Glossier Marketing Plan

Glossier Marketing Plan
Team Players:
Anika Bobb
Zarina Guerrero
Yajun Li
Rhea Trinanes
December 11, 2017

Glossier Marketing Plan 2
Table of Contents
I. EXECUTIVE SUMMARY 3
II. SITUATION ANALYSIS 4
Industry/Market 4
Competition 7
Value Chain 16
Customer 18
Company 20
III. EXPANDED SWOT ANALYSIS 29
A. Strengths 29
B. Weakness 30
C. Opportunities 30
D. Threats 31
E. Maximize Strengths and Opportunities 31
F. Mitigate Weaknesses and Threats 32
IV. SUMMARY 33
V. VALUE CHAIN 33
Company Strategy 33
Concept & Design 34
Research & Development 34
Production & Operations 34
Assembly & Manufacturing 34
Marketing & Sales 34
Branding 34
Customer Service / Customer Retention 35
Customer 35
VI. TARGET MARKETS 35
VII. OBJECTIVES 37
Product/Service 42
Promotion 44
Place 46
IX. PROJECTED PROFIT-AND-LOSS STATEMENT 46
X. IMPLEMENTATION PLAN 47
XI. CONTINGENCY PLAN 50

I. EXECUTIVE SUMMARY
The beauty company Glossier has gained enormous popularity among millennials and Gen-Z
since its launch in October 2014. Glossier celebrates the idea of real beauty in real life, providing
its customers with customized affordable luxury beauty products. As a tech-savvy company,
Glossier understands the power of social media in terms of product sales and promotion. The
company also aims to lay foundation for a beauty movement of real women and real beauty. The
recently launched Body Hero campaign is a great example reflecting Glossier’s mission.
The global cosmetics industry is led by beauty conglomerates including Chanel, Coty, Estée
Lauder, Kao, L’Oréal, LVMH and Shiseido. The growing middle class, product innovation and
influencer marketing are listed as the three market drivers in the industry; while affordability,
counterfeits, and toxic chemicals are part of the market challenges facing the beauty industry.
The industry is encountering several trends including natural organic products, private labels and
the changing channel format.
This marketing plan aims to help Glossier settle key issues hindering the growth of the company.
Glossier is known for its disruptive nature and as the brand founder and CEO, Emily Weiss,
pointed out, "There are a handful of beauty conglomerates, and it's difficult for them to
innovate." These beauty conglomerates are huge in size compared to Glossier which means they1
are more conservative in making changes and more distant from their customers. Glossier's
product development depends heavily on the user feedback and suggestions. Glossier’s main
competitors are Milk Makeup, Crime Lime, and ColourPop. Glossier needs to understand and
learn from its competitors to stand out and grow.
As the company grows bigger, we question: Is Glossier still able to maintain its role as an
industry disruptor? How could Glossier profit from this disruption? How should Glossier protect
itself from giant beauty conglomerates like Estée Lauder or L’Oréal. Another issue facing
Glossier is global expansion, though the company will eventually tap into the global markets.
How is the company going to deal with different regulations in different countries regarding
ingredients, animal testing and so on? Besides regulations, Glossier also needs to think about
enriching its product portfolio and categories if the company wants to target a new market. How
much more can they leverage their Body Hero campaign in order to become a more inclusive
brand?
1
(2016, May 24). How Glossier became so popular - Business Insider. Retrieved December 3, 2017, from
http://www.businessinsider.com/how-glossier-became-so-popular-2016-5

II. SITUATION ANALYSIS
Industry/Market
The Global Premium Cosmetic market was valued at $103.6 billion in 2014, and is estimated to
grow to $126.1 billion by 2019. This industry is made up of several subcategories including skin
care, fragrance, color cosmetics, and hair care. The US represents the global leader in this2
category, followed by China and Europe, with emerging markets like Brazil and Russia all
seeing sales growth in this category. Globally, the biggest players in the luxury and premium
cosmetics market include Chanel, Coty, Estée Lauder, Kao, L’Oréal, LVMH and Shiseido.
Source: Technavio.com - Global Premium Cosmetics Market
Market Drivers
There are a number of key market drivers that affect growth in this category. First, is the growing
middle class. As consumers throughout the world are seeing an increase in their disposable
income, they increase their spending on cosmetics, often opting for higher quality and higher
priced products. The cosmetic industry tends to have relative economic stability, as economic
fluctuations do not affect customer needs for essentials, however they can affect the likelihood of
2
(n.d.). USC Blackboard - University of Southern .... Retrieved December 3, 2017, from
https://blackboard.usc.edu/bbcswebdav/pid-4890324-dt-content-rid-14743733_2/courses/20173_mkt_586_16549/Gl
obal%20Premium%20Cosmetics%20Market%202015-2019.pdf.

purchasing discretionary products such as nail polish, lipstick and anti-aging creams. Spendings
in these categories will typically increase once economic conditions have stabilized.3
Product innovation is another major market driver, as new technology and innovations in
ingredients are developed. These new innovations allow brands to become more competitive and
entice new customers to try their products. This is also related to a price-quality relationship,
where consumers are willing to assume that a higher price means a higher quality. This allows
brands within the premium and luxury cosmetics segment to charge a higher price for their
products, but must also ensure that their products meet the quality expectation in order to ensure
trust and lasting relationships with customers.
Social media and celebrity/influencer endorsements have grown to be a major industry driver.
Social media allows companies to have a platform to engage with consumers, while influencers
use social media to educate about products and routines. Additionally, the use of celebrities4
increase a product’s visibility, especially when a product launches. According to research done
by technavio.com, 25% of internet users ages 16-24 discovered a new brand or product through
celebrity endorsements.
Market Challenges
The global premium cosmetic market also faces a number of challenges. These include
affordability, counterfeits and the presence of toxic chemicals. As private labels become more
popular, due to their relatively cheaper prices with good qualities, customers begin to turn to
these more affordable products. This presents a challenge to leading luxury and premium
cosmetic brands, who are used to selling their high quality products at higher price points.
Counterfeits have become an increasing issue for premium luxury brands, both in the cosmetics
and fashion worlds. With high end brands increasing the value of their product, while also
increasing their appeal, counterfeiters seize the opportunity to capitalize on their behalf. This can
present a significant challenge to cosmetic brands, as counterfeiters divert potential earned
revenues away from companies. Additionally, counterfeit products also use cheaper ingredients,
which could potentially be harmful for users and for brand value.
Toxic chemicals are also a major challenge for cosmetics, as more consumers become aware of
ingredients in their cosmetics, such as parabens which are used as preservative and have also
3
(n.d.). IBISWorld. Retrieved December 3, 2017, from
http://clients1.ibisworld.com.libproxy2.usc.edu/reports/us/industry/default.aspx?entid=499.
4
(n.d.). USC Blackboard - University of Southern .... Retrieved December 3, 2017, from
https://blackboard.usc.edu/bbcswebdav/pid-4890324-dt-content-rid-14743733_2/courses/20173_mkt_586_16549/Gl
obal%20Premium%20Cosmetics%20Market%202015-2019.pdf

been linked to cancer. Customers are turning towards cleaner alternatives to traditional make-up,
in order to avoid exposure to toxic chemicals.
Market Trends
Market trends are an important part of any industry. By looking at new and emerging trends,
companies can gauge where an industry will go, and determine strategies to maximize profits.
Trends also allow companies to be able to forecast consumers’ wants and desires, while also
using this as an opportunity to innovate. Understanding market trends are important if a company
wants to continue to be relevant and to ensure its success.
The demand for natural and organic products is a new trend that is quickly impacting the beauty
industry. As mentioned in the market challenges, a growing number of consumers have become
more aware of the toxic chemicals, such as parabens, that are heavily present in popular products
throughout the industry. Additionally, there is also the growing demand for products that are
cruelty free and do not test on animals.
As the market becomes bigger, with no signs of slowing down, more private labels are beginning
to emerge. These private labels are often leaders in innovation, bringing new products to meet
consumer needs. With their ability to enter major retailers, such as drug stores and supermarket,
it brings the opportunity for consumers to switch between labels. With their competitive
advantage, it also brings the possibility of acquisition into bigger luxury cosmetic companies,
such as the case of Smashbox and Too Faced, both who were emerging private brands that were
bought by the Estée Lauder group.
One of the biggest trends to affect the premium cosmetic industry is the changing channel
format. The internet has brought in a generation of consumers who prefer to do their shopping
online. Within the beauty industry, companies must learn how to best serve their customers who
visit stores to discover and test new products, but also those who want to refill or buy new
products for their own homes. Beauty brands need to keep up with the trend of engaging online
and offline mediums to serve their customers needs. Additionally, there has been a rise in mobile
applications that engage customers to play with new colors and products through virtual and
augmented realities, that can be an opportunity to convert an experience into purchases.
Glossier Compared to Industry
Glossier has positioned itself as a disruptor within the beauty industry that serves the minimal
millennial girl. They have been able to respond to key market drivers, such as the emerging
middle class, millennial market. This segment now has higher purchasing power than ever
before, with more disposable income to spend on beauty. This generation spends more time

online, and have deep connections to bloggers and influencers. Glossier’s ability to leverage their
social media expertise has allowed them to become a well-known name in the industry.
However, in order to remain competitive and successful, Glossier needs to be mindful of its
challenges. Although they have success as an online brand, with the help of their social media
presence, they are not currently available in any offline channels. This may serve as a deterrence
for customers who prefer to experience their products in person before they purchase. Chemical
ingredients may also show to be a challenge for Glossier. Although they highlight natural
ingredients within their products, they have not yet made a commitment to be non-toxic or
eliminate the presence of dangerous chemicals.
Legal/Regulatory Issues
In the United States, the cosmetic industry falls under the Federal Drug Administration’s (FDA)
Office of Cosmetics and Colors. The FDA takes on a reactive, rather than proactive, stance on
regulation of this industries. Cosmetics products and ingredients do not require approval before
going to market, and the liability and legal responsibilities lie within the companies that
manufacture and market cosmetics. The FDA will step in if research and inspections reveal that
certain products or chemicals show to be harmful to consumers. With growing concern regarding
the safety of chemical and toxic ingredients, consumers have now put pressure on Congress and
cosmetic companies to do their part to increase the regulation and oversight. New legislation,
known as the Personal Care Products Safety Act, has been introduced, and has bipartisan
support, as well as the support of large cosmetic companies and trade group.
Regulation of the cosmetic industry varies dramatically between countries and regions. For
example, the European Union has banned more than 1,300 chemicals and another 256 are
heavily regulated. There is also various regulations and requirements regarding the labels and5
ingredient disclosure. This presents a challenge for brands when seeking to expand into new
markets and regions throughout the world.
Competition
In 2017, the major players among the multi-category cosmetics industry in the United States (see
Table 1) are Ulta Beauty (25.6% market share), L Brands Inc. (17.1% market share), Sephora
(16.6% market share), and Sally Beauty Holdings, Inc. (8.2% market share).6
5
(2016, September 27). Cosmetics set for new safety regulation. Why the industry is on board. Retrieved December
3, 2017, from https://www.statnews.com/2016/09/27/cosmetics-fda-congress-safety/
6
(n.d.). USC Libraries |. Retrieved December 3, 2017, from
https://libraries.usc.edu/reports/us/industry/majorcompanies.aspx?entid=1055#MP9182

Table 1. Market Share
Company Market Share in 2017
Ulta Beauty 25.6%
L Brands Inc. 17.1%
Sephora 16.6%
Sally Beauty Holdings, Inc. 8.2%
Glossier, Milk Makeup, ColourPop, Lime Crime >1%
As we drill down further, we have identified online cosmetic brands Milk Makeup, ColourPop,
and Lime Crime to be Glossier’s direct competition in the market today. As privately held
companies, we can surmise that each have less than 1% market share in the multi-category
cosmetics industry. A Multidimensional Perceptual Map (Exhibit 1) illustrates each of the
brand’s market share within the independent / private brand category.
Exhibit 1. Multidimensional Perceptual Map

Milk Makeup
Milk Makeup is a New York based, cruelty-free cosmetics brand founded by Mazdack Rassi,
Zanna Roberts Rassi, and Georgie Greville in 2016. The company differentiates itself by its7
bold and bright colors, and alludes to a slightly futuristic style, opposite of Glossier’s makeup for
a natural look. Its target market are consumers on the go with an edgy feel. This attitude reflects8
Milk Makeup’s website and online user experience as seen in below. Additionally, bloggers
have the ability to request sample products to review directly on the Milk Makeup website via a
simple online form. Milk Makeup can be purchased at their ecommerce store as well at Sephora9
stores, Urban Outfitters, and Birchbox.
Source: MilkMakeup.com
ColourPop
ColourPop is a Los Angeles based cosmetics brand founded by Laura Nelson in 2014. Their
business model is similar to the fast fashion model, where they create on-trend products released
at record speed and at low costs. ColourPop also partners with influencers by creating exclusive
collections, curated by influencers. One example is beauty blogger Jenn Im who has millions of
followers in her social media accounts combined (1.5M on Instagram; 434,665 on Facebook;
129K on Twitter; 2M on Youtube). Their target market are young consumers who enjoy bright
colors and a bold look. This attitude reflects all throughout their website-- both in design and
content-- as seen below. Almost all of ColourPop cosmetics are vegan and can be purchased
exclusively at their e-commerce store. They do not sell wholesale or authorize the resale of their
products. Their products are available worldwide, excluding China, Turkey, Democratic
7
(2016, May 25). ColourPop Founders Interview - Creating Kylie Lip Kit - Refinery29. Retrieved December 3,
2017, from http://www.refinery29.com/2016/05/111883/colourpop-founders-video-interview
8
(2016, December 7). Milk Makeup Jumps Into The Crowded Market Of Edgy Cosmetics .... Retrieved December
3, 2017, from
https://www.fastcompany.com/3063244/milk-makeup-jumps-into-the-crowded-market-of-edgy-cosmetics-brands
9
(n.d.). Faqs - Milk Makeup. Retrieved December 3, 2017, from https://www.milkmakeup.com/faqs.html

10
Republic of Congo, Cote D’Ivoire, Cuba, Iran, North Korea, the Crimean region of the Ukraine,
Sudan and Syria.10
Source: ColourPop.com
Lime Crime
Lime Crime is a New York based cosmetics brand founded by Xenia Vorotova (a.k.a. Doe
Deere; a.k.a Unicorn Queen) in 2008. The brand started out as an eBay account in 2004 that sold
DIY fashion by Doe Deere, accompanied by her colorful makeup style, which eventually became
her staple look. Lime Crime is an intensely bold, bright, and vibrant line of cruelty-free
cosmetics. In addition, Lime Crime also donates to a number of charitable organizations such as:
Girls Inc., HOLA, Sanctuary for Families, Bideawee, Adopt NY, and the Red Cross. Their target
market are “Unicorns” or individuals who are looking for high coverage, playful, and colorful
makeup. Their website features beauty bloggers and fan favorites which captures the brand’s11
persona, as seen below. Lime Crime products are available online at their e-commerce store as
well as Bloomingdale's, Planet Beauty, Urban Outfitters, and several other online distributors
including Amazon, Dermstore, Dote, Revolve, The Sev, and Riley Rose. Lime Crime is also
available in Canada, the Middle East, Mexico, Russia, United Kingdom, Australia, New Zealand,
Thailand, Indonesia, Poland, and China.12
10
(n.d.). Terms – ColourPop. Retrieved December 3, 2017, from https://colourpop.com/pages/terms
11
(n.d.). Our Founder Doe Deere | Vegan & Cruelty Free - Lime Crime. Retrieved December 3, 2017, from
https://www.limecrime.com/pages/our-founder-doe-deere
12
(n.d.). Stores | Vegan & Cruelty Free Makeup - Lime Crime. Retrieved December 3, 2017, from
https://www.limecrime.com/pages/stores

11
Source: LimeCrime.com
Table 2. Glossier’s Social Media Following Compared to its Direct Competition
Glossier Milk Makeup ColourPop Lime Crime
Facebook 149,195 48,513 1,495,926 1,135,143
Instagram 765K 315K 5.1M 3.2M
Pinterest 71,044 4,010 35,484 40,624
Twitter 44.1K 19.7K 703K 71.3K
Youtube 85K 51K 83K 2.6K
Table 3. Competitors Strengths & Weaknesses
Company Strengths Weaknesses
Glossier - Strong brand identity, culture and
vision.
- Products easily consumed through
direct-to-customer business model.
- In depth understanding of the
Glossier millennial woman and social
media usage trends.
- No brick and mortar stores.
-e-Commerce only to U.S., Puerto
Rico, Canada and United Kingdom.
- Not accessible to global audience of
women who want “easy-to-use
skincare and makeup products that
enhance–never hide–your real skin”.15
15
(2017, April 14). Glossier to Expand HQ in New York City, Create 282 Jobs, Retain 61 .... Retrieved December 3,
2017, from
http://www.tradeandindustrydev.com/industry/technology-r-d/news/ny-glossier-expand-hq-nyc-create-282-jobs-retai
n-6-12725

12
Business model disruptive to beauty
industry, gaining buzzworthy
attention, elevating the brand to
resonate among competitors,
customers and the press.
- Digital and traditional marketing
amplifying brand identity increasing
brand profitability and securing
audience.
- On trend using customer feedback
and crowd-sourced ideas to build and
strengthen brand culture.
- Placing the customer at the focal
point for product creation ensuring
customers needs are met.13
- Capturing the ITG following
leveraging Glossier’s product launch.
- Strong usage of social channel,
Instagram, leveraging brand presence
and cult following.
- Partnerships with digital
entertainment and media hubs,
Refinery 29 and BuzzFeed, sharing
blog articles, product images and
Glossier’s accomplishments.
- Strong product portfolio with
evergreen products that align with the
brand vision and core values; consists
of body care, color makeup and skin
care.
- Online promotions and bundle
packages; savings include free
shipping.
- Abundant rarity in limited
collections of makeup products
- Customer experience online.
Website lacks a mix of media content
that boosts the online shopping
experience.
- Lack of video testimonials in digital
store. For customer feedback review
and testimonials user must check out
Gossier’s YouTube channel.
However, last video on YouTube
posted 2 months ago.
- Collaboration with celebrities and
influencers that promote brand and
products in digital store.
- Misleading marketing. Current
campaign Body Hero depicts woman
of all shades and body types.
13
(2017, September 15). Glossier Body Hero Model Ads Paloma Elsesser Instagram - Refinery29. Retrieved
December 3, 2017, from http://www.refinery29.com/2017/09/172399/glossier-body-hero-ad-instagram

13
keeping customers wanting more and
engaged with the brand.14
- Product portfolio in the accessible
and affordable tier of the luxury
market reaching a larger
segmentation.
- No animal testing. Cruelty free
brand
Milk Makeup - Launched in 50 Sephora stores in the
US with prime real estate in its
spaces; expanding to 100 more
Sephoras and 50 Urban Outfitters.
- Unisex packaging and edgy
campaign won over Sephora’s
clientele.
- Milk studios owns a creative agency
that produces content for large-scale
consumer brands and its own editorial
platform. This gives Milk Makeup a
head start with passionate followers of
the Milk brand.
- Attractive packaging, fun, creative,
edgy, transparent image that resonates
with its target market (wide range:
millennials, boys, busy young
professionals, moms).
- Products are also easy to use, no
fuss, and on-the-go with unique
formula, unique application, and
unique packaging.
- Intuitive with product design that
- Internal challenge of going from a
B2B company to a B2C company.
- Could be easy to confuse Milk
Makeup with Glossier.
- Crowded market with “edgy
cosmetics”18
- Risk of being acquired by bigger
cosmetic brand like Revlon, L’Oréal,
Estee Lauder, Unilever, and Johnson
& Johnson if they are not able to keep
up with demand for new must-have
products.19
- Not accessible to international
customers; ships only in the US and
Puerto Rico.
- No current collaborations with
celebrities / celebrity ambassador that
can promote brand and products
in-store.
14
(2016, August 25). Inside Glossier, The Beauty Startup That Just Happens To ... - BuzzFeed. Retrieved December
3, 2017, from https://www.buzzfeed.com/nitashatiku/inside-glossier-the-beauty-startup-that-just-happens-to-sell
18
3, 2017, from
19
3, 2017, from

14
attracts wide range of customers.
- Products are cruelty-free.
- Packaging infused with
antimicrobial silver so that products
can stay safe and won’t discolor.
- Major asset was its physical studio
space and staff that helped develop
and test products.16
- Launched with a full collection.
- Works with influencers to increase
brand awareness; allows them to
reach and connect with their
customers at a deeper level.17
ColourPop - Instagram famous beauty brand that
is heavily supported and endorsed by
social media influencers, especially in
Los Angeles.
- Uses a fast-fashion model that
allows the company to pivot quickly
as they receive customer feedback.
- Attractive packaging with
holographic lettering and bright,
colorful accents on white tubes, fun,
creative, edgy, image attracts its target
market (millennials) effectively,
especially those who follow beauty
blogs and channels online.
- Makeup artists, as in the ones that
didn't become famous on Instagram,
use it on clients. Taraji P. Henson's
makeup artist Ashunta Sheriff has
used ColourPop to create colorful
- A brand launching solely via social
media is still a very new phenomenon
and come with a lot of risks (i.e.,
fad/trend vs evergreen)
- Images posted on social media
viewed as tightly controlled image
and façade with no origin story
associated with it.21
- Uses fast-fashion model that can be
viewed as socially irresponsible
practice (e.g., product waste,
environmental effects, etc.)
- Has made a confidential acquisitions
that deem the company as not
transparent with its customers as they
should be / as expected in today’s
consumer culture.22
16
(2016, November 1). Inside Milk Makeup's Formula for Success | Intelligence | BoF. Retrieved December 3, 2017,
from https://www.businessoffashion.com/articles/intelligence/inside-milk-makeups-formula-for-success
17
(2017, March 2). Is Milk Makeup as Good as Its Marketing? - Racked. Retrieved December 3, 2017, from
https://www.racked.com/2017/3/2/14750964/milk-makeup-review

15
looks on Cookie Lyon in "Empire."20
- Overwhelmingly positive YouTube
and Instagram reviews.
- Unbeatable price for value; the
brand keeps costs low because
everything is manufactured in-house.
Lime Crime - Lime Crime was extremely
successful with its unique
promotional efforts and website.
- Expanded product offerings with
nail polishes and brushes.
- Advertises individuality and
creativity to its fullest; bold, edgy,
bright, and fun makeup.
- Vegan and cruelty-free makeup.
- Successfully launched a series of
eyeshadows, glitters, a primer, and
brushes in its eCommerce site.
- Founder Doe Deere is hands-on with
the production of products.
- Excitement over the new brand has
plateaued.
- Marketing efforts are limited to a
niche audience who uses extremely
bright and bold / edgy makeup; not
ideal for people on-the-go.
- Deemed as the “Most Hated Beauty
Company on the Internet” due to
unethical practices and scandals like
fake deaths, Nazi costumes, legal
threats against 13 year-old girls,
hacker attacks, class action lawsuits,
FDA warnings, credit card fraud, cold
sores, and questionably named
eyeshadow palettes called "China
Doll."23
- Allegedly deleting comments
critical of the brand on every
platform. Dissatisfied customers were
ignored.
- A number of retailers have pulled
Lime Crime from their shelves based
on the history of the brand.
- In 2016, Lime Crime was removed
21
(2016, January 22). How ColourPop Became the Most Popular (and Most ... - Fashionista. Retrieved December 3,
2017, from https://fashionista.com/2016/01/colourpop-instagram-beauty
22
IBID
20
(2016, January 22). How ColourPop Became the Most Popular (and Most ... - Fashionista. Retrieved December 3,
2017, from https://fashionista.com/2016/01/colourpop-instagram-beauty
23
(2015, September 28). Why Lime Crime Is the Most Hated Beauty Company on the ... - Racked. Retrieved
December 3, 2017, from https://www.racked.com/2015/9/28/9392021/lime-crime-doe-deere-hated-xenia-vorotova

16
from vegan and cruelty-free makeup
list.24
Value Chain
Glossier is a vertical online beauty brand that interacts directly to its consumers through their
e-commerce website and social media. Their products are crafted based on the feedback of the
Into The Gloss (ITG) community, which means products are developed to suit customers’ needs.
The company works with several chemists and manufacturers in North America. However, no
additional information has been released apart from saying “beauty industry standard to keep that
information confidential.”25
According to National Purchase Diary (NPD) Group global beauty analyst Karen Grant,
Glossier’s direct-to-customer business model cuts down inventory cost because they are only
building on demand and they can make changes to their product line really quickly. With Series
B funding of $24 million in 2016, Glossier is now responding to growing global demand.26
According to their website, products are now available for shipment to all 50 U.S. States, Puerto
Rico, Canada, and United Kingdom. In addition, Glossier opened its first showroom in New
York City in December 2016. The showroom is open 7 days a week for customers who want to
try the product before purchasing.27
In addition to its direct-to-customer business model, the company’s strong brand identity also
contributes to its success. According to Weiss, Glossier celebrates difference and individuality28
rather than celebrities. The company positioned itself as a beauty brand for every ordinary
woman. It helps women to feel more comfortable with their own skin and body while most other
beauty companies carry the message that beauty products can transform you into someone better
looking than yourself.
Glossier’s Unique Value Proposition
We’re laying the foundation for a beauty movement that celebrates real girls, in real life.
Glossier is a new way of thinking about (and shopping for) beauty products. Because
24
(2016, June 12). Lime Crime: Removed From My Cruelty-Free List | Cruelty-Free Kitty. Retrieved December 3,
2017, from https://www.crueltyfreekitty.com/news/lime-crime-scandal/
25
26
(2016, November 30). Glossier is going global and opening a physical retail store. Retrieved December 3, 2017,
from https://www.fastcompany.com/4026107/glossier-is-going-global-and-opening-a-physical-retail-store
27
(n.d.). Glossier Showroom - Glossier | Skincare & Beauty Products Inspired .... Retrieved December 3, 2017, from
https://www.glossier.com/locations
28

17
“beauty” should be fun, easy, imperfect, and personal. Above all, we believe that you
give life to products-products don’t breathe life into you.29
Glossier emphasizes the importance of “natural looking beauty”, authenticity, or “realness.”
Weiss said that beauty shopping in the past lacked the experience of real women and real
experiences. In our observation of beauty trends on social media, the contoured look is most30
popular-- heavy concealer, foundation, eyeshadow, and lipstick. It truly transforms the shape of
the face. Also, cosmetic companies use the same type of women who have perfect complexion
and very slim figures to promote their products. The definition of beauty has become so narrow
that women in real life would not be considered pretty. In view of this, Glossier decided to
feature women in real life in their campaign.
Source: Glossier.com Source: Pinterest - Contouring Makeup
Exhibit 2. Value Chain
29
(n.d.). What is Glossier - About Us | Glossier. Retrieved December 3, 2017, from https://www.glossier.com/about
30

18
Exhibit 3. Customer Experience Journey
Customer
In most Consumer Packaged Goods, the target market for women is typically those who fall
within the 35-54 group, however millennials are changing that for the cosmetics market. Today,31
millennials (aged 18-24) make up roughly 47% of the heavy buyers in the cosmetics market.
This segment is more likely to purchase between 5-10 types of cosmetic products throughout the
year. With so much purchasing power, this group is changing the landscape of the cosmetics
market.
31
(2016, November 30). Glossier is going global and opening a physical retail store. Retrieved December 3, 2017,
from https://www.fastcompany.com/4026107/glossier-is-going-global-and-opening-a-physical-retail-store

19
Table 4. Buyers Per Age Group
Millennials are changing the way consumers purchase their makeup. The industry has seen a
1.3% drop in traditional, mainstream cosmetic sales, but a 42.7% growth in sales for independent
brands. This reflects a change in consumers preferences, as consumers are no longer sticking to32
one brand but rather choosing a variety of brands with different product lines to choose from.33
This group is also increasing the demand for cruelty free and non-toxic makeup, as they are more
aware of harmful chemicals in their products than previous generations.
Although 90% of cosmetic sales still occur within brick and mortar stores, traditional outlets like
department stores and groceries stores have seen a slowage of their cosmetic sales. However,34
there has been a boom in specialty cosmetic retailers that allow consumers to touch and play
before making a purchase. Ulta has seen its sales grow 41% from 2014 to 2015, while Sephora
saw a 25% increase in that same period. While the brick and mortar remains to hold the35
majority of sales, the internet is showing to be an important tool. The industry has seen a growth
in customers researching products, reading reviews, and viewing tutorials on social media before
32
(2017, June 19). How The Beauty Industry Is Adapting To Change - Forbes. Retrieved December 3, 2017, from
https://www.forbes.com/sites/richardkestenbaum/2017/06/19/how-the-beauty-industry-is-adapting-to-change/
33
(2016, May 26). The Way We Buy Beauty Now - Racked. Retrieved December 3, 2017, from
https://www.racked.com/2016/5/26/11674106/buying-beauty-sephora-department
34
35
(n.d.). TABS Annual US Cosmetics Study. Retrieved December 3, 2017, from
http://cdn2.hubspot.net/hubfs/544043/2015_Cosmetics_Campaign/2015_Cosmetics_Study/study/TABS_Analytics_
Second__Annual_U.S._Cosmetics_Study.pdf

20
making a purchase. This has allowed consumers to have more buying confidence and planning
for purchase before entering a store.36
Company
IntoTheGloss.com (ITG) is a well known beauty and lifestyle blog founded by Emily Weiss in
2010. It is known for its Top Shelf column, which gives beauty fanatics a peek into the bathroom
cabinets of celebrities, models, executives, up-and-coming “It girls” and the coolest women in
world of beauty and fashion. Over the years, IntoTheGloss.com has incubated an online37
community which consists mainly of social media savvy female millennials who have enormous
interest in beauty. The monthly view number of the website reached 1.5 million in 2016. It38
made sense for Weiss to pivot into the product world, and in 2014, Glossier was born. The39
cosmetics company Glossier has gained tremendous popularity among millennials and Gen-Z
since its launch in October 2014. To note, ITG’s loyal followers on social media (74K on
Instagram; 43K on Twitter; 70K on Pinterest; 143K on Facebook) catapulted Glossier to the
mainstream market.40
● Headquarters: 123 Lafayette Street, New York, NY 10013, United States
● Key Executives: Emily Weiss, Founder & CEO
Michael Harper, Co-founder & Digital Director
Nick Axelrod, Co-founder & Editorial Director
● Employees: 350 (estimated)
Glossier had 44 employees in August 2016. They opened 282 jobs through its major41
NY expansion thanks to the $3 million performance-based tax credits from New York
Governor Andrew Cuomo.42
● Business Model: Glossier conducts their business mainly through its direct-to-customer
online store and its first showroom in NYC.
36
37
(n.d.). What is Glossier - About Us | Glossier. Retrieved December 3, 2017, from https://www.glossier.com/about
38
39
(2016, February 8). These Direct-to-Consumer Brands Are Disrupting the Beauty Industry .... Retrieved December
3, 2017, from
http://www.adweek.com/brand-marketing/these-direct-consumer-brands-are-disrupting-beauty-industry-169435/
40
(2014, November 17). Pando: With $8.4M and throngs of loyal followers, Glossier is out to .... Retrieved
December 3, 2017, from
https://pando.com/2014/11/17/with-8-4m-in-cash-and-throngs-of-loyal-followers-glossier-is-out-to-prove-a-beauty-
brand-can-be-built-online/
41
42
(2017, April 13). Glossier Is Poised to Hire Nearly 300 New Employees In ... - Fashionista. Retrieved December
3, 2017, from https://fashionista.com/2017/04/glossier-jobs-expanding-funding

21
● Distribution: Glossier currently ships to 50 states, Puerto Rico, Canada, and the UK.
● Mission and Vision: Glossier introduces a new way of thinking about and shopping for
beauty products. It believes that beauty products should be fun, easy, imperfect and
personal. The beauty philosophy introduced by Glossier emphasizes that skin care is
essential and makeup is a choice. The company also aims to lay the foundation for a
beauty movement that celebrates real girls in real life.
Source: Glossier.com and IntoTheGloss.com
Revenue and Profit
The annual sales of the company is estimated at $16.93 million according to the Hoovers
Database. The revenue of the company is reported to grow to 600% in 2016, and expects to43
grow several hundred percent in 2017. Additionally, Glossier has garnered $40 million in
venture capital funding since its launch which shows that the company has a potential to grow
even bigger.
Positioning
Female millennials account for a huge portion of Glossier’s following. As stated in the
Introduction, many of its followers come from ITG fan base. The ITG community recognizes,
trusts and loves the Glossier brand. Weiss saw the void in the cosmetic industry where few
brands truly listen to their customers when developing products. In this sense, Glossier’s44
products are all made to cater the customer’s needs.
43
(n.d.). Login - Hoover's. Retrieved December 3, 2017, from
http://subscriber.hoovers.com.libproxy2.usc.edu/H/company360/overview.html?companyId=78541007&newsComp
anyDuns=078541007
44
(2016, May 24). How Glossier became so popular - Business Insider. Retrieved December 3, 2017,
from http://www.businessinsider.com/how-glossier-became-so-popular-2016-5

22
In comparison to other cosmetic brands, Glossier is very disruptive due to its brand culture and
business model. The brand can make swift changes regarding to its product range without
worrying about its inventory. The disruptive nature of the brand makes Glossier stand out from
other cosmetics companies, including its direct competitors.
Glossier advocates the idea that everyone is beautiful in their own skin. Glossier goes against the
idea of heavy makeup which has gained attention from press and social media. The image of the
glossier girl is confident and cool, someone who dares to show off her natural skin. However, not
all consumers have perfect skin and require a heavier cover up. In an effort to influence
consumer thinking, Glossier stresses the importance of skincare. Skincare always comes first and
makeup comes second. This idea makes sense for the brand’s current product portfolio as well as
the their not so pigmented makeup products.
Source: Collection of Vials, Stephanie Zheng
In September 2017, Glossier launched its Body Hero line, an oil body wash and a creamy body
lotion. The Body Hero campaign has created a buzz since its premiere. The campaign starred a
diverse group of women, from a plus-size model to a pregnant female athlete-- all of them
unclothed. The models are from different backgrounds and have different body types. But one45
thing they have in common is that they all have luminous and seemingly perfect skin. All look
45
(2017, September 15). Glossier's New Campaign Features Women With a Range of ... - Adweek. Retrieved
http://www.adweek.com/brand-marketing/glossiers-new-campaign-features-women-with-a-range-of-backgrounds-a
nd-bold-real-bodies/

23
fierce and confident. Glossier is attempting to send the message through the campaign that
everyone can have glowing skin as long as they use Body Hero products.
However, Glossier does need to come up with more products targeting different types of
customers to enrich its product portfolio if the company wants to gain more credibility and
remain a disruptor in the beauty industry.
In all, Glossier sees the void of customized beauty products in the beauty industry and provides
millennials and Gen-Z with affordable luxury beauty products. While most beauty brands’
messaging is for customers to conceal their imperfections, Glossier products are not made to
cover up imperfections completely-- more so to enhance the natural look.46
Table 5. Positioning Statement
Positioning Statement
To Tech-savvy Millennials and Gen-Z beauty lovers who wants to be different
and confident in themselves.
Glossier is the disruptive beauty brand founded by Emily Weiss who owned the online
beauty blog Intothegloss.com. Glossier has four lines that are skincare,
makeup, bodycare and fragrance.
that provides customers with affordable customized luxury products.
That’s because Glossier talks to its customers in order to understand their real needs. It
relies heavily on customer feedbacks in the product development. Glossier
also celebrates real beauty in real life and aims to set the foundation for a
beauty movement.
46
(2016, August 25). Inside Glossier, The Beauty Startup That Just Happens To ... - BuzzFeed. Retrieved
https://www.buzzfeed.com/nitashatiku/inside-glossier-the-beauty-startup-that-just-happens-to-sell

24
Body Hero Campaign Posters
Source: Glossier.com
Marketing Mix For Applicable Products And/Or Services
Product/Service
Glossier currently provides it customers with a skin care line, color makeup, and body care line.
● Skin care line: cleanser, priming moisturizer, lip balm, serum, face masks, face mist, and
sunscreen.
● Color makeup category: brow gel, highlighter, lipstick, lip gloss, blush, foundation,
concealer, and powder.
● Body care line: oil body wash and a body cream.
● Fragrance: Glossier You.
Glossier first launched in 2014 with a set of four products-- a face mist, a lip balm, a priming
moisturizer and a skin tint foundation. Throughout the years, the company enriched its product
portfolio. The product packaging has the iconic ‘G’ logo and the rosy pink color. Unlike other
beauty brand’s product packaging, Glossier’s packaging is simple, fun, smart, energetic, and
humorous. For example, the packaging of the skin tint foundation is similar to the shape of
eyedrops; the packaging of the blush looks like a paint tube. All these elements make Glossier’s
products stand out from other brands.

25
Glossier Logo Glossier founder, Emily Weiss
Glossier’s First Set of Products and the Product Keywords
However, the Glossier makeup line is very limited in its shade range. Although the shades cover
different skin color from pale skin to darker skin, the range of selection is still limited. It could
be hard to find the shade that fits exactly your skin color. For example, the skin tint and stretch
concealer have five shades while the newly launched Fenty makeup has 40 different shades for
its foundation. The lack of shade range is definitely a problem for Glossier’s color makeup.
Another problem is that the glossier makeup products are more on the sheer side which means it
may not provide enough coverage and would wear off easily. Although sheer natural makeup is

26
something Glossier promotes, the company still needs to develop more pigmented products to
target a different audience.
The brand is selling more than beauty products. Besides skincare and beauty products, Glossier
also sells its logo sweatshirt at $60. It is a great way to interact with its customers and form the
recognition of the Glossier community.
Promotion
Glossier promotes its products across a variety of social media platforms as well as the ITG blog.
The launch of the Super Serum set showcases the company's promotion strategy.
The chart below is the launch timeline for the Glossier's serums on differently online platforms.
During the seven-day pre-launch campaign, Glossier set up a new product landing page and also
reached out to brand advocates to post unboxing. They also set up a landing page and did
promoted posts on Reddit. The company utilized all its social media channels as well as the ITG
blog to promote its new products.47
Table 6. Glossier’s Promotional Strategy
Source: Medium.com
47
(2016, September 15). Four Key Takeaways from Glossier's Product Launch Strategy - Medium. Retrieved
https://medium.com/@emilydedwards/four-key-takeaways-from-glossiers-product-launch-strategy-495d15faa454

27
The company understands the importance of timing when promoting their new products. During
the seven-day launching campaign, September 5th (first day of the campaign), 7th, and 12th (last
day of the campaign) are marked as important days for product promotion. The chart below
shows the Central Time Zone timeline of Glossier's product promotion endeavors across
different platforms.48
Table 7. Glossier’s Product Promotion Strategy
Source: Medium.com
As a digital savvy company, Glossier understands the power of social media influencers. For
example, they send new products to different segments of influencers to review. The influencers
were divided into three different categories: the top tier category includes mostly celebrities; the
employee category includes staff from Glossier and ITG blog; and the beauty lover category
includes mainly beauty bloggers and enthusiasts. The company is also smart about the timing
and communication when approaching its advocates. They included a handwritten note
indicating the objectives of the new launch and the social media posting date for an individual
influencer.49
48
49
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Source: Medium.com
Place
Glossier’s products are currently sold at its online e-commerce store and in its NYC showroom.
The company does not sell wholesale.
The distribution of Glossier’s main competitors are listed as below:
● Milk Makeup can be purchased at their e-commerce store as well at Sephora, Urban
Outfitters, and Birchbox.
● Lime Crime products are available online at their e-commerce store as well as
Bloomingdale's, Planet Beauty, Urban Outfitters, and several other online distributors
including Amazon, Dermstore, Dote, Revolve, The Sev, and Riley Rose.
● ColourPop is similar to Glossier in that it does not sell wholesales. ColourPop products
are only sold through their online store.
Pricing
Glossier's pricing is more on the affordable side with individual product price ranging from $12
to $60. Glossier befriends with their customers and listens to their feedback when creating their
products. Although their they are sold at an affordable price, customers can feel like they are
purchasing a luxurious item because of ITG’s reputation as a curator of the best skin care and
makeup in the industry.
The pricing of Glossier’s main competitors are listed below:
● Milk Makeup: Individual product price ranges from $7 to $80.
● Lime Crime: Individual product price ranges from $1.50 to $58.
● ColourPop: Individual product price ranges from $5 to $86.

29
Glossier does offer discount by selling products in sets. For example, Glossier’s serums are sold
at $28 individually. However, customers can purchase the serum set containing all three different
serums for $65 (20% off discount). Glossier also offers free shipping for purchases over $30.50
III. EXPANDED SWOT ANALYSIS
Below is a conducted SWOT analysis pointing out strengths, weakness, opportunities and threats
the Glossier brand might face maintaining their disruptive business model in the cosmetic beauty
market.
A. Strengths
● Strong brand identity, culture and vision.
● Products easily consumed through direct-to-customer business model.
● In depth understanding of the Glossier Millennial woman and social media usage trends.
● Business model disruptive to beauty industry, gaining buzzworthy attention, elevating the
brand to resonate among competitors, customers and the press.
● Digital and traditional marketing amplifying brand identity increasing brand profitability
and securing audience.
● On trend using customer feedback and crowd-sourced ideas to build and strengthen brand
culture. Placing the customer at the focal point for product creation ensuring customers
needs are met.51
● Capturing the ITG following leveraging Glossier’s product launch.
● Strong usage of social channel, Instagram, leveraging brand presence and cult following.
● Partnerships with digital entertainment and media hubs, Refinery 29 and BuzzFeed,
sharing blog articles, product images and Glossier’s accomplishments.
● Strong product portfolio with evergreen products that align with the brand vision and
core values; consists of body care, color makeup and skin care.
● Online promotions and bundle packages; savings include free shipping.
● Abundant rarity in limited collections of makeup products keeping customers wanting
more and engaged with the brand.52
● Product portfolio in the accessible and affordable tier of the luxury market reaching a
larger segmentation.
● No animal testing. Cruelty free brand.
50
51
(2017, September 15). Glossier Body Hero Model Ads Paloma Elsesser Instagram - Refinery29. Retrieved
December 3, 2017, from http://www.refinery29.com/2017/09/172399/glossier-body-hero-ad-instagram
52

30
B. Weakness
● No brick and mortar stores.
● e-Commerce only to U.S., Puerto Rico, Canada and United Kingdom. Not accessible to
global audience of women who want “easy-to-use skincare and makeup products that
enhance–never hide–your real skin”.53
● Customer experience online. Website lacks a mix of media content that boosts the online
shopping experience.
● Lack of video testimonials in digital store. For customer feedback review and
testimonials user must check out Gossier’s YouTube channel. However, last video on
YouTube posted 2 months ago.
● Collaboration with celebrities and influencers to promote brand and products in digital
store.
● Misleading marketing. Current campaign Body Hero depicts woman of all shades and
body types. However product line only has products for woman with fair skin.
C. Opportunities
● Headquarter expansion; adding 282 new jobs and retaining 61 jobs across technology,
finance, marketing, operations, and other core functions. To encourage Glossier’s New
York expansion, Empire State Development provided the company $3 million in
performance-based tax credits through the Excelsior Jobs Program.54
● Join forces with a larger corporate beauty entity improving on brand vision, marketing
assets and product extensions.
● Loyalty Programs: “Loyalty programs can help retailers retain customers, encourage
repeat store visits, and increase purchase amounts. Many retailers reward frequent or
large purchases by offering discounts or free items as incentives. Companies may also
give loyal customers advance notice for sales or access to invitation-only events”.55
● Alternate payment systems throughout global expansion allowing shoppers other
methods of payment.56
● Leverage environmental safety in products with the demand of brands and products that
are eco-friendly.57
53
(2017, April 14). Glossier to Expand HQ in New York City, Create 282 Jobs, Retain 61 .... Retrieved December 3,
2017, from
http://www.tradeandindustrydev.com/industry/technology-r-d/news/ny-glossier-expand-hq-nyc-create-282-jobs-retai
n-6-12725
54
IBID
55
http://subscriber.hoovers.com.libproxy2.usc.edu/H/industry360/trendsAndOpportunities.html?industryId=1518
56
IBID
57
http://subscriber.hoovers.com.libproxy2.usc.edu/H/industry360/trendsAndOpportunities.html?industryId=1518

31
● Venture capital funding at launch. “Raised $10.4 million in venture capital financing over
a seed and series A round” With series B funding of $24 million in 2016, Glossier is now
responding to a growing global demand and the company expects to grow several
hundred percent next year as well”.58
● Global expansion into France, Asia and other global emerging markets.59
● Experiential marketing such as pop-ups throughout North America, Europe, Asia and
other global markets.
D. Threats
● Companies that offer products in both brick and mortar stores and via e-commerce.
● Digital trends in the beauty, cosmetics and perfume industry. Competing companies offer
broader range of digital media mix around events and holidays connecting and attracting
audiences such as how to promotions.
● Lack of current in store trends and promotions, plus the enhanced customer experience
with technology and service provided by a brand ambassador.
● Brand dilution. Strategy for expanding product categories must be well thought out,
margins met or the company may stray away from core brand values, losing their
customer. Licensing the brand to third parties may give away too much freedom to
licensing partners who are driving sales but not maintaining brand vision.
● Acquisition due to beauty market trends.
● Diversity in product portfolio, creating products for multi-ethnic groups. Woman of color
is a massive audience. May cause unsuccessful market entry.
E. Maximize Strengths and Opportunities
● Creating a loyalty program for their cult following from ITG which would offer
exclusivity and abundant rarity to current customer.
● Creating collections and using influencers to reach audience with how to social posts and
product results. Producing content marketing assets for digital store, NY showroom and
experiential marketing such as pop-ups amplifying brand vision and culture.
● Digital activities enhancing Glossier, making customers fall in love with the brand not
just the products.
● Developing product extensions for brand adjacency optimizing the value and profitability
of Glossier.
● Optimize the digital landscape by lifting their digital presence with a compelling media
mix strategy and collaborations.
58
59
(2017, July 13). Glossier International Shipping Canada UK France - Refinery29. Retrieved December 3, 2017,
from http://www.refinery29.com/2017/07/163241/glossier-selling-global-canada-uk-france

32
● Enter emerging beauty global markets, establishing international offices extending the
Glossier Millennial to the everyday international “It Girl” and woman.
● Using the latest in technology to elevate the consumer digital experience online.
F. Mitigate Weaknesses and Threats
● Stay on trend with beauty brands and reach target audience in brick and mortar stores, not
only online.
● Girls with perfect skin who do not need a lot of coverage is a narrow market. Even
though this brand was created for light makeup wear, offering a wide variety of coverage
will include a larger audience reaching professional makeup artists and stage performers.
● Use brand vision and voice for inclusion and diversity among product portfolio and
product extensions. Create more shades for women of color, however still use current
inclusion and diversified marketing tactics.
● Even though Glossier is transparent with product labeling, dive further and manufacture
clean products that are eco-friendly, not only animal cruelty free.
Exhibit 4. Diamond E+C - Glossier Case

33
IV. SUMMARY
Our recommendations for Glossier are to expand more shades for their base makeup products to
reach more customers and to launch an automatic product renewal service that retains customers
while offering incentives to loyal customers.
Meanwhile, Glossier is going to launch the “Beauty of Attraction” campaign to promote its
expanded shade range for three products; Perfectly Skin Tint Foundation, Stretch Concealer and
Wowder. A series of online and offline activities will accompany the launch of the new
campaign.
V. VALUE CHAIN
Company Strategy
● Align recommendations with Glossier’s guiding principles.
● Find niche in the market, address problem, create product, scale, expand awareness.
● Market validation using Porter’s 5 Forces of Analysis.60
○ Competitive Rivalry.
■ Perfecting Skin Tint Foundation: ColourPop and Lime Crime do not offer
foundations; Milk Makeup has 16 shades available.
■ Stretch Concealer: ColourPop already has 15 shades available; Milk
Makeup as 7 shades available; Lime Crime does not offer concealers.
■ Wowder: ColourPop and Milk Makeup do not have face powders in their
product line; Glossier can be first to launch multiple shades of face
powder amongst its direct competitors.
○ Supplier Power: Anticipate increase of cost in production and COGS; Must
employ effective marketing strategies in order to draw more customers and
encourage existing customers to stay loyal.
○ Buyer Power: Delivering on demand from Glossier’s target market; Anticipation
of strong buyer power from existing customers who have voiced their need for
more shades from Glossier.
○ Threat of Substitution: Glossier has a very strong brand image (amongst
Millennials) with passionate followers and loyal customers; Must continue to
employ current marketing strategies in order to maintain their image and
following.
60
(n.d.). Porter's Five Forces - Strategy Skills Training From MindTools.com. Retrieved December 8, 2017, from
https://www.mindtools.com/pages/article/newTMC_08.htm

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○ Threat of New Entry: A new disruptor in the cosmetics industry can emerge;
Glossier will need to continue to stay above trends and create trends.
Concept & Design
● Concept Team and Design Team must work together in order to create continuity of
product extensions in order to successfully enter new segment of customers on both ends
of the spectrum (lighter skin and darker skin).
● Work with Marketing Team to create a marketing campaign, similar to “Body Hero”
where women of various figures and sizes are featured in billboards and other ads.
Research & Development
● Test formulas by following experimentation protocol.
● Gather feedback from a select set of customers who have used Glossier in the past as well
as employ blind testing in order to gain unbiased feedback.
Production & Operations
● Test production scalability.
● Test production viability.
● Remain with current suppliers; anticipate and plan for increase in cost when products
launch.
Assembly & Manufacturing
● Packaging design to remain the same but must include photos of women of various skin
tones; include new description of the products as well.
● Anticipate and plan for increase in cost when products launch.
Marketing & Sales
● Website and social media must be updated with new video tutorials / samples of lighter
skin and darker skin women using Glossier products.
● Promotional Marketing
● Experiential Marketing / Physical Retail (Pop-ups and showroom)
● Pricing and Positioning
● Customer Experience Design (customer journey)
Branding
● Reinforcing brand belief is going to be key. Glossier must stay aligned with the
company’s values, and this should reflect on their minimalistic yet fun branding.

35
● Glossier customers buy into the “cool girl” image and they must maintain this throughout
all branding materials and collateral.
● Invest in marketing expense to build brand awareness.
Customer Service / Customer Retention
● Main channels: e-Commerce, website, newsletters, Instagram, Snapchat, Facebook,
Twitter, Pinterest, YouTube.
● Products purchased online and delivered by promise date.
● Address any customer-related issues quickly and provide solutions.
● Mitigate and anticipate possible issues that may arise.
● Employ best customer journey experience.
● Provide incentives for loyal customers.
Customer
● Target market is millennials who prefer the natural look.
● Expanded segment will include very light skin tones to very dark skin tones.
● Customer enjoys: convenient shopping experience online; opportunity to visit showroom
to see and feel the products before purchasing; opportunity to visit pop-ups in major
cities.
● Customer turns to social media often to find new products / share new products / write
reviews.
VI. TARGET MARKETS
With our recommendations of expanding skin tone options and adding an automatic renewal
service, we are hoping to expand our target market with the focus on millennial women ages
24-35, but with the reach of a larger, more loyal client base. This demographic is quickly gaining
more income and spending power and are projected to become the biggest spending generation
in modern history.61
Millennials shop and spend money to achieve a personal sense of enjoyment, finding shopping to
be more rewarding, social and therapeutic compared to their genX predecessors. .
With the62
increase in spending power from the millennial consumer, it is expected that personal
consumption expenditures will increase by 4.6%, from $12.5 trillion in 2015 to upwards of $15.7
61
(n.d.). Resources | USC Marshall. Retrieved December 12, 2017, from
http://academic.marketresearch.com.libproxy1.usc.edu/product/display.asp?productid=10122805&curl=&surl=%2F
search%2Fresults%2Easp%3Fprid%3D964879073%26query%3DMillennial%26categoryid%3D70%26cmdgo%3D
Go&prid=964879073
62
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36
trillion in 2020. When surveyed, 33% of millennials said that they would likely be spending
more money on personal care and beauty items over these same 5 years. This shows that the63
beauty industry can continue to expect growth and greater revenue returns thanks to the support
of this emerging generation.
It is also important to understand how millennials shop and connect with brands. Millennial
women are more likely to become fans and followers on social media than generations before
them. An estimated 71% of millennial women have connected with a brand via social media, and
a quarter of have used coupon codes provided to them via social channels. Digital marketing is64
a key component to connect and build relationships with millennial consumers.
Currently, Glossier’s target market centers predominantly on this millennial woman who feels as
though she wants to see a revolution in the beauty industry, preferring realness over glamour.
They are a movement that celebrates real girls, in real life.
This girl is on Instagram, crafting65
her own persona and gathering beauty and style tips from the coolest up and coming influencers.
“Trust Us, We’re You” is their brand persona.66
Although Glossier currently markets specifically to the millennial consumer, we feel as though
they have fallen short on connecting with and providing for millennial women of color. This is
an especially important market as the market share of multicultural consumers is expected to rise
by 40%. .
This growth in the multicultural market is being led by a rise in the hispanic market,
67
which is made of women from a variety of ethnic backgrounds and complexion shades. These
women are now coming to expect representation from beauty brands, and Glossier should take
note and cater to this growing market segment.
Additionally, we believe that an automatic renewal service will allow Glossier to deepen
connections with these consumers and make their shopping experience easier and faster,
ensuring that their favorite Glossier products are always on-hand. Seeing that millennial women
tend to be heavy purchaser of beauty products, typically purchasing 10 or more types of products
63
http://academic.marketresearch.com.libproxy1.usc.edu/product/display.asp?productid=9272904&curl=&surl=%2Fse
arch%2Fresults%2Easp%3Fprid%3D964879073%26query%3DAmerican%2BConsumer%26categoryid%3D70%26
cmdgo%3DGo&prid=964879073
64
(n.d.). What is Glossier - About Us | Glossier. Retrieved December 12, 2017, from
https://www.glossier.com/about
65
IBID
66
IBID
67
Go&prid=964879073

37
a year, they are less loyal and more likely to shift between brands than their older counterparts.68
Creating a loyalist program with discounts for play into millennial motivations of ease in
shopping and discount driven.
69
The new Glossier girl will continue to embrace a minimal, natural look that fights against the
status quo of the beauty industry. However, with more representation, she will feel more
empowered and confident in her choice of Glossier over other brands. Additionally, she will
have the assurance that her favorite makeup will always be on hand, knowing that her loyalty to
the brand elevated her to a lifelong customer.
VII. OBJECTIVES
Quantitative Objectives for Glossier’s 2018 Revenue and Profit
Glossier's business strategy for 2018 is to drive revenue and profit by maintaining a competitive
advantage and offering products that appeal to a larger segmentation. Glossier will increase the
amount of foundation shades available for current customer and target more millenials who
range in melanin content and skin tone pigmentation. Glossier will take a two prong approach,
focus on acquiring new customers with increasing offerings and focus on their “Lifetime”
customers by offering an automatic renewal product program. The focus of the automatic service
to is gain knowledge of popular products and how many “Lifetime” customers are engaging with
the brand. More importantly, Glossier will learn from goals met and/or unmet, how to generate
brand growth and customer development for upcoming years.
In the past three years since Glossier’s launch in 2014, Glossier has evolved offering millennial
woman a minimalistic real look with products available only online. Glossier has grown
exponentially since launch with distribution in four markets (United States, Canada, Puerto Rico
and UK) increasing revenue in 2016 by 2000%. . Glossier has continued to grow in consumer70
purchasing spending and unit volume. Brand growth also includes brand profitability through
68
(n.d.). TABS Analytics. Retrieved December 12, 2017, from
http://cdn2.hubspot.net/hubfs/544043/2015_Cosmetics_Campaign/2015_Cosmetics_Study/study/TABS_Analytics_
Second__Annual_U.S._Cosmetics_Study.pdf
69
Go&prid=964879073
70
(n.d.). PrivCo database. Retrieved December 11, 2017, from
https://www-privco-com.libproxy2.usc.edu/private-company/glossier_private_stock_annual_report_financials

38
seed and round a series investments during 2016 which accumulated to 34.5M in funding.71
Based on Glossier’s past revenue and market share, forecasted revenue for 2017 is to increase by
100% totaling to 45.6M in revenue. Glossier’s dynamic and fast growth has suggested a goal of
100% revenue growth for 2018 totaling to 91.2M in revenue from products sold which will
include the creation of the “Lifetime” customer who subscribes to the automatic renewal product
program monitoring number of units sold and purchases per customer for 2018 than in previous
years.
Table 8. Projected Revenues in 2018
71
(n.d.). Glossier Company Profile | Owler. Retrieved December 11, 2017, from
https://www.owler.com/iaApp/1868139/glossier-company-profile

39
Table 9. Projected Revenue Earnings in 2018
Year Revenue Earnings
($ in millions)
% of Growth
2015 1 N/C
2016 22.2 2000%
2017 45.6 100%
2018 91.2 100%
Glossier will continue with expected revenue growth at a fast pace. Purchasing behavior among
our target audience is not expected to change. Glossier will continue crowdsourcing ideas from
our customers, maintaining core brand values and fulfilling the ever changing needs of woman
through product development and services.
Product: Glossier is giving customers want they want with new foundation shades and an
automatic renewal product program. More women will be able to shop Glossier and have the
option of always having a supply of their favorite Glossier product in their makeup bag.
Glossier’s objective is to double the amount of units sold estimating to selling 5M units across all
product categories. Increasing units sold 100% with product pricing ranging between $12 - $35
will be a direct result of acquiring new customers and creating the “Lifetime” customer. The
automatic renewal service will increase units sold yearly. Continually shipping out makeup
products fulfilling the customer needs automatically will limit the amount of purchase
transactions. However, shipping necessary Glossier products for natural beauty all day to our
“lifetime” customers.
Target goal for number of subscribers is based on revenue, units sold and cult following fan base.
Glossier’s anticipated goal is 125,000 automatic renewal subscribers by the end of 2018.

40
Table 10. Projected Number of Subscribers, Units Sold and Advertising Spending in 2018
2015 2016 2017 2018
Revenue 1M 22.8M 45.6M 91.2M
Units sold 2.5M 5M
Subscribers
(Renewal Program)
125,000
Advertising
Spending
3% (1.36M) 1.5% (1.34M)
Promotion: Advertising spending in the cosmetic industry has shifted from traditional to digital
efforts. Glossier, will launch a new campaign (see promotional marketing strategy), “The Beauty
of Attraction” employing digital efforts ranging from influencer marketing, user generated
content (UGC), social media marketing, digital and traditional WoM. Glossier announced “79
percent of sales were from “organic and peer-to-peer and earned sources” in 2016. Glossier will72
continue to have customers share testimonials and how to apply videos of products throughout
social channels. Especially, with the latest in new foundations and advantage of subscribing to
the automatic renewal program increasing cult following fan base.
Glossier will stay on trend with the cosmetic industry in regards to advertising spending and
scale back on advertising dollars using 3% of 2017 projected revenue of 45.6M, only spending
1.36M on traditional and digital efforts. Main focus of digital efforts will be geared towards
UGC on all social channels. Advertising dollars not spent will roll over into the following year’s
advertising budget. Gossier’s goal in result of promotion and product launch is to increase73
fanbase on all social media channels such as Facebook, Instagram, Youtube, and Twitter.
72
(2017, July 12). Glossier Is Going After New Customers With an Army of Reps - Racked. Retrieved December
11, 2017, from https://www.racked.com/2017/7/12/15949530/glossier-international-shipping-canada-uk
73
(2015, December 14). Beauty Brands Inch Away from Traditional Advertising | Intelligence | BoF. Retrieved
https://www.businessoffashion.com/articles/intelligence/beauty-brands-digital-marketing-advertising

41
Table 11. Projected Social Media Following in 2018
2017 2018 (% in Growth)
Facebook 149,195 200K 25%
Instagram 765K 815K 6.5%
Pinterest 71,044 91,044 28%
Twitter 44.1K 94K 113%
YouTube 85K 135K 58%
Exhibit 5. 2018 Promotional Timeline
Glossier will stay at current advertising spending even though revenue growth is forecasted for
2018. Advertising spending will continue to shrink to 1.5% with project net sales as projected to
reach 91.6M in 2018 (see table 10)
Pricing: Diversifying Glossier’s foundation products by providing more shades of skin tones
will expand segmentation. However, there will not be any changes to current pricing for those
extended product lines;
● Perfecting Skin Tint foundation unit price $26.00

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● Streat Concealer unit price $18.00
● Wowder unit price $22.00
Upon joining the subscription service, Glossier will offer an opportunity to receive up to 15%
percent discount on overall purchase. As a part of the subscription program, Glossier will offer
customers a discounted rate depending how frequently products are renewed. When the Glossier
customer renews products every 4 weeks a customer receives 15% discount, 6 weeks = 12%
discount and 8 weeks = 10% discount.
Place: Glossier’s online business model is what makes the brand unique and disruptive in the
cosmetic industry. The development of the automatic renewal program will place a higher
demand of product shipment throughout the United States, parts of Canada, Puerto Rico and
parts of UK. The points of distribution after “Lifetime”customer has decided to subscribe to the
automatic renewal program or new customer shopping online or in NY showroom are below.
Exhibit 6. eCommerce Distribution Channels
VIII. MARKETING STRATEGIES
A. Product/Service
Expanding and renaming current shades for base makeup products
Glossier is going to expand the current shades for their current base makeup products including
the Perfecting Skin Tint, the Stretch Concealer and the Wowder. Currently, the Perfecting Skin
Tint and the Stretch Concealer have five shades; while the Wowder has three shades. Customers

43
aren’t satisfied with the number of shades offered by Glossier for they complained on social
media that they couldn’t find the exact shade for their skin color. The complaints are not only
from customers with deeper skin tone, but also from lighter skin tone customers.
Thus, Glossier wants to expand their current five shades for the Perfecting Skin Tint and the
Stretch Concealer to ten shades; and their current three shades for the Wowder to five shades.
The expansion of shades will hopefully attract a broader customer pool to Glossier makeup base
products.
Another issue customers complained about is the current shade range and name of shades. For
example, the names for the current five shades of the Perfecting Skin Tint are light, medium,
dark, deep and rich. The names of the shades are not accurate for the actual shades. Some
customers whose skin color falls in the middle of the current five shades are complaining that
they would never consider themselves to be in a “dark” shade for the foundation they use. Also,
the names sound boring as most other makeup brands use names that are more diversified and
less abstract. The names for the expanded ten shades for Perfecting Skin Tint and Stretch
Concealer are ivory, sand, champagne, olive, honey, cinnamon, amber, java, cocoa and
mahogany. The names for the expanded five shades for the Wowder are ivory, champagne,
honey, amber and cocoa. The new names for the shades are more fun, descriptive and bring life
to main foundation products in Glossier’s make-up product portfolio rather than the old names.
The current five shades for the Perfecting Skin Tint and the Stretch Concealer

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The expanded ten shades for the Perfecting Skin Tint and the Stretch Concealer
The expanded five shades for the Wowder
Providing automatic product renewal service and renewal discounts
Glossier wants to think about how to retain its customers and turn them into “Lifetime”
customers. An automatic renewal product program may be a good way to retain current
customers while renewal discounts offer incentives to loyal customers.
The renewal product service offers shipment of new product every four weeks, every six weeks
and every eight weeks. The discount rates for the three renewal time length are 15%, 12% and
10%. The product renewal service can be adjusted, paused and cancelled at any time. Customers
can get discounts from purchasing products through the renewal service.
B. Promotion
The Beauty of Attraction Campaign
Glossier may want to create a campaign for its expanded foundation products. The campaign is
derived from the idea that women of different races should have the chance to wear the makeup
matching their own skin color. Woman wear make-up not for themselves but for other woman.
It is known that our boyfriends, husbands, dad’s love woman for their natural beauty. However,
when woman go to work in the morning they put on the extra glow for other woman. The
“Beauty of Attraction” brings together woman of all shades unifying woman. Maintaining the
message that beauty comes in all shades. The campaign visualization would be something similar

45
to the Naja “Nude for All” campaign where it features ten women of different skin colors
wearing ten different shades of the Glossier base makeup products.
“The Beauty of Attraction” Campaign for Glossier
The campaign not only showcases the expanded shades for Glossier’s base makeup products, but
also conveys the idea that Glossier is aware of its women customers of different races and are
inclusive while developing their new shades for base makeup products.
Online and Offline activities for the new campaign
Online activities:
● Publish campaign on Glossier.com and IntoTheGloss.com.
● Social Media promotion: Instagram, Snapchat, Facebook, Twitter, Pinterest, YouTube.
● PR and news media: Buzzfeed and Refinery29 etc.
● Partner with social media influencers to promote the new campaign.
Offline activities:

46
● New campaign celebration at the Glossier showroom in NYC.
● Pop-up shops in designated cities in the US, the UK and Canada.
● User generated content from the NYC showroom celebration and pop-up shops on social
media.
Promotion for the automatic renewal service:
● Notifications on Glossier.com and IntoTheGloss.com.
● Notifications sent through emails.
● Posts on social media: Instagram, Snapchat, Facebook, Twitter, Pinterest, YouTube.
● Partner with social media influencers to promote the new renewal service.
● Sign up for the service in store at the NYC showroom and the pop-up shops in
designated cities in the US, the UK and Canada during the promotion for the new
campaign.
C. Place
The recommendation plan doesn’t change Glossier’s distribution channels. Customers can still
buy Glossier’s products either through their website or in-store at their NYC showroom.
D. Pricing
The pricing of the products remains the same since Glossier isn’t launching new products.
However, customers can get discounts through the product renewal service. The discount rates
are 15%, 12% and 10% for the renewal time length of every four weeks, every six weeks and
every eight weeks respectively.
IX. PROJECTED PROFIT-AND-LOSS STATEMENT
As a privately held company, complete financial data for Glossier is not available to the public.
Therefore, information regarding their performance over the last 2 years was not available.
However, it was reported that in 2016, Glossier had revenue of $22.8 million. This shows that
the company, with the support of investors, was able to significantly increase its sales and
profits. For financial projections, we believe that Glossier will continue to have significant
growth, especially with the additions of more inclusive color palate and renewal program.
The following profit and loss statement represents what would be the best case, worst case and
most likely scenarios for Glossier, given their previous growth rate and expansion of programs.

47
Table 12. 2018 Income Statement
Income Statement 2018 Best Case Worst Case Most Likely
Net Sales 120,000 75,000 91,600
Cost of Sales 72,000 52,500 59,540
Gross Profit 48,000 22,500 32,060
General and Administrative Expenses 24,000 18,750 18,320
Operating Income 13,200 7,500 12,366
Interest Income, Net (1,800) (750) (458)
Income before Income Taxes 15,000 8,250 12,824
Income Tax Expense 4,800 4,500 4,580
Net Income 12,000 4,875 7,786
X. IMPLEMENTATION PLAN

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Planning
Formulate & Test
Owned by Product Team
● Ensure that new colors have same quality and consistency as original product line
● Formulas are not changing, therefore should not be burdensome for product team
● Test colors on a variety of shade tones and skin types, ensuring that new pigments live up
to Glossier’s standards
IT Systems
Owned by: Technical Support Team
● Ensure that Automatic Renewal Service is available on all products throughout the
website
● Confirm that discount codes associated with frequency are correct
● Allow each customer to be able to personalize their frequency via Account Profile
Supply
Owned by: Supply Chain Team
● In anticipation for increased orders and frequency of orders, Supply Team needs to
ensure that there will be enough stock on hand to support launch
● Anticipate renewals, as we want to ensure that these renewal customers do not miss a
shipment if their product is oversold and out of stock
Develop Collateral Marketing Material
Owned by: Marketing - Content Team
● Create content for “Beauty of Attraction” campaign, focusing on multicultural women
embracing Glossier’s natural aesthetic
● Various content should be created including social media posts, video and traditional
media
● Develop written content such as press releases to inform media and bloggers about new
campaign
Planning “In Real Life” Events
Owned By: Marketing – Events Team
● Locate target cities in which to host launch parties for new products, including all
logistics and details
● Invite influencers and brand ambassadors for a VIP experience
● Create and distribute invitations for general public to come enjoy the Glossier experience

49
Implementation
Hype
Owned by: Marketing Team – Digital
● Release collateral that hints at new product offering and services, creating anticipation
and hype for launch
● 3-5 days before hard launch
Digital Launch
Owned By: Marketing Team – Digital
● Digital launch campaign:
○ Website landing page
○ Social Media Promotion – Instagram, Twitter, Facebook, Snapchat
○ Activate ambassadors and encourage promotion
● Education on Renewal Service
IRL Launch
Owned By: Marketing – Event Team
● Host launch party in targeted city
● Invite public to join festivities via FB/IG Live Features
● Capture and share moments from the IRL campaign
Traditional Launch
Owned By: Marketing – Traditional
● Identify cities/locations that represent target market and would reach potential consumers
● Engage with traditional media press to promote product
● Share any communication released by traditional media to online audience
Control
Social Media Support
Owned By: Customer Service – Digital
● Team should be ready to go as soon as launch is activated. The team will ensure that all
questions are being answered in real time, showing customers Glossier is available and
there for them
● Team should continue to support online community and be ready to act on any issues that
may come up.
● Collect data on any feedback provided by customers and their experience
Stock Support
Owned By: Supply Team
● Ensure that stock levels maintain at an optimal level to ensure that automatic renewals
will be serviced and to support the addition of new orders
● Anticipate any product that may need to be restocked before scheduled delivery service.

50
XI. CONTINGENCY PLAN
Risks
● Distribution of additional product options will affect margins.
● Production of significantly higher volume with potentially slower turnover.
● Unanticipated loss of key employees.
● Physical damage to production facilities and technical or quality failures.
● Competition with other brands-- customer attention may be much smaller.
● Anticipated and unanticipated events that could influence company marketing
performance (e.g., failed marketing campaign to promote product extension).
● Regulatory actions or legal challenges that may arise (e.g., product liability and
intellectual property questions).
● Unable to obtain required financing / unforeseen increase in costs or a loss of expected
sales.
● Reduced ability to provide the expected volume of products or services.
If Plans Fail If Plans Succeed
Focus on making more money on a smaller
niche (current target market) with high
loyalty.
Continue to push out digital promos on social
with select target audience and locations (i.e.,
Advocates of the brand).
Increase marketing expense to build brand
awareness.
Leverage holidays to create themed bundles
(e.g., Valentines Day, National Day of the
Girl, Christmas)
Ensure availability of trained employees with
succession plans.
Appoint a member of the team to keep the
plan up to date by incorporating any new
research or important information from the
field.
Share contingency plan with sales and
marketing teams so that they are aware of
their role in monitoring risk and responding
to threats.74
Share contingency plan with sales and
marketing teams so that they are aware of
their role in monitoring risk and responding to
threats.75
Maintain excellent quality control and assign
clear organizational responsibilities.
Maintain excellent quality control and assign
clear organizational responsibilities.
74
"Marketing Contingency Planning | Your Business."
https://yourbusiness.azcentral.com/marketing-contingency-planning-11448.html. Accessed 10 Dec. 2017.
75
"Marketing Contingency Planning | Your Business."
https://yourbusiness.azcentral.com/marketing-contingency-planning-11448.html. Accessed 10 Dec. 2017.

51
Define what “success” means for the
business – re-evaluate.
Targeting passionate followers and new
customers with goal to turn them into
advocates of the brand.
Maintain business operations and deliver a
minimum level of service and functionality
for the time being.
Provide incentives and cues for loyal
customers to encourage more shopping.

Glossier Marketing Plan

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