Agenda
INDUCTION
SITUATION ANALYSIS
THE 3 DIGITAL MARKETING
OBJECTIVES
STRATEGY
TACTICS & ACTIVITIES
EVALUATION & CONTROL
REFERENCES
Introducrion
The following presentation explores Benefit Cosmetics - a leading player in the cosmetics and beauty industry through analysis of its market sector, macro and micro environments and current marketing strategy in the digital realm. Marketing objectives will be established, generating proposals of tactics, actions and control methods.
YEAR ESTABLISHED FOUNDED
Founded in 1976 by twin sisters Jean and Jane Ford as a small makeup shop in San Francisco, Benefit Cosmetics has become a beloved beauty brand. With an extensive product range, available in over 55 countries and has over 3000 BrowBar Beauty Lounges (LVMH, 2024).
Benefit has become one of the leading beauty brands within the cosmetic industry with one brow product sold every two seconds, and has given back to the community raising over 21 million for charity program Bold is Beautiful (Benefit About, 2024).
OWNED
BROWBAR LOUNGES
FIGURE 3
CLIENTS COUNTRIES
Serving more than 6,000+ clients in over 60 Countries, Accenture provides a broad range of innovative services at scale from strategy to operations (Accenture, 2024)
Working on behalf of Accenture, the structure, strategies and procedures adopted will be used to execute the proposed digital strategy of Benefits digital marketing strategy.
4
Situation Analysis Objectives
SOSTAC
To achieve clear, successful and innovate digital marketing objectives for Benefit Cosmetics, The SOSTAC Model will be used.
The SOSTAC Model highlights the marketing strategy process whilst underpinning both the goals and KPIs for successful marketing (Chaffey & Ellis, 2022)
FIGURE
Situation Analysis
Investigation into Benefit Cosmetic’s current market position. By analysing the brand’s mission, strategies, internal and external environment, internal resources & competences, this will aid the formulation of SMART objectives, innovative Strategies, implementation & control.
(West et al, 2006)
Market Sector
Globally, the beauty industry is valued at $557.24 billion (2023) and is projected to be valued at $937.1 billion by 2030 (Grand View Research, 2023)
Specifically, the Cosmetics market is projected to reach US$108.40bn in revenue in 2024 experiencing an annual growth rate of 4.43% CAGR 2024-2028
The United States currently generates the highest revenue (US$20,130m) followed by the United Kingdom.
The cosmetic market is experiencing a surge in demand for clean, natural beauty products. and by 2024, 71% of the sales in the Cosmetics market will be attributed to Non-Luxury. (statista, 2023)
FIGURE 6
Revenue of Cosmetics UK market in Billions
UK Cosmetic Market
The UK cosmetics market is projected to generate a revenue of US$3.17bn in 2024 and experience an annual growth rate of 3.59% (CAGR 2024-2028).
(Statista, 2023)
UK Health & Beauty Market Drivers
The UK health & beauty market is growing at a rapid rate, forecasted to grow at a CAGR of 2.1% between 2022 to 2027 - faster than market growth form 2017 to 2022 (statista, 2023)
Inflation provides an opportunity for retailers to expand own brand ranges 1.
Instore services build customer engagement and boost offline sales 2.
Loyalty schemes help to retain customer spend 3. Personalised and informative ecommerce platforms drive online growth 4.
Benefit
MISSION, VISION & VALUES
“We believe that beauty should lift us up and make us feel good. Because feeling good is always a good look.”
(BENFIT ABOUT, 2024)
Since inception, Benefit has expressed the concept of fun and freedom in products through showing that ‘Laughter Is The Best Cosmetic’
The brands mission is to empower confidence within all individuals through expression of unique styles, qualities and embracing the joy of makeup (Cosmetify, 2024)
CURRENT STRATGEY
Benefit ultilises Influencer marketing, prioritises localised content to build connections with consumers in the beauty community, and has cultivated an engaged audience on across social media platforms, sharing tutorials and product information while incorporating trends on the platform (Cauville, 2023).
Benefit uses product seeding to gain brand loyalty from consumers and increase brand recognition generating 2M organic impressions from influencer-generated content in previous campaigns (Emplifi, 2023).
BRAND AWARENESS
Of cosmetics and make-up users in the Uk, Benefit’s brand awareness is 67% with as usage rate of 33% and 26% of UK users say they like benefit
In relation to usage share 77% of users demonstrate brand loyalty (statista, 2023)
Financial Analysis
Benefit Cosmetics's annual revenue is $1.5B as of 2023, reaching its peak (Zippia, 2024)
First party Global Net Sales equated to US$27.0m in 2023 after deduction of returns, allowances for damaged or missing goods and any discounts allowed. (ECDB, 2024)
FIGURE
PESTEL Analysis
P
E S T E L
Instability of UK Government imposes changes in regulations, trade agreements and political events
Brexit has impacted supply chains and operations
Consumer spending has decreased due to cost of living crisis
Purchasing behaviour of consumers should guide Benefit in terms of how they operate business
Changing social, beauty trends and preferences
Consumers have an increased value in sustainability, inclusivity and diversity
Benefit needs to adapt to such changes to connect with targeted audience
Evolving technological advancements are driving the industry
Social Media becoming a predominate channel to target consumers
Aligned with consumer preference for personalisation
AI, AR and the Metaverse shifting consumer expectations
Environmental concerns and practices are gaining traction
Benefit could push for using eco-friendly packing, reducing carbon footprint and supporting ethical sourcing
Data protection and privacy laws requires Benefit to ensure privacy and security of personal information
Product safety and labelling requirements must be adhered to Advertising and marketing regulations - adhere to guidelines of truthful advertising, claims substantiations and sponsor disclosures
Global Data, 2024; Helplama, 2024; Statista 2024)
SWOT Analysis
STRENGTHS
Strong brand Image:
High quality products.
Effective Marketing
Strong retail presence
WEAKNESSES
High prices
Limited shade range Only availble in Certain locations
OPPORTUNITIES
International expansion
S W
O TEnhance online presence - e-commerce platforms and digital marketing strategies to reach wider audience and growing online shopping
Increase diversity
Product Innovation to emerging beauty trends
THREATS
Intense industry competition
Changing consumer preferences and trends
Counterfeit products
Negative publicity
Strengths Weaknesses
Opportunities SO Strategies WO Strategies
Leverage strong brand identity to expand into new markets & attract wider target audience with new product lines
Continue to innovate focusing on digitalisation Leverage marketing strategies to capitalise on UGC, Influencer trends to enhance brand reach & engagement
Introduce more affordable product lines or discounts to attract price-sensitive consumers (Statista, 2023)
Expand product range for wider range of consumers by filling gaps in current offerings
Threats ST Strategies WT Strategies
Leverage brand reputation and loyal consumer base to maintain competitive advantage
Enhance customer loyalty program
Continue to focus on building a strong social media presence
Evaluate pricing strategy to remain competitive while maintaining profitability
Enhance User Experiences Monitor emerging beaut trends and consumer preferences
THREAT OF NEW ENTRY
Porters 5 forces
Porters 5 Forces is an analytical model exploring power balance in a market between organisations on a global level, and analysing the attractiveness and potential profitability of an industry sector.
(Chaffey, 2022; Wright, 2021)
COMPETITIVE RIVALRY
As numerous established and emerging beauty brands compete for market share, Benefit Cosmetics operates in an intense competitive environment. with many established and emerging brands vying for market share. Benefit's strong brand identity, innovative marketing strategies, and loyal customer base contribute to it’s competitive advantage.
SUPPLIER
Highly competitive beauty industry Challenging for new players to enter & gain market share
Strong relationship with suppliers
Steady supply of highquality ingredients for products
Competitive
Rivalry
Various substitute brands & products available Benefit’s unique product offerings, brand image & packaging = differentiation
THREAT OF SUBSTITUTION
Loyal consumer baseleverage of pricing & product demand
Many alteratives within beauty industry
LONGEST PLAYERS
Competitor Analysis
Comparative analysis of Benefit Cosmetics with its key competitors based on a range of performance factors and metrics including such as market share, products& services, customers, social media channels, organic search traffic, loyalty schemes, and website analysis.
NEW & CURRENT
Brands including Estee Lauder and MAC Cosmetics are key competitors of Benefit, having been on the market for decades, with similar price points, offerings and services.
With the rise of celebrity beauty lines, brands such as Fenty Beauty, Rare Cosmetics and Kylie Cosmetics are key competitors. Having an immediate advantage due to celebarity having existing followers, these brands have high global recognition, are diverse in their products, and have been more able to tailor offerings based on current trends.
TRENDING
BUDGET
With an increased demand for affordable products, brands such as NYX and Revolution Beauty have dominated the sector, heavily utilising digital channels including social media to target the younger demographic who account for most of expendature.
Positioning Map
Current Target Audience
Gen Z & Millenials
Benefit’s current target audience are Millenials accounting for 48.4% of website traffic- followed by Gen X at 27.5% and Gen Z at 24.1%.
Females Interests
Benefit attracts the female consumer accounting for 82% of website traffic.
(Similar web, 2024)
Interest typically including shopping, fashion and beauty. cosmetics users remember seeing ads on social media more often than the average consumer.
(Global Data, 2024)
UnitedStates
UnitedKingdom
France
Germany
Consumer journey
Jessica, 25
London UK
Marketing Assitant
Actions Becomes aware of Benefit
Touchpoints
RA C E
Reach - build brand awareness of products and offerings on other sites and in offline media and build traffic by driving visits to web and social media presences
Act – engage audience with the brand website and online presence to encourage to interaction to lead generation, i.e. to gain permission to market to a prospect using email, SMS or mobile app notifications
Convert – achieve conversion to generate sales on web presences and offline
Engage – build customer relationships through time to achieve retention goals
Through social media platforms including Instagram, Tiktok and Facebook
From Influencers, ads By word of mouth, reccommendations by peers
Thoughts Is curious to find out more and look at new makeup products
Visits Benefit Cosmetics website to explore product range
Browse through various categories e.g mascaras, brow products, skin care
Read product descriptions, explore customer reviews Looks on TikTok for reviews May visit physical store to see products in real life
Convert Engage
Decides to make purchase to chosen need and desire, placing item in cart
Opens anticipated email from Benefit with confirmation of with order details and thank you
Proceeds to basket, check out page and enters data
Data includes, name, email and shipping address May offer personalisation recommendations, rewards or incentives to repurchase
Data concerns of personal information
Desire to find makeup suitable to needs
Unsure whether to pay for desired delivery costs therefore look for available discounts
(Chaffey, 2022; Wright, 2021)
Possible Solutions (Opportunities to improve the experience)
Provide extensive amount of information on social media accounts
Benefit has a strong domain name = easier to overcome search struggles
Generate more paid ads to ease process
Use of AI, AR and shade matching tools - could expand to social media DM for shade match similar to beauty works
Offer samples / comprehensive product descriptions
Benefit reasures by offering secure payment options and transparent shipping information.
Across website and banners can promote discounts/codes for money off.
Sense of anticipation looking forward to recieving products
Will track shipping
Benefit can encourage consumer to share thoughts, leave feeback, share experience on social media creating a sense of a wider community and engagement
Digital Marketing Objectives
Challenges found and solutions based on the outcome of Benefit situation analysis to highlight what direction the company should follow. Such digital marketing objectives are aligned with the SMART structure, and will be determined to formulate a clear strategy, actions, tactics and control methods.
12
FIGURE
Vision, Goals & Objectives
Ojective O1
Growth in social media followers and increase engagement rate across social media.
Objective 02
Increase in online sales through targeted email marketing campaigns, website conversion rates and consumer purchasing experience
Objective 03
Increase loyalty subscriptions by offering exclusive perks, personalised recommendations, early product access and subscription only items.
1
INCREASE BRAND AWARENESS
Achieving a 20% growth in social media followers within the next six months and Increase engagement rate by 15% across social media.
Remain followers and aim for a montly growth rate of 5% across following 6 months
MARKET TREND - Choice of social media platform critical to grow brand awareness (Global Data, 2023)
Social media showcase brands to global audiences. Benefit must ensure social media presence and content is aligned with core consumer base, is personable, aesthetic and communicate brand values to improve engagement and reach.
To capitalise on social commerce, Benefit should continue to highlight trending products on its websites to enable consumers to find viral items more easily
TikTok and Instagram are simplifying the omnichannel experience. Tutorials and product reviews, are an effective way to entice demand - 16.0% of Gen Y stated that it was essential to be recommended a product on social media when purchasing. (emplifi, 2023)
UGC means consumers can purchase items featured in content creators’ videos directly.
GENERATE AN INCREASE IN REVENUE
Achieve 20% increase in online sales within next 6 months
Drive more traffic to the website by increasing organic search traffic by 30% in the next quarter.
MARKET TREND - Consumer Experience (Global Data, 2023)
Importance of personalised recommendations and customer experience as consumers are more likely purchase amid personalised recommendations. customer experience is just as important as products and services offered by a company
Beauty AR and virtual try-on effects Virtual try-ons can lead to a 2.4x increase in purchase likelihood as AI investment will be crucial to remain competitive as online penetration develops
Demand for chatbots offering personalised and expert recommendations on healthcare products and virtual try-on functions will become necessities. Specialist retailers must incorporate machine learning and virtual functions into websites and apps as a priority to remain competitive.
INCREASE CONSUMER LOYALTY
Increase loyalty subscriptions by 30% in first 6 months and by 15% in following 6 months offering exclusive perks, personalised recommendations, early product access and subscription only items.
MARKET TREND
- Loyalty schemes help retain customer
Spend (Global Data, 2023)
To save money amid the cost of living crisis, more consumers are signing up to loyalty schemes while health & beauty specialists are enhancing propositions to retain spend and consumer acquistion
Loyalty schemes provide retailers with additional data including spending and product demand, providing greater visibility on what customers are buying into the and where promotions are best received.
Personalised and informative ecommerce platforms drive online growth -Loyalty schemes must be personalised to the customer and offer value-added incentives such as birthday discounts.
Strategy
Adopted strategy with Intended target segments for digital marketing objectives based on Ansoff’s Matrix.
Ansoff Matrix
Market Penetration and Development will be highly utilised as strategies to achieve digital marketing objectives
MARKET
PENETRATON
DIVERSIFICATION
MARKET
DEVELOPMENT
PRODUCT DEVELOPMENT
Facebook as most visited by demographic
76% purchase beauty products at medium frequency
8.3% purchase at high frequency
93.2% have value for money as the most important driver for purchases
Due to the market being dominated by Gen Z, Benefit should
Target Instagram, Tiktok and Facebook as most visited by demographic
Purchase beauty products at medium frequency and more higher frequency
58% of decorative cosmetics users state that customer reviews on the internet are very helpful.
Ranked Importance for purchases include:
4. Discounts & promotions
5. Instore Experience
statista, 2024 Hanlon, 2021 Snikiar web, 2024
Consumer journey (AIDA)
Drive traffic
ATTENTION
INTERESTS
DESIRE ACTION
Engaged through Benefit’s capture key interests of consumers and recent trends through informative product descriptions, tutorials, UGC across social media
Captured Interest
Interested in differentiation of Benefit Cosmetics products, features and services
e.g Posts of new loyalty scheme
UGC Reviews
Desire to purchase
Desire to purchase product after exploring how offerings can impact beauty routine as transformative and needed after customer testimonials, videos and before and after images.
Talk and convince customer to purchase
Directed to website to purchase products through social media ads, affiliate links etc. driven by available exclusive discounts, incentives such as signing up for emails, newletters and promotions.
Tactics & Actions
Short-term tactics & programs to deliver the value proposition for Benefit to achieve digital marketing vision and goals; as part of digital marketing plan proposal.
14
FIGURE
By utilising Benefit’s current social media platforms and growth on Tiktok. Using influencers and UGC to provide more extensive resource to find reviwes
SOCIAL MEDIA
Benefit to increase omnichannel capabilites. Loyalty app and website to become more interlinked and more extensive and increase offerings by including online shopping which is currently only available on webiste.
WEBSITE
&APP
Innovate current loyalty scheme and provide new incentives enabing users to gain access to exclusive perks dependant on tier ranking.
LOYALTY SCHEME
K E Y P O I N T S
Breakdown
FIGURE 15
MARKETING OBJECTIVE KEY CHANNEL TACTICS METRIC FOR SUCESS
MARKETING OBJECTIVE KEY CHANNEL TACTICS METRIC FOR SUCESS
INCREASE IN REVENUE Push Notfi.
GOAL 1 INCREASE BRAND AWARENESS
Social Media
Using influencers and UGC across Instagram & Tiktok to provide more extensive resource to find reviwes 1.
Posting more relevent trending posts on instagram profile - simplictic visually aesthtic clean theme 2.
Post instagram stories with direct links to products and website 3.
Increase in the number of posts when searching ‘Benefit Cosmentics on TikTok
Track engagment rate across instagram and TikTok
Track number of views on offical Benefit posts
Track increase in likes on TikTok account
Displays
Social Media
Push notifications highlighting how it is now available to shop directly on the app 1. Social1. Media2.
Email sent out about how it is now available to shop on the app, and access loyalty account on website 1.
3
Website
Create posts, stories and videos across instagram, tiktok and snapchat 1. Create advertisingment 2. Highligh AI capabilites 3.
Highlight reviews section and link to social media tutorials and content creators 1. More visially appealling on trend banners 2.
Email click through rate
Email campagn surrounding new innitiative Create advertisingment 1.
Number of users signing up for loaylty scheme Social Media
Demonstarte strong brand values, inclusivity 1.
SOCIAL MEDIA
EMAIL MARKETING
Campaign Example:
Channel to increase brand awareness and product diversity for those of all ages, skin tones and other demographics.
WEBSITE & APP
App to include ‘Shop’ feature allowing consumers to shop directly on app.
Website to include access to Loyalty account
Incentive to join loyalty scheme amid new changes. Tier1
Tiered system to encourage consumers to progess and achieve more benefical rewads
LOYALTY SCHEME
Control & Evaluation
Benchmarks and indicators that will be used to measure success of digital marketing objectives. This will explore contingency plans, responsibilities & key milestones in terms of financial costings, social responsibility, brand share and profits.
FIRST QUARTER
Timeline of activities
Introduce website and app make over
Begin investing in brand campagins
Will continuosuly track SMART objective
metrics such as:
Follower increase/decrease, likes/comments per post, average no. of likes/comments & their ratios over time engagement rate over time (weekly, monthly)
Website - Bounce rate, average total visits, duration
ADs - PPC
Email click through rates etc. months
SECOND QUARTER
Continue brand campaigns
Innovate loyalty scheme
THIRD QUARTER
Continue to push goals to achieve marketing objectives.
EXAMPLE: MOTHERS DAY
Push the idea of family, community and all types of mothers/mother figures Diveristy
Social media & UGC featuring importance of mothers
Mothers day bundle to be created
Idea of laughter is the best cosmetic with family bonds
KEY DATES FOR CAMPAIGN THEMES
Festival of Sleep Day
12months
Email campagins and social media posts will be centered around each themes of the month across 12 months
EXAMPLE: JULY
Campaign around the start of summer
Highlighting products for holiday and festival looks
Veganuary (Whole Month) Valentines Day (14 February) London Fashion Week (16-20 February) Mothers Day UK April Fool’s Day (1 April) Earth Day (22 April) World Bee Day (20 May)
National Relaxation Day UK (15 August) Halloween (31 October)
SEPTEMBER OCTOBER NOVEMBER DECEMBER
Week (1117 November)
Singles Day (11 November) Black Friday (29 November) Christmas (25th December New Year’s Eve (31 December)
FIGURE 17 (The Content Calendar, 2024)
CONTENT CREATION
INFLUENCER COLLABS
SOCIAL MEDIA Tiktok INFLUENCER COLLABS
BRAND EFFECTS
Additonal
SOCIAL MEDIA MANAGER / AGENCY
Email MARKETING CAMPAIGN
SOCIAL MEDIA ADS
ADS
PAID ADS
APP/Website Analytics UX DESIGNER
Professional Photographer = £500-2000 per day
6 campaign shoots
Total - £10000+
Graphic Design Team =
Micro £100-£500 per post/story
Mid £500 - £2500 per post/story
Macro £2,500 - £10000 per post/story
Total for 1 campagin with 10 influencers - £50000
Micro £100-£500 per post/story
Mid £500 - £2500 per post/story
Macro £2,500 - £10000 per post/story
Total for 1 campagin with 10 influencers - £50000
Cost Breakdown
£30,000 Salary = Team - £100,000
Total - £10000
Range from £50 - £500 per month
2 Emails Weekly
During campaigns up to 3
Total - £10000
£0.50 - £2.00 Per Click
£5 - £20 per 1,000 Impressions
Beuaty related cost-per-click
Few £1000
Costing for the 12 month strategy has been broken down by key channel, how it will be utilised, what will be required and how much each segment will cost.
FIGURE 18
(The Upbeat Agency, 2024)
Cost to Innovate website & App
Total - £6000
Monthly cost arount £50 - £300
e.g Google £0.50 - £3.00 per click ADDITIONAL
Total for 12 Months - £3600
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Figures
Figure 1:
BENEFIT COSMETICS UNKNOWN. [illustration]. Sephora.sa Discover The Brand [Online]. Available at: https://www sephora sa/en/BENEF-BrandUn verse-3 html
Figure 2:
Alice SKINNER 2018. [Illustration] Benefit Cosmetics is creating murals that celebrate the accomplishments of women. Campaign Live [Online]. Available at www.campaignlive co.uk/article/benefit-cosmetics-celebrates-female-accomplishments-largemurals/1489858 [Accessed 18 Mar 2024].
Figure 3
lauren GREGORY. UNKOWN. benefit cosmetics wallpaper image Benefit Makeup Skincare And Giftsets Brown Thomas [illustration]. Wallpaper Safari [online]. Available at https://wallpapersafari.com/w/UZYmED
Figure 4
Marie SADLER. 2024 SOSTAC MODEL [infographic]. SOSTAC [online}
Figure 5:
BENEFIT COSMETICS 2024. Our Golden Rule Don’t take yourself (or your makeup) too seriously! [illustartion]. LVMH [online]. Available at: https://www lvmh com/houses/perfumes-cosmetics/benefit/
Figure 6:
STATISTA 2024. Revenue of Cosmetics UK market [Online] Available at: https://www statista.com/outlook/cmo/beauty-personal-care/cosmetics/unitedkingdom#revenue
Figure 7
Marie SADLER 2024 Benefit Financial Graph [Graph] ECDB 2024 ‘The Starting Point for Your Ecommerce Analysis’. benefitcosmetics.com revenue | ECDB.com [online]. Available at: https://ecommercedb com/store/benefitcosmetics.com [accessed 11 Mar 2024].
Figure 8
Marie SADLER. 2024 Competitor Analys s [infographic].
Figure 9
Marie SADLER 2024. Social Media Breakdown [Table}
Figure 10
Marie SADLER 2024. Website Breakdown [Table}
Figure 11
Marie SADLER 2024. Benefit Consumer Journey [Table]
Figure 12
Sandy VANHELDEN. 2019 Benefit Cosmetics - Brand Illustrations [illustration]. Sandy Vanhelden [online]. Available at: https://www.sandyvanhelden.com/portfolio/benefit-cosmetics [Accessed 18 Mar 2024].
Figure 13
Figure 14
BENEFIT COSMETICS. 2019. [Illustartion]. Benefit Cosmetics launches fifth Bold Is Beautiful philanthropy campaign. LVMH [online]. Available at https://www.lvmh.com/news-documents/news/benefit-cosmeticslaunches-fifth-bold-is-beautiful-philanthropy-campaign/
Figure 15
Marie SADLER 2024. Tactics & Actions Breakdown [Table].
Figure 16
Marie SADLER 2024. Marketing Mockups [Mockup].
Figure 17
THE CONTENT CALENDAR. 2024. Beauty Marketing And Social Media Calendar For 2024. The Content Calendar [online] Available at: thecontentarchitects com/beauty-marketing-calendar/ [accessed 25 Mar 2024].
Figure 18
Marie SADLER 2024 Cost Break Down [Table]