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Free marketing plan sample by marketing plan now: www.marketingplannow.com. A plan of a cosmetic retailer, Sephora France (LVMH group) - a new service
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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
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
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;
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1.2. Market Analysis
Substitutes Natural products, Cosmetics and fragrances sold in retail stores
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
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See Appendice
1.2
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
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€ to2200€) or upper middle classes (2200€ to 3200€). Sephora‟s second target is men between 20 and 55 years old,belonging to both classes.
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
1.6 SWOT
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• 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
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
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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
2.1 Marketing Strategy
• Next year, Sephora is going to launch the project of a bodycare center in Troyes. The Spa will provide massaging andwaxing services.
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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 middleclass or the upper middle class.
• The second market chosen for the new service is men livingin Troyes and its suburbs, aged between 20 and 45,belonging to the upper middle class.
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
9
•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
2.4 Marketing Objectives - SWOT
2.5 Positioning
• The best situation for Sephora is the one mixing «own brandproducts» USP and « diversification of products » USP. Nextyear, we will improve both of them. To do this, we have toinvest money on developing Sephora‟s own brand products.
For more details, see Appendice 2.5
10
• Combining the two kinds of services proposed, we evaluate theyearly sales forecast at 435 240€. To reach this result, Sephorawould have to fill every single day, with appointments.
For more details, see Appendice 2.6
2.6 Yearly Sales Forecast
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
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…)
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• 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
3.3 Developing New Offer
3.4 Marketing Promotion (7 P‟s)
– Free gifts
– Point of sales materials
– Information points
– Loyalty cards
– Word of mouth
– Magazines / Newspapers
– Social Networks
– Special Offers & Competitions
For more details, see Appendice 3.4
13
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.
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3.6 GANTT Scheme
See Appendice 3.6
3.7 Marketing Yearly Budget
See Appendice 3.7
4.3 Control by Milestones
• Meetings between Marketing Manager and regional managers every 3 months, regarding marketing action plans.
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4.1 Control Bodies
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 activities3. Store managers have to submit monthly reports to the
regional manager .
Special offers in weekends. Launching of new products in weekends.
APPENDIXES
Appendix 1.2
Barriers of entry
•Estimated to
0,3
Bargaining power
of suppliers
•Estimated to 0,2
Substitutes• Estimated to
0,1
Bargaining power of the
customer
• Estimated to 0,4
Critical SuccessFactors of Sephora
Marrionaud’s Nocibé’s
Diversification of products, + own
production
Less salespersons, freedom of the
customer
Warm atmosphere, colors
Customer Service + samples
More samples givenQuick payment, not much time to wait at
the cash register
Products/store presentation
Advantages withmembership
Quality of products
Product packaging Slightly lower price Bio products
Atmosphere/ smellProducts sometimes
less expensive
Appendix 1.3
Appendix 1.5
DIRECT MARKETING
60 %
ADVERTISING
30 %
PUBLIC RELATIONS
10 %
Quality of services
15 %
Physical attributes
15 %
Price5 %
Brands
35 %
OfferMix
30 %
Appendix 1.6
• Shop situated in Downtown Troyes
• Eye catching decoration and lighting
• Products in self serviceStrenght
•Once there were two Sephora shops in Troyes –the other one had a high clientele that sought for advice.
•Since it closed, the high clientele goes to Marionnaud
Weakness
•New trends : men, organic, black skin tones
•People spend a lot into cosmetics (250 € / year / person)
Opportunity
•Very hard concurrence (Marionnaud, Nocibé, Douglas), similar products and pricing
•Numerous regulations (Environment and Health)Threat
Appendix 1.7
Nocibé Marionnaud SephoraDouglas
Packaging
Atmosphere
S
D
N
M
Store Presentation
Customer Service quality
N
M
S
D
Appendix 1.7
Nocibé Marionnaud SephoraDouglas
Own Brand Products
Diversification of products
D
S
M
N This perceptual map is the best for Sephora.
Appendice 2.3
Quality of services15 %
Physical attributes
15 %
Price5 %
Brands
35 %
OfferMix
30 %
+ 5 %
+ 5 %
Quality of services20 %
Physical attributes
15 %Price10 %
Brands
30 %
OfferMix
25 %
Adaptation of the
marketing mix
New marketing-mix
Appendix 2.3
DIRECT MARKETING
60 %
ADVERTISING
30 %
PUBLIC RELATIONS
10 %
DIRECT MARKETING
55 %
ADVERTISING
25 %
PUBLIC RELATIONS
20 %
Appendix 2.4
Group ESC Troyes 30
STRENGHT WEAKNESS
OPPORTUNITY
O into S: Nowadays beauty care is influenced by new trends (men, pregnant women, organic treatments). Sephora could offer such treatments to its potential clients (massage with only organic products).
W into O: Sephora has never provided such services before and could be considered as novice. Maybe it would reassure its clients if Sephora put in a « satisfy or your money back » policy.
THREAT
T into S: Yves Rocher is a recognized Beauty Center in Troyes and main concurrent of Sephora. If we have an appropriate eye-catching decoration and people pass by the Shop going to Yves Rocher across the street, we could attract more customers.
W into T: As said before, Sephora is new on the Beauty Care Centers market and if it is not efficient and enough competitive, it could go bankrupt.
Appendix 2.5
Own Brand Products
Diversification of Products
D
M
N
Next year we will move from to
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 week126 360€ per year• Legs 30 minutes: 30 € : 540€ per day: 3 240€ per week168 480€ per year• Bikini 15 minutes: 30 € : 1080€ per day : 6 480€ per week336 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 €
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.
Appendix 3.6
What ?When ?
Who ?How
much ?Comment
Start Finish
Sales Promotion
Mothers‟ day
A week after
father‟s day
Assistant of manager in
collaborationwith head office
See 3.4
Advertising
3 weeks before starting
date
A week after
fathers‟ day
Marketing team of head office
See 3.4
Public Relations
3 weeks before starting
date
A week after
fathers‟ day
Marketing team of head office
See 3.4
Appendix 3.7
Resources in % Expenses in %
Loan
1 + 1 > 2
Equity
Interest Income
70
5
20
5
Promotion:
Free gifts
Point of sales materials
Info points
Loyality cards
Advertising:
Word of mouth
Magazins / Newspapers
Special Offers
Marketing Research:
Analyst fees
Publich Relations:
PR campaign support
Non allocatd funds:
25
30
15
15
15
Total budget € 100,000 100,000
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 YvesRocher, 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 massagingand/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 brandproducts ?
