From Selling $1 Lipstick to Generating $1B in Sales, Beauty Brand Earns Fastest-Growing Company Spot
As a progressive brand strategy example, e.l.f. Cosmetics excels on every measure, from Gen Z customer loyalty to business results to social action. According to Marketing Week,
“Beauty brand e.l.f. – an acronym for eyes, lips, face – has emerged as one of the fastest-growing, most consumer-savvy brands of the last decade.”
With a tagline of “We are for every eye, lip, and face,” its mission is to make beauty accessible to everyone by:
- Making affordable high-quality products
- Encouraging self-expression
- Connecting communities
- Empowering others
- Disrupting norms
- Celebrating diversity
- Shaping culture
These core principles are the foundation of its brand strategy.
Since its founding in 2004, e.l.f. Cosmetics has grown into one of the fastest-growing beauty brands in the United States, becoming the go-to brand for Gen Z. Self-described as “Bold disruptors with kind hearts,” e.l.f.’s popularity has skyrocketed over the past few years, with the brand achieving 22 consecutive quarters of growth and delivering over $1 billion in net sales, up 77% in Fiscal 2024. With its stock up more than 1500% in the past five years, e.l.f. is also the fastest-growing company listed on the New York Stock Exchange over that time.
How did it become such a successful brand in such a short time? Let’s take a look at how e.l.f.’s brand strategy has helped shape and maximize its brand value and driven this impressive growth.
Brand Strategy Example: Understanding the Market
e.l.f. Beauty started with a solid grasp of its target market. It spotted a market gap: the demand for top-notch makeup at wallet-friendly prices. This insight influenced its product development and marketing strategies, making its products appeal to a broad audience. By catering to this need, it quickly became a favorite among budget-conscious beauty fans.
And by staying attuned to what consumers wanted, e.l.f. continually updated products to keep pace with market trends.
Brand Strategy Example:
Mastering Social Media for Visibility and Engagement
Platforms such as Instagram, TikTok, and YouTube serve as stages where e.l.f. showcases products and interacts with followers. One prominent campaign was the #eyeslipsface TikTok challenge, which invited users to create short videos using e.l.f. products. The result? Massive user-generated content and over four billion views! By tapping into the creative output of its audience, the brand significantly boosted brand visibility, increased engagement, and created a strong community. But it didn’t stop there. e.l.f. even ventured into streaming and gaming platforms, becoming the first major beauty brand with a Twitch Channel targeting female gamers with its Game up Campaign, and its E.l.f. Up!, Roblox experience took users through the process of creating “dream startup” businesses that represent causes or subjects they care about.
Through these innovative approaches, e.l.f. continues to capture the hearts and minds of beauty enthusiasts everywhere.
Brand Strategy Example:
The Power of Influencer Collaborations
By collaborating with influencers – whether beauty gurus or micro-influencers with dedicated followings — e.l.f. taps into the trust and admiration these influencers have built with their followers. For example, the limited-edition collection created with beauty guru Nabela Noor. It was a fantastic showcase of how e.l.f. leverages influencer credibility to generate excitement and boost sales, expands the brand’s reach, creates significant buzz around new product launches, and positioned e.l.f. as a trendsetter in the beauty industry.
Brand Strategy Example:
Effective Email Marketing
e.l.f.’s email marketing strategy is another key to this brand strategy example. It crafts engaging email campaigns that keep customers in the loop about new product launches, special offers, and exclusive discounts. The “e.l.f. Birthday Rewards” campaign delighted customers with special discounts and gifts on their birthdays, which fostered loyalty and encouraged repeat purchases. By segmenting its email list and tailoring content for different customer groups, e.l.f. ensures that its messages hit the mark. This personalized approach makes a big difference. It strengthens customer loyalty and keeps people coming back for more.
Brand Strategy Example:
Building Community and Fostering Engagement
Community is a significant part of e.l.f.’s brand identity. The brand creates a sense of belonging among its customers through interactive campaigns and initiatives. Whether it’s through hashtag challenges on TikTok or engaging with followers on Instagram, e.l.f. makes customers feel like they are part of a larger beauty community.
e.l.f. SEO-optimized blog posts drive organic traffic to its site. This approach is part of their broader strategy to engage and educate its audience through valuable content. The website and social media platforms are full of resources that instruct customers on effective product use, offering makeup tutorials and skincare advice that provide valuable insights and enhance the customer experience. Hosting live Q&A sessions and virtual events allows real-time interaction with its audience.
And the “e.l.f. Beauty Squad” program invites devoted customers to join a special club for exclusive benefits and early access. It’s a fantastic way to create a sense of community and belonging. Engaging directly through comments, likes, and shares on social media further strengthens this personal bond. The result? Customers feel like part of the e.l.f. family, and the connection enhances brand loyalty and encourages repeat purchases.
Brand Strategy Example:
Content Marketing – Engaging and Educating
e.l.f. excels in content marketing. Its blog and social media channels are brimming with valuable resources. From makeup tutorials to skincare advice, there’s something for everyone. The “Beauty at Home” initiative, launched during the COVID-19 lockdown, became a hit by sharing DIY beauty tips and product suggestions. This initiative resonated strongly with its audience. SEO-optimized blog posts help drive organic traffic to e.l.f.’s site. Engaging social media content keeps followers captivated. By delivering relevant and useful content, e.l.f. positions itself as a leading authority in the beauty industry.
The brand strategy example also shows e.l.f. effectively harnesses user-generated content and accumulates a wealth of genuine testimonials by encouraging customers to share their makeup looks and skincare routines with e.l.f. products. The #e.l.f.ing amazing hashtag campaign invited consumers to showcase their e.l.f. experiences, fostering a dynamic and involved community while enhancing brand credibility. This user-generated content acts as powerful social proof, building trust and attracting new customers.
Brand Strategy Example:
Targeted Digital Advertising
One of the bedrocks of e.l.f.’s brand strategy, targeted digital advertising harnessed data and analytics that help the brand to craft personalized ads tailored to meet the specific needs and interests of its audience. The “e.l.f. Beauty Studio Line” campaign featured professional-grade products at accessible prices and employed precision targeting to attract potential customers. This strategy yielded high conversion rates and optimized ROI, underscoring the efficiency of targeted digital advertising in boosting sales and driving brand expansion.
Brand Strategy Example:
Optimizing eCommerce for Seamless Shopping
e.l.f.’s eCommerce platform is designed to deliver a seamless shopping experience. The cutting-edge “e.l.f. Virtual Try-On” tool enables customers to visualize how products will appear on their skin before making a purchase, boosting customer satisfaction and reducing return rates. Additionally, e.l.f.’s platform offers easy navigation, secure payment options, and prompt delivery, all aimed at enhancing the overall customer experience. The user-friendly interfaces and comprehensive product descriptions simplify online shopping, fostering repeat business. By utilizing technology to enhance the shopping experience, e.l.f. guarantees both convenience and customer satisfaction.
Brand Strategy Example: Strategic Partnerships Enhance Brand Image
By teaming up with influencers and celebrities, e.l.f. draws in new customers and boosts its brand profile. Working with Jessica Alba on a limited-edition collection exemplifies this approach, enhancing sales and brand image. Notable campaigns include a Super Bowl ad with Jennifer Coolidge and a “Judge Beauty” campaign featuring Judge Judy Sheindlin. e.l.f. has also partnered with brands like Liquid Death and created original music featuring Reese Witherspoon, Jessica Alba, and Ellen DeGeneres (Which reminds me of my Insight to Action colleague’s article, “Liquid Death: Beverage Positioning Strategy Marketing Example”).
Brand Strategy Example:
Sustainability Efforts: Aligning with Consumer Values
In today’s world, where consumers are more environmentally conscious than ever, e.l.f.’s commitment to sustainability is a major attraction. e.l.f. is serious about sustainability, and this commitment speaks to the environmentally-aware buyers out there. The brand takes steps to reduce waste, use eco-friendly packaging, and ensure all their products are cruelty-free.
These efforts really hit home with customers who care about the environment. Not only does this improve e.l.f.’s brand image as a progressive and responsible company, but it also draws in more eco-conscious shoppers. The “Goodness Collection” campaign, for instance, highlights its eco-friendly and cruelty-free products, perfectly matching the values of its target audience. By championing sustainable practices, e.l.f. successfully enhances its reputation and attracts a growing base of green-minded consumers.
Brand Strategy Example:
Real-Time Feedback and Swift Adaptation Boosts Customer Satisfaction
e.l.f.’s knack for gathering real-time feedback and swiftly adapting to it is truly impressive. It keeps a close eye on customer reviews and social media chatter, which helps the brand spot trends and areas for improvement. This agility means it can respond to customer needs quickly and tweak products accordingly. Take the “Holy Hydration!” skincare line, a lightweight, fragrance-free moisturizer that is designed for all skin types, including sensitive skin. It was born from customer feedback, showing just how well e.l.f. listens to its audience. This ability to meet market demands not only boosts its product lineup but also makes customers very happy.
Brand Strategy Example:
Commitment to Inclusivity and Diversity
e.l.f. Cosmetics stands out with its dedication to inclusivity and diversity. It offers a wide range of shades to cater to all skin tones, making everyone feel seen and appreciated. This inclusivity resonates deeply with consumers, fostering loyalty and trust. By embracing diversity, e.l.f. not only meets market demands but also spreads a positive societal message.
This commitment isn’t just a marketing strategy—it’s a core value. With its “Shade Extension” campaign, e.l.f. increased the variety of foundation shades for different skin tones, showing it genuinely cares about representation. This move didn’t just address the needs of a diverse customer base but also reinforced e.l.f.’s values of inclusivity and representation. By championing diversity, e.l.f. builds strong consumer loyalty and trust.
Brand Strategy Example:
Innovative Marketing Campaigns
A reflection of e.l.f.’s inclusivity and social responsibility is at the core of its recent trailblazing marketing campaign: “Change the e.l.f.ing Board Game” and “So Many Dicks.” The daring campaign addresses a significant social issue and shines a spotlight on the gender imbalance in corporate boardrooms, that there are more men named Dick on publicly-traded boards than entire groups of underrepresented people.
How did e.l.f.’s data-driven insights lead to this trailblazing campaign?
Understanding the Problem
Research insights pinpointed a big problem: the glaring lack of diversity and gender equality in corporate boardrooms. Women only make up 27% of publicly-traded corporate boards, and 88% of the average corporate board is white. This surprising discovery became the campaign’s foundation, addressing a societal issue that struck a chord with its audience. While highlighting the pressing need to address gender inequality in corporate leadership, it gave this campaign a solid foundation and boosted its credibility.
Crafting a Compelling Message
With a clear understanding of the issue and solid data to back it up, e.l.f. got to work on crafting a compelling message that would really resonate: The “So Many Dicks, So Few of Everyone Else ” marketing campaign and “Change the E.l.f.ing Board Game” initiative was born.
These bold titles were designed to grab attention and get people talking. The language was edgy, and the visuals were striking, ensuring no one could ignore the message. This approach fit perfectly with e.l.f.’s brand as fearless and forward-thinking “bold disruptors with kind hearts,” ready to tackle tough issues head-on.
Choosing the Right Platforms and Engaging the Audience
To truly make a splash with their campaign, e.l.f. went for a mix of digital and traditional media. Social media platforms like Instagram, Twitter, and LinkedIn were crucial for spreading the word and engaging the audience. At the same time, it plastered eye-catching digital displays all over Wall Street.
This wasn’t just a one-way street. specific campaign hashtags urged everyone to share their thoughts, while e.l.f. also added interactive features on their website. Visitors could dive deeper into the issue and find out how they could help bring about change. By doing this, e.l.f. fostered a sense of community and collective action, making the campaign’s message even stronger.
Entertaining and informative videos on the website and YouTube featured icon Billie Jean King in a “Serving Facts” campaign showing facts about lack of corporate board diversity, as she literally serves facts written on tennis balls into their board meetings.
In addition, the campaign tied into the National Association of Corporate Boards to create an accelerator program to train and create visibility for 20 women and/or diverse board-ready candidates.
Business leaders and micro-influencers played a huge role in getting the word out. e.l.f. teamed up with influencers who focus on gender equality and diversity. These influencers shared the campaign’s message with their followers, creating a ripple effect that massively boosted the campaign’s reach. This move not only upped the visibility but also gave the campaign a credibility boost, as influencers are trusted voices in their communities.
This multi platform approach was a stroke of genius. It allowed e.l.f. to reach a broad audience: from young beauty enthusiasts scrolling through their feeds to seasoned corporate professionals walking the streets of NYC. The message was everywhere.
Generating A Broader Social Message to Shape Culture
e.l.f.’s campaign wasn’t just about raising awareness; it was about driving real change. It threw down the gauntlet, calling on other businesses to step up and make their boardrooms more inclusive and diverse. By taking the lead in this cause, e.l.f. didn’t just talk the talk—they walked the walk. The brand reinforced its core values and connected deeply with consumers who care about social justice. This strategy didn’t just boost brand loyalty. It positioned e.l.f. as a champion for more than just profit margins.
One notable example of the campaign’s impact was the ripple effect it created in the corporate world. Inspired by e.l.f.’s bold stance, several companies publicly committed to reviewing and improving their boardroom diversity. This shows just how powerful e.l.f.’s campaign was in sparking real, tangible change.
Campaign Summary
e.l.f. Cosmetics tapped into their research insights to launch a daring and groundbreaking campaign addressing a vital social issue. This initiative showcased its dedication to gender equality and diversity, weaving its brand values into every facet and creating a profound connection with its audience. It also allowed the brand to showcase how its own board reflected its brand promise–that e.l.f. stands for every eye, lip, and face — even in their own boardroom:
“Our board of directors is 2/3 women and 1/3 diverse. Out of 4,200 publicly traded companies, only 4 can say that. What the e.l.f.?”
The campaign stands as a striking brand strategy example of how brands can leverage their influence to propel social change while bolstering their unique identity and core values.
The e.l.f. Cosmetics brand strategy example is packed with invaluable lessons for any brand looking to thrive in a competitive environment. By skillfully leveraging data-driven insights, it created innovative marketing tools to not only bolster their brand but also drive growth and customer loyalty. By sticking to its core principles, constantly adapting to stay ahead of industry trends and consistently engaging with their audience, e.l.f. has become a leader in the beauty industry. Its journey is a goldmine of insights for any brand aiming to make a bold, authentic, and lasting impression.
For other brand strategy examples, visit our resources page. Contact us, or join us at an upcoming office hours.
