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Kraig Correll, Jordan Dicks, Samantha Jalazo, Brooke Marshall, Clark

Wang, & Jacqueline Wilchek
 ★ Background
★ Current Big Picture
Agenda ★ Marketing Shortcomings
★ Proposal
★ Revised Big Picture

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 Background

➔ Omnichannel Offerings
◆ Founded in Illinois in 1990 when prestige, mass, and salon
products were sold through distinct channels (department,
drug, salon)
○ Today: unique specialty retail concept
➔ Changing presence
◆ From the 5 original Illinois locations → over 1300 locations
across 50 states and strong e-commerce presence
◆ Largest beauty retailer in the US
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Current Big Picture

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BUSINESS Distinct Branding Structure
➔ Core Competence:
OBJECTIVE: ◆ Strong, active relationships with more than 400
brand partners
➔ Strategic Asset:
◆ Multiple categories of products and offers a
variety of price points
➔ Product/Benefit:
◆ Shoppers can come to Ulta to find a beauty
product that fits within their budget and beauty
need

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 GOALS:
● Expand the definition of beauty
CORE BUSINESS: ● Evolve omnichannel experiences
● Deepen company’s presence in
consumer’s beauty journey
● Expand environmental and
Beauty and Wellness social impact
“all things beauty all in one place”

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Marketing Objective & Source of Volume

Category:
Beauty Products

Retention → Stimulate Demand 7

 Segment
★ US Beauty Products Market (specifically beauty
channel)
★ Target demographic: women ages 16-25
★ 2018 study shows the distribution of American
consumers who prefer to shop at Ulta, by age group
○ 22% under 18
○ 24% 18-24
○ 21% 25-29
○ 16% 30-64

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 Target
★ According to Ulta’s current investor presentation,
their target customer is “The Beauty Enthusiast.”
★ A beauty enthusiast is someone who uses beauty
for self-expression, experimentation,
self-investment, wellness, and has high
expectations for the shopping experience.
★ Total beauty buyers (female)
○ 60% are Beauty Enthusiasts (totaling 70 million
women)
○ Accounting for 75% of beauty spend

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 Ulta carries
I need to buy I should go to
both high and
high and low Ulta to buy

Positioning end products

low end
products
these products

★ Emphasize that Ulta offers the best of both

worlds between high and low end beauty all
in one place
I will go to both I go to Ulta and
Sephora and the buy these
drugstore products

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 Product
★ Primarily sell beauty, haircare, and skincare
products
★ Sells over 600 different brands
★ Also have beauty services such as waxing,
hair appointments, makeup appointments,
skin help services, and ear-piercing services

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 Price
★ Prices range from drugstore lows starting at $0.49 to high end
beauty products with prices as high as $70 for makeup and
fragrances for $345
★ The drugstore lower priced options are great for people who
aren’t able and willing to pay the higher end products

$ $$$
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 Place
★ Ulta has 1,308 stores in the U.S. as of January
29, 2022
★ The most stores being in California with 163
stores
★ Ulta Beauty is the most popular beauty retailer
website as of July 2022 with 70.82 million
visits
★ In November 2020, Ulta and
Target announced their collaboration opening
over 100+ Ulta Beauty mini stores
in Targets across the country

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Promotion
★ Usage of email marketing, television
ads, constant price promotions,
YouTube ads, Instagram and Snapchat
ad posts
■ Email marketing is useful to retain
customers and get them back in
the store to buy more products
★ Known for their “21 Days of Beauty”
promotions

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 MARKETING Misalignment of target segment and
marketing strategy
SHORTCOMINGS

Exclusivity of Customers

Human Psychology

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Misalignment of marketing and audience
★ Strong online presence with Ulta’s beauty blogs, quizzes, and Youtube content
(tutorials, podcasts, etc.)
★ These platforms are not effective against its targeted audience of enthusiast aged
16-25
★ Solution: 1) Stronger social media presence on platforms such as Tiktok
2) Employ Push Marketing in store with “As Seen On Tiktok” sections
holding popular/trending products that are circulating on TikTok

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 Inclusivity
★ Limited variety and choices in the men’s beauty section
★ Men’s beauty market has been trending up since 2020 due to the
flourishing idea of “self-care” and the importance of e-commerce
★ Solution: Employ Acquisition/Stimulate Demand to attract more customers
as the market leader in the beauty space and beauty e-commerce space

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 Human Psychology
★ Problem: Not taking advantage of the descriptive norm to increase
desired action

★ Solution: Implement an element that tells potential customers how many

people have bought or looked at the item.

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Revised Big Picture

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Revised Marketing Objective & Source of Volume
Acquisition → Stimulate Demand

Our Proposal
Marketing
Descriptive Norms Inclusivity
Alignment
We have seen success with
Having a visible element on Rebranding website and
new products gaining
the website to promote consumer experience to be
popularity through social
sales by showing customers more inclusive and
media platforms. Having a
that this is a sought-after accessible to individuals
central location in store for
product. who don’t normally fit the
the monthly hot items from
stereotypical Ulta
TikTok would increase
consumer.
customer satisfaction.
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 Estimated Cost of Revised Plan
Point of Purchase displays: Increased Ad Spend:
As Seen on TikTok section Inclusive TikTok Advertising

One large standard corrugated cardboard POP

display: $100 x 1308 stores = In-feed ads and branded hashtags range:

$130,800 $50,000 to $120,000

per ads or campaign

(depending on the duration and the formats of the ads)

Total: ~$555,000*
*assuming 5 new campaigns
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THANK YOU!

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