The company was founded in the year 1970 in France. The company has more than 100 brands in the company with 1800 stores spread over 30 countries. The company has a customer base of over 6 million and has 27000 employees working in the various branches spread across the world (Wearesephora.com, 2015).
The competition and demand and markets- the company by offering large number modern brands and also excellent customer services so that the company can attract a wide young customer base. The sales associates of the company mainly focus on the color, skin care and fragrances of the products. They often try to cross sell the products (prezi.com, 2015).
Production along with delivery- the company changed the sales policy so as to attract many customers. The company also took the initiative to reduce the cost of operation and also the cost of labour.
The company tries to employ a more number of managers who are brand centric and their stores are based in the centre of the big cities. The company has an organizational structure which is traditional in nature. The exception is that two of the marketing SVPs reports to the CEO directly.
Organization workplace- the company tries to connect the various business activities among the network partners for sharing of the knowledge. The company believes that one company does not need to follow the herd if it is under the umbrella of a big brand (Schweiger, 2008). The company becomes stronger if it adopts the culture of the place in which the company is operating. It gives the company individuality and thinking in a fresh way and also to generate unexpected ideas.
Sephora is one of the widely recognized cosmetic retailers in the world. Recently it has integrated a digital marketing scheme in their overall marketing strategy. The company has a single executive who looks after the both the marketing and digital sectors. It was one of the first companies in the world to sell prestigious cosmetics. The company allowed the customers to touch and use the product in the same location (beauty, 2014). In the year 2007 the company opened its website making the company an early entrant in the e-commerce market. The company continuously tries to make commitment to the customers and educates the clients. The company took the digital far beyond the product specifications and shopping carts; but they also built a system which could give the customers a better access to the image of the products, more information and clarity (Mullins and Walker, 2013). The website also gives an opportunity to the customers to communicate with the company and also with each other. The company plans to introduce new products every month in the first year of its operation.
The growth strategy of the company is that it plans to capture the 10% of the Australian cosmetics market which is $4 billion industry. The company plans to do that by offering lower prices and new brands as well as the self service to attract the younger generation in their stores. The sale if their product is expected to reach from $225 million to $250 million and the market share of the products will reach double digits in the next four- five years. The store Is planning to open 20 new stand alone stores in the country (Loeb, 2013).
The industry environment of the company can be discussed with the help of the Porter’s Five Forces Framework.
The threat of entry- the threat of new entrants in the market of cosmetics is low since the entry requires a huge investment in capital, inventory as well as an efficient distribution channel. It also requires good relationships with a large number of brands. Thus the threat of new entry in the market for the company is low (Harvard Business Review, 2014).
The threat from suppliers- the supplies of the company has low bargaining powers as the company features products from a large number of brands and the company also has its own private label. Moreover the suppliers have to comply with the supplier’s code of conduct in order to carry out the supply. This is done so as the supply chain of the company is transparent (The Business of Fashion, 2013).
Threats from the buyers- the customers buy beauty products from three different types of shops they are department stores, retail stores like Sephora and drug stores. Since the switching over cost is low in the beauty industry, the customers do not stick to the same store. They go to places which offer lower cost products rather than the higher cost that are offered in Sephora.
Threats from the substitutes- there are no close substitutes of Sephora as the customers will not be able to make a wide range of products in their home and the sources are limited.
Competitive rivalry- the competition of the beauty products is huge in the market. Some of the competitors of Sephora are Societe De Distribution Aeroportuaire, MH Muller Handels etc in France. These are certain country specific competitors and the company operates globally.
The current business level strategy of the company is based on the differentiation. This strategy provides the customers convenience and also pressure free shopping (Harvard Business Review, 2014). The company allows the customers to walk through the store and choose the products they want, rather than the traditional system where the customers had to interact with the salesperson. Since the company endorses a wide range of products, the customers will be able to find whatever they need. The company has different structures which are functionally different and meets the specification of each of the countries (Fortenberry, 2013).
The most obvious price differences are in the company’s own brand, Sephora Natural Volume Mascara, the price of which in US is $US12.84 or $US12 which includes an average sales tax of 7%, when this price was changed into Australian dollars it was $15.66. The same product was selling in its Sydney flagship store at $25 including GST, making it a massive 60% more expensive than the US (Dixon, 1960).
Another example is the Formula X Nails, a brand owned by Sephora, which was selling in the US for $US11.24 including tax, which was $13.70 Australian dollars. But the product was selling in Sydney at $20, which made the product more expensive in the US by 46%
It can be said that the innovative process takes time to become successful. Moreover it also takes money and resources, innovative ideas. The company needs to establish new ideas and see whether the ideas are feasible. The ideas must be implemented in a test run so that the people can experience them and give their expert opinions and then only the ideas are to be put in the market. The old concept of the sales representatives is gone and the concept of beauty advisors has emerged in the market who offers ideas and advices. It is a place where the personal beauty can be accessed (Furrer, 2011).
beauty, S. (2014). Sephora's big plans to bring Australian blokes to beauty. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/retail/sephoras-big-plans-to-bring-australian-blokes-to-beauty-20140609-39srv.html [Accessed 28 Feb. 2015].
Dixon, B. (1960). Price discrimination and marketing management. Ann Arbor [Mich.]: Bureau of Business Research, School of Business Administration, the University of Michigan.
Fortenberry, J. (2013). Nonprofit marketing. Burlington, MA: Jones & Bartlett Learning.
Furrer, O. (2011). Corporate level strategy. London: Routledge.
Harvard Business Review, (2014). How Sephora Reorganized to Become a More Digital Brand. [online] Available at: https://hbr.org/2014/06/how-sephora-reorganized-to-become-a-more-digital-brand/ [Accessed 28 Feb. 2015].
Lipczynski, J. and Wilson, J. (2004). The economics of business strategy. Harlow: FT Prentice Hall.
Loeb, W. (2013). Sephora: Department Stores Cannot Stop Its Global Growth. [online] Forbes. Available at: https://www.forbes.com/sites/walterloeb/2013/04/18/sephora-department-stores-cannot-stop-its-global-growth/ [Accessed 28 Feb. 2015].
Mullins, J. and Walker, O. (2013). Marketing management. New York: McGraw-Hill.
prezi.com, (2015). SEPHORA STRATEGY. [online] Available at: https://prezi.com/sqynjmk01ahv/sephora-strategy/ [Accessed 28 Feb. 2015].
Schweiger, M. (2008). Sephora, the beauty authority. New York: Collins.
The Business of Fashion, (2013). Inside Sephora’s Branded Beauty Strategy - The Business of Fashion. [online] Available at: https://www.businessoffashion.com/2013/09/marc-jacobs-sephora-lvmh-branded-beauty-strategy.html [Accessed 28 Feb. 2015].
Wearesephora.com, (2015). The Sephora Saga | We Are Sephora. [online] Available at: https://www.wearesephora.com/Home/Page/Id/2-the-sephora-saga.sls [Accessed 28 Feb. 2015].
Yin, E., Duan, L. and Fong, N. (2010). SEPHORA. 1st ed. [ebook] Available at: https://www.sfu.ca/~sheppard/478/syn/1147/Group_C.pdf [Accessed 28 Feb. 2015].
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2016). Business Level Strategy: Sephora. Retrieved from https://myassignmenthelp.com/free-samples/business-level-strategy-sephora.
"Business Level Strategy: Sephora." My Assignment Help, 2016, https://myassignmenthelp.com/free-samples/business-level-strategy-sephora.
My Assignment Help (2016) Business Level Strategy: Sephora [Online]. Available from: https://myassignmenthelp.com/free-samples/business-level-strategy-sephora
[Accessed 29 March 2020].
My Assignment Help. 'Business Level Strategy: Sephora' (My Assignment Help, 2016) <https://myassignmenthelp.com/free-samples/business-level-strategy-sephora> accessed 29 March 2020.
My Assignment Help. Business Level Strategy: Sephora [Internet]. My Assignment Help. 2016 [cited 29 March 2020]. Available from: https://myassignmenthelp.com/free-samples/business-level-strategy-sephora.
Getting nightmare regarding pending chemistry assignment? Then it is high time you consider hiring chemistry assignment help service of MyAssigemnthelp.com. We at MyAssignmenthelp.com deliver quality subject specific assistance on more than 100+ subjects. For us, students' need is foremost, and we work round the clock to offer science, humanities and commerce assignment help. Among Commerce wing, our one of the most popular services is capital budgeting assignment help. In science segment, we have gained popularity with biology assignment help.
Answer: Degree To Which Stakeholders Trust Those Leading The Change Unitech is one of the leading academic aspirants in contemporary and applied learning and it need to change with time and situations to enable better futures to students, enterprises and communities as a whole Carnall (2018). Though change is a complex process but still it is obvious for Unitec. The company stakeholders should rely on communication for managing the changes...Read More
Answer: Introduction Marketing is considered to a fundamental part of a business. It is founded on searching the suitable customer after the creation of an attractive statement regarding the product of service. The marketing of a product requires proper designing, researching and advertising in order to guarantee the success of the business. It is rather a combination of few strategies which are designed to broaden the capacities of the produ...Read More
Answer: Introduction The scope of effective communication in business is massive. In the unit we learnt about various concepts of effective business communication. I have elaborated about the significance of the concepts that were discussed. I have stressed on the importance of public speaking as it holds great importance in my future career path. Along with that I have provided a literature review of the same, in addition to another concept ...Read More
Answer: Competitive forces facing Qantas, using the Porter’s ‘five forces’ framework Porters’ five forces model consists of five components which will be analyzed to understand the current state of competition in airline industry of Australia. Bargaining power of Buyer: Australian airline industry is highly competitive offering service to customers maintaining a competitive pricing strategy. In most of the cases, they p...Read More
Answer: The dairy industry in Australia is one of the major rural industries of the country. On the basis of the farm gate value of production, industry has been ranked at third place falling behind beef and wheat industries. The 6,128 dairy farmers of Australia produce nearly 9.5 billion litres of milk. Out of this production, approximately 35% of it is exported. In this way commit includes a wide range of value added and innovative dairy pro...Read More
Just share your requirements and get customized solutions on time.
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
First /2nd revision was very poor and didnt meet the requirement . 3 rd time it was almost reached the standard which i requested. Many thanks
I’m expecting to get the grade about and the quality of work looks great so far
Awesome Job! A very large project completed quickly and with great accuracy! My assignment help will definitely be used for future assignments!
This is really excellent service on which u can rely on. I got my assignment at time and whatever I want to do change after completion they did it without any hassle. Highly recommended.