Digital Marketing Budget Allocation and Competitive Strategy for Sephora in E-Commerce
Overview
This paper addresses Sephora's digital marketing budget allocation strategy across mobile, Facebook, and video production channels, and identifies primary competitive threats from Amazon and Alibaba in the online retail sector. The analysis recommends prioritizing Facebook development and video production while improving mobile applications to maximize customer traffic and sales.
What this coursework covers
- Budget allocation recommendations emphasizing Facebook, video production, and mobile categories with rationale for each priority level
- Competitive analysis identifying Amazon and Alibaba as primary threats with discussion of their market dominance and business models
- Strategic implications for Sephora's digital marketing positioning against major e-commerce competitors
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Questions
Student’s Name
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Question One
Bornstein should allocate her budget on digital categories like Mobile, Facebook development, and Video Production. These are the categories that have demonstrated to hold significant traffic when it comes to the way the company does business. Facebook development should be given the biggest allocation as it has been able to bring a lot of sales to the company. On the other hand, Video Production should get the second biggest allocation as there is a need to improve in the videos that are released by the company in the marketing field. Quality videos will be able to sell the company more. The mobile category should get the third largest share (Ofek & Wagonfeld, 2011). With customers using their smartphones, the applications should be improved for them to attract more traffic to that will, in turn, mean more profits. A cut should be done on social partnerships as they may not be too instrumental in making Sephora excel as other companies that partner may be getting a mileage.
Question Two
As Sephora gets into social media and digital marketing, the companies that Sephora should be worried a lot of is Amazon.com.This is a company that has a strong business mind led by Jeff Bezos.Furthermore,the retail business has roots in many nations where it has established its name and it would be wise for Sephora to have strategies that can be able to rival Amazon.com ,a company that has transformed the online retail business in a big way.Alibaba.