Harvard Case Sephora

Topics: Investment, Rate of return, Facebook Pages: 3 (889 words) Published: December 2, 2014
Sephora Direct: Investing in Social Media, Video, and Mobile

Summary

The company Sephora since 2008 through the creation of a new group has moved into direct marketing and digital initiatives, namely in the social networking world, initially through Facebook.

Entering a new world where there are no clear rules or similar experience to help you make the best decisions in this area has been a real challenge. After more than two years in this new digital environment, Sephora are conducting the 2011 management planning requires a greater investment by the president of the company who is willing to provide the necessary funds and always when the company generates a higher return .

Factors
Innovations introduced in the beauty business with no major products beauty companies, Sephora implement two new ways to offer their products to customers: Allow test their products without obligation.

Business Model inexpensive.
The client has many products you want to buy in stores, through offering other cosmetics (about 288 brands of products priced almost equal to that of large businesses).

With all that Sephora has turn into the largest retail chain of cosmetics medium enterprises but with wide market presence, which was a determining factor for the industry recognized manufacturers offered their produce factor which initially were denied.

Vice President Julie Bornstein, whose main objective is to find a reason to justify further investment in the area of social media, the goal is to quantify the return on investment and justify the requirement for increased budgetary allocation for his department.

The problem
Determine how to measure the ROI that allows the fulfillment of the objectives planned.

Analysis of innovations
Direct Marketing
Their loyalty program customer called Beauty Insiders, started in 2007, created with the intent to learn more about their customers, was strengthened with the inclusion of the idea not only provide discounts but...
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