DISSERTATION TO FMP PAGE TURNER

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beauty influencers AN INVESTIGATION INTO THE USE OF INFLUENCER MARKETING WITHIN THE BEAUTY INDUSTRY AND THE EFFECT IT HAS ON THE CONSUMER. REBECCA HAMPTON




abstract

Social media is becoming a part of almost everyone’s day to day lives and on these platforms there are certain personalities that have a large following. These people are hugely influential towards certain consumers and can have an effect on their opinions and purchases. This study was designed to explore the effects of influencers within the beauty industry and how they influence consumer’s opinions and purchases. Furthermore, it explored how this has created a need for more brick and mortar stores. Initial research started with secondary research exploring the market and influencers, additionally surveys and focus groups were used to explore this topic in more depth.

The results from these supported the initial aim of the report. This created a deeper understanding of the topic and furthermore created more talking points. The conclusion to be drawn from this report supports the aim as it has been explored and discovered that influencers have an effect on consumers. These consumers are often people who wear make up on a daily basis. Future recommendations have been made to support brands in how they can continue to develop their brand and following, through the continued use of influencers.

6490 WORDS


ACKNOWLEDGMENTS I would like to thank the following people for all their help and support with the completion of my dissertation. Jayne Littlehales - For being my dissertation lecturer who constantly supported and guided me and provided me with endless information. Alison Rapsey - Fashion Business and Promotion course leader at Birmingham City University who supported all students. Everyone who participated in my surveys and focus groups and provided me with information to support my document.



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Abstract

Acknowledgments

List of tables

List of figures

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01

Glossary of terms

Introduction

Methodology

Chapter 1 The beauty market

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27

34

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Chapter 2 Brands and Influencers

Chapter 3 Selfie loving millennials

Chapter 4 Buying beauty

Chapter 5 The future

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Conclusion

Recommendations

Bibliography

Appendix


LIST OF

figures

Fig 1 - Maroon make up look. Page iii Fig 2 - Red lip make up look. Page xiv Fig 3 - Nikkie Tutorials. Page 04 Fig 4 - Jeffree Star. Page 04 Fig 5 - Shaaanxo. Page 04 Fig 6 - Mannymua733. Page 05 Fig 7 - Zoella Fig 8 - Christen dominique. Page 04 Fig 9 - Wayne goss makeup artist. Page 04 Fig 10 - Huda Kattan . Page 04 Fig 11 - Kandee Johnson. Page 04 Fig 12 - Michelle Phan. Page 04 Fig 13 - Pink eye make up look. Page 9 Fig 14 - L’Oreal beauty squad. Page 10 Fig 15 - Lydia Elise Millen Youtube. Page 12 Fig 16 - Yellow cut crease look. Page 14 Fig 17 - Halo eye purple lip look. Page 15 Fig 18 - Shaaanxo x BH Cosmetics palette. Page 17 Fig 19 - Anastasia Beverley Hills x Nicole Guerriero. Page 17 Fig 20 - Morphe x Jacyln Hill palette. Page 17 Fig 21 - Carli Bybel x BH Cosmetics palette. Page 17 Fig 22 - Kandee Johnson x Too Faced collection. Page 17 Fig 23 - Jaclyn Hill x Becca Cosmetics collection. Page 17 Fig 24 - Chloe Morelllo x Ciate palette. Page 17 Fig 25 - Make upGeek x Kathleen Lights palette. Page 17 Fig 26 - Nikkie Tutorials x Too Faced collection. Page 17

Fig 27 - Mac x Mariah Carey collection. Page 19 Fig 28 - Huda beauty lip kits and obsessions palettes. Page 22 Fig 29 - Huda beauty foundation, primer and brush. Page 22 Fig 30 - Huda beauty obsessions palettes . Page 22 Fig 31 - Huda beauty Foundation and brush. Page 22 Fig 32 - Huda Beauty Obsessions palettes and lip kits. Page 22 Fig 33 - Huda beauty foundation shade swatches. Page 22 Fig 34 - Huda beauty lip kits. Page 22 Fig 35 - Huda beauty foundation box. Page 22 Fig 36 - Collection of huda beauty make up. Page 22 Fig 37 - Black lip make up look. Page 26 Fig 38 - Holly Boon selfie. Page 28 Fig 39 - Shani Grimmond selfie. Page 28 Fig 40 - Jamie Genevieve selfie. Page 28 Fig 41 - Red/pink make up look selfie. Page 31 Fig 42 - Bretman Rock selfie. Page 31 Fig 43 - Denim, make up looks selfie. Page 31 Fig 44 - Allan Craig selfie. Page 31 Fig 45 - Purple make up loo. Page 31 Fig 46 - Patrick Starr. Page 31 Fig 47 - Smiling male beauty influencer selfie. Page 31 Fig 48 - Influencer kissing a product. Page 31 Fig 49 - Selfie with sunlight. Page 31 Fig 50 - Halo eye, dark lip make up

look. Page 32 Fig 51 - Smoked out eye make up with a gloss lip look. Page 33 Fig 52 - Cut crease golden make up look. Page 35 Fig 53 - Space NK Logo. Page 36 Fig 54 - Beauty Bay logo. Page 36 Fig 55 - Cult Beauty logo. Page 36 Fig 56 - Glossier pop up store. Page 38 Fig 57 - Shop that start up in messenger. Page 41 Fig 58 - Shop that similar pages in messenger. Page 41 Fig 59 Shop that following information in messenger. Page 41 Fig 60 - Golden make up look with stars. Page 42 Fig 61 - Green eye make up look. Page 46 Fig 62 - Pink and maroon half cut crease make up look. Page 47 Fig 63 - Gigi Hadid with hands on face. Page 63 Fig 64 - Maybelline x GiGi Hadid collection. Page 63 Fig 65 - Highlighter product. Page 63 Fig 66 - Smashed powder. Page 63 Fig 67 - Glitter liner cut crease. Page 63 Fig 68 - Gigi Hadid sat down. Page 63 Fig 69 - Make up look with gigi x maybelline collection. Page 63 Fig 70 - Maybelline foundation. Page 63 Fig 71 - Eye make up. Page 63


glossary

BLOGGER – Someone who creates content in the form of images and text. VLOGGER – Someone that creates YouTube videos about their lives daily. INFLUENCER – Someone who has a large following on their social media pages. ASA – Advertising Standards Authority CAP – Committee of Advertising Practice MAC – Makeup Art Cosmetics CULT BEAUTY - Online beauty retailer that sells specially selected products from all over the world.


introduction

In todays world full of social media, selfies and this somewhat idea of perfection being created, there is a huge influence over consumer’s opinions and buying habits. This influence comes from public figures who have a large, loyal following on social media sites. The following study explores the effect that beauty influencers have in the beauty industry and how they use their knowledge to build their following and their own brand. In addition to this they have caused an increase in the number of brick and mortar stores due to their online content. “Influencer marketing is the digital, modern-day word of mouth. It focuses on the authenticity of an influencer which leads to a trust relationship with their followers.” says Tania Bunic, influencer marketing consultant at affiliate network Awin (Stewart 2017) Choosing an influencer for a brand to work with is crucial as they need to make sure that the influencer is authentic to their beliefs and followers, in order to connect with their followers and make sure that they are influencing their purchases. For some millennial’s social media platforms, particularly Instagram, have become a main part of living their day to day lives, constantly taking selfies, uploading them and checking content on other people’s accounts. It has almost become a source of acceptance, but sometimes has negative effects on the mindsets of young girls. “Instagram has in some cases grown way bigger than other social medias, the amount of followers are so massive and big now, and the fact that they reach people in real time, it makes such a fast and big impact.” Rasmus Storm, Founder & Owner of Storm Copenhagen. This topic of research comes from the researchers love of make-up, social media and following public figures. They themselves are majorly influenced by the opinions and purchases of influencers therefore they are wanting to conduct research into this topic deeper to understand the effect that influencers have on the beauty industry as a whole.


AIM To understand the importance of influencer marketing and blogger collaborations for brands and the effect that they have on the consumer and how it creates a need for more brick and mortar beauty stores.

OBJECTIVES To establish the historical background within marketing and how marketing methods have changed to meet the needs and wants of consumers and increase brand’s sales. To explore influencer marketing within the beauty industry and the effect that this has on the consumer and their spending habits. To asses how the beauty market has changed and developed with the use of influencer marketing and how this has caused a growth in brick and mortar stores.


methodology

SECONDARY RESEARCH ONLINE ARTICLES & JOURNALS To start research within this topic the researcher first used online articles and journals to collate various pieces of information about this topic to create an initial talking point. Although all information available may not be accurate the researcher used reliable sites such as Mintel, Forbes, LSN and business of fashion to ensure that the research used within this document was correct. VIDEOS As the researcher was unable to interview some of the influencers they desired too, they used interviews that already existed to ensure that they had personal view points of influencers. One interview video in particular played an important role within the report, as it aided the researcher in creating a case study on Huda Kattan and the brand that she has created through her social media platforms.

PRIMARY RESEARCH QUESTIONNAIRE In order to gather accurate information and statistics regarding the topic the researcher created a survey that was sent out to 100 female consumers, aged 17+ that are users of social media platforms. The reason that the researcher selected such a broad age range for the survey was because they wanted to understand the effect that influencers have on a much wider audience rather than the younger age group that is focused on in this report. This initial questionnaire was sent out to via social media platforms, as this was the best way to ensure that the survey respondents used social media. The full results from this survey can be found in Appendix A. Whilst completing the report another survey was created that focused on MAC cosmetics. This was sent out to females aged 14+ who currently use MAC make-up. This survey aided the researcher in completing a case


study on the brand to further understand how their brand collaborations influence the consumer. FOCUS GROUP A focus group allowed the researcher to expand a deeper understanding into the thoughts and opinions of people who are make up addicts. In this report, make up addicts have been categorised as people who are constantly seeking out new brands, products and influencers on social media. They make purchases of make up products at least 2 times a month. The group was formed up of 4 females, in the age bracket of 18-25 with a range of demographics. The researcher started off by asking the reason behind them loving make up so much which then led to a discussion, and the researcher asking further questions. EXHIBITIONS & INDUSTRY EXPERTS Stylist Live is an event based on the Stylist magazine that involves fashion, beauty and lifestyle topics. The exhibition involved

various talks and workshops with talent and speakers, including 3 social media influencers who played an important part in the exhibition. This event allowed the researcher to gather information and quotes first hand from influencers and their thoughts, beliefs and own story on social media. Hannah Witton, Alice Living and Megan Jayne Crabby are all social media influencers who focus on completely different topics but still continue to play a large role in the social media influencer world.



CHAPTER The beauty industry 1.1 - The Market 1.3 - Influencers 1.4 - Top beauty bloggers 2017


52% of cosmetic or skincare purchases are influenced by beauty experts on social media and 44% by beauty brands on social media, according to a Facebook IQ survey of women aged 18–44 in the US (Walker, 2017) These survey results prove that influencers have a profound effect on consumer purchases. Thus, in this study the researcher will use this evidence to provide a more thorough examination into how these beauty experts influence individuals via the power of social media. The most recent statistic shows that in 2016 the beauty and personal care market is estimated to have grown by 0.4% to £9.8 billion in 2016, with the online beauty market currently estimated at £1.1 billion (Mintel, 2017). This shows how important the industry is within the consumer world and in this market influencers are starting to play a much bigger part. Not only are they marketing tools for brands, they influence buying habits and create their own brands. In 2001 Leonard Lauder, the chairman emeritus of Estee Lauder, bought what it is called the Lipstick effect into the spotlight. He observed a consistent pattern of rising beauty product sales during recessionary periods, dating back to the great depression (Thomas, 2017). Sales figures from

the market

one of the world’s largest cosmetics companies - L’Oreal - revealed that during 2008, a year when the rest of the economy suffered record declines in sales, this cosmetics leviathan experienced sales growth of 5.3%. (Persaud, 2013) This suggests that women are constantly yearning to purchase beauty products even when in reality they may not be able to afford to.

According to a report from Fashion and Beauty Monitor, 57% of companies in the sector use influencers to market their products. A further study by, Santa Monica-based influencer marketing industry, Mediakix says the influencer Instagram market will reach a total value of £1.81bn ($2.38bn, €2.05bn) by 2019. Putting two and two together creates a myriad of opportunities for social media to be exploited by both businesses and influencers alike, to entice could-be consumers.


influencers

Influencer marketing has seen growth in the beauty industry due to the need of more beauty tutorials and an increase in use of social media platforms. The Instagram influencer marketing industry is expected to exceed $1 billion by the end of 2017, and more than double by 2019 Mediakix forecast these figures by studying the #spon #sp and #ad hashtags on the platform, which saw over 9.7 million posts tagged in 2016, with 14.5 million expected for 2017. (Forbes Africa, 2017) This shows how well the beauty market is performing and it is therefore understandable as to why there has been a rise in the number of US beauty brands coming to the UK, why more beauty brands are being created and why more brick and mortar beauty stores are being made. Influencers can be found on any social media platform, whether It be Instagram, Twitter or on their own personal blog webpage. They use these platforms to create a brand and gain a loyal following. This allows both the influencers and followers to become connected and for the most successful influencers, to work with some of their favourite brands. The content that beauty influencers create is often make up looks, whether it is in the format of an image, or a short video tutorial. In the blogging industry influencers can often be categorized into the type of influencer that they are depending on their following size. Influencers with followers between the 5k and 100k mark are seen as micro influencers, these can often have a much more loyal following. Mid influencers have between 100k – 1m followers, and macro influencers have 1m+ followers. However, these influencers may not have as much of a loyal following as micro influencers due to the large number of followers. This means it is important for brands to carefully select which influencers they want to work with, as if they were to select the wrong influencer for their brand, the consumers they are targeting can be completely wrong.


For the first time this year, Forbes created their list of top influencers, including categories of beauty, fashion and travel. Their top 10 beauty influencers list includes professional make up artists and amateurs reviewing drugstore products on camera, see the images of the influencers below.

NIKKIE DE JAGER

JEFFREE STAR

SHANNON HARRIS

CHRISTEN DOMINIQUE

WAYNE GOSS

HUDA KATTAN

TOP 10 BEAUTY INFLUENCERS 2017


ZOE SUGG

MANNY GUTIERREZ

46,543,975 subscribers

16,672,533 likes

49,157,110 followers

11,608,220 followers

MICHELLE PHAN

KANDEE JOHNSON


IN THE PAST, THE ONLY WAY YOU COULD LEARN ABOUT MAKEUP WITHOUT GOING TO SCHOOL FOR IT WAS THROUGH BOOKS, AND EVEN THEN THOSE ONLY HAD ILLUSTRATIONS THAT WERE JUST RUBBISH.



CHAPTER Brands and influencers 2.1 - Campaigns 2.2 - Sponsored posts 2.3 - Collaborations 2.4 - MAC Case study 2.5 - Own product lines 2.6 - Huda Kattan case study



campaigns

#BEAUTYSQUAD


L’Oreal, who had the greatest growth in market share in 2016 (Mintel, 2017), created their Beauty Squad which involves them working with 8 different influential YouTube bloggers to create videos and articles on the latest beauty trends, including hair, make up and skin.

that made many headlines online on pages such as Glamour, Elle, Refinery, People and many more US and UK websites. For the first time ever, earlier this year Maybelline announced that they would be working with an influencer, and to make this even more of a big deal, it was a male beauty influencer. Manny Gutierrez, also known as Manny MUA, has 4.1m followers on Instagram alone and more than 3 million YouTube subscribers.

Lydia Elise Millen (2017) a successful beauty, fashion and travel blogger and vlogger said “We often feel in order to succeed at something, we have to emulate someone who is already successful, but one of the most wonderful aspects of blogging is the fact that it encourages individuality. So be yourself, Manny said “I was thrilled to be able to work embrace what makes you unique and enjoy with a global brand like Maybelline that is the ride”. recognizing male influencer talent and is willing to shine a spotlight on it.” (Reimel, 2017) This indicates that within blogging and social media, individuality is important in order to This suggests that male influencers are succeed and build a trustworthy following and becoming more popular in opening up about to also be different to every other influencer their hobbies and becoming more of an that is creating social media content. It can influence in the industry. For years, women be very easy to follow recent trends and do have always been featured in campaigns, ads what everyone else is doing thanks to the and social media but now male influencers are ease of social platforms in order to gain and being given their chance to showcase their keep your following whilst being a social media talent and open up a whole new world in the influencer, you need to stay loyal to yourself, industry. The researcher has conducted more the brand you are creating and your morals. in depth research into male beauty influencers later in this research documented in chapter Apart from L’Oreal there have been many 3.3. other brands who have worked alongside influencers in creating campaigns such as Please refer to appendix D for a Maybelline NYX however there is one particular campaign case study.



sponsored posts There is still a lack of disclosure when it comes to influencers creating posts on social media sites. Brands often pay influencers to advertise their brand or product however not all influencers wish to disclose whether they have been paid for the post. In order to ensure that influencers and brands are being honest about a product being advertised rules have been created by the Advertising Standards Authority (ASA), the Committee of Advertising Practice (CAP) and the Influencer Marketing Committee (2016). “It’s kind of getting out of hand a little bit now, because I feel like celebrities, especially, belong to another group that feel like they do not have to disclose. I feel like there does have to be some sort of regulation. If it is a legal requirement, then there should be some sort of legal repercussions for both the brand and the influencer.” says lifestyle blogger Scarlett Dixon (Scarlett London, 2017). This suggests that influencers are aware of the legal requirements created for disclosing paid posts, however not all influencers are still disclosing this information on their posts. For the influencers, dishonesty about adverts and sponsors may cause a decline of followers and their level of trustworthiness may not be seen as credible, meaning their followers may not listen to their opinion in the future. When asked about transparency regarding sponsored posts on social media, Influencer Megan Jayne Crabbe, also known as Bodyposipanda on Instagram responded “Guidelines are getting stricter, and that’s a good thing” (2017). Similarly, Hannah Witton, best known for her truthful, possibly too explicit for some people, videos on YouTube, agreed “Even before the ASA guidelines came in I remember always being really transparent, saying this product is sponsored by this brand. As a viewer and consumer of social media, it does frustrate me seeing something that hasn’t been declared and as someone who works as an influencer I can see what has been sponsored. The guidelines that we have in the UK currently are spot on. I will always be as transparent as possible.” (2017) This suggests, disclosing this information is all about transparency and being honest in the fact that some people make a living off their social media pages and blogging.

#AD




brand collaborations Continuing on from chapter 2.2 there are many influencers out there who will proudly admit to collaborating with and being sponsored by brands. Brand and influencer collaborations are becoming more and more popular due to the increase of influencers on social media. Collaborations are popular in all industries, especially in fashion, not just beauty.

The focus group that the researcher conducted found that for make-up fanatics the reason that they purchased beauty brand and influencer collaborations was because they believe that the quality of the product is higher. This is due to the perceived notion that the influencer would not want to sell something that they wouldn’t use themselves. However, when the researcher questioned female’s aged between 14 and 30 they found that the majority of these female’s didn’t buy from any influencer or celebrity collections. The reasons that they gave for this was because they believed that the name to the collection was a gimic and that the products would have been released regardless. Please refer to appendix 2 to view the full results from the questionnaire. Regarding collaborations, the primary research that has been collated proves that it is only people who are genuinely obsessed with buying and using beauty that buy from beauty collaborations. People who don’t tend to have a large interest in beauty only buy products that they need at the time of purchase, if a product has run out or is running low.



M.A.C COSMETICS

One beauty brand that is constantly collaborating with influencers and celebrities is the popular MAC cosmetics, a brand that is well-known for its expertise in makeup artistry (MAC Cosmetics, N.D.). Over the years MAC has collaborated with a variety of celebrities and influencers ranging from Diana Ross to Caitlyn Jenner to Fleur De Force. Earlier this year MAC collaborated with 10 influencers from across the world, including Fleur De Force and Alessandra Steinherr from the UK. They worked along side other influencers including Gabriel Zamora, EnjoyPhoenix, Nikkia Joy, Fouz, Samantha Ravndahl, Vic Ceridono

case study

and Laura Lee. These collaborations included the influencers working along side M.A.C in co-creating one lipstick each that represented them and their style. In order to understand consumer buying habits with regards MAC’s collaborations the researcher conducted a survey asking females aged 14-40 if they had ever bought a product from any of MAC’s collaborations or special collections. The researcher found that 65% of them hadn’t meaning that only 35% had purchased an item from any of MAC’s collaborations. This research shows that special MAC

collections do not have any effect on the consumers buying products created by them. Respondent 1 said “I just love the MAC classics. I’m not easily swayed by celebrity endorsements on the whole. It’s all about formulation for me. Perhaps I just don’t like any of these specific celebrities?” This quote shows that not everyone is swayed to buy a product just because it has been created/endorsed by a celebrity or influencer. Some of the reasoning behind this was explained by further respondents as the disliked products prices being upped just because of the celebrity used on them.




BLOGGERS OWN

beauty brands

There are various You-tubers who over the previous few years, thanks to their huge and dedicated following have been able to create their own beauty brands. For example Tanya Burr, Marlena Stell, Huda Kattan, Zoe Sugg and Jeffree Star are all beauty influencers who have created brands and ranges of their own. Zoe Sugg, also known as Zoella, started posting vlogs back in 2009, from her bedroom, which she still does now, the only difference is her current vlogs take place in her four-bedroom home that she bought herself. After growing her social media audience Zoe created a beauty and skincare line that is sold in beauty retailer Superdrug. Forbes has named Zoe Sugg as the top influencer on their first ever Top influencers list beating Michelle Phan, the founder of Itsy subscription box and Huda Kattan, founder of Huda Beauty. (Forbes, 2017). As well as creating her beauty Line, Sugg has collaborated with various brands online but also broke records in the United Kingdom for first-week sales with her first book ‘Girl Online’ (O’Connor 2017).



HUDA KATTAN Continuing on from chapter 2.5 the researcher is conducting more in-depth research into Huda Kattan and her booming beauty empire Huda Beauty, in order to understand how well her beauty brand is performing against traditional brands that have been around for many years. Huda Kattan is a beauty entrepreneur, who started out as a blogger and You-tuber and is now selling false lashes, lip kits, foundation and more, all through her beauty line Huda Beauty which she founded in 2010. She trained as a make up artist in LA, then after visiting a store called Naimie’s she started cutting and gluing her own lashes which then later got developed in to her own line of false eyelashes. Due to a lack of money to create these products her and her family packed her own lashes before sending them to Sephora, which is owned by LVMH. Kattan still continues to be very involved with all the work she does. Alessandra Steinherr said about Huda “You put lashes on the map again. It was not something that in your daily routine that women would do every day.” (2017) This literature evidences that since Kattan created her line of false strip lashes it has become a part of women’s every day routines to apply and wear false lashes, where this was not done before. Also since the launch of her strip lashes there has been an increase of eyelash brand startups on Instagram which evidence the effect that her brand has had on consumers and the opportunity for more

case study

individual brands selling false lashes. Huda Beauty’s highly anticipated Faux Filter Foundation had a large waiting list on Cult Beauty before it was even available, and there is still a waiting list for some of the shades that are unavailable.

When Steinherr asked Kattan about the availability of make up on social media Kattan replied with “It’s a very cool time we live in, its so dynamic, things are moving very fast. It’s so easy to immerse yourself into different things and to be inspired by Pinterest to be more experimental. I think Individuality is celebrated a lot more than it used to be.” Social media is a platform where people are able to express themselves and their talent and can also be a platform to inspire others to create what they want and to be proud of who they are and what they do. Instagram is a great place to seek out new beauty trends, whether they be something that you can apply to your every day make-up routine or whether they’re something that are different and unusual. A report from Mintel shows that despite Huda Beauty being new to the UK market, they scored highly in a questionnaire for differentiation. Innovativeness was also scored highly within the questionnaire which could possibly be due to the unusual and innovative make up tricks, hacks and solutions that Kattan promotes on her social media sites, which was how she first started out as an influencer on social media. Some of her hacks include using cotton wool for lash extensions, lemon to brighten your underarms, or onion to create a fuller looking brow.



BEAUTY CAN CHANGE THE WAY A WOMAN FEELS, AND AN EMPOWERED WOMAN IS FEARLESS; SHE’S UNSTOPPABLE… SHE CAN TAKE ON THE WORLD.



CHAPTER Self obsession 3.1 - Generation Selfie 3.2 - Social media perfection 3.3 - Genderless beauty


generation selfie

With technology forever developing in this day and age, it would be a very odd moment if you were to see a millennial that didn’t own a phone, or at least have one in their hand at that moment. Instagram is a photo sharing app that allows users to post selfies, Outfit Of The Day (OOTD), their dinner, pretty much anything they wish, as long as it complies with Instagram’s user guidelines. LendEDU conducted a survey in which they asked 10,000 millennial’s in order to find out what social media platform they think is the most narcissistic and the platform that came out on top was Instagram beating Snapchat, Facebook and Twitter. This result suggests that Instagram is used in order to build a public image and feed users ego’s in this digital age where everyone is connected by a username. Social media allows consumers to avoid reality and create a new persona for everyone to see and believe is them, leading the researcher on to the next topic of research - why are we currently obsessed with creating perfection?


social media perfection

Thanks to media positing edited pictures of celebrities on almost every page of a reality magazine and influencers using editing apps and filters to adjust their appearance, together these groups have created an idea of ‘perfection’ that in actual fact doesn’t exist. However, some users of social media believe that this ‘perfection’ does exist due to it being the only thing that they see when using those platforms.

A poll of more than 1,000 young people by the UK charity Girlguiding found that 35% of girls aged 11-21 said their biggest worry online was comparing themselves and their lives with others. (Marsh,2017) This goes to show the huge impact that social media has on what girls think about themselves and the pressure of looking like the individuals they see on their screens. In reality, these distorted images have two filters, a teeth whitening effect and quite possibly a slimming tool used to emphasise their waist. In order to create this idea of ‘perfection’ make up is being used, once again fuelling a need for more brick and mortar stores in order for the consumer to test out make up before buying.


genderless beauty Men are finally expressing the fact that they are also allowed to use make up and it is not just limited to something that should be done by females. Male beauty accounts on social media have become more apparent and with brands now using male’s in campaigns, ads and social media posts it is finally starting to be accepted. As mentioned earlier in chapter 2.1 of this research one of the first brands to feature a male influencer in their campaign was Maybelline, this should encourage other brands to realise that it will not de-value the brand but only create a talking point. Make up brand Illamasqua have joined in on this whole idea of genderless beauty and created a genderless make up line that features Munroe Bergdorf, a transgender model, and Rain Dove, a gender fluid model and activist. In the video Illamasqua uses the sentence “Merry Christmas, celebrate without chromosomes”. This should encourage people to understand that it does not matter if you are male or female you can celebrate and wear make up regardless, because a gender is just a social construct. Make-up allows individuals to play around with gender, to try it on and take it

off again, and ultimately blur the boundaries between what is traditionally seen as ‘masculine’ and ‘feminine’. In the researchers opinion, not enough brands are creating make-up that is for men and women. However ASOS is one of the first brands to create a unisex, genderless beauty range called Face and Body. “As one of the first UK brands to stock men’s make-up brands, we know that this is an area that is becoming more and more important to men.” Alex Scolding, head of buying for ASOS Face + Body, tells LS:N Global. This literature proves that ASOS are keeping up to date with the needs and wants of some of their consumers by creating a make-up range that is not just limited to being used by women. Their face and body range, although in pink packaging, is to be used by women and men who want to express their personality and what they believe in. The researcher believes that more brands should follow after ASOS in creating genderless makeup as not only would they receive more brand recognition due to doing something that wasn’t seen as normal a few years ago, but it would also increase their sales.





CHAPTER More beauty 4.1 - Online beauty 4.2 - Brick and mortar stores 4.3 - Buying through social media



ONLINE With an increase in the presence of beauty brands online, it is much easier to purchase beauty online with the amount of individual beauty websites and beauty retailers that are available. The online market has grown from 2015 to 2016 and is expected to grow again in 2017. “Online spending on beauty and personal care products is estimated to have reached £1.0 billion in 2016 which Mintel estimates as 10.4% of the total market, up from 9.9% in 2015. Mintel forecasts growth to accelerate again in 2017.” (Mintel, 2017) This proves that the online beauty market is in popular demand, with more and more purchases being made at the click of a button. This could possibly be due to influencers tagging and featuring brands in images and videos being shared on social media sites, where it is often easy for

beauty

consumers to get from a makeup look to a website that is selling the products. In the UK there has been a desire for American beauty brands that currently don’t have UK site’s themselves. For example, Anastasia Beverley Hills, NYX, Morphe Cosmetics, Huda Beauty, Makeup Geek and Tarte Cosmetics - just to name a few. These brands are often stocked on beauty retail sites such as Cult Beauty and Beauty Bay, which offer products that are unavailable to UK consumers anywhere else making the unreachable, reachable, all thanks to the world wide web.




brick and mortar

STORES

Over the past year there have been more and more brick and mortar beauty stores opening, and more brands opening up concession stands in department stores such as Kat Von D in Debenhams, NYX in Boots and Selfridges and Huda Beauty in Selfridges. “According to property consultants CBRE, more beauty and health stores opened in Europe in 2016 than any other type of retail outlet. And according to research firm NPD Group, in-store sales of make-up in the UK increased by 7% to £688m in 2016.” (Walker, 2017) The increase in the number of health and beauty stores could potentially be due to the fact that more women are being influenced by social media and watching Makeup tutorials on YouTube. Not everyone has trust in purchasing on the internet meaning it is good to create an in store experience where consumers are able to test out products before they commit to buying them. Too Faced have recently announced that they will be opening their first UK brick and mortar store soon on Carnaby Street, in London which is a delight for all international beauty lovers. Not only is this their first UK brick and mortar store but it is their first ever standalone store in the world. “Opening a Too Faced store is a dream come true, and just in time for our 20th birthday next year! I couldn’t think of a better location than London for our first global flagship as it’s my favorite city.” Said Co-founder of the brand, Jerrod Blandino.


BUYING THROUGH

social media

Beauty brands are becoming more apparent on social media and there are many more niche and product specific brands who are creating start ups on social media platforms, particularly Instagram, as it is such an easy platform to create a following. A new app called ShopThat is a platform that enables users to buy beauty products that they have liked on a Instagram post or a YouTube video. “A lot of these cult brands are small teams who are super-passionate about their products and are without huge marketing budgets. With ShopThat they have a new revenue stream straight from influencers on Social Media.� Ami Moore, founder of the company. This evidences the effect that influencers can have on consumers buying habits as the app easily allows consumers to go straight from liking an Instagram post to purchasing the product on the web without searching the internet to find the product.




CHAPTER The future



the future

After considering all research that has been collated throughout this report the researcher believes there are two paths for how the beauty industry will develop in the future. The researcher first believes that genderless beauty and male influencers will begin to play a much more crucial part within the industry. The market is opening up to the fact that make up is not something that should only be used by women, with a rise of males using it and a rise in male influencers being used my brands as marketing tools. As discussed earlier on in this research report there are a few brands that are starting to be accepting of the fact that make up is not just limited to women. Maybelline is one of the main brands focused on in this report regarding influencer marketing and the researcher believes that they will continue to play a large part in genderless beauty. This could be through the use of more male influencers within their campaigns and marketing strategies. Although they used Manny MUA in their big shot colossal mascara campaign, which was a success, they do not currently feature male influencers on their social media pages. The researcher believes that to play an even larger part in the industry they should consider to do this as there are other brands, who have a larger Instagram following that do feature male influencers on their social media pages. For instance, US makeup brand Anastasia Beverley Hills have a following of 15 million on Instagram

and often feature male influencers. NYX cosmetics have a following of 12.1 million on Instagram and they also prominently feature male influencers. Featuring male beauty influencers on their social media pages may be the reason as to why they have a larger following. Secondly, the researcher has considered that the way in which consumers shop will change and develop to ensure that it constantly meets the needs of consumers. It is important for brands to adapt to new technological advances in order to continue to entice consumers into shopping and making purchases. There are more and more apps and brands being created on social media platforms but these are not being transferred into brick and mortar stores. As reported earlier, the market has seen a growth in the amount of brick and mortar health and beauty stores opening which gives brands the opportunity to expand their base from online to in store. This proves that consumers are still wanting to visit stores before making purchases and do not want to be making purchases online only. In order to develop in store customer experiences that consumers will not forget, brands need to bring elements of technology and social media in to store. As evident and discussed in the report influencers have an effect on consumers purchases which is why the researcher thinks that creating interactive systems in store will entice consumers into purchasing.




This study set out to understand the importance of influencer marketing and blogger collaborations for brands. The second aim was to investigate the effects that influencers have on the consumer and how they have created a need for more brick and mortar stores to meet the needs of what consumers want from the industry. Preliminary research into the beauty market proved that influencers have a profound effect on consumer’s purchases. This was established by a survey that gained results that 52% of cosmetic or skincare purchases are influenced by beauty experts on social media. Additionally, to this the researcher found that the beauty and personal care market had seen a growth of 0.4% in 2016 which Is evident in the increase of brick and mortar stores. In order to be successful and build a strong, trustworthy following to be influential towards consumers, it was understood that influencers need to be individual and be loyal to themselves, their content and their followers. Individuality in the industry can be found through the use of male influencers within brand campaigns. Maybelline understood the importance of this by announcing that they were working with a male influencer whom has 4.1m Instagram followers.

conclusion

The focus group that was conducted presented to the researcher that for make up addicts, collaborations were something that were important to them and had a large influence over their purchases. The focus group proved that these make up addicts had trust in the influencers that they were releasing a product of a high quality and something they would use themselves.

of girls aged 11-21 said that their biggest worry was comparing themselves and their lives to the people that they see on social media. Although this is a negative effect there is still a possibility that influencers have an effect on consumer’s purchases. This is because the consumers have a desire to buy the products that have created the idea of perfection.

The investigation into MAC cosmetics has evidenced against the researcher’s initial aim of the report. MAC collaborations do not tempt consumers into purchasing these products, who do not have a high interest in purchasing make up or any of the latest products. This was shown through the results of the MAC survey, opposing against this, people who do have an interest in the latest beauty products and follow beauty influencers on social media, often buy into special collaborations. These findings suggest that in general, not everyone is influenced in to buying collaborations and that it is the make up addicts who make purchases into these products.

Through exploring the popularity of brick and mortar stores, the researcher found that in 2016, more health and beauty stores opened than any other type of retailer. This was evident through the knowledge of US beauty brands that made a mark in the UK market and further wanted to expand their consumer

The investigation of influencers on social media has shown that they occasionally have a negative effect on consumers. Social media influencers sometimes create the idea that everyone seen on the sites is the definition of perfection. 35%

The scope of this study was limited in terms of not being able to interview beauty influencers, to understand their thoughts on how they influence consumers and what it is like for them to play such a huge part in the industry.



recommendations Based on the results of this research report the researcher recommends that influencers need to continue to demonstrate complete honesty and transparency through all their social media content in order to continue to have an effect on their followers. They can accomplish this by following the ASA and CAP guidelines, that were created to ensure that influencers and brands are honest about a product being advertised. Social media somewhat represents an idea of perfection that doesn’t exist, which could be due to the heavy usage of make up. Without creating a decline in the market, influencers could somehow bring natural make up back as a trend, as this would create less negative effects on the consumer but still continue to influence consumers into making purchases. Having understood there has been an increase in the number of brick and mortar stores and a rise in the amount of purchases made online, it was found that brands need to create new ways of purchasing products, bringing in the element of beauty influencers because as established, they have an effect on consumers and their purchases. This could be implemented in store by having interactive videos as if consumers were talking to influencers in person.



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Forbes women Africa (2017) When it pays to beonline. Available at: https://www.forbesafrica.com/ technology/2017/11/20/when-it-pays-to-be-online/ [Accessed 20th November 2017] Erin Reimel (2017) Manny Gutierrez is the first man to star in a maybelline campaign. Available at: https:// www.glamour.com/story/manny-gutierrez-maybelline-campaign [Accessed 21st November 2017] Clare O’Connor (2017) Forbes Top Influencers: How Zoe ‘Zoella’ Sugg Makes Millions From YouTube Beauty Tutorials. Available at: https://www.forbes. com/sites/clareoconnor/2017/04/10/forbes-top-influencers-how-zoe-zoella-sugg-makes-millions-from-youtube-beauty-tutorials/#7a803f8b7c08 [Acessed 3rd November 2017] Sarah Marsh (2017) Girls suffer under pressure of online perfection. Available at: https://www.theguardian.com/society/2017/aug/23/girls-suffer-underpressure-of-online-perfection-poll-finds [Accessed 16th November 2017]


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www.instagram.com/christendominique/?hl=en [Accessed 23rd October 2017] Gossmakeupartist (2017) Available at: https:// www.instagram.com/gossmakeupartist/?hl=en [Accessed 23rd October 2017] Kandeejohnson (2017) Available at: https://www. instagram.com/kandeejohnson/?hl=en [Accessed 23rd October 2017] Michellephan (2017) Available at: https://www.instagram.com/michellephan/?hl=en [Accessed 23rd October 2017] Lydiaemillen (2017) Available at: https://www.instagram.com/lydiaemillen/?hl=en [Accessed 26th October 2017] Anastasiabeverleyhills (2017) Available at: https:// www.instagram.com/anastasiabeverlyhills/?hl=en [Accessed 1st November 2017] Morphebrushes (2017) Available at: https://www. instagram.com/morphebrushes/?hl=en [Accessed 25th November 2017] Carlibybel (2017) Available at: https://www.instagram.com/carlibel/?hl=en [Accessed 15th November 2017] Beccacosmetics (2017) Available at: https://www. instagram.com/beccacosmetics/?hl=en [Accessed 15th November 2017] Chloemorello (2017) Available at: https://www.in-


BIBLIOGRAPHY tagram.com/lookingforlewys/?hl=en [Accessed 19th November 2017] Wesleybenjamincarter (2017) Available at: https:// www.instagram.com/wesleybenjamincarter/?hl=en [Accessed 19th November 2017] Glossier (2017) Available at: https://ny.racked. com/2016/3/17/11254376/glossier-phase-2-showroom-nyc-shopping [Accessed 24th November 2017] Own image (2017) Screenshot of ShopThat Maybelline (2017) Available at: https://www.instagram.com/maybelline/?hl=en [Accessed 3rd November 2017] Robyn Mowatt (2017) Beauty Lovers, Too faced is opening its First-Ever store in London. Available at: https://hypebae.com/2017/11/too-faced-londonstore [Accessed on 23rd November 2017] Mi-Anne Chan (2016) How social media has changed the beauty industry. Available at: http://www.refinery29.uk/2015/12/182362/beauty-industry-social-media-effect [Accessed 13th November 2017] Forbes (2017) Top beauty influencers. Available at: https://www.forbes.com/top-influencers/beauty/#26472f563378 [Accessed 13th October 2017] Carolina Nicolao (2017) This new foundation has a massive waiting list. Available at: http://www.glamourmagazine.co.uk/article/huda-beauty-founda-

stagram.com/chloemorello/?hl=en [Accessed 15th November 2017] Makeupgeekcosmetics (2017) Available at: https://www.instagram.com/makeupgeekcosmetics/?hl=en [Accessed 15th November 2017] Jazzayling (2017) Available at: https://www.instagram.com/jazzayling/?hl=en [Accessed 17th November 2017] Hudabeauty (2017) Available at: https://www.instagram.com/hudabeauty/?hl=en [Accessed 19th November 2017] Shophudabeauty (2017) Available at: https://www. instagram.com/shophudabeauty/?hl=en [Accessed 16th November 2017] Hollyboon (2017) Available at: https://www.instagram.com/hollyboon__/?hl=en [Accessed 21st November 2017] Shanigrimmond (2017) Available at: https://www.instagram.com/shanigrimmond/?hl=en [Accessed 20th November 2017] Jamiegenevieve (2017) Available at: https://www. instagram.com/jamiegenevieve/?hl=en {Accessed 20th November 2017] Bretmanrock (2017) Available at: https://www.instagram.com/bretmanrock/?hl=en [Accessed 19th November 2017] Lookingforlewys (2017) Availabe at: https://www.ins-


tion-range [Accessed 17th October 2017] Victoria Hall (2017) As MAC unveils its first ever beauty influencers collection, here are the social media stars you should be following. Available at: http:// www.telegraph.co.uk/beauty/people/best-beauty-influencers-have-radar/ [Accessed 21st October 2017] Fiorella Valdesolo (2017) Huda Kattan has 21 million followers, a cult makeup line and something to say. Available at: https://www.glamour.com/story/huda-kattan-has-21-million-followers-a-cult-makeupline-and-something-to-say [Accessed 26th October 2017] Deborah Weinswig (2017) How social media influencers have helped turn NYX and Becca into multimillion-dollar cosmetics brands. Available at: https://www.forbes.com/sites/ deborahweinswig/2017/05/15/how-social-media-influencers-helped-turn-nyx-and-becca-into-multimillion-dollar-cosmetics-brands/#422d85db7a44 [Accessed 26th October 2017] Ryan Mikel (2017) Munroe Bergdorf & Rain Dove star in illamasqua genderless beauty campaign. Available at: https://www.out.com/fashion/2017/11/10/ munroe-bergdorf-rain-dove-star-illamasquas-genderless-beauty-campaign [Accessed 28th Novem-

ber 2017] Caroline Beaton (2017) Never good enough: Why millennials are obsessed with self-improvement. Available at: https://www.forbes.com/sites/carolinebeaton/2016/02/25/never-good-enough-why-millennials-are-obsessed-with-self-improvement/#2c06a097efa9 [Accessed 29th October 2017] Sarah Marsh (2017) Girls suffer under pressure of online perfection. Available at: https://www.theguardian.com/society/2017/aug/23/girls-suffer-underpressure-of-online-perfection-poll-finds [Accessed 12th November 2017] Charles White (2017) Instagram is most popular with ‘narcissistic’ Millennials. Available at: http:// metro.co.uk/2017/04/03/instagram-is-most-popular-with-narcissistic-millennials-6550961/ [Accessed 19th November 2017] Bloomberg Gadfly (2017) Selfie loving millennials fuel brick and mortar beauty boom. Available at: https://www.businessoffashion.com/articles/ opinion/makeup-mavens-meet-selfie-snappers-inshopfront-surge [Accessed 31st October 2017]


APPENDIX A

HOW OLD ARE YOU?

WHICH OF THESE SOCIAL MEDIA PLATFORMS DO YOU USE?

WHICH OF THESE SOCIAL MEDIA PLATFORMS DO YOU USE THE MOST?

DO YOU FOLLOW ANY INFLUENCERS ON YOUR SOCIAL MEDIA PLATFORMS?


DO THEIR OPINIONS EVER HAVE AN EFFECT ON YOU?

WHICH OF THE BELOW WOULD HAVE MORE OF AN EFFECT ON YOU?


APPENDIX B HOW OLD ARE YOU?

HOW OFTEN DO YOU BUY ANYTHING FROM MAC?

WHY DO YOU BUY FROM MAC?

DO YOU EVER BUY FROM SPECIAL MAC COLLECTIONS/COLLABORATIONS?

WHY DO YOU NOT BUY FROM SPECIAL MAC COLLECTIONS?

WHY DO YOU BUY FROM SPECIAL MAC COLLECTIONS?

- Too expensive, just a gimic, only difference in the product is the packaging - I didn’t know that they did special collections. - There hasn’t been anyone that I’ve been a big enough fan of to want to buy the products. - I would like to but it’s too expensive. - Don’t manage to buy in time, collection goes before I manage to make a purchase. - I just don’t buy into a product just because a celebrity has collaborated or endorsed them. - Sometimes they are not the product I need at that time - I wouldn’t buy something just because it has a celebrity’s name on. If I loved the product but it just happened to be part of a celebrities collection, then maybe...but that hasn’t happened so far with MAC.

- Because they are usually most hyped about and i like the feeling of buying something limited edition. - Ariana Grande - amazing colours, amazing girl, - I liked the colours in the collection. - Mac Cinderella as I love Disney and a lot of their Xmas collections as they are nice for a treat over the Xmas period. - They make great presents. - They are limited edition which creates an excitement for me.


WHICH OF THESE COLLECTIONS HAVE YOU BOUGHT FROM?

DO BRAND COLLABORATIONS MAKE YOU WANT AN ITEM MORE?

WHY DO BRAND COLLABORATIONS MAKE YOU WANT AN ITEM MORE?

WHY DON’T BRAND COLLABORATIONS MAKE YOU WANT AN ITEM MORE?

- If it is someone I am inspired by in terms of their make up looks i’m most likely to try a collection they have brought out. - You think the product must be good quality/make you look good if a celebrity has designed/endorsed it. - Makes you feel good, feel closer to the person who it was inspired from. - Because they are high in the media and advertise it well. - I would probably want something more if it was a celebrity I liked - Because if two brands you love collaborated you likely to like the product. I find makeup nice items to collect. - Make it feel more luxurious - If i like the celebrity that has created it.

- The collaboration doesn’t effect the making of the product. Something similar would get released regardless. - I only buy what I need - I just love the MAC classics. I’m not easily swayed by celebrity endorsements on the whole. It’s all about formulation for me (although I did initially try one or two items from Kat Von D’s makeup line because I love her...but the products are amazing so that’s why I kept buying). Perhaps I just don’t like any of these specific celebrities. - Don’t buy for the collections just if I like the product. - Doesn’t matter, if I like the product that’s the reason I’ll buy


APPENDIX C

focus group The researcher used 4 female participants aged between 18 and 25, who are what they class themselves as make up addicts. They are constantly seeking out new products to try, watching make up tutorials and buy a piece of make up at least 2 times a month, if not more. To begin the discussion, the researcher asked the following question: So, you all are huge make up fans, as I can see by the way you have presented yourselves today, what is the reason behind you loving make up so much?

Georgia: The reason that I personally love make up is because of the way it makes me feel. I feel so much more confident when I have make up on and it is only on a very rare occasion when I don’t leave the house without make up. I’ve got so used to seeing myself with it on that I no longer like the way I look without it. Emily: It’s exactly the same for me, I feel super sassy and confident with make up on and I think for me social media plays a huge part in this too. On social media you hardly ever see women without make up on and all those women that you see on the sites are always perceived as this idea of perfection so I suppose if I try and make myself look like them I would almost be seen as perfect to. Beth: For me it’s how I kind of present and express myself. I think make up is much more than just putting on some foundation every day in the morning, its such a great way to express yourself, it’s a form of art. There are some really talented people out there who can do amazing things with make up. Hayley: When I think about it I’m not really sure why I love

make up so much, its just something that I enjoy doing. I was constantly watching you tube tutorials of beauty influencers and I saw that they had a real skill and I suppose that was what I wanted as well. I wanted to follow them and learn those skills and use them to my advantage. Which is why I am a freelance make up artist on the side of my normal job. Its so interesting to hear you all your reasons as to why you love make up and its interesting to hear that some of you do it for confidence. Following on from your answer Hayley I want you all to tell me and discuss your thoughts on beauty influencers.

Hayley: Yeah I really love beauty influencers. They all seem like great people and they’re a really great platform to learn from. They taught me so many things, and they don’t really follow a rulebook as such. They just kind of do what they want, they really inspire me when creating looks for clients. Beth: I agree with Hayley on that comment, they are a great platform and they have this massive following and people just love watching them. Georgia: I follow a lot of beauty influencers on social media sites and I especially love Holly Boon and Shani Grimmond, I like it when beauty influencers post about their lives in general too. Its really interesting to see how they live their lives away from putting make up on their face. For me as well they influence me in to buying products, if I see a product that 10 different influencers are raving about and making a deal of, I go out and buy that product because I know that it’s a good product. Emily: I definitely agree with you there Georgia, they are constantly influencing me and the purchases I make. If there’s a product that I keep seeing being used then I want it. Because as you said you know it’s a good product if it gets approval from some of the best influencers in the industry. Hayley: I have to agree with you too Georgia, for me its important that I use quality products on my clients, and a lot of products that I now swear by have all come from recommendations by influencers. I think for people who have a large interest in make up they take influence by these people but maybe not so much for people who don’t really wear make up on a daily basis. My


sister hardly ever wears make up, she only wears it for special occasions so she doesn’t really have an interest in make up. She definitely doesn’t follow any influencers on social media, so she wouldn’t get that influence.

Researcher: It’s great that you’ve started talking about that because I did want to ask you about the whole influence thing, so beth been as you never mentioned this earlier, do influencers have an impact on the purchases you make? Beth: Yeah definitely like the girls all said because we follow them, we’re constantly seeing new products, that are being used by so many different people, and it’s like why wouldn’t you have trust in a product that is being used by some of the top influencers in the industry. As well for me 99% of the time I buy into products that have been co-created by influencers, say if an influencer has collaborated with a brand. I think we have trust in them with these because we don’t think that they would create a product that they wouldn’t use themselves. Emily: Yeah I think brand collaborations are an important part of the industry, there are some really talented influencers who have been lucky enough to collaborate with brands. Like when Jaclyn Hill collaborated with Morphe to create her palette and everyone went mad over it because she’s so talented in what she does. When that palette finally got released in the UK on Beauty Bay I remember it selling out in less than a day because it was popular with so many people. Luckily I managed to get my hands on one, I just had to have it. Georgia: I understand you with that Emily, I wanted that palette so much I ordered it from the American Morphe site, as well as paying for the palette I had to pay postage and taxes on top of that. I think I ended up paying about £80 for it in the end, when it retails on Beauty Bay for £37. So I think that just goes to show the lengths some of us go to, to make sure that we get products that are being hyped about on social media. Researcher: Thank you for your time today, it has been really interesting to hear your thoughts on influencers and for me to learn more about how they effect consumers like you.


APPENDIX D

MAYBELLINE NEW YORK

Maybelline New York was founded in 1915 after a young woman named Maybel used petroleum jelly on her eyebrows and lashes to enhance them and get the man that she wanted. Her brother Tom Lyle Williams noticed this and that’s when he founded Maybelline, naming it in honour of his sister (Maybelline, N.D.) Now in 2017, Maybelline Is available in over 129 countries worldwide offering colour cosmetics to consumers that are on trend and have been created with advanced formulas and their parent company, L’Oreal raked in $27.2 billion in 2016 (Matusow, 2017). Across the three social media platforms, Tumblr, Instagram and Pinterest, Maybelline beat all of its competitors in a social media engagement analysis, according to shareIQ. Brands included in this analysis were Maybelline, Estee Lauder, L’Oreal, Revlon and Lime Crime. In order to gain this unrivalled engagement in comparison to the other brands, Maybelline strategically uses influencers in their own marketing, via campaigns and their social media pages, and they also work in partnership with influencers for them to create

case study

content for their own social media pages.

sold in include Superdrug, Boots and online retailer ASOS.

In order to gain more in depth findings of how Maybelline markets their brand and product, the researcher has created a marketing mix exploring the 5 p’s:

Price – The price category that Maybelline provide is high street prices, they offer excellent value for money, allowing the consumer to buy a range of products for the price of one high end beauty product.

Product - Maybelline offers colour cosmetics with a range of over 200 products including their colossal big shot mascara, fit me foundation range and colour show nail varnish. Their products are no longer tested on animals which plays an important part in their brand as cruelty free products are becoming more important to consumers now. Their first ever product was the Maybelline cake mascara which was initially only available through mail order, then the signature red eyebrow pencil become available, followed by coloured eyeshadows. Place – Maybelline is an international company, with over 129 stores worldwide but their headquarters based in the United States. Maybelline products are available to buy from retailers, drugstores and supermarkets however they do not sell their products directly. Some of the stores their products are

Promotion – Maybelline was one of the first companies to advertise on radio which caused sales to increase by unprecedented amounts. Maybelline is one of the very few beauty brands to use a male influencer as the star of their most recent campaign. They continue to promote social media influencers on their social media pages. People – Maybelline works with celebrities as well as influencers as a way of increasing brand sales and to reach a wider audience. Previously this year, Maybelline collaborated with model GiGi Hadid in creating her coast to coast collection which included eye shadow palettes, make up brushes, lipsticks, mascara and more. They have also collaborated with @ makeupbyshayla who created a limited edition mini eye shadow palette.





final major proje


ect...



NYX COSMETICS






REBECCA HAMPTON 3124 WORDS


01. 03. 07. 17. 29. 38. 45. 51. EXECUTIVE SUMMARY

THE CONCEPT

THE CONSUMER

COMPETITORS

OPERATIONS

MARKETING

FINANCES

CONCLUSION


EXECUTIVE SUMMARY NYX Cosmetics is an American beauty brand making their way in to the UK beauty market, through concession stands in department stores and very few stand alone stores. The lack of retail presence means they are unable to supply consumers with face to face experiences and solely rely on online content. The brand was Founded by Toni Ko in 1999, and since then the brand has continued to grow thanks to its consumers and work with beauty influencers. The brand start up happened because Toni Ko noticed a gap in the market for high quality products but at affordable prices. Influencers played a massive part in the growth of the company, as well as a discontinued white eyeliner. When she noticed that all these sales were coming from Influencers mentioning her products on YouTube in videos, they started sending freebies to all these social media stars. That is why it is important to continue collaborating and working with beauty influencers, through this concept, as they provide a whole other platform and potentially reach new consumers. Currently, the UK beauty market fails to supply the same services and technology as the US market. Augmented Reality has become extremely popular with beauty brands and is used globally, however there is a lack of it used in store for consumers. Brands are failing to give consumers experience’s that are different to the usual. Of which is a beauty assistant putting make up on the face and not explaining the products or how to use them. The current consumer for NYX cosmetics are skilled

and talented people who go against the ordinary with makeup. They use make up as a form of self expression which often is portrayed through their use of colour on the face along with techniques. The brand extension, NYX beauty school offers consumers with an immersive educational experience using Augmented Reality. These masterclass’ will be taught by beauty influencers, industry experts and current beauty brands. This will also provide an extra experience as it will give consumers the chance to meet and greet these people. During the masterclass’ consumers are provided with Augmented reality on a screen or ipad, dependant on location, where they are able to follow along to the steps and apply the make up to their face virtually. Everything during the masterclass will have shoppable content meaning consumers are able to save products to a list that can then be printed or saved to a NYX beauty crew account, meaning they are able to shop these products at a later date, increasing add on sales. Before the Masterclass’ launch a mobile app will be created which is an extra platform for sales and makes the brand more accessible to the consumer. The app will include products, insta worthy looks, NYX locations, Virtual try on (Not available until the launch of the masterclass) NYX make up crew ans NYX beauty school. Another new addition to the brand will be the NYX make uo crew, a loyalty programme to ensure that consumers stay loyal to the brand. It will offer exclusive rewards and offers, a points system, which turns into pounds to spend at NYX and recommendatoins based on previous purchases All these new services will allow the consumer to go on a complete process experiencing everything.



THE

concept

American beauty brand NYX is the go to brand for affordable, quality makeup that allows you to go against the plain and ordinary. This new brand extension, NYX beauty school, will give consumers an educational experience they wont forget. NYX beauty school is a monthly organised experience allowing consumers to attend immersive, educational masterclass’ using augmented reality. Consumers are continually learning new skills and makeup looks through make up tutorials on YouTube and social media. This new concept idea for NYX will allow the consumer to learn skills, tips and tricks direct from beauty influencers and industry professionals. NYX beauty school is a focus on creating an educational experience that can be socially shared with fellow beauty junkies. This is because we are living in a ‘snap and share society’ meaning for certain generations everything they do, everything they buy, everything they learn they like to take pictures and share it socially with their friends or the world.

MASTERCLASS

NYX will hold once monthly masterclass’, in store, where the consumer is able to follow along to the steps taught using augmented reality on a screen. These masterclass’ will be taught by beauty influencers, industry experts and sometimes by other creative brands, to make sure the consumer is learning new skills they would not have learnt elsewhere. The themes of the masterclass’ will be dependent on the time of the year. May will see a festival themed masterclass in collaboration with The Gypsy Shrine, a brand that is currently leading the festival and glitter market. Collaborating with brands should allow NYX to reach a wider audience through the brands social media. Augmented Reality is revolutionary technology that applies make up to the face via a mirrored screen. Although this is currently being used by nearly every major beauty brand in the world this technology will be used differently for NYX so that the consumer is learning and gaining memories from the technology and experience. In order to reach a wider range of consumers NYX will have ‘tours’ of the masterclass’ where they will go to Birmingham, Liverpool, Manchester, Leeds and Glasgow. These will be a smaller version of the London Masterclass’ and will take place in conference rooms in local hotels that are accessible from the city centre’s.


MOBILE APP

The NYX consumer is constantly using social media on their mobiles which is why along side the masterclass’ a mobile app will be developed so that the consumer is able to easily shop, browse and share. The app will allow for easier navigation and is another place of sales. Through the app the consumer will be able to view products, Insta-worthy looks, NYX locations, Sign in to the make up crew and book sessions for the Beauty School. The app will be free to purchase however there will be in-app purchases available offering the consumer to pay for the virtual try on feature which uses the augmented reality available at the Masterclass’.

LOYALTY PROGRAMME

Along side this new and exciting concept will be a loyalty programme exclusive to beauty junkies who like to receive special offers, rewards and samples. This loyalty programme will allow consumers to receive rewards based on their purchases which equal into a points system, receive personal offers sent direct to their email and through the new mobile app. Shopping through the mobile app and loyalty programme will allow them to receive recommendations based on searches and previous products purchased. Also through the loyalty programme the consumer will be offered the chance to attend one masterclass of choice for free as a thank you for being a loyal consumer. Giving free samples of new products to consumers is a great way to get consumers hooked on to products which is why these will be offered through the loyalty programme service. If an order over the value of £30 is in the basket, then consumers will be offered the chance to add 1 free sample to their order. If the basket totals more than £40 then they will receive 2 samples. If the order is over £50 they will receive 2 free samples and a branded make up bag that promotes one of their current best selling products.



COMPANY

goals&objectives - TO EDUCATE THE CONSUMER. - TO PROVIDE AN UNFORGETTABLE SERVICE AND EXPERIENCE. - TO KEEP CONSUMERS LOYAL TO THE BRAND. - TO INCREASE SALES AND PROFIT.


THE

consumer MAIN CONSUMER SECONDARY CONSUMER CONSUMER TRIBE



segmentation

CUSTOMER

DEMOGRAPHICS Female / 16-24/ White British/ Single Currently finishing university degree. Part time job in beauty retail in a department store. Have a total income of approximately £410 per month, their hours per week vary depending on how long they need to focus on their studies. Disposable income of £120 per month, which goes on new make up products and clothing.

GEOGRAPHICS United Kingdom – Britain Live approximately 20 minutes away from the local main city centre and other small centre’s which are easily accessible Populated area with lots of housing and flats, local community with local amenities.

PSYCHOGRAPHICS They are highly interested in Makeup, although this is not their subject being studied at University. Their interest for make up has turned in to a hobby and they believe that practise makes perfect, which is how they have come about their skills. In their spare time they are often found socialising with their close friends. They enjoy eating out and trying new food at new places that have been recommended to them by family. Reading magazines in their spare time is important as they like to be up to date on current fashion trends and with celebrity gossip. Watching influencers on YouTube happens, almost every evening. It is essential that they catch up on all new videos posted by their favourite influencers.

BEHAVIORAL If they find a product that suits and works well for them they will stay loyal to that product for a maximum of 3 months, dependant on offers that brand has. With so many new products continuously being available it is hard for them to stay brand loyal however loyalty programme’s and discounts help with that which is why the loyalty programme being created through this concept is perfect for the consumer. As they are beauty junkies their purchase patterns vary, they do not buy a new product when they finish one product. They are constantly purchasing new products to test, try and share with their followers.



Acorn Classification – F2/21 – Urban prosperity, aspiring singles. Flat sharers with multiple ethnicities. Have a slight disposable income to help with rent. The family cycle – Bachelor Stage – Single flat sharing. Few financial burdens which include rent, bills and food shopping. Opinionated and individual with the fashion they wear and the make up looks they create. Thoroughly enjoy spending time with their close friends and family but often get caught up in using their mobile phones checking and updating their social media pages. They only buy basic needs i.e; in their house so that they have more money for personal fulfillment. Instrumental values – Ambitious / Imaginative / Independent / Logical / Loyal / Loving Terminal values – True friendship / Family security / Health / Social recognition / Self-respect / Pleasure / Equality The adoption process – Early adopters. Always purchases new beauty products as soon as they are released. Sometimes purchases new technology to help with their ‘second life’ on social media. Hierarchy of Needs – This consumer has met all the requirements for their physiological needs and is now in the stage of trying to reach all their safety needs by reaching a stage of having financial security.




SECONDARY

CUSTOMER SEGMENTATION Male / 18-25 / Recently finished Degree / Works at MAC full time / Disposable income of £210 per month / Lives in the UK / Main City Centre / Have their own flat that is accessible for work

consumer

ACORN CLASSIFICATION

THE FAMILY CYCLE

Acorn Classification – F2/21 – Urban Bachelor stage - Young single people prosperity, aspiring singles. Share a flat not living at home. They have very few with their best friend. financial burdens, Extremely fashion led, constantly on trend.

VALUES AND NEEDS

THE ADOPTION PROCESS

HIERARCHY OF NEEDS

Ambitious /Imaginative / Cheerful / Honest / Intellectual / Equality / A sesne of accomplishment / A world at peace / Freedom / True friendship

Early adopters. Constantly buying new make up releases to share on their social media pages, represent MAC as a brand so always have new products which they review. Need to buy the latest technology to continue sharing with their followers

The consumer has met all their requirements needed for physiological and safety needs and is now working on their social and companionship needs.


CUSTOMER

tribe

FEMALES OF ALL ETHNICITES AND RACES AGED 16-26 CREATIVE WITH THEIR MAKEUP LOOKS AND OFTEN GO AGAINST THE NORMAL INSTAGRAM IS THEIR SHARING PLATFORM AND USE IT TO SHOWCASE THEIR TALENT YOUTUBE IS THEIR SECOND MOST USED PLATFORM AS THEY RECORD AND UPLAOD BEAUTY VIDEOS INCLUDING TUTORIALS, REVIEWS AND BEAUTY HAULS MAKE UP IS A FORM OF SELF EXPRESSION, USE COLOUR TO EXPRESS THEIR MOOD




THE

market MARKET POSITIONING DIRECT COMPETITORS INDIRECT COMPETITORS MARKETING MIX THE SERVICE USP

18


THE

market


BRAND ADJACENCY MAP HIGH PRICE

H I

F

G

J

LOW QUALITY

HIGH QUALITY

D

B

E

A - NYX B - LOREAL PARIS C - MAYBELLINE D - RIMMEL LONDON E - BARRY M F - MAC G - SMASHBOX H - KAT VON D I - URBAN DECAY J - MAKEUP FOREVER

LOW PRICE

C

A


DIRECT

competitors


BRAND

STRENGTHS

TECH - AR/VR

LOYALTY

SERVICES

NYX

- Affordable prices on all products. - Trend focused. - Strong prescence on social media, particulary Instagram. Have accounts for different countries. - Consistent and recognisable as a brand

Partnered with Samsung to provide make up tutorials, led by brand ambassadors, using Virtual Reality. Products used in these tutorials are then available to purchase at a discounted rate.

Currently only offer a mail sign up to receive news and offers straight to consumers inbox.

NYX currently offer 30 minute services priced at £20 which are redeemable against products. They focus on one make up technique such as brows, contour or lips.

MAYBELLINE

- Strong use of influencers. I.e; Creating a collection with Gigi Hadid. They offer advice and tips on trens and products on their website. Work with Nikkie Tutorials to create content for their YouTube channel.

Due to Maybelline not having their own stand alone store In the UK, and only counters within Boots and Superdrug they do not use any advanced technology such as AR or VR.

Send exclusive product drops and competitions to consumers mailbox however do not offer any rewards or loyalty service.

Due to them not having their own stand alone store they do not offer any services as they are only placed in Boots and Superdrug.

L’OREAL

- They offer a wide range of products including makeup, skincare, hair care, men, hair styling and colour. - Have their ‘Beauty Squad’ which invloves 8 influential YouTube Bloggers who create content on the latest

L’Oreal have an AR app called ‘Makeup genius’ which applies make up to the face virtually and a ‘Shade match’ app which allows you to find shades suited to you in certain products.

They do not offer any loyalty programmes for consumers or email sign ups.

Due to them not having their own stand alone store they do not offer any services as they are only placed in Boots and Superdrug.

MAC

Easily recognsised as a brand with their packaging. Used widely by professional make up artists, great word of mouth advertising. Comes from show make up therefore great for the creative consumer Work and collaborate with lots of celebrities and influencers on collections

Offers 29 custom eye make up looks through Augmented Reality mirrors, which are currently only available in the US. MAC cosmetics in the UK does not currently offer any technological advances.

Similarly, to the AR usage, MAC offer a loyalty programme for customers in the US which gives the consumer more benefits the more they shop. Currently in the UK consumers are only able to sign up to receive no newsletters and aren’t provided with a loyalty programme.

Offer various one-to-one services in store for the consumer. The prices of these range from £20 for an express make up application in 30 minutes to £200 for a wedding trousseau service.

MAKEUP REVOLUTION

Competitive prices across all products. Super affordable products for any income.

At the moment, make up revolution currently do not offer AR or VR experiences for the consumer, this could be due to the fact that they are still growing as a brand and are only available Online and in Boots and Superdrug.

They do not offer a loyalty programme, however offer newsletter sign up where the consumer will receive news and promotion information.

Due to them not having their own stand alone store they do not offer any services as they are only placed in boots and Superdrug.


BRAND

STRENGTHS

TECH - AR/VR

LOYALTY

SERVICES

CHARLOTTE TILBURY

‘Magic Mirror’ which allows consumers to try products on virtually.

In their London store they have the ‘Magic Mirror’ which allows consumers to virtually try on products before committing to purchasing them.

Sign up to hear about new products, latest celebrity how-to videos, receive 2 free samples per order and a luxury gift box

Offer a 15 minute brow appointment for £15 which is non-redeemable against purchase. Other services start at £35 and reach £100 for wedding make up which are all redeemable against product.

SMASHBOX

Have their own stand alone stores which allows the brand to be more engaging with consumers by reaching them directly.

Smashbox is a brand that has used technological advances such as Virtual Reality for studio tours, eye tracking technology and providing the consumer with a 3D printer. However none of this is currently available in the UK.

They do not offer a loyalty programme as such but offer 10% off first orders and updates on all the latest products, offers and more.

£20 for a 30 minute service or £30 for a 60 minute service. Also offer a free 15 minute ‘touch up’

YVES SAINT LAURENT

Strong brand identity

Had a pop up at Heathrow airport which had a Augmented reality mirror allowing consumers and travelers to try on lip products virtually

Have a ‘blackbook member’ programme which gives you exclusive offers, invitations to private sales, luxury gift box, complimentary engraving and a welcome 10% off.

Don’t offer premium services you pay for but in Boots they offer foundation matching.

ESTEE LAUDER

Estee Lauder have worked with Kendall Jenner in creating the ‘Estee Edit’

Have used AR to create a beauty training programme. It aims to bring live AR sessions to more than 17,000 beauty advisors globally. Before this they rolled out virtual try on, on over 800 devices in store and on the YouCam app where consumers were able to try out 30 shades of their new pure colour love lipstick.

The Estee e-list. Receive instant access to exclusives. Accumulate points, unlock rewards and enjoy more amazing treats and experiences.

They offer various services which range from a 30 minute facial to a 15 minute trend service. With the longest being 60 minutes where you can create a custom makeup look.


INDIRECT

competitors


marketing


BRAND

PRICE

PRODUCT

PROMOTION

PLACE

NYX

Prices start from £3.00 for a lip liner to £20 for a face and eye palette

NYX sells a wide range of products for the face, eyes, lips and brows, including tools and makeup prep.

Instagram - New products - Make up looks - Offers - Make up tutorials - Bloggers & Influencers YouTube - ‘Beauty drop’ new product launches - Make up tutorials

Online Instore Department stores - Debenhams - Selfridges - Feelunique - Cult Beauty

MAYBELLINE

Extremely accesible brand for all budgets as their prices start at £2.99 and reach a maximum of £13.99

Maybelline sells products for the face, eyes, lips and nails.

Instagram - New products - Short Tutorials - Make up looks - Beauty Influencers YouTube - Extra Show with Nikkie Tutorials - Tutorials with bloggers & influencers - Trending now makeup tutorials - Halloween tutorials - New products

Online Department stores/retailers - Boots - Superdrug - Amazon - Feelunique

MAC

MAC’s pricing is relatively higher than the other brands presented in this table. For a lipstick, prices start at £12 for a little one and £17.50 for a regular. For an eyeshadow pan it would be £10 which compared to Morphe’s prices is relatively expensive.

Some of MAC’s bestsellers include Matte lipstick, prep and prime fix+, studio fix fluid foundation, and their mineralize skinfinish. Apart from these they sell everything for lips, face and eyes, prep and skincare, brushes and tools and fragrance.

Instagram - New products - Inspiration for products - Make up looks - Collaborations - Beauty influencers YouTube - New products - Hacks for using products - Fashion week looks tutorials - Halloween tutorials - How to tutorials Samples offered with online orders.

Online Instore Department stores/retailers - House of Fraser - Harvey Nichols - John Lewis - Debenhams - Selfridges

MAKEUP REVOLUTION

Makeup Revolutions prices start as little as £1 for a lipstick, lipgloss or concealer and their highest selling product is only £20.

They sell products for the face, eyes and lips and also make up brushes. They have recently released a new £4 concealer, which many influencers say is a dupe to the £22 Tarte shape tape concealer. They have also released £4 eyeshadow palettes that are very similar to Anastasia Beverley Hills palettes.

Instagram - Influencer tutorials - New products - Make up looks - Make up colour swatches - Makeup reviews by influencers YouTube - New videos every week - New products - Blogger reviews - Blogger tutorials

Online Department stores/retailers - Boots - Superdrug


THE

service&brand

STRENGTHS

WEAKNESSES

No other brand that offers this in the UK. Only a handful of UK brands use Augmented reality in store. Offering a better service for price compared to their current services which involve one to ones with a NYX artist. Collaborating with current popular brands to create more advertisement and recognition and bring in new consumers. NYX are a cruelty free brand

Some consumers may not want to/have the money to pay for the masterclass. Influencers collaborating with other brands whilst working on this concept. Lack of stand alone store presence.

OPPORTUNITES

THREATS

Integrate the augmented reality into social media, as these platforms are used by the consumer To make some of the masterclass’ in city centre’s more permanent by them being smaller but more frequent. Focus on the new male consumer that has been identified earlier in this report.

Augmented Reality is becoming more popular within the market and therefore there is the potential of more brands using it in the UK. Competition from external retailers such as shopping channels. If products are sold within China, in the future, this would mean they would no longer be a cruelty-free brand.


usp

FEATURES - Uses revolutionary technology in a new way, by providing the consumer with an immersive educational experience rather than just trying products on. - Gives consumers a meet and greet with industry experts/influencers/ brands they may not get the chance to elsewhere. BENEFITS - Allows consumers to gain beauty tips and tricks direct from an industry expert or influencer. - Consumers are able to socialize with fellow consumers who share a love for beauty


operations THE CONCEPT PROCESS THE MASTERCLASS STAFF HOURS DISTRIBUTION CHANNELS LEGAL OBLIGATIONS CONSUMER RIGHTS



staff

In addition to existing staff that currently work at NYX, extra staff will be required for the masterclass’. In order to save money when budgeting, existing staff that already work at the NYX London Westfield store will be given extra training in order to prepare them for the Masterclass’ and make sure that the service given to the consumer is of a high standard. The masterclass’ that will be touring the UK and visiting cities will require staff that are able to travel to and from these locations. Event staff hired purely for the masterclass’ will be paid £7.90 an hour, for the existing staff their wage per month will increase dependent on the amount of extra hours worked, they currently receive £8.10 per hour. The marketing of the concept will be given to the existing marketing team, as the amount of work will not be too much and will just be additions to what they already produce. They will work in collaboration with the social media team to ensure everything is consistent. The PR team will be needed to organise the collaborations for the masterclass’ and get in touch with any industry experts, influencers or brands. One extra member of staff will be needed under the role ‘event manager’ who will organise the locations and all details of the masterclass’ travelling the UK.

hours

For the London store all hours of operation will be the same, as the masterclass will take place in a separate room in the back of the store. The London store will be open the usual hours when the Masterclass’ take place on the Saturday of which are 09:00am – 21:00pm. For all other masterclass’ that will be taking place across the UK the hours of the masterclass will be a total of 6 hours which will be 12:00-18:00.


distribution

Products will be sold online & In store. Although products are already sold online and in-store the new mobile app will be a new platform in which the consumer can shop, and the London Masterclass’ should increase add on sales of products used during the masterclass. When the masterclass’ are touring the UK small, pop up stands will showcase products and consumers will be able to buy these too.


LEGAL

obligations

There are many legal obligations that need to be considered when creating this new concept idea for NYX. Digital content would be needed as a mobile app is being created and they do not already provide one of these. Distance sales are already used as they have a webpage which they sell goods on however they will now be providing sales through another online platform. They will already have and consider consumer contracts as these will be created when consumers purchase goods from them. Good practise and pricing and payment will also be considered in the business. Underage sales an food and drink needs to be considred as these will be served at the masterclass’.

DIGITAL CONTENT - Consumers’ rights when you supply digital content – for example, a mobile phone app, a computer game or a DVD. The trader is obliged to supply, and the consumer has the right to receive, digital content - that is: - Of satisfactory quality - Fit for a particular purpose - As described DISTANCE SALES - The sales of goods, services and digital content without face-to-face contact with the customer – for example, online, mail order or by telephone. CONSUMER CONTRACTS - A consumer contract is a legally binding agreement between you and the consumer concerning the sale of goods or the supply of services (with or without goods). Contracts can be made:

- verbally - in writing - by your and the consumer’s conduct - ‘silent contracts’. GOOD PRACTICE - Your legal obligation to trade fairly with your customers; the law that protects consumers from unfair trading practices. PRICING & PAYMENT - The rules that cover displaying prices, unit and sale pricing, and taking payments legally and fairly. UNDERAGE SALES - The age restrictions that apply to the sale of certain products and services, including alcohol, tobacco, blades and sunbeds. FOOD & DRINK - What the law says on preparing and selling food and drink, including hygiene, composition, labelling and packing.


CONSUMER

rights

CONSUMER CREDIT ACT - The Consumer Credit Act regulates credit card purchases but also gives you protection when you enter into a loan or hire agreement. It also gives you the right to a cooling off period. Consumer Protection Act 1987 - The Consumer Protection Act 1987 gives you the right to claim compensation if a defective product causes death, damage or injury. THE CONSUMER RIGHTS ACT 2015 - The Consumer Rights Act 2015 became law on 1 October 2015, replacing three major pieces of consumer legislation - the Sale of Goods Act, Unfair Terms in Consumer Contracts Regulations, and the Supply of Goods and Services Act. It was introduced to simplify, strengthen

and modernise the law, giving you clearer shopping rights. DATA PROTECTION ACT - The Data Protection Act gives you the right to know what information companies hold on you and how they can use it. It also sets out rules about the way companies handle your personal data. CONSUMER CONTRACTS REGULATIONS - The Consumer Contracts Regulations which came into force on 13 June 2014 and implement the Consumer Rights Directive - give you rights when shopping online, so you’re covered if things go wrong.


THE

concept

- Consumer becomes part of the loyalty programme – which allows them to access exclusive content and offers, gain points and rewards and be part of the nyx social community where they can share photos, videos and tips with other make up junkies - Consumer is invited to a free beauty school masterclass with one of their loyalty programme rewards - Consumer attends masterclass and uses the Augmented reality technology. Through this they learn a new look, dependent on the masterclass theme, and tips and tricks they wouldn’t learn anywhere else. - After following this masterclass they are able to share their finished looks direct to their social media pages. Time after the masterclass is spent socialising with fellow makeup junkies. - Throughout the masterclass will be shoppable content which means every product they use on the AR technology can be added to a virtual shopping list. This virtual shopping list can then be printed for them to refer to instore or be emailed to themselves and their loyalty programme so they are able to shop the products at a later date. - When the consumer then gets home they are able to log back in to their NYX account and access their loyalty programme where their virtual shopping list will be, with direct links to products and colours. - Also available on the mobile app will be the augmented reality technology where they will be able to recreate looks and create new looks themselves. Once again they will be able to share these directly to their social media accounts.


THE - Guests arrive at the venue. - Welcomed by staff and escorted to the Masterclass room. - Itinery is given to the guests at the door of the room. - Offered a complimentary welcome drink, themed mocktails/cocktails, dependant on age of guest. - Guests are took in to room and advised to socialise with other guests. - Guests then take their seats ready for the masterclass. - Industry expert/beauty influencer/brand is introduced to the guests. - Masterclass begins. - After one hour the guests are given a break. - Refreshments are provided whilst guests are able to socialise. - Second half of the masterclass begins. - Masterclass ends. - Guests have meet and greet with masterclass host. - Guests given goodie bags of mini products used throughout the masterclass. - Event finishes and guests leave with new knowledge, new social friends and a smile on their face

masterclass



MARKETING

strategy 12 MONTH MARKETING STRATEGY ONLINE MARKETING PR EVENT/DINNER


CREATIVE WITH COLOUJR MASTERCLASS

LAUNCH OF MOBILE APP LAUNCH OF MONTHLY MASTERCLASS’. HOLIDAY THEMED MASTERCLASS WITH JAMIE GENEVIEVE

LAUNCH OF THE LOYALTY PROGRAMME

JAN

MARKETING FOR LOYALTY PROGRAMME & ANNOUNCE MONTHLY MASTERCLASS’INFLUENCER DINNER

FEB

MAR

CREATIVE WITH COLOUR MASTERCLASS MARKETING

ADVERTISEMENT OF MOBILE APP - SOCIAL MEDIA, WEBPAGE, MOBILE WEB AND NEWSLETER

NO FEMALES ALLOWED VOL 1 MASTERCLASS

FESTIVAL THEMED MASTERCLASS IN COLLABORATION WITH THE GYPSY SHRINE

APR

MAY

JUN

NO FEMALES ALLOWED MASTERCLASS PROMOTION AND MARKETING COLLABORATING WITH MALE INFLUENCERS FESTIVAL THEMED MASTERCLASS MARKETING - PROMO ON THE GYPSY SHRINES SOCIAL MEDIA SITES AND WEBPAGE

GLITZ AND GLAM PROMO INCLUDING ON LILLY GALACHIS PLATFORMS


GET YOUR SPOOK ON MASTERCLASS

EYE FOCUS MASTERCLASS BACK TO SCHOOL BASICS MASTERCLASS

NO FEMALES ALLOWED VOL 2 MASTERCLASS

GLITZ AND GLAM WITH LILLY GHALICHI MASTERCLASS

JUL

EYE FOCUS PROMO AND MARKETING ON SOCIAL MEDIA AND THROUGH NEWSLETTER

AUG

SEP

COLLABORATE WITH SARAHFX TO CREATE ADS FOR GET YOUR SPOOK ON MASTERCLASS

BACK TO SCHOOL BASICS MARKETING, ONLINE AND SOCIAL MEDIA, USE INSTAGRAM STORIES

CHRISTMAS AND NEW YEAR SHINE MASTERCLASS

OCT

NOV

DEC

CHRISTMAS AND NEW YEAR MARKETING, SPECIAL OFFER FOR CHRISTMAS TIME CREATIVE WITH COLOUJR MASTERCLASS

CONTINUE PROMO FOR UPCOMING MASTERCLASS, CONSTANTLY REMIND CONSUMERS OF APP AND LOYALTY PROGRAMME


ONLINE

marketing

Online marketing will be NYX’s main form on marketing due to the consumer’s that have been identified. The consumer often works across 5 screens which is why marketing will be created across different screens. Social Media marketing is the most important of these as the consumer is constantly checking their accounts. Instagram will be the most important platform to focus on due to the consumer using this as a form of ‘work’. Instagram stories are a great way to get the consumer to download the app as the ‘swipe up’ feature means a link can be placed where it will take the consumer directly to the App Store to download the app.



PR/INFLUENCER

event


Influencers are a great way to reach the NYX consumer, which is why NYX will hold an influencer dinner announcing the creation of the loyalty programme, mobile app and masterclass’ all in one. Influencers will be invited to a glamorous 3 course dinner with drinks and Toni Ko, the founder of NYX Cosmetics, will be there herself to announce the new additions to the company. Influencers will be given promotional packs with ideas on how to share these new concepts on their social media platforms. Hashtags will be created such as #GetMobile #YouThinkYou’reLoyal? Which will create a talking point amongst consumers. Influencers will be advised to be transparent and honest when writing posts and use the hashtag #Ad so consumers understand that it is an advertisement for NYX, although they wouldn’t of been paid with money, their invite to the dinner was a form of ‘payment’


finances BUDGET CASHFLOW STATEMENT PROFIT AND LOSS STATEMENT BREAK EVEN ANALYSIS



OPENING BUDGET Expenditure Construction Cost including - Painting/Decorating, flooring, electrics Mobile app development

In-store Augmented Reality mirrors Pre-launch training

Fixtures and fittings

Low

High

13,500

19,072.80

306

2,160

16,500

23,311.20 374

2,640

Marketing (PR&Social media)

4,900.50

5,989.50

Venue Hire

2,866.50

3,503.50

45,506

55,618

Wages, salaries, benefits Miscellaneous TOTAL

1,620

1,080

1,980

1,320



CASH FLOW STATEMENT CASH CASHFLOW FLOWSTATEMENT STATEMENT FISCAL YEAR BEGINS:01/01/2019

JAN

(PRE STARTUP)

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

FULL YEAR

CASH RECIEPTS Masterclass sales App and loyalty sales Add on sales Total

0

0 0

0

0

1,800

1,800

1,800

1,800

1,800

1,800

1,800

1,800

1,800

1,800

18,000

0

182

980

2,856

1,540 3,400

920

2,823

1,120

1,405 3,635

915

3,124

1,600 4,005

990

3,300

1,050 3,440

740

3,152

12,180

310

930

400

360

410

300

530

620

390

410

405

380

5445

180

0

180

180

180

180

180

180

180

180

180

180

1980

0

110

110

110

110

110

110

110

110

110

110

1100

0

0

0

0

0

0

0

0

0

0

15,000

3185

100

182

100

0

76

60

103

430

3,350

430

409

605

510

590

612

4107

34,287

Cash Paid Out Marketing (PR & Social Media) Staff Training Wages, Salaries & Benefits Maintenance Heat, light, power Fixtures & Fittings Mobile app development Augmented Reality Room/Venue hire Miscellaneous

340 0 0

0 0

0

2,400

21,192

0

15,000

0

100

0

60 0 0

0

60 0 0

0

60 0 0

0

100 0 0 0

0

120 0 0

0

60 0 0

0

60 0 0

0

70 0 0

0

200 0 0

0

80 0 0

0

280

320

310

305

290

305

400

385

289

301

100

100

100

100

100

100

100

100

100

100

100

340 870

2400

21,192

1200

Total

37122

3430

1130

1130

1170

1095

1330

1375

1240

1255

1284

1151

52712

Cash Position (End of Month)

-37022

-3248

1,726

2,270

1,653

2,255

2,305

1,749

2,765

2,045

2,156

2,001

-19345


As this Cash flow statement shows, in the first year of business running the new concept for NYX will not be making a profit. This is due to the initial cost of the Mobile app development and the augmented reality programme, which will not have to be paid again for another year when the software needs updating, but this will be at a lower price. Once the concept idea becomes more popular over time, NYX will start making a profit as their will be an increase in masterclass sales and add on sales. With an aim to increase the number of masterclass’ per location, and with each masterclass making £1,800 the monthly income of masterclass sales should increase to approximately £5,400. which will increase the sales to £64,800 per year.


conclusion Through this business plan it has been identified that the concept is a strong way to bring consumers in to store, teach them skills and keep them loyal to the brand. The way technology used will be completely different to what any other brand in the market is currently using which is why this concept will make NYX stand out within the market. The loyalty programme will ensure that consumers stay loyal to NYX and repetitively buy their products. The mobile app will combine all the services in to one as well as creating another platform for sales. In the future NYX aims to naturally grow their new concept idea and business from evaluating consumer feedback and suggestions. In 5 years time NYX aims to have opened 6 new permanent, stand alone store locations. These will increase sales as they will be much more focused rather than having a concession in a department store. They will allow for permanent masterclass’ with a guaranteed amount of 1 per month. The location of these will be decided upon based on the consumer, often living in main cities such as Birmingham and Manchester. Through the first year of monthly masterclass’ they aim to increase the number of guests allowed to these events from just 30 to 50, then potentially to 60 dependant on the demand for them. As shown in the break even analysis this will then allow for NYX to start making money off the concept idea.




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