1. Sephora Julie Smith, RJ Sohler, Hanh Nguyen June 5, 2006

2. Background Founded in France in 1969 by Paris-based LVMH Moët Hennessy Louis Vuitton 515 stores in 14 countries worldwide 126 stores across North America. First U.S. store in New York in 1998, First Canadian store in Toronto in 2004 Sephora.com - Launched in the U.S. in 1999 and Canada in 2003

3. Mission Statement To build the most knowledgeable and professional team of product consultants in the beauty industry, Sephora developed "Science of Sephora."

4. Washington Square Location Only store in Oregon Opened November 18, 2005 Store placement based on online orders  Mostly from this zip code Employees construct layout of each store

5. Strengths Samples of everything Variety of products www.sephora.com Well-trained and educated staff  Blended and committed training  Not brand loyal  Non-commission based  Zone experts: skincare, fragrance, cosmetics (color) Honor price adjustments Prices listed on display shelves

6. Strengths Product Differentiation  New: black band  Testers: red band (try me) Free Consultations/ make-over Lighting, mirrors Two entrances: mall & street Not big beige box- distinctive architecture Window displays change with new product launch High-end brands (Chanel, Dior, D & G, Burberry, Armani)

7. Weaknesses Merging with JC Penney Never offer gift with purchase Display lighting in gondola melts testers Unsanitary testers Window display designed by corp. Shrinkage

8. Opportunities Started in big “trendier” cities, now trickling down to smaller cities 30 stores per year every year Store opening in Downtown Portland Summer 2007 Merging with JC Penney within a year Oprah & other celebrities  Jessica Simpson & Courtney Cox Men

9. Threats MAC Store opening in Bridgeport Village Other make up retailers  Nordstrom  Meier & Frank  Victoria’s Secret  Bath & Body Works/ Body Shop Personal selling (Avon/ Mary Kay)

10. References Von- Sephora Specialist www.sephora.com www.maccosmetics.com www.distrijob.fr/enseignes/sephora_photo.jpg www.smartweb.fr/.../Client/sephora/sephora.jpg http://karen.deadsquid.com/gallery/albums/paris/IMG_1126_sm_Se phora.sized.jpg http://karen.deadsquid.com/gallery/albums/paris/IMG_1126_sm_Se phora.sized.jpg www.fragrancex.com/.../sku/full/03958580914.jpg