Colourpop Company Analysis

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Colourpop Company Analysis

Introduction

Colourpop Company was established in 2014 by siblings Laura and John Nelson and has its headquarters in the upscale city of Los Angeles. Established as a social media system used to sell the cosmetic products, the company created its first social media account on Instagram, which has a following of over 2.2 million now. The organization`s objective is to become a leading retailer by creating as many shades and variety of products as they possibly can to satisfy the every need of their consumers. It is with this vision that the organization has developed a system of communication with their customers to get their views and preferences first hand. The products are mainly make-up items such as lipstick, eyeshadow, and face powders. The items vary in prices to cater to the different consumer economic capabilities.

Target market

The company targets make-up users as their main customers, who may be either male or female although a higher percentage of the target market is women (Safko 112).

The organization strives to ensure that the product prices are appealing even to the low-income earners, thereby ensuring there is a product for everyone. In this case, individuals from the low, middle, or upper class can each find a product that is of quality and affordable to them. Advertising mainly through Instagram has attracted a large number of young adults who may decide to purchase due to peer pressure or popularity. Once a product goes viral, there are higher chances of increase in sales volume of the product. It also enables them to advertise and sell the merchandise to individuals from other geographical locations. 

Analysis of company website

The organization developed a website that is colorful and displays an array of the company products as samples and on models.

The website is accessible on various gadgets such as smartphones, iPads, and laptops and orders can be made while using these gadgets (ColourPop). Customers who are highly impressed by the products have the option of sharing details about the product on the social media channels. The website is organized according to the categories of products and details on how they are applied or used. It also contains sections that incorporate all the information an individual may require regarding the organization or any of the products on sale.

Social Media Platforms

Currently, the organization has a presence in a number of social media platforms through which it uses to advertise and sell its products. Although the organization begun with Instagram as its main channel, it has expanded to using other social media platforms such as Facebook, Twitter, Pinterest, and you tube (ColourPop).

These social media platforms allow the organization to not only avail photos of the products, but to also post videos demonstrating how the different products are used. This has led to an increase in sales since most of the customers have access to material that shows them how to use the products.

Social Sites not Being Utilized

There are a number of social sites that the organization has not used, such as Google Plus and LinkedIn. These two are widely used by individuals all over the world on a daily basis, and it would be of great benefit if the organization would consider using these them. Google plus is a social network used to communicate using an email address. According to statistics, the site is accessed by over 250 million new individuals every month (Macy, Beverly, and Teri 132). Google plus a new product in the market and has realized a fast growth in the number of users, which is a clear indication that it can be a good platform for the company.

On the other hand, LinkedIn is a professional network where individuals and organizations can interact, share ideas, and advertise products and services. Colourpop can take advantage of this social networking website for advertising, which would guarantee increased sales. Individuals can also interact with top management officials from different organizations who can in turn become mentors to those who need guidance in pursuing their career goals. The high number of traffic generated by the site could further aid in marketing the products of the firm.

Company in the news

The firm has been on the media spotlight not only for its success but also for its failures, bearing no authentic origin story; the organization was put to a question on the nature of its origin. Having only launched on a social media platform that has been a new concept and understanding the reasons behind its fast growth was the key factor behind the inquiries (Collier 221).

Other entities concluded that the cause of their fast growth was due to the innovative marketing strategy the management used, the quality, and pricing of the products. Bloggers and competitor reviews have had different effects on the sales and company as a whole. Critics recently questioned the contents of the products Colourpop developed, and the conditions under which they were developed and tested. Due to these inquires, the organization was forced to disclose the contents of every product on the website. This was to ensure the customers of the safety of its products and create a good rapport with them.

Crowdsourcing and customer created content

Colourpop, like every other organization, has fans and individuals or firms that are against it, who come in the form of bloggers, competitors, or other social media outlets. Consumer blogs or bloggers are the contemporary society`s medium through which they express their experiences or concerns with different products or companies. Since its inception, Colourpop has had its share of good and bad reviews from different bloggers and consumer blogs.

 Different individuals and competitor firms have tested and posted reviews for different products they purchased. The reviews have had different effects on the various products sold by the company. Some reviews have led to an increase in purchase of the product while other reviews have done the opposite.

Uncertainty behind the individuals or corporation that was financing Colourpop came into question leading to its appearance in the local dailies. The organization’s management was forced to clarify the matter, which did not significantly change the belief that had been created by widely known and mysterious organization “Illuminati” (ColourPop). There have also been product reviews done by television programs that sample make up options and newspapers articles have been written about the company. Amidst all these challenges, the organization has realized a constant increase in revenue and popularity.

Current Season’s Promotional Campaigns

During promotional campaigns, the firm uses various channels to communicate the details of its promotions to its customers. The products are displayed using various pictures and forms on social media.

At the same time, the promotional message is also displayed in or under the photos posted on social media. With the current advancements in technology and business relationships, it is possible to simultaneously post the same photo on different social media platforms. The organization has taken advantage of this enterprise and linked all its social media platforms, which has allowed it to post simultaneously on Instagram, Facebook, and Twitter.

Colourpop has also used other media services such as print media and radio stations to popularize its campaign. In a bid to encourage individuals to shop, they launched a strategy where customers enjoy discounts according to the purchases they make. Customers who have subscribed for regular updates on upcoming promotions are sent the information via email or text messages. Colourpop also produces newsletters and distributes to customers while delivering their orders. The organization goes further by advertising its products on print media and video advertisements. The campaign can be considered successful, as there was a rise in the number of followers on Instagram and Facebook. There was also a rise in the demand for the products in other states, which inspired the company to start offering the products there. In a bid to promote its products, the firm has developed catalogues and magazines that contain all the products available from the seller. Readers of these magazines are also able to get discounts through shopping vouchers (ColourPop).

Social Media strengths

The organization has realized a number of advantages and benefits while using social media to market their products. The channel is fast and provides a direct link to customers and potential buyers (Ferrell and Michael 334). Using Instagram as a medium for advertising has enabled the organization to reach a wide variety of potential buyers from different parts of the country. The medium allowed the organization to showcase its products and allowed customers to make orders via the site. This feature was one of the main reasons behind the success of the organization.

The site gave shoppers the opportunity to view and order products from the convenience of their phones, laptops, or iPads. This means that orders could be made while at school, work, or in the middle of a class or a break. The main target market, teenagers and young adults, who are more conscious of their appearances and spend a significant portion of their income on leisure, have played an important role in the growth of this company. One of the major advantages of using social media for marketing is the cost effectiveness of the medium (Schaffer 243). Social medial sites are normally free to register and own an account, which can be used for marketing purposes exposes the product to a wider customer range at no cost to the firm. The feedback obtained also assists the organization to improve the quality of its products.

Interacting with the customer on a daily basis through the social platforms has greatly improved the brand of the organization. Responding to customer inquiries and developing the products they desire has increased customer loyalty because some of the clients consider this act as a show of good faith (Hajli 88). Using social media also increases the brand visibility in which the company can get more new clients. The main aim of carrying out a promotional campaign is to increase potential customers` awareness of the company and its products. Every opportunity the organization gets to syndicate its contents and increase its visibility is valuable. In addition, advertising using social media has the ability to reach many individuals since other individuals or entities can further share the information posted on their accounts with their friends. This means that if a product or service that is widely popularized through social media has the ability to reach the intended market through information sharing.

Social Media Weaknesses

Using social media has a number of weaknesses because products are subject to criticism from users or individuals who are able to access the site. Regardless, if the individual has used the product or not, the reviews or views given have an effect on the sale of the product. The second weakness of this medium of communication is that it is only limited a specific age group, whereby, it is only popular among the youths and young adults (Emi 212). This is a major hindrance, as the older clients may feel left out. In addition, the company may miss on potential growth strategies that would have been possible if it included all the age groups.

Furthermore, it is only available to individuals who have gadgets that have access to the internet. This limits the number of potential customers the firm is able to reach. Consumers who have the ability to purchase but cannot access the social media platforms may not be aware of the products the company has. Without social media, the firm would only generate traffic from customers who have already purchased one or more of their products.

Another disadvantage of using social media lies in the time taken to update the accounts. Colourpop has a wide variety of products all with different shades of colour, and advertising using a platform like Instagram would mean that the company would have to upload pictures of the products one by one, which is time-consuming. The platforms also require commitment once an organization decides to adopt it. Frequent maintenance on the site has to be done without which buyers may decide to shop elsewhere. Apart from being time consuming and requiring a lot of time for updating, some customers may post reviews that the firm cannot delete from the social sites. It is imperative than an organization gains control so that such situations do not occur because bad news has the capability of going viral very fast, which may harm the reputation and performance of the organization (Shankar, Venkatesh, and Gregory 311).

There are also limits to the number of words that can be posted on social media websites such as Facebook, Twitter, or Instagram, which limits the size or type of message that can be transmitted through those mediums of communication. Finally, there is the risk of hackers who may gain access to the company accounts with the intention of exposing or leaking information the organization considers private and confidential, as such holding social media accounts is considered as a risk.

4-week promotional campaign

A promotional campaign for the organization would be solely for increasing sales. The main goal of the organization is to reach as many potential customers as possible and to sell as much product as they can. For a promotional campaign to be successful, the organization should consider advertising through social media platforms such as Instagram, in which it has the most customer attention. Facebook can also be used to popularize a promotion as it is also increasingly becoming popular among the company’s clients.

The medium can be used to communicate the information using pictures to pass the details and videos to demonstrate how the products are used. Instagram is only limited to photos, short videos, and small pieces of information. Furthermore, the organization has the option of employing Twitter as a means to advertise (Bowen, Gordon, and Wilson 112). Using Twitter is simple, and it has the capability of reaching a wider audience than most social media sites can. Colourpop can also use its website to advertise any promotional campaigns that would encourage online shoppers to purchase the items on discount.

The management of Colourpop should consider, during the planning process, the system or procedure that can be used in marketing the publicity campaign. They should outline the medium that will be used as the main source of information. For example, Facebook, Twitter, and Instagram can be used to raise awareness of the company and its products by posting pictures and giving brief information about the company. The information should contain the company website from which inquiries and purchases can be made. Other mediums such as television and radio adverts can also be used as a marketing tool to promote the organization.

Television and radio have been, for a long time, the most effective means of communication and captures the highest percentage of recipients (Zarrella 212). Advertisements in local and international newspapers would also further the efforts of increasing the company`s client base and revenue. To evaluate the success of the campaign, the firm can analyze various dynamics in the performance of the organizations, these include analyzing statistics on sales volume, new followers on Instagram, Twitter or Facebook, increase in revenue or the number of visits to the website.

Conclusion

Colourpop, an organization that was founded in 2014, has risen to become one of the most popular cosmetic brands in the country. Its fast rise to the top can be attributed to the marketing strategies that the management employed. Previously, advertising through social media was not considered as a major or suitable means of advertising, but the company has proven otherwise. With the rise in levels of technology, the dependence on gadgets for daily communication and livelihood, advertising through social media has become a strategic decision of most organizations. Colourpop uses social media advertising in a bid to attract the large number of users who visit the sites daily. There are various benefits and weaknesses of engaging social media as a promotional tool. Using social media is very cheap and can reach a wide audience, and enables the firm to have a one-on-one interaction with customers. The risks involved include bad publicity or reviews that require commitment and is time-consuming and lastly, it is susceptible to hackers who may gain unauthorized access to steal or leak private company information. Finally, when planning for a promotional campaign, it is imperative that management decides on the channels of advertising to be used according to their effectiveness and efficiency. A decision has to be made weather to use print media, video, audio, or picture messages. Depending on the intended recipients, the organization can determine the means to be used. Evaluating the success of a promotional campaign is done by analyzing the sales volume, new followers or traffic generated by the organizations website.

Works Cited

Bowen, Gordon, and Wilson Ozuem. Competitive Social Media Marketing Strategies. Hershey, PA: Business Science Reference, 2016. Print.

Collier, Mack. Think Like a Rock Star: How to Create Social Media and Marketing Strategies That Turn Customers into Fans. New York, N.Y.: McGraw-Hill Education, 2013. Print.

ColourPop. N.p., n.d. Web. 25 Apr. 2016.

Emi, Moriuchi. Social Media Marketing: Strategies in Utilizing Consumer-Generated Content. Business Expert Press, 2016. Print.

Ferrell, O C, and Michael D. Hartline. Marketing Strategy: Text and Cases. Mason, OH: South-Western/Cengage Learning, 2014. Print.

Hajli, Nick. Handbook of Research on Integrating Social Media into Strategic Marketing. Hershey, PA: Business Science Reference, 2015. Print.

Macy, Beverly, and Teri Thompson. The Power of Real-Time Social Media Marketing: How to Attract and Retain Customers and Grow the Bottom Line in the Globally Connected World. New York, N.Y.: McGraw-Hill, 2011. Print.

Safko, Lon. The Social Media Bible: Tactics, Tools & Strategies for Business Success. Hoboken, N.J: Wiley, 2012. Print.

Schaffer, Neal. Maximize Your Social: One-stop Guide to Building a Social Media Strategy for Marketing and Business Success. Hoboken, N.J.: Willey, 2013. Print.

Shankar, Venkatesh, and Gregory S. Carpenter. Handbook of Marketing Strategy. Cheltenham, UK: Edward Elgar Pub, 2012. Print.

Zarrella, Dan. The Social Media Marketing Book. Beijing: O’Reilly, 2010. Print.

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