E.L.F Marketing Plan

1. E.L.F Cosmetics
09.04.20XX
─
Laura Walswick

2. 1
Table of Contents
1. Executive Summary
2. Campaign Background & Research
3. SWOT Analysis
4. Target Audience/Potential Market
5. Customer Profile
6. Marketing Goal, Objectives and Strategies
7. Creative Strategy
8. Points of Parity - Venn Diagram
9. Creative Statement
10.Rejected Statements
11.Creative Brief Questions + Answers
12.Promotional Mix/Communication Channels
13.Creative Execution
14. Conclusion
15. Reference Page

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Executive Summary
As many know, the makeup industry has been skyrocketing from the past decade by
providing consumers with new techniques and products to enhance their natural beauty.
E.L.F has not only raised from the first year that the company was created in 2004. With
having much success.
Background
It all began when Joseph Shamah and Scott Vincent Borba met at a party in the year of
2002. Joseph Shamah, 23 ,was a business student studying at New York University. Scott Borba,
31, was living in Los Angeles at the time and was a “beauty-industry veteran”. Just a couple days
after the party is when Joseph Shamah and Scott Borba got together and had a business meeting
about their idea. The inspiration behind the cosmetics line is from seeing women enjoying their
luxury lifestyle to then also buying cheap cosmetics at the dollar store. The two founders also
believed that women should not have to miss out on everyday life activities just because they can
not afford makeup. With the business meetings coming along and the inspiration image to put
forth in the company started the brand E.L.F. The cosmetic line was created in the year of 2004.
E.L.F is an American cosmetics brand that is based in Oakland, California. The brand only
started out with 13 products. Since then E.L.F has created more than 300 products (E.L.F. 2021).
Shamah and Borba’s mission is based around the saying of how beauty comes from
within. Following that statement, the brand wanted to really capture how to let the inner beauty

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shine through with their high quality cosmetics at a very valuable rate. E.L.F has become one of
the fastest growing beauty brands in America. With their vision being to always empower and
educate women with such an affordable price is what makes the brand stand out and differentiate
from the beauty industry in itself. With the brand standing for “elf is for every eye, lip, and face”
becoming a major hit, helped the company overall. The core values and vision that resonates
with so many women captured a hit in America that the company needed (Jacques R. 2016).
With the business aspect of growing the brand further, elf cosmetics became a publicly
traded company and was put in the stock market on September 22, 2016. The public offer price
for the cosmetic line started out at $17.00 per share. Since then, the year of 2021 the net sales
have grown to $318.1 million driven by ecommerce, international, and it’s national retailers. Full
Year Fiscal 2021 Review
For the twelve months ended March 31, 2021, compared to the twelve months ended March 31,
2020:
● Net sales increased 12% to $318.1 million, primarily driven by strength in e-commerce,
international, and our national retailers.
● Gross margin increased approximately 80 basis points to 64.8%, with benefits from
margin accretive innovation, cost savings, a mix shift to elfcosmetics.com, and price
increases partially offset by certain costs related to retailer activity and space expansion,
an increase in inventory adjustments, and the impact of tariffs on goods imported from
China.

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● SG&A increased $37.0 million to $194.2 million or 61.0% of net sales. Adjusted SG&A
was $165.1 million or 51.9% of net sales. The increase in SG&A was primarily due to
investments in marketing and digital, organizational costs related to building out the
Company's marketing, digital and innovation capabilities, and increased operational costs
mainly driven by the increase in e-commerce sales.
● The benefit for income taxes was $2.5 million.
● Net income was $6.2 million on a GAAP basis. Adjusted net income was $36.8 million.
● Diluted earnings per share were $0.12 on a GAAP basis. Adjusted diluted earnings
per share were $0.71.
● Adjusted EBITDA was $61.1 million or 19.2% of net sales. (Business Wire.nd)
Elf sells a variety of products for beauty. With a range from eyes, lips, face, to products
such as brushes, tools, and skincare. The brand did not miss a single category to be left out. With
that being said, who is elfs number one customer?Although elf is prominently women, to be
more specific, the elf's top customer is a female, hispanic woman who lives in a lower income
household. Diving deeper into the company’s top shopper, the range of age varies from the ages
of about 12 to mid twenties. So what is elfs consumer demographic like? Well the older
consumer with the age of 24 shops at elf typically because of its diversity and affordability. She
is also likely to have somewhat of a college education. Let’s talk about the difference between
the two different kinds of customers. The older customer in her mid 20’s eats at starbucks, is
influenced by her urban environment, and shops at Banana Republic. The younger customer

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would typically live in the suburbs with her family and shops at Ulta, Pacsun, and Forever 21.
(Fucci 2017).
With Elf being a major hit, you would think that it would come along with some major
competitors. Well it does. Some of elfs biggest competitors are NYX, Covergirl, and maybelline.
The cosmetic line NYX is just as accessible as elf but the difference with the two different
brands is that NYX holds a higher price point. Covergirl is and maybelline may be more
accessible than elf is but maybelline is at a lower cost rate and cover girl is a little more than elf.
Those three direct competitors are a massive indication on the company elf to help the brand
know when it’s time to step it up or to get an understanding on if the brand is where it needs to
be at that specific time. Just like elfs other competitors the cosmetic brands are typically sold in
stores such as Walmart, Target, CVS, etc. It also depends on where the product is being sold in
the store. For instance, if the product is sold in the back where no one really sees it than it will
not bring much value due to people not even seeing it. Now if the product is in the front where
all the consumers can see it, the product will have more of a chance to get noticed and be
something that the consumers are interested in. (Fucci 2017).
When it comes to promoting the brand, the company relies on it’s customers to do just
that. With digital marketing being such a huge impact in today's society, it is very important for
companies to lean into. When it comes to elf and how they choose to promote their brand, they
use it’s customers to do just that. Whether its instagram ads or social media promoting, the
customers are the ones to give their intake on the particular product and what it consumes. The

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company also uses an old school method which is email marketing. The brand has a membership
called Beauty Squad where you sign up using your email to get the first dibs on new products,
coupons, etc. And it allows you to cancel your subscription at any time you would like. With that
being said, E.L.F not only is transitioning into today's marketing but also keeping it old school
with the typical methods companies have used for years. ( Fucci 2017).

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Swot Analysis

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Target Audience
Potential Market
After researching Elf Cosmetics target audience I have found that the company’s audience
target base is more diverse of ages but is prominently women. The ages that the cosmetic line
targets are between women who are teenagers to women in their mid twenties. These particular
women’s hobbies consist of shopping, going to the mall, and going out to eat. The members of
the range in Elf’s target market would typically be born in 1996 and 2007. Although you could
consider ELF’s demographic as being in the genZ you also have an older audience that is a bit
more mature and has more life experience. At the age of 15 is when a girl is not old enough to
know who she is yet but has the mindset of thinking the same thing. Research shows that a
typical 15 year old girl tends to assert more independence for themselves. They also want to be
with their friends more often and start to peak interest in their romantic life (Morin 2020.). Along
with that, a typical 25 year old woman has just recently graduated college trying to find their first
adulthood job. The mindset of a 25 year old is still very confusing and stressful while trying to
navigate their role in today’s society (Katz 2016.). The average income the target audience
makes for ELFs cosmetics is around $20,000 (Morin 2020). Following that, the nationality of
ELFs target audience is mainly hispanic. We will also tune into and reach more of “affordable
shoppers'' While the company does an excellent job of making the products affordable to the
consumers, it does an excellent job of having the customers be loyal and come back to continue
to shop with the company. Like I said before the average income of our target audience is
roughly around $20,000 and the age range being 15-25. With that said, the company makes it’s
products reliable and affordable to its target audience. The million dollar question people ask a

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lot is why is it so cheap? Well, the reason for that is because the brand maintains that their close
relationships with suppliers and manufacturers abroad play a huge part in keeping their prices
low. They also don't rely on traditional advertising tactics to spread the good word of their
products — but this is not a tactic that is unique to e.l.f ( Anthony 2021). These young women
want to feel beautiful without spending hundreds of money on makeup products that you would
normally have to spend if you went to a high end makeup store. But with ELF, you get to save
money while still looking your best with great quality products to choose from. Along with that,
the company uses a strategy tactic that not most use. Their strategy tactic is by word of mouth
which can be on the more risky side but with having such a large company, ELF has made it
work thus far.
I selected this target audience because it is the audience that ELF uses but also
because it is the target audience I am most familiar with. It has been a couple years since I have
been 15 but I remember at that time how I felt and who I dreamt of being. With being a teenager
you start to dibble and dabble and try new things that you may or may not like. That also comes
along with trying makeup. I remember ELF was one of the very first companies I tried and what
caught my eye was that it was very affordable and seemed to be good quality. At the age of 15
you don’t have a full time job and thousands of dollars to spend on whatever you would like to
do so starting with ELF was the best way to go. And now switching to the present day I still love
the company. I felt as if the brand was growing up with me and the products just got better and
better. With that, I know a lot of young women that use the brand ELF and not only was I familiar
with the target audience that the company uses, I still am a part of that audience.

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Potential Consumer
Target Audience Profile
Meet Kaitlyn, the ideal customer for ELF Cosmetics.
Kaitlyn is 25 who goes on dates but is not quite ready to settle down yet. She is from San Diego,
California where she is a waitress at a restaurant. Her yearly income is around $26,000. While
also waitressing she goes to a local community college online for a marketing degree. While
Kaitlyn is responsible with her priorities she also loves to have fun with her friends and go out
and get drinks from time to time. She loves doing her makeup and finding the best outfit in her
closet for a fun night out. Her other hobbies that she likes to maintain are watching the show
Shameless, working out, doing her makeup, and going to the beach. Kaitlyn has one older sister
and two older brothers. When she was younger, her sister was the one to first introduce her to
makeup and what some good techniques are. Since then, she has loved to try new things and
learn more and more about the makeup industry. Not only is her sister her inspiration for
makeup but it would also be from growing up and watching Keeping Up with The Kardashians.
Kaitlyn has a close relationship with her family with keeping it one of her top priorities to always

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spend time with them. She and her sister have their own apartment not too far from where her
parents live but just enough space to enjoy her 20’s and be independent. After she graduates
from college she is deciding on taking on another two years at a university or wanting to try
something new.
Marketing Campaign Objectives and Strategies
Goal: To increase ELF Cosmetics's audience in young women to become regular customers.
Objective: To increase more target audience engagement on our website
● Research and find out what it takes for the younger generation to engage online
● Update the website and make it more relevant
● Find reasonable discounts for the customers to come back and be loyal
●Offer different types of surveys to know our target audience even more
Objective: To attract our target audience 50% more than we have before in the next 6 months
● Figure out what kind of social media our audience uses the most
● To branch out on Instagram, Tik tok, and Twitter for the more younger audience
● Collaborate and do a pop up shop at colleges for more of our older audience
● Put out more ads all throughout our platforms to have our audience more engaged

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Points of Parity
Rational Emotional

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Creative Strategy Statement:
E.L.F, for women to feel beautiful and elegant in their own skin.
Rejected Statements:
- E.L.F, a cosmetic line that is made for women to feel beautiful and magical.
- E.L.F, a company designed for you to make sure you feel beautiful.
- E.L.F Cosmetics, where you can feel comfortable and beautiful in your own skin.
Tag Line
“Beauty for all”
Creative Brief
What are we advertising?
E.L.F is advertising makeup products and skin care products that are simple with great
quality at a very affordable price. It is a cosmetic line to make everyone feel beautiful
and at a remarkable price. E.L.F is where you can find out who you are in your own skin
and at your own time.
Whom are we talking to?
We are mostly talking to females that are in GenZ. Also, the ages that we are marketing
to are 14 to 25 years old. These young women are currently living with their parents at

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home still in high school or women who just recently got some sort of degree and are
finding their first adult job.
What do they currently think?
Our customers currently think to believe in a higher outcome of life to where businesses
have a moral standpoint in what they are selling. They think that good can always come
from the bad and they believe in greater causes of simplicity and love.
What would we like them to think?
We would like them to think that our brand is made for everyone to feel the most
beautiful that they have ever felt. We would also like them to think that everyone is
welcome and wanted. To where everyone is loved and to believe in the morals and
standards that we hold upon our own company.
What Is the single most persuasive idea we can convey?
That our company is not cheap. It is of great quality and at a great price.
Why should they believe it?
They should believe it due to the fact that E.L.F has always put their customers first and
has never upped their prices no matter what their competitors do.
Are there any creative guidelines?

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There is no creative guidelines, as long as the company is continuing to come up with
new creative ways, we are always looking to reach our target audience in new ways.
Creative Piece
Social Media Marketing: I will simply be using social media due to the common factor
that, that is what most GenZers and the younger generation use daily. Social Media has
been the most used in over the past decade. Since 2008, Facebook has been used to
advertise and has then skyrocketed ever since then. Social Media can be used in all
kinds of different ways whether it is for personal use or for advertising and marketing
which is what I will be using it for, for my company. The typical time that teens spend on
social media is 8 to 10 hours. Now, if you know that information and use it to market
your company, that can be taken to your advantage to then promote my products and
market to the audience that is needed to be.
Email Marketing: I will be using email marketing to promote products and send out any
necessary information that our consumers would need to know. Although email
marketing is not to the extent as social media, it can still provide customers information
and also give them great deals. With email marketing, I will send out discounts that
others would not know about. It will also be used as a monthly subscription to where the

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consumers will find the best deals and be up to date on our newest products and
discounts.
Network Marketing: I will be using network marketing to form new clients and
investors. E.L.F has used “word of mouth” for years now. Although this technique is a
little outdated, it has always worked for E.L.F. With the strong reputation the company
has, with networking, it makes things much more simple. It can be provided as a
resource to be successful and resourceful.
Conclusion
Through all of the information given in this presentation, E.L.F has been more than
effective with their consumers. This company will uphold the most professionalism and
high standards that it has been to deliver for the past 17 years. With that being said,
E.L.F will always continue to put its consumers to their first priority and will continue to
prove the most top tier products and the best prices for young women to express
themselves in the most beautiful way.

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References
Davis, B. (2021, May 31). Home. Mvorganizing.org. Retrieved October 18, 2021,
from
https://www.mvorganizing.org/how-much-time-does-a-teenager-spend-on-social-m
edia/#:~:text=Teens%20spend%20an%20average%20of,which%20is%20still%20t
oo%20much.
Ortiz-Ospina, E. (n.d.). The rise of Social Media. Our World in Data. Retrieved
October 18, 2021, from https://ourworldindata.org/rise-of-social-media.
Fucci, E., & Elizabethfucci. (n.d.). E.l.f. Cosmetics. Retrieved from
https://issuu.com/elizabethfucci/docs/finalbook_elf_singlesheets
Jacques, R. (2016, May 04). How the Internet Became Obsessed With This One
Drugstore Makeup Brand. Retrieved from https://www.allure.com/story/elf-cosmetics-facts
E.l.f. Beauty Announces Fourth Quarter and Full Fiscal 2021 Results. (2021, May 26).
Retrieved from

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https://www.businesswire.com/news/home/20210526006046/en/e.l.f.-Beauty-Announces-Fourth
-Quarter-and-Full-Fiscal-2021-Results
E.l.f. (cosmetics). (2021, August 06). Retrieved from Whelan, E., & emilywhelan0. (n.d.).
Elf Makeup strategic initiative. Issuu. Retrieved October 11, 2021, from
https://issuu.com/emilywhelan0/docs/cariellod_finalbook_nontraditional.
Katz, L. (2016, October 1). What advice would you give your 25-year-old self? we asked,
you answered. Vox. Retrieved October 11, 2021, from
https://www.vox.com/2016/10/1/12430018/25-life-advice.
Anthony, C. (2021, July 22). Why is e.l.f.. so cheap? TheList.com. Retrieved October 11,
2021, from https://www.thelist.com/468468/why-is-e-l-f-so-cheap/.
https://en.wikipedia.org/wiki/E.l.f._(cosmetic

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