❓ Could 2 guys create a make-up brand ❓
📣 Jon Evans E.L.F. BEAUTY podcast is a must!
💰 E.L.F. BEAUTY founders did...it's a $10B empire
Kory Marchisotto CMO shares tricks to growing the brand
1. Know Your Market Gaps:
Cosmetics lacking in dollar stores. So they created premium products at $1 online - as no one was selling colour cosmetics online in 2004.
Emphasized having a good product isn’t enough— must invest in brand building.
Sought advice from network before starting, all said define a persona, stick to one, grow it. Her gut said no, it’s for everyone... and she was right!
2. Obsessed with Customers:
Stay close to consumer as you scale. The shorter/no distance, greater success:
1. Distance between C-suite and community
2. Distance between insight and action
Kory personally consumes 1,000s of reviews/comments weekly. Context, emojis, likes\dislikes in real-time.
Socials asking about Jamilla Jamile’s outfit in their commercial, so they share it.
Marketing has direct loop to community, take feedback right to innovation, website, or marketing teams.
3. Product is Key:
TikTok virals are about product reviews—product is key.
But a brand’s rightful position over the years must transcend the product to become a brand that people love.
4. Invest in Your Brand:
Marketing spend was 6% of revenue, and now 25% over 5 years (usually 25%-40%)
Reallocated $ from unprofitable retail to brand building.
Revenue $250m to $1 b in 5years.
Started with digital marketing, then added traditional media as brand grew.
5. First Mover on Social Platforms:
e.l.f. was OG in digital beauty space.
Early adopters of Instagram & TikTok. Playing on many platforms building communities to see where to place bets.
TikTok product reviews became commercials/ads.
The Infamous Primer used in cool ways. Chose the stickiest beauty icon + stickiest beauty product + right platform for the content = Superbowl ad.
50% of viewers were women but underrepresented.
6. Brand Collaborations Making Consumers' World Collide:
No need to create decks, sell into management. Used insights to identify disruptor brands on the same wavelength.
Chipotle: Early TikTok adopter, few brands there.
Liquid Death: On the same path to redefine a category.
Dunkin’: Consumers love both brands, reach more, and make worlds collide.
7. Eat Consumer Insights for Breakfast:
Insights at the heart of the business, no COEs collecting dust
Analytics distills daily info into insights for C-suite, leaders, & decision-makers. Feedback, reviews, performance to drive action in all areas.
Social insights: Gen Z consumers said their mums were stealing their e.l.f. makeup.
Built campaigns with influencers Judge Judy, Billie Jean King, and Jennifer Coolidge (60-80 years) to grow demographics.
Social feedback: Bronzing Drops being demanded as prestige brand launched but unaffordable.
CMO went to CEO, he jumped on TikTok live & 5,000 people screamed for Drops. CEO said OK, went to innovation lab & prioritized Drops.
Product is not enough. You need to create a brand.
In the 5 years since Kory Marchisotto the CMO of E.L.F. BEAUTY joined the business it has Quadrupled in size from $250m to $1billion
She said one of the critical reasons for that is investment in the brand
In 2019 when she joined they invested 6% of turnover into marketing and last year that had gone up to 25%
Why?
Because it's working she said.
To find why its working and how they do it listen to the latest episode of Uncensored CMO to hear her talk about the impressive marketing which helped lead to 22 consecutive quarters of growth and a valuation of over $10billion
This is one of the best challenger brands in the world right now
Links to the episode below
Kerry Collinge 🦍 🦊
spotify here https://open.spotify.com/episode/5Xq3qNzIoWwk9uNWU1PO8h