EXAMENS

Semestre 1 – session 1

FILIERE ►L3 IM
MATIERE ►CUSTOMER MARKETING
ENSEIGNANT ►Laurent Larroque

Durée : 2 heures
Documents autorisés : Dictionnaire anglais/français
Calculette personnelle autorisée (Casio FC-100V): non

ANNEE UNIVERSITAIRE 2020-2021

 Direct marketing
Case study
Sephora

du Mercredi 9 décembre 2020 (enseignant : Laurent Larroque)

 SEPHORA :
Customer Marketing Analysis et Recommendations

ABOUT THE COMPANY SEPHORA

Sephora is a Chain of speciality stores retailing high-end cosmetics and perfumes, belonging to the LVMH
luxury group; it is leader in its market and in direct competition with Marionnaud

In this highly competitive sector of perfumery and cosmetics, differentiation is required to stay in the
competition. Each competitor attempts a differentiation by employing a marketing strategy different from
each other.
For Sephora, diversification is mainly based on a lever well known to marketers: the customer relationship and
a strategy based on Customer relationship marketing which will allow, in order of importance:

• To recruit new customers

• To retain customers
• To turns customer into Brand ambassadors

The CUSTOMER Marketing by Sephora

For Sephora the customer must be pampered, he must be recognized for his loyalty, indeed the more a
customer is loyal the more he becomes profitable for the company. But it's not about caring for all customers
the same way, loyalty programs can be costly. Thus, the firm selects customers according to their profile
and purchasing potential and develops well-adapted loyalty programs.
More than the number of clients It’s the quality of the relationship with them that is essential. A loyal
customer is a client who’s is ready to spend more in your outlets!

Sephora loyalty program

When new customer arrives and during his checkout, it is possible for him to obtain a loyalty card. This card
allows the customer sto obtain benefits and promotions during purchases and even more during multiple
purchases. Thus, the brand sets up three customer relationship features with two different loyalty programs.
 • Sephora White Card

The Sephora White Card is the first card of the loyalty program, it is the beginning of the relationship
between Sephora and the customers. The white card proposes to discover the brands but does not offer any
specific advantage or service. Customers also receive communications or e-mailings about the products.

• Sephora Black Card

The Sephora Black card is the second step in the relationship between Sephora and the customer. It is given to
him from his 4th purchase in store or on the website, and allows to have discounts and accumulate points
with each purchase as follow:

• 1 point for every euro spent in the shop or on-line

• 10% off on the next purchase for each 150 euros spent
• Invitations to private sales
• Gift for birthday
• Special discounts on the products prefered by customers

This card already allows to have a special relationship with the brand and offers more service than a simple
card in another store, but it is not the top of the relationship.

• Sephora Gold card

The MUST of the relationship program at Sephora is the Gold card, dédicated to the most loyal customers,
those who have a high value. This card offers all the possibilities of the Black card but allows in addition a
personalized relationship, to be recognized by the brand. This allows to have :

• Special in-store support with a counselor

• Free delivery charges on the website.
• Receive specific invitations to certain private sales reserved for the most loyal customers
• To have free access to the beauty bar for makeup
• And finaly a wide choice of samples during any purchase.
QUESTIONS

In this specific context of Pandemic which seriusly affects local stores Sephora wants to organize a
creative challenge at MOMA to solve a difficult marketing issue : "how to increase the customer
share of Sephora among the male target by continuing to build loyalty among its regular
customers despite of COVID restrictions ? ".
The company has therefore decided to ask you to find innovative solutions.
From this short brief, supplemented with your own customer experiences of speciality stores in
perfumes and cosmetics, you are asked to mobilize your knowledge of Customer Marketing to
propose a marketing strategy for male customers by answering the following questions

1. Analyse the perceived value of Sephora's offer for a male target. (6 points)
- Start by decribing the 7 features of the perceived value for the current offer of Sephora. (2pts)
- Then analyse and point out the problem(s) that Sephora might encounter by positionning their current
offer on this specific male target (2pts)
- Present and argue the changes or improvement to be done, according to you, to convince male
segments with a new marketing mix for Sephora. (2pts)

2. Recall in absolute terms the 8 steps to implement a direct Marketing operation (2

points)

3. Based on your knowledge of Smart datas, propose your strategic recommendation of

Integrated Marketing Communication (On line and/or Off line) to increase the customer
share of sephora with male targets and retain regular customers (12 points)
To structure your recommendation, here are the questions you will need to answer in your proposal :

• Where to find your future clients, interact with your targets, identify insights, and respond to them? For
example what types of files/informations system would you recommend to Séphora to create your
database (2 pt)

• Describe the customer and shopper insights that could, according to you, lead (or prevent) male targets
to buy cosmetic products at Sephora (2 points)

• Which Direct marketing plan would you set up : copy positionning, offer (s) and promotional techniques
(brand activation / call to action) to respond the male target insights and reach your objectives
effectively? (2 pts)

• Remind as seen in class, the 7 key issues (7 cs) to design an effective website (2pts) and give for each
one the improvements to be done to increase the value of Sephora Website for the male target and
reach your objectives of gain, transform and retain customers (2pts)

• On which Key Performance Indicators (qualitative and quantitative) will you be able to measure the
success of your direct marketing plan? (2pts)