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