1. Assuming that Bornstein gets additional funding, how should she consider allocating across the various digital platforms/categories? Given that the additional funding request must be shifted from traditional marketing, what would you propose to cut and why? Please state your rationale based on their customer base for all decisions.
Before deciding which funding should get cut, we need to check out the analytical metrics of traditional marketing categories which may help to analyze their affectivity, but we don’t have those data, we only have some about social media marketing, not traditional. Anyway, according to 2010 numbers, when we check the graph we can see that, the %45 of Sephora media spending is formed by retail marketing which includes prints, catalogs, store animations. Then it follows %35 as online and %20 as Beauty Insider. Traditional strategy seems like Sephora’s major Marketing strategy and I think this need to change. I would propose to cut the budgets of printing and catalog; in today’s world we can see that the affectivity of printing marketing is decreasing because most of the public live in the digital world not paper world. Each day, more people using tablets, smartphones or computers to read newspapers, advertisements, book; almost all the printing stuff are transformed into the digital world. According to David Suliteanu “Should we further scale back our circulation and perhaps the length of our catalogs? At what point do we stop printing and mailing altogether? Everyone loves our catalogs. They showcase Sephora as a trend-setter and an expert”. Yes these catalogs look pretty and it is important for company’s image but there is no reason to send it everyone either. To stop printing may not be a rational idea, but decreasing the number of prints and sending them only the selected customers like VIPs (they can rank as: how long they have been a customer of Sephora, how much...
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