Glossier's Marketing Strategy

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BA Fashion Marke ng Year 3 Shu Zhao 18005314

Exhibit 1

Fashion Marke ng Strategy : ELEMENT 1 INDIVIDUAL Report Unit Leader: Shahpar Abdollahi “I, She Zhao, cer fy that this is an original piece of work. I have acknowledged all sources and cita ons. No sec on of this essay has been plagiarised.”

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In compiling this paper I have received assistance on sec on 1.1 from Karen Harris via UAL language support.

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Table of content Introduc on 03 Q3 Glossier's CSR ini a ves

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1.0 De ni ons of Strategic CSR

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1.1 The importance of CSR & Crea on of shared value

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2.0 The Triple Bo om Line theory 2.1 Integra on of the Triple Bo om Line

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2.1.1 People 3.0 Future sugges ons

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Q4 - Glossier Brand and its Future Growth

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1.0 Customer-Based Brand Equity Module

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1.1 Brand iden ty (Salience) 1.2 Brand meaning (Performance and Imagery) 1.3 Brand response (Judgement and Feeling) 1.4 Brand rela onship (Resonance) 2.0 Building Customer Loyalty

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2.1 The crea on of Customer Love

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2.2 The Loyalty Ladder

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2.3 Brand Touchpoints

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3.0 Future Challenges And Opportuni es 3.1 Strategic Recommenda ons

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Exhibit 2

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Introduc on Glossier is a 'content- rst' beauty brand that revolu onised the beauty industry with product strategies inspired and cocreated by its cult community. The brand started its journey from a recognisable beauty blog, "Into the Gloss". Emily Weiss established the blog to reinvent consumers' beauty experience against the industry's typical aesthe c standard. Into the Gloss had enabled her to build a community based on loyal followers (Turk, 2020). The blog has generated unique insights and inspira ons for modern beauty consumers, shi ing their values and lifestyle.

The founder aspires to build the rst socially-oriented brand and an industry pioneer that engages its community in its design process. She thinks the cosme c sector has been led by experts telling one-sided opinions, where individuals' beauty rou ne is controlled by authori es rather than having diverse and free choices (Giacobbe, 2017).

Therefore, Glossier empowers consumers to be acknowledged and engaged in their purchase, with emo onal bonds to the brand. Although the brand has high customer loyalty in the US, the ques on of how to handle an expanding global customer base occurs (Avery, 2019). The stability of the business strategy based on in mate customer connec ons and a rela vely small product o ering must be examined.

Although Glossier has garnered a lot of publicity and recogni on for its revolu on in CRM as a social enterprise, its long-term success will s ll be determined by its consistency and credibility in CSR ac vi es.

Recommenda ons for marke ng and distribu on strategies will be made regarding the brand's expansion.

Also, long-term strategies to maintain the brand's reputa on will be devised.

Q3 - Explore Glossier's CSR ini a ves and possible future stance 1.0 De ni ons of Strategic CSR The term Corporate Social Responsibili es has various de ni ons and theories suggested by many researchers. James Brusseau has de ned CSR as a concept focusing on the responsibility to gain pro t, including ethical interac ons with the stakeholders (Brin and Nehme, 2019). In other words, the goal is to achieve prosperity for a business while o ering community welfare. Husted and Allen (2007) have suggested a new approach to CSR, whereas the tradi onal de ni ons tend to dis nguish between market and social ac vi es clearly. He highlights that the growing pressure created by stakeholders caused companies to provide more welfare programs to solve global issues could result in be er

nancial

performance. Also, CSR would create more opportuni es for brands, including systemic innova on, strategic advantage and new value genera on. Di Benede o (2017) has suggested that CSR is a vital part of brands' customer rela onship management system and essen al for increasing compe Companies could gain compe

veness.

ve advantages by making CSR a core component of their purpose and long-

term commitment. However, rms should avoid using it as a marke ng tool to drive up sales. Bürklin ( 2018) also highlighted that implemen ng sustainability measures for fashion brands would be their key CSR

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priority.

Page 4 1.1 The importance of CSR & Crea on of shared value (CSV) Glossier needs to make business decisions based on the bo om line of being socially responsible.

According to Deloi e's Global Millennial Survey (2019), 42% of respondents indicated they would establish a rela onship with a company that had a bene cial in uence on society, while 38% said they would quit buying from a company that had a nega ve impact. Socially aware Gen Zers and Millennials are the core consumers of Glossier. They are highly conscious of social and environmental problems, which would put a lot of pressure on the brand to be responsible, ethical and sustainable with its business strategies. It therefore seems that brands should give high priority to ethical considera ons, not only from a moral but also from a business perspec ve.

An example of how CSR can enhance a brand's reputa on can be seen in the case of Glossier's temporary closure of physical stores during the pandemic in 2020. Glossier was one of the rst announced to o er con nuous compensa on for its sales team during this period (Flora, 2020). According to Emily Weiss, the brand's retail shop in New York had 2000 visitors per day, but she decided to close the store to take responsibility for the consumers, employees, and public health (Salpini, 2020). Stakeholders are paying close a en on to how companies treat their employees right now since it re ects the rm's core beliefs and values. Many people have been let down by employers recently, and the public is already in the mindset of wan ng to support companies that care Exhibit 3

about employees (Bryant, 2020). The brand's early decision to close

agship

stores and be er response to the COVID crisis increased consumers' trust and boosted its reputa on. Nonetheless, the costs of the compensa on are limited for Glossier as a DTC brand, where it sells most products online.

Apparently, not all CSR ini a ves are economically bene cial, and they may decrease short-term value (Husted and Allen, 2009). However, there are ways to mi gate the adverse e ects. Glossier is extending tradi onal CSR to CSV (crea ng shared value), serving commercial and societal demands through new feasible models. Crea ng Shared Value refers to a company's opera onal procedures that boost its compe

veness while enhancing nancial and social

condi ons (Porter, 2016). Hence, if new business prac ces and corporate objec ves are correctly created, there is no need to sacri ce pro tability for the people or planet sector in the triple bo om line (See exhibit 4).

CSR provides a chance to reshape the compe

ve environment while developing unique and

dynamic resources and competencies (Husted and Allen, 2007). Visser (2011) also points out that CSR is a holis c, systemic business prac ce that should focus on enhancing rather than deple ng economic, cultural, social, and environmental capital. However, most sustainability and social responsibility prac ces are about

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elimina ng the nega ve impact rather than making systemic improvements. For example, over 120 billion

units of beauty containers are produced worldwide each year, but the majority ended up in land lls or the seas (Bryant, 2020). Glossier had made an excep on from the fast-paced industry, where it has a slower meline for launching new products. The brand only launches essen al products that customers really desire and need (Avery, 2019). Prolonged deadlines would be bene cial to the environment and, eventually, for business, as slowing down can lead to less waste, lower carbon emissions, and the crea on of more though ul goods that are more compe

ve

(Aagaard, 2016). This is an example of going further than tradi onal CSR, by implemen ng a systemic change to the exis ng business model. Despite all the advantages of adop ng tradi onal CSR, it is hard to sustain it in the long-term since it is not pro toriented, while carrying out CSR ini a ves to improve society s ll requires funds and labour. Therefore, it is necessary to shi from CSR to CSV, as the la er is more sustainable and ful ls the brand's corporate responsibility.

Exhibit 4 “Convergence of Interest” (Porter and Kramer, 2002)

Exhibit 5 Strategic corporate social responsibility (CSR) and Crea ng shared value (CSV) (Porter and Kramer, 2006)

2.0 The Triple Bo om Line theory 2.1 Integra on of the Triple Bo om Line Elkington (1998) suggests that companies must consider economic, social and environmental aspects to accomplish long-term ethical projects while containing pro tability. However, the di culty in pu ng TBL theory into prac ce is striking a balance between the three dimensions (Brin and Nehme, 2019).

While the purpose of Glossier goes beyond genera ng pro ts, it also has a moral obliga on to ful l social and environmental goals.

2.1.1 People Glossier has grown from a digital community to a cult brand with millions of dedicated followers.

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The brand encourages people to choose minimum and cleaner makeup rather than using layers of

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Page 6 cosme cs to cover up no ceable imperfec ons (Turk, 2020). The brand is born to make products that empower female lives for the be er, di eren a ng it from other brands that take advantage of women's insecurity about their appearance. Forbes listed Glossier as one of the ten most customer-centric retail companies (Morgan, 2019). Glossier has made social responsibility part of its DNA, with business approaches designed to be er serve its consumers and employees. Di Benede o (2017) suggests that such approaches would lead to long term nancial rewards, as shareholders appreciate well-inten oned rms that contribute to society. For instance, the founder, Emily, responds to product comments directly with a conversa onal tone as a friend. The company formed a Slack group of 100 loyal customers and made them the brand's representa ves. Some top consumers in NYC were treated with pizza and rosé at its o ce. They also had the opportunity to try new cosme cs with the developers (Avery, 2019). Glossier has therefore created a compe

ve advantage from this strategic CSR approach. Porter and Kramer highlighted that a

brand could establish a unique posi on by di eren a ng from the compe tors, which provided be er services to a speci c customer need (Charoenrungrueang and Sungsanit, 2016). In this instance, the brand emphasises 'centrality' (Husted and Allen, 2007), where Glossier has created value connec ng to its core mission through service innova on.

While CSR has been wildly recognised as a source to gain a compe

ve advantage, consumers have

become more suspicious about businesses' environmental or social responsibility claims. Visser (2011) also highlights that CSR had been used as a PR-driven tool with misleading inten ons to enhance a brand's public image. For example, Glossier's treatment of employees has been subjected to considerable cri cism, as an anonymous group of the brand's former retail workers shared an open le er to accuse its toxic workplace culture and racism. They have formed a collec ve named "Ou a The Gloss" to ensure that Glossier's employees are protected to a fair degree from future transgressions and demeaning interac ons (Valen ne, 2020).

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Exhibit 6 & 7

Page 7 In this case, the brand's promise to employee well-being contradicts its irresponsible behaviours.

Glossier has created a dreamlike work environment in the public's view, with consumers loving the business culture. The company was recognised for priori sing social impact and cul va ng a values-driven culture alongside nancial and personal development o erings. The editors, mostly LGBTQ and people of colour, had become used to receiving no assistance and minimal recourse. Some employees' compensa on claims have either gone unaddressed or have been diminished via the repor ng process. In contrast, when consumers expressed unhappiness with an interac on with a manager, they were frequently given items or refunded the whole amount of their purchase to guarantee they le

Glossier sa s ed. Given the

seriousness of some of these occurrences, it is a wrong applica on of the "surprise and delight" marke ng concept. Many of the top execu ves were from the hotel industry rather than retail or cosme cs (Ou a The Gloss, 2020). Nonetheless, their strategy should not foster devo on to consumer happiness at sacri cing workers' well-being.

The brand should provide reliable and e cient solu ons to compensate for the damaging impacts on its former employees. Many people felt Emily's response was perfora ve, and most promises were s ll unmet (Valen ne, 2020). Indeed, to maximise the value crea on from CSR projects, rms must explicitly plan such programs to achieve that goal. S ll, When CSR is managed for publicity or reputa on rather than compliance, the risk of greenwashing emerges (Husted and Allen, 2007). In such circumstances, Glossier has partnered with human rights NGO to develop a shining CSR program while con nuing the unequal prac ces internally. Rather than making a $1 million commitment suppor ng BLM and related racial jus ce (Hinchli e, 2020), the rm should focus on improving its workers' well-being. According to Porter and Kramer (2006), responding to NGOs is a generic social issue for cosme c brands, which would not a ect the company's opera ons signi cantly. Whilst having a good work environment belongs to value chain social impacts, which have greater signi cance on the rm's ac vi es and performance.

Exhibit 8 Choosing and addressing social issues (Porter and Kramer, 2007)

3.0 Future sugges ons Although companies set out CSR objec ves voluntarily, most of the approaches are quite

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standardised. Standardisa on is typical for pro t-oriented businesses, where most managers tend to follow

Page 8 previous examples to avoid making mistakes (Visser, 2011). While the compe

on within the beauty

industry is quite intense, Glossier could embrace CSR in strategic product development, such as introducing more natural ingredients and lifestyle alongside its core values. While some companies are just greenwashing for marke ng purposes to make more pro t, other rms embrace this opportunity. The di erent a tudes to CSR can lead to a di erence between successful and unsuccessful business implementa ons (Di Benede o, 2017).

The company should think beyond damage elimina on, but to focus on new value crea on through new business model. For instance, Glossier could experiment with cosme c ingredients that require less water to remove. There is no doubt that listening to consumers' voices is essen al, but the brand could take more ini a ves beyond typical sustainability o erings that some other brands have already started.

While some beauty brands began to o er re ll op ons for used products, Glossier did not start an e ec ve recycling program. The brand could widely o er product recycling services for customers. Although reusable packaging might increase the start expenditure for using more durable materials, it will develop stronger customer loyalty in the long term (Cunningham, 2020). For instance, they could return the containers at the retail stores and receive loyalty points or discounts. It would be a win-win-win situa on according to the TBL theory (Elkington, 1998). The consumers could have lowered the budget; the company gets returning clients and possible reduc ons on raw material costs, thus diminishing the nega ve impact on waste.

On the other hand, stakeholders percep ons of authen city are cri cal to the e ec veness and acceptability of CSR communica on, as they evaluate accessible indicators like transparency and consistency to determine whether the organisa on is genuine to its promise (Avery, 2016). Glossier could be more transparent by providing informa on on the par cular factory where the products are made, and allowing visitors to read about the workers and owners with images of the manufacturing process. Thus, the credibility of the brand could be improved, increasing consumers’ purchasing inten ons.

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Exhibit 9

Page 9 Q4 - Glossier Brand and its Future Growth The beauty industry landscape now is quite di erent from a decade ago. The emergence of DTC beauty companies, driven by social media channels, email marke ng, and brand apps, has allowed such enterprises to sidestep some major beauty mul na onals that have been opera ng for decades. The aesthe c sector has been developing faster than ever in recent years. Many new enterprises have begun to abandon tradi onal adver sing strategies to a new content marke ng model (Biron, 2020).

Glossier dis nguishes itself from other e-commerce rms in listening to and communica ng directly with its consumers. As Glossier expanded, they u lised consumer advice and input to remain innova ve and develop new items (Avery, 2019). Meanwhile, the brand's content-rich pla orm (Into The Gloss) created a con nuous discussion with which clients could interact frequently.

Exhibit 10

1.0 Customer-Based Brand Equity Module (Keller, 1997) 1.1 Brand iden ty (Salience) Developing a dis nct posi on is one of the key priori es in developing a successful interna onal brand.

Glossier has developed a dis nc ve iden ty through branding, which incased the public's understa ng and recogni on of the brand. Glossier's curvy-looking G logo and the iconic washed-out pink became a part of its brand image (Avery, 2019). Thus, when people see this shade elsewhere, they immediately associate it with Glossier, snap a photo, and produce addi onal media content (#glossierpink) to promote the brand. The brand's packaging is also designed to maximise social media exposure from a consumer's perspec ve. Its pink pouch is reusable, with s ckers to encourage frequent use by customers. Therefore, individuals using the same pouch would make a direct associa on with the brand, and feel like they belong to the same community (Paintsil and Kim, 2021).

1.2 Brand meaning (Performance and Imagery) Consumers in materialis c socie es want to present meaning for their consump on. They prefer

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brands with intangible values aligned with their personal believes (Kapferer, 2012).

Glossier emphasises aspira onal realness, an approach that features natural-looking women to demonstrate goods in real life. It uses iPhones to shoot campaigns and product photos, much as its consumers do, to add a grounded and realis c vibe. The ladies on the site are a rac ve, but they are not awless. Visitors can see their pores, blemishes, and scars, which tend to be retouched by other brands (Turk, 2020). This authen c presenta on of beauty is consistent with Glossier's core ethos.

Exhibit 11

1.3 Brand response (Judgement and Feeling) "Rede ning luxury," according to Weiss, is the crea on of semi-a able niche products tailored with its targets' unique demands. Consumers see their purchasing experience as the same at luxury bou ques from the highly personalised service they received.

In other words, Glossier considers CEM to incorporate not just one purchase experience but also the whole journey customers have with the company (Miller, 2020).

Glossier communicate directly with customers through deligh ul and genuine text, taking on the pleasant tone of a female friend (Findlay, 2019). Glossier needs to ensure its message are clear and authen c: they advocate for diversity, encouraging individuals of all ethnici es and genders to accept their inherent and natural beauty.

1.4 Brand rela onship (Resonance) What sets the brand apart from tradi onal e-commerce is its willingness to listen to and communicate directly with its consumers. Glosser uses genuine user-generated material on social media to support the establishment and maintenance of customer engagement. The brand has various interac ons with audiences across channels. S ll, the end goal does not always result in a transac on, as maintaining a healthy rela onship with the customers is more important than purchasing new products. While other

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beauty companies have adopted omni-channelling, they tend to force consumer engagement in a seller's

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Page 11 perspec ve with sales targets set throughout every touchpoint. Oppositely, the brand never tries to manipulate consumers toward a certain engagement channel that suits the business. They analyse where the target audience likes to visit, thus making customer service available when they decide to interact (Miller and LaFrance, 2020).

2.0 Building Customer Loyalty Customer loyalty is the outcome of physical sa sfac on, which comprises the product or services and the value percep on of an experience developed by the business. It also includes consistently pleasant, recurring emo onal reac ons with consumers (Kotler, 2016). In other words, customer loyalty is the outcome of buyers' ful lment and their emo onal a achment to the brand or product. Glossier is a customer-centric brand, where the voice of its customers greatly in uences the company's strategic decisions. According to SproutSocial (2018), More than half of customers (57%) will raise their spending with a brand if they feel connected to it, and 76% will choose it over a rival if they feel an emo onal a achment. Hence, inves ng in CRM has improved revenue and increased customer loyalty. Also, authen c partnerships require actual conversa on from the brand's owner and employees. Consumers are increasingly interested in learning more about the individuals who work for their favourite companies (Poile, 2022). They also require brands to act as connectors, which means building rela onships with their consumers or bringing individuals from diverse backgrounds together.

2.1 The crea on of Customer Love (Exhibit 12)

T HE 7 ES ( BE LL , 2 000) 07.

03.

01.

05.

Endearment

Enlightenment

Empowerment

Showing transparency - directly conversations with customers and explaining every stage of the brand's activities (Schröder, 2022)

Consumers' opinions constantly influence the brand's decision making Peer-to-peer sales representative (Avery, 2019) - low spending on paid marketing

Enlistment "Social media-friendly" packaging and store display - to inspire and encourage content sharing (Avery, 2019)

02.

Customer Loyalty Program - offering discounts, giveaways, exclusive access to events and new product try-on

06.

Friend-like sales assistants (editors) Creating a "sense of authenticity and belonging" (Schröder, 2022)

Entrustment Enchantment

Engagement

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04.

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The mission of "Democratise beauty."

Into the Gloss - starting honest conversations about beauty and women's daily routine (Avery, 2019) Developing connections with likeminded people

Pop up stores: - Exclusive and Instagramable giveaways - Consumers are treated with beverages and champagne (Nast, 2020) Free samples, stickers, and the pink punch with every purchase

Page 12 2.2 The Loyalty Ladder Exhibit 13 The Loyalty Ladder explained according to Baines et al. (2011)

Advocacy <——————

Emphasis on maintaining and enhancing existing relationship

Loyalty <—————— Trust <——————

Emphasis on new customers acquisition

Bad experience results in consumers moving downward

Glossier has created value beyond products by opening a dialogue on digital channels, empowering customers to express feelings and crea ng a brand community. West (2015) states that providing the nest product in a market category might not be enough to keep a brand alive: it's the personal interac on with brand representa ves that keep customers coming back. Baines et al. (2011) suggest that loyalty is ranked at di erent levels, and consumers move from each stage gradually. Glossier focuses on developing honest connec ons with its customers rather than merely selling products, enabling the brand to stand out from the crowd (Schlesinger, 2020). Likewise, most of the followers of Into the Gloss have moved from the stage of trust to advocacy. The capacity of a brand to generate a sense of in macy would increase its vitality.

On the other hand, user-generated content in online forums helps customers visually exhibit their par cular interests and trends while also providing a genuine representa on of how the item may be incorporated into a lifestyle. Hence, the

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Exhibit 14

Page 13 consumers are transformed into partners (See gure 3). A partner is a customer who has a long-standing rela onship with the company. Both par es will bene t from the mutuality in the rela onship (Baines, 2011). For example, having earned media increases authen city and reduces costs for opera ng an in uencer marke ng program. The interpersonal experiences are derived from socialising with other customers in the brand community, where they receive a sense of belonging and personal self-a rma on (Paintsil, 2021). At the advocacy stage, the rela onship between the brand and consumers becomes far more resilient.

2.3 Brand Touchpoints

Exhibit 15. Shows how Glossier developed and improve loyalty through omnichannel 3.0 Future Challenges And Opportuni es Maintaining a consistent customer experience across channels Glossier's popularity among Into The Gloss readers was one of the driving forces behind its success.

Glossier needed to preserve its relevance in the future by understanding what was essen al to both audiences. The team had already evaluated basic sta s cs on each site, however the real bene t came from categorising its audiences into visitors or consumers and those that are not (Buchanan, 2019).

Also, themes and editorial style should be aligned throughout all sites. Touchpoints and customer's journey also need to be coordinated with the same message. The marke ng team, for example, sought to customise their email messages based on user ac vi es across various pla orms. The challenge is to keep the emails relevant yet without overwhelming consumers with several promo ons (Segment, 2020).

Expanding beyond the exis ng community Glossier is facing a new di culty as it looks to extend its retail footprint, both digitally and in

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physical loca ons, as it con nues to develop. DTC businesses have a signi cant advantage, where they could

Page 14 establish personalised connec ons with their customers while collec ng valuable data that would be hard to obtain in tradi onal retail. This is increasingly becoming a two-way connec on, with stakeholders collabora ng with companies to co-create new goods and services (Schlesinger, 2020). Although the community will con nue to dis nguish Glossier from compe tors in the future, the challenge for the brand is to scale that closeness as they expand into a global market.

Improving physical presence Building a successful store network takes many years and requires signi cant expenditures which require decades to break even (Corstjens and Lal, 2012). Although the brand has successfully operated several agship stores and popups, the challenge lies in the transmission of digital sen ment and feeling into retail experiences globally. The brand must react to wide variances in customers' buying behaviour over countries with di erent cultures, which puts them at risk of making poor decisions.

3.1 Strategic Recommenda ons Glossier could make innova on on its in uencer marke ng program. The problem with today's in uencer marke ng is that it appears that some in uencers are only a emp ng to sell items to the audience. It is di cult to nd reliable, trustworthy advocates who recommend items they actually enjoy.

Glossier should look for compelling and trustworthy women that exemplify all the brand's values.

Besides, Glossier could expand in new ci es and con nue to do popups for product launches. The brand's showrooms are popular for "emo onal commerce", with innova ve and boundary-pushing interac ons and displays. Glossier could collaborate with food brands and expand their store services to o er beverages or dining, which is evident in its San Francisco popup with Rhea's cafe. Also, the store could include a spa area for consumers and editors to interact, such as communica ng beauty ps and sugges ng product preferences. Therefore, the brand would build an o ine environment similar to Into the Gloss.

However, the brand should avoid partnering with Sephora or other major retailers to preserve its exclusivity.

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Exhibit 16

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agship store. [image] Available at: <h ps://

www.dezeen.com/2021/12/14/glossier-make-up-store-covent-gardens-oldest-building/> [Accessed 2 April 2022].

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ve advantage of corporate philanthropy. Harvard

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Exhibit 8 Choosing and addressing social issues Porter M.E. and Kramer M.R., 2007, "Strategy and society: the link between compe

ve advantage and

corporate social responsibility”, Harvard Business Review, Vol. 23 No. 5. [image] Exhibit 9 Lumi, 2018. Unboxing Glossier. [image] Available at: <h ps://www.youtube.com/watch? v=IN7rn1Y49nE> [Accessed 2 April 2022].

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Exhibit 12 Author, 2022. How Glossier builds Customer Love through the 7Es

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Exhibit 13 Author, 2022. Glossier's Loyalty Ladder explained according to Baines et al. (2011) Exhibit 14 Glossier.com. n.d. What is Glossier - About Us | Glossier. [online] Available at: <h ps:// www.glossier.com/about> [Accessed 15 December 2021].

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