Marketing Communications for Sephora Have Historically Focused on the Following

● Marketing communications for Sephora have historically focused on the following:

○ Retail (animation, print catalogs): Traditional retail spending has historically made up 45% of Sephora’s media spend. In addition to traditional print catalogs and magazine advertising, Sephora coordinates animation themes for its store windows and its website homepage. This created Sephora’s brand equity of using stories to attract customers, allowing Sephora to showcase themes that is pivotal to the aspirational element of its target market. For the 25-35 women who are just blossoming into young women, they see these store windows decorated with images of beauty that they can aspire to; eventually, they will see these animations and print catalogs, walk into the store, allow the in-store makeup specialist to give them a makeover, and eventually become paying customers.

○ Online (search, affiliates, social media): Online has historically made up 35% of Sephora’s media spend. Sephora has invested heavily in this category and online search has been the largest source of new traffic. Online search feeds into Sephora’s positioning as a place where customers can discover and learn. Sephora has used online media to engage with its customers and reinforce the idea that it is a go-to upscale beauty store that will help you discover new products and teach you how to look your best. Its engagement on social media is an extension of its strong focus on experiential shopping - making the buying experience much more about learning and discovery than it is about picking something up in the store that you need.

○ Beauty Insider: Sephora’s Beauty Insider program has historically made up 20% of its media spend. With Beauty Insider program, Sephora has created a loyalty program that rewards repeat customers with perks such as gifts, special store events, and early access to products. This reinforces Sephora’s positioning as

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