Free Essay. Gap or Opportunity Identification

Sephora identified gaps in the use of digital technology in marketing. For instance, competitor organizations only utilize online platforms without considering offline options. It created both online and offline websites and initially launched its products in two nations, the United Arab Emirates and Saudi Arabia. However, it accelerated its target market to over 33 countries by the year 2013. The online website offered a vibrant marketing strategy in assessing potential clients in the virtual environment created by the internet. Offline site ensured that potential buyers could still place orders for the beauty products offered by Sephora remotely without necessarily accessing the internet (Kavoura, Kefallonitis & Giovanis, 2019). Another opportunity that Sephora could exploit to escalate their sales is through the use of relatively affordable labor. Saudi Arabia, that offers a relatively vast market to Sephora products, does not have a fixed minimum wage for the private sector. The organization can leverage affordable labor to employ more sales representatives to distribute its beauty products to reach a considerable large market (Kavoura, Kefallonitis & Giovanis, 2019).

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Dubai, which is a viable destination for Sephora products, provide cost opportunities due to the presence of tax incentives. For instance, there exist duty-free charges on certain products like beauty products, which will make the cost of business reduced and the tax relief therein transferred to consumers. The firm can leverage on duty-free incentive to revise their price model to attract more consumers and increase the sales and profit margin in the long run. Further, Sephora could also take advantage of duty-free shops on Sunday and Saturday and open its doors in some busiest airports to attract more clients and increase sales (Russell & Bendixen, 2018).

The existence of the various shopping application platforms can also work as a favorable opportunity for growth for Sephora. For instance, Talabat, Carriage, and Marsoul can work to the advantage of the venture since these apps are accessible to many people in the region and beyond. Talabat is popular with the Arabic community but also extends to Jordan, and Sephora could utilize its availability to expand its regional markets. The young and female market demographic for the beauty products sold by Sephora makes the use of the applications mentioned above viable in accessing more market opportunities (Wang & Beverland, 2018). Further, the introduction of new products that incorporate beauty accessories in the applications makes them viable for making deliveries to third parties, which constitute a majority of the clients. The app would also ensure speedy feedback from the clients that would inform the basis for improvement. However, Sephora can also expand its market base to target even the adults as a means of gap and opportunity identification without narrowing only to the younger population (Wang & Beverland, 2018).

Summary of Proposed Strategies

Sephora got focused on integrating in-store experience with online shops. The strategy is to attract clients both online and offline. Aware of the gap in quality and price, Sephora embarked on the use of shopper data to discover new and existing clients that are looking for a recommendation for best beauty products. The experience resulted in the creation of a virtual shop where clients place orders online and have their products delivered at their convenient places. Most clients always focus on the preventable nature of the product and decide whether to buy. Sephora strategizes on how to make their beauty products attractive and engage in various classic ads that leave potential and existing clients entertained (Russell & Bendixen, 2018). Their website advertises products in ways that are not only appealing to the client but also ensure that the customer gets an adequate description of the product for decision making. The careful choice of picture ads on the product relatively appeals to the target young population market, which is a good strategy.

Segmentation/ Target Market Strategy and Justification

The targeting strategy discovers a new client base in older women that Sephora products have left behind while focusing on the young population. It would be appropriate to maintain high-end clients with competitive prices without compromising the perception of the existing clients. The strategy should focus on high income older woman with cosmetic needs to reaffirm the general notion of classy beauty products. Some products should also cut across ages and not specific to a particular age group (Poleg, 2019). Such products would not lack market value as any age group is appropriate for its use.

Even though abrupt price reduction may get construed for reduced quality, pricing plays a critical role in sales and profit margins. Therefore, as part of the strategy, revising pricing models is essential. Sephora could change the prices to relatively affordable to attract more clients. Further, the venture can explore the fortunes in natural products. The contemporary world focus on the natural solution and the firm can tailor their operation to incorporate the manufacturing of natural beauty products to attract conservative clients that constitute relatively older women (Kavoura, Kefallonitis & Giovanis, 2019). The incorporation of pricing models, together with the introduction of natural products, would provide a viable strategy aimed at increasing profit fortunes for the organization.

References

Kavoura, A., Kefallonitis, E., & Giovanis, A. (2019). Strategic Innovative Marketing and Tourism: 7th ICSIMAT, Athenian Riviera, Greece, 2018.

Poleg, D. R. O. R. (2019). Rethinking Real Estate: Strategies for Real Estate Professionals in the Age of Digital Disruption. Place of publication not identified: Springer Nature.

Russell A & Bendixen, M. (2018). Strategic Marketing: Concepts and Cases. Milton: Routledge.

Wang, J., & Beverland, M. (2018). Building online Engagement at Sephora. London UK.