Ch. 10 - Product Concepts

Sephora is a combination distribution channel for other people's products and a marketing machine for their own specialized product line.  The way they price their own line below the other products they sell allows them to actually use their competition to sell their own product line while also making money off distributing the competition. In looking at their strategy, you could say that Sephoras' own product is a "convenience product". 


Sephora offers a diverse product line covering 5 major categories: makeup, brushes, tools and accessories, bath and body, skincare.  There are more than 9 items in any given  product line. For example , in the makeup category they offer products for the face, cheeks, lips, nails, and eyes with many offerings under each subcategory.  Some products such as makeup brushes & applicators can be found both in the "makeup category" and under "brushes" on the website giving users multiple ways to find or stumble upon what they are looking for when browsing the site. 


Sephora uses their well known store name to brand their products. Their name identifies a product with their company name which is protected by trademark. Makeup bearing the Sephora name can only be found in Sephora stores, lending an air of exclusivity to the experience of shopping at Sephora. However, their nail polish is available almost anywhere, even in the most common of New York supermarkets.


Sephoras' global brand:   


In Asia, their product line takes on more of a local focus:  how to make Asian people's skin look natural, whiter and healthier. Whitening Night Moisturizer is one of the products featured in the Asian market. 


In Europe，their product focus is on perfume and makeup. They sell lots of American brand perfumes. I think for upper class Europeans, they love to explore American perfume. It is expensive, but they perceive it as special and exotic.  Not everyone can have it. Sephora features lots of their own brand name  makeup as well on their European website. For makeup, their price is generally in the middle range compared to other brands.

Ch. 18 - Sales Promotion and Personal Selling

Sales promotion is marketing communication activities other than: advertising, personal selling, and public relations, in which a short term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value.

Sephora posted on their website Free shipping over $50, same day delivery in Manhattan, and 3 free samples with every order.

Sephora always posts their products online as a big package sale for customers. They offer a package which they claim has a value of $180, but customers are told they only have to pay $75. An example is given in the photo below:

( Most of customers feel like this is a great deal.  They believe they get to pay less and get more for their money even if the package includes additional items the customer may not really want. However, for the Sephora stores, it would appear they didn't make lots of money, but they get to bring in lots of customers to their stores and build customer loyalty with promotions like these.)

November and December have a lot of holidays coming. The Sephora offered Makeup Studio Blockbuster is valued at $440 and now is just $49.50:

And for Sephora's loyal customers, they get the special offers below:

1. They offer free birthday gift.  
2. On Sephora's member card, each time when you make a purchase, points accumulate. Once enough points are earned, consumers get to choose a free gift.

Sephora's selling style is personalized.  Inside every store, they offer knowledgeable staff who, not only sell products to customers, but can also serve as advisers to them. Walk into any Sephora store anywhere in the world and you will have this same experience. The selling strategy is to let every customers feel comfortable  and build a trusting relationship with the customer. This will make the customer feel more likely to shop at a  Sephora store, because when they are shopping at Sephora, they get not only good service, but also a knowledgeable staff to help them.

Ch. 17 - Advertising and Public Relations

Advertising is an important parts of marketing. A good advertising campaign could change consumers' attitudes form negative to positive. Most of the big companies spent billions of dollars on their product advertising hoping to increase sales to the highest level yet.

Sephora is one of the biggest cosmetics company. They have been featured in many different magazines, outdoor media and on the internet.  Some examples of Sephora marketing and advertising strategies  include:

• Herworld, Sephora launches nail art how to series on Herworld's Magazine.
• In The Independent magazine
1. Sephora introduced their in store nail bars. 

2. Beauty events during Fashion's Night Out in New York, Sephora is shown having fashion's night at 4 different locations. 

• Sephora on iTunes and also you could buy any product form your iPhone. 

• Sephora has many different facebook pages in many different countries: 

1. Sephora - Facebook Page for Malaysia
2. Sephora - Facebook Page for Singapore
3. Sephora - Facebook Page for Japan
4. Sephora - Main Fan Page

• Sephora launched a member card and they will send adds to their members targeting them to buy their products. Each time, when they make a purchase, they will accumulate points. Once enough points accumulate, consumers earn free gifts.  

Ch. 15 - Retailing

Sephora USA cosmetic retail chain store is owned and operated by Moët Hennessy Louis Vuitton (LVMH). The Sephora chain includes more than 750 stores in 17 countries. There are 16 retailing stores in the New York City area. The stores offer knowledgeable staff who, not only sell products to customers, but can also serve as advisers to them. Each store carries over 250 brands including Sephora's own private label. It is very convenient for customers to find what they are looking for all in one place. Their online store is accessible worldwide and easy to use.  You can easily search by brand, price and/or  category. Each retail outlet is a mix of: product, place promotion, presentation, and personnel. Sephora is a successful chain specialty retailer.

I visited two stores at 76th st. Broadway and W34th st. near by Macy's to see for myself. When I walked inside the store, I could instantly smell a mix of perfumes. From what I could see and smell, I felt like there are so many beauty items. They organize their store from makeup to skin care, body works and make-up tools. This is their marketing strategy too.  Customers have to walk all the way inside to find basic skin care products. When they pass the makeup section, they might stop and take a look at these products. Customers could try all of their sample products. Customers feel free to try all different brands of cosmetics before making their decision. Staff are very helpful.  I asked them about what brand face wash is good for my skin-mix and they introduced 4 different brands of face wash and they tried each one on the back of my hand to show me the difference. Staff also provide invaluable feedback and information to the customer about the different brands the customer is considering. Personnel do not hovered over you; they will ask you if you need help and if you said "no thanks" to them, they won't bother you again.

Overall, Sephora stores give you a convenient and helpful shopping experience. That's why they are successful.

Ch. 6 - Consumer Decision Making

As a marketer, we should know about:

• consumer's behavior 
• types of consumer buying decisions
• cultural factors that affect consumer buying decisions
• social factors that affect consumer buying decisions
• individual factors that affect consumer buying decisions 
• the psychological factors that affect consumer buying decisions

First, the consumer decision-making process shows the five stages below:

When people want to buy cosmetics, their  Information Search can utilize: TV adverting, magazines, newspapers, the internet, etc. In Sephora's store we can easily find cosmetics that are advertised by one or more of these methods. Sephora always follows the trends set by top fashion designers.  They provide one-stop shopping for makeup, skin care and beauty products and also carry over 250 brands and including their own private label, so it's easy for consumer to fulfill their Need Recognition requirements. 

Stores also offer knowledgeable staff who, not only sell products to customers, but can also serve as advisers to them. These personnel give valuable information to assist customers with their Evaluation of Alternatives. They offer customers free samples, and let the customers try these products before they buy them.  Whether they like this product or not, staff are trained to stay very patient with customers.  They will introduce more than three product brands, customers will evaluate these different products, and then make a purchase decision. Staff will also provide invaluable feedback and information to the customer about the different brands the customer is considering.  This will  help customers make the Purchase Decision.

Sephora is known for their lifetime return policy. If you purchase a particular brand and if a certain location does not carry that brand, they will still accept the product (originally purchased at a different location) under their return policy.  This will help customers feel more secure during the Purchase Evaluation phase. Either they are happy with the product, or they have alternatives to fix the problem. 

Sephora recognizes the important role that culture plays in consumer buying decisions. For example, in China, Sephora opened 23 retail stores and SEPHORA CHINA'S online store. They offer customers free shipping when they purchase online and during Chinese holidays. In Chinese culture, weddings are always a very big celebration involving the whole extended family for which families are willing to buy, buy, buy.  Sephora popularizes their Wedding product line on the internet for both the bridegroom and bride. 

So, how well are these strategies working?  As of 2010, the LMVH holding company had revenues of €20.3 billion with a net income of just over €3 billion.  LMVH includes Louis Vuitton and Sephora as well as a number of other related concerns.