Free marketing plan sample by marketing plan now: www.marketingplannow.com. A plan of a cosmetic retailer, Sephora France (LVMH group) - a new service

2. Sephora Body Care Centers
Marketing Plan 2011

3. Table of Contents
• Part One : STRATEGIC PLANNING
1. Analysis of the Current Situation
2. Achievable Marketing Objectives
• Part Two : ACTION PLAN
3. Yearly Action Plan & Marketing Budget
4. Control Procedures & Criteria of Success

5. Profile of the Company
• TYPE : Division of Holding Company
LVMH
• INDUSTRY : Consumer Goods
• FOUNDATION : 1969 by Deeba
Abrishamchi
• HEADQUARTERS : Paris, France
• PRODUCTS : Cosmetics & Beauty
• PARENT : LVMH – Louis Vuitton Moët
Hennessy S.A.
• WEBSITE : www.sephora.com

6. 1.1. Macro environmental analysis
• Political Environment legislation for the
health of the nation and the quality of products
and services
• Social Environment Changes in social
trend, lifestyle; the population has been ageing
and demand for cosmetic products and services
has increased, norms and values: to be beautiful;
1

7. 1.2. Market Analysis
 Substitutes
 See
 Natural products,
 Cosmetics and fragrances sold in retail stores Appendice
1.2
 Barriers of entry
 Image of a brand internationally known,
 Organization and logistics,
 Width of ranges,
 Marketing force of the existing companies
 Bargaining power of suppliers
 Suppliers need Sephora to sell their products and touch the target
market they aim at, they have to sell at the same price
everywhere
 Bargaining power of customer
 The customer has a stronger bargaining power than the suppliers,
since they can decide to buy what they need at the competitor„s
2

8. 1.3. Direct and indirect competitive
analysis
 INDIRECT COMPETITION
 Qualitative competitors: Drugstores, supermarkets, Reserve
Naturelle
 DIRECT COMPETITION
 Marionnaud, Nocibé, Douglas, Yves Rocher
 For more details, see Appendice 1.3
1.4. Market Segmentation
 First, Sephora‟s target is women between 18 to 60 years old,
belonging to a middle class (monthly wage from around 1200€ to
2200€) or upper middle classes (2200€ to 3200€).
 Sephora‟s second target is men between 20 and 55 years old,
belonging to both classes.
3

9. 1.5 Marketing Mix
• Our actual marketing-mix is composed of:
 30% of the offer mix: Sephora proposes a complete range of products
 35% of brands: products sold at Sephora belong to famous and well
known brands
 15% of service quality: salespersons follow customers in their choice
 15% of physical attributes: good product quality
 5% price: prices fixed by beauty stores are quite the same
• Our actual promotion-mix is composed of:
 60% of Direct Marketing
 30% of Advertising
 10% of Public Relations
 For More Details, see Appendice 1.5
4

10. 1.6 SWOT
• Sephora is located downtown Troyes where there
are a lot of competitors .
• New trends on the market, but competition seeks
for the same goals.
 For more details, see Appendice 1.6
5

11. 1.7 Positioning
• USP:
- Diversification of products
- Own brand products
- Customer services quality
- Store presentation
- Packaging
-Atmosphere
• Sephora’s main competitors: Marionnaud, Nocibé, Douglas
• Sephora‟s best perceptual map is the one including the
diversification of the products and the own brand products. This
means that Sephora is the leader on those two points.
 Fore more details, see Appendices 1.7
6

12. 1.8 Sources of Information
• QUESTIONNAIRE
• See appendice « Questionnaire »
• COMPANY’S WEBSITE
• http://www.sephora.com
• WEB
• http://en.wikipedia.org/wiki/Sephora
• http://www.drive-management.com
• http://www.les-horaires.fr/enseignes
7

13. 2.1 Marketing Strategy
• Next year, Sephora is going to launch the project of a body
care center in Troyes. The Spa will provide massaging and
waxing services.
2.2 Desired Marketing Segmentation
• The first market is women living in Troyes and the suburbs,
between 18 and 45 years old, and who belong to the middle
class or the upper middle class.
• The second market chosen for the new service is men living
in Troyes and its suburbs, aged between 20 and 45,
belonging to the upper middle class.
8

14. 2.3 Desired Marketing-Mix
• Next year, we will improve both price and quality of service of 5%.
• We will put all our efforts on public relations to improve it of 10%,
organizing an opening event and others.
 For more details, see Appendices 2.3
2.4 Marketing Objectives - SWOT
•The Beauty market is influenced by new trends and Sephora can
offer such treatments. For that, it may:
 Attract costumers of main competitor Yves Rocher.
 Set up a “satisfied or refunded” policy to reassure clients.
• If this project doesn‟t work, it might be hard on Sephora‟s finances.
 For more details, see Appendice 2.4
9

15. 2.5 Positioning
• The best situation for Sephora is the one mixing «own brand
products» USP and « diversification of products » USP. Next
year, we will improve both of them. To do this, we have to
invest money on developing Sephora‟s own brand products.
 For more details, see Appendice 2.5
2.6 Yearly Sales Forecast
• Combining the two kinds of services proposed, we evaluate the
yearly sales forecast at 435 240€. To reach this result, Sephora
would have to fill every single day, with appointments.
 For more details, see Appendice 2.6
10

16. 3.1 Main Cooperative Bodies
(1+1 > 2)
• We have decided to cooperate with Yves Rocher :
– Shops in the same area
– Sephora transports a luxury image (famous brands)
– Yves Rocher has a family and biological spirit.
• Combine our strategies to attract new costumers
– New model that Yves Rocher will support through its experience in
natural products.
– We will increase their revenues by offering their natural products
– Cooperation will be detailed on Sephora‟s Homepage.
11

17. 3.2 Retaining Marketing Activities
• Sephora should continue :
– Selling its own brand of makeup and body care lines, to keep
its advantage on competitors
– Focusing on seasonal promotion (Christmas, Mother‟s Day…)
– Giving samples to customers
– Its advertising campaigns (through website, posters…)
3.3 Developing New Offer
• We could start the project by :
• offering massages and waxing
• building 2 rooms for treatments
• keeping the same schedule as for the shop (10 a.m. to 7 p.m.)
• hiring professionals beauty therapists (and train beauty
counselors at the shop if we break even)
• middle range price (40 € for a 30 min. massage)
• promote through posters, website, newsletters
12

18. 3.4 Marketing Promotion (7 P‟s)
– Free gifts
– Point of sales materials
– Information points
– Loyalty cards
– Word of mouth
– Magazines / Newspapers
– Social Networks
– E-mail
– Special Offers & Competitions
 For more details, see Appendice 3.4
13

19. 3.5 Enhancing Service Marketing Principles
(3 P‟s)
• Employees: Sephora could first hire professionals to come to the
Spa and perform the massaging according to the registered
appointments.
When services are developed, Sephora could use trained
employees. They should however wear the Sephora uniform.
• Location: The Spa could take place in two rooms, at the back of
the actual store. One room for massaging and another for waxing.
3.6 GANTT Scheme
 See Appendice 3.6
3.7 Marketing Yearly Budget
 See Appendice 3.7
14

20. 4.1 Control Bodies
• Meetings between Marketing Manager and regional
managers every 3 months, regarding marketing action
plans.
4.2 Control Tools
1. Surveys would be conducted to study the level of
customer satisfaction. It can be oral or by filling
questionaires in the stores.
2. Sales promotion activities
3. Store managers have to submit monthly reports to the
regional manager .
4.3 Control by Milestones
 Special offers in weekends.
 Launching of new products in weekends.
15

21. APPENDIXES

22. Appendix 1.2
•
Barriers
Estimated to
of entry
0,3
Bargainin
Bargaining g power •
power of the of Estimated to 0,2
customer suppliers
• Estimated to 0,4
Substitutes
• Estimated to
0,1

23. Appendix 1.3
Critical Success
Marrionaud’s Nocibé’s
Factors of Sephora
Diversification of Less salespersons,
Warm atmosphere,
products, + own freedom of the
colors
production customer
Quick payment, not
Customer Service +
More samples given much time to wait at
samples
the cash register
Products/store Advantages with
Quality of products
presentation membership
Product packaging Slightly lower price Bio products
Products sometimes
Atmosphere/ smell less expensive

24. Appendix 1.5
Quality of
services Offer
15 % Mix Brands
Physical 30 %
attributes 35 %
15 %
Price
5%
ADVERTISING
DIRECT
MARKETING
30 %
60 % PUBLIC
RELATIONS
10 %

25. Appendix 1.6
• Shop situated in Downtown Troyes
Strenght • Eye catching decoration and lighting
• Products in self service
• Once there were two Sephora shops in Troyes –
the other one had a high clientele that sought for
Weakness advice.
• Since it closed, the high clientele goes to
Marionnaud
• New trends : men, organic, black skin tones
Opportunity • People spend a lot into cosmetics (250 € / year /
person)
• Very hard concurrence (Marionnaud, Nocibé,
Threat Douglas), similar products and pricing
• Numerous regulations (Environment and Health)

26. Appendix 1.7
Atmosphere Customer Service
quality
D
S S
D
Packaging
Store
N Presentation
M
M N
Douglas Nocibé Marionnaud Sephora

27. Appendix 1.7
Own Brand Products
S
D
N This perceptual map is the
best for Sephora.
Diversification of products
M
Douglas Nocibé Marionnaud Sephora

28. Appendice 2.3
Quality of
+5%
services
Offer Adaptation
15 % Brands
Mix of the
Physical 30 % marketing
attributes 35 % mix
15 %
Price +5%
5%
Quality of Offer Brands
services Mix
New
20 % 25 % 30 %
marketing-
mix
Physical
Price attributes
10 % 15 %

29. Appendix 2.3
ADVERTISING ADVERTISING
DIRECT 30 % DIRECT 25 %
MARKETING MARKETING
60 % 55 %
PUBLIC
RELATIONS
PUBLIC
RELATIONS
10 % 20 %

30. Appendix 2.4
STRENGHT WEAKNESS
O into S: Nowadays beauty care W into O: Sephora has
is influenced by new trends (men, never provided such
pregnant women, organic services before and could
treatments). Sephora could offer be considered as novice.
OPPORTUNITY such treatments to its potential Maybe it would reassure
clients (massage with only organic its clients if Sephora put in
products). a « satisfy or your money
back » policy.
T into S: Yves Rocher is a W into T: As said before,
recognized Beauty Center in Sephora is new on the
Troyes and main concurrent of Beauty Care Centers
Sephora. If we have an market and if it is not
THREAT appropriate eye-catching efficient and enough
decoration and people pass by the competitive, it could go
Shop going to Yves Rocher across bankrupt.
the street, we could attract more
customers. Group ESC Troyes 30

31. Appendix 2.5
Own Brand Products
Next year we will
move from to
D
N
Diversification of Products
M

32. Appendix 2.6
• Massage
• 30 minutes: 40€
• 2 massages per hour, opened from 10am to 7pm
• 18 massages per days: 720€ per day. 540x6=4 320 per week
• 3240x52= 224 640 € per year
• Waxing
• Face 20 minutes: 15 € : 405€ per day : 2 430€ per week
126 360€ per year
• Legs 30 minutes: 30 € : 540€ per day: 3 240€ per week
168 480€ per year
• Bikini 15 minutes: 30 € : 1080€ per day : 6 480€ per week
336 960€ per year
 It is impossible to perform several waxing services at the same time.
The yearly sales forecast is thus impossible to plan in a exact way.
Actually, we can forecast an average result of 210 600 € per year.
• Total Yearly sales Forecast: 224 640 + 210 600 = 435 240 €

33. Appendix 3.4
• Free gifts – a free 15 minutes-face-massage when contracting more than 2 another services
• Point of sales materials – posters, displaying stands in the store – present the product/service to the customer
• Info points – we will present our new service with experts and trained staff so that customers can get information
• Loyalty cards – a customer fills up a card and is rewarded with a free treatment.
• Word of mouth - the best form of advertising because 70% of consumers trust peer recommendations and only 18%
trust advertisements. Flyers distribution to get recommendations – to get a positive effect on the business. Encourage
people to talk about us.
• Magazines / Newspapers – they are effective - magazine advertising would be better value for money. Younger
people of our market – through magazines. AIM : raise our sales by 10 % within 6 months.
“Lower television advertising in exchange for magazine advertising and to keep within the same budget, whilst
increasing exposure”
• Social networks – are one of the best opportunities on the Internet - Facebook users provide information such as
their age, gender, location and interests. Target our ads directly to the demographic we want to reach.
• E-mail - we will also use our email marketing list – people who have expressed interest in knowing when we offer new
services. We have segmented our email list so that we can send appropriate emails to media and our customers.
• Special Offers & Competitions
we offer our customers free « beauty tips » after the massage therapy to attract their attention - this special offer can
convince unsure customers to make a purchase.

34. Appendix 3.6
When ?
How
What ? Who ? Comment
much ?
Start Finish
A week Assistant of
Sales Mothers‟ after manager in
See 3.4
Promotion day father‟s collaboration
day with head office
3 weeks A week
before after Marketing team
Advertising starting fathers‟ of head office
See 3.4
date day
3 weeks A week
Public before after Marketing team
See 3.4
Relations starting fathers‟ of head office
date day

35. Appendix 3.7
Resources in % Expenses in %
Loan 70 Promotion: 25
Free gifts
1+1>2 5 Point of sales materials
Info points
30
Loyality cards
Equity 20
Advertising:
Word of mouth
Interest Income 5
Magazins / Newspapers
15
Facebook
E-mail
15
Special Offers
15
Marketing Research:
Analyst fees
Publich Relations:
PR campaign support
Non allocatd funds:
Total budget € 100,000 100,000

36. Questionnaire (Translated to English)
1. What is your role within Sephora-Troyes?
2. What do you think about adding a body-care service in the store?
3. Do you think it would suit the company‟s vision?
4. Why could it be an advantage for the shop?
5. How could the company promote this new line of services?
6. According to you, how could Sephora compete with companis like Yves
Rocher, already providing waxing and massaging?
7. How much do you think customers would be ready to pay for a 30-minutes-
massage?
8. Would you be ready to receive a professional training to perform massaging
and/or waxing?
9. How long have you been working in Sephora-Troyes?
10. Could Sephora develop and add a line of massaging products ot its own brand
products ?