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Case Study: Sephora

Sephora faces several problems that may hinder its progressive growth. Firstly, the company has tried to incorporate the social media postings with the company website. This is a potential vulnerability that can hurt the company brand in the event that the public posts negative reviews. Secondly, Sephora has over the years packaged itself as a prestige brand. However, the company has expanded the brands to 288 with about 20,000 products (Ofek and Wagonfeld 2012). This expansion may dilute the prestige tag and thus discourage the primary consumer base.
Consumers have diverse opinions on certain matters. While posting negative reviews or comments has the risk of pushing away other potential consumers, it nevertheless provides Sephora with access to the feelings and opinions of the consumer. The company can then come up with measures to meet the needs of the consumer by understanding the tastes and opinion of consumers.
Most consumers who have relied on Sephora expect prestige, unique, and highly priced products. The solution to the problem of diluting their brand is to retain the company prestige, unique and high-end brand. The major weakness with this step is that it means the company reducing the number of products as well as making it hard for some middle income consumers to buy. However, this measure ensures that the company brand is retained, and a stable consumer base is established. To overcome the problem of negative reviews on the company website, the company should observe and monitor their social media accounts and act swiftly.
The decision maker should consider reducing the number of products and increasing the number of the high-end products. In this case, Sephora has cultivated that brand and is thus easier to maintain the company through the loyal consumer base. This measure can best be implemented by coming up with a second store under a different name that will sell less priced and prestigious products. On the other hand, the number of Sephora stores should be reduced and exclusively stocked with high-end prestigious products.

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