“We believe that every woman should be able to look like a million
bucks without having to spend that much on premium quality makeup. “
e.l.f.
Cosmetics is a company that provides premium beauty products at very affordable
prizes. They have a variety of products like makeup, skin care products, beauty
tools and many others. They have several ways to sell and market those
products. First, they have the online shop, where customers can choose and
order their products directly from the web page http://www.elfcosmetics.com/. Second,
they have a “Beauty Box” that is sent to the customer every 8 weeks once they
have pay a recurrent fee of 20$. Each bundle is guarantee to include at least
40$ worth of full size e.l.f. products. And third they have presence in stores
like CVS, Walgreen and many other.
Customers highly recommend this products because of the quality and
the price. In my experience my first encounter with the product was through
Facebook “target marketing”. They have a strong presence in the ads that I get
on Facebook. After that, I went to the web page and I immediately notice their
prices. I did my first purchase through the online store, and of course, I
signed up for the “Beauty Box”. After a couple of weeks I found their product
in a CVS store, even in some Universities and collage’s Bookstores, but the variety
was very limited.
I think that this company is having a very good response from the
customers and having a vast options on how to get their product is very convenient
for the customer. If I need something I can just go to the CVS store or just
order it online. Also I can “try” their new products by signing up to their “Beauty
Box” membership.
Helping
the Company with a Data Warehouse and Dimensional Modeling
This company is a “young” company and it has been well accepted in
the market. Still, decision making can be very important for the future of the
company. Marketing strategy can be very crucial to know where they can gain
more revenue.
A dimensional model and Data Warehouse can be very helpful for the
company’s decision making. One clear example that I can think of would be the “outcome”
of the Beauty Box membership.
Because is a membership, a customer would have to sign in and make
an account on their webpage, therefore the company has basic demographic
information about the customer, which can help to know “Who is buying our
products?” The intention of this box is to get the customer to try other
products that they would not normally buy because they don’t know about them or
because they “think” they don’t need them. The important thing to keep in mind
about this box is that the purpose is not to generate revenue from the
membership, but mostly to generate revenue through the continuous purchase of
the product that the customer tried from getting the box.
Because of this we can actually see various dimension, facts that
we can explore and questions that can be answer through a Dimensional model.
We can think about the customer: we can answer questions about demographics,
who are they? Who is more likely to continue to buy our products after trying
them through our beauty box? We can also think about the product: What product
category increase their sales when they are added to the Beauty Box. We can
also think about time: How long it takes to individual customers to re-buy a
product after they have received it through the box.
Examples of answers that you can get from a dimensional model that
can help the CEO on decision making can be:
-
When a lipstick is added to the Beauty Box it is likely that the
sales on our online store of that particular product will increase 30% two
weeks after the product was release to the customer. On the other hand a skin
care product would likely take up to four weeks to generate 20% higher demand
on our online store after it was release to the customer through the Beauty
Box.
o
This is an answer that can be derived from a Dimensional model
that takes, product category, store type, sales and Date as dimensions.
o
To create a Dimensional Model that answers this kind of questions it
is important to get the different types of dimensional models, mainly
transactions and periodic snapshots.
o
This can help the CEO when it comes to re-stoking and doing
inventory, predictions like this can help have the product available for the
demand that is getting.
This is only one simple example, focusing only in one of their
ways of making revenue (the “Beauty Box”). A Dimensional Model can help in many
other ways like: marketing, expansion on their presence in local stores, which
products should be sale online and which products should be sale locally, how
is the behavior of the market when a new product is release, etc…
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