Julie Bornstein Case

Julie Bornstein has the opportunity to develop the Sephora brand using technological advancements in digital media. "Simply pouring more money into various digital avenues was not necessarily the right answer." (1) I recommend that Bornstein first reflects on her target audience and overall objectives. Bornstein should not exclusively focus on one digital media avenue, but have an effective mix. With the information at hand, Bornstein should primarily focus marketing efforts on four areas; the company's website, mobile apps, Facebook, and YouTube.

Sephora's website should always stay current with their market segment and is the primary digital medium representing the brand. Moreover, the addition of the product review section allows for Sephora customer feedback and advice to other consumers. "Morgan Stanley projected that more consumers would access the Internet through mobile devices than personal computers by 2014." (2) With this in consideration, Sephora should continue to develop their mobile apps for the iPhone, Android, BlackBerry, Samsung, and other popular models. The third area Bornstein should focus on is Facebook. With over 500 million users and continued growth, customers flock to Facebook for updates. This medium harnesses interactive marketing allowing Sephora to contact customers real-time. Finally, YouTube should be developed and placed in emerging markets. The creation of specific YouTube campaigns channeling traffic to the website and mobile apps will integrate the overall digital media strategy.

Sephora's media spending consists of 20% Beauty Insider, 35% Online, and 45% Retail. In order to increase digital category awareness, and considering mix is still very important, Sephora should reduce spending in ROMI underperforming areas. Furthermore, with more app and website traffic, consumers will be purchasing less at retail. Reducing the thickness of the catalog, prints, and other animations should be grounds for marketing consideration.

The strategic goal of Sephora's digital and social programs should be to increase sales though apps and the company's website. There are higher profit margins with digital sales platforms due to less retail overhead. Increasing brand awareness though this medium will also allow Sephora to terminate expensive and tradition marketing programs; for example, catalog mailings. Exhibiting incremental online sales gains will satisfy the CEO's desire to win in the digital space.

When evaluating the cost of digital marketing implementation and success, metrics must be utilized. Fortunately for digital marketing, it's more accurate to quantify cost per thousands compared to the reach of television advertisements. Therefore, metrics such as average page views per visit, average cost per page view, average time on site, and month-over-month views should be used. For purchase sites, sales generated should