Etude de cas: l'entreprise Sephora (document en anglais)

COMPANY OVERVIEW

Sephora is a French-based chain of stores specializing in cosmetics, fragrances, and personal care items. While the company was initially founded in 1969,1 Sephora first entered the U.S. market in 1998 and has since experienced exponential growth.2 Currently, Sephora owns over 1,000 stores, 300 of which are located in the United States. Additionally, the company operates 150 “store-in-store” locations within JC Penneys. The brand is currently in the growth phase of the life cycle, reporting revenues of $378.4M during the 2010 fiscal year.3

Alongside high-profile brands such as Christian Dior, Marc Jacobs, and Fendi, Sephora is owned by Moët Hennessy ▪ Louis Vuitton. According to the LVMH website, Sephora aims to “express the most refined qualities of Western ‘Art de Vivre.4’” Correspondingly, the company is committed to offering its customers products and services of excellence. Sephora’s dedication to glamour is evident throughout every aspect of the company’s concept. In fact, even its namesake exemplifies the ideal of beauty. According to the company website, the name Sephora is a blend of “sephos”, which is the Greek term for pretty, and “Zipporah”, who was Moses’ exceptionally beautiful wife in the Bible.5

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SWOT ANALYSIS

Strengths

One of Sephora’s key strengths is its self-service approach to cosmetics. Those who go to Sephora are able to test as many products as they would like at their leisure. This is quite different from the approach used by both department and drug stores. For example, when a customer wishes to test cosmetics within a high-end department store, they must first ask the sales associate for assistance. Consequently, shoppers may feel obligated to buy a product after being helped. The associate may even pressure the buyer into purchasing something they do not truly want, leading to cognitive dissonance. At Sephora, customers are able to freely experiment with products while still having the option to speak with an expert if they choose. Additionally, the self-service model is superior to drug stores’ approach, in which customers do not have the ability to test the makeup at all. In this respect, Sephora truly offers the best of both worlds by allowing patrons to take the guess work out of buying cosmetics while in a comfortable and relaxed environment.

Another strong point that sets Sephora apart from its competitors is its ability to track customers’ buying habits. The company employs several different methods through which it collects a variety of data. Through tracking its website and loyalty card, Sephora is able to record each brand a customer patronizes. The company then uses this information to target specific campaigns and promotions to certain consumers, increasing the effectiveness of its marketing strategy.

The range of products carried has also added to Sephora’s success. Known for offering high-quality products at multiple price points, the company is able to target several different income demographics. The competitive performance of the company’s private label brand, the

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