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Marketing Plan 2010

Barbara Denoy Pascale Duong Steven Van Der Lugt

More

than 750 stores in 21 countries

Founded Carries

in France in 1969

over 250 brands online shop in 1999 available in 9

Launched

countries

The most important issue for Sephora is the economic issue because they need to focus on their profits due to the crisis. Sephoras market is the cosmetic and perfume market (22% share of market) :
United States China Europe

Direct competitors

Indirect competitors
Supermarkets

Future competitors
Pharmacy

(an increase of 5% since 10 years)

Murale

(Canada, Pharmaprix)

Sephora's target market is very big: - women of almost all ages - wealthy - budget conscious. The sales staff are low-key, no-pressure, people who are only there when you need them. They want to create an environment without pressure and believe that customers will come back because they found what they needed.

Brand ( Product )

The priorities for Sephora are to invest in the brand and to communicate to the target audiences in order to increase loyalty levels. Product : Sephora has their own products with their own name. Promotion : Sephora uses direct marketing with their free loyalty card. They also use mailings and stands in shop.

Advertising ( Promotion )

Distribution channels

Pricing

Strengths
Advertising Brands reputation Product quality Suppliers Own products with their own name Internationalization USP Sales points: well-be, beauty ESP

Weaknesses
Difficulties of adaptation in foreign countries (for example : Japan) Self service does not comply with the luxury image Sephora does not have a strategy to avoid the competitors.

Opportunities
New trends New products Niche brand

Threats
Lots of competition Economic crisis Real estate crisis Particular lifestyle, habits Entry barriers on the perfume market: we need lots of money

A= Sephora B= Marionaud C= Beauty succes D= Douglass

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In 2010 Sephora will focus on market development strategy: selling the same product to a new group. Sephora would like to increase the demand by promoting their existing offer to new segment.

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In 2010 Sephoras marketing mix will be focused on the advertising with a big campaign. Sephora should create a new atmosphere in their shop: new decoration (more masculine) and salesmen.

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Their market share consists of mostly women and they would like to increase market share for male products : Men of 20 until 30 A dynamic and attractive target group Need to take care of themselves Sociological influence New conception of the beauty It is no longer only for women. It is not only a trend but a real need.

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Strengths
Own products with their own name

Weaknesses

Opportunities

Price

Threats

Internationaliza tion Suppliers

Self service different from the luxury image

A= Sephora B= Marionaud C= Beauty succes D= Douglass

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Age

Transaction / hours

Panier moyen

Transaction / Day

Open days

Men 1 40 euros 8 6

20 to 30

Transaction per day: 8 Transaction per week: 48 (8x6) Transaction per month: 192 (48x4) Contribution for the next year: 12 x 192 x 40 = 92 160 92 160 is an estimate revenue of the project.

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We decide to collaborate, in first, with Lacoste because we think that it can complete our offer.
But we can also have a partnership with Azzaro (perfume market), or Raph Lauren (clothes market) and GQ magazine (press market).

We advise to continue its system of loyalty card because we notice that it is a pertinent (good) way for secure the fidelity of clients. Moreover, this is in relation with our challenge.

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Even if we decided to develop a new market, we will create a new product with Lacoste to promote our new segmentation (men, age 20 to 30). Product : - Toilet bag which can contain one perfume, lotions and creams. - Sales places : only on the Sephoras shop and Lacostes shop. - Price : about 20 more than perfumeprice.

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Objective : promote our new product to men between 20 to 30 years old. For that we decide to promote by 2 ways : First : Advertising : Media : hoarding (billboard) in street with men When : before the Christmas period Message : that men can take care of themselves also, without being seen as effeminate. Secondly : Public Relation : organize open day with presents (toilet bag), specimen and presence of football star. Press release and press conference. Sponsoring for sports events and invitation to cocktail. For increase the sales of men products, we decide to make the shops atmosphere more masculine with more salesmen.

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What is the activity? Advertising

Who?

From when? December, 1st

To when? January the 4th.

How much? 15000

Comments

Noemie

Public Relation

Paul

December

January

13000

Open Day, Conference, Sponsoring

Marketing budget

28000

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We used 40% of assumption budget of 2.6 : 36.864.

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- Meeting on Tuesday every 2 weeks - Control budget and check expenditures - Campaign is the most important - Consultant, accountant and loyal customer.

- Survey - Well-selected loyal customers - External firm to set up the survey

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Jan.

April

July

Oct.

Dec.

Important dates for our new market are : Fathers day ( Mostly third Sunday of June ) Christmas period ( 18 26 dec ) National festivities where people give presents ( e.g Sinterklaas in Holland, 5th of December ) Market leader Check on spending and budget Where can I buy male beauty products? Sephora

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