Marketing Strategy For Sephora: Targeting Women Who Value Korean Beauty Products

Identifying the Target Market

A group assignment covering the decision-making process, level of purchase involvement, internal and external influences on buyer behaviour, leading to the identification and development of a marketing strategy. Groups should be 3 – 5 students. Students will be required to apply all the internal influences from the following list (perception, motivation, personality, and learning theories) and all the external influences from the following list (culture, status, demography, and group influence) to target and position a consumer product of their choice to a new target market. It is recommended the product have a core tangible component (if appropriate, an intangible service component as product augmentation is fine).

The report will apply the theoretical principles of influence to:

• Identify and profile the target market, providing analysis using segmentation methodology.

• Develop a detailed positioning strategy for the product in relation to the target market. Include reference as to how this contributes to an environmentally sustainable and ethical practice.

• Provide an analysis of the level of purchase involvement and how all of the internal and external influences affect the five-stage consumer decision-making process.

• Explain why this understanding of the selected target market will result in improved success if additional new products were launched to it. Note, description of theory is not sufficient – rather articulate and demonstrate application of the theory to the target market and strategies developed, and so provide critical analysis. 1. Each group will make a 10 - 15 minute presentation (maximum 15 minutes) of their buyer report to the rest of the class.

To provide a business context the presentation should be structured as if you are seeking understanding and support within your business. You should regard the rest of the class as stakeholders and you will be expected to take relevant questions from the floor to demonstrate the depth of understanding of your target market and positioning strategy. Appropriate visual and tangible aids should be utilised to support your presentation. All materials utilised are to be uploaded to the moodle. 2. Group Written Report. In addition to presenting the buyer report to the class each student is required to submit a copy of the written report for the product which has been completed by the group.

Your report should include:

• A cover page, which contains a report title, group name, list all group members and a word count.

• A one page executive summary on a separate page up front (included in word count). This should state all the key findings. It is designed to allow busy executives to be able to have a good understanding of the major issues without reading the whole report. Subject Guide: BUMAR202A Buyer Behaviour © TAFE NSW – Higher Education Page | 20

Product Positioning Strategy

• A table of contents.

• An introduction that introduces the purpose of the report, its scope and provides background.

• Your analysis as the body of the report.

• A conclusion (not a summary) that demonstrates the sustainable competitive advantage, and a recommendation. Written submissions should be a maximum of 3,000 words in length, professionally presented, with supporting visuals including diagrams, sketches, photos and other relevant illustrations. This report should also draw on theoretical readings in addition to the textbook, all referencing to be from credible sources. Harvard referencing is required. Provide a Bibliography as well as your List of References. The assessment is to be uploaded to the Turnitin section on the Moodle with a cover sheet.

3. As this is a group assessment each group member is required to submit a peer evaluation for each team member of the group for BOTH the presentation and written marketing plan. This is to be uploaded into the submission area of the Moodle in Week 12. Students should be aware that tutorial papers, essay, reports and journals will be submitted via the Turnitin software which picks up paraphrasing and plagiarism of all levels from a vast array of material including essays submitted at other institutions. Refer to the TAFE NSW Higher Education Academic Integrity and Honesty Procedure for further details. Refer to the ‘Turnitin Guidelines for Students’ on your subject Moodle for further information on using Turnitin software.

Grade Marking Criteria – Presentation High Distinction 85 – 100%

• Group members use an exceptional level of verbal and non-verbal skills to communicate with the audience in a highly effective manner

• The delivery demonstrates an excellent level of interactivity with the audience

• The presentation has an excellent structure that is completely clear throughout the whole delivery

• The group showed almost flawless evidence of team preparation, rehearsal and cohesion of all its members

• The members showed an excellent grasp of their subject matter in response to questions

• The group used multiple media in an excellent and innovative delivery mode Distinction 75 – 84%

• Group members use a high level of verbal and non-verbal skills to communicate with the audience in a highly effective manner.

• The delivery demonstrates an strong level of interactivity with the audience

• The presentation has a strong structure that is completely clear throughout almost the whole delivery

• The group showed a high level of evidence of team preparation, rehearsal and cohesion of all its members

• The members showed a strong grasp of their subject matter in response to questions

• The group used multiple media in a very strong and innovative delivery mode

Identifying the Target Market

Sephora has positioned themselves as a store that offers numerous types of beauty products including makeup, skincare, body, fragrance, nail colour, and haircare. The main purpose of this business report is to cover the decision-making process, level of purchase involvement, internal and external influences on consumer behaviour, and contributing to the identification and development of a marketing strategy. 

This report will also focus on many key points. For instance, identify the target market, product positioning strategy, the level of purchase involvement, all the internal influences from the perception, motivation, personality, and learning theories and all the external influences from culture that affect the five stage consumer decision making process, status demography and group influence in terms of to target a consumer product of their choice to a new target audience. In particular, women who value Korean products with reasonable prices and more choices of products. 

In addition, this report will explain the comprehension of the selected target audience that will result in enhanced success if a number of new products were launched to it.

1. Findings
2. Identify and Profile the Target Market. 

Sephora has positioned itself as a store that provides enormous types of skin care and beauty products. Therefore, Sephora's general target market is mainly woman who are appealed by beauty products with the high quality and various price from medium to high (Toribio 2013). In general, Sephora’s products are suitable for all women in the world but their brands mainly come from Western countries. It lacks the existence of famous Korean brands that provide natural and healthy beauty products. Actually,

some Western beauty products such as foundation, BB, and CC cream has differences in skin tone comparing to Asian people that lead to their hesitance to purchase those products. Therefore, Sephora should expand their new target market to women who value Korean products with reasonable prices and more choices of products. Some Korean brands can be listed including Etude House, Missha M, Skin Food, The Face Shop, Innisfree, Tony Moly and so on. 

In demographic segmentation, the new target market of Sephora falls in women and young girls aged from 15 to more than 50 and a small portion dedicated to the male audience. By providing new products from Korean brands, Sephora will attract the number of customers from different countries especially Asian women because of most lines of those products offering a range of colours that would suit all skin types/ colours. In addition, the old target of Sephora is towards to middle class to upper class demographics so its price remained relatively high with the purpose of narrowing the category of consumers who can afford the products. Meanwhile, Korean products have various prices from low to high and it will allow customers who have low income and students who study at high schools purchase products. 

Product Positioning Strategy

In geographic segmentation, the location of the store plays an important role in decision making to purchase products of customers. Sephora operates approximately 1,900 stores in 29 countries around the world, with an expanding base of over 200 stores across the Asia Pacific region including Australia, China, Singapore, Malaysia, Thailand, Indonesia and India (Sephora 2018). Each store is located on main streets that appeal a lot of customers including locals, tourists, and travellers on a daily basis.

As for psychographic segmentation, the division is depended on customers' lifestyle, personality, and social class (Dutta 2018). The main target market of Sephora focuses on trendy urban consumers who are keen on fashion, beauty, and concern on taking care of their appearance. Shopping at Sephora is really an interesting experience for each customer because it is not only simply pick out some items on the shelf but also allow consumers to try those products that they like in the store before making a decision.

The fact that nowadays people aim to maintain a healthy lifestyle and Korean products meet this demand of healthy lifestyle by providing products made from natural and organic ingredients such as green tea, aloe Vera, honey, and oil from several plants and fruits. Therefore, customers can use Korean cosmetic products without worrying about any chemicals contained in those products. Additionally, It depends on cultures' different standard of beauty because Korean makeup brands usually towards to natural and light makeup as looking like not utilize makeup products while the Western beauty market applies the heavy contour and matte style (Kim 2015). 

In behaviour segmentation, it relates to different groups based on occasions, benefits sought, user status, usage rate, loyalty status, readiness stage, customer’s knowledge and attitude towards products (Dutta 2018). Korean products are recommended to be used every day. For example, it is better to use the cleanser, body moisturizer, toner, serum, eye care and lip care products on a regular basis in order to gain best results. Almost Korean products are easy to use, have various advantages and are designed suitably for distinct kinds of skin. For example, Korean skincare product such as sunscreen is the key to maintaining youthful skin. Therefore, most Korean beauty products including foundations and BB creams contain a high SPF content (Collins 2017). Korean brands are well known worldwide due to its natural ingredients and core value. So it will be received consumers' belief to use and try other new products. 

2. Product Positioning Strategy

Internal and External Influences

Product positioning can be described as a marketing strategy that assists place a product perceptually in the minds of consumers (Acevedo, 2017). By emphasizing on cosmetic industry, mainly Sephora’s products, positioning typically requires creating differences between Sephora’s products or services and competitors' offerings.

A product can be positioned in a beneficial way for a target audience through advertising, the channels advertised through, the product packaging, and even the way the product is priced (shopify, 2018).

In order to develop a detailed positioning strategy for the Sephora’s product in relation to the target market, two instances of questioning would be emphasized on “(what should be highlighted about the product to attract the target market and where should the product be advertised to reach the target audience)” (shopify, 2018).

With the answers to these two questions, an effective marketing campaign can be established “(to send positive-driven messages)” (shopify, 2018) to the target audience such as online platform, where targeted advertising can be purchased based on demographics and interests.

Moreover, Sephora has established the “Sephora To Go” mobile app, which emphasizes on providing shoppers with a mobile experience that is catered to the customer needs (Honigman, 2017). The advantageous effect of this app is to help Sephora collect more reliable data about the habit of the target audience. This also contribute target market influence purchasing decision in the future. 

• Environmentally Sustainability

Through the various research, (Aportland, 2017) stated that Sephora has addressed concerns about waste by transitioning toward applying sustainable materials in offering refillable packaging, less visible sources of waste and emissions remain in product supply chains. As evidences suggest (Sephora Stands, 2018), 

• Sephora created an eco-designed lipstick packaging that uses less plastic and more plant-derived ink.
• Shopping bags are constructed from recycled material.
• The retail locations consume less energy with the online energy management system.

In order to ensure that a variety of cosmetic and skin care products in Sephora meet the requirement and more comprehensive approach to sustainability, Sephora have been well-prepared to work carefully with their suppliers and their target audience.

There are four major steps that Sephora has taken to reduce their detrimental impact on the environment (Aportland, 2017). Also, Sephora has successfully executed several initiatives associated to sustainability. For instance,

• Saving energy resources and combating climate change.
• Protecting eco-systems and natural resources.
• Waste recovery.
• Reduction in impact of production and transformation of raw materials, specifically through eco-design. 

• Ethical Practice

Practicing ethics in product marketing is defined as a deliberately applying standards of fairness, moral rights and wrongs, to marketing decision making, and behaviour (Majtán & Dubcová, 2007).  

To develop Sephora’s positioning strategy, ethical practice is one of the significant area that Sephora needs to focus on. For example,

• Sephora needs to identify “(Value-orientated framework)”(Majtán & Dubcová, 2007), which involves any ethical problems on the basis of the values, namely the strategy that Sephora has positioned is honesty, autonomy, and have a privacy for the target market.
• “(Stakeholder-oriented framework)”(Majtán & Dubcová, 2007) is also one of a crucial framework to analyse ethical issues on the basis of whom its affect, such as how the product strategic positioning that positioned by Sephora is going to affect consumers, target audiences, competitors and society as a whole. 

1. Uzair

• Internal influences of buyer behaviour

Perception: looking at the case of Korea, there are numerous plausible reasons for the higher number of cosmetic surgery processes (Woo 2008). The important physical appearance in contemporary Korea society has become essential part in the arena of employment as well as romantic relationship.  In addition, there is collaboration between the economic, cultural and historical transformation of Korea with regard to the female body perception.  Additionally, there is higher cosmetic surgery attainability since the prices for the procedure are low compared to the western nations (Woo 2008). The attitude of the parent, peers, public and government contributes to high prevalence of the cosmetic in the Korea and other Asia countries. Other source of beauty and cosmetic perception and attitude are media (Woo, 2008). 

Behaviour Segmentation

With regard to the Korea media, advertising and television in specific reflect on society obsession with beauty and has taken leadership role in promoting the idea of body image.  Most of the performers appearing in Korea adverts and television have undergone for the cosmetic surgery.  Thus, the cosmetic surgery has become a normal before entering Show business (Woo, 2008).  Therefore, Korea popular culture has become the representation of universalised beauty with improved features.

Motivation: the factor of self-indulgence is major motivation in the beauty industry.  The significance of the beauty and luxury brand of highly noticeable and recognition brand symbol is a considerable for young Korea and Asia woman.  Motivation may be centered on the cultural notion of face that is dominant in Asian cultures, or may be the young ladies are insecure in their personality and therefore want to establish their believability.

Given the progressively prosperous set of educated young Asian and Korean is a significant target market section, the understanding that their prime inspiration in spending for cosmetics will be looking for status, offers reasonable base for custom-target marketing communiqué approaches.

Personality: the media and television hugely contribute to the perpetuation of the myths linking appearance and personality.  For instance, the case of Hao Lu, the first Chinese artificial beauty argues “whether naturally or artificial improved, I want to reach a state of harmony (Wen 2013).   In the Korea society, the decision is comprehended as need and it should not be criticised because one do not know numerous challenges they may have as an individual due to its appearance. Thus,  the  cosmetic  surgery  is frequently  framed  as expression of personal need and desires that permit fixing  the individual complex  that restrain  person’s inner self  to completely shine. Thus, the sense of the cosmetic surgery become legitimised action inspired by the personal need (Woo, 2008).

Learning theories: when a consumer goes through his life using a product or services, his or her encounters with that brand will determine the future buying behaviour. Therefore, the cosmetic usage experiences have a crucial impact on what Korea and Asian consumer have learned or remembered which will determine the future action. They make repeated buying depend on the learned experience.  If Korean consumers involves into repeated purchase over a period of time, it will build a loyal consumers base that every firm strives to accomplish with the consumer learning procedure.  Therefore, the company can conduct recognition test and different recall to measures the effect and recall of the ad used and also to evaluate the brand loyalty.

Sustainability and Ethical Practices

External influences of buyer behaviour

Culture: the high level of conformity is connected with the collectivist tradition and lower desire to stand-out in behaviour and attitudes. Western culture tend to operates on principles of individualism and view body as property and responsibility of an individualism.  In contrary, in more sociocentric community such as Korea, a body is part of collective management processes. Well-known facts are astonishing when one considers the cardinal laws of the customary connection between a being and her or his physique centred on pre-modern Korea culture swayed by the Confucian beliefs.  In the domain  of individual groom, the  “South Korean tidal wave”:  the dispersion of items  of widespread  culture, television packages and pop music  thought has considerably  backed  the range of the  beauty  standards to the point  where south Korea  is seen as an international references for aesthetics.  Thus, it is not only South Korea that cosmetics have spread but also other Asian countries such as China and India.  For instance, in Japan, there are currently health centre which provides special Korean cures. South Korea has become a prevalent target in Asia for wellness vacation site (plastic surgery and beauty attention).  Additionally, luxury and the use of luxury products, and body care were all parts and parcel of the very classy traditional values of the affiliates of the Korea aristocracy.  Therefore, South Koreans bodily symbolises a successful nations while behaviour linking to the body contribute to visible consumerism and sorts of roaring twenties condition.

Status: prominence seeking is a major instigator for the Asian customers of beauty and extravagance products whereas westerner’s purchaser products for more personal motives such as to assist them feel well about themselves.  In Asian, young females can be very modest, when they are young; they tend to compare things like parent job, household background and which institute they are schooling.

Demographic: demographic play an important role in purchasing decision of consumer when it comes to luxury goods in Korea.  Young generation are those who have a higher purchasing intention when it comes to international luxury goods.  The geographical sphere of influence is varying slowly such as nations like Vietnam and Indonesia are developing as a fastest rising market and puzzling the leadership rank of nations like Korea and Japan. Similarly, it is motivating the development of men’s beauty, with alleged analyst projecting that Asia encompasses approximately 60% of the international market for men’s beauty and grooming merchandises.

Sephora To Go Mobile App

Group influence: the influence of the references group in buying of cosmetic may be enlightened by the perception that is a venture, a fundamental motivator of the customer decision.  It has been proved that venture selection are constantly affected by the data and viewpoint of others.

Given the competitive social environment, references group are extremely crucial on the purchase behaviour of the beauty products.  Both the internal influences of the family and friends and also the external influence of the celebrities, they have a remarkable impact on the buying decision.  For instance the Taiwanese   women they read the fashion magazine to be sure that their repeated purchase will preserve their face.

1. Needa
2. Leading to identification and development of a market strategy

It is important for any brand to identify its market. Sephora is a French origin brand with maximum stores in North America. It mainly targets women from age 18-45 (Haden,2016) and sells over 250 major brands like Clinique, Estee Lauder, Benefit Cosmetics, Giorgio Armani, etc. It offers many western brands. Sephora have strong connections with its customers both online and offline. Its current marketing strategy focus on blending in-store experiences, online and promoting brand engagement via web platforms, mobile and social media. Sephora's market strategy is different from other brands as it use their incorporated data into their Omni-channel marketing components (Honigman, 2017)

Sephora offers many popular brands dominating the market. Whereas many Korean brand offer totally harmless and organic products. Sephora mainly attracts western woman as it offers heavy makeup and contour kits. Korean women as well as men are very conscious about their skin care. A dominant part of the Korean females have a shrewd nature in issues of excellence, and this has pulled in their kindred American ladies consequently expanding global request of Korean skincare items. But, the problem lies in difference in skin type. Women around the world have different skin types and tones.

It is difficult for beauty brands to satisfy variety of customers. Beauty industry is a complex market to understand. Different people around the world have different needs and demands. Sephora can offer customers with Korean brands and can attract many Asian women as their target audience. Brands like Innisfree, Caolion, Beyond, Belif, etc claims that they have all natural ingredients are cruelty free (Builder,2015). If Sephora offers such brands it can attract many people who prefer chemical free skin care and body care products.

Sephora needs to use effective marketing strategies to bring Korean brands under its roof and sell it to Asian women and men. Most importantly Sephora needs to choose right brands and some brands for men's like Innisfree, it's skin, probiotic, etc. Another important factor is product positioning. It focusses on core target market. Sephora needs to understand it's new target market and choose an appropriate influencer and digital marketing to launch new brands successfully (Altman, 2018).

The new target market will be successful for Sephora as it will draw attention of many Korean women and men. Also, people who prefer totally chemical free products at reasonable price will demand such Korean brands. People are curious to try new brands and they may find it unique and different from others. Buyers demand new variety which is credible, have proven results and meets their requirements. New products can highly impact buyers’ decision. Once, they find the product useful, effective and reliable, the demand will increase leading to higher success rate (Harrington, 2013). 

1. Conclusion and Recommendations

• The swift advancement of the Asian and Korean beauty business over the past years have trapped everyone’s attention. Analysis and broadcast pieces concentrating on this development now regularly check in both admired international and local publication. The beauty business in Asia and Korea is not only continuously commended by the commercial media for its capability to positively launch inventive produces, but also high rate and for being capable to classify and influence promising evolution chances. In addition, initiatives to advance novel merchandises, both international and local producers of beauty brand have been celebrated, exertions to comprehend the need of the Korean and Asian shopper in-depth and also for the application and user of glamorous constituents and rites to redefine the invention experiences. 

References 

Acevedo, L., 2017. Product Positioning Strategies. 

Aportland, 2017. Sephora: Combining Beauty and Sustainability.  

Honigman, B., 2017. How Sephora Integrates Retail & Digital Marketing.

Majtán, Š. & Dubcová, G. D., 2007. The Ethics in the Product Marketing. Diagnostic of Value Relations and Market Activities in an Enterprise, pp. 3-6.

Sephora Stands, 2018. Sephora Stands Sustainability. 

shopify, 2018. Product Positioning.  

Dutta, A 2018, Market segmentation – Definition, basis, types and examples, viewed 14 June 2018, 

Kim, H 2015, Beauty Around The World — Comparing Korean And American Products And Perceptions, viewed 14 June 2018, 

Sherman, L 2013, Inside Sephora’s Branded Beauty Strategy, viewed 14 June 2018, 

Toribio, A 2013, The marketing environment, viewed 14 June 2018, 

Collins, A 2017, The 8 Best Korean BB Creams With High SPF That Are Blurring The Lines Between Skin Care And Makeup, viewed 14 June 2018, 

Sephora 2018, About Sephora, viewed 14 June 2018, 

Haden, L 2016, Sephora Case Study, SlideShare, viewed 12th May 2018,Builder, M 2015, 7 all-natural Korean beauty brands committed to all things organic, Bustle, viewed 10th May 2018. 

Harrington, K 2013, 10 qualities of a successful product, Entrepreneurs, viewed 10th May 2018. 

Wen, H. (2013). Buying beauty. Hong Kong: Hong Kong University Press.

Woo, H. J. (2008). Exploring the Television Drama Viewing  Effect  on Audiences  Behavioural  Intention of Taking Plastic Surgery Operation: Focusing on Theory of Planned  Behaviour, journal of communication science, 8(4), 480, pp. 480-512.