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e-Marketing (eBiz/MKTG 543) Web address: www.arvind.info Sephora – Some Notes Arvind Rangaswamy Web address: www.arvind.info email: arvindr@psu.edu November 7, 2016

Potential Objectives for Digital Initiatives at Sephora Increase share of wallet from online consumers (e.g. use recommendation engine, visualization tools, etc. to facilitate experimentation and product selection). Acquire new customers especially in areas not served by Sephora stores (i.e., get Beauty Insider members from online acquisition). Enhance customer relationships both online and offline by getting insights from what consumers do online. Reinforce brand image, i.e. use online medium to reinforce current brand image (e.g. fun, edgy, etc.). This is mainly an attempt to follow Sephora’s customers as they migrate more of their activities online. Become a destination site online for anything related to beauty (p. 11 of case). Should digital marketing substitute for, or complement traditional marketing at Sephora?

The 6M Framework Mission Markets (segments) Message Media Money Measurement

Sephora Consumer Decision Process Internal trigger (e.g., going on a date; important meeting) Replenishment (order online?) Impulse purchase (windows display) Catalogs, print ads, emails Facebook likes? ….. Post UGC Post tweets Post Youtube videos Facebook likes Post Purchase Behaviors Inform Others Advocate Others buy Beauty Care Decision Process Need Recognition Post-purchase Experience Search for Ideas and Offerings (Consideration) Enjoy shopping and trying new stuff (at store) Search engine (paid ads) Watch Youtube videos Follow tweets.. Look for UGC (e.g., reviews, Beauty Talk) … Purchase Decision . Perks Cast member recommendation Discounts Points Samples …. Evaluate Alternatives Experiment and learn Get makeover from cast member Product displays at store UGC (ratings/reviews) ….

Source: McKinsey Global Institute, Digital America Report, December 2015

Source: McKinsey & Company Global Media Report, September 2015