Sephora:: flawless

by Jenn Gidman

May 26, 2008 issue

When the biblically renowned Sephora hotfooted it with Moses on his exodus to the Red Sea, she probably could have used a pitstop at the beauty retail chain that today bears her name—after all, all that time in the arid desert air surely didn’t bode well for a gal’s looks and general hygiene (though Yvonne De Carlo certainly held up well in the Cecil B. DeMille account).

Since its inception in 1969 in France (the first US store made its debut in 1998), Europe’s hottest beauty retail chain was acquired by luxury-products conglomerate LVMH in 1997 and now claims an extensive lineup of upscale skincare, makeup, hair, and fragrance products in a “visionary” retail setting. Customers can shop in-store, online at Sephora.com (boasting more than 12,000 products from nearly 200 brands), or through the brand’s catalog.

Today, more than 500 Sephora stores dot the global landscape (even Serbia, Oman, and Qatar have their own Sephora), inviting customers to browse the wares, spritz on the eau de toilette, and indulge in an afternoon of creative cosmetics, all in a setting where every customer is treated more like the regal Nefertiti than her hard-scrabble romantic rival.

The Sephora apple doesn’t fall far from the LVMH tree. Like its sister brands (LVMH is also the parent company of Louis Vuitton, TAG Heuer, and Moët and Chandon, among others), Sephora tries to lure in a free-spending demographic with dollars to drop on their beauty regimen. But it’s not just the stock on the shelves (including Sephora’s own private label) that draws in the aroma-obsessed crowds—it’s the whole Sephora experience.

Sephora doesn’t want shopping for your cosmetics to be relegated to something you squeeze in between dropping off your dry-cleaning and heading to a dentist appointment—the Sephora svengalis would rather you liken your visit to an afternoon spent at the spa or relaxing at a local coffeehouse. Taken right from the company’s own “Beauty Statement”: “Step in and enter a whole new dimension of shopping for beauty… Each of your senses will be delightfully stimulated in a stress-free shopping environment that celebrates the freedom and joy in exploring and sampling an unparalleled selection of beauty products.”

Who needs a hot-stone aromatherapy massage when you can just go shopping?
Adhering to this brand message means making its customers feel like royalty. Sephora tries to extend its “velvet rope” philosophy by offering attentive (but not stifling) customer service, a generous sampling program, and perks like its Beauty Insider card, a customer-loyalty program that offers personalized e-mails, insider-only products, and even a gift on your birthday.

It doesn’t hurt that Sephora is also able to track all your purchases through the card so it can more effectively sell its wares to you down the line—Big Brother is indeed watching from under well-groomed eyebrows.

The Beautiful People

The “open-sell environment” that the company promotes means that customers don’t have to feel guilty for laying their paws on the parfum. Instead, they’re afforded full license to handle the goods without the high-pressure sales environment of a department store, yet with more of an upscale feel (and more hands-on access) than your local drugstore. They’re free to explore, experiment, and play to piece together their own individual beauty curriculum—an integral component of the Sephora brand.

The spartan store design promotes ease of use for busy beauties. The major categories (skincare, fragrance, haircare, etc.) are featured in simple glass displays, as neatly organized as a taxonomist’s medicine cabinet, all within easy view (and touch). As long as you know your ABCs (everything’s alphabetically arranged according to brand or designer label), you’ll be able to find your BORBA, Bourjois, and Burberry in short order. It’s a cosmetic shopper’s dream, whether you’re in the mood to spend hours sampling the wares or you actually do need to pick up your beauty products on your lunch hour.

Don’t go searching for Maybelline or Cover Girl here: Some of the store’s most popular brands include Dior, Cargo, and Smashbox, as well as hard-to-find brands such as Fusion Beauty, T3, and Anastasia. They’re all there on the freestanding racks with sticks for perfume sampling, open tubes of lipstick, and a handy bottle of makeup remover to wipe all evidence away before your boyfriend gets back from the Gap and Sharper Image.

Though don’t be surprised if your man sticks around once he’s inside: While most guys wouldn’t be caught dead getting a makeover at the Bloomie’s cosmetics counter, somehow it doesn’t seem odd to see an alpha male sampling Peter Thomas Roth botanical buffing beads inside Sephora. Age knows no bounds within the Sephora realm, either: You’re just as likely to rub elbows with a teenager picking up a Juicy Couture gift set as you are to see her grandmother making a Clinique or Lancome purchase.
The Big Sell

While there are always Sephora staff on the ready to help you with your selection, you don’t have to run through the front entrance to avoid being attacked by the “spritzers” or have to butter up the salesperson to find out the price of that Stella McCartney tote. Employees are all well versed in the art of the subtle sell, knowing when to approach and offer beauty tips, and knowing when to let you enjoy your makeup demo in peace.

In fact, Sephora's hired hands (or “cast members,” as they’re called) are one of the other factors the company hopes to differentiate themselves with. Each team member undergoes intensive training in a skincare, hair care, and general beauty program to assist customers with their inquiries.

In October 2007, the company opened the doors to Sephora University, a 25,000-plus-square-foot training facility with more than 30 programs for employees, including Science of Sephora, a weeklong class in general beauty; Encore classes, an additional weeklong session that allows employees to specialize in skincare, color, or fragrance; leadership courses; and product master classes provided by individual cosmetics brands themselves to teach specific techniques unique to each brand (though, unlike department store counterparts, Sephora consultants aren’t “encouraged” to push certain brands on their unsuspecting clients).

To pump up their workforce (and ostensibly pump up its image as the “beauty authority”), Sephora also recently conducted a nationwide talent search of its employees and put together its first Pro Beauty Team, which now represents the company at in-store events and fashion shows nationwide (the chosen members also claim bragging rights as anointed beauty gurus in their hometowns).

Strategic Alliances

While it’s positioned itself as the ultimate beauty expert, Sephora isn’t above aligning itself with leaders in other industries to strengthen its own brand position. The first major synergistic relationship it formed was with the J.C. Penney department store chain, creating a “store-within-a-store” retail concept that positions each Penney’s Sephora in the center core of the store, staffed by Sephora consultants. This offensive strategic move indicated the cosmetics giant wasn’t content to passively compete with the department-store cosmetics counter across the mall aisles—it was ready to invade and vanquish from within.

The Home Shopping Network (HSN) was next Sephora’s next co-branding conquest. Starting in February 2007, five hours of HSN programming each month was committed to Sephora shows, featuring Sephora experts presenting a plethora of new products and brands. This enterprise proves lucrative for both companies: HSN ups Sephora’s visibility factor by bringing the brand into more than 89 million households (the network’s increasingly sophisticated 25-to-54 female demographic has long since moved beyond appliquéd cat sweaters and cubic zirconia), and Sephora offers HSN an extensive and popular beauty channel to add to its portfolio.

But though Sephora is all about looking good on the outside, it also recognizes that beauty really comes from within, leading to its teamwork with Operation Smile, a not-for-profit medical organization that offers help to kids with cleft lips and palates. As part of this alliance, Operation Smile’s logo was positioned on Sephora products, raising awareness and funds for the charity (a portion of each sale went to the medical organization).

Of course, high-profile promotions, “university”-trained staff and customer appreciation cards do not a luxury brand make. While Sephora is trying to sell elements of the high life, some in the industry fear that it represents a “dumbing down” or devaluation of true luxury items—after all, where else can you get a hedonistic makeup consultation, then head across the mall to Dave & Buster’s to grab a Bud Light and a game of Skee-Ball?

So far, though, mainly through word of mouth and viral campaigning, Sephora has managed to bridge the gap between drugstore drudgery and department-store counter coercion to enjoy the sweet smell of both its perfumes and its branding success.

Boxed Water is Better: A new water brand ditches the bottle.

A new water brand ditches the bottle.
About 90% of the Boxed Water container is made from renewable resources, trees, which are sourced from certified, ethically managed forests. The package shape and material means the boxes can be shipped flat to the water plant. Because more boxes can fit in a truck than bottles, Boxed Water requires fewer truckloads and, thus, less carbon expenditure.






























Full Credit
Client: Boxed Water is Better
Designer: Benjamin Edgar






















"[We] started with the simple idea of creating a new bottled water brand that is kinder to the environment and gives back a bit. We found that water shouldn't be bottled at all, but instead, boxed. So we looked to the past for inspiration in the century old beverage container and decided to keep things simple, sustainable and beautiful.About 90% of the Boxed Water container is made from a renewable resource, trees, that when harvested in a responsible, managed and ethical way serve as an amazing renewable resource that benefits the environment even as it's renewed. Our carbon footprint is dramatically lower because our boxes are shipped flat to our filler and filled only as demand is created, as opposed to most bottled water companies that ship their empty bottles across the globe to be filled, then ship them back for consumption. The flat, unfilled boxes can fit on 2 pallets, or roughly 5% of a truckload. Empty plastic or glass bottles would require about 5 truckloads. Our cartons can also be broken down to their original flat state, are recyclable in most areas and will be recyclable everywhere shortly. We're also giving 20% of our profits back to the resources our product is composed of--water and trees. Not only does it simply make sense, but we really enjoy supporting water and forestation organizations as it's part of our company's ethos and way of thinking to give back and participate. All that and an over-arching focus on simple and beautiful design that compliments our brand as well as the spaces it's sold and consumed in."

Six Ways with Social Media

Six Ways with Social Media

View more documents from Ayman Sarhan.

Goldschläger

Goldschläger
flakey?
by Abram Sauer
March 23, 2009 issue

For decades, Goldschläger, the cinnamon-flavored alcohol with real gold flakes in it, was a strongly branded product. Recently, however, the brand has weakened, and its decline perfectly illustrates the difference between having a strong brand and having strong name recognition. Let’s begin by examining the main characteristics that differentiate Goldschläger from other brands: 1) it contains real gold flakes and 2) … nothing else.

Goldschläger’s brand is not entirely ineffective, but it is limited by its single-platform approach in such a competitive market. The product’s uniqueness is easily replicable and consequently not a great brand strength. For example, if I launched an alcoholic beverage that contained gold flakes and named it Bullionhessë, I would have already replicated Goldschläger’s core brand strength.

In fact, there are several spirits brands that feature flakes of gold, including Danziger Goldwasser and Gold Strike. Gold Rush is a newer brand (presumably launched to capitalize on Goldschläger’s sudden popularity). Until recently, Goldschläger’s dominance over these competitors was largely due to favorable distribution. How many bottle shops need to carry a full line of gold-flake-infused spirits?

Originating in Switzerland and now homed in Italy under the Diageo stable of spirit brands, little can be easily learned about Goldschläger’s beginnings. (Diageo declined to participate in this profile.) What is known is that it is a cinnamon-flavored schnapps and that the gold leaf floating inside amounts to less than a tenth of a gram. Rumors that the gold creates microscopic cuts that speed alcohol absorption have been largely disproved.

Before addressing the deep shift currently going on with the Goldschläger brand, it’s important to note a fundamental paradox Goldschläger faces: price point. The brand could set a price point that would be on par for a beverage with real gold (!) floating around in it (i.e., the Dom Perignon range), but that would likely result in few consumers because—other than flamboyant grotesques like Donald Trump—genuinely wealthy people tend to want their high-end brands more subdued. Yet, by setting a low price point (i.e., its current sub-US$ 30 one), consumers will scrutinize why a drink that’s supposed to have real gold (!) in it costs about the same as a bottle of mass-market tequila.

For many years Goldschläger existed largely as a novelty—that crazy booze with real gold in it! Then came the rise of Jägermeister, a drink with which Goldschläger would come to share much more than umlauts—namely, a future alongside each other on bar shelves everywhere.

Once a German digestive aide, Jägermeister rose to popularity with hard-drinking American youth thanks almost entirely to marketing by the legendary Sidney Frank (who then went on to make Grey Goose vodka and Corazon tequila top-shelf brands). Jägermeister sales in the US went from just over 50,000 cases a year in 1985 to 2.7 million just 20 years later. The originally-dour brand’s unlikely rise, like Pabst Blue Ribbon beer’s recent explosion, has inspired competing brands and attention, with even the Washington Post throwing in its two cents by declaring, “Tuaca soon will be the new Jagermeister.” A bold statement that will almost assuredly mean it will not.

Somewhere along its move from German diuretic and occasional insect trap bait to college fraternity party staple, Jägermeister became entwined with Goldschläger. A bevy of recipes now combine the two into a rogues’ gallery of shots, including the “Oatmeal Cookie,” “Four Horsemen,” “Viking Funeral,” “JägerSchläger,” “Tonya Harding” and “Dead Hitler.” The difficulty of actually doing a Goldschläger shot (due to intense flavor) has also tied its character to Jägermeister’s. The connection to this “scene” has changed the Goldschläger brand identity from one of novelty item to one associated with drinks that end in the word “bomb.” Its rise in popularity has been noted in pop culture as well, where the brand appeared on the hit show The Office ((Dwight: “Goldschläger. Extra flakes.”) and was spoofed in the film Superbad (as “GoldSlick”).

This brand metamorphosis has been puzzling for Goldschläger. In addition to a change to the brand’s identity there is also a power shift in which half of the brand’s owner-consumer relationship is doing the most identifying. Diageo is losing some control of its brand—a common consequence from a boost in business. The real challenge for Goldschläger, however, is to engage its new identity.

In 2003, Goldschläger attempted to court its new demographic. It went poorly. With ads featuring very young men holding Goldschläger bottles and wearing protective equipment like crash helmets and safety goggles, the brand made the invite: “Drinking a shot with friends should be enjoyable. So be careful out there.” Consumer groups were not impressed or amused. Diageo pulled the ads and appears to have learned its lesson, as no others have been forthcoming.

And why should they? Even without conventional advertising, Goldschläger’s popularity benefits from the undercurrents of the in-the-know. One trip through YouTube’s collection of “Goldschläger” related videos is all the promotion the brand needs. This collection even includes a homemade near-genuine ad. The brand is so at peace with its trajectory that it doesn’t even bother maintaining a website (having been “currently undergoing maintenance” for quite some time).

Yet it is a stretch to think that any of Goldschläger’s current market would want to go to their official site. That’s what a Facebook page is for: “Goldschläger... It’s like someone chewed a shit load of Big Red and spit in my mouth. But it’s totally awesome...” Indeed, Tama of Napa, California, indeed.

With that level of customer loyalty, Goldschläger’s brand is poised to become stronger and stronger one shot a time.

AWM Hot List '09: Top 10 Magazines

AWM Hot List '09: Top 10 Magazines
March 22, 2009
-By AdweekMedia Staff

Methodology

The Hot List and 10 Under 60 Hot list annually recognize consumer magazines with a recent track record of standout advertising revenue and page performance. To be considered, a title’s ad results must be tracked by the authoritative Publishers Information Bureau.

For the Hot List, we look at the last three calendar years, and for 10 under 60, the last two years. Thus, for the Hot List, a title must have been published for at least three years and must have taken in $60 million or more in annual ad revenue, while for 10 under 60, a magazine must have been published for at least two years and reported annual revenue of less than $60 million. You’ll notice that this year, we raised the eligibility cap for the small list to $60 million from $50 million. We did so to reflect the industry’s 23 percent revenue growth since 2003, when the threshold increased to $50 million from $40 million. In examining magazines’ ad performance over time, we give the greatest weight to the most recent year. W

e consider the performance of each title against its category peers, as well as the vitality of the category overall. We also evaluate circulation quality and performance, paying particular attention to the closely watched barometer of newsstand sales for the second half of 2008, as reported by the Audit Bureau of Circulations.

Finally, we consult a number of influential media buyers, who provide insight on which magazines they and their clients favor at the moment. So, please turn the page for this year’s AdweekMedia Magazine Hot List.

1. The Economist 2. Elle 3. People 4. Women's Health 5. Every Day With Rachael Ray 6. Real Simple7. Men's Health8. Family Circle 9. Vogue10. New York

Best Ads March 18, 2009

The week's best TV commercials-a review from BestAds.tv

Subway Art Gallery Opening

From http://improveverywhere.com/, 50 Improv Everywhere agents create and art gallery opening on a subway platform

Gum…Usful

Gmail Offers Point Of Return For Repentant

Spammers March 20th, 2009
Finally, those folks at Google are earning their free lunches.

Today the tech company announced that its Gmail service now has an Undo Send button that lets people stop an email message.

Handy for when you wrote that angry rant just to blow off steam, not to actually dispatch. Or when you accidentally hit “reply all” (a pet peeve of many colleagues here at mobileStorm).

Or when you have second thoughts about sending spam and realize your sender reputation is more important.

Unlike penning a snap-reaction email, though, the “Undo Send’ requires a little forethought. You have to go into “Settings” and the the “Labs” tab to activate it. And it only delays the message for five seconds–so the service doesn’t replace personal responsibility.

Small inconvenience. And a heck of a lot more useful than the drunk-messager test Google crowed about last fall!

Recession-Fighting Incentives

To spend or not to spend, that is the question that a lot of people find themselves asking more and more these days. And while people’s purchase decisions often change when they’re on a budget, the decisions are not always as simple as just comparing price tags. There are two sides to the customer value equation: what you pay and what you get. And though slashing prices can be a quick way to close the sale, most people are still willing to pay for the brands that add value by adding the extras that make it worth it—the assurance that they are spending wisely. These recession-fighting incentives can be a great way to earn the attention, business and, hopefully, loyalty of audiences trying to make the tough decisions between the things they can’t afford and the things they can’t afford to pass up.

With consumers demanding more for their money, more companies are cutting prices to offer the “best deal,” which can come at the expense of the bottom line and brand perception. And now, more than ever, it’s important to stand out. Maybe marketers would be better off fighting the recession with incentives that add value and provide distinct business advantages instead. Creating tangible and rational value allows consumers to spend more wisely especially in this climate of frugality.
Hyundai: Assurance
Instead of simply discounting its already economical line of vehicles, Hyundai is addressing consumer fears with an innovative return policy: Hyundai Assurance. Those who finance or lease a new Hyundai can return the car for no additional charge if they lose their job within a year of purchase.


The incentive has helped Hyundai distance itself from America’s Big Three automakers and increase sales 14%, nearly doubling its Instead of simply discounting its already economical line of vehicles, Hyundai is addressing consumer fearswith an innovative return policy: Hyundai Assurance. Those who finance or lease a new Hyundai can return the car for no additional charge if they lose their job within a year of purchase. The incentive has helped Hyundai distance itself from America’s Big Three automakers and increase sales 14%, nearly doubling its market share as industry-wide, new-vehicle sales fell 37% last month.



Harley-Davidson: Ride Free

Ride Free Guarantee is ideal for riders looking to join the “hog family” and experience the freedom Harley-Davidson promises, but who are also worried about the current financial situation. New owners purchasing a Sportster will have the opportunity to trade it in for the full MSRP at any point within a year’s time. “Ride Free” introduces the idea of trading up within the brand from day one, giving riders the opportunity to test drive their new bike for a year before moving on to higher-end models.





Sears: Layaway
In an effort to entice consumer spending over the holiday season, Sears brought layaway back to its stores — nearly two decades after doing away with it. The program, with roots dating back to the Great Depression, was reintroduced as a direct response to customer demand in the face of the current economic Davidson promises, but who are also worried about the current financial situation. New owners purchasing a Sportster will have the opportunity to trade it in for the full MSRP at any point within a year’s time. “Ride Free” introduces the idea of trading up within the brand from day one, giving riders the opportunity to test drive their new bike for a year before moving on to higher-end

Oh Look, Ford Has an Assurance Program Now

Ford announced today an "It's OK if you lose your job or can't afford the car we just sold you because we'll just pay for it for you like Hyundai" program today, presumably so you'll go buy one of their cars. To incentivize you further: 0% interest on certain Ford, Lincoln, Mercury vehicles. If the "Ford Advantage Plan" feels like a lotion-less HJ, read on; the auto-maker somehow has $700 a month for you, times 12 months, if you lose your job.
If you ask Hyundai, it's all one big goof because according to this one guy who works there, no one has used the program yet. As in zero people, people. That's probably why Hyundai tacked the Plus thing (they pay your loan for three months, then you can sell the car back).

Apple / iPhone: OS 3.0, featuring cut, copy and paste

Apple announced an update to the iPhone operating system at one of its love feasts in Cupertino today. The update will be available this summer as a free upgrade for the iPhone 3G, and for $9.95 for the iPod touch.

Top of the wish list was fulfilled with Cut/Copy and Paste, finally streamlining the OS with a feature that's been in Windows and Macintosh since their beginnings. The system will work by double-tapping or dragging across text, selecting cut, copy or paste in the bubble above it, and then using a similar routine to paste it into another place, or across applications.
What else is new in the upcoming iPhone OS 3.0?

Search: Last year Apple added search for contacts, and now there will be the ability to search your email, calendars, iTunes, and notes. Also added will be Spotlight, letting you search across the iPhone for a keyword.

MMS: the widely adopted Multimedia Messaging System will now work on the iPhone, letting you attach photos or audio clips to text messages for instant, you-are-there fun. You can also forward and delete messages.

Stereo Bluetooth: Inexplicably missing on the iPhone, now you'll be able to listen to stereo music over Bluetooth. Still missing: wireless synching via Bluetooth. The bad news? This stereo Bluetooth goodness and MMS won't work on iPhone 1.0.

Landscape typing in Apple Apps: Now you can turn your iPhone on its side and type with a larger touchscreen keyboards, a feature that was available in some situations but not in email. Finally.

Voice Memo: Record yourself a voice message, play it back easily.

Modified Google Maps application: now lets developers use Google Maps in their apps. But the big news is this will allow "turn-by-turn" applications, bringing GPS navigation to the iPhone. However, because of licensing issues, developers will be required to provide the maps.

Multiplayer connectivity: The iPhone will automagically discover other iPhones running the same app, and you can play games with them. Welcome to the social.

Accessories communication: Apps will be allowed to communicate with external accessories, such as a blood pressure cuff, FM tuner, or equalization for a docked speaker.

Push Notification: While Apple promised one-way background functionality ("push notification") last year but never delivered, Apple's SVP of iPhone software Scott Forstall says he means it this time.

No Background Processing: Apple tried running background processes on the iPhone, but the battery life was reduced by 80%, and there was a significat performance hit. That's why they're going with push notification, a one-way process that lets you know when you've received a message but requires you to open the application to respond.

New Apps: ESPN showed a streaming video application that also takes advantage of the iPhone's push capability, notifying users of sports scores. Electronic Arts demonstrated its The Sims 3 game, flaunting the iPhone's clean playback and animation capabilities. And, you can buy stuff within apps.

What's Missing: Still no support for Flash video and applications in Safari. No tethering, the ability to use the iPhone's 3G connection to get online with your laptop. Even though Apple says it's "supporting tethering on the client side," its providers aren't playing ball just yet. No video recording.