Chapter 5 AssignmentLISA MARTINEZ

Product and Stores

The Product I choose is makeup

The stores I have used in this example are ULTA and Sephora

ULTA

Retail Market

Fashion forward young women who are looking for good quality beauty products at a reasonable budget friendly price.

Competitive Advantages

Wide array of products in a brick and mortar location that are sold for a reasonable price. Their main competitive advantage is their price point.

Relationship with their customers?

They have a rewards card but are generally uninvolved with their customers once in store.

Are they customer loyal?

I would say yes, although they are not as encompassing of this concept as Sephora is.

Sephora

Retail Market

Fashion forward young women who take an active interest in all things related to high quality beauty products.

Competitive Advantage

Average to high amount of high quality makeup products offered in a brick and mortar location. Specialists are there to help you with all your makeup needs. Their main competitive advantage is their quality and commitment to service.

Relationship with their customers?

They have an extremely lucrative rewards program and are highly involved with their customer in store.

Are they customer loyal?

Yes, according to the textbook definition of customer loyalty.