Blog 4: Business Model Analysis-Sephora

Ever since I was 13, I was fascinated with the world of cosmetics. Sephora quickly became the mecca of my teenage free time.

Even Sephora's motto says it all!

Sephora is worldwide cosmetic and beauty store that sells more than 100 different brands in their trademark black and white striped stores. Sephora displays products in such a way that customers can try on and experience the makeup.

The Sephora representatives are knowledgeable on all the products and can direct you to a professional in store makeup artist if you would like a makeover. Unlike other beauty stores, Sephora does not sell drugstore makeup brands, but instead, sticks with top labels or niche products. By doing so, Sephora has positioned themselves alongside department stores like Nordstrom’s, Dillard’s, or Macys.

My interest in Sephora has not waned any through the years and neither has my love for cosmetics. Sephora has been there with me since I was an acne ridden teenager till now.  For me, Sephora is one of those stores you cannot leave without buying something because there really is a product for everyone and everything. Say you’re just going in for eye shadow, you’ll have to pass every variety of makeup there is, makeup tools, nail polish, and fragrance options.

Each display more and more tempting for you to try out. It has also been interesting to see Sephora from the view point of a marketing major. The way they reach and draw in consumers is fascinating. For instance, Sephora has created a successful rewards program allowing customers to turn in their points for product samples. From the initial advertising email to the great customer service, Sephora truly creates an experience.

As I mentioned before, Sephora has something for everyone, even men. With that said, there are a few primary segments they try to reach.

• The young preteen who is just getting into makeup.
• A young working professional who needs to redefine her makeup look into something more mature.
• The middle aged woman who wants to look young, but still her age.
• A man who is interested in a skincare routine.

I believe that most of the value Sephora can provide benefits the young working professional and the middle aged woman. There is more of a need in these two segments for the one-on-one help with the numerous product choices Sephora can provide. The issue for the preteens is the lack of necessary funds to afford to buy what Sephora is offering. Sephora does provide more affordable brands, but in order to purchase all the products you need to complete a look, one would almost need to take out a small loan. Finally for the man who may be interested in creating a beauty routine, I believe they may not be completely aware of the value Sephora could provide to them. Sephora quite understandably has a stigma of being a place for women.

Though with one quick look around the store, one can see an obvious men’s section has been portioned out.