Conduct research and clearly explain key business concepts present in your case study. Identify the business problems and clearly define the solutions supported by literature. Address the implementation process and how the organisation can overcome the business problem(s).

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
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Case Study 5: Sephora

Sephora is well-known in some sales circles for including free product samples with every online purchase. The small business is managed by 2 partners and 5 employees. And the free product samples is a brilliant strategy for a couple of reasons.

First, it encourages online sales because customers feel that they are getting a unique "freebee." Additionally, loyal customers have the experience of being rewarded for their business. Finally, because the sales are online and customers get to choose their own samples, Sephora can track whether those customers go on to buy the product during their next online shopping excursion.

There are a lot of rewards programs on the market these days and these programs enjoy varied levels of success. Sending product samples to existing customers does not place an extra burden on customers by making them carry a card or remember a code. It also builds sales strategy however, the company faces a huge challenge with sales and profit generation is low, so needs to re-strategise.

The Business Situation:

The free product samples decision need to be reviewed, as currently, the strategy is not generating sales, and the business needs to come up with a more efficient method of maintaining a good market reach.

Conduct research and clearly explain key business concepts present in your case study.

Identify the business problems and clearly define the solutions supported by literature.

Address the implementation process and how the organisation can overcome the business problem(s).

 

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