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More Than a Product Launch: A Comparative Analysis of Selected
Influencer Marketing Events in the Cosmetics Industry
A Senior Project
presented to
the Faculty of the Recreation, Parks, & Tourism Administration Department
California Polytechnic State University, San Luis Obispo
In Partial Fulfillment
of the Requirements for the Degree
Bachelor of Science
by
Reanne Franco
June, 2016
© 2016 Reanne Franco
ii
ABSTRACT
MORE THAN A PRODUCT LAUNCH:
A COMPARATIVE ANALYSIS OF SELECTED
INFLUENCER MARKETING EVENTS IN THE COSMETICS INDUSTRY
REANNE FRANCO
JUNE 2016
With the growth of social media, influencers have emerged as a powerful marketing
medium. Influencer marketing has become a method widely used by brands to engage
with target audiences and build strong consumer relationships. The purpose of this study
was to examine the effectiveness of selected influencer marketing events in the cosmetic
industry. The researcher utilized a matrix to analyze the selected events. Brand and
organization websites, as well as personal accounts on social media, were used to collect
data. The study showed that face-to-face interaction during events give influencers the
opportunity to broaden a brand’s reach and positive reputation. Although marketing
specialists can monitor social media impressions, reach, and number of posts produced
from an event, it is recommended that they continue to find a definite measurement of
influencer marketing success.
Keywords: influencer marketing, experience marketing, social media, special events,
customer relationships, brands
iii
TABLE OF CONTENTS
PAGE
ABSTRACT........................................................................................................................ ii	
  
TABLE OF CONTENTS...................................................................................................iii	
  
Chapter 1 INTRODUCTION AND REVIEW OF LITERATURE.................................... 1	
  
Background of Study ...................................................................................................... 1	
  
Review of Literature....................................................................................................... 2	
  
Purpose of the Study....................................................................................................... 7	
  
Research Questions......................................................................................................... 7	
  
Chapter 2 METHODS......................................................................................................... 9	
  
Description of Organization/s......................................................................................... 9	
  
Description of Instrument............................................................................................. 10	
  
Description of Procedures............................................................................................. 12	
  
Chapter 3 PRESENTATION OF THE RESULTS........................................................... 13	
  
Overview of Events ...................................................................................................... 13	
  
Event Experience.......................................................................................................... 14	
  
Social Media ................................................................................................................. 16	
  
Financials...................................................................................................................... 18	
  
Chapter 4 DISCUSSION AND CONCLUSIONS............................................................ 19	
  
Discussion..................................................................................................................... 19	
  
Conclusions................................................................................................................... 22	
  
Recommendations......................................................................................................... 23	
  
REFERENCES ................................................................................................................. 25	
  
iv
APPENDIXES.................................................................................................................. 30	
  
1
Chapter 1
INTRODUCTION AND REVIEW OF LITERATURE
Background of Study
Many would agree that consumerism plays a vital role in the world economy.
Companies invest millions of dollars each year in order to reach target audiences. In 2015
alone, 553 billion dollars were spent on advertising globally (ZenithOptimedia, 2015).
As current companies rebrand and new companies surface, total ad expenditures are
expected to increase. Although it may be difficult to estimate exactly how many
advertisements a person is exposed to each day, marketing strategies ensure a great
amount of reach to target audiences. In marketers’ constant competition to grab
consumers’ attention, consumers end up being continuously bombarded with
advertisements and other marketing efforts.
The reoccurring issue for companies is finding a way to stand out from the rest.
Many brands sell similar types of products and services, such as Starbucks and Coffee
Bean. Competing brands give rise to a myriad of choices for consumers. However,
brands must create a marketing strategy that fits best with their target market and
persuades the audience why they are the best choice. With the introduction of social
media in marketing strategies, many traditional advertising mediums such as TV, radio,
and print are becoming less effective. Salesforce (2015), found that “66% of marketers
believe social media marketing is core to their business” (p. 3). But companies using
social media as a marketing medium still must differentiate in order to avoid being
looked over by consumers. Brands must continue to find new strategies to effectively
2
reach their target audiences in order to beat out their competition. This study used a
comparative analysis approach to examine the effectiveness of selected influencer
marketing events in the cosmetic industry.
Review of Literature
Research for this review of literature was conducted at Robert E. Kennedy
Library on the campus of California Polytechnic State University, San Luis Obispo. In
addition to books and other resources, the following online databases were utilized:
Academic Search Premier, Hoovers, ABI/INFORM Complete, Google Scholar, Taylor &
Francis, and Business Source Premier. The following review of literature includes these
subsections: experience marketing, effectiveness of social media, influencers, the brand-
influencer relationship, and influencer marketing in the cosmetic industry.
Marketing strategies have evolved throughout history in order to continually
increase sales. For the past 125 years, marketing methods have gradually developed
through six different eras: the trade era, the production era, the sales era, the marketing
department era, the marketing company era, and the relationship era (Johnson, 2015).
During the 2010s, most marketing specialists were familiar with relationship marketing,
in which companies strived to build value-based relationships with customers in order to
gain loyalty and trust (Garfield & Levy, 2012). However, in the recent years, brands have
shifted their focus onto the newest marketing era: experience. Gentile, Spiller, and Noci
(2007) provide the definition of experience marketing as “a set of interactions between a
customer and a product, a company, or part of its organization, which provoke a reaction”
(p. 397). Companies design experiences take the form of events. During an event,
3
customers can engage all five of their senses in an experience that forms deeper
connections with a brand and reinforces company values. Tafesse (2016) claims that the
four characteristics of events that set it apart from other types of marketing methods are
high audience involvement, novelty, experiential richness, and transiency. Events allow
consumers to engage in all five of their senses, unlike traditional advertising methods of
print and audio. Novelty comes into play because events stray away from traditional
marketing tactics since each and every consumer experience is different. Since all five
senses are triggered during events, consumers are able to build relationships, discover
new information, and explore the space, providing a rich experience. Lastly, Tafesse
claims that consumers are more fully attentive during events due to its temporal nature,
prompting individuals to live in the moment.
In addition to experiences, word-of-mouth marketing (WOMM) has also emerged
as a successful marketing tactic. The Nielsen Company (2015a) administered the Global
Trust in Advertising survey and found that “more than eight-in-10 global respondents
(83%) say they completely or somewhat trust the recommendations of friends and family
above all other forms of advertisement” (p. 4). In the age of the Internet, where content is
accessible from almost anywhere in the world, companies are now turning to social
media to gain a broader reach towards customers. Papasolomou and Yioula (2012) claim
that “media mentions and considerable word-of-mouth communication can assist the
firm’s sales promotion efforts by generating publicity, can instill trust between the
salespeople and the customers, and can overcome the customer’s inherent resistance to
the salesperson’s and direct marketing efforts” (p. 324). With marketing adapting to the
newest technology trends, companies are now focusing a larger portion of their
4
advertising efforts towards social media, which studies prove to be more cost effective
than traditional media (Jobs & Gilfoil, 2014). According to Tomoson (2016), “businesses
are making $6.50 for each dollar spend on influencer marketing” (para. 5). Wanda Gill,
Vice President of Media Marketing Effectiveness for Nielsen, said that “offline
advertising still takes on 70% of advertising spend and TV stays as the leading medium,
but there continues to be a gradual shift of advertising budget to digital” (The Nielsen
Company, 2015b, para.1). The total social media ad spending globally was reported as
$25.14 billion in 2015, a 40.8% increase from 2014 (eMarketer, 2015). Because anyone
with access to the Internet can create social media accounts, companies are able to create
interactive conversation with consumers at little to no cost.
Although companies may have a greater reach towards target audiences through
social media, selecting the right individuals to relay the message to consumers is key in
forming a positive reputation. These individuals are called social media influencers,
whom can be identified as early adopters who have acquired positive message credibility
that stem from experience and the strength of their ties with followers (Evan & Fills,
2002; Koo, 2015). The amount of experience and expertise an influencer has within an
industry is directly related to the tie strength. Freberg, Graham, McGaughey, and Freberg
(2010) identify influencers as simply “a new type of independent third party endorser
who shape audience attitudes through blogs, tweets and the use of other social media” (p.
90). Influencers are known to spark conversation within a product market and engage in
WOMM through their own creative content posted online. According to a study by
Vision Critical (2013), 43% of social media users have purchased a product or service
after liking or sharing a post. With a positive review from a social media influencer,
5
viewers are more inclined to buy a product or service, trusting that the opinion of the
influencer is credible. The viewer then turns into a customer, and may potentially
contribute to online conversations.
Marketers are taking advantage of the value of relationship marketing by
strengthening consumer-brand relationships with influencers, who are identified as key
consumers. Besides choosing an influencer with expertise and credibility, public relation
(PR) specialists and marketers strategically select influencers whose personalities,
lifestyle, and image fit that of the brand or campaign (Uzunoglu & Kip, 2014). With
influencer marketing, it is essential that the target audience of the brand and the selected
influencer’s followers match. After a brand selects a social influencer, it is important that
the influencer is familiar and has a relationship with the brand or campaign in order to
yield “behavioral and/or attitudinal results” (p. 593). Engagement between brand and
influencer is based on two key points: “the high relevance of brands to consumers, and
the development of an emotional connection between consumer and brands” (Rappaport,
2007, p. 138). Public relation specialists or marketers of brands communicate with
influencers in order to build a relationship and strengthen brand reputation. Uzunoglu and
Kip (2014) state that one method of communication is when brands send out samples of a
new, unreleased, product to influencers. Vivek, Beatty, and Morgan (2012) identify this
notion of consumer engagement as connection and participation. The brand creates a
connection with influencers by selecting them as early adopters of the product.
Influencers actively participate in the product launch process by providing an initial
opinion. In addition, brands show that influencers’ opinions are valuable to support
consumer-brand relationships and gain customer loyalty. Other notions of consumer
6
engagement include co-creation, and cognitive and affective commitment (Vargo &
Lusch, 2004; Mollen & Wilson, 2010). When influencers are involved in the creation of
new products, they are given a clear association with the brand. Now, PR specialists
understand the importance of influencer-brand relationships. The roles and
responsibilities as PR specialists is to “recognize, understand, and satisfy the needs of the
influencers who are critical to the visibility and ultimate success of a company or
campaign” (Solis & Brakenridge, 2009, p. 272).
As marketers understand the values of both experience and social media, it is only
natural that the two strategies are combined. When influencers post event content on their
social media accounts, followers may stir up conversation about the event by
commenting, liking, or reposting. Social media platforms such as Snapchat, Twitter, and
Instagram provide users virtual access to exclusive events (MediaKix, n.d.). To capture
the full experience, companies encourage social media influencers to bridge the gap
between brand and consumers through videos posted on YouTube or SnapChat (Cievents,
2015). Social media provides a way for online viewers to live vicariously through
influencers. Generally, influencers report their experience at these events, and if it is a
positive evaluation, brands may be better perceived by target consumers.
In recent years, the cosmetic industry has been shown to be one of the top sectors
utilizing influencer marketing. Fashion and Beauty Monitor (2016) claim that influencers
play a large role in cosmetic marketing strategies such as crisis management, promotion
and distribution, and events/webinar production. In addition, a study by the organization
found that “69% of respondents say influencers play an important role in product launch”
(p.14). While the future of influencer marketing may not be certain, it is necessary to
7
study the success and failures of well established companies that have organized special
events specifically for social media influencers. According to MediaKix (2016), Revolve
Clothing was one of the brands marketing at Coachella 2016, inviting various social
influencers to their “Desert House” party. The fashion retail company aimed to increase
sales and raise brand awareness by having social influencers post content regarding the
party on social media. In return, the event accumulated more than 12,700 comments and
1,618,900 likes across several social media channels. Through social influencers,
Revolve Clothing gained an audience of more than 30 million people during the
Coachella 2016 weekend. Influencer marketing efforts have led to a more efficient
method of brand exposure. Brands use events to connect with influencers, and in return,
influencers communicate their experience with followers. From there, a positive opinion
about the brand, product, or service is formed and as well as a potential purchase. This
study used a comparative analysis approach to examine the effectiveness of selected
influencer marketing events in the cosmetic industry.
Purpose of the Study
The purpose of this study was to examine the effectiveness of selected influencer
marketing events in the cosmetic industry.
Research Questions
This study attempted to answer the following research questions:
1.   How do events affect a brand’s relationship with influencers?
2.   What methods of engagement are utilized at the selected influencer events?
8
3.   How do brands select specific influencers to attend events?
4.   What do marketing specialists use to measure the success of an influencer
event?
9
Chapter 2
METHODS
The purpose of this study was to examine the effectiveness of selected influencer
marketing events in the cosmetic industry. This chapter includes the following sections:
description of organization/s, description of instrument, and description of procedures.
Description of Organization/s
A comparative analysis was performed on the #YSLBlackOpiumExperience and
#UDSummerNights influencer marketing events. Yves Saint Laurent (YSL) Beauty is a
luxury cosmetic and fragrance brand headquartered in New York City with
approximately 325 employees (Hoovers, Inc., 2016a). Urban Decay Cosmetics is a color
cosmetic brand headquartered in Newport Beach, California (Hoovers, Inc., 2016b).
Both brands are sold worldwide and are publicly traded companies under L’Oreal Paris.
Yves Saint Laurent was founded in 1961 by the fashion designer himself and was
initially a luxury fashion clothing brand (Global Cosmetic News, 2015). In 1971, the
brand extended into personal care for men. In 2008, YSL Beauty debuted as a separate
branch under L’Oreal Paris. It is at the higher end of L’Oreal’s premium segment and is
perceived to be for older audiences, but young women in their twenties and thirties have
also shown interest in the brand (Passport, 2012). Yves Saint Laurent Beauty (2016)
offers a wide range of makeup, fragrance, and skincare products. Some of the best-
selling products include the Mascara Volume Effet Fauc Cils, Touche Eclat, and Black
10
Opium. Although YSL does not offer an explicit mission statement, it claims to be “the
most subversive Parisian couture brand” (L’Oreal, n.d., para. 1).
Urban Decay (2016) was founded in 1996 by Sandy Lerner and Wende Zomnir.
The two women believed that the products offered in the cosmetic industry at the time
did not offer a wide range colors and seemed too conservative. Lerner and Zomnir then
debuted Urban Decay with 10 lipsticks and 12 nail polishes. Zomnir claims that “the
target Urban Decay consumers fits a lifestyle rather than a demographic” (Romanik,
2009, para. 2). In 2012, L’Oreal Paris acquired the Urban Decay, which resulted in a
larger distribution channel for the brand (L’Oreal, 2012). Urban Decay offers eye, lip,
and face makeup, which are widely known for their whimsical names. Some of the
brand’s best-selling products include the Naked Palette and Eyeshadow Primer Potion.
For the last 20 years, Urban Decay has strived to offer “beauty with an edge”.
Description of Instrument
The instrument utilized in this study was a best practices matrix developed by the
researcher (see Appendix A). The matrix contained required event components that were
gathered through recommendations in literature. The purpose of this matrix was to
identify the key components surrounding each influencer event. The researcher separated
the instrument into four sections: event overview, event experience, social media, and
financials. The event overview asked for information such as event location, number of
guests, event goals, and key influencers. The event experience section asked for specific
examples during the event that involved each of the influencer’s senses. This provided an
in-depth description of what the influencers experienced. The social media section asked
11
for basic statistics regarding social media platforms such as the number of posts,
engagements, impressions, reach, and quotes from influencers regarding their experience
at the event. Lastly, under the financial section, the earned media value (EMV) attributed
to the selected event analyzed. According to RhythmOne (2016), “earned media value
refers to the dollar value that can be attributed to publicity, social sharing and
endorsement, and other unpaid digital media exposure” (p. 8). In order to measure
financial success, the EMV of the month in which the events took place, as well as the
two months after the event, were noted. Other information regarding brand growth were
listed under notes.
A pilot study was conducted on the Westfield “FASH BASH” campaign. This
program differs from the chosen events because Westfield is not a cosmetic brand, but a
fashion retailer. The event focused on driving sign ups and in store traffic rather than
launching a new product (No Subject, 2015). However, the campaign had the same goals
in marketing the brand through social influencers and creating online buzz. The best
practices matrix was used on this specific event. Event though the event included key
influencers, it was satisfactory for the pilot due to the fact that some details of the event
were hard to find. Although content regarding the event was posted on Twitter and
blogs, there were no extensive accounts of the event. After piloting, the researcher
removed the sections regarding revenue and sales as it was difficult to get ahold of those
figures since some companies do not make them available to the public. A notes section
for other information regarding brand growth were listed under financials in order to
provide more detail about the affect of the events on the brands.
12
Description of Procedures
A comparative analysis was performed on the #YSLBlackOpiumExperience and
#UDSummerNights influencer marketing events. The instrument utilized in this study
was a case study checklist developed by the researcher (see Appendix A). The researcher
began to gather information on the #YSLBlackOpiumExperience and
#UDSummerNights events on May 13th
, 2016 and ending on May 17th
, 2016. These
particular campaigns were chosen due to social media exposure, websites, and online
accessibility of necessary documents such as social media reports. Each section was filled
out to great detail, considering each stakeholder at the event. The instrument collected
mostly qualitative data due to the nature of special events, in which each experience can
differ. However, quantitative data was also collected for the financial section.
Information for attendee experience was gathered through the websites of the
agencies that produced each event and the social media posts of the invited influencers.
Influencer Marketing Agency (IMA) produced the Yves Saint Laurent Beauty event and
(No Subject) produced the Urban Decay cosmetics event. Basic social media statistics
such as number of online impressions, social media posts, and engagements were also
found on the agency websites. In addition, by searching the hashtags of both campaigns
across social media platforms such as Twitter, Instagram, YouTube, and WordPress, the
researcher gained a better understanding of each event. More information on social
media statistics and brand financials were found from La Mode Monthly reports by Tribe
Dynamics and annual reports by L’Oreal. In order to describe the success of each event,
the earned media value of each brand was recorded for the month of the event, and the
month after.
13
Chapter 3
PRESENTATION OF THE RESULTS
The purpose of this study was to examine the effectiveness of selected influencer
marketing events in the cosmetic industry. A comparative analysis approach was utilized
to examine Yves Saint Laurent (YSL) Beauty and Urban Decay Cosmetics. This chapter
includes the following sections: overview of events, event experience, social media, and
financials.
Overview of Events
Yves Saint Laurent Beauty launched the #YSLBlackOpiumExperience campaign
to promote the launch of the Black Opium fragrance. On September 25th
, 2015, the two-
part event was held in Amsterdam. First, VIP influencers were invited for a special dinner
at the Hoxton Hotel, followed by a “rock glam” party at Pakhuis West with the rest of the
influencers. Yves Saint Laurent Beauty, together with Influencer Marketing Agency,
selected 15 VIP influencers as campaign ambassadors as well as 55 regular influencers to
represent the brand and generate online conversation around the event. All influencers
were from the region of Benelux, including the countries Belgium, the Netherlands, and
Luxembourg. Key influencers included Noor de Groot and Giaro Giarratana. Urban
Decay Cosmetics launched the #UDSummerNights campaign to promote the launch of
the Naked Skin Beauty Balm and create online buzz using the hashtag. A special event,
produced by No Subject, took place in May of 2014 at a private home located in the
14
Hollywood Hills. More than 50 influencers from the Los Angeles area were invited to the
event, including Whitney Port and Amy Pham.
Event Experience
As mentioned in the overview of events, before the main party, YSL invited 15
VIP influencers for an intimate dinner and reception at the Hoxton Hotel. The space,
called “The Apartment”, included a kitchen, living room and courtyard. The Apartment
was quaint and cozy, as if the setting took place in someone’s own home. The décor of
the entire space engaged the guests’ sense of sight. In the kitchen, the VIP influencers
saw black, white, and grey tiles, marble counters, and rose gold accents. In the living
room, they saw walls filled with framed photos with wooden floors. The dining set up
had a very simple and neutral color palette, with candles to provide a dimly lit setting.
Each VIP guest had a hand-written name card at their seat, along with a menu, a lily
flower, and a bottle of the Black Opium fragrance. The VIP influencers were free to
socialize and take pictures in the courtyard and kitchen before dinner was served. Each
VIP influencer was given a goodie bag as a thank you and souvenir from the dinner. This
engaged their sense of touch, as they examined each of the items in the bag. Since it was
an intimidate dinner and no DJ was present, it is unclear whether or not there was music
playing at the event. Sounds of chatter and dinner utensils filled the VIP influencers’ ears,
engaging their sense of hearing. Then, VIP influencers were served a full meal in the
living room, engaging in their sense of taste. The star of the dinner was a custom “Black
Opium” cocktail that consisted of Grey Goose Citron, strong jasmine tea, lemon, orange
blossom syrup, and dried jasmine flowers for garnish. The VIP influencers’ sense of
15
smell was activated by the aroma of food, cocktails, as well as the Black Opium
fragrance itself.
A couple of hours later, the #YSLBlackOpiumExperience at Pakhuis West begun
with the rest of the influencers. The “rock glam” themed party resembled a night club,
with multiple activities in addition to dancing. Engaging in their sense of sight,
influencers entered the venue through a dark tunnel, lit with neon magenta archways.
Near the entrance, was a YSL step and repeat banner to take pictures as soon as they got
inside the venue. The majority of the venue was dark, occasionally being lit by strobe
lights, party lights, camera flashes, and YSL signs in purple or magenta colors. Aside
from other influencers at the event, everyone watched interpretive dancers throughout the
night, who incorporated the Black Opium fragrance into their routine. For a hands-on
experience with the YSL Beauty products and engagement through the sense of touch,
influencers were able to get their make-up done or test the products out themselves at the
vanity area. Here, influencers were able to play with different colors, shades, and looks.
In another area, influencers could get a fake tattoo drawn onto their arms. A photo booth
with props allowed the influencers to take pictures with friends, but also take home a
personalized souvenir. Near the dance floor area, DJ Monsieur Moustache played
electronic music. This engaged the influencers’ sense of hearing, prompting them to
dance. As for taste, the drinks and finger foods were inspired by the Black Opium scent.
To activate the olfactory senses, the Black Opium fragrance was present in every area of
the venue. The fragrance offers nodes of coffee, vanilla, and white flowers.
Urban Decay’s #UDSummerNights party in the Hollywood Hills gave influencers
a view of the Los Angeles skyline. Influencers saw the sky go from bright to dark,
16
watching the city lights come out as the night went on. The private home gave an
intimate experience, resembling a backyard party. The décor reflected a bohemian,
southwestern style along with a modern look for the outdoor area. A backdrop was set up
adjacent to the pool reading “UD Summer Nights”. Make-up artists were also at the
event to test Urban Decay products on the influencers. In addition to trying out the new
Beauty Balm and other products, influencers also had a hands on experience with partner
companies at the event. Influencers were able to make their own personalized flower
crown with Cult Gaia. Clothes by Whitney Eve and Vitamin A were on display for
influencers to look through. Each influencer was also given an Urban Decay swag bag
with products and samples take home. The music for the night was provided by DJ
Sosupersam, playing mostly hip hop and R&B songs. Cocktails were provided by Veev
Spirits, and featured Vivafrute lemonade, cosmopolitan, margarita and wine. Colorful
finger foods and desserts were displayed including cheese boards, vegetables, hummus,
cake pops, tarts, and mousse. No type of scent was specifically identified by Urban
Decay or any of the influencers invited to the event.
Social Media
The #YSLBlackOpiumExperience and #UDSummerNights events were both
featured on their respective brand’s social media accounts. In addition, both events
resulted in influencers posting event content on the following social media platforms:
Facebook, Twitter, Instagram, YouTube, and various blogging sites.
During the #YSLBlackOpiumExperience event, professional footage was shot
and edited into a post-event experience video that also served as personal clips for
17
influencers to share on their own channels. The photo booth and step and repeat at the
event also gave influencers opportunities to create social media content. Majority of
accounts were made via blog post and Facebook. Influencers for the YSL Beauty Event
included Noor de Groot, who has 202,000 Instagram followers, and Giaro Giarratana,
who has 181,000 Instagram followers. After the event, Influencer Marketing Agency
reported a total of 392 influencer posts across all social media platforms created at the
event. The posts resulted in a combined influencer reach of 15.4 million and 12.3 million
campaign impressions. The posts also resulted in a total of 256.7 thousand engagements,
including likes, comments, and shares. Lastly, Yves Saint Laurent saw an increase of
50,000 followers on the @YSLbeauty Instagram page. Frequent words and phrases that
appeared on social media platforms regarding the event included, “amazing experience”,
“connection”, and “prestigious event”.
During the #UDSummerNights, the backdrop and swan float were the main
opportunities for photos. Influencers for Urban Decay included Whitney Port and Amy
Pham, who have 1.1 million followers and 407,000 followers on Instagram respectively.
After the Urban Decay cosmetics event, (No Subject) reported a total of more than 480
influencer posts across all social media platforms created at the event. There was a total
of 11.2 million impressions of the #UDSummerNights hashtag. Frequent words and
phrases that appeared on social media platforms regarding the event included “fun", “had
a blast”, and “ready for the summer”.
18
Financials
In September 2015, the earned media value (EMV) for YSL was reported at
$1,567,943. After the YSL event on September 25th
, the EMV for October 2015 was
$1,875,460. A month later in November, the EMV was reported at $783,742. The
platform with the highest EMV for YSL during September 2015 was Instagram at
$3,564,225 and Facebook coming in second at $310,220. The most recent La Mode
Monthly reported YSL as the top fragrance brand with the highest EMV at $4,283,631.
This list included brands such as Jo Malone, Viktor & Rolf, and Dior, to name a few. In
2015, L’Oreal reported the success of Black Opium resulted in a 18.4% increase in brand
growth for YSL Beauty.
In May 2014, the EMV for Urban Decay was reported at $3,542,472. After the
YSL event in May, the EMV for June 2014 was $4,188,141. A month later in July, the
EMV was reported at $1,909,007. The platform with the highest EMV for Urban Decay
that month was YouTube at $1,909,007 and Facebook coming in second at $680,545.
After the event, Urban Decay doubled its sales in two years, having the highest growth
rate in L’Oreal’s Luxe division.
19
Chapter 4
DISCUSSION AND CONCLUSIONS
With the development of social media, influencer marketing has recently become
a highly practiced method of reaching consumers. Special events have been an important
component in building relationships between brands and influencers. This concluding
chapter will include the following: a discussion of the findings, limitations, conclusions
based on research questions, and implications of the findings, and recommendations for
future research.
Discussion
Face-to-face interaction and engagement can prompt influencers to speak more
positively and more often about a brand to their followers. Unlike online communication,
events provide brands the opportunity for a more memorable and intimate relationship
with influencers. Garfield and Levy (2012) mention that building these value-based
relationships can result in loyalty and trust. Events make influencers feel special,
allowing them to experience a brand rather than simply communicating with a brand. The
selected events demonstrated the essence of each company through engaging guests
through sense of sight, touch, hearing, taste, and smell. For example, Yves Saint Laurent
Beauty integrated elements of the Black Opium fragrance into cocktails and food served
at the event. Urban Decay decorated the event venue to channel the brand’s edgy, modern
image. Events help brands embody a brand’s mission, values, and goals an because of
20
this, are thought to leave a long lasting impact on influencers. Brands should continue to
focus on event marketing efforts targeted towards influencer relationships.
Events facilitate engagement between brands influencers. An upscale event such
as #YSLBlackOpiumExperience, assured influencers that they are valuable to the
company. Since Yves Saint Laurent (YSL) Beauty is viewed as a luxury brand, they
should continue producing high-class events. While Urban Decay is not viewed to be as
luxurious as YSL Beauty, the brand should create a more an upscale event that would
further display the importance of influencers. However, Urban Decay did offer a sense of
co-creation to Whitney Port, allowing her to showcase her boutique items at
#UDSummerNights. Based on the findings of Vargo and Lusch (2004), Urban Decay
should take advantage of co-creation and release a product in collaboration with a well-
established influencer. With their strong establishment in the cosmetic industry, Urban
Decay would not only benefit from the collaboration, but the influencer would also gain
more exposure and credibility. The integration of multiple customer engagement methods
at these events let to positive feedback on social media. Even though an influencer may
not like a specific product, they may continue the support of a brand due to great
customer service and history.
The amount of brand exposure and the earned media value (EMV) from an event
heavily depends on the influencers that get invited. Influencers determine who receive the
message, and the amount of people that see it. Koo (2015) recognizes influencers as
experts in their respective industries. As influencers build trust and credibility with their
followers, the size of their following continues to grow. Although there were more
guests in attendance at the YSL Beauty event, the Urban Decay event yielded more posts
21
on social media platforms. In addition, Urban Decay also saw a higher increase in EMV
for the following month after the event compared to YSL Beauty. This may be due to the
fact that the key influencers at #UDSummerNights had greater popularity and a
significantly larger audience than those that attended #YSLBlackOpiumExperience.
Brands similar to YSL Beauty should make it a point to invite a handful of high-status
influencers to events in order to raise EMV.
Earned media value can be useful in measuring the return on investment (ROI) of
a specific event. However, the effect of EMV on product sales and brand growth is still
unclear, although there could be a relation. Vision Critical (2013) claimed that 43% of
social media users have purchased a product or service after liking or sharing a post.
Although there is a positive relationship between YSL Beauty’s brand growth and EMV
for 2015, there could be other factors contributing to brand growth other than EMV.
Brand growth and sales may also be affected by the status of the economy, current
events, and geography. Marketers should move towards perfecting the measurement of
success while paying attention to the buying habits of customers persuaded by
influencers.
The biggest limitation of this study was the use of strictly online resources. Even
though online resources are convenient, online case studies and annual reports may leave
out important information valuable to the study. The L’Oreal annual report did not
breakdown sales of it’s two subsidiary companies, YSL Beauty and Urban Decay.
Instead, only a collective report including the rest of the subsidiary companies was
available to the researcher. Another limitation was the selection of influencers used to
draw out information about the events. The researcher reviewed about 3-5 influencers’
22
accounts of the events for each brand. The influencer’s social media posts may not
represent the opinions or experience of all the attendees at the event. While the researcher
had not used any of YSL or Urban Decay’s products, familiarity and current word-of-
mouth regarding the two brands may have contributed to pre-existing bias, affecting the
results of the study.
This study aimed to examine influencer marketing-related events within the
cosmetic industry. As influencer marketing is still a recent trend in marketing strategies,
this study has shown broken down each event into smaller components, demonstrating
how experience benefits consumer ties. Brands are able to broaden customer reach by
forming working relationships with key consumers, called influencers. Although
communicating with influencers electronically may increase brand loyalty, face-to-face
interactions strengthen these bonds. This study also illustrated the key components of
influencer events that drive conversation among potential customers. Through the
research of event marketing and experience, recommendations were made for both of the
events in the study on how to maximize the benefits from utilizing influencer events.
Conclusions
Based on the findings of this study, the following conclusions are drawn:
1.   Events engage influencers in all five senses, allowing brands to connect with
their audience on a more personal level, and allowing influencers to
experience the brand rather than know the brand.
23
2.   Methods of engagement utilized at influencer events include, but are not
limited to, product trials, group photo opportunities, creative activity, and
entertainment.
3.   Brands select influencers with high popularity, credible expertise, and a
following that matches the brand’s target audience.
4.   Although a definite measurement of success within influencer marketing is
still flawed, marketing specialists look to EMV, impressions, reach, and posts
to evaluate success.
Recommendations
Based on the conclusions of this study, the following recommendations are made:
1.   The cosmetic industry should continue investing in influencer marketing
events as it has been shown to be effective in reaching target audiences.
2.   Since YSL Beauty is viewed as a luxury brand, they should continue
producing high-class events.
3.   To raise earned media value, YSL Beauty should invite influencers of high-
status and popularity.
4.   Urban Decay should take advantage of co-creation with an influencer due to
it’s strong establishment of 20 years in the cosmetic industry.
5.   To improve the strength of their relationships, Urban Decay can produce high-
class event to show the importance of influencers.
6.   Influencer marketing specialists can close the gap in measuring the
effectiveness events, by closely monitoring follower buying habits.
24
25
REFERENCES
26
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benchmarks-report
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29
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social media is reinventing the aging business of PR. Retrieved from
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Uzunoglu, E. & Kip, S. M. (2014). Brand communication through digital influencers:
Leveraging blogger engagement. International Journal of Information
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Vargo, S. L. & Lusch, R. F. (2004). Evolving to a new dominant logic for
marketing. Journal of Marketing, 68(1), 1–17. doi: 10.1509/jmkg.68.1.1.24036
Vision Critical. (2013). From social to sale. Retrieved from http://teh.net/
Vivek, S. D., Beatty, S. E., & Morgan, R. M. (2012). Customer engagement: Exploring
customer relationships beyond purchase. Journal of Marketing Theory &
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Yves Saint Laurent Beauty. (2016). Homepage. Retrieved from http://yslbeautyus.com/
*ZenithOptimedia. (2015). Executive summary: Advertising expenditure forecasts
December 2015. Retrieved from http://www.zenithoptimedia.com/
30
APPENDIXES
31
Appendix A
Instrument
32
Event Name #1 Event Name #2
Event Overview
Date
Location
Number of Guests
Purpose of Event
Event Goals
Key Influencers/ Number of
Followers
Event Experience
Sight
Touch
Hear
Taste
Smell
Social Media
Number of
Posts at Event
Engagements
Impressions
Total Reach
Notes/Quotes from
Attendees
Financials
EMV Month Before Event
EMV Month After Event
EMV 2 Months After Event
Notes

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More Than a Product Launch: A Comparative Analysis of Selected Influencer Marketing Events in the Cosmetics Industry

  • 1. More Than a Product Launch: A Comparative Analysis of Selected Influencer Marketing Events in the Cosmetics Industry A Senior Project presented to the Faculty of the Recreation, Parks, & Tourism Administration Department California Polytechnic State University, San Luis Obispo In Partial Fulfillment of the Requirements for the Degree Bachelor of Science by Reanne Franco June, 2016 © 2016 Reanne Franco
  • 2. ii ABSTRACT MORE THAN A PRODUCT LAUNCH: A COMPARATIVE ANALYSIS OF SELECTED INFLUENCER MARKETING EVENTS IN THE COSMETICS INDUSTRY REANNE FRANCO JUNE 2016 With the growth of social media, influencers have emerged as a powerful marketing medium. Influencer marketing has become a method widely used by brands to engage with target audiences and build strong consumer relationships. The purpose of this study was to examine the effectiveness of selected influencer marketing events in the cosmetic industry. The researcher utilized a matrix to analyze the selected events. Brand and organization websites, as well as personal accounts on social media, were used to collect data. The study showed that face-to-face interaction during events give influencers the opportunity to broaden a brand’s reach and positive reputation. Although marketing specialists can monitor social media impressions, reach, and number of posts produced from an event, it is recommended that they continue to find a definite measurement of influencer marketing success. Keywords: influencer marketing, experience marketing, social media, special events, customer relationships, brands
  • 3. iii TABLE OF CONTENTS PAGE ABSTRACT........................................................................................................................ ii   TABLE OF CONTENTS...................................................................................................iii   Chapter 1 INTRODUCTION AND REVIEW OF LITERATURE.................................... 1   Background of Study ...................................................................................................... 1   Review of Literature....................................................................................................... 2   Purpose of the Study....................................................................................................... 7   Research Questions......................................................................................................... 7   Chapter 2 METHODS......................................................................................................... 9   Description of Organization/s......................................................................................... 9   Description of Instrument............................................................................................. 10   Description of Procedures............................................................................................. 12   Chapter 3 PRESENTATION OF THE RESULTS........................................................... 13   Overview of Events ...................................................................................................... 13   Event Experience.......................................................................................................... 14   Social Media ................................................................................................................. 16   Financials...................................................................................................................... 18   Chapter 4 DISCUSSION AND CONCLUSIONS............................................................ 19   Discussion..................................................................................................................... 19   Conclusions................................................................................................................... 22   Recommendations......................................................................................................... 23   REFERENCES ................................................................................................................. 25  
  • 5. 1 Chapter 1 INTRODUCTION AND REVIEW OF LITERATURE Background of Study Many would agree that consumerism plays a vital role in the world economy. Companies invest millions of dollars each year in order to reach target audiences. In 2015 alone, 553 billion dollars were spent on advertising globally (ZenithOptimedia, 2015). As current companies rebrand and new companies surface, total ad expenditures are expected to increase. Although it may be difficult to estimate exactly how many advertisements a person is exposed to each day, marketing strategies ensure a great amount of reach to target audiences. In marketers’ constant competition to grab consumers’ attention, consumers end up being continuously bombarded with advertisements and other marketing efforts. The reoccurring issue for companies is finding a way to stand out from the rest. Many brands sell similar types of products and services, such as Starbucks and Coffee Bean. Competing brands give rise to a myriad of choices for consumers. However, brands must create a marketing strategy that fits best with their target market and persuades the audience why they are the best choice. With the introduction of social media in marketing strategies, many traditional advertising mediums such as TV, radio, and print are becoming less effective. Salesforce (2015), found that “66% of marketers believe social media marketing is core to their business” (p. 3). But companies using social media as a marketing medium still must differentiate in order to avoid being looked over by consumers. Brands must continue to find new strategies to effectively
  • 6. 2 reach their target audiences in order to beat out their competition. This study used a comparative analysis approach to examine the effectiveness of selected influencer marketing events in the cosmetic industry. Review of Literature Research for this review of literature was conducted at Robert E. Kennedy Library on the campus of California Polytechnic State University, San Luis Obispo. In addition to books and other resources, the following online databases were utilized: Academic Search Premier, Hoovers, ABI/INFORM Complete, Google Scholar, Taylor & Francis, and Business Source Premier. The following review of literature includes these subsections: experience marketing, effectiveness of social media, influencers, the brand- influencer relationship, and influencer marketing in the cosmetic industry. Marketing strategies have evolved throughout history in order to continually increase sales. For the past 125 years, marketing methods have gradually developed through six different eras: the trade era, the production era, the sales era, the marketing department era, the marketing company era, and the relationship era (Johnson, 2015). During the 2010s, most marketing specialists were familiar with relationship marketing, in which companies strived to build value-based relationships with customers in order to gain loyalty and trust (Garfield & Levy, 2012). However, in the recent years, brands have shifted their focus onto the newest marketing era: experience. Gentile, Spiller, and Noci (2007) provide the definition of experience marketing as “a set of interactions between a customer and a product, a company, or part of its organization, which provoke a reaction” (p. 397). Companies design experiences take the form of events. During an event,
  • 7. 3 customers can engage all five of their senses in an experience that forms deeper connections with a brand and reinforces company values. Tafesse (2016) claims that the four characteristics of events that set it apart from other types of marketing methods are high audience involvement, novelty, experiential richness, and transiency. Events allow consumers to engage in all five of their senses, unlike traditional advertising methods of print and audio. Novelty comes into play because events stray away from traditional marketing tactics since each and every consumer experience is different. Since all five senses are triggered during events, consumers are able to build relationships, discover new information, and explore the space, providing a rich experience. Lastly, Tafesse claims that consumers are more fully attentive during events due to its temporal nature, prompting individuals to live in the moment. In addition to experiences, word-of-mouth marketing (WOMM) has also emerged as a successful marketing tactic. The Nielsen Company (2015a) administered the Global Trust in Advertising survey and found that “more than eight-in-10 global respondents (83%) say they completely or somewhat trust the recommendations of friends and family above all other forms of advertisement” (p. 4). In the age of the Internet, where content is accessible from almost anywhere in the world, companies are now turning to social media to gain a broader reach towards customers. Papasolomou and Yioula (2012) claim that “media mentions and considerable word-of-mouth communication can assist the firm’s sales promotion efforts by generating publicity, can instill trust between the salespeople and the customers, and can overcome the customer’s inherent resistance to the salesperson’s and direct marketing efforts” (p. 324). With marketing adapting to the newest technology trends, companies are now focusing a larger portion of their
  • 8. 4 advertising efforts towards social media, which studies prove to be more cost effective than traditional media (Jobs & Gilfoil, 2014). According to Tomoson (2016), “businesses are making $6.50 for each dollar spend on influencer marketing” (para. 5). Wanda Gill, Vice President of Media Marketing Effectiveness for Nielsen, said that “offline advertising still takes on 70% of advertising spend and TV stays as the leading medium, but there continues to be a gradual shift of advertising budget to digital” (The Nielsen Company, 2015b, para.1). The total social media ad spending globally was reported as $25.14 billion in 2015, a 40.8% increase from 2014 (eMarketer, 2015). Because anyone with access to the Internet can create social media accounts, companies are able to create interactive conversation with consumers at little to no cost. Although companies may have a greater reach towards target audiences through social media, selecting the right individuals to relay the message to consumers is key in forming a positive reputation. These individuals are called social media influencers, whom can be identified as early adopters who have acquired positive message credibility that stem from experience and the strength of their ties with followers (Evan & Fills, 2002; Koo, 2015). The amount of experience and expertise an influencer has within an industry is directly related to the tie strength. Freberg, Graham, McGaughey, and Freberg (2010) identify influencers as simply “a new type of independent third party endorser who shape audience attitudes through blogs, tweets and the use of other social media” (p. 90). Influencers are known to spark conversation within a product market and engage in WOMM through their own creative content posted online. According to a study by Vision Critical (2013), 43% of social media users have purchased a product or service after liking or sharing a post. With a positive review from a social media influencer,
  • 9. 5 viewers are more inclined to buy a product or service, trusting that the opinion of the influencer is credible. The viewer then turns into a customer, and may potentially contribute to online conversations. Marketers are taking advantage of the value of relationship marketing by strengthening consumer-brand relationships with influencers, who are identified as key consumers. Besides choosing an influencer with expertise and credibility, public relation (PR) specialists and marketers strategically select influencers whose personalities, lifestyle, and image fit that of the brand or campaign (Uzunoglu & Kip, 2014). With influencer marketing, it is essential that the target audience of the brand and the selected influencer’s followers match. After a brand selects a social influencer, it is important that the influencer is familiar and has a relationship with the brand or campaign in order to yield “behavioral and/or attitudinal results” (p. 593). Engagement between brand and influencer is based on two key points: “the high relevance of brands to consumers, and the development of an emotional connection between consumer and brands” (Rappaport, 2007, p. 138). Public relation specialists or marketers of brands communicate with influencers in order to build a relationship and strengthen brand reputation. Uzunoglu and Kip (2014) state that one method of communication is when brands send out samples of a new, unreleased, product to influencers. Vivek, Beatty, and Morgan (2012) identify this notion of consumer engagement as connection and participation. The brand creates a connection with influencers by selecting them as early adopters of the product. Influencers actively participate in the product launch process by providing an initial opinion. In addition, brands show that influencers’ opinions are valuable to support consumer-brand relationships and gain customer loyalty. Other notions of consumer
  • 10. 6 engagement include co-creation, and cognitive and affective commitment (Vargo & Lusch, 2004; Mollen & Wilson, 2010). When influencers are involved in the creation of new products, they are given a clear association with the brand. Now, PR specialists understand the importance of influencer-brand relationships. The roles and responsibilities as PR specialists is to “recognize, understand, and satisfy the needs of the influencers who are critical to the visibility and ultimate success of a company or campaign” (Solis & Brakenridge, 2009, p. 272). As marketers understand the values of both experience and social media, it is only natural that the two strategies are combined. When influencers post event content on their social media accounts, followers may stir up conversation about the event by commenting, liking, or reposting. Social media platforms such as Snapchat, Twitter, and Instagram provide users virtual access to exclusive events (MediaKix, n.d.). To capture the full experience, companies encourage social media influencers to bridge the gap between brand and consumers through videos posted on YouTube or SnapChat (Cievents, 2015). Social media provides a way for online viewers to live vicariously through influencers. Generally, influencers report their experience at these events, and if it is a positive evaluation, brands may be better perceived by target consumers. In recent years, the cosmetic industry has been shown to be one of the top sectors utilizing influencer marketing. Fashion and Beauty Monitor (2016) claim that influencers play a large role in cosmetic marketing strategies such as crisis management, promotion and distribution, and events/webinar production. In addition, a study by the organization found that “69% of respondents say influencers play an important role in product launch” (p.14). While the future of influencer marketing may not be certain, it is necessary to
  • 11. 7 study the success and failures of well established companies that have organized special events specifically for social media influencers. According to MediaKix (2016), Revolve Clothing was one of the brands marketing at Coachella 2016, inviting various social influencers to their “Desert House” party. The fashion retail company aimed to increase sales and raise brand awareness by having social influencers post content regarding the party on social media. In return, the event accumulated more than 12,700 comments and 1,618,900 likes across several social media channels. Through social influencers, Revolve Clothing gained an audience of more than 30 million people during the Coachella 2016 weekend. Influencer marketing efforts have led to a more efficient method of brand exposure. Brands use events to connect with influencers, and in return, influencers communicate their experience with followers. From there, a positive opinion about the brand, product, or service is formed and as well as a potential purchase. This study used a comparative analysis approach to examine the effectiveness of selected influencer marketing events in the cosmetic industry. Purpose of the Study The purpose of this study was to examine the effectiveness of selected influencer marketing events in the cosmetic industry. Research Questions This study attempted to answer the following research questions: 1.   How do events affect a brand’s relationship with influencers? 2.   What methods of engagement are utilized at the selected influencer events?
  • 12. 8 3.   How do brands select specific influencers to attend events? 4.   What do marketing specialists use to measure the success of an influencer event?
  • 13. 9 Chapter 2 METHODS The purpose of this study was to examine the effectiveness of selected influencer marketing events in the cosmetic industry. This chapter includes the following sections: description of organization/s, description of instrument, and description of procedures. Description of Organization/s A comparative analysis was performed on the #YSLBlackOpiumExperience and #UDSummerNights influencer marketing events. Yves Saint Laurent (YSL) Beauty is a luxury cosmetic and fragrance brand headquartered in New York City with approximately 325 employees (Hoovers, Inc., 2016a). Urban Decay Cosmetics is a color cosmetic brand headquartered in Newport Beach, California (Hoovers, Inc., 2016b). Both brands are sold worldwide and are publicly traded companies under L’Oreal Paris. Yves Saint Laurent was founded in 1961 by the fashion designer himself and was initially a luxury fashion clothing brand (Global Cosmetic News, 2015). In 1971, the brand extended into personal care for men. In 2008, YSL Beauty debuted as a separate branch under L’Oreal Paris. It is at the higher end of L’Oreal’s premium segment and is perceived to be for older audiences, but young women in their twenties and thirties have also shown interest in the brand (Passport, 2012). Yves Saint Laurent Beauty (2016) offers a wide range of makeup, fragrance, and skincare products. Some of the best- selling products include the Mascara Volume Effet Fauc Cils, Touche Eclat, and Black
  • 14. 10 Opium. Although YSL does not offer an explicit mission statement, it claims to be “the most subversive Parisian couture brand” (L’Oreal, n.d., para. 1). Urban Decay (2016) was founded in 1996 by Sandy Lerner and Wende Zomnir. The two women believed that the products offered in the cosmetic industry at the time did not offer a wide range colors and seemed too conservative. Lerner and Zomnir then debuted Urban Decay with 10 lipsticks and 12 nail polishes. Zomnir claims that “the target Urban Decay consumers fits a lifestyle rather than a demographic” (Romanik, 2009, para. 2). In 2012, L’Oreal Paris acquired the Urban Decay, which resulted in a larger distribution channel for the brand (L’Oreal, 2012). Urban Decay offers eye, lip, and face makeup, which are widely known for their whimsical names. Some of the brand’s best-selling products include the Naked Palette and Eyeshadow Primer Potion. For the last 20 years, Urban Decay has strived to offer “beauty with an edge”. Description of Instrument The instrument utilized in this study was a best practices matrix developed by the researcher (see Appendix A). The matrix contained required event components that were gathered through recommendations in literature. The purpose of this matrix was to identify the key components surrounding each influencer event. The researcher separated the instrument into four sections: event overview, event experience, social media, and financials. The event overview asked for information such as event location, number of guests, event goals, and key influencers. The event experience section asked for specific examples during the event that involved each of the influencer’s senses. This provided an in-depth description of what the influencers experienced. The social media section asked
  • 15. 11 for basic statistics regarding social media platforms such as the number of posts, engagements, impressions, reach, and quotes from influencers regarding their experience at the event. Lastly, under the financial section, the earned media value (EMV) attributed to the selected event analyzed. According to RhythmOne (2016), “earned media value refers to the dollar value that can be attributed to publicity, social sharing and endorsement, and other unpaid digital media exposure” (p. 8). In order to measure financial success, the EMV of the month in which the events took place, as well as the two months after the event, were noted. Other information regarding brand growth were listed under notes. A pilot study was conducted on the Westfield “FASH BASH” campaign. This program differs from the chosen events because Westfield is not a cosmetic brand, but a fashion retailer. The event focused on driving sign ups and in store traffic rather than launching a new product (No Subject, 2015). However, the campaign had the same goals in marketing the brand through social influencers and creating online buzz. The best practices matrix was used on this specific event. Event though the event included key influencers, it was satisfactory for the pilot due to the fact that some details of the event were hard to find. Although content regarding the event was posted on Twitter and blogs, there were no extensive accounts of the event. After piloting, the researcher removed the sections regarding revenue and sales as it was difficult to get ahold of those figures since some companies do not make them available to the public. A notes section for other information regarding brand growth were listed under financials in order to provide more detail about the affect of the events on the brands.
  • 16. 12 Description of Procedures A comparative analysis was performed on the #YSLBlackOpiumExperience and #UDSummerNights influencer marketing events. The instrument utilized in this study was a case study checklist developed by the researcher (see Appendix A). The researcher began to gather information on the #YSLBlackOpiumExperience and #UDSummerNights events on May 13th , 2016 and ending on May 17th , 2016. These particular campaigns were chosen due to social media exposure, websites, and online accessibility of necessary documents such as social media reports. Each section was filled out to great detail, considering each stakeholder at the event. The instrument collected mostly qualitative data due to the nature of special events, in which each experience can differ. However, quantitative data was also collected for the financial section. Information for attendee experience was gathered through the websites of the agencies that produced each event and the social media posts of the invited influencers. Influencer Marketing Agency (IMA) produced the Yves Saint Laurent Beauty event and (No Subject) produced the Urban Decay cosmetics event. Basic social media statistics such as number of online impressions, social media posts, and engagements were also found on the agency websites. In addition, by searching the hashtags of both campaigns across social media platforms such as Twitter, Instagram, YouTube, and WordPress, the researcher gained a better understanding of each event. More information on social media statistics and brand financials were found from La Mode Monthly reports by Tribe Dynamics and annual reports by L’Oreal. In order to describe the success of each event, the earned media value of each brand was recorded for the month of the event, and the month after.
  • 17. 13 Chapter 3 PRESENTATION OF THE RESULTS The purpose of this study was to examine the effectiveness of selected influencer marketing events in the cosmetic industry. A comparative analysis approach was utilized to examine Yves Saint Laurent (YSL) Beauty and Urban Decay Cosmetics. This chapter includes the following sections: overview of events, event experience, social media, and financials. Overview of Events Yves Saint Laurent Beauty launched the #YSLBlackOpiumExperience campaign to promote the launch of the Black Opium fragrance. On September 25th , 2015, the two- part event was held in Amsterdam. First, VIP influencers were invited for a special dinner at the Hoxton Hotel, followed by a “rock glam” party at Pakhuis West with the rest of the influencers. Yves Saint Laurent Beauty, together with Influencer Marketing Agency, selected 15 VIP influencers as campaign ambassadors as well as 55 regular influencers to represent the brand and generate online conversation around the event. All influencers were from the region of Benelux, including the countries Belgium, the Netherlands, and Luxembourg. Key influencers included Noor de Groot and Giaro Giarratana. Urban Decay Cosmetics launched the #UDSummerNights campaign to promote the launch of the Naked Skin Beauty Balm and create online buzz using the hashtag. A special event, produced by No Subject, took place in May of 2014 at a private home located in the
  • 18. 14 Hollywood Hills. More than 50 influencers from the Los Angeles area were invited to the event, including Whitney Port and Amy Pham. Event Experience As mentioned in the overview of events, before the main party, YSL invited 15 VIP influencers for an intimate dinner and reception at the Hoxton Hotel. The space, called “The Apartment”, included a kitchen, living room and courtyard. The Apartment was quaint and cozy, as if the setting took place in someone’s own home. The décor of the entire space engaged the guests’ sense of sight. In the kitchen, the VIP influencers saw black, white, and grey tiles, marble counters, and rose gold accents. In the living room, they saw walls filled with framed photos with wooden floors. The dining set up had a very simple and neutral color palette, with candles to provide a dimly lit setting. Each VIP guest had a hand-written name card at their seat, along with a menu, a lily flower, and a bottle of the Black Opium fragrance. The VIP influencers were free to socialize and take pictures in the courtyard and kitchen before dinner was served. Each VIP influencer was given a goodie bag as a thank you and souvenir from the dinner. This engaged their sense of touch, as they examined each of the items in the bag. Since it was an intimidate dinner and no DJ was present, it is unclear whether or not there was music playing at the event. Sounds of chatter and dinner utensils filled the VIP influencers’ ears, engaging their sense of hearing. Then, VIP influencers were served a full meal in the living room, engaging in their sense of taste. The star of the dinner was a custom “Black Opium” cocktail that consisted of Grey Goose Citron, strong jasmine tea, lemon, orange blossom syrup, and dried jasmine flowers for garnish. The VIP influencers’ sense of
  • 19. 15 smell was activated by the aroma of food, cocktails, as well as the Black Opium fragrance itself. A couple of hours later, the #YSLBlackOpiumExperience at Pakhuis West begun with the rest of the influencers. The “rock glam” themed party resembled a night club, with multiple activities in addition to dancing. Engaging in their sense of sight, influencers entered the venue through a dark tunnel, lit with neon magenta archways. Near the entrance, was a YSL step and repeat banner to take pictures as soon as they got inside the venue. The majority of the venue was dark, occasionally being lit by strobe lights, party lights, camera flashes, and YSL signs in purple or magenta colors. Aside from other influencers at the event, everyone watched interpretive dancers throughout the night, who incorporated the Black Opium fragrance into their routine. For a hands-on experience with the YSL Beauty products and engagement through the sense of touch, influencers were able to get their make-up done or test the products out themselves at the vanity area. Here, influencers were able to play with different colors, shades, and looks. In another area, influencers could get a fake tattoo drawn onto their arms. A photo booth with props allowed the influencers to take pictures with friends, but also take home a personalized souvenir. Near the dance floor area, DJ Monsieur Moustache played electronic music. This engaged the influencers’ sense of hearing, prompting them to dance. As for taste, the drinks and finger foods were inspired by the Black Opium scent. To activate the olfactory senses, the Black Opium fragrance was present in every area of the venue. The fragrance offers nodes of coffee, vanilla, and white flowers. Urban Decay’s #UDSummerNights party in the Hollywood Hills gave influencers a view of the Los Angeles skyline. Influencers saw the sky go from bright to dark,
  • 20. 16 watching the city lights come out as the night went on. The private home gave an intimate experience, resembling a backyard party. The décor reflected a bohemian, southwestern style along with a modern look for the outdoor area. A backdrop was set up adjacent to the pool reading “UD Summer Nights”. Make-up artists were also at the event to test Urban Decay products on the influencers. In addition to trying out the new Beauty Balm and other products, influencers also had a hands on experience with partner companies at the event. Influencers were able to make their own personalized flower crown with Cult Gaia. Clothes by Whitney Eve and Vitamin A were on display for influencers to look through. Each influencer was also given an Urban Decay swag bag with products and samples take home. The music for the night was provided by DJ Sosupersam, playing mostly hip hop and R&B songs. Cocktails were provided by Veev Spirits, and featured Vivafrute lemonade, cosmopolitan, margarita and wine. Colorful finger foods and desserts were displayed including cheese boards, vegetables, hummus, cake pops, tarts, and mousse. No type of scent was specifically identified by Urban Decay or any of the influencers invited to the event. Social Media The #YSLBlackOpiumExperience and #UDSummerNights events were both featured on their respective brand’s social media accounts. In addition, both events resulted in influencers posting event content on the following social media platforms: Facebook, Twitter, Instagram, YouTube, and various blogging sites. During the #YSLBlackOpiumExperience event, professional footage was shot and edited into a post-event experience video that also served as personal clips for
  • 21. 17 influencers to share on their own channels. The photo booth and step and repeat at the event also gave influencers opportunities to create social media content. Majority of accounts were made via blog post and Facebook. Influencers for the YSL Beauty Event included Noor de Groot, who has 202,000 Instagram followers, and Giaro Giarratana, who has 181,000 Instagram followers. After the event, Influencer Marketing Agency reported a total of 392 influencer posts across all social media platforms created at the event. The posts resulted in a combined influencer reach of 15.4 million and 12.3 million campaign impressions. The posts also resulted in a total of 256.7 thousand engagements, including likes, comments, and shares. Lastly, Yves Saint Laurent saw an increase of 50,000 followers on the @YSLbeauty Instagram page. Frequent words and phrases that appeared on social media platforms regarding the event included, “amazing experience”, “connection”, and “prestigious event”. During the #UDSummerNights, the backdrop and swan float were the main opportunities for photos. Influencers for Urban Decay included Whitney Port and Amy Pham, who have 1.1 million followers and 407,000 followers on Instagram respectively. After the Urban Decay cosmetics event, (No Subject) reported a total of more than 480 influencer posts across all social media platforms created at the event. There was a total of 11.2 million impressions of the #UDSummerNights hashtag. Frequent words and phrases that appeared on social media platforms regarding the event included “fun", “had a blast”, and “ready for the summer”.
  • 22. 18 Financials In September 2015, the earned media value (EMV) for YSL was reported at $1,567,943. After the YSL event on September 25th , the EMV for October 2015 was $1,875,460. A month later in November, the EMV was reported at $783,742. The platform with the highest EMV for YSL during September 2015 was Instagram at $3,564,225 and Facebook coming in second at $310,220. The most recent La Mode Monthly reported YSL as the top fragrance brand with the highest EMV at $4,283,631. This list included brands such as Jo Malone, Viktor & Rolf, and Dior, to name a few. In 2015, L’Oreal reported the success of Black Opium resulted in a 18.4% increase in brand growth for YSL Beauty. In May 2014, the EMV for Urban Decay was reported at $3,542,472. After the YSL event in May, the EMV for June 2014 was $4,188,141. A month later in July, the EMV was reported at $1,909,007. The platform with the highest EMV for Urban Decay that month was YouTube at $1,909,007 and Facebook coming in second at $680,545. After the event, Urban Decay doubled its sales in two years, having the highest growth rate in L’Oreal’s Luxe division.
  • 23. 19 Chapter 4 DISCUSSION AND CONCLUSIONS With the development of social media, influencer marketing has recently become a highly practiced method of reaching consumers. Special events have been an important component in building relationships between brands and influencers. This concluding chapter will include the following: a discussion of the findings, limitations, conclusions based on research questions, and implications of the findings, and recommendations for future research. Discussion Face-to-face interaction and engagement can prompt influencers to speak more positively and more often about a brand to their followers. Unlike online communication, events provide brands the opportunity for a more memorable and intimate relationship with influencers. Garfield and Levy (2012) mention that building these value-based relationships can result in loyalty and trust. Events make influencers feel special, allowing them to experience a brand rather than simply communicating with a brand. The selected events demonstrated the essence of each company through engaging guests through sense of sight, touch, hearing, taste, and smell. For example, Yves Saint Laurent Beauty integrated elements of the Black Opium fragrance into cocktails and food served at the event. Urban Decay decorated the event venue to channel the brand’s edgy, modern image. Events help brands embody a brand’s mission, values, and goals an because of
  • 24. 20 this, are thought to leave a long lasting impact on influencers. Brands should continue to focus on event marketing efforts targeted towards influencer relationships. Events facilitate engagement between brands influencers. An upscale event such as #YSLBlackOpiumExperience, assured influencers that they are valuable to the company. Since Yves Saint Laurent (YSL) Beauty is viewed as a luxury brand, they should continue producing high-class events. While Urban Decay is not viewed to be as luxurious as YSL Beauty, the brand should create a more an upscale event that would further display the importance of influencers. However, Urban Decay did offer a sense of co-creation to Whitney Port, allowing her to showcase her boutique items at #UDSummerNights. Based on the findings of Vargo and Lusch (2004), Urban Decay should take advantage of co-creation and release a product in collaboration with a well- established influencer. With their strong establishment in the cosmetic industry, Urban Decay would not only benefit from the collaboration, but the influencer would also gain more exposure and credibility. The integration of multiple customer engagement methods at these events let to positive feedback on social media. Even though an influencer may not like a specific product, they may continue the support of a brand due to great customer service and history. The amount of brand exposure and the earned media value (EMV) from an event heavily depends on the influencers that get invited. Influencers determine who receive the message, and the amount of people that see it. Koo (2015) recognizes influencers as experts in their respective industries. As influencers build trust and credibility with their followers, the size of their following continues to grow. Although there were more guests in attendance at the YSL Beauty event, the Urban Decay event yielded more posts
  • 25. 21 on social media platforms. In addition, Urban Decay also saw a higher increase in EMV for the following month after the event compared to YSL Beauty. This may be due to the fact that the key influencers at #UDSummerNights had greater popularity and a significantly larger audience than those that attended #YSLBlackOpiumExperience. Brands similar to YSL Beauty should make it a point to invite a handful of high-status influencers to events in order to raise EMV. Earned media value can be useful in measuring the return on investment (ROI) of a specific event. However, the effect of EMV on product sales and brand growth is still unclear, although there could be a relation. Vision Critical (2013) claimed that 43% of social media users have purchased a product or service after liking or sharing a post. Although there is a positive relationship between YSL Beauty’s brand growth and EMV for 2015, there could be other factors contributing to brand growth other than EMV. Brand growth and sales may also be affected by the status of the economy, current events, and geography. Marketers should move towards perfecting the measurement of success while paying attention to the buying habits of customers persuaded by influencers. The biggest limitation of this study was the use of strictly online resources. Even though online resources are convenient, online case studies and annual reports may leave out important information valuable to the study. The L’Oreal annual report did not breakdown sales of it’s two subsidiary companies, YSL Beauty and Urban Decay. Instead, only a collective report including the rest of the subsidiary companies was available to the researcher. Another limitation was the selection of influencers used to draw out information about the events. The researcher reviewed about 3-5 influencers’
  • 26. 22 accounts of the events for each brand. The influencer’s social media posts may not represent the opinions or experience of all the attendees at the event. While the researcher had not used any of YSL or Urban Decay’s products, familiarity and current word-of- mouth regarding the two brands may have contributed to pre-existing bias, affecting the results of the study. This study aimed to examine influencer marketing-related events within the cosmetic industry. As influencer marketing is still a recent trend in marketing strategies, this study has shown broken down each event into smaller components, demonstrating how experience benefits consumer ties. Brands are able to broaden customer reach by forming working relationships with key consumers, called influencers. Although communicating with influencers electronically may increase brand loyalty, face-to-face interactions strengthen these bonds. This study also illustrated the key components of influencer events that drive conversation among potential customers. Through the research of event marketing and experience, recommendations were made for both of the events in the study on how to maximize the benefits from utilizing influencer events. Conclusions Based on the findings of this study, the following conclusions are drawn: 1.   Events engage influencers in all five senses, allowing brands to connect with their audience on a more personal level, and allowing influencers to experience the brand rather than know the brand.
  • 27. 23 2.   Methods of engagement utilized at influencer events include, but are not limited to, product trials, group photo opportunities, creative activity, and entertainment. 3.   Brands select influencers with high popularity, credible expertise, and a following that matches the brand’s target audience. 4.   Although a definite measurement of success within influencer marketing is still flawed, marketing specialists look to EMV, impressions, reach, and posts to evaluate success. Recommendations Based on the conclusions of this study, the following recommendations are made: 1.   The cosmetic industry should continue investing in influencer marketing events as it has been shown to be effective in reaching target audiences. 2.   Since YSL Beauty is viewed as a luxury brand, they should continue producing high-class events. 3.   To raise earned media value, YSL Beauty should invite influencers of high- status and popularity. 4.   Urban Decay should take advantage of co-creation with an influencer due to it’s strong establishment of 20 years in the cosmetic industry. 5.   To improve the strength of their relationships, Urban Decay can produce high- class event to show the importance of influencers. 6.   Influencer marketing specialists can close the gap in measuring the effectiveness events, by closely monitoring follower buying habits.
  • 28. 24
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  • 36. 32 Event Name #1 Event Name #2 Event Overview Date Location Number of Guests Purpose of Event Event Goals Key Influencers/ Number of Followers Event Experience Sight Touch Hear Taste Smell Social Media Number of Posts at Event Engagements Impressions Total Reach Notes/Quotes from Attendees Financials EMV Month Before Event EMV Month After Event EMV 2 Months After Event Notes