As was mentioned before, Sephora offers a loyalty program for their customers in order to keep them loyal to the company. However, other retailers have the same types of programs, which are meant to achieve the same goal. Ulta Beauty gets most of their revenues through the loyalty programs. “Over 80 percent of our sales go through our ULTAmate Rewards loyalty program, and we’ve got 15 million members. (From its entire loyalty efforts), sales per loyalty member increased about six percent in 2014, driven by both higher purchase frequency and higher spend per transaction” (MacArthur, 2015). Since Sephora and Ulta are direct competitors, they sell exactly the same products, same brands and at the same price. So, the question arises: why do some customers prefer one royalty program over another? Sephora’s VIB program gives the customer 1 point for every dollar spent, but so does ULTAmate program. Most of the people choose Sephora’s program simply because of the environment. Sephora stores give customers a feeling of being special and valued. Store design has a royal vibe, which …show more content…
Sephora is working on one of the biggest complaint customers had: lack of ethnic diversity in Sephora Collection products. The company is coming up with more products that will fit all of the skin tones and undertones. Also, several years ago, Sephora’s main target market was wealthy women from 30 to 50 years of age. However, with growth of YouTube and teenagers growing up faster than ever, Sephora should consider targeting girls and women. By expanding their market, they will be able to produce more revenue. Men’s skin and hair care, fragrance products should be available in all of the Sephora locations. It will increase sales, especially during holiday seasons, when people are searching for presents. If customers will be able to purchase gifts for different genders and ages at the same store, they will be more attracted to that particular
The company then began to broad their inventory, making it more suitable for adolescents to also shop in their retail by adding more classic styles and occasion dresses.
They also provide exclusive products that are only available through Ulta. Great Customer Loyalty - Ulta has a ULTAmate Rewards loyalty program in which they have fifteen million active members. These loyal customers provide more than 80% of their total net sales. Weaknesses The weakness portion of this analysis gives attention to things that should change in order to enhance the overall operations of Ulta. Taking a closer look at things that may be hindering the overall sales and potential for further growth.
The transition to modern consumerism involved not just the introduction of responsible product formulation, but fundamental transformations of social behavior. Women were at the heart of this development in the cosmetic industry, and we will consider the contributions of two of them: Annie Turnbo Malone and Madame C. J. Walker. These women and their contemporaries paved the way for Estee Lauder and Mary Kay Ash in our time.
Locations average 10,000 square feet, and are a major hub for all things beauty, including cosmetics and unique salon products and services. The company claims its store layouts and wide array of merchandise and full service salons separate itself from online retailers like Amazon and generalist retailers like Target and Walmart. By snagging market share from competition, Ulta has been able to attract a new and highly lucrative demographic. Teenagers have been increasingly shopping in stores and are attracted to some of the new indie and trendy lines of beauty products. As Ulta keeps up with the latest styles, teenagers will continue to flock to stores.
I would suggest that they incorporate more diversity in their ads and campaigns to reach different ethnicities if they want to continue to expand. Also, in stores, particularly the Willow Grove, PA location, is very large and spacious. Upon entering the store it is primarily women’s apparel and accessories, as well as men’s. Maybe the company can incorporate more of its products in this location, to provide consumers with more of a product assortment.
Increase Sales thru product offerings of appliances, Sephora beauty products, and Plus size boutiques. Facilities to be refreshed in 350 locations and rollout same day pick up on internet sales. General Merchandise sales improvement by 10 to 20 bps thru private brand penetration, supply chain improvements, pricing and clearance options. Expense reduction will result by controlling costs, marketing, process improvements and promoting private label credit card usage. The ultimate goal is to reach $1billion in EBITDA by end of year January
In light of an evolving market, faced with new competitors, and after a careful analysis of their current customers, the Vanguard Group (hereinafter referred to as “Vanguard”) realizes it must rethink its entire marketing strategy. However, in order to protect and leverage their competitive advantage, which is their low management fees, and to optimize the loyalty that their customers continuously demonstrate toward their organization, they must now target the most profitable segment for them, and develop the best way to serve and delight these customers.
The most significant weakness for Belle Couleur would be the undifferentiated product that will be introduced to the Dutch market. Although the number of shades of hair color will be reduced to accommodate the limited retail shelf space, the colors offered will not be reformulated to cater to Dutch preferences. The colors available to the Dutch market will be those that have been specifically formulated for the French market. The problem lies in the differences in color preferences of the Dutch and French women. While the French prefer darker and conservative colors, the Dutch preferences lie at the opposite end of the color spectrum, preferring lighter shades. The market research indicated that buying intentions of the Dutch women decreased after the test-use because the color ¡§didn¡¦t cover gray¡¨ or ¡§was too dark¡¨. Moreover, competing local and international brands in the hair colorant market formulate their products to Dutch market preferences.
The principles of marketing (The Times 100, n.d) are a range of processes concerned with finding out what consumers want, and providing it for them. This involves the ‘4ps’ of marketing; price, place, product and promotion. The product decision in any company involves dealing with goods that should be offered to a group of customers (Jobber & Ellis-Chadwick, 2012). Burberry maintains a product line with great width and scope in which their products fall into two main categories; fashion or continuity. Their fashion products are designed to be responsive to fashion trends and are introduced on a collection to collection basis (Burberry, n.d). Continuity products however have life cycles that are expected to last for a certain time period. Burberry also has 3 primary collections; womenswear, menswear and accessories, with the variety of products they can utilize their product mix greatly. Burberry also has...
Sephora has started its digital presence in the year 1999 with the launch of its website, “Sephora.com” and pioneered in the digital and beauty retail business. With around 3 million visitors per month to its website, Sephora has not put a single step wrong in its marketing strategy. The introduction of Sephora Beauty Insider program in 2007 followed by the Customer Relationship Management programs, the number of online customers have been exploded in multi-fold across Sephora’s online channels. Although Sephora was known for its in-store experience, the shear increase in the number of customers on its online portals had almost blacked out the online system in the holiday season of 2014. This led many of its Asian loyal customers
...rs since the reward is tangible. Since 80 percent of profit comes from a small percentage of customers, programs should be developed to retain them. Companies will use resources that aren’t available to the entire customer base to ensure they are retaining their most valuable customers and offering incentives to encourage others to move up.
Due to the incredible strength of L 'Oreal 's brand, the company has been able to utilize market penetration on an annual basis by creating an association between L 'Oreal and Christmas or Mother 's Day, Dad 's Day. By offering boxes composed of a multitude of products and promotion, the company allows to introduce its products to its customers or consumers. It offers them several products in the kit so that they can buy them later. Also, she must support the product through innovation and communication with to continue to stand out from the
Makeup has many different purposes, and large companies like Sephora, divide these makeup products into different categories that concern individual needs. Cosmetic stores like Sephora have specific products for different types of skin. Some for oily, dry, combination, acne prone, or scarred skin. Hundreds of makeup brands specifically design their cosmetics to fulfill the needs of their clients, and a huge need in the world today deals with
Dior uses different market segmentations to sell their product. First of all, there is a geographic segmentation. Perfumes are luxury products. Thus, they target wealthier areas like North America, Western Europe, Japan, etc. Since Dior is popular worldwide, we can obviously find it everywhere, but their market is based on these areas’ needs. Then, they use demographic segmentation. They target adult women who have quite high incomes. Perfumes are something not everybody can afford. This fragrance can be worn for any occasion, special as well as regular; it is light but demonstrates personality and feminity. They are trying to get a medium to strong loyalty status. As for any perfume, if a woman likes it; she will probably buy it again. It is a very accessible product. Any store like Macy’s, Nordstrom or Sephora in North America or “perfumeries” in Western Europe will sell J’adore. The segment is very large, because many people, even if they do not fall in one category, will buy perfumes for special occasions, like Christmas. This is a gift that always makes a woman happy, and Dior develops its marketing around that. Indeed, during Christmas, they make a lot of offers that combines a lotion with the perfume for example. Also, there are no separate segments between women; all women want to wear perfume.
Chiang, C.-T., & Yu, W.-C. (2010). Research of Female Consumer Behavior in Cosmetics Market Case Study of Female Consumers in Hsinchu Area Taiwan. iBusiness, 2, 348-353.