Marketing Plan Barbara Denoy Pascale Duong Steven Van Der Lugt
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1 Marketing Plan 2010 Barbara Denoy Pascale Duong Steven Van Der Lugt 1
2 2
3 More than 750 stores in 21 countries Founded in France in 1969 Carries over 250 brands Launched online shop in 1999 available in 9 countries 3
4 The most important issue for Sephora is the economic issue because they need to focus on their profits due to the crisis. Sephora s market is the cosmetic and perfume market (22% share of market) : United States China Europe 4
5 Direct competitors Indirect competitors Supermarkets Future competitors Pharmacy (an increase of 5% since 10 years) Murale (Canada, Pharmaprix) 5
6 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. 6
7 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. Advertising ( Promotion ) 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. Distribution channels Pricing 7
8 Strengths Advertising Brand s reputation Product quality Suppliers Own products with their own name Internationalization USP Sales points: well-be, beauty ESP Opportunities New trends New products Niche brand 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. Threats Lots of competition Economic crisis Real estate crisis Particular lifestyle, habits Entry barriers on the perfume market: we need lots of money 8
9 A= Sephora B= Marionaud C= Beauty succes D= Douglass 9
10 10
11 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. 11
12 In 2010 Sephora s 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. 12
13 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. 13
14 Strengths Weaknesses Opportunities Threats Own products with their own name Internationaliza tion Suppliers Price Self service different from the luxury image A= Sephora B= Marionaud C= Beauty succes D= Douglass 14
15 Age Transaction / hours Panier moyen Transaction / Day Open days Men 1 40 euros 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 = is an estimate revenue of the project. 15
16 16
17 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. 17
18 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 Sephora s shop and Lacoste s shop. - Price : about 20 more than perfume price. 18
19 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 shop s atmosphere more masculine with more salesmen. 19
20 What is the activity? Who? From when? To when? How much? Comments Advertising Noemie December, 1st January the 4th Public Relation Marketing budget Paul December January Open Day, Conference, Sponsoring 20
21 We used 40% of assumption budget of 2.6 :
22 22
23 - 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 23
24 * *---*--- Jan. April July Oct. Dec. Important dates for our new market are : Fathers day ( Mostly third Sunday of June ) Christmas period ( dec ) National festivities where people give presents ( e.g Sinterklaas in Holland, 5 th of December ) Market leader Check on spending and budget Where can I buy male beauty products? Sephora 24
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