Marketing help

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Fashion in Technology and Retail

Professor Jennifer Lezan

Final Project

By Jeimy M. Jimenez

About Sephora

Sephora is a leader in global prestige retail, teaching and inspiring clients to play in a world of beauty. Owned by LVMH Moët Hennessy Louis Vuitton, the world's leading luxury goods group, Sephora has earned its reputation as a beauty trailblazer with its expertise, innovation, and entrepreneurial spirit.

At Sephora, beauty is in our DNA. Our revolutionary beauty-retail concept, founded in France by Dominique Mandonnaud in 1970, is defined by its unique, open-sell environment with an ever-increasing assortment of products from carefully curated brands, featuring indie darlings, emerging favorites, trusted classics, and Sephora’s own, SEPHORA COLLECTION. Today, Sephora is not only the leading retailer of perfume and cosmetics stores in France, but also a powerful beauty presence in countries around the world thanks to its unparalleled assortment of prestige products in every category, unbiased service from experts, interactive shopping environment, and innovation.

Sephora believes every stroke, swipe and dab reveals possibility, and we share our client’s love for the confidence that our products, services, and expertise brings to their life every day. In every store, clients unlock their beauty potential at our Beauty, Skincare and Fragrance Studios through intuitive technology and guidance from the most knowledgeable and professional team of product consultants in the beauty industry.

Sephora stores – Sephora operates approximately 2,300 stores in 33 countries worldwide, with an expanding base of over 430 stores across the Americas. Sephora opened its first U.S. store in New York’s Soho neighborhood in 1998, and its first Canadian store in Toronto in 2004. The Sephora Americas headquarters and Innovation Lab are located in San Francisco, with corporate offices in New York, Mexico City, Montreal, Toronto and São Paolo.

Sephora.com - Launched in the U.S. in 1999 and Canada in 2003, the foremost prestige beauty site on the Internet is also Sephora's largest North American store and is where clients can engage with an inclusive beauty community on our award-winning Beauty Board, and interactive Beauty Talk.

Sephora mobile – Obsessed with teaching and inspiring clients to play in a world of beauty, Sephora has pioneered the use of mobile in beauty, creating groundbreaking content on its intuitive Sephora app and on social media to bring Sephora’s expertise to our clients whenever and wherever they want.

Beauty Insider - In 2007, Sephora launched a client loyalty program to feed their addiction to beauty with unique rewards and experiences. The Beauty Insider program is available in Sephora stores nationwide and at www.sephora.com. In 2009, Sephora launched V.I.B. [Very Important Beauty Insider], and in 2013, added VIB Rouge, two premium levels for Beauty Insiders that give clients access to even more exclusive gifts, event invitations, and early access to select products.

Sephora Stands – Sephora encourages bold choices in beauty – and in life with the purpose of inspiring fearlessness. Launched in 2016, Sephora Stands social impact programs utilize our strengths to promote even greater good by supporting female entrepreneurs in beauty via Sephora Accelerate, our communities via Classes for Confidence and our people via Sephora Stands Together.

Sephora Innovation Lab – Sephora has always had innovation at the core of its DNA. Opened in 2015 in San Francisco’s Dogpatch district, the Innovation Lab was a natural progression of Sephora’s client centric, continual ideation and innovation. Responsible for groundbreaking tools like Sephora Virtual Artist, fun ways to play with beauty like Sephojis emoticons, opening new lines of client communication with chatbots, as well as fostering creative talent across the entire organization through their unique Think Tank program and Hackatons, the Innovation Lab aims to aid clients in easily navigating the beauty world to find the right products.

Sephora PRO – The Sephora PRO Team is an elite group of makeup artists handpicked for their superior skill, unprecedented creativity and ability to inspire through education. The Sephora PRO artists are among the industry's most knowledgeable in beauty expertise and application, lending their aptitude and know-how to product ideation and development, sharing beauty education tips on Sephora’s social channels, speaking on behalf of the retailer to media, and applying their industry prowess at a variety of national and local client events. Each Sephora PRO artist is a permanent appointee and based in a specific region, broadening their influence across the Americas.

Sephora inside JCPenney – A 10-year partnership with the nation’s largest apparel and home furnishings retailer, Sephora inside JCPenney stores are situated in the center of the store and feature the signature Sephora look and experience in a smaller footprint, in over 590 locations across the U.S. (Sephora, 2017)

My Chosen Online Fashion Retailer

The Online retailer of my choice is going to be Sephora I chose this company because it has a strong business presence and a strong reputation online as well as with its brick and mortar stores as well; not to mention it's one of my favorite cosmetic stores to shop in. Not only do they offer name brand cosmetics as well has as its product line, but Sephora also offers skin products, fragrance, nail care, and hair products as well.

Identify the Marketing Mix

Product: Products are a little higher priced than those you would find in a drug store. The Concept behind this is that they are quality products that are also backed up by the name of the brand

Place: Strong reputation online as well as with its brick and mortar stores. Sephora is also strategically placed in the middle of department stores for customer visibility and product placement

Promotion: Sephora uses the reward tactic; it is an excellent way to get Sephora's target market to engage in your online efforts. It's a great way to retrieve valuable information that can assist in reaching a broader audience and understanding your consumer, as well as helping create loyalty to the brand

Product-related questions

What new products has this retailer designed or developed in the last three to five years?

Products in Sephora are constantly being introduced and evolving. Sephora is always adding new products to their stores as well as new products from their line. For example, their expansion of male products for hair, skin, and fragrances

Price-related questions: What are the pricing strategies for these new products?

Products are a little higher priced than those you would find in a drug store. The Concept behind this is that they are quality products that are also backed up by the name of the brands.

The retailer uses a combination of different selling strategies: Internet sales, word of mouth, and brick and mortar stores

What media is used to promote these new products?

I would say social media would be the primary promotion vehicle for Sephora

• Cite the retailer's web page (or, if imaginary, the web pages that you referenced to create your retailer).

  • http://www.sephora.com

• Are you able to purchase directly from the web page?

  • Yes

• Does it link to social media sites?

  • Yes

What Benefits Does Having a Website give the Particular Retailer?

The site gives Sephora more visibility as well as the option for the customer to shop in the comfort of their own home. The customer can view important details of the products and also recommendations of other similar products based on search criteria and patterns of shopping.

Identify the Target Market: Who are its customers?

Sephora's general target market is higher-income women, but the stores are cleverly designed to break down the target market into smaller segments. Sephora tries to appeal to women who value quality and are willing to pay for it

Sephora also caters to other customers that include tweens, teenagers, and men. Sections of the store fronts are brightly colored to appeal to this market while other sections dedicated to men are more decorated more modestly. This target market is more geared towards contemporary women and men who have an interest in fashion and are fashion forward. They have a compelling interest in beauty and enjoy having products that help them maintain a youthful look as well as looking and feeling their best.

Age: 18-55

Location: Throughout the United States in 29 countries with an expanding

Gender: Women and men

Income level: High disposable income

Education level: College educated

Marital or family status: Single or career oriented married couples

Market Segmentation

The market segmentation will happen geographically, demographically, behaviorally, as well as psychographic segmentation. Geographic segmentation will separate the market into various geographical areas. The demographic segmentation will separate the market into demographic indicators such as education level, gender, age, and income. Psychographic segmentation will separate the market into lifestyle and belief. On the other hand, behavioral segmentation separates the market into buying and shopping behaviors. Customer relations management will be applied based on the best criterion that suits any markets segment as discussed above.

Marketing to the various segments is done through various methods or ways using the most appropriate technology. The first marketing platform is via online method, which may involve the creation of a website that will allow online placement. The second method involves the packaging of goods to appeal to various classes of people and gender. To this end, the products should be packaged to appeal to capture both genders in order to increase the market base. Additionally, the packaging should be such that the high and low income earners are catered for. Therefore, the products should be in such a way that they are differentiated in term of price to meet the demand of both the high and the low-income earners. Establishing a proper supply chain is essential to ensure that the market segments located away from the manufacturing are essentially supplied. This means that the meeting the shipping cost is crucial.

Creative use of technology is essential in amplifying, accelerating, and activating product promotion through various campaigns or the injection of fresh or new customer experiences. Technology is therefore a powerful tool to create awareness on the existence of a new product in the market. The use of technology creates experiences that excite the customers as well as engaging them. Creative technology draws the attention of the consumer, making theme delve deep into the new product, and get them hooked to ensure expanded base that pushes the business into greater sales heights due to aggressive and creative heights.

Supply Chain

The best supply chain is to adopt the contemporary western fashion model, which includes design, inventory, and sale to the final consumer. This implies that the designs are carried out via the company, which the n manufactures, keeps the inventory and ship to the final consumer when need arises. This model is relevant as it shares the commitment and the dedication throughout the value chain. In essence, when the customers place any order, the manufacturer or the designer will readily ship the meet the customer demands wherever they are. The key to the success of this model lies on the fact that delivery is first done to the nearest point of contact.

Technology

The use of technology enhances advertisement by creating awareness, constantly reminding the consumer of the existence of the product, and finally reaching out to new market segments. Advertisement is done through the various available media that include but not limited to the television, the social network, the radio, and the various many online platforms. Technology also enhances public relations. The use of technology ensures that many customers are reached, potential or rebound.

Improving communication is important making supply chain quite effective or efficient. This ensure that the impending logistical challenges are addressed by finding better solutions of handling them. Achieving this is pegged on effective training of the team to adapt to the uses of new technology or upcoming invention s in the field.

Market Segmentation

The market segmentation will happen geographically, demographically, behaviorally, as well as psychographic segmentation. Geographic segmentation will separate the market into various geographical areas. The demographic segmentation will divide the market into demographic indicators such as education level, gender, age, and income. Psychographic segmentation will separate the market into lifestyle and belief. On the other hand, behavioral segmentation separates the market into buying and shopping behaviors. Customer relations management will be applied based on the best criterion that suits any markets segment as discussed above.

Marketing to the various segments is done through different methods or ways using the most appropriate technology. The first marketing platform is via online method, which may involve the creation of a website that will allow online placement. The second approach includes the packaging of goods to appeal to various classes of people and gender. To this end, the products should be packaged to appeal to capture both sexes to increase the market base. Additionally, the packaging should be such that the high and low-income earners are catered to. Therefore, the products should be in such a way that they are differentiated in term of price to meet the demand of both the high and the low-income earners. Establishing a proper supply chain is essential to ensure that the market segments located away from the manufacturing are mainly provided. This means that the meeting the shipping cost is crucial.

Creative use of technology is essential in amplifying, accelerating, and activating product promotion through various campaigns or the injection of fresh or new customer experiences. Technology is, therefore, a powerful tool to create awareness on the existence of a new product in the market. The use of technology creates experiences that excite the customers as well as engaging them. Creative technology draws the attention of the consumer, making theme delve deep into the new product, and get them hooked to ensure expanded base that pushes the business into greater sales heights due to aggressive and creative heights.

Supply Chain

The best supply chain is to adopt the contemporary western fashion model, which includes design, inventory, and sale to the final consumer. This implies that the plans are carried out via the company, which then manufactures, keeps the inventory and ship to the ultimate consumer when the need arises. This model is relevant as it shares the commitment and the dedication throughout the value chain. In essence, when the customers place any order, the manufacturer or the designer will readily ship the meet the customer demands wherever they are. The key to the success of this model lies in the fact that delivery is first done to the nearest point of contact.

Technology

The use of technology enhances advertisement by creating awareness, always reminding the consumer of the existence of the product, and finally reaching out to new market segments. The advertisement is done through the various available media that include but not limited to the television, the social network, the radio, and the various many online platforms. Technology also enhances public relations. The use of technology ensures that many customers are reached, potential or rebound.

Improving communication is important making supply chain entirely effective or efficient. This ensures that the impending logistical challenges are addressed by finding better solutions for handling them. Achieving this is pegged on the active training of the team to adapt to the uses of new technology or upcoming inventions in the field.

Identify the Supply Chain for the Business: What role has the technology played in the logistics of this supply chain? How will the technology play a role in this situation?

The fast-growing world in every field of life need to have the industry developed through the supply chain management. As in case of the product chosen named as Sephora; the fashion industry. This is a cosmetics product that requires a challenging role in the market. The fashion industry is growing more rapidly in the new era of the fashion where there is need to develop a supply chain structure to provide each and every product the line to reach the customer. Supply chain has a focus on the consumer and provides the techniques that how the business could be enhanced and developed nationally and internationally with a view to handle the product more tactfully. For the firm the growing need is to handle the supply of the product through the help of the information technology where the data could be integrated easily and internal improvements of the company management for the supply chain (Inda and et al, 2014). The company is using different methods to control supply chain management such as the data base management system help. This software provides help to control the inventory and label the manufacturing and the finishing of the product and also its supply t end user. This system helped to maintain the relevant data of the company and the company products. Global market could be handled easily with the help f this system where the relative information of each and everything, inventory and even the client is saved and could be accessed easily any time (Singh, 2002). The need to have the quality relationship and the information is resolved through this about the supply chain management.

Identify and describe the elements of the promotional mix: How has the technology enhanced or hindered each element?

There are five different tools or instruments for the provision of the supply chain management system. These five instruments used for this purpose are relation with the customer, relation with the people whom we work with or the investor, information sharing method, relationship with the customer and the internal or institutional performance management. The growing needs of the competitive environment is to develop the healthy relation with the partner, investor as well as with the customer who are the end user from where the company earn. These multi-dimensional policies provide the basic structure to the performance meter where the need for the competitive business environment could be resolved. Supply chain performance is related to the internal and external resources building about the company and the company product (Zaim, et al, 2007). The supply chain management implications are a useful tool to get a beneficial production and the return of the product. In case if the company wants to increase the volume of its sales and return or should better take help from these strategies where the relation earning provides the best instrument. Joint ventures could be made so as to create and increase the supply chain of the product and the production (Obeida, 2014).

Explain how the element will or should be combined into an integrated marketing plan. Which media are utilized: Which media are being under or over utilized?

Global market has taken place drastically. The companies are expanding through the social media networking and the economies are getting closer to each other with every day passing. The supply chain management has helped us to create healthy relation with the outside world. Product quantity and quality are both enhanced through this as we learn more and better ways to earn the return on the products. There are more opportunities and markets through the logistics of the supply chain management. It has taken the economies closer and stronger than before through collaborating within the business structure and organizations are integrating their supply structures (Irfan And Raja, 2014). Conceptual framework provided for this purpose has helped to integrate globally and internal potential of the company could be fully utilized through developing new strategies by integration. The window model structure has helped to explain the supply chain markets and the strategies to analyze business more potentially (Agus, 2014).

What can be done to make the supply chain more efficient?

A systematic planning process is made for the quantitative measurement of the supply chain performance. Through a collaborating supply chain management system, the long and short run objectives of the management could be achieved. The market integrating policy and the market sharing method has helped to resolve this issue. For measuring the supply chain performance, we need to build better customer rationing and the improve supplier and customer relationships. These could be achieved with the help of market information sharing about the company and the company product line that differ with country and region (Ahmad, 2014). Strategic supplier partnerships are needed to organize the company internal structure to build long run relations with the supplier and the customer that has a significant impact on the company performance and management techniques.

How can technology help make the supply chain more effective and efficient?

In the supply chain performance measurement, the role of technology could not be ignored. The fast-growing economies and the business relations need to be integrated through the social networking and the internet. IT has helped us to stay in touch with the internal management as well as external market. The database management system is requiring to keep the large set of information about the company working. It has the complete record about the inventory, supplier, customer, investor, employee and others in a systematic way. Data analysis is used to have the identification of the data in an organization through placing logical groups. System analyst usually required to make flow charts through a conceptual framework. The development of the techniques and methods for the data analysis the organizations are using conventional methods to avoid complexities of data. The large forms are adopting these measures to control the manufacturing and the external networking with supplier, partner and the customer through this medium (Byrd & Davidson, 2003).

REFERENCES

Agus., A. 2014. Supply Chain Management: The Influence of SCM on Production Performance and Product Quality. Journal of Economics, Business and Management. Vol. 3, No. 11.

Ahmad, N.A., 2014. The Effect of Supply Chain Management Practices on Strategic Flexibility: Applied Study on the Jordanian Manufacturing Companies. European Journal of Business and Management, Vol.6, No.5.

Byrd, T. A., & Davidson, N. W. 2003. Examining possible antecedents of IT impact on the supply chain & its effect on firm performance. Information and Management, 41 (2), pp. 243-255.

Baral., R. And Krishanpriya, V. 2014. Supply Chain Integration- A Competency Based Perspective. International Journal of Managing Value and Supply Chain (UMVSC) Vol. 5, No. 3.

Irfan., M. And Raja, I. S. 2014. Levels and Barriers to Supply Chain Integration: A Conceptual Model Of Supply Chain Performance. International Conference of Business Management. Vol, 1, Issue 1. PP: 52-59.

Inda, S., Abu, B.H., Rohaizat, B., Rosman, M.Y., (2012). The Study of Supply Chain Management Strategy and Practices on Supply Chain Performance. International Conference on Asia Pacific Business Innovation & Technology Management, 40 (2012) 225 – 233.

Inda., S., and et al, 2014. A Study Of Supply Chain Management Practices: An Empirical Investigation on Consumer Goods Industry In Malaysia. International Journal Of Business And Social Science, Vol. 2 No. 17.

Obeid., B. 2014. The Impact of the Supply Chain Management Practices On Supply Chain Management Performance In Jordan: The Moderating Effects Of Competitive Intensity. International Business Research 7(3): 13-27.

Rao., S. S. And Et Al., 2006. The Impact of the Supply Chain Management Practices On The Competitive Advantage And Organizational Performance. Vol 34. PP: 107-124.

Singh., M. And Mahesh, S. R. 2002. Global Supply Chain Management In The Telecommunication Industry: The Role Of Information Technology In Integration Of Supply Chain Entities. Journal of Global Information Technology Management; 2002. 5, 2.

Zaim., Et Al, 2007. The Impact of the Supply Chain Management On Performance Of SMes. Emerald.

Zain., D. And Et Al, An Empirical Internal Perceptions Study Of The Implementation Supply Chain Management In Indonesian Manufacturing Companies As A Mediating Factor of Information Technology Utilization To Organization Performances. European Journal of Business and Management. ISSN: 2222-1905 (Paper) ISSN: 2222-2839. Vol. 5, No. 16.

About Us. (n.d.). Retrieved June 25, 2017, from http://www.sephora.com/about-us