Beka Knackstedt . Caroline Mickley . Farley White . Malvika Mehta
CONTENTS Company Analysis
3
Market Analysis
5
Customer Analysis
7
Marketing Goals
10
Campaign Theme and Message
11
Branding Guidelines
12
Media Strategy
13
Integrated Media Plan
15
Digital Customer Experience
16
Social Media
17
In-Store Experience
18
Sales Promotion & Events
21
Partnerships
24
Budget Summary
25
Measures of Success
26
Conclusion
27
References
28
01
company analysis e.l.f. a company that stands for Eyes, Lips, and Face began its rise to fame shortly after its founding in New York City by two beauty obsessives in 2004. The idea of an affordable beauty line came after an observation by Scott Vincent Borba, one of the brand’s cofounders, “I saw all these women with Louis Vuitton purses, and they were just buying truckloads of lip balms and nail polishes,” (CNN, 2017). From this Borba and his business partner, Joseph Shamah decided to locate factories that understood the mission of creating inexpensive, highquality makeup. Their primary goal is to keep women from cutting back on other things just to afford beauty products. Thirteen years ago, the brand began with only 20 products costing $1 each. At the time, e.l.f. was the only cosmetics company to offer products at this price point. Items are manufactured abroad allowing e.l.f. to remain low cost and cruelty-free.
In the beginning, the brand’s traditional advertising budget was zero dollars; relying heavily on social media and consumer preferences. This marketing strategy was chosen to maintain a direct line of communication with the customer. e.l.f. still focuses heavily on the customer’s desires concerning products and innovation. Over the last 13 years, e.l.f. has expanded from a small e-commerce site to a destination shop within retailers such as Target and CVS. The brand’s partnership with Target was the catalyst for the company in 2007. After the success of its $1 beauty and tool products, e.l.f. expanded into their Studio and Mineral Lines which retail between $3 and $6. In 2013, the company began opening flagship stores; currently, a total of nineteen exist between the states of New York, New Jersey, and California.
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company analysis e.l.f. is consistent with its’ mission of a low-cost hight quality product. However, as the company grows, so do the competition ranging from L’oreal to Ulta, Sephora, and Avon. The company has increased its’ product line to include skincare masks and high-end brushes bringing their highest price offering to $15.
Today the company is still growing and facing the challenge of integrating traditional marketing techniques into their social media driven portfolio. The company is striving to move into the “tech” world of beauty while remaining eco-friendly, cruelty-free, and inexpensive.
The increase in offerings was sparked by the decision to go public in 2016. A development of an entirely new marketing campaign surrounded “Beautyscape,” an event that brought their consumer-driven mission to the forefront. Fans could submit their e.l.f. looks via social media for a chance to win an all-expenses-paid trip to learn about new makeup tips and product innovation (Refinery29, 2016). The brand treated this event as a weekend-long focus group.
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02
market analysis e.l.f. Is a New York City-based brand that operates internationally, retailing in seventeen different countries. As for the brand’s local economy (as per its headquarters), New York City has experienced positive economic growth and a decrease in unemployment in 2017, although these rates have been about 1% lower than the conglomerate rates for the United States as a whole. Regionally, the Northeastern United States has experienced growth and unemployment reduction at or below the national average, with the state of New York among the lower growth rates (Bureau of Economic Analysis). Despite this, spending power is still steady, and wealth is highly concentrated in this area.
recession, consumer confidence will continue to rise, which will increase spending, particularly where nonessential goods are concerned. As the world economy experiences both stability and moderate growth, consumers will purchase more goods and services in the coming months. Cautious optimism is the mood in developed countries as consumers, particularly millennials seek value and quality in purchases. With personal spending up, cosmetics will continue to grow as an industry, particularly brands that can cater to the needs of millennials, who are growing in both influence and spending power.
From a national standpoint, the US economy is forecasted to continue to experience moderate growth during 2017. Wages will rise while unemployment decreases, which will, therefore, lead to a 2.2% increase in personal consumption. Globally, the world GDP is expected to rise 3.5% in 2017, up from 3.2% in 2016 (Euromonitor). As developed economies continue to grow post-
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market trends
The cosmetics and beauty industry is valued at over $443 billion dollars globally, and experienced steady growth in 2016 of 1.7% which is forecasted to continue through 2017 (Euromonitor). The industry as a whole can be described as both diverse and saturated, with many companies competing for market share. The largest players in the industry are global giants, many of which are conglomerates with many sub-brands, including L’Oreal, Estee Lauder, Procter & Gamble, and Sheseido. Olay, Neutrogena, and Nivea, among others, also make up a large portion of market share. The cosmetics and beauty market can be broken into five major categories: skin care, hair care, color cosmetics, fragrances, and other beauty products. e.l.f. Falls into the color cosmetics segment, which is estimated to represent $61 billion globally (Euromonitor).
Within this industry, five major trends have been shaping companies and products the most: Personalization: consumers want products that are tailored to their personal needs and desires, and as automation improves, companies are able to deliver more. Digitalization: smart devices, using various apps and programs, are being used to interact with consumers and often assist in fulfilling personalization needs. Premiumization: millennials are very invested in selfcare and want the best quality beauty products, leading to the development of many stand-alone luxury beauty companies, as well as luxury brands extending into the beauty sector. Niche Beauty Brands: specialized lines which meet a new set of consumer desires, such as Glossier and Lush, have grown in popularity recently through differentiation from competition. Sustainability: consumers are becoming more skeptical about the contents of their self-care products and are demanding more transparency, as well as ethical production.
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customer analysis The primary consumers for e.l.f. cosmetics are millennial women between the ages of 20 and 33. Many of these culturally diverse women are self-established but enjoy experimenting with their makeup routines. e.l.f. is distributed in 19,000 stores, including Target, CVS, and their namesake retail locations, giving extensive exposure to the geographically diverse market. The majority of consumers make their own buying decisions with the help of social media influencers. e.l.f.’s target consumers are price conscious early adopters looking to experiment with diverse color pallets and products that will not drain their bank accounts.
under six dollars. Since the price point is well below the quality competitors, e.l.f.’s consumers know they can experiment with products and diverse styles playing into the market of early adopters. Following the lead of retail giant Zara, e.l.f. test products before full-scale production through their retail website. The brand is then able to conduct two-way communication with purchasers allowing for the consumer to feel appreciated, giving them an edge against competitors.
The top motivations of the e.l.f. consumer are price, experimentation, and two-way communication. Price is the most important factor for the typical e.l.f. consumer; the brand prides itself on low price, high-quality products with the majority being
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customer personas
Ashley Age: Occupation:
21 Student
Income:
$ 15,000
Money:
Limited
Time: Level of Knowlege: Personal Preference:
Busy bee Expert Experimental, over the top
Ashley recently is still completing her graduation and has limited resources as a student. Her income is low, mainly from working on the side, however she has immense know-how of the make-up industry and considers herself a make-up junkie. She likes her look to be extravagant and often loves to experiment with off-beat make-up looks.
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Anthony Age: Occupation:
Assistant Stylist
Income:
$ 40,000
Money:
Medium
Time: Level of Knowlege: Personal Preference:
Naomi
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Busy bee Expert Understated yet unique
Anthony just started working as an assistant stylist in New York City. He does not confirm to gender norms and considers himself a stylist by the week and an activist by the weekend. His make-up looks are generally minimal, however he has his unique way of standing apart.
Age: Occupation:
29 Financial Analyst
Income:
$62,000
Money:
Medium
Time:
Busy bee
Level of Knowlege:
Explorer
Personal Preference:
Minimal
Naomi works as a financial analyst and has very little time to work on her appearance. She is confident of her natural looks and relies on minimal make-up, partly due to her lack of time, and also because of her limited knowledge of cosmetics. She is still new to the world of make-up and looks for products that would give her the ‘no-make up look’. 9
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marketing goals By design, this campaign hopes to build awareness about the new product line, Beauty Shield. The target market for this campaign is the millennial age group consisting of both genders. Through a multifaceted campaign, e.l.f. hopes to grow the existing consumer market while also gaining customers who initially viewed the brand as solely experimental or low cost makeup. This product will aid in our goal to become a genderless beauty brand while building a solid foundation for both connoisseurs and amateurs. The Beauty Shield campaign centers around blogger and vlogger influencers from around the web creating a diverse group of e.l.f partners. Each social media influencer chosen believes that beauty starts with a solid foundation of confidence and inclusivity. Beauty Shield will not only be a social media campaign but also include store events in several locations across the United States allowing for customers from several geographical locations to meet our e.l.f. partners and experience the foundations of beauty.
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campaign theme “ b e a u t y s h i e l d .” Androgyny has firmly manifested itself in the fashion industry. Many brands are eliminating traditional labels and lessening the barriers that have before divided the sexes. Instead of borrowing aspects of a particular sex, brands are instead blurring the lines and creating concepts all genders can feel comfortable using in their everyday routines. Skincare and cosmetics are experiencing a similar shift (Hoshikawa). The skincare industry reached 17.3 billion in the United States in 2016, roughly 11 billion of this from facial care alone (Euromonitor). e.l.f. is tapping into this exploding market through the Beauty Shield products. These products are designed to assist in treating environmental aggressors through innovative products at an affordable price. Beauty Shield uses the concepts of K Beauty to develop a solid foundation of beautiful skin- giving the consumer the confidence to go makeup up free or have a fresh canvas for
experimentation (e.l.f. cosmetics). With ‘Beauty Shield,’ users efficiently address any skin health needs without the heightened price tag of competitors. In creating unisex products e.l.f. aims to do away with any barriers gendered products create. To bring in the idea of gender neutrality, e.l.f. plans to introduce two spokespersons (one male, one female) who are comfortable in their skin eliminating the concept of makeup only being a ‘mask’ to hide behind. These spokespersons are in-line with the target customer personas created in part one of the project; each will focus on the benefits of the Beauty Shield products as a foundation for the confidence to go “maskless” as well as create a flawless canvas for his or her beauty routine.
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06
branding guidelines
#B3DDD5
#777F7E
#474949
#F3DFD2
#777F7E
#474949
beauty shield.
Font: Gotham Light Kerning: 40 12
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media strategy A critical social media approach the brand will use to heighten the conversation about its’ products is through partnerships with influencers. e.l.f was one of the first brands to utilize influencers, favoring accounts with high levels of enthusiasm and interaction over those with massive amounts of followers, as “microinfluencers” are more loyal and have a greater engagement with their fans (Tode). Furthermore, both Millennials and Generation Z find influencers more relatable than celebrities taking their endorsements more seriously (Fromm). By forming meaningful relationships with influencers and their followers, the brand will not only create a valuable promotion for Beauty Shield but will maintain its authenticity. Aside from social media, e.l.f. needs a tangible method to excite consumers about Beauty Shield. In order to do so, 50% of the marketing budget will be allocated toward in-store and pop-up events to promote products while engaging with communities. Free-standing e.l.f. stores in New York City will include “mini spas” for consumers to try the products before purchasing. This concept is mirrored
through “pop up spas” within Ulta stores in select cities including Chicago, Los Angeles, Seattle, San Francisco, and Miami. Each included location will host a Beauty Shield launch party featuring influencers, estheticians, and online customers with VIP promotions. The beauty pop-up events will satisfy consumers’ desires for new experiences, as well as invoke a sense of immediacy and novelty making it the perfect way to launch a new product while interacting with the target consumer (Gustke). These events will teach consumers about skin care and specifically the Beauty Shield products, inspiring them to have the confidence to bare their skin proudly. Product samples, giveaways, “makeunders” featuring the new products, and tutorials will all be foundations to the events, while ungendered empowerment will be at the core. These events will not only promote the product and open engagement with the consumers, but also help present the brand as not only an inexpensive alternative to luxury makeup, but a force for skin care, confidence, and acceptance.
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07
media strategy
Since e.l.f. is working with a relatively tight marketing budget, extending our reach by working with highly influential bloggers and vloggers who perfectly fit with the brand’s positioning of “natural” beauty is key. We have chosen to work with both a female and male influencer as all genders easily use the skin care.
Julie Engel is a Charleston based blogger with over 1.1 million followers on Instagram. She blogs frequently about her favorite beauty and skincare routines, and her overall beauty aesthetic is natural; allowing her to be the perfect spokesperson for the confident makeupless consumer within our target reach.
Patrick Starr is a youtube sensation, and male beauty artist who focuses on makeup being a “one size fits all.” He uses all social media platforms to promote his favorite beauty looks; He focuses on how beauty products can easily transform anyone to his 3.4 million followers to whomever they wish to be. Patrick is an influential male voice that would capture the brand’s genderless Beauty Shield line as a product to the create the perfect canvas for any beauty look.
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08
integrated media plan
e.l.f.’s media plan consists mainly of new media and non-traditional media due to the target group that the brand has. Their integrated media plan consists of a launch event for Beauty Shield where products from the collection would be gifted, a social media campaign in collaboration with bloggers, in-store advertising, sales promotions and several pop-up events through the year. The media calendar and flowchart is as follows: PreLaunch
Sept
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
June
July
Aug
Research and Development
In-Store Advertising Signage Fixtures
Digital Promotion & Education Website Content Instructional Videos
Social Media Content Instagram Facebook Snapchat Influencer Partnerships
In-Store and PopUp Events
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d i g i t a l c u s t o m e r ex p e r i e n c e e.l.f.’s digital following increases through the use of social media, digital web platforms, and consistent product reviews. e.l.f. not only posts on traditional social media but also uses unique platforms such as Reddit. Several professional makeup artists use the brand; these consumers post on their professional websites and social media profiles allowing for organic growth of the brand. The biggest enhancements to e.l.f.’s branding within the digital sphere would include improvements to the company’s blog page and a cohesive connection from an Instagram to the products. While e.l.f. has a substantial social media base, many consumers are not drawn into purchasing directly from the website; instead many will travel to one of the
retail partners. This could be remedied through cohesive connection from a post directly the product. This link would eliminate click fatigue felt by the consumer searching for a particular product within a post. Additional enhancements to the digital sphere will take place through the YouTube channel; a comprehensive list of tutorials and guest vloggers should be made available. Digital improvements will allow for the product launch of Beauty Shield to have a larger impact and a greater return on investment. Digital consumer engagement would and monitored through video views, polls, and hashtag usage over all social media platforms.
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10
social media
While Julie Engel and Patrick Starr remain the faces of the campaign, we also have several other male as well as female beauty bloggers who we collaborate with to generate social media content. The layout of the social media flows in such a way that we introduct the beauty blogger with their no-make-up photograph followed by what ‘Beauty Shield’ means to them, after which we have them review one product from the collection. We have created a mock-up of the social media to explain the same.
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i n - s t o r e ex p e r i e n c e
Partnership Stores Drugstores Within drugstores e.l.f. products should have a consistent image. This will ensure that consumers feel as though the product is of the same caliber across locations. Each drug store application should include a lit case with promoted overheads adorned with the e.l.f. typeface and logo per branding guidelines. Beauty Superstores Beauty superstores should follow the same protocol as drugstores; the only exception to this is during events such as a product launch- in this instance, products will rehome to the event space. In the case of the Beauty Shield launch, skin care products, including brushes, will be merchandised within the "spa" areas. In addition, during the product launch, several team members will need to be present in the event area to notify customers of the benefits of the new product. An informative session or online module will become available for e.l.f. specialists as the events and products become announced.
Namesake Stores All team members will be familiar with the product sets ensuring product confidence and consumer knowledge. Informative sessions will be coordinated with staff before each launch date. Specialized areas will be established for each area of product including eyes, lips, and face sections. Specialists must have knowledge in each product area to best serve customers needs- this will allow for a zone where each client feels comfortable enough to experiment with our products. Centralized bar areas will contain sample products where each consumer can experience the newest products including but not limited to beauty shield. Each bar will hold a different theme of makeup including natural, bare, and glam with corresponding informative videos from makeup artists. For example, within the glam section videos from celebrity makeup artists, including our spokesperson Patrick Starr will play- each of the products used will be displayed here for a collaborative shopping experience.
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11 Patrick Starr’s
“Beauty Shield”.
Beauty shield samples as gifts
i n - s t o r e ex p e r i e n c e
Define your “Beauty Shield”.
New promotional advertisements for the campaign
Cocktails for guests during the event.
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i n - s t o r e ex p e r i e n c e
The Beauty Shield wall is created in neon lights and aims to make the social more ‘Instagrammable’ and appealing to the younger Millennial target group.
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s a l e s p r o m o t i o n s & e ve n t s
Back to School Sales Labor Day Sales mixed with a beauty holiday Makeup Day (8/25) Black Friday Sales 12 Days of Christmas focused on all aspects of skin care line New Year, New You Sales Seasonal sales: Fall, Winter, Spring, Summer Beauty launches Relaxation Day - August 15th Spa Day - February mixed with Valentine's holiday ideas
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s a l e s p r o m o t i o n s & e ve n t s
The Beauty Shield Launch Event The influencer launch party will take place in New York City. This brunch event will allow for all our top influencers to meet and mingle with each other and the Beauty Shield product. Each attendee will receive an informational packet and gift box including Beauty Shield and an e.l.f. precision brush set. During this event, a mini spa will be established within the venue for each influencer to take part in while also learning about the products. Each attendee is encouraged to share the event through all social media platforms. Beauty Shield product launches will take place within specified Ulta retailers and each e.l.f. studio store around the United States. Each event will include a localized blogger and e.l.f partner to help develop a relationship with the community. For each store launch, a complimentary facial for the first 50 guests will be provided along with prize packages for the first 75 guests including sample sizes of the Beauty Shield product. Each event will last for several hours allowing for customer questions, product testing, and a meet and greet with the e.l.f. partners. The event locations will be outfitted with additional product, product educational guides, and at least two e.l.f. specialists, as well as a geotag filter for social media.
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s a l e s p r o m o t i o n s & e ve n t s The launch event would include a gift box that will be given to the bloggers and attendees to review the products from Beauty Shield. We created a mock-up of the invite as well as the gift box for the event.
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partnerships Current Partnerships include Target CVS Wal-Mart Ulta Old Navy TSG (TSG Consumer Partners LLC is the leading private equity firm in the U.S. focused exclusively on the consumer sector. ) e.l.f. has several retail partnerships allowing for a broad reach within targeted consumer markets including the accessible luxury segment. While the current partnerships are successful; the business can expand into retailers that focus on beauty specifically while also expanding into luxurious department stores. Two major partnerships recommend for expansions are Sephora and Nordstrom. While e.l.f. already
partners with Ulta, Sephora is a global company which offers an extended reach. Sephora is a slight move into the luxury beauty market. Many of Sephora’s customers are premium and luxury purchasers. The introduction into Sephora would elevate the perception of the company’s products. Within the realm of department stores, Nordstrom is the ideal fit. Based on the juniors and misses department segments of the business and e.l.f.’s price point, the line could easily merchandise within these departments. An affordable skincare line, such as Beauty Shield, would be a welcomed addition to the Nordstrom product range. The e.l.f. brand is also a suitable candidate for a shop in shop concept or traditional makeup counter display given the wide range of product offerings.
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budget summary
The following chart represents a physical breakdown of the Beauty Shield IMC costs. Assuming a standard 10% of previous years sales model, the campaign will cost $23 million and its focus will be increasing the amount of customer/brand engagement that will translate to viable sales. PreLaunch
Research and Development
Sept
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
June
July
Aug
1,150,000
Total 1,150,000
In-Store Advertising Signage
150,000
150,000
150,000
150,000
150,000
150,000
150,000
Fixtures
1,000,000
50,000
50,000
50,000
50,000
50,000
50,000
25,000
25,000
25,000
25,000
25,000
25,000
1,050,000 1,250,000 2,300,000
Digital Promotion & Education Website Content
100,000
100,000
100,000
100,000
100,000
100,000
100,000
20,000
20,000
20,000
10,000
10,000
10,000
690,000
Instructional Videos
50,000
50,000
50,000
50,000
50,000
50,000
50,000
30,000
30,000
30,000
30,000
20,000
20,000
490,000
1,150,000
Social Media Content Instagram
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
1,200,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
1,200,000
Snapchat
55,000
55,000
55,000
55,000
55,000
55,000
35,000
35,000
35,000
30,000
30,000
30,000
30,000
500,000
Influencer Partnerships
500,000
500,000
500,000
500,000
500,000
500,000
500,000
300,000
300,000
100,000
100,000
100,000
100,000
4,000,000
6,900,000
In-Store and Pop-Up Events
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
1,500,000
11,500,000
23,000,000
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measures of success
The success of the Beauty Shield IMC mix will be judged based on two major metrics. First, the sales of the Beauty Shield line will be closely monitored with respect to the campaign, which will translate to the ROI of the project. While initially, sales may be slow, the goal is to achieve the same level or better as e.l.f.’s other product lines by the end of the campaign, and sales will be monitored at each brick-andmortar retail outlet and online retailer. Because this marketing campaign deals with the launch of an entirely new product line, the ROI will be much easier to determine than for an existing product, and the success of the campaign will be easier to judge.
media post, tutorial video, and online promotion effort will be monitored to determine the number of views, likes, comments, and overall engagement. For the in-store and pop-up events, attendance and purchasing will be critical outcomes from both a sales and engagement perspective. Being able to interact with customers inperson provides a unique opportunity to not only gather vital information but increase the customer’s loyalty and ability to experiment with products, one of e.l.f.’s core purposes.
The second major metric used will be consumer engagement. e.l.f. is a brand that prides itself on its digital community and loyal consumer “cult following,” and the Beauty Shield campaign will tap into this. Each social
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conclusion
e.l.f.’s launch of the Beauty Shield line represents an exciting opportunity for the brand to enter the skin care market which is experiencing exceptional growth. Much of this growth comes from Millennials and Generation Z’s commitment to selfcare which is fitting for e.l.f., as these generational cohorts represent the brand’s target consumer. The goal of this integrated marketing campaign as the product launch for Beauty Shield is to raise awareness and create meaningful consumer interaction without compromising the brand’s image as a renegade company that does not comply with traditional advertising and pricing models. Through the expansion of existing marketing channels utilized by the brand, as well as the creation of product-centric events, digital content, as well as in-store popups, this goal is achievable. Allowing for skin care products to become an essential part of the bran’s core product range.
By offering affordable skin care that allows for experimentation, e.l.f. is elevating both its image and its importance in consumers’ beauty routines. Through diversification and targeted integrated marketing efforts, e.l.f. can use Beauty Shield to extend its reach without compromising its cult-following branding model, and can continue to promote inclusivity and acceptance.
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references
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Gustke, Constance. “Pop-Up Stores Thrive in a World of Failing Retailers.” The New York Times. The New York Times, 30 Mar. 2016. Web. 20 July 2017. Hoshikawa, Karina. “Why Beauty Is Quickly Becoming a Gender-Neutral Space.” Fashion Unfiltered. Fashion Unfiltered, 16 June 2017. Web. 23 July 2017. Huston, Caitlin. “5 Things to Know about e.l.f. Beauty.” MarketWatch. MarketWatch Inc., 29 Sept. 2016. Web. 08 July 2017. Jacques, Renee. “How the Internet Became Obsessed With This One Drugstore Makeup Brand.” Allure. Allure Magazine, 24 May 2017. Web. 09 July 2017. Keane, Meghan. “Case study: e.l.f. is changing the cosmetics industry, $1 at a time.” Econsultancy. N.p., 02 Nov. 2009. Web. 09 July 2017. Kell, John. “Shares of E.l.f. Beauty Shine in IPO Debut.” Fortune.com. Fortune, 22 Sept. 2016. Web. 08 July 2017. Micallef, Nicholas. “Beauty and Personal Care Global Industry Overview.” Euromonitor(2017): n. pag. Web. 6 July 2017. “New York City Economy Slows in Last Quarter.” Office of the New York City Comptroller Scott M Stringer. N.p., 8 Feb. 2017. Web. 08 July 2017. “Summer Beauty: All-Around Humidity Protection.” Gal Meets Glam. N.p. 27 May 2017. Web. 23 July 2017. Staff, People. “Patrick Starrr Reveals How He Went From Makeup-Loving Teen to YouTube Businessman.” PEOPLE.com. Time Inc, 23 Nov. 2016. Web. 23 July 2017. Tode, Chantal. “How e.l.f. Cosmetics Builds Community and Drives Results with Micro Influencers.” Marketing Dive. N.p., 13 Mar. 2017. Web. 20 July 2017.
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