Analysis of Sephora’s Strategy Diamond

Analysis of Sephora’s Strategy Diamond

Arenas and Differentiation

Abstract

This paper explores and discusses the the cosmetic company Sephora’s Arenas and Differentiation approaches within the Strategy Diamond. Articles from both the company and third party resources are utilized to identify the key drivers for the company’s continued success and customer satisfaction. The overall theme revolves around Sephora’s ability to target and capture the majority of the world’s population through high end customer service and expertise, in combination with specialized products.

Analysis of Strategy Diamond Sephora

Sephora is a French cosmetic company which was established in 1969. It expanded globally after being acquired by LVMH, an European multinational luxury goods conglomerate.  Sephora opened its first store in NY in 1998. After that, Sephora grew quickly and became to be one of the most popular and famous cosmetic companies in the world. As one of the leading cosmetic stores in US, Sephora carries nearly 300 brands along with its own private label. A key driver for the company’s success revolves around Sephora’s clear market segmentation. They have been able to identify and target a large female population in the ages of 20-50, and provide high end make up/skin care products all over the world.

What makes Sephora so successful is the company’s ability to highly differentiate itself from other cosmetic competitors. The company is able to provide various services and features to help position Sephora to be a high end professional beauty studio. Here are three main reasons why customers including me choose Sephora over other stores. Firstly, the company has been able to brand itself as a professional provider/educator of cosmetics, beauty accessories and skin care products. Sephora’s employees and stylists are well trained and assist customers by consulting on a wide range of products with great levels of understanding and expertise. This allows customers to feel they are choosing the right product each and every time. In combination with the level of expertise provided, customers are provided great service and samples such as the ability to request a full face make up to understand the products they are purchasing. In many instances, customers are also exposed to further products as they are welcome to pick free samples after purchases in store or online. In comparison to other beauty stores, Sephora combines not only their wide array of high end products but their expertise and customer care which ensure customers are always satisfied and walk away with ease and comfort in their choices.

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