Marketing: A Case Study Of Sephora's Marketing Mix

Sally Beauty Holdings, Inc. (SBH) is one of the largest international beauty supply retailer and distributors in the United States. Sally Beauty Holdings ranks as #643 on the list of Fortune 1000 Companies. According to Sally Beauty Holdings 2013 Annual Report, the company has $3.6 billion in revenue and $261 billion in net earnings. The company operates under two segments, Sally Beauty Supply and Beauty Systems Group. Both segments make up a combined total of 4,669 stores under the Sally Beauty Holdings conglomerate. One of the company’s biggest challenges with their B2C stores is to capture a younger demographic and increase online traffic. Their online marketing has been lackluster to say the least. In a highly competitive industry, SBH has some serious work to do to retain their current market while attracting a much young target group. For this analysis, the primary focus will be on the Sally Beauty Supply retail chain, since it makes up a large part of SBH’s revenue and net earnings.

You are the marketing manager for a chain of home-ware stores in Brisbane called Houzit. The marketing plan for the 15 Houzit stores was developed over 12 months ago and you are actively engaged in implementing the strategies to achieve the marketing objectives. Specifically, you are instigating those marketing activities that meet the marketing objectives of a 12% market share (up from 11%) and an increase in sales by 8.5% over last year’s result. No expansion stores are planned during this phase of consolidation and on average the stores achieved $24,680 per week for the year.

In many peoples’ lives makeup is step in their daily routine. Many people use makeup to boost their confidence and enhance their natural beauty. However, many makeup advertisements place an emphasis on people looking their best in order to sell products, which isn’t necessarily bad. Covergirl and Revlon are two makeup brands that use many tactics to appeal to consumers

Think about a time where you needed to return an item but did not have the receipt. You decide to return it anyway. The store associate tells you no, and is in no way recanting their answer. How did that make you feel? Now, imagine being able to return that item years later without the receipt. How would that make you feel? Well, that is the culture of Nordstrom. In 1901 John W. Nordstrom established the company’s philosophy “ offer the customer the best possible service, selection, quality, and value” (Nelson and Quick, 2015, p. 508). Nordstrom’s emphasis on customer service is what sets them apart from any other fashion specialty chain. Given their strict focused, one could consider how they handle conflict.

Ulta Beauty’s stores and website both offer more than 20,000 products from over 500 brands, according to the company’s 2015 annual report (p. 2). Ulta Beauty also offers in-store salon services, something not typically offered by competing retail stores. In addition, the company has shown a deep commitment to its customers, 18 million of which the company claims are active members of its loyalty rewards program (Ulta Beauty, 2016 p.

Consequently, Nike’s pricing is intended to be economical and competitive to the other sport gear retailers. The pricing is built upon many factors that have been taken into consideration before setting a selling price on the root of the high-class segment as target customers. Nike as a brand orders high premiums. Nike’s pricing strategy makes use of perpendicular amalgamation in pricing in which they target participants with different channel levels or take part in more than one type of channel level operations. This can govern costs and effect product

Revlon faces stiff competition from existing cosmetic entities like Estee Lauder and L’Oréal which acquire larger market share along with sustainable competitive edge by innovation (Kumar, et al., 2006). Besides, many luxury brands like Chanel and Dior nowadays join the competition also, launching beauty products. Therefore, Revlon needs constant innovation for survival in the market.

Fashion and leather goods have very high product differentiation. Companies need to focus on customer demand

These tools mostly used for spreading the awarenes of the new products, enhancing the recall of the brand but mostly for increasing the number of sales as the company needs profits to survive in the long term. The report have deeply looked at the communication tools in practice when the creative strategy for the new Cadbury product was set. The paper analysed in what situation it is better to use advertising, PR or direct marketing for the Cadbury brand, therefore the advantages and disadvantages of the tools were found. For example, it has been identified that advertising is one of the useful tool for brand promotion because it is able to reach a wider audience within the shortest possible time frame (Egan, 2007. P 194). The message appeals are also important as it will highly influence the attatude of the viewer and affect the buying decision. However, the company should take under the consideration the importance of the relationships marketing, therefore the direct marketing tools such as mobile marketing can be used to get more personal effect with the consumer. The online social networking is a create tool that is able to encourage the consumers to engage with the brand, especially when the target audience is the youth because they are the highest users of the Internet. However, in order to achieve the maximum success the companies must integrate the

Marketing mix is a set of controllable marketing tactics used by business to promote their product and achieve its marketing objectives. (L. Lake, 15 June 2017)

People can reach nowadays more information about the products and services that they are intending to buy. Consumers can either search for marketer-generated information or the information generated by other consumers. In addition, both consumers and marketers can post visual instruments via the Internet, such as images and videos. On the one hand, this is a great opportunity for marketers to release their products and services in a cost-effective way; and, on the other hand, this gives consumers an opportunity to get visually-supported information which will, in turn, help them to make better decisions. Furthermore, the Internet provides a convenient way for marketers and consumers to communicate with one another. While consumers can contact the companies at any time through their official websites, thanks to social media, companies are now able to contact the consumers at any time. This opportunity for communication can be advantageous for both consumers and marketers; for instance, consumers can announce their demands and grievances or marketers can get consumers’ opinions about their new products before their release into the

Gabriell (Coco) Chanel founded her company in 1913 in Paris, France. The main profile of the company at the beginnings was fashion design by Chanel herself from 1910 to 1971. She was a real innovator on the market. After her death Karl Lagerfeld became his successor, currently he is the mastermind behind the world-famous, top-selling luxury brand. Chanel soon expanded the product range and started to design luxury hats, clothes, fragrances, accessories and cosmetics. The ideology behind the brand is elegancy, beauty and self-respect of women; Chanel has a parallelism with personal identity embedded into luxury. This is illustrated by the current slogan of N˚5

Fendi was started after Edoardo and Adele Fendi married, they open a boutique that sold leather good and fur workshop. It is the post-war period, which the middle class trying all sorts of ways to recover. Because of the historical and the background the shop is an immediate achievement (Fashion, 2013).

According to Amin & Noor (2013), the E-consumers generally refer to the purchaser of goods and services over electronic systems such as Internet and other computer networks. This new group of consumers is increasing in number over the years as on-line shopping become a trend and manifestation of modern life style.Based from the Paynter & Lim (2001), E-commerce would provide consumers with benefits such as interactive communications, fast delivery, and more customization that would only be available for consumers through online shopping. Product information in the Internet is more compact and it ranges from various sites. Users have more opportunity to choose and compare products they want to purchase or easily find and select specialized products. This kind of open market place would increase competition, provide benefit for industrial buyers as it will promote better quality and more variety of goods.

Nobody imagined technology would be incorporated in the business world and slowly replace the traditional set platform. Digital marketing strategies are the future of the marketing sector. Business owners are desperate to stand out from their competitors. The dental industry is crowded with numerous clinics. As a result, dermal fillers clinic owners should go an extra mile if they would like their brands to stand out. There is a trend where dermal filler clinics are reaching out to computer marketing companies to assist them with their marketing strategies. There are numerous reasons why people incorporate digital strategies in their campaigns. Here are some of them: