephora does not discriminate no one and works with everyone.
  

CH2 Marketing Strategy vs Sephora

One of the key to be successful is to keep up with time, fashion,innovations. Sephora's marketing team familiar with this rule. They concentrate on mobile, and have targeted social media strategies for YouTube, Instagram, Twitter, and Facebook. This beauty retailer has social, mobile, and even digital programs in-store firing on all cylinders.

Sephora’s optimized social site is very dynamic. User can find reviews, how-to videos, inspirational beauty boards, and a forum dedicated to "BeautyTalk", etc. Another exciting tool to reach the socially-connected and digitally-sophisticated consumer is YouTube channel which has well-over 10 million views alone. Most recently, Sephora integrated “Pin It” buttons on all of their web and mobile product page to allow for quick and easy sharing on Pinterest to compliment the editorial-inspired content on their boards. It will be interesting to watch how this socially-driven site redesign will impact customer experience, loyalty, and conversion.

Here is three main keys of marketing success from Johnna Marcus, Director, Mobile and Digital Store Marketing at Sephora:  

Marry customer service and social media to find success.  

Sephora dedicates staff to answer questions and address customer’s concerns. Perhaps the key to such a complimentary yet differentiated social strategy across all of the key platforms is that their team has dedicated staff including marketing pros, beauty experts, and customer service staff on hand. On Instragram specifically, Sephora gives their customers and fans a glimpse "Inside Sephora". Behind the scenes snapshots, how-to’s, and authentic customer experiences are all captured as visual stories. It’s no wonder that there are more than 33,000 followers to date (and counting.)

Embrace mobile to bring the in-store experience right to your customers hands. Powerful numbers on the use of mobile devices and the engagement with their brand on those devices. About 50% of Sephora's clients open their emails on mobile devices; there have been millions of downloads of Sephora’s apps to date; and mobile sales had a 300% increase in 2011. To reach their mobile-savvy customer base, Sephora made stunning additions to their app and mobile website to include information of nearly two million product ratings and reviews, added a critical find in store button, and created wishlists for customers to mark things they want to see in-person at their stores. And their tips for making all of this possible? Design for mobile first and focus on utility and usability, and target your messaging for the optimal usage times on smartphone and tablets. When customers have apps as part of their shopping tools, retailers can begin to start fully owning the in-store experience with self-created content and enhanced customer service to foster even more loyalty.

Sephora’s site redesign, social strategies, and mobile programs didn’t come to life overnight. It took years of planning – and through their hard work Sephora’s team has brought a personalized, social shopping experience to customers in a way that has bridged the gap between all shopping channels. And while we have always known Sephora for giving us beautiful products and makeovers, we’re excited to showcase them as one of our leading examples of a retailer that has had their site (literally) undergo one of the most beautiful makeovers of all: The makeover of the future of shopping, as we know it.

CH1 Successful Beauty

                                                   

Chapter 1. Brief History about one 

of the most successful 

retail brand Sephora

   

   Sephora was founded in France in 1969 and acquired by Paris-based conglomerate LVMH in 1997. The Sephora is a chain of cosmetic stores includes more than 750 stores in 21 countries. It carries over 250 brands of items that include makeup, skin care, fragrance, bath, hair products, hair tools, and beauty accessories, including Sephora’s own private label
     

Dominique Mandonnaud opened the first Sephora store in Limoges in 1979. Her new conception of the store, that was based on the possibility of looking,  touching and discovering for the client, customers are allowed to compare different products to feel the different sensations they arouse. The new concept of store is really seducing and in 1979 Mandonnaud opened 10 new selling stores with “Shop8″ sign.

 In 1988 one store was opened in Paris. In 1993 the 11 perfumeries “Shop8″, already present in the country, added to the 38 Sephora stores, managed by the british society “Boots” opened in France by that moment. To open the dream’s and the luxury’s doors to everyone; a dream called “Mille et un Perfume” located in Bellè-Epin, a luxurious, chic and sober dream. Sephora brand imposed successful in 1994. 

The first Sephora store was opened in the year 1997 at New York. Marketing branches of this store were situated in New York City. San Francisco was the North American headquarters of this brand.

Sephora was highly appreciated by its buyers due to its policy of life-time return of products in case of customer dissatisfaction. In addition, the sampling program offered by the store for the customer to try out a variety of new cosmetic products became quite popular.

Some strategies of the successful beauty supplier 

Symbol of cheerfulness, freedom and elegance, Sephora is also the name of Moses’s second wife in the biblical tradition: a young and beautiful woman, who was clever, brave, generous and free as well. These attributes were highly aligned to the values of freedom, creativity and modernity spread by all Sephora stores.

Sephora has given itself a make-over. One of them a social and the other one is a mobile makeover. Sephora’s website now features an entirely new personalized online experience, mobile website, iPhone app and iOS devices in more than 100 stores. Sephora is also one of the first retail brands to fully integrate with Pinterest, adding “Pin It” buttons to every product and brand page.