The world of Sephora : managing strategies as a retailer and private

The focus of this thesis is to study the cosmetics industry, understand consumers’ preferences over point of sales and brands, most important beauty brands’ attributes, as well as cosmetics consumption habits in the Portuguese market, addressing in detail the company Sephora. To do so, a Market Research was conducted through an online survey and by an in-depth interview. Sephora, a French chain of cosmetics, is owned by the Group LVMH Moet Hennessy and was founded in 1970. The company has been boosting its presence globaly, and is now present in 31 countries, with over 1700 stores worldwide. In 1993, Sephora launched its own private label, featuring make-up, skin care, beauty tools & accessories. The brand rapidly became the retailer best seller due to its product variety, quality, image and innovation, sold at affordable prices. In Portugal, the beauty market environment is still traditional. The main conclusions that can be taken from this dissertation are that women and men have considerable distinct cosmetics consumption routines, which are related to cultural and educational issues. The majority of consumers show preference in buying beauty products in perfumeries, and companies should consider e-commerce as an opportunity for an additional sales channel. Regarding cosmetics’ brands attributes, consumers show less preference for loyalty and higher importance is given to image, variety of products and quality. Sephora’s target, position and marketing mix elements are in consonance with consumers’ profiles and perceptions, although the brand could expand its portfolio regarding products that target men, a growing market segment