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L’Oreal: Sublime Bronze Madison Marketing Agency Heather Brown, Jillian Delin, Caio Garbim, Chase Siegel, Nick Yerkes Integrated Marketing Communications Hessick April 18, 2019

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Page 1: Madison Marketing Agency Heather Brown, Jillian Delin ... · Cosmetics Division in which brands are sold in healthcare outlets around the world. Included here are brands such as CeraVe,

L’Oreal: Sublime Bronze

Madison Marketing Agency

Heather Brown, Jillian Delin, Caio Garbim, Chase Siegel, Nick Yerkes

Integrated Marketing Communications

Hessick

April 18, 2019

Page 2: Madison Marketing Agency Heather Brown, Jillian Delin ... · Cosmetics Division in which brands are sold in healthcare outlets around the world. Included here are brands such as CeraVe,

Table of Contents

Executive Summary…………………………………………………………………………...1-3

Part 1:

Industry Background………………………………………………………………………….3

Organization…………………………………………………………………………………..4-5

Internal Review

Description of Product

External Review………………………………………………………………………………5-8

SWOT Analysis………………………………………………………………………………8-12

Marketing Strategy and Goals………………………………………………………………. 13-15

Marketing Goals

Target Markets

Part 2:

Communication Objectives…………………………………………………………………..15-17

Creative Message/Strategy…………………………………………………………………...17-18

Creative Recommendations…………………………………………………………………..18-20

Media Recommendations…………………………………………………………………….20-25

Monitor, Evaluate, and Control………………………………………………………………25-29

Budget Summary……………………………………………………………………………..29

Works Cited…………………………………………………………………………………..30-34

Appendix……………………………………………………………………………………..35-37

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Executive Summary

Campaign Objectives

The campaign objectives for our marketing agency are to grow the audience, awareness,

and success of L’Oréal Sublime Bronze sunless tanner. Specifically, we want to increase

awareness among our target audience (females, ages 15-25) by 10%. As well as increase

purchase and repurchase among our target audience by 5%. Finally, to create a 5% increase in

our social media following on the official L’Oréal Skin Instagram account.

Campaign Theme

To achieve these goals, advertising will be placed on a variety of platforms including

print, television, and social media. We intend to primarily use an Instagram sweepstakes to

promote and spread awareness of the “Bring Your Own Sun” campaign incorporating the

hashtag #BringYourOwnSun. The sweepstakes will be designed to increase awareness of the

product as well as create consumer involvement. Secondly, we will be placing an advertisement

in Allure Magazine to communicate product features and skin care benefits while connecting our

product to the “Best of Beauty” reputation of Allure. In addition, the plan will include a national

commercial to demonstrate the product’s ease of use and affordable price point to move

consumers to the action of purchasing the product.

Target Audience

We expect our chosen communication channels to increase awareness, knowledge,

consumer conviction, and preference for the L’Oréal brand and the Sublime Bronze sunless

tanner product. The primary target audience for Sublime Bronze are females seeking a tan

nearly year-round while our secondary audience are females who connect being tan as part of

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special life moments. Our two target audiences have interrelated characteristics such as ages

ranging from 15-25 and align with our price point as they tend to have lower income levels

consistent with being teens and young adults in their high school and college years. Both

audiences display psychographic and lifestyle patterns involving Greek life, extracurricular

involvement, and networking activities which indicates the consumer base would desire a sunless

tanning product on a more frequent basis. Our campaign theme and slogan, “Bring Your Own

Sun”, promotes the idea that our product is the equivalent to sunshine in a bottle. The intent

behind our communications is to convey the concept to our target audience that a tan is always

possible no matter the season, physical location, or the weather forecast.

Media Plan

To summarize, our media plan will utilize the unique aspects of magazine

advertisements, television commercials, and various social media platforms such as Instagram,

Facebook, and YouTube to effectively convey our integrated marketing communication plan to

targeted consumers. Strategic positioning of our television commercial during the Bachelor on

ABC, coupled with a magazine advertisement placed in Allure to represent the Best of Beauty,

and a social media sweepstakes to get our product into the hands of consumers will generate

product awareness, audience involvement, and most importantly a connection to sharing the

hashtag #BringYourOwnSun.

Program Evaluation

Our media plan will be monitored and evaluated through online analytic trackers

contained within our social media accounts as well as with the services of Vernon Research

Group. By tracking specific metrics such as engagement rates, follower increases, conversion

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rates, click-through rates, effectiveness, and consumer responsiveness through generated reports

we will be able to see the impact that our media plan has had on L'Oreal's awareness, sales, and

overall outcomes on a timely basis.

Industry Background

The Cosmetic and Beauty Products industry generates a revenue of nearly 52 Billion

dollars as of 2018, spread among 3,986 businesses, ranging from essential to discretionary

products (Diehl, 2018). The US industry for cosmetic and beauty products is lead mainly by

Estee Lauder Companies Inc. as well as L’Oreal USA Inc.

The Cosmetic and Beauty Products industry is in the mature phase of its life cycle. The

industry's contribution to the overall economy is said to grow at a rate of 1.8% until 2023, which

is heavily in line with GDP growth (Diehl, 2018). As for the number of operators within the

industry, they will increase at a rate of 5.3%, totalling close to 4,898 companies in 2023(Diehl,

2018). This rate allows for opportunities for new companies to capture the attention of

particularly niche markets.

Current trends in the industry relate to Estee Lauder Companies Inc. as they made a

decision in 2014 to devote an entire segment to men's skin care, as grooming products have seen

an increase in demand (Diehl, 2018). Along with serums and facial oils, the common beauty

consumer is beginning to look for natural and organic skin care. In the Benchmarking

Company’s 2018 PinkReport, a study claimed that out of 4,000 US men and women, 74% said

they feel better about purchasing natural or organic products (Herich, 2018). Overall the

Cosmetic and Beauty Products Industry is stable in the mature phase of its life cycle, with

revenue expected to remain motionless.

Organization

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Internal Review

L’Oreal USA Inc. is the world’s largest cosmetic company, developing activities in the

field concentrating on hair color, skin care, sun protection, make-up, perfume, hair care and

men’s skincare (L’Oreal, 2018). They currently hold the second largest market share in the

industry, trailing behind Estee Lauder Companies Inc. at 7.2% (Diehl, 2018).

L’Oreal currently holds 33 brands split into four main labels. L’Oreal Luxe, is home to

brands found in department stores and specialty stores, such as Yves Saint Laurent Beaute,

Urban Decay and Lancome. Then there is the Consumer Products Division in which brands are

distributed in mass market retail channels. Brands that lie within this division are Maybelline,

Essie and Garnier. Next, there is the Professional Products Division targeted at salons

nationwide. Here you will find brands such as Redken and Pureology. Lastly there is the Active

Cosmetics Division in which brands are sold in healthcare outlets around the world. Included

here are brands such as CeraVe, Vichy and La Roche-Posay. (L’Oreal, 2018)

L’Oreal’s mission is to provide the best in cosmetics innovation to women and men

around the world with respect for their diversity (L’Oreal, 2018). Followed by their mission

statement is their ambition which is to win over another one billion consumers around the world

by creating the cosmetic products that meet the infinite diversity of their beauty needs and

desires (L’Oreal, 2018). L’Oreal differentiates itself in the market place by placing their products

in drug stores as well as mass merchandisers. This allows for them to properly match their prices

and products with the corresponding demographics.

Description of product/brand

In 2018 L’Oréal acquired 26.9 billion euros in sales, equaling 30.39 billion dollars.

(L’Oréal, 2018) Our self-tanning product lies within L’Oréal’s operational division of Consumer

Products. By September 30, 2018 sales within this division came in at 10.22 million dollars.

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L’Oréal Sublime Bronze costs between $10.00 - $12.99 depending on product purchase location.

This self-tanner is widely distributed and can be purchased at specific stores such as Walmart,

Target, and Ulta, as well as a variety of other drugstores, supermarkets, and convenience stores.

L’Oréal Sublime Bronze is in the growth stage of the product life cycle. This line of

sunless tanners was released nine years ago in 2010. Since its introduction to the market, L’Oréal

has begun and continues to grow the line by adapting and reformulating in order to provide

various forms of this product depending on consumer desires. For example, L’Oréal Sublime is

currently offered in the form of a long-lasting serum, on-the-go touch up towelettes, 360-degree

airbrush canisters, as well as the most frequently purchased bronzing milk.

The key benefits that Sublime offers consumers is its ability to deliver an even, streak

free glow while simultaneously nourishing and softening skin. Other key benefits include it’s

odorless, quick dry formula. This coincides with their current advertising and brand image.

People know and trust the L’Oréal brand for a wide range of products, especially within the

realm of skincare. L’Oréal Sublime differentiates itself by being an affordable, skin nourishing,

self-tanning option that is easily accessible across the nation. Their recent ad campaigns use the

“You’re Golden” slogan to further differentiate themselves by promoting the idea that no matter

what shade of tan you want, L’Oréal Sublime has a buildable self-tanner that is perfect for you.

External Review

Competitive Situation

The Cosmetic and Beauty industry, where L’Oreal can be found, is in the mature stage of

its life cycle with an annualized rate of growth of roughly 1.8% until 2023 (Diehl, 2018).

However, despite miniscule growth rates and the already established market with major players

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such as Estee Lauder Companies Inc., L’Oreal USA Inc. and Mary Kay Inc., the number of

enterprises actuating in the industry is expected to grow 4.2% until 2023 (Diehl, 2018). Looking

through a smaller lense on sun care related cosmetics, in 2018 the category of L’Oreal’s producer

(Sunless tan/ Self tanner products) had roughly 6.77 million repeat-use customers. The market

value of this section of the industry was $220 million in 2016 with an expected growth to $300

million by 2025 (Statista, 2016).

Major Competitors

L’Oreal has two main competitors within the industry, Clinique and Jergens. Both are

direct product competitors to L’Oreal’s Sublime Bronze self-tanning milk. Clinique is owned by

Estee Lauder, one of the major companies in this industry, while Jergens is a company detained

by the Japanese KAO corporation. Clinique, in regard to their key target market, has experienced

a 29% growth among customers under 24 years old as well as a 22% growth among those 25-34

and an 8% growth among those over 65-year-old (Numerator, 2019). In regard to the ethnicity of

Clinique customers, there was a very expressive growth of 103% among Asian and a 3%

increase among Hispanic ethnicities. Caucasian and African American customers had a decrease

in growth of 6% and 42%, respectively (Numerator, 2019). As for Clinique’s customer’s median

income, growths were reported only by customers with an annual income above $60k, with the

biggest increase among the over $125k category expressing a 51% increase. Also, among the

customers for Clinique there was a 19% increase among those who have no kids and a 50%

increase among customers that have an advanced degree from college (Numerator, 2019).

Jergens, our second chosen competitor, has less expressive changes in numbers

regarding age. The only two age groups that have an increase on Jergens’ customer

demographics are the 45-54 and 55-64-year-old groups, with respective increases of 3% and 9%.

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As with Clinique, Jergens had a very significant growth with one of the ethnicities. Within

African American customers there was a 126% increase as well as a 17% increase among

Hispanic customers. Asian and Caucasian customers experienced a 11% and 12% decrease

respectively. As for Jergens’ customer median incomes, the biggest increase was for the under

$20k of 10% followed by 2% on $40k-$60k, 3% on $60k-$80k and only 1% on the $80k-$100k

category. As for families among Jergens’ customers, there was a increase of 10% on customers

with no kids and a small 3% increase on customers that had an advanced college degree

(Numerator, 2019). The market share concentration in the industry is low, only 32.3% of the

total revenue of 2018 is in the hands of the four biggest market share holders. Estee Lauder

detains 13.4% of the market while L’Oreal has 7.2% of the market. (Ibis World, 2019)

Jergens (KAO Corporation’s brand) is not a major player on the industry to the point that

its market share is differentiated on the report, therefore it is part of the 74.0% of other brands

(Diehl, 2018). As to Clinique’s and Jergens’ position in the market, by looking at pricing as well

as the competitors’ web pages we can see that Clinique stands as a more premium and generally

more expensive brand, inherited from Estee Lauder’s luxury appeal. Jergens on the other hand

has a product pricing closer to the products within L’Oreal, therefore being more affordable than

Clinique. However, Clinique still possesses sales promotions as part of their strategy. By

purchasing on Clinique’s web page the customer can get 5 free “demonstration size” products

when spending over $40 and if the customer spends over $65, beyond the 5 “demonstration size”

products, they get a regular size product for free. Also on Clinique web page, there is the

possibility to save 15% on the customer’s first online purchase if he/she joins the Clinique

Loyalty Program. As for Jergens, on their web page there is a field where customers sign up for

newsletters that give coupons and offers that are sent to the customer’s email. There are also

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online coupons on websites for Jergens such as “Groupon” that have discounts for Jergens

products.

With respect to the companies’ advertising, there are multiple advertisements on TV for

Jergens, they almost always feature one or two women displaying and explaining the products

advantages (iSpot TV, 2018). For Clinique there are magazine advertisements as well as a

company run Youtube channel with tutorials and videos displaying Clinique’s products.

Clinique’s strengths revolve on its mother company Estee Lauder. Estee Lauder Corp. is a major

player on the Cosmetic Industry (Diehl, 2018) and has a premium image among competitors and

customers. However, because of this premium image its products’ prices are more expensive.

L’Oreal has the advantage of being the second major player in the industry, along with its good

image among quality brands and the ease in which its products are found throughout many

distributors, it is able to maintain its affordability.

SWOT Analysis

Strengths

L’Oreal has quite a few qualities as a company that make them tremendously successful.

One strength that L’Oreal has it that it is a global leader in beauty product research. As a

company, L’Oreal invests significantly in Research & Development in order for products to be

innovative and effective. The main R&D activities focus on products within the skincare,

haircare, color cosmetics, beauty, and sun protection divisions. L’Oreal operates the R&D

department by having 20 research centers and 16 evaluation centers based globally in France,

US, Japan, Brazil, China, India, and South America (MarketLine, 2018). L’Oreal also

collaborates with various laboratories, start-ups, suppliers and research institutions. In the fiscal

year 2017, the company invested 877 Million Euro into R&D efforts (MarketLine, 2018). The

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strong R&D effort gives L’Oreal the ability to have a “first-mover” advantage over competitors.

Another strength that L’Oreal possesses is having a large portfolio of brands, and a strong market

position.

L’Oreal has a portfolio of 34 international brands, some of the popular brands are

Lancôme, Giorgio Armani, Garnier, Maybelline New York, and Redken (along with a multitude

of others). L’Oreal holds a market share of 7.2%, which is only second behind direct-competitor

Estee Lauder (13.4%), and in third is Mary Kay (5.6%) (Diehl, 2018). L'Oreal's products are

available in a variety of distribution channels. These channels range from mass market retailers

to selective distribution channels. These channels include pharmacies/drugstores, hair salons, and

a network of directly-owned stores and franchises. L’Oreal’s professional products division

distributes products through channels of hair and beauty salons, the consumer products are

distributed through all mass-market retailing channels, and the luxury products division

distributes through selective retail outlets and department stores (MarketLine, 2018). The variety

of distribution channels give L’Oreal the ability to distribute products efficiently while creating

long-term relationships with suppliers.

Weaknesses

Although L’Oreal is a major player in their industry, there are some things that their

competitors excel at. For example, Estee Lauder has a slightly higher market share than L’Oreal,

at 13.4% compared to 7.2% (Diehl, 2018). This could be because of Estee Lauder's superior

distribution network, with many regional distribution centers established to facilitate the

company to deliver products to retailers and consumers as quick as possible. This distribution

network also strengthens the company’s relationship with retailers, wholesalers, and consumers.

Mary Kay is another top competitor that has a competitive advantage in the direct selling

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channel, where the company’s products are sold primarily through their independent sales force

of 2.4 million (Mary Kay, 2016). This is not only cost-effective but it enables superior customer

service. Mary Kay capitalizes on the growing Hispanic market, as 35% of their independent sales

force is Latina (Mary Kay, 2016). The independent sales force is also getting younger, where

47% of the incoming sales force in 2015 were between the ages of 18-34 (Mary Kay, 2016).

A main weakness that L’Oreal has is with their extensive and common involvement in

lawsuits. Currently, L’Oreal is defending several cases. They have been imposed of a fine of 2.6

Million Euro by Greece’s competition authority for price fixing (Diehl, 2018). They have also

been accused for misleading customers with false advertising, stealing anti-aging technology for

their own use in products, and were involved in a class action lawsuit for three of Matrix

Essentials (their own brand) hair care products for allegations that their Keratindose hair care

products did not contain Keratin (Diehl, 2018). Whether L’Oreal is guilty or not in lawsuits, not

only do they harm brand image, the legal proceedings have the potential to drain both significant

financial resources and time.

Opportunities

There is a favorable outlook for the global makeup market, as the “look good factor” of

society is on the rise due to the selfie trend across the globe. According to reports, the global

makeup market is expected to increase at a CAGR (Compound Annual Growth Rate) of 4.8%

during 2016-2021 (MarketLine, 2018). In terms of volume, this means the market is expected to

grow in units at a CAGR of 3.4% during 2016-2021 (MarketLine, 2018).

There is also a large increase in digitalization across all industries, which will help

benefit the makeup and beauty products industry in a number of ways. L’Oreal has been seizing

this opportunity in a number of ways. They now offer digital services to guide and help

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customers in choosing the right products, and allow the customers to test its products virtually

with a 3D makeup and hair color tester, complexion detector, and skin assessment. L’Oreal also

collaborated with Perfect Corp. to integrate makeup products into the YouCam makeup and

augmented reality application. Two other programs were launched called Salon Secret and Salon

E-Motion which were designed to enhance salon attractiveness and its customers and

professionals. Also to help the retail channels, the application K Profile App by the Kerastase

brand launched to help hairdressers prescribe regimens to be used in salons and at homes

(MarketLine, 2018).

Another opportunity for L’Oreal is strategic acquisitions. L’Oreal has capitalized on this

opportunity by recently acquiring several brands. These brands include Thermes de La Roche-

Posay (dermatology products), Logocos Naturkosmetik (German beauty products), Nando Co.

Ltd. (Korean lifestyle makeup and fashion company), Pulp Riot (professional hair color brand),

and ModiFace (augmented reality and artificial intelligence brand) (MarketLine, 2018). All of

these acquisitions allow L’Oreal to expand into different international and product markets.

There is a new industry of CBD (Cannabidiol) oils that is undeveloped and closely

related to our area of business. These oils contain cannabis but do not contain the psychoactive

chemical in the drug, therefore it is legal across the United States. These creams are proven to

help with joint pains, muscle aches, and anxiety (Intrinsics, 2019). If L’Oreal was to acquire a

CBD brand it would fall into our active cosmetics division in which brands are sold in healthcare

outlets.

Threats

Unfortunately, the counterfeit goods market has been increasing across all industries,

especially affecting established brands like L’Oreal. Accounting for 5-7% of the world trade, this

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accounts for yearly sales losses of about $200-250 billion (MarketLine, 2018). Not only does it

affect revenue but it also affects the market share of companies, mainly because of their low

price offerings compared to the actual brands. It also hurts brand images when customers

unknowingly buy copied brand labels.

Another threat to L’Oreal is the increasing competition across every product category.

Due to high competition, consumers buying decisions are heavily influenced by brand

recognition, quality performance, price, advertising, promotion, merchandising, as well as the

pace and timing of new product introductions, line extensions, and the quality of in-store sales

staff.

L’Oreal, as well as the other companies within the cosmetic industry, are not greatly

impacted by changes or revolutions in technology. However, a major impact that the brand could

see in the future would involve changes within consumer generated content. If a sudden increase

in the creation of consumer generated content occurs, L’Oreal should be prepared to use it to the

company’s benefit. While the brand cannot fully control consumer generated content, it can

encourage more engaging discussions about products and also discredit issues posted online

directly (MarketLine, 2018).

Based on the SWOT analysis, L’Oreal has a range of things that surround their success,

as do all global leaders in different industries. The current need in the marketplace demands

L’Oreal to take advantage of the positive outlook for the cosmetics industry, as mentioned in the

opportunity section of the SWOT analysis. Therefore, they need to differentiate themselves, their

brands, and their products from their main competitors and find niches in different markets to

give them competitive advantages. L’Oreal can do this is by developing effective campaign

strategies that influence preference and conviction within their target markets.

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Marketing Strategy

Marketing Goals

The two marketing goals that we want to improve on for L’Oreal are, market share and

sales revenue. L’Oreal’s market share for 2018 was 7.2% while the sales revenue was 30.39

billion dollars (L’Oreal, 2018). Since they go hand-in-hand, we believe that increases in both are

attainable. Consumers are looking more and more toward niche products and our tanning lotion

fits right into that. Our marketing efforts will target college-aged girls by the mediums of

television, print, and social media. With the acquisition of NYX Cosmetics and their top-of-the-

line social media marketing team, we believe that we can make a big jump in both their sales and

market share. Through these mediums, we will advertise via Instagram where our target market

tends to spend a lot of their time. A majority of our budget will be spent running a national

television commercial during an episode of The Bachelor on ABC. Millions of consumers within

our target audience tune into this show every week and at a price of $139,797 per commercial

we’ll be able to stay within our budget while countless eyes tune into our commercial. The final

medium we’d use would be print via Allure Magazine. Every September Allure comes out with

their “Best of Beauty” edition to their magazine where they mention the products they feel stand

out the most compared to the competition. L’Oreal’s tanning lotion has been showcased in this

magazine before and not only is this huge for our product awareness, but it’s also free marketing

since Allure deems whose worthy enough to be featured. We believe that by placing our own

advertisement in a different location within the magazine, it will help with frequency and

recency - reminding consumers that we belong among the “best in beauty”. With all of these

efforts combined, we aspire to increase our market share by 1% and improve our sales revenue

by 5%.

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Target Market

Sunless tanning products are typically used by a niche set of consumers, with only 22%

reporting regular use and just more than half reporting any usage at all (Academic Mintel, 2017).

Sun-kissed skin that reflects a healthy glow has become as popular as a fashion statement. This

trend coupled with the rising temperature of the earth's surface over the past few years, has

resulted in sales of sunless tanning products increasing by 6% (Academic Mintel, 2017). This

upward trend is also influenced by sun exposure becoming a more relevant and concerning topic

in the minds of consumers. Whether the consumer is looking to achieve a summer glow in the

colder months or to maintain a year-round glow while minimizing sun damage, sunless tanning

products are a viable option for consumers all around the globe. Consumers have begun shifting

towards the desire to maintain a tan while minimizing the damage generally associated with

direct sun exposure or tanning beds. As a result, we believe that sales associated with self-

tanners will continue to rise in the marketplace.

Based on this research, there are four segments that our market can be divided into. First,

there are the Natural Beauties. These consumers tend to be chemical conscious, placing

significant value on keeping their skin healthy. Second, there are the Bronzed Goddess’. These

consumers seem to always have a glow about them – they find confidence in their tan skin and

enjoy the tanning process. Third, there are those identified as the Aged to Perfection. These

consumers have begun to shift their focus from getting a tan to repairing the sun damage

resulting from exposure during their youth. Lastly, there are the Belle of the Ball consumers,

who typically tan in connection with special occasions such as prom, formals, and/or

graduations.

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With our campaign, we are primarily targeting the Bronzed Goddess’ with a secondary

emphasis on the Belle of the Ball consumers. These segments both consist of females ages 15-

25, typically of lower income levels as they tend to be teens and young adults in their high

school and college years. This audience also displays psychographic and lifestyle patterns

involving Greek life or some other form of extracurricular involvement at their High Schools and

Universities. These factors indicate that this consumer base would have more opportunity to

desire a sunless tanning product on a more frequent basis related to special events and weekend

activities. In addition, we acknowledge that given the nature of our product being a sunless

tanner, we are positioned to target consumers who represent lighter skin ethnicities as well.

Communication Objectives

We are looking to accomplish Awareness, Knowledge, Preference, and Conviction. The

objective to make consumers aware of the product is the baseline of all advertising and we are

always looking to stay top of mind through the consumer buying process, especially since a

recency effect could play a major role in a consumer's purchasing decision of self-tanner for

spring break. The knowledge that consumers will gain from the advertisement will be about self-

tanners as well as the benefits of them compared to other sunless tanning processes. The

preference objective will guide the consumers toward our brand by showcasing our advantages

compared to our competitors, which include price and buildable shade variety of our tanner. The

conviction objective is to prove to the consumer that we are the most effective product on the

market which will result in them purchasing our product.

Campaign Objectives

The main objective of our campaign is to increase awareness of both L’Oreal and more

specifically our product, Sublime Bronze, in the minds of 15 to 25-year-old females. By doing

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so, we will hope to see a 10% increase in awareness as well as demonstrate the value of our

product to our target audience, ultimately leading to an increase in 5% of purchases and

repurchases within this target audience. Through our campaign we also intend to increase our

social media following via the official L’Oreal Skin Instagram platform (@lorealskin) by 5%,

which is equivalent to 44,450 additional followers. With the social media posts included in our

campaign, we are aiming to increase awareness regarding the benefits of our products. Our

sweepstake taking place during our campaign will create activity within our pre-existing

followers, who will then repost our sweepstakes cover image which will in turn increase our

reach to each of their followers.

Campaign Strategies

Our first strategy is to place advertising on specific television channels & shows during

specific time slots that connect with the majority of our target audience. We plan to do this by

placing the advertisement on the finale of the popular show “The Bachelor” which runs on ABC

during primetime.

Another strategy we have is to advertise in specific magazines. Our product “Sublime

Bronze” recently won an Allure “Best of Beauty” award, which will feature our product in their

“Best of Beauty” magazine publication. The Allure magazine has a following of about 1,150,000

(Analysis of Allure Magazine Usa Media Essay, 2016). We will build on top of this award by

advertising in the same magazine to create a double exposure to help the readers have a higher

recall of our product, since the readers of the Allure magazine positively correlate to our target

audience. This will be effective because it will help give the consumers a recency effect when

shopping for self-tanner, which is beneficial when there are many undifferentiated products and

brands, like in our industry.

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On the L’Oreal social media accounts, we plan on running a full month worth of

advertisements. In order to gain engagement and followers on the platform, we will not only

connect to our target audience directly through our accounts by running sweepstakes, but we will

be providing “influencers” on social media accounts with our products for them to display to

their audiences as well, in order to create awareness to consumers that do not directly follow our

accounts (Appendix A).

Creative Message

The positioning strategy used for L’Oreal Sublime Bronze is that it is less expensive than

its competitors, focusing on a wide range of product distribution and easy accessibility. L'Oreal's

main advantage over competitors besides its affordable price, is that the brand name already has

a well-established reputation within the industry. What truly separates L’Oreal Sublime from its

competitors is the products ability to nourish skin leaving behind silky hydration, but also

delivering an even, bronzed glow. Because of this, L’Oreal will position itself as the health-

conscious option in the mind of consumers - allowing for the avoidance of the sun’s harmful UV

rays with the natural look and feel of sun-kissed tan skin. Sublime Bronzing Milk stands out

among its high-end competitors as it has a streak free, foolproof, lotion-like texture during

application. This allows the product to glide evenly over the skin without the additional purchase

of complementary accessories such as tanning mitts.

Our campaign theme connects these product features with our slogan “Bring Your Own

Sun”. Our slogan plays into the concept that our self-tanner is essentially sun in a bottle. L’Oreal

Sublime Bronze can be applied year-round and anytime that the consumer desires to have

golden, bronzed skin without spending hours in the sun. During the month of March, all colleges

have a week long spring break where it is tradition to travel to various beaches with your friends.

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It is at this point in the year when college females within our target audience begin to make

tanning a priority. Prior to their break, many females visit tanning salons. This method is horrible

for your skin health so our campaign is designed to get our target audience using the safer,

healthier option of Sublime.

Creative Recommendations

Our creative recommendation is to develop three execution pieces including: a social

media sweepstakes, a magazine advertisement, and a storyboard for a national television

commercial. Our first execution piece is the sweepstakes. The sweepstake will take place on

Instagram as that platform allows us to reach both our primary and secondary target audiences.

The sweepstakes will be for the duration of a week tied to the typical length of a vacation with

50 winners being chosen at the end of the campaign. The sweepstakes advertisements will

incorporate our slogan “Bring Your Own Sun” and the hashtag #ProtectYourSkin. Participants

will be instructed to follow our L’Oréal skin account, repost our advertisement (Appendix D),

and tag us on their feed for a chance to win a Spring Break essential - which of course is a bottle

of Sublime Bronze. By asking participants to repost our advertisement, we will reach our current

followers and potential new ones. Due to the potential increase in reach, running this sweepstake

will allow us to increase awareness and most importantly consumer involvement to help obtain

our campaign objective of increasing our Instagram following by 5%. Overall, our social media

calendar will be used to increase awareness as well as to educate and inform consumers about

Sublime Bronze and its many benefits (Appendix B,C, D & E).

Our social media calendar will use a mix of emotional and rational appeals. Instagram

will be our primary platform for promoting product awareness through demonstrations, before

and after picture testimonials, and imagery advertisements. In contrast, Facebook will be our

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primary platform to educate our target audience by posting skin care tips, statistics of skin cancer

(a risk that can be reduced with the use of our product), and the art of capturing a youthful glow

using our product. This allows us to use a subtle slice of life technique that will build conviction

and move consumers into action to purchase our product. You can see how we plan to educate

our target audience through statistics as shown in example (Appendix B).

Our second execution piece and creative recommendation will be a magazine

advertisement in Allure. The use and placement of this advertisement will build awareness and

preference for our product as Allure is known for promoting the “Best in Beauty” (an award

L’Oreal has won multiple times). This advertisement will explicitly highlight our products key

features and benefits as seen in example (Appendix F). After viewing this advertisement,

consumers can easily distinguish what our product is, what it does, and will view Sublime as the

“Best in Beauty”.

Our magazine advertisement will utilize primarily emotional appeal through our

personality symbol, Camila Cabello. Featuring a famous celebrity with social media influence

will allow us to employ strategies of both liking and authority. Her popularity among our target

demographic will fit with our liking strategy and build authority for our product as she is known

for her gorgeous bronzed appearance. Her association with the product will build awareness and

influence our target student audience to purchase our product and experience her radiant look for

themselves. Leading us to achieve our objective to increase purchases and repurchases by 5%.

The television advertisement is the communication medium that will have the highest

reach, therefore there has more potential than the other mediums to connect to consumers that

don’t currently lie within our target market. Our advertising strategy is to communicate that our

product will allow the user to look sun-kissed and overall prepared for spring break.

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The advertisement will utilize a combination of appeals. A feature appeal will play a

strong role as it will showcase our products effectiveness and ease of use through demonstration

within the commercial. The ad will also include a slice of life execution technique. This will be

showcased through our actress identifying herself as being too pale (the problem) and then fixing

that problem with our self-tanning lotion (the solution). This commercial will take on a more fun

and invigorating appeal to the viewer. It will feature a voice-over narrator explaining the

situation taking place while upbeat music plays in the background. Once the actor places the

tanner onto her skin she will be teleported to the beach where vibrant and happy colors are

shown all around to catch the viewer’s attention and invoke exciting emotions. In terms of

product placement, the actor will have the bottle of tanner, with the logo visible, so the viewer

will always be able to see it. We’ll also showcase the logo at the end of the commercial to

provide a recency effect to the viewer (Appendix G).

The layout of our advertisements will vary from platform to platform but will always

utilize simplistic visual elements to avoid clutter. Our advertisements will focus on summer fun

to identify with the Sublime glow while incorporating representative colors such as gold, yellow,

bronze, and white. Small pops of bright summery colors will be used to highlight the different

aspects of each advertisement to capture the attention and motivate consumers to interact with

our advertisements as they scroll through their feed, flip through magazines, or surf television

stations.

Media Recommendations

Our objective for our media plan is to shed light onto our target market in regards to the

value that our product will have to both their everyday lives as well as their overall well being.

L’Oreal is a well known brand in the eyes of many beauty enthusiasts, we are aiming to expand

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the brand loyalty in the skin care department to consumers looking for a healthy glow both year

round as well as staggered throughout the year.

In order to enhance the value of our product to our target market we will use a handful of

different strategies. For our social media presence, we are going to create a social media calendar

for the month of March. Given that the majority of spring break dates run through March, we

will include a week long sweepstakes within this calendar that will involve our followers

reposting an image of our brand and product to all of their followers. There will be 50

sweepstake winners, who will each receive a free bottle of our product.

Another one of our Instagram posts will include a statistic about Melanoma followed by

the hashtag #ProtectYourSkin. This will help to highlight the value of our product versus sun

exposure (Appendix A). Within the Instagram platform, we will supply 50 of the most renowned

beauty influencers with our product in hopes that they will review and display our product on

their pages.

We also chose to include a magazine ad in October issue of Allure Magazine due to the

fact that we received a best of beauty award that will be in the October issue. This award will

create free publicity that correlates with our target market, that we will then build off of. Having

double exposure in the magazine will act as double frequency and will help the readers recall our

product.

Lastly, we will run a 30 second commercial in March during an episode of the Bachelor

on ABC. This commercial will feature a woman appearing around the age of 25 using our

product, in order to positively correlate our own users within our target market. Through slice of

life execution, we will demonstrate how our product will satisfy the needs and problems that

many women face.

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Media Plan

In order to create the most efficient media mix for L’Oreal, we went off of what

platforms were already excelling under the L’Oreal brand name. We narrowed it in even farther

to see where the L’Oreal Skin department had a large following. We found their Instagram to be

very popular with over 889,000 followers, which is over 14% of L’Oreal Paris Makeup’s

Instagram followers.

L’Oreal was recently very successful with their Influencer Marketing Campaign. This

consisted of them reaching out to influencers all over the world allowing them to bring their

marketing global through the help of others. Instead of reaching out to one influencer, they

spread out their product among influencers all over the world creating an influence for every

audience. Studies have shown that “a major reason micro-influencers generate engagement is

because people believe they are genuine.” (Miller, 2017).

Due to these findings, we chose to stick with Instagram as one of our main platforms,

while posting regularly, running a sweepstake, and having a PR list of valuable influencers, we

feel that our media mix will have a successful outcome.

As for our television ad, we chose to run it during the Bachelor due to the positive

correlation between their viewers and our target market. This past year, the Bachelor had over 8

million viewers in the age range of 18 to 49 (Thorne, 2019). It is common for groups of women

to get together and watch the Bachelor as a large group. With our commercial airing in the month

of March, this will help to stimulate conversation about spring break and the desire for our

product.

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We chose to use Allure magazine as our third media mix since we will be featured in

their Best of Beauty edition and we’ll also be running our own advertisement, creating a double

exposure effect on the reader.

Geographic Scope

Given that we are running our commercial during the Bachelor which airs on national

television, we will reach a large geographic scope. As for our social media calendar, we will be

able to expand our geographic scope even farther given the amount of people that have access to

the internet.

Scheduling

For all three of our execution pieces, we will utilize a pulsing schedule to time our

promotional efforts. We are going to spike up promotional efforts during the months surrounding

spring break and summer. During all other months of the fiscal year, we will stay at a constant

advertising level. Our campaign will run heavily during the month of March, as we are focusing

on the spring breakers. This year, at the end of the first quarter which lasts until the end of

March, The Consumer Products division of L’Oreal was up 7% from the first quarter of last year.

(L’Oreal, 2019). We want to take advantage of this spike in revenue by increasing promotional

efforts during that time as well.

Reach and Frequency

Depending on our execution pieces, we will use a few different methods to calculate total

audience or total reach. For our social media calendar, we will have immediate access to the

reach of each post, given that business accounts include automatic analytic feedback. This will

allow us access to see how many people have viewed each of our posts, as well as the actions

they took prior to seeing the posts. During the sweepstakes we will be able to see the amount of

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accounts that have reposted our image, as well as those who have visited and began following

the L’Oreal Skin account. For the television commercial, we will track our viewers by tracking

how many viewers the Bachelor receives for the given night that our commercial airs. Lastly, for

the magazine ad, we will calculate our reach similar to the television ad, as we will determine

how many consumers purchased that issue of Allure.

The frequency of our advertisements will differ depending on the platform. For our

television commercial the viewers will see the advertisement once as it airs, if we decide to post

the commercial on platforms such as YouTube, the frequency may rise as they will have an

opportunity to go back and view it again. For our social media calendar, our frequency will start

off as one, due to the fact that we are posting each ad only once. After that it may increase if

consumers choose to bookmark the ad and revisit it. As for our magazine advertisement the

frequency will also be one given that they will see the ad as they are reading the magazine.

However, if they refer back to the specific ad when they are purchasing or make note of the

product this may increase. Given that we will have this repeat exposure in our magazine ad as

well as our social media posts, we are not too concerned with the low frequency of our television

ad.

To advertise during an episode of the Bachelor, it costs $139,797 (AdAge, 2018) for a 30

second time slot. For the magazine ad, it costs $34,374 for a quarter page advertisement in Allure

(Sapling, 2017). The social media calendar will not cost us to post the individual ad’s, however

we will inquire costs due to our micro influencers. We will pay 15 influencers $7,000 each, plus

a $250 fee associated with promoted posts, and an additional $180 in fees for the free bottle of

our product that they will receive totaling $105,430 (Appendix A).

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The cost per thousand of our commercial totals $37.15. The total cost of the commercial

after production costs is $289,797 divided by the 7,800,000 average viewers during last season

*1000 (Otterson, 2018). The cost per thousand of our magazine advertisement will be the total

cost of the magazine ad $34,374 divided by its 5,300,000 viewers * 1000, which comes out to

$6.49(Condé Nast, 2018). The CPM of our social media calendar will include those costs

associated with our paid micro influencers. We will spend $105,430 in contracts plus products

sent to them and promoted posts, divided by their combined 91,000,000 followers, * 1000 gives

us a CPM of $1.16 (Appendix A)

Total Cost

The total cost of all of our media, is our cost of our television commercial, magazine ad

and social media calendar summed up. The cost of our 30-second television commercial

including production costs will be $289,707. Our magazine ad will amount to $34,374 for a

quarter page advertisement in Allure. Lastly, our Social Media calendar and list of 15 micro

influencers will cost $105,180 plus $250 for a months worth of promoted posts to 50,000 people,

totaling $105,430. Additional costs for measurement and evaluation will total to $31,000. Over

all our total campaign will total $461,201.

Monitor, Evaluate & Control

For our TV ad, we will implement a market testing of ads approach. We will add a

unique link at the end of the commercial that will guide viewers directly to where they can buy

the tanner off of L’Oreal’s website. We will be able to track how many people bought this

specific product off of the website and associate any increase in sales to the showing of the

commercial. The majority of viewers will most likely not search this link but with millions of

people tuning in, it can only help our chances to increase sales.

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Another way we will measure the success of our TV ad is by looking at the overall spike

in sales shortly after the commercial airs. This method isn’t as effective as the previous one

mentioned because there isn’t a definitive way to look at whether sales came from the TV ad or

from someone seeing our product elsewhere. So, we’d look at the correlation of sales when the

ad was shown and make a best guess that any increase in buyers was due to the commercial.

Our evaluation of the TV ad will show that we reached our communication and

marketing goals through any increase in sales. Since our marketing goals are to increase market

share and sales revenue, we would be able to see that these are both reached through the sales

from the link and any spike in sales shortly after the commercial is aired. As previously

mentioned, our communications objectives are to increase awareness, knowledge, preference,

and conviction. This would be achieved through the the wide range of people seeing our ad at a

pivotal time slot in the day. With using the appeals and showcasing the benefits of our product

we would be able to increase all four of these goals as we move the target audience through our

funnel.

There are many tools that we can use to monitor our social media account activity across

various platforms. Our Instagram profile, which is a business profile so it allows us to track how

many users visit our profile daily, how many people contact the email that is provided in the

account, the number of actions taken on the account daily, The reach of each post, the

impressions (the total number of times the post has been seen) of each post, the demographics of

your viewers (the locations, ages, and gender) and the behavioristic of the users (the average

times they are on Instagram on a typical day and the days of the week when the followers are

most active). On Twitter, we are able to monitor the amount of retweets, likes, replies, details

expanded (whether the post was clicked on), and profile clicks on each post. On Facebook, we

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are able to monitor the amount of views, likes, comments, and shares on each post. On all of the

platforms we are able to monitor the hashtag, #BringYourOwnSun that outlines the campaign

theme. This will show how many people are developing user generated content that involves the

product or brand.

Within all platforms, we will be comparing the analytics that we receive from the profiles

and posts to the amount of clicks we get on our website and other specific links that will be

included on posts like the link for the sweepstakes that will be run. This is one way that we will

evaluate the data that we collect from the social media accounts. As everyone knows, the internet

is a public service and users of social media are allowed to comment whatever they want,

whenever they want. This means that the feedback and comments on our social media platforms

can be positive, and can much more easily be negative, since people are more likely to share

thoughts about negative experiences. This is not only one of the best ways to evaluate our

customers and followers’ opinions on the product, campaign, or brand, but allows us to do much

more. As we cannot control their opinions directly, we can control the way that we handle them.

Some of the most successful brands are constantly social media active and respond directly to

their followers/customers. If we are active on all platforms and respond to users when their

opinions are either good or bad, it will likely influence repeat purchase decisions.

To measure our magazine advertisement’s effectiveness, we chose to keep things simple.

Print ads can be tricky to evaluate so we decided to ask customers how they heard about our

tanning lotion after they purchased our product online, instead of implementing a promo or QR

code. This way we can measure exactly where our sales are coming from. This method won’t

only be beneficial for our magazine ad, but also for our TV and social media ads. It will allow us

to gather analytics on where the majority of our traffic is coming from and then direct our

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attention to where we see fit. It also enables us to isolate our strong and weak links. Before we

run our magazine advertisement in Allure, we will be running a pre-publication A/B test. In this

test, we will be showing two similar advertisements, but they will have distinctive differences.

By this we mean that both advertisements will generally follow the same theme but will have

different layouts, wording, and personality symbols (a different celebrity endorser on contract

with L’Oreal). The consumers who fit within our target audience will then evaluate which one

they prefer and which has more of an effect on them, that small sample size will go on to decide

what magazine advertisement we publish. We will hire Vernon Research Group to get a focus

group together in order to conduct the A/B testing.

Our evaluation of the effectiveness of our magazine ad, in terms of our communication

and marketing goals, will be directly correlated to how many people say they landed on our site

from seeing it in Allure. Since Allure is a widely popular beauty magazine, thousands of

consumers will see our tanner - helping our overall awareness and eventual conviction of our

product. Having this action taken will then, in turn, increase our overall sales revenue and market

share. We anticipate that we will attract new customers to our lotion since all sorts of women

read this magazine and would be enticed to check out a cheaper, just as beneficial product

compared to our competitors.

Campaign post-evaluation

For the post-evaluation of the effectiveness of our campaign, a website link with the

slogan #BringYourOwnSun will incorporate online research that will be conducted by the

Vernon Research Group. During this research the participants will be sorted by the media in

which the L’Oreal advertisement was observed, which will then lead to different sets of

questions regarding the corresponding advertisement. They will then measure the likeness,

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effectiveness, and responsiveness of the correspondents in accordance to the product and brand.

Included in the contract with this third party company will be the analysis and report of such

data. We will also incentivize our participants, which will increase the number of responses for

the online research allowing for more data analysis of the campaign.

Budget Summary

Type of Cost Cost in

Dollars

Explanation/Source

Media Costs

Social Media

Sweepstakes

$600 50 bottles will be given away at $12 a bottle.

Commercial on

ABC

$139,797 Took average of ABC data 2018 (AdAge, 2018)

Magazine

Placement (Allure)

$34,374 Took the initial cost of a full page in color ad for Allure

($137,494) and divided it by 4 to get our estimate for our

¼ page in color ad. (Sapling, 2017)

Instagram

Influencers (15)

105,430 We will pay each influencer (15 total) $7,000 to

review/promote our product. Plus, the cost of bottles given

to them (15 *$12).

Plus $250 to reach 50,000 people through promoted posts.

(MarketingHub, 2018)

Production Costs

Focus group (A/B

testing)

$6,000 (Vernon, 2018)

Commercial on

ABC

$150,000 Average of production costs seen in our research.

Measurement and

Evaluation Costs

$25,000 Average cost of hiring a third party company to conduct

the online research

Total Cost $461,201 ($38,799 remaining)

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Appendix

B.

A.

List of Instagram Beauty Influencers.

1. Michelle Phan (2M)

2. Shaaanxo (1.5)

3. Jeffree Star (8.8)

4. Kandee Johnson (1.8)

5. Manny Gutierrez (4.8)

6. Naomi Giannopoulos (7.3)

7. Samantha Ravndahl (2.2)

8. Huda Kattan (28.2)

9. Zoe Sugg (10.4)

10. Nikkie De Jager (7.8)

11. Camila Coelho (6.1)

12. James Charles (2.1)

13. Ingrid Nilsen (1.7)

14. Micaela Podolsky (1)

15. Amra Olevic (5.4)

C.

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D. E.

F.

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G.