Decision Sheet: SUGAR Cosmetics – Employee Influencers and
Channel Conflict
Facts:
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SUGAR Cosmetics, an Indian premium brand, faced revenue loss during the COVID19 lockdown in April and May 2020.
Offline channel revenue dropped to zero in April 2020, recovering to INR 9 lakh in
May 2020.
Overall revenue (online and offline) declined by 94% to INR 62 lakh in April 2020,
partially recovering to INR 2.3 crore in May 2020.
Beauty advisers independently used TikTok for makeup tutorials and product reviews,
contributing to a revenue of INR 2.2 crore in June 2020.
Problems:
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Sudden revenue loss during the COVID-19 lockdown.
Uncertain prospects for the cosmetics industry due to the new normal of periodic
lockdowns, social distancing, and mask usage.
The challenge of maintaining revenue generation, especially in the offline channel.
Problem Statement:
How can SUGAR Cosmetics capitalize on the success of beauty advisers' TikTok initiatives to
sustain and further enhance revenue, especially in the context of the ongoing challenges faced
by the cosmetics industry?
Criteria:
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Maximizing revenue generation.
Leveraging social media and influencer marketing effectively.
Maintaining brand consistency and image.
Adapting to the new normal and potential future challenges.
Alternatives:
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Expand TikTok Initiatives:
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Increase investment and support for beauty advisers on TikTok.
Encourage the creation of more engaging content to drive sales.
Monitor and analyze the impact of TikTok initiatives on revenue.
Diversify Social Media Platforms:
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Explore other social media platforms suitable for makeup tutorials and reviews.
Invest in training beauty advisers for content creation on various platforms.
Develop a comprehensive social media strategy.
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Offline Channel Reinforcement:
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Incorporate TikTok success into offline strategies.
Train beauty advisers for in-store events and promotions.
Enhance the integration of online and offline channels.
Customer Engagement Programs:
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Establish loyalty programs to retain customers.
Encourage customer-generated content on social media.
Leverage user-generated content for marketing.
Analysis:
In assessing SUGAR Cosmetics' scenario, the strengths lie in the quick revenue recovery
facilitated by the TikTok initiatives, showcasing impressive employee engagement and
adaptability during challenging times. However, potential weaknesses include a current
dependency on TikTok, a lack of a formal strategy, and the challenge of sustaining offline
channel recovery. Opportunities arise from exploring diversified social media platforms,
investing in enhanced training for beauty advisers, and integrating online success into offline
strategies. Threats encompass platform risks, potential competitive responses, and challenges
stemming from evolving post-pandemic consumer behaviors. The decision table analysis
indicates that prioritizing the expansion of TikTok initiatives aligns with the criteria,
maximizing revenue generation, leveraging social media effectively, maintaining brand
consistency, and adapting to new challenges.
Conclusion:
In conclusion, SUGAR Cosmetics' journey during the challenging times of the COVID-19
pandemic underscores the resilience and ingenuity of its beauty advisers. The unexpected
success of TikTok initiatives not only resuscitated revenue but also highlighted the potential of
employee-driven influencer strategies. The decision to prioritize and expand these initiatives,
while continuously monitoring their impact, aligns with the dynamic nature of the cosmetics
industry and the evolving preferences of consumers. By exploring synergies across social
media platforms and integrating online success into offline strategies, SUGAR Cosmetics is
poised to navigate uncertainties effectively, demonstrating adaptability and strategic foresight
in the ever-evolving beauty landscape.
Recommendations:
To enhance the success derived from TikTok initiatives, SUGAR Cosmetics is advised to first
expand and invest further in these endeavors orchestrated by beauty advisers. Concurrently,
there should be a vigilant effort to continuously monitor and meticulously analyze the impact
of these TikTok initiatives on the overall revenue landscape. Exploring synergies between the
triumphs witnessed on TikTok and other social media platforms is recommended, fostering a
comprehensive strategy that diversifies the brand's online presence. Furthermore, the
integration of the achieved success on TikTok into offline strategies is crucial, ensuring a
balanced and adaptive approach to maximize the overall impact on revenue and brand
positioning.