Abstract

Sephorais an international cosmetics collection company located internationally and in different countries. Company has been serving many customers and thus holds highest market share among competitors.

The competitors of the company are highly diverse such as all small and large cosmetics selling departmental stores are considered as Sephora’s competitors. Moreover, new entrants in the industry are increasing their competition.

Company has been making its presence more dominating by using social media platforms and keywords searching. Moreover, different marketingtactics has been used by the company in order to increase its presence in the mind of customers and Sephorawould be the bet name in search of beauty and other makeupproducts. These tactics includes Video and pictures competition among consumers, rewarding gifts, distributing free samples in online deliveries, strong communication between management and customers through Facebook and twitter and online chat with beauty expert’s recommendation for different consumers. All these tactics helped the company to reach dominating position in the customers and industry.

Company has been planning yo increase its marketing budget from last year and spending about $2 million on its marketing expense. Therefore, an appropriate strategy is required to the company which would facilitate company with highest number of benefit and low cost implication.

Keywords: Sephora, Cosmetics Industry, Marketing

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Introduction

Sephora Company was initiated in 1969 as a perfume shop in France. By acquiring a British perfume chain company, Sephora grew its range of perfumes. Slowly and gradually, in 1998, company expanded internationally and initiated its first store in New York City. Apart from range of perfumes, Sephora expanded its product line and step into cosmetics business. Sephora sells cosmetics of different brands as well as its own developed cosmetics items related to skin care, hair care andmake up.

Sephora holds highest market share in the cosmetics industry of United States, which summed up to approximately 8% of total industry. Being market leader, company was facing tough competition from different stores such as departmental stores as well as single selling items store. ULTA beauty was the closest competitor of the company. However, ULTA was known as a fast follower of Sephora.

In order to remain strong in the market, company wasplaying different marketing strategies. These strategies includes online search advertising such as Google AdWords in which company has purchased important keywords related to beauty and cosmetics. Moreover, company has also used social media technology such as Facebookand twitter to have direct conversation with their customers. In order to avoid repetitionof questions of different customers, company has introduced chat box on its website, where customers could directly converse with beauty experts and could get guidelines from them.

Company has also developed mobile application for apple users on App store. So that it would be comfortable for the customers to make purchases from mobile rather than website. In addition, company has also engaged their potential customers in different competitions such as videoand photographs competitions so that they would have pleasant experience with the company................

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