Kylie Cosmetics 90036 Final Folio

Zhexi Ji Student ID: 884992

Word count: 3938

Executive Summary

Kylie Cosmetics is a makeup brand started nearly two years ago. It was founded by the celebrity: Kylie Jenner. Kylie is well known because of the reality TV show Keeping Up with the Kardashians. By now, she is a very accomplished and famous young woman. Kylie successfully promotes her brand by making the most of her Internet fame, she did a great job in social media marketing and promoting. She keeps self-branding and draw public’s attention for her beauty brand. The controversy of Kylie Cosmetics also caused heated discussion via Youtube, virtually increased brand awareness. Yet, Kylie Cosmetics is tightly attached with Kardashians family and it kind of hurt the brand image. The major objective of the marketing communications strategy is to build brand identity. Marketers should try to adjust the segmenting and targeting strategy, continuously managing the social network accounts. Besides, there are few sales promotion strategies could do to further create brand image and increase brand loyalty. Thus, attract more consumers and prolong the lifespan of Kylie Cosmetics.

Table of Content

Executive Summary ……1

Part A ……2 Introduction……3 Self branding and reality show promotion……4 Social platform as a promotional tool……6 User-Generated Content of branding……9 Opportunities and issues……12 Conclusion……14

Part B……15 Segmenting, Targeting, Positioning……16 Creating Synergy between Social Media……18 Instagram, Twitter, and other Social Platform promotion……20 Sales Promotion……22 Conclusion……23

Reference……24

Part A

Introduction

Kylie Cosmetics is a very young brand founded by Kylie Jenner. Kylie started her business in 2016, after the global launch of her wildly successful liquid lipstick + lip liner duo, the Kylie Lip Kit. The Lip Kit was such a popular product welcomed by her fans that Kylie seized the opportunity to widen her make-up business. By now, Kylie Cosmetics created several product lines, including lipstick, blush, highlight, and eyeshadow. Kylie says that the collection of products that she and her team created is aiming to design the perfect ‘Kylie look’, and to give her customers that ‘Kylie make-up style’ (Kylie Cosmetics 2017). Kylie Cosmetics use several communications strategies to promote the brand, they rely heavily on social media and Kylie’s self-branding. Thus, the opportunities and issues of this brand are all worth a look.

The lip kit Duo (picture from KylieCosmetics.com)

Self branding and reality show promotion

There is one thing that makes Kylie Cosmetics quite different from other beauty brands. Although the brand was launched only less than two years, American people already knew Kylie Jenner more than ten years. Yet, Kylie herself is a famous brand. Kylie Jenner is only twenty-year- old, but she has been starring in the reality TV series Keeping up with the Kardashians since age nine. As a Kardashian, people know her as a celebrity. She constantly shows up in different big occasions, her image is widely used in fashion advertisements and she has a huge fan group on every social platform (Wikipedia Kylie Jenner 2017). An important part of Kylie’s life is to share her daily routine to her fans, she keeps posting moments on her social platform. In her social network account, we can see a mass of pictures and videos, in which Kylie wear Kylie Cosmetics products, talking about her brand.

Kylie’s own reality tv show LIFE OF KYLIE poster

It is a smart move, that Kylie Jenner uses her self-branding to promote her beauty brand. She brands and commodifies her original product: herself (Kayleen 2016). As Alison suggested (2008, p. 197), reality tv shows are part of the mainstream industries in Western culture industries now. A widely known reality show like Keeping up with the Kardashians, it already created narratives of self-branding and produced branded personae at the same time. Instead of mediate existing celebrities and the audience, the show creates celebrities, like Kylie (Edward, Jessica & Barbara 2013, p. 137). As a major character in the show, she kept talking about her brand on the show, her family members wear Kylie Cosmetics in the show, and now she even has her own reality show named Life of Kylie. Though it is reported that viewership for the current season of Keeping up with the Kardashians is continuing to fall, it still has 1.5 million views an episode (Braelyn 2017). Imagine how many people ever watched those shows and naturally knew Kylie Cosmetics. Kylie Jenner, her name is already a commodity, she is a form of property subject to market exchange (John Locke cited in Alison 2012, p. 199). Alison (2012, p. 198) also argues that “The function of the branded self is purely rhetorical; its goal is to produce cultural value and, potentially, material profit.” Through TV shows and continuously exposing herself in mass media, Kylie not only branded herself but also promote Kylie Cosmetics effectively.

Keeping up with the Kardashians Season 13 official poster

Social platform as a promotional tool

Another means of Kylie Cosmetics promotion is Kylie’s social platform. The number of followers of Kylie’s Instagram, Twitter and Youtube channel is 98 million, 23 million and 1 million. Kylie Cosmetics has its own social accounts as well, and the followers of its Instagram, Twitter, Youtube channel is 14 million, six hundred thousand and half a million. Obviously, Kylie, herself, is the main promotional tool for her brand on a social platform. Take Kylie’s Instagram account as an example, she posted lots of selfies and Kylie Cosmetics products’ photos. Nearly every photo is liked at least 2 million times and commented thousands of times (Kylie Jenner 2017). Her followers are familiar with Kylie Cosmetics because of Kylie. It should be noted that she barely posted no makeup photos, and it is also potentially advertisements for Kylie Cosmetics.

Typical Kylie Selfie ( picture from Kylie Jenner’s Instagram account, this photo was liked 3 million times by October 2017 )

Take a look at Kylie’s photos (especially selfies), she basically keeps a constant make up style: full lips with nude lipstick color, rose eyebrows, beautiful tanned skin tone, full coverage for her whole face to make it spotless, darker contour to enhance her cheek… Valerie and Andrea (2016, p. 1861) discussed that “selfies can be seen as a casual everyday life photography”, and it is “about staying true to the nature of what they are expressing”. By wearing Kylie Cosmetics and taking selfies, Kylie expressed the brand authenticity. Although celebrities’ photos have also been associated with some sorts of “calculated sincerity”, but the photos fully convey the message: if you buy Kylie Cosmetics and wear my product, you could be just like me. Besides, according to Schroeder (cited in Valerie and Andrea 2016, p. 1859), Photos and images, those “visual representative ways has circulated as part of a larger system of visual representation and consumption in a long time.” The selfies are typical representatives of image economy era since the pictures of Kylie are no longer pure images, they could create mass economic benefits.

Kylie with her fans (photo from thekyliejenner.com)

The followers of Kylie Jenner, are the major customers of Kylie Cosmetics. “The fan worship went so far as to inspire a social-media viral phenomenon” (Kayleen 2016), all her products sold out quickly that the customers have to wait for restocking. On eBay, the Kylie lip kit even had 48 bids on price $255 (Cheryl 2015). The devoted fans were actively engaging with the social network, thus the traditional ‘audience’ experience has transformed by convergent media (S. Elizabeth 2011, p. 510).

Kylie Jenner’s Instagram account and Twitter account snapshots

User-Generated Content of branding

As a celebrity, Kylie’s every move is heatedly discussed. Therefore, Kylie Cosmetics is eye- catching since it launched. Basically, every popular beauty blogger on YouTube bought Kylie Cosmetics and recorded review videos about her products. The most popular 10 YouTube beauty and style channels (ranked by the number of subscribers), half of them ever made at least one video of Kylie Cosmetics (Statista 2017). Let alone other YouTubers who have millions of followers like Jeffre Star and Tati. If you subscribe several beauty bloggers on YouTube, every time when Kylie Cosmetics release something new, you could see them all talking about it. In Web 2.0 era, it is common that beauty brands come to beauty bloggers and sponsor them making videos to promote their products (Michelle 2016). Kylie Cosmetics could not possibly sponsor every beauty blogger (since lots of them speak evil of the products) (Bren 2016), but the heated discussion certainly caught audiences’ attention. Even you are not a Kylie Jenner fan, if you do have some interest in make-up and style, you would hear about Kylie Cosmetics on YouTube, good or bad.

The most popular 10 beauty channel. Yuya, Zoella, Wengie, grav3yad girl and Nikkie ever posted a Kylie Cosmetics review (Picture from statista)

bloggers’ review videos of Kylie Cosmetics (picture from YouTube search results)

Beauty bloggers is a genre of user-generated content (UGC) on Youtube (Wikipedia UGC 2017). No matter how many followers the bloggers have, the videos they made are rich cultural artifacts, and the videos are also “serve as performances of identity, community conflicts and allegiances, community values, economy, and creativity” (Hector 2014, p. 2). According to Edward, Jessica, and Barbara (2012, p. 136), “web makes a mass audience potentially available to ordinary consumers,” and it is called the megaphone effect. Applying megaphone effect to Kylie Cosmetics’ case, it means that when audiences see the contents about Kylie Cosmetics, in the large chance they naturally become the potential customers of this brand. So to speak, Kylie Cosmetics promotion is not only benefited from Kylie Jenner’s reputation of her own social network, but also the spread heat on social platforms like YouTube. Nowadays, YouTube is the second biggest search engine behind Google (Troy 2016). The medium creates a bridge between the intended audience and the bloggers, accumulates contents of cultural capital (Edward, Jessica & Barbara 2013, p. 137). In beauty market, ordinary consumers generally lack professional bits of knowledge of make-up products, and most of them do not have the money and time to try every single new product. Comparing to traditional marketing communication tools, consumers identify social media like YouTube as a more trustworthy source of information (Karamian cited in Syed and Ishtiaq 2017, p. 48). Because the beauty bloggers are consumers as well, and the reviews they made are considered more reliable than the information created by advertisements and marketers (MacKinnon cited in Syed and Ishtiaq 2017, p. 48). Take me, an ordinary make-up enthusiast as an example. I use to watch my subscribed bloggers’ make-up videos on YouTube, check what product is a craze now. If most of them are talking about certain products (like Kylie Cosmetics birthday collection), then I will search YouTube for other bloggers’ opinion and evaluate the products from different angles. Maybe I will not buy it immediately, but the attitude towards the product and the brand is already shaped (or reshaped) during my watch. My consumer behavior is influenced by those beauty bloggers. Kylie Cosmetics as a hot topic of YouTube beauty bloggers, the mass audience, namely, the potential customers are engaged in the products promotion.

Opportunities and issues

Kylie Jenner acquires her fortune from her family’s reality TV show, her social media endorsements and appearances, and her namesake cosmetics company Kylie Cosmetics. According to Forbes Celebrity 100, she is the youngest member of the list, placed 59th by banking $41 million in the last 12 months (by July, 2017) (Hayley 2017). Kylie Cosmetics, ranked in $420 million in retail sales in 18 months. Sales for 2017 are $386 million, which make it possible that the company could earn a billion dollars by 2022. The sales growth of Kylie Cosmetics is rather fast. By contrast, it took L’Oréal’s Lancôme cosmetics brand 80 years to reach $1 billion in sales in 2015, and Estée Lauder Companies’ Bobbi Brown took 25 years to hit that number in 2016 (Julia 2017). Statistically, Kylie Cosmetics is a promising company. Does it mean that Kylie Cosmetics is on the right track and it does not have any problems at all? Certainly not. One major problem is the quality of Kylie Cosmetics products. Lots of customers complain about the lip kits because the products are inconsistent with the ad. The colors are different, and they are not long lasting. On Better Business Bureau (BBB, a nonprofit organization focused on advancing marketplace trust) website (Wikipedia BBB 2017), 56% of the Kylie Cosmetics customer reviews are negative. The complaints are concentrated on problems with product/service and delivery issues (BBB 2017).

Kylie Cosmetics review page on BBB.com

Here comes the second issue. Kylie Cosmetics are only sold online, it has no physical presence. Consumers have to wait for delivery, which causes complaints about the unstable delivery system. Also, consumers could not try it on before they purchase the product. The way they get in touch with the products is limited. The third problem is that as a very young brand, it has strong competitors like Fenty Beauty, recently launched by famous singer Rihanna. It became a hype because the foundation “offering 40 different shades and tapped into a palpable void in the market” (Marissa 2017). Fenty Beauty supporters even trolled Kylie Cosmetics Fans about its lack of inclusivity (Kari 2017). And the last problem, maybe the most serious problem among all, is that Kylie Cosmetics attached too close to Kardashian/Jenner family. Like a coin has two sides, the Kardashian fame brings attention to this brand, but Kardashians are equal to drama, hype, shallow in sometimes. It hurts brand image, because of Kardashians’ bad reputation.

Conclusion To sum up, Kylie Cosmetics has well development. However, the key issue of Kylie Cosmetics is that the brand image is not independent enough, it gets too close to Kardashian family and it is influenced deeply by the Kardashian fame. What Kylie Cosmetics could do is to improve their products’ quality, build their own brand identity and attract more consumers in the future.

Part B

As pointed out in Part A, Kylie Cosmetics is a quite promising brand. The brand is young and has great potential. Kylie Cosmetics is well known among the makeup lovers, but it also has many problems. The main issue is that Kylie Cosmetics brand image is largely built on Kylie Jenner herself. Most of the brand consumers are her fans, and the brand identity is tightly attached to Kardashian family. It has been nearly two years since the first launch of Kylie Cosmetics, beauty industry never lacks newcomers. When will consumers completely lost interest in Kylie Cosmetics and finally abandoned it? In this part, an integrated marketing plan is listed below. The objective of the plan is to build brand identity, inject vitality into this brand and prolong the brand’s lifespan, improve brand reputation (reduce the impact of Kardashians’ bad impact), and attract more customers besides Kylie’s fans.

Segmenting, Targeting, Positioning

As Sunil (2014, p. 2) puts, “the marketing process of segmentation, targeting, and positioning (or STP) identifies a firm’s potential customers, selects which customers a firm should pursue, and formulates its value proposition for its target customers.” In Kylie Cosmetics' case, the target customers are mainly Kylie Jenner’s fans. In order to broaden customer group, it is necessary to adjust the STP strategy. Segmenting One of the core elements of marketing is market segmentation (Jennifer and Christopher 2010, p. 183). According to Jennifer and Christopher (2010, p. 183, 185), the most commonly referred to is Kotler’s four variables, geographic, demographic, psychographic and behaviouristic segmenting methods. Benefit segmentation, usually regarded as the most meaningful form of segmentation, is a form of behaviouristic segmentation. Consumers choose a product from their intention to benefit something from it, in other words, perceived benefits are the key reason consumers choose a product or service. Kylie Cosmetics as a makeup brand, if segmenting their consumers with benefits, can make marketing communications more relevant, thus cost-efficient and more effective (Jennifer and Christopher 2010, p. 186). Women wear make-ups for enhancing or altering their appearance, they applied cosmetics to their face or body for beautifying and promoting attractiveness (Wikipedia

Cosmetics 2017). Consumers of Kylie Cosmetics buy products for the purpose of promoting their looks, not only for “get the exact same look as Kylie Jenner”. The segmentation of cosmetics market could be more specific like price (consumers who are looking for practical makeup), product quality (consumers who are makeup lovers), relationship (consumers who eager to chase the style of Kylie Jenner), collect value (consumers who are Kylie Jenner fans to purchase products for collection). Targeting Kylie Cosmetics currently focus on consumers who purchase products for the price (the price of Kylie Cosmetics is affordable) and relationship (Kylie Jenner’s fan). To broaden customer group, Kylie Cosmetics could select more segments to focus. As mentioned in part A, one problem of Kylie Cosmetics is the products’ quality. For those consumers who care most about the quality of makeups, to draw their attention, Kylie Cosmetics could put more effort in their product improvements. To be more specific, the star product of Kylie Cosmetics is the lip kit, but many consumers complained about its texture. What Kylie Cosmetics could do is to make the lip kit lighter, last longer, and less dry. In that way, even for those picky customers, they may willing to have a try. Besides, for those who collect makeups, if Kylie Cosmetics create something iconic and irreplaceable, they may have more interests in this brand. After all, have a fist product is way too important in the beauty industry. From classical Dior 999 to recent hit Smashbox Outloud, these products are the representative of their brand. Even the consumers barely purchase those brands, they still heard about them, which make them more likely to give a shot eventually.

Creating Synergy between Social Media Kylie Cosmetics has been promoting its products via social platform since it started. Using social media to interact with consumers is reasonable and effective. According to Syed and Ishtiaq (2017, p. 48), “social media is here to stay and therefore in future, marketers need to learn to coexist and communicate with an empowered customer”. Because of Kylie Jenner’s popularity among internet, in the future, Kylie Cosmetics should continue value social media marketing. But for the sake of brand equity and brand image, there are some improvements Kylie Cosmetics could make. Strategy of UGC User-generated content (UGC) is consumed by users, they created and shared contents on several social platforms like Twitter and YouTube. As discussed in part A, beauty bloggers on YouTube are considered trustworthy and credible, thus it has the ability to influence consumer behavior and the attitude towards the brand (Syed and Ishtiaq 2017, p. 49). In addition, cosmetics products are intended to enhance one’s appearance and alter the style, consumers are more likely to be involved in the purchase and usage process (Michelle and Hye-Shin 2008, p. 115). Those reasons claim the necessity of the importance of UGC. While consumers searching Kylie Cosmetics products on YouTube, there is a number of results. Kylie Cosmetics has its own channel to promote the brand, consumers feel connected to the brand by watching the videos. But what marketers further could do is to bring more beauty bloggers in the promotion. To be more specific, there are now only six videos in Kylie Cosmetics YouTube channel, one is Kylie Jenner with her half-sister Khloe Kardashian, one is Kylie with her friend, one is a makeup tutorial, and others are just plain ads. On the other hand, tens of thousands reviews and tutorials about Kylie Cosmetics from other beauty bloggers are full of search results list. Kylie Cosmetics doesn’t need to buy every single beauty blogger’s soul to say good things about their products, but it may be helpful if Kylie invites some bloggers to share their feelings about the products in Kylie Cosmetics official channel, face to face, with her. It could show the consumers how she is confident of her products, and it could express the honesty and the efforts that she wants to communicate with the consumers. Besides, it will be practical if Kylie Cosmetics channel posts more official tutorials. Consumers could watch it and know immediately what they could appear after they apply Kylie Cosmetics products. In this way, consumers not only hear about beauty bloggers talking about the products, they could gain more information from an official brand platform as well. Lots of beauty brands fully use their YouTube channel to communicate with their

18 consumers, for instance, Charlotte Tilbury, MAC Cosmetics and Armani beauty all update videos regularly and post several tutorials of their products, not only the ads. Those brands mentioned above all have fewer followers than Kylie Cosmetics, so imagine what Kylie Cosmetics official channel could change if they actually manage the channel orderly.

Instagram, Twitter, and other Social Platform promotion

In web 2.0 era, more and more companies create brand fan pages on social media. The brand fan pages aim to unite brand fans and provide platforms for consumers to share their enthusiasm about the brand (Denitsa, Jan & Brian 2017, p. 680). Companies have the opportunity to “release interactive promotional content and gain insights on consumer behavior” on social media. Likewise, “consumers derive social as well as functional benefits, which increases their engagement and stimulates the co-creation of value” (Denitsa, Jan & Brian 2017, p. 679). According to Lisette et al. (2017, p. 272), “more than 50% of social media users follow brands on social media, and approximately 20% of all Tweets contain a brand mention.” Kylie Cosmetics created its brand pages on Instagram, Twitter, and Facebook, marketers should continuously use those platforms as a tool to maintain consumers’ attention and enhance brand image (Jinghyun, Jaewook & Rebecca 2017, p. 380). Still, for brand’s long-term development, there are few things marketers could do. On the one hand, the manager of those social accounts should interact more actively with the followers. Take Instagram as an example. After buying and applying Kylie Cosmetics products, many consumers would take pictures then post on their Instagram account with the hashtag Kylie Cosmetics (#KylieCosmetics). Official Kylie Cosmetics account could “like” the posts or pick the beautiful ones and repost them. This approach increases the interaction with consumers and encourage consumers to engage more in the buying-sharing process, help to build brand loyalty. Furthermore, it stresses the authenticity of Kylie Cosmetics, the brand seem to be more reliable and close to customers. On the other hand, Kylie Cosmetics' positioning is quite limited now. One of the reasons is that Kylie Jenner, as a Kardashian/Jenner, is a controversial public figure. And the image of Kylie Cosmetics is influenced by her. To a large extent, when consumers hear about Kylie Cosmetics, they naturally related the brand to Kardashians family and the drama and so on. To build brand identity, other than Kylie’s family member and her friends, Kylie Cosmetics could cooperate with more celebrities. Actors, singers, writers… Cooperate with the representatives of different professions. Post photos of different professionals wearing their products on the social network, it

20 could convey a message to the social media users: Kylie Cosmetics is not only a fad, it is not a game for a young and rich girl. Kylie take it seriously and other celebrities are also supporting this brand. To do so, enriching the image of Kylie Cosmetics, then attract more consumers getting to know the brand.

Sales Promotion

By now, Kylie Cosmetics products only sold at KylieCosmetics.com. There are no other retailers for sale. It is very inconvenient for consumers since they can not actually try the product on before they purchase it. Kylie Cosmetics may not need to open their own physical stores, but it could be better if they enter chain stores like Sephora and MECCA. When consumers shopping around those cosmetics stores, they are originally interested in beauty brands or looking for something. The chance is rather high when they walk through the Kylie Cosmetics counter and randomly try something on. Moreover, Kylie Cosmetics doesn’t have a membership system. If consumers could automatically join the membership and get a discount after the first purchase, it would encourage them to buy more Kylie Cosmetics products as well. What is more, Kylie Cosmetics could broaden their product line, introduce more products into the brand. Currently, Kylie Cosmetics products are categorized as brushes, highlighters, lip kits and eyeshadows. There are many beauty products left. Provide more products could attract more consumers with different needs, it could help brand targeting and positioning as well.

Conclusion

Facing the opportunity and challenges, Kylie Cosmetics should still working on the social media platforms to promote the brand. At the same time, marketers can focus on how to broaden consumer groups and attract more consumers to the brand. By entering chain stores, starting a membership system and introducing more products in Kylie Cosmetics, Kylie Cosmetics may achieve the goal, which is build vivid brand identity and prolong the lifespan of the brand.

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