Drunk Elephant Integrated Marketing Campaign

Drunk Elephant Integrated Marketing Campaign

• 1.
  Drunk Elephant Nichole Weaver Nashville, TN37221 Nicholeeweaver@gmail.com 2021 Integrated Marketing campaign
• 2.
  Table of Contents Executive Summary............................3 Backgrounder......................................3 SWOT Analysis....................................5 CustomerProfile.................................6 Potential Market.....................................7 Objectives & Strategies.....................8 Points-Of-Parity...................................9 Creative Brief.....................................10 Promotional Mix................................11 Creative Execution...........................12 References.........................................14
• 3.
  Executive Summary As aleader in the clean beauty market, Drunk Elephant’s IMC campaign will aim to increase web traffic, online sales through efforts such as repackaging and redesign of its website. The campaign will also seek to increase social media following through efforts such as design overhauls and increasing ad presence on all social media accounts. History Tiffany Masterson struggled for years with a multitude of skin concerns. Feeling frustrated and confused as to why none of the products she purchased were working, she started educating herself on the way skin reacts to certain ingredients. When she began isolating combinations of synthetic and natural ingredients with direct skin benefits, she identified the suspicious six; which she claims to be a primary cause for her and many others’ skin issues. “Once I eliminated all of them from my routine, it was amazing: My skin returned to a clear, healthy, balanced state. But I couldn’t find products without at least one of the Suspicious 6 in them—so I decided to make them myself.“(Drunk Elephant, n.d., Our Story). Backgrounder Core Values & Mission Statement The Drunk Elephant philosophy is firmly rooted in the belief of necessity for a "skin reset" through the elimination of harmful ingredients from one's skincare regimen; reflecting the school of thought that "A routine is only as good as its worst product, and a product only as good as its worst ingredient”. The company mission similarly reflects this: "We are committed to using only ingredients that either directly benefit the health of the skin or support the integrity of our formulations. We never take into account whether something is synthetic or natural, instead choosing ingredients based on biocompatibility…That's why we focus on healthy pH levels, formulations the skin recognizes, the small molecular structure that's easily absorbed, and effective active ingredients that also support and maintain the skin's acid mantle. But what we leave out of our products is just as important as what we put into them, so you will never find what we call the Suspicious 6™ (essential oils, drying alcohols, silicones, chemical sunscreens, fragrances/dyes, SLS) in our line." (Drunk Elephant, n.d., Philosophy)
• 4.
  Financial Status Since itsfounding in 2012, Drunk Elephant, LLC has had its fair share of peak moments financially. In November 2019, the company was acquired by Shiseido Americas Corp., a subsidiary of Shiseido Co Ltd. for $868.3 million. The news broke after Shiseido had competed with luxury beauty giant Estée Lauder for the last 8 months over ownership (Mergerstat M&A Database, 2021). Overall, Drunk Elephant has been doing well financially. They ended their December 2019 fiscal sales year with $125 million (Nikkei Business Trends). And the Shiseido corporate site listed Drunk Elephant as the leading factor of success within their eCommerce make-up sales ranked the number one skincare brand at Sephora ( Shiseido Company Ltd, 2020). Product Offerings A look at the product selection on the Drunk Elephant website highlights the Brand’s three main product categories: skincare, haircare, and body care. The skincare line is by far their largest category and consists of various moisturizers, serums, masks & spot treatments, cleansers, SPF products, eyes, and lips. The haircare selection is mainly varying cleansing products, conditioners, and other leave-in, specialized treatments such as hair masks, sprays, and scrubs. Finally, the body care line is made up of lotions, scrubs, cleansers, and even deodorant cream; a new take on standard deodorant without harmful aluminum and other frequent toxins. Competitors In a recent report by Women’s Wear Daily, there is a new movement happening from within the beauty industry: transparency. While Drunk Elephant is at the forefront of this race, it is competing against a select few other brands such as Beauty Pie, Deciem, Glytone, No BS, and Garnier; all of whom have begun listing the exact percentages of the active ingredients in their products in addition to where they were derived from. Another brand of interest is Beauty Bioscience, whose main claim to fame is their use of "maximum concentration" when it comes to the active ingredients of their products that are supposed to guarantee their various benefits (STRUGATZ, 2018).
• 5.
  Current Marketing Strategies Ina recent report from Launch Metrics, the key to Drunk Elephant's cult marketing success has been their direct-to-consumer approach. Everything the brand stands for, from the product categories to their ingredients, stemmed from what the founder was looking for as a consumer herself. Additionally, the brand has become known for its unwavering honesty with consumers. They take the time to give well-thought-out responses to their Instagram comments and adjust the formulation and packaging of their products based on consumer opinion. Even more crucial to their success, Drunk Elephant has stood out in the clean beauty crowd via their lack of celebrity and influencer-backed endorsements. Instead, they keep the focus on peer opinions through word-of-mouth marketing strategies, such as participating in online forums and showcasing customer testimonials on their social media pages. It is because of this authenticity that Drunk Elephant has garnered recognition and brand value from trusted media outlets such as Harper’s Bazaar and Cosmopolitan (Cohen, 2020). Current Target Market According to a separate article in WWD, Drunk Elephant's current target market is "cross-generational," and spans across younger generations from Gen Z to Millenials, with potential for rapid expansion in Asia as it is currently experiencing rapid growth in the skincare market. Consumers of the brand are outspoken about their opinions, environmentally conscious, and self-aware. They pay close attention to the ingredients that are in the products they consume as well as the effects those ingredients have on the environment; not afraid to call out major brands on social media for environmental and ethical blunders (Collins, 2019).
• 6.
  SWOT Analysis
• 7.
  Customer Profile This isKelsey. Kelsey is 30 years old and lives in New York City, New York. She graduated from New York University class of 2018 with her Bachelors in Media Communications, and now works full time at a major publishing firm in the city. She makes $80,000 a year and, while she currently rents her 1 bedroom SoHo apartment, she has been working diligently towards her goal of buying a house; paying off her student loans, repairing her credit, and doing her best to live within her means. That being said, she is willing to splurge a little more on higher-end and prestige branded products recommended to her by close friends and family. Once Kelsey has found a product she likes, it is hard for her to try out any other variations; she knows what she likes and generally sticks to what she knows or has already experienced. Kelsey cares deeply about the environment, and frequently patrons brands who are committed to sustainable processes, packaging, and delivering cruelty-free products. She frequents the local farmer’s market for her groceries, yet she still manages to eat out at least 3 times a week. She cares about the ingredients that are in the products she consumes and loves to shop for organic fruits and vegetables as well as non-toxic skincare and personal hygiene products. Kelsey stays up to date on current events and local political issues, treating her social media accounts as political activism pages; the main platforms she uses are Instagram, Snapchat, Facebook, Pinterest, and TikTok (though she rarely ever posts and prefers to be only a consumer of media on the viral video sharing app).
• 8.
  Potential Market Millenial Activists TheDrunk Elephant consumer is not tied to one specific set of demographics, but what we have seen in recent sales data & trend reports is that majority of DE customers are female, between 23-38 years old, and make up a large portion of the lower middle and middle class financial According to data gathered from Google AdWord’s MarketFinder, the biggest portion of the Drunk Elephant market are located in New York, California, and Texas. They typically have at least a high school education, with the majority of them also having either obtained a college degree or are currently pursuing one (Find global business opportunities - market finder by Google, 2021). While there is great brand appeal among both Gen Z and Millennial consumers, the primary target market for this brand is the Millennial generation. This is because out of the two groups, millennials possess the most annual US spending power, as recently reported in an article by the Global Cosmetics Industry, and is valued at $600 billion versus that of Gen Z’s $143 billion (Jones 2018). A recent consumer outlook article reported that 54 % of Millennial purchases are made online, and 60% of them prefer generic over name brands (Marks, 2019). Additionally, they are known for being budget-conscious but are still willing to spend more of their hard-earned dollars on big-ticket and prestige items so long as they feel a brand is capable of delivering higher quality products. Millennials are known for being more brand loyal than their Gen Z counterparts, too. They tend to gather their product recommendations from close friends and family members whose opinions they trust. Once they manage to find a product they like and can meet their needs, they tend to stick with it and not stray away from that brand. Furthermore, they place value in concepts such as the “end of fast fashion,” various environmental causes, cruelty-free products, and a brand’s overall sustainability through elements such as how recyclable their packaging is and the environmental effects of their manufacturing processes (Matusow, 2021). What’s more, Millennials are not fazed by influencer endorsements. This is a good indication of why this group currently places so much trust in the Drunk Elephant brand. The authentic social media marketing strategies employed by DE tend to focus on real- life consumers and highlight their real-life experiences, making it one of the most effective methods for gaining Millennial trust in the beauty market.
• 9.
  Marketing Campaign Objectives andStrategies GOAL Boost Drunk Elephant’s Relevance To Millennials, And Develop Their Trust As A Means Of Strengthening Overall Customer Loyalty. Increase Web Traffic Sales By 30% Within The Next 12 Months Repackaging And Redesign Of Older/Trusted Products Creation Of SEO-friendly skin Care Blog With Guest Contributors Encourage Repeat Purchases From Existing Customers By Introducing A Subscription Savings Model and relevant promotions issued after purchase Improve Ad Run Times (Facebook Around Lunch, Banner Ads In Evenings Increase social media following by 20% over the next 6 months Design Overhaul Of All Social Media Accounts Revamp Customer Testimonials Displayed On Social Accounts Reach Out To Trade / Relevant Social Media Accounts With Product Information And Its Benefits To Gain Features And Maximize Interest Among The Public Fine Tune Posting Schedule For All Accounts OBJECTIVES & STRATEGIES: 1. 2.
• 10.
  Creative Strategy Emotional Rational Trustedamong top-tier media outlets Honest & authentic voice Direct-to- Consumer social media engagement No paid endorsements Non-toxic ingredients Cruelty-free products 100% sustainable packaging Flexible, customizable, & stackable product mix Points of Parity Creative Strategy Statement: “Drunk Elephant: Protecting You & Your Environment” Rejected Statements: • Drunk Elephant: Honest. Authentic. Cruelty-free. • Drunk Elephant: Sustainable. Authentic. Cruelty-free. • We keep your skin and the environment safe. • Protecting both your skin and the environment at the same time. • Drunk Elephant: Custom Skin Care Made to Protect You & the Environment Tag Line : “Skin Care You Can Trust” 
• 11.
  Creative Brief Q&A Whatare we advertising? Drunk elephant is the only skincare line that Millennials should trust to deliver products that are compatible with not only their skin but also the planet they live on. Whom are we talking to? Millennial women in their early 20s to early 30s, that are either recent graduates or young professionals. What do they currently think? Too many of the skincare brands on today's market try to fool their customers into thinking expensive = effective skincare. But despite the expensive marketing campaigns and influencer endorsements, they seem to have zero data to back up these claims. What would we like them to think? "For any of my skin concerns, I know that I can trust Drunk Elephant to provide me with products that are not only effective but also environmentally friendly." What is the single most persuasive idea we can convey? No matter what type of skin you may have, Drunk Elephant has a product combination that will safely and effectively address your concerns. Why should they believe it? Drunk Elephant only uses biocompatible ingredients; meaning consumers can rest easy knowing that none of our products will cause a negative reaction to their skin. Are there any creative guidelines? Any content must be visually appealing and cohesive to the Drunk Elephant brand aesthetic.
• 12.
  Promotional Mix & CommunicationChannels "Instagram advertising costs depend on your bidding model, like cost-per- click (CPC) or cost-per-impressions (CPM). On average, companies pay $0.20 to $2 per click and $6.70 per 1000 impressions for Instagram ads. Keep reading to learn more about Instagram ad costs (How Much Does It Cost to Advertise on Instagram? 2021)!" "TikTok ads start at $10 per CPM (cost per 1000 views). Also, they require you to spend a minimum of $500 on a campaign (Geyser, 2020). According to Allure Magazine’s 2021 U.S. Media Kit, advertisements can run between $183,048 for a single, full-page ad to $228,805 for a cover ad (Allure U.S. 2H 2021 Media Kit, n.d.). Social Media: (1) Instagram & (2) TikTok We will be using Instagram to highlight customer testimonials and TikTok videos to demonstrate various “smoothie” recipes for both potential and current consumers. Millennials use Instagram the most out of any social media platform, and TikTok is great for targeting Millennial beauty enthusiasts. Budget: Magazine Ad/Feature (3) We chose to advertise in Allure Magazine as it is one of the most popular beauty magazines read by older Millennials. Additionally, PR placements can be a supplemental option that would not incur additional costs, (depending on the level of connections staff may have with the publication’s beauty editors). Budget:
• 13.
  Creative Execution
• 15.
  References Cohen, J. (2020,February 21). #BBMoment: Drunk Elephant and how new Brands Make a Splash in the Beauty Industry. Launchmetrics. Retrieved November 28, 2021, from https://www.launchmetrics.com/resources/blog/drunk-elephant-marketing-strategy COLLINS, A. (2019). What Drunk Elephant Deal Means for Beauty M&A. (cover story). WWD: Women’s Wear Daily, 1–7. Drunk Elephant. (n.d.). Our Philosophy. Drunk Elephant. Retrieved November 28, 2021, from https://www.drunkelephant.com/pages/philosophy Drunk Elephant. (n.d.). Our Story. Drunk Elephant. Retrieved November 28, 2021, from https://www.drunkelephant.com/pages/about-us Drunk Elephant LLC. (August 30, 2021). Mergerstat M&A Database. https://advance.lexis.com/api/document?collection=company-financial&id=urn:contentItem:5WNS-DB51- JBH8-X2R3-00000-00&context=1516831. Shiseido to acquire Drunk Elephant Holdings. (October 8, 2019, Tuesday). Nikkei Business Trends. https://advance.lexis.com/api/document?collection=company-financial&id=urn:contentItem:5X8C-C7N1- JBF1-401X-00000-00&context=1516831. STRUGATZ, R. (2018). Transparency in Beauty Sweeps Industry: Deciem, Drunk Elephant and Beauty Pie Are at the Forefront of the Movement. WWD: Women’s Wear Daily, 1–16. Integrated report 2020 | Shiseido Company. (n.d.). Retrieved November 29, 2021, from https://corp.shiseido.com/report/en/2020/ Find global business opportunities - market finder by Google. (2021, December 3). Marketfinder.thinkwithgoogle.com; Google. https://marketfinder.thinkwithgoogle.com/intl/en_us/explore-markets JONES, S. (2018). Getting the Gen Z Beauty Consumer Mindset: A checklist for these demanding, digital, and diverse post-millennials. Global Cosmetic Industry, 186(6), 44–48. Know Your Beauty Consumer. (2017). Global Cosmetic Industry, 185(7), 26–27. Maclean, M. (2018, May 26). Key Marketing Differences Between Millennials and Gen Z. Digital Beauty; Taylor & Pond. https://digitalbeauty.com/millennial-genz-marketing/ Marks, J. (2019). Consumer Outlook 2019: Millennials Rule as Gen Z Rises: Their populations are big, but their habits are different. Home Textiles Today, 40(1), 22–24. Matusow, J. (2021, February 3). Drunk Elephant—Beauty Company Of The Year: Excellence In Packaging. Beauty Packaging. https://www.beautypackaging.com/issues/2021-01- 01/view_features/beauty-company-of-the-year-excellence-in-packaging/ Shirk, L. (2019, October 9). Shiseido acquires skincare brand Drunk Elephant to target a younger base. DutyFree Magazine; Global Marketing Company Ltd. https://www.dutyfreemag.com/brand- news/fragrances-cosmetics-skincare-and-haircare/2019/10/09/shiseido-acquires-skincare-brand- drunk-elephant-to-target-a-younger-base/#.Yal4ZC-B3RZ White, A. (2019, October 9). How Preventative Skincare Affects Target Demographic | Digital Beauty HQ. Digital Beauty; Taylor & Pond. https://digitalbeauty.com/how-preventative-skincare- affects-target-demographic/ Allure U.S. 2H 2021 Media Kit. (n.d.). Allure; Condé Nast. Retrieved December 6, 2021, from https://drive.google.com/file/d/1zh8vrqBqtTT-frRuzrjZLQ2Bo3NEVVwM/view Geyser, W. (2020, January 2). How Much do TikTok Ads Cost? Influencer Marketing Hub. https://influencermarketinghub.com/how-much-do-tiktok-ads-cost/ How Much Does It Cost to Advertise on Instagram? (2021, January 12). WebFX. https://www.webfx.com/social-media/how-much-does-it-cost-to-advertise-on-instagram.html