Sephora Case Essay

Words: 934
Pages: 4

Case Analysis: Sephora Direct: Investing in Social Media, Video and Mobile
Track 1 – Due 2/19
Yubin Kwon / Barret England/ Tuesday 4:30PM

Company Background/ History and Growth
Started as a single perfume shop in France by Dominique Mandonnaud in 1969, Sephora was designed for customer to assist themselves with multiple brand products as Mandonnaud rebranded his combined set of stores. Mandonnaud expanded the chain throughout France and acquired 8% of total French retail perfume market and was purchased by LVMH, luxury product group, for $262 million in 1997.
Sephora expanded their market with cosmetic products under LNMH’s ownership and opened its first U.S store in New York City in 1998. But as they faced difficulty supplying
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U.S & Canada Sales: $2 billion (including II. E-Commerce sales: 15-20% of Sephora USA sales in 2010 III. Beauty Insider data base: $1 million, represents under 5% of total marketing budget IV. Current Facebook Fans: 4,722,510 V. Active Beauty Insiders: 9 million VI. Number of unique visitors to 3 million each month VII. How much is each Facebook fan worth?$3.60

2) Market Segmentation * Sephora is using term “client” instead of “customer” since their target market is younger, hipper customers than department stores. * Sephora’s target market in 2010 was women aging 25-35 years old. Teenage girls look up to this age and older women wants to look younger as 25-35 years old. * 25%