Assignment Sample on Case Of Cosmetic Industry
Chapter 1: Introduction
1.1 Research Background
The cosmetic sector has observed a fundamental shift in the way businesses create and utilise their online presence in the modern digital world, giving them a significant competitive edge. Branding over online platforms in today’s digital age entails a planned fusion of appealing visuals, interesting information, and a smooth user experience, all geared towards captivating a tech-savvy audience (Doyle, 2020). Moreover, it is assumed that consumer relationships have undergone a revolutionary change as a result of this transformation, which has transcended geographical and temporal barriers. Nonetheless, the capacity of businesses to develop a strong online persona, nurturing brand loyalty and resonance, reshapes the competitive environment in the cosmetics market. Quite feasibly, people navigating the virtual world may develop a sense of familiarity and confidence in businesses by carefully developing a consistent visual identity.
In addition, the dynamic nature of the digital age makes it possible for real-time engagement, allowing firms to quickly address customer feedback, questions, and concerns while cultivating a sense of personalised attention (Shukla and Nigam, 2018). Additionally, there is no doubt among the scholars that internet branding strengthens a brand’s authority through creative thinking, leadership essence, and training, utilising material to exhibit knowledge and insights, and building a protective barrier against competitors surrounding the brand. Likewise, brand reach is increased, a sense of community is fostered, and viral trends are sparked when social media and different online platforms, influencer marketing tactics, and user-generated content are effectively used (Patel, 2021). Besides, it is important to note that the ability of companies to fully understand customer preferences is made possible by the data analytics capabilities of the digital domain. Hence, this allows for the individualised design of goods, services, and marketing initiatives that synchronise with consumer preferences.
1.2 Research Rationale
This study sets out on an attempt to discover the complex dynamics that govern the manner in which online branding gives cosmetic businesses an advantage over rivals in the age of the internet. The growing importance of online platforms as channels for customer involvement and purchasing decisions is what gave rise to this study’s rationale and inspiration (Dahiya and Gayatri, 2018). Understanding the principles by which online branding generates competitive advantage becomes essential as cosmetic firms navigate this environment to acquire a solid presence in an increasingly competitive virtual marketplace.
In light of this, the rationale behind conducting this research arises as the research aims to elucidate a broad range of goals that together provide insights into the relationship between internet advertising and business advantage within the digital environment of the cosmetic sector. Moreover, this study aims to grow a thorough knowledge of how cosmetic firms use their digital presence to establish exclusive features by methodically analysing the mechanisms that provide online branding with the capacity to demonstrate competitive power (Lima et al., 2019). In addition, the study of how online branding affects maintaining a competitive advantage aims to highlight the resilience of the methods used in the midst of changing digital trends. By exploring deeper, the study seeks to identify the particular strategies and tactics that spur successful online branding in the area of cosmetics business. This necessitates a thorough investigation of the digital tools available to companies to enable them to capture and hold customers’ interest in a quickly changing online environment (Topalova, 2021). The choice of the research topic is rational which can also be proven from the fact that the study also identifies the precise mechanisms that cosmetic firms may use to create a competitive advantage by examining the complex interplay between technology and branding tactics.
1.3 Research Aim
The aim of this research is to analyse the process by which online branding provides a competitive advantage in the digital era for the cosmetic industry.
1.4 Research Objectives
Given the principal aim of the research, the key research objectives can be specified as
- To evaluate the process so that online branding can provide competitive advantages to the digital era cosmetics industry
- To find the impact of online branding in maintaining competitive advantages in the digital era in cosmetics industry
- To find the tools and techniques used in online branding in digital era to gain competitive advantage in cosmetics industry
- To highlight effective suggestions for further improvement of online branding process using digital operations in cosmetics industry
1.5 Research Questions
Following the research objectives, the research questions can be formulated as
RQ1. What is the process so that online branding can provide competitive advantages to the digital era cosmetics industry?
RQ2. What is the impact of online branding on maintaining competitive advantages in the digital era in the cosmetics industry?
RQ3. What are the tools and techniques used in online branding in the digital era to gain a competitive advantage in the cosmetics industry?
RQ4. What are the effective suggestions for further improvement of the online branding process using digital operations in the cosmetics industry?
1.6 Significance of the study
This study is of utmost importance as it covers the little-explored field of online branding tactics used by cosmetics businesses in the modern era. This research offers an instrument to direct cosmetic businesses in their pursuit of relevance and resonance in the virtual world by revealing the complex interplay between online branding and competitive advantage. Moreover, the results have the potential to change the course of industry practices by providing new insights that must revolutionise how cosmetic firms use digital platforms to encourage customer involvement and loyalty (Dhillon et al., 2022). Additionally, given how quickly the digital world is evolving, being aware of the methods and tools that support successful online branding gives business participants in the sector the flexibility they need to adapt as new technology paradigms emerge. Likewise, it can be positively assumed that the study offers practitioners a practical and realistic roadmap for not just surviving but thriving in the dynamic digital cosmetic landscape, in addition to making an academic contribution by increasing the horizon of knowledge in the area of digital marketing and branding for prominent retail sectors.
1.7 Dissertation Structure
The study’s goals and research questions are succinctly stated in the first chapter of the dissertation. The justification for the research questions is further explained given the research background, which also establishes their applicability in light of the changing cosmetics industry. The selected research objectives are convincingly supported and in perfect accordance with the main purpose of the investigation. The next chapter is the literature review, in which an incisive assessment of the current scholarly discourse is conducted, carefully analysing the connection between ethical marketing and consumer behaviour in the cosmetic industry. Moreover, the thorough theoretical framework presented in this chapter heightens the study’s analytical depth and strengthens its academic base even more. The third chapter’s methodology section serves as the foundation of the analysis procedure, exhaustively outlining the research strategy, research philosophy, research design, data collection, and data analysis techniques used in this research. The fourth chapter presents data and engages in profound discussions that reveal the core themes of the study. It also reveals the complex relationships between ethical behaviour and consumer preferences in the cosmetic industry. The conclusion, the final chapter of the dissertation, which wraps up this research journey, gives practical advice for stakeholders in the cosmetic business to support ethical marketing strategies, encourage consumer trust, and boost competitiveness. It does this by briefly synthesising major insights, outlining their corresponding implications, and summarising the key findings.
Chapter 2: Literature Review
2.1 Introduction
Online branding is a digitalised marketing or brand management strategy that uses several social media platforms, the World Wide Web and a strong internet connection as a channel to promote the brand in the marketplace. Along with advertising the products and services on the internet branding is also essential to increase brand awareness and increase a strong customer base to boost the business growth. In this digital age digitalisation usage in branding and marketing has changed the viewpoint of the customers and influenced their buying behaviour. This procedure also has helped the firm in several ways to analyse the customer’s preferences and serve them according to their requirements. In this research, critical reviews have been presented based on the analysis of “The Way Online Branding Provides a Competitive Advantage in The Digital Era, Based on the Case of the Cosmetic Industry”.
This section includes a smart description of the structures of this chapter providing an effective visualisation effect. The evaluation of the process adopted in the case of online branding by the cosmetics industry has been incorporated in this section. It also describes the impact of such implementation of online branding procedures in this cosmetics industry in order to gain competitive advantages along with the used tools and techniques. This study focuses on the evaluation of the impact of online branding on the cosmetics industry which also discloses a few challenges faced by this industry. Thus, this section also highlights a few recommendations for the industry to mitigate all such issues and make a stable position in the market by enabling its competitive advantages.
2.2 Evaluation of the process so that online branding can provide competitive advantages to the digital era cosmetics industry
The term online branding is also known as internet branding and digital branding is a great strategy adopted by the industry to promote their brands and increase brand awareness by using the benefits of this digital age. The strategy of online branding also can be considered a digital-centric method that helps in presenting the brand value in front of the customers and the public and reflects its conversions (Wang and Ni, 2022). Due to the advancement of internet marketing channels the online platforms made several opportunities for the business to expand it globally and gain competitive advantage as well. It uses search engine optimisation, AI tools, machine learning and several tools that help ascertain the customer’s demand and requirement and satisfy them through providing their needs and ensuring the business growth. In the case of the cosmetics industry, the branding strategy through implementing a digital presence helps to attract a huge number of customers and increase brand equity (Weinman 2015). The e-commerce platforms and social medias such as the company’s own official portal, Instagram, Facebook, Twitter and so on media or channels helps the organisation to understand the customer’s need through their presence, search history and shared posts to develop new cosmetics products and satisfy their demand.
According to Leung, et al., (2022), online branding in today’s digital era provides an opportunity for businesses to market their products and services and to attract them and make them loyal towards the organisation. Online branding also helps in informing the people about the latest product launch and news of the organisation enabling them to grow the sales for the organisation. The cosmetic industry takes the help of online branding because it helps them target relevant customers allowing them to reach out, knowing the customers’ changing choices and preferences and designing product and services that matches the expectations of the customers (Kim, et al., 2021). Online branding provides a competitive advantage to the digital era cosmetic industry by creating brand recognition among customers and influencing their growth the yield them positive results and continuous growth opportunities. The cosmetic industry failing to take advantage of online branding misses out on the opportunity of reaching out to the large scale of customers, providing them high quality of products and growing their satisfaction. Poor customer satisfaction leads to loss of brand reputation and poor growth opportunities for the organisations (Fitriati, et al., 2023). The cosmetic industry makes use of online branding to measure the footfall of customer visitors to their website and ensure that people share their content to grow business opportunities.
It helps to influence the buying decisions of the customers by providing extra visual effects and making them concerned about their heath and care services which leads to gaining competitive advantages. Factors affecting the consumer buying behaviour through online process comprises of web 2.0 experiences that allows them to make use of social networks, weblogs and tagging. Refer to figure 3 of Appendix. The strategy of USP (Unique selling proposition) helps to interact or communicate with the customers which builds a strong relationship with them and increases customers’ trust and loyalty toward the business (Kaur and Kumar, 2022). The impact of visual entry also influences the buying behaviour of the customers as it increases the chance of brand recognition. Thus, cosmetics companies use several logos, designs, and attractive colours to make a strong position in the minds of the customers that ensures competitive advantages. The most important strategy to gain a competitive advantage in cosmetics companies is to increase customer engagement and customer retention rate (McGrath, 2013). The process of UGC (User-generated content) also plays a great role in order to help the cosmetic industry to gain competitive advantages. UGC is such kind of content that includes videos, images, statements, audio and testimonials created by the brand advocate, and customers by promoting the brand. It helps to increase customers’ loyalty and also more traffic and more conversions by imposing credibility and authenticity in branding strategy. The use of innovation and unique equipment in branding strategy also helps to gain a competitive advantage in the cosmetics industry (Putri and Abdinagoro, 2018). Tools and strategies such as personalisation, Virtual Try-On, AR (Augmented Reality) and so on are utilised in this online branding strategy.
Personalising the products and services provided by cosmetics companies according to the requirements and recommendations helps the organisation create a strong customer base and enables several opportunities to gain competitive advantages. Virtual try-on is the most trending technology that allows customers to virtually try on makeup, clothes, and other fashion and cosmetics-related products before they buy them (Lee and Kwon, 2022). The technology replicates the in-store fitting experience by using augmented machine learning and AI tools. Thus, there is a drawback that may create an issue of accuracy in presenting the real look which may disappoint the customers. In the same way, the adoption of AR also helps cosmetic organisations to combine the computer-generated world and the real world to better understand the requirements of the customers. Thus, all such strategy or processes utilised online helps to build a strong connection with the customers that enable business growth and ensure competitive advantages (Lee and Kwon, 2022). Along with ensuring several benefits by using this online branding and digitalisation in the marketing procedures it also generated a few challenges for the organisation. Such as the organisation may find it difficult to incorporate the computerised process into the manual infrastructure. Not only that the technical uses also create complexity in the branding operations which creates an issue in communicating with customers. The saturation of digital channels is one of the biggest issues for cosmetics organisations which may become a barrier to attaining the attention of the customers and grabbing a strong market position
2.3 Impact of online branding in maintaining competitive advantages in the digital era in the cosmetics industry
Online branding or Internet branding is essential to adopt by the cosmetics industry in this digital age where the maximum portion of businesses operating are operating through the web and customers also reneged in e-commerce platforms. It plays a crucial role in order to increase the reach of the organisation globally and ensure security in the accessibility of business operations (Nurhandayani et al., 2019). To maintain the competitive advantage, it is important to expand the business from the domestic market and increase customer base. Online branding helps the organisation to reach customers worldwide without opening physical stores in different regions or countries. Through using e-commerce platforms now people can order cosmetics products from anywhere at any time. In such order to increase the customer base the organisation also provides several offers and discounts to attract customers. Thus, it helps increase brand presence across the world and influences the opportunities to gain competitive advantages (Julyanthry et al., 2021). The technique of online branding utilises several features such as search engine optimisation, marketing campaigns through social media channels, different slogans, and online advertising by using a clear visual effect of their products and sharing all details about such products. Refer to figure 2 of Appendix. It helps the customers to analyse the benefits of the products and make their buying decisions.
As opined by Kusumawardani & Purniasari, (2021), online branding maintains competitive advantages in the digital era in the cosmetics industry as it helps in promoting recognition that opens up the door of opportunities for the organisation to scale up their business. Online branding for the cosmetic industry helps them create a unique image in the mind of the customers that help in developing long-lasting impression in the mind of people. Online branding allows the cosmetic industry to diversify its business in different geographical locations allowing it to maintain a competitive advantage over its competitors (Park, 2020). The cosmetic industry undertakes online branding because it allows the cosmetic industry to create quality and value that allows the industry to maintain competitive advantages over its competitors. Through the help of online branding cosmetic industry looks forward towards creating excellent customer experiences that help in growing their satisfaction. Developing customer satisfaction allows the customer industry to scale up their business and earn profitability helping them maintain competitive advantages over their competitors (Kingsnorth, 2022). Creating loyalty among the customers also allows the organisation to receive continuous feedback helping in making changes in their product to meet the growing customer expectations as a result helping in achieving competitive advantages over their competitors.
Thus, in order to influence the buying decisions of the customers and also create a positive brand image in front of them the use of online branding in this digital age is one of the most essential aspects (Štreimikienė et al., 2021). This strategy of online branding also allows the organisation to communicate with the customers and know their qualities, issues and requirements. Customers share their feelings through feedback on the online platforms by analysis which the organisation identifies their loopholes and mitigating such issues develops new products. It also helps the cosmetics industry to keep the uniqueness in their products helping to attract customers and achieve competitive advantages (Menz et al., 2021). Thus, the online branding strategy offers a personalisation strategy to build a strong relationship with the customers that helps to boost the sales volume along with business profitability. Digitalisation has provided the opportunity for the cosmetics industry to adopt several technologies and tools to foster the creation of brand awareness, increase brand and create a strong customer base. Customers get the advantage of trying the makeup products virtually before buying them.
It also helps to influence their choice and create a positive reflection towards the organisation. It is a great tool that develops a positive image of the brand in front of the public and increases brand equity which is the most important strategy to gain competitive advantage (Phan et al., 2020). The strategy to implement online branding also allows the cosmetics brand to reduce their operations cost through reducing the promotional and advertising cost which helps them to reduce the price of products. Thus, it is also a great strategy to gain a competitive advantage by providing the best quality products at a lower cost than the competitors (Al-Abbadi et al., 2022). If the customers are unsatisfied with the products provided by a respected cosmetics company may share their negative response on the social media platform which will also influence other buyer’s decisions. It also can be proven as a negative impact towards the brand image. To create a brand image in the online platform’s cosmetics brands, need to create their own separate brand logo, use of colour and other attractive features in it. If it becomes identical or matches with other brands’ creations then several regulatory issues may create which also hamper the brand image.
2.4 Tools and techniques used in online branding in the digital era to gain a competitive advantage in the cosmetics industry
The adoption of several advanced, and upgraded tools has made the online brand procedure of cosmetics companies more effective and reliable with the business strategy. In this era of digital technologies, the use of tools and digital techniques helps to attract customers and boost business revenue. It also attracts investors to invest in the organisation which leads to opportunities to create a stable position in the market and expand the business globally (NALBANT and AYDIN, 2023). The use of e-commerce and social media platforms are the most essential channels that increase brand awareness, present a fair and accessible brand image in front of the customer and increase brand equity. It helps the organisation to share their recently developed products, details about future product launches, details of their provided products and their benefits. Customers also get attracted by the visualisation effects created by the cosmetics brand and share their opinions on social media which helps the firms to analyse the customer’s demand. Nowadays the public is easily attracted by the posts of social influencers (Supapon and Sukhawatthanakun, 2023). Thus, cosmetics brands utilise such strategies of social influencers and make product advertisements using them which also helps to attract a huge number of customers and gain composite advantages. In this regard, the use of different slogans, hashtags and some special effects has also been noticed to present brand recognition among the customers to increase brand awareness.
As stated by Dumitriu, et al., (2019), tools and techniques used in online branding in the digital era to gain a competitive advantage in the cosmetic industry comprise search engine optimisation that allows for creating more traffic to websites helping the cosmetic industry to grow their business. Search engine optimisation also helps the cosmetic industry to provide better accessibility to search for information helping the customers to make up their purchasing decisions (Kovalenko & Kuzmenko, 2020). The cosmetic industry also makes use of content marketing that turns out to be valuable for them as it enables in achieving better brand awareness growing the business opportunities for the cosmetic industry. Content marketing for the cosmetic industry also helps them build brand awareness and reach out to large sets of customers to grow their business. Content marketing also allows the cosmetic industry to increase traffic and conversions as a result of which it positively contributes to the development of the organisation (Ho, et al., 2020). Web advertising for the cosmetic industry helps them out in creating clickable advertisements that draw out the attraction of customers to grow the business opportunities for the cosmetic industry. Affiliate advertising for the cosmetic industry enables in growth of the brand reputation and increases the business opportunities for the establishment.
The use of UGC also ensures a valuable impact on the customers and improves the opportunities for gaining competitive advantages. The term UGC refers to the content about the products and services provided by the organisation created by the customers after getting benefits from it (Widiastuti and Surendra, 2020). The cosmetic industry deals with such kinds of products and services that are related to the health and care-related satisfaction of the customers. Thus, getting a positive response for the products on special media helps the brand to create a secure and transparent image of their company and products. It helps in a huge manner to influence the buying decisions of the customers and boost the sales volume. In the case of the traditional way of shopping the customers get touched by the products from which trust grows in their minds (Man and Rahman, 2019). Thus, to ensure such trust and loyalty to the customers the cosmetics brand has utilised the use of visual try-on and AR automation. With the help of implementing visual try-ons, customers can try the products and get a real image of them to choose the cosmetics suits for their skin. It helps to attract the customer which ensures the competitive advantage.
Content marketing is a strategy that helps to retain, attract, and engage customers by creating and sharing relevant videos, images, podcasts, articles, and other media. This approach promotes brand awareness, establishes expertise, and keeps the cosmetics business top of the minds of the customers when it’s time to buy the products (Wang et al., 2022). The cosmetics companies share several videos, images and posts on social media regarding the usage of cosmetics products, time to use, benefits and various beauty tips that attract customers. Thus, the use of content marketing helps cosmetics companies to create a stable position in the market and increase brand awareness. Big data analytics is also one of the greatest strategies adopted by this organisation in order to describe the process of uncovering ongoing trends, product patterns, and links or correlations in large amounts of raw data collected from customers to help make data-informed decisions (Sundaram et al., 2020). Refer to figure 4 of Appendix. It helps to analyse feedback and responses gathered from the customers to ascertain their queries, requests, and objections to reading any products or services. By analysing such responses, the cosmetics companies take the initiative decision to meet the loopholes for the business organisation and improve their served products. But these technologies require skilled and efficient employees which is quite tough to hire in the organisation. Thus, the companies need to operate several training sessions which increases their operating costs. Such technologies are also identified as costly which also disrupts the cost structure of the firms and determines its effectiveness.
2.5 Suggestions for further improvement of the online branding process using digital operations in the cosmetics industry
As opined by Krstić, (2019), further improvement for the cosmetic industry to improve their online branding process using digital operations in the cosmetic industry. Creating and optimising the website turns out to be highly effective as it will help in using digital operations in the cosmetic industry to grow their business. Optimising the content will also help the organisation to scale up its business and grow business opportunities that positively contribute to the growth of the cosmetic industry (Carlson, et al., 2021). The online branding process using digital operations in the cosmetic industry turns out to be highly effective because it can provide product reviews allowing the customers to know about the features and specifications of the products enabling them to make their purchasing decisions (Parmanand, 2023). Online branding will also be helping out in segmenting the audiences based on their purchasing capability and ability ensuring in growing the business opportunities for the cosmetic industry. The cosmetic industry can also offer personalised offerings to the customers based on their choices and preferences helping out in growing the business operations for them.
Previously, the relationship between customers and brands used to be transactional. Nowadays, brands can effectively change their customer base into a community and enjoy better engagement rates which increases sales. As stated by Coelho et al. (2019) it is a major powerful tool as it plays on customers’ natural urge to belong. For example, Sephora has been able to create a brand community successfully over the years. The name of the community is “Beauty Insiders” which is improving every day by providing customers with emotionally satisfying rewards and experiences that drive sales (Koetz, 2019). The major advantage of this is that customers can be highly engaged on social media and in those community forums where they are encouraged to share their feedback, beauty inspirations and tips within the groups or social pages. This digital branding process can be utilised effectively by providing members-only offers and collaborating with beauty experts to solve their beauty problems. The goal of this approach is to retain customers and strengthen the brand through developing strong communities and lasting relationships. On the other hand, Lakho et al. (2023) argue that customer testimonials on the product pages are one of the branding processes that is not going to lose its effectiveness. For brands, happy customers are always going to be the best advertisement. Also, their testimonials make a huge impact on the decision-making process of customers. The major step in effectively engaging customers in adding the links to the positive reviews in the description box. Video testimonials are one of the major ways to engage customers, especially in the beauty industry. These videos are all about people trying out various products and recommending their favourites which is therefore a great way to promote testimonials for the brand.
Creating a lot of quality content, through content marketing is an innovative marketing strategy which is going to stay in the market. The strategy is well-utilised in the cosmetics industry for brand awareness and promotion (Müller and Christandl, 2019). The value of the content a brand provides is what engages audiences. Over time, people start to engage with the value that a brand can provide through such a marketing strategy. Isyanto (2020) states that micro-influencers make a part of the digital branding of a cosmetics company. The idea stems from the fact that individuals like to identify with the everyday struggles of real people. On the contrary, brands can leverage influencer marketing without having a lot to spend on famous influencers and celebrities. These are the two major reasons why micro-influencers have become so popular in recent times. Liu et al. (2020) argue that online branding through digital operations also covers the role of social listening. This is the practice of monitoring the brand’s presence through searching and analysing the online conversations of the brand including its products, competitors etc. There are many software that can be leveraged by brands to engage effectively through all these online mentions to potential prospects. Therefore, social listening is one of the major recommendations that enables cosmetics brands to quickly identify potential customers and attract them.
2.6 Literature gap
All the potential thoughts and insights have been incorporated into this research to analyse the impact of online branding in order to gain a competitive advantage for the cosmetics industry. Still, this research indicates a lack of sufficient data and information due to the vast size of operations of online branding through using different kinds of online platforms. The most recent tools used by the cosmetics industry for online branding such as Jasper AI, Zapier, Chatfuel, FullStory, Surfer SEO and so on are overlapped in this research which may create a lack of data.
2.7 Summary
In this section, a brief description of the process adopted by the cosmetics industry to ensure effective online or internet branding and gain competitive advantages has been incorporated. It reflects the strategies used in this organisation such as the use of social media platforms, e-commerce platforms, different kinds of AI and other automated tools to present a positive view of the organisation and so on to attract customers. The way all such technology is used by this organisation to create a stable position and gain competitive advantages has been covered in this section. It discloses tools such as UGC, AR, visual try-on and several upgraded tools that make the process of online branding more effective and increase business revenue. In order to mitigate the challenges faced by the cosmetic industry in this princess online branding a few suggestions also have been covered in this chapter.
Chapter 3: Research Methodology
3.1 Introduction
The most crucial part of the study is its methodology section, which presents the results of the research procedures the researcher would select based on the kind of study being conducted. The researcher considered the idea of the research onion while deciding on the best approach. In order to assess the study and produce conclusions that are totally consistent with how it was established, the researcher will also go through the procedures for data collection and the section on data analysis. The researcher discusses any ethical concerns that come up while working on the specific study project.
3.2 Research purpose
Progressing the goals that the researcher set in the first chapter is the primary goal of the study’s research purpose. The purpose of the research is to employ technological ideas, concepts, and considerations to progress the area of study now under inquiry. In addition, one of the objectives of the study is to assist the researcher in defining the research topic and fully comprehending the findings so that the study may be completed efficiently and promptly.
3.3 Research philosophy
The view about how information or data in a study of a phenomenon has to be examined and obtained is identified as research philosophy (Snyder, 2019). Positivism, realism, interpretivism, and pragmatism are the three main types of research philosophy that are considered in research. Considering the research philosophy, which is the first layer of the research onion, it assists the researcher in a study to come up with the notion of knowledge production by including them in the knowledge creation process as a part of finishing the study. The positivism research philosophy prioritises the use of measurements and measurable components when the researcher gathers data in order to further scientific understanding. The interpretivism research philosophy lays a strong emphasis on the subjective reality of the social situation to get correct results (Gupta and Gupta, 2022). The philosophy of realism study is based on the hypothesis that how humans perceive reality has no influence on reality itself. The core idea of pragmatism research is the pragmatic research philosophy, which focuses on a single decision-maker in a real-world setting.
The research in the current study, which is founded on the premise that reality is socially constructed and subjective, has considered interpretivism as a research philosophy. Interpretivism is the chosen research philosophy for analysing a person’s world through their experiences (Davidavičienė, 2018). Interpretivism is such kind of research philosophy that finds the human character of a research active instead of passive. Implementing this philosophy in the research the researchers can develop data high in validity as it focuses on motivation and personal meaning through close observations. Interpretivism produces complex research such as cross-cultural studies that can be studied in a lot of detail considering each attribute related to the research aims and objectives (Alharahsheh and Pius, 2020). Incorporating present context, structure, and culture into understanding philanthropic processes interpretivism serves the most relevant and reliable project development process. As a result of taking the interpretivism research philosophy into consideration, many individuals with various opinions regarding a societal viewpoint are produced. The positivism philosophy, on the other hand, has not been utilised since it tends to generalise the findings and falls short of offering fresh perspectives or solving pressing issues.
3.4 Research approach
The second layer of the research onion idea is the research approach, which clarifies the process that will be most effective for the researcher in the study for evaluating, gathering, and interpreting the data. The research approach is broadly divided into qualitative, quantitative, and mixed methodologies, but it is further divided into deductive, inductive, and abductive types in order to be used (Mohajan, 2018). Utilising particular facts or observations, the inductive research approach aids in the development of theory or generalisation. The deductive research approach, on the other hand, uses a process where theory is initially established or generalised after observation or data collection. The abductive research approach places a strong focus on the systematic study-based conceptualization of ideas as well as the evaluation of exceptional or singular empirical findings in the context of diverse pre-existing cultural attitudes.
The researcher used an inductive approach for the current study, where data collecting, and pattern recognition served as the foundation for developing new theories. It is a flexible and workable strategy that helps the users or researchers develop and modify their research topic, developmental strategies, and techniques based on the data gathered. Through this implementation, the researchers also can generate new phenomena and concepts that in past they may not have covered due to lack of data. The inductive research approach also helps the researchers to develop higher-order- skills (HOTS) and ensure the research’s success by accomplishing all the research goals and objectives by analysing data patterns and their order. Although developing a theory is the main goal of considering an inductive research approach, in the current study the researcher first begins a collection of specific facts or observations before coming to a general rule or conclusion about the selected topic. By combining facts, figures, and other sorts of data with the inductive research approach, the researcher has been able to establish better connections with a variety of concepts. The inductive research approach has proven more accurate and relevant for the current study than the deductive approach since it does not require verification or a focus on theory but rather uses pattern recognition from the collected data to create new notions (Kapur, 2018).
3.5 Research design
The third layer of the notion of research onion, or the blueprint of a study, is called research design (Patel and Patel, 2019). The best method or instrument for carrying out the study is determined by considering the research design. It aids in resolving and detecting problems that develop over the course of analysis and study. Exploratory, descriptive, and explanatory research designs are the three basic categories under which it is categorised. When there are few or no current study data available for analysis, an exploratory research design is utilised. Using study variables, a single event or scenario is accurately characterised in a descriptive research design. When there is little to no prior understanding of a phenomenon, an explanatory research design is useful for assessing its existence.
An exploratory research design is employed in the current study to analyse a research subject that has not been thoroughly investigated before. It was also employed as a technique for the preliminary investigation, which gave a theoretical framework for the investigation’s issue (Pandey and Pandey, 2021). The exploratory research design has been identified as the most flexible research design which is able to be recreated and changed as per the recent changes in the research. It helps in laying the foundation of certain research, which can lead to developing further research in a far better way. Exploratory research draws up a greater understanding of a previously unresearched topic in past research on the same field that satisfies the researchers by uncovering facts and bringing new issues to highlight. In contrast, the researcher used an exploratory study design and a data collection approach for the current study to further explore the research issue. The implementation of the concerned research design is appropriate since it facilitates the collection of background information and the definition of the specific study topic.
3.6 Data collection
In the current study, the qualitative secondary method of data collection was employed, and the researcher considered the ideas and viewpoints of other authors and writers in order to respond to research questions and meet the study’s purpose. The researcher has also been given the chance to maximise the value of the secondary qualitative data, especially given how challenging it is to contact the target demographic for a survey or interview. In the current study, the researcher employed the secondary technique of data gathering, and the most popular tools for secondary data collecting were books, journals, and online articles. As compared to the primary methods of data collection such as surveys, interviews and taking the different perceptions of individuals, the secondary data collection process is quite time-saving and flexible as well. It has a vast source of collected cleaned and structured data and information which makes the research developmental process faster and also presents the most relevant and accurate information. This strategy also allows the researchers to maximise data utility, particularly in difficult-to-reach areas. Government publications and public records have also been used as secondary data-gathering sources to obtain statistical and numerical data (Mukherjee, 2019). In addition, the researcher used economic and technical journals as well as business papers produced by organisations to gather pertinent material from secondary sources to meet the study’s objective.
3.7 Data analysis
The six-stage thematic analysis framework developed by Braun and Clarke was used by the researcher to examine the secondary data gathered for this study. The versatility of thematic analysis in recognising and interpreting patterns within textual material led to its selection as the analytical technique (Byrne, 2022). The six-stage thematic analysis framework is unsupervised through which the researchers can easily set up codes and identify the themes for data analysis. In this method, the researchers are not required to use any kind of algorithms and advanced categories which helps the users to capture the unknown unknowns (Robinson, 2022). It leads to emphasising identifying, analysing, and interpreting qualitative data order patterns to describe the facts generated from the research. Getting to know the secondary data very well was the first stage in the analytical process. To gain a thorough comprehension of the data’s substance, many readings of it were done. Generating initial codes was the next step after becoming familiar with the data. The study questions and objectives served as a guide for the inductive approach that was used to code. Key concepts, words, and ideas were encapsulated in codes that were used to identify pertinent textual portions.
Following the initial coding, the codes were sorted and put into various themes. These themes appeared in the data as recurrent patterns, concepts, and topics. Theme creation was carried out iteratively while making frequent use of the coded data. Potential topics were first discovered, and then a thorough evaluation and improvement process was started. Themes were carefully examined to make sure they correctly reflected the data’s content (Terry and Hayfield, 2021). In order to explain and analyse these clearly defined themes, a narrative was created. A thorough explanation of each theme was provided along with pertinent statements from the secondary sources. The results of the thematic analysis needed to be reported and presented in the final phase. In this study, the findings are organised, with each theme getting its own discussion. The study provides a description of each theme, statistics supporting each theme, and interpretations for each theme. To further highlight important themes, excerpts from the secondary data are added.
3.8 Ethical Consideration
A researcher’s conduct and study design are aided by a set of rules and principles known as ethical concerns in research (Mohajan, 2018). The study was conducted in accordance with an ethical standard. It was possible to integrate ethical issues as a substantial part of this study by adhering by the regulations of the academic institution and more general qualitative research norms. The technique used to obtain the data was carefully considered when evaluating the data sources. To eliminate the problem of plagiarism, the researcher has given the writers and authors the proper credibility through reference. To guarantee that the data presented is current and acceptable for the study, only recently released data sources have been used. To maintain confidentiality, no unpublished data sources, such as a person’s diary or blog, have been utilised.
3.9 Summary
The explanation above leads to the conclusion that using a research framework like a research onion creates a logical and orderly flow for data collecting and analysis. The researcher has employed a secondary method of data collection. Thematic data analysis techniques have been widely utilised to identify themes and evaluate the data in accordance with study objectives.
Chapter 4: Data Analysis and Discussion
4.1 Introduction
This chapter’s study engages in a thorough thematic analysis to examine how subjects, codes, and themes evolve. This is the most important part of the dissertation since it involves digging further into the analysis of the research to show the intricate relationships that tie the literature story and facts together. The significance of the connections between these themes has been shown by meticulous examination of these topics to uncover their underlying character. This in-depth analysis offers a fair perspective and provides enlightening details on the intricate web of thoughts. The researcher frequently takes part in lengthy talks that help build a greater understanding of the conditions, ramifications, and linkages that support the thematic components as this study progresses through the diverse spectrum of topics.
4.2 Braun and Clarke’s Six Simple Steps Thematic analysis
Step 1: Familiarising with the data
The researcher has gone through the existing literature multiple times to have a comprehensive understanding of the content. This step required the researcher to be familiarised with all aspects of data. This step has been necessary to go to the further analysis.
Step 2: Generating initial codes
In this step, the researcher developed preliminary codes which were the key features of the literature that were interesting and meaningful. These codes are more specific than themes which provide a clear indication of the context of the relevant literature.
Step 3: Searching for themes
The researcher conducted an interpretive analysis of the collated codes. As per the overarching themes, the researcher sorted the relevant data extracts.
Step 4: Reviewing themes
Here, the researcher evaluated the themes against coded extracts and then for the overall data sets.
Step 5: Defining and naming themes
The identified themes are further enhanced. The researcher provided proper theme names and clear definitions that capture the essence of each theme in a concise manner. Here, the researcher developed a unified story of the data from the themes.
Step 6:
In this last step, the researcher analysed carefully by using compelling exact examples that relate to the themes, research questions and literature. Rather than providing a mere description of the themes, the researcher could describe the themes and portray an analysis supported by empirical evidence that addresses the research questions.
4.2.1 Themes development
| Topics | Codes | Themes |
| Virtual try-on is the most trending technology that allows customers to virtually try on makeup, clothes, and other fashion and cosmetics-related products before they buy them (Lee and Kwon, 2022). | Virtual try-on, trending technology, virtually try-on makeup, clothes, and other fashion and cosmetics-related products | Buyers can virtually try on makeup, clothes, and other fashion and cosmetics-related products through the trending technology, virtual try-on |
| Customers share their feelings through feedback on the online platforms by analysing which the organisation identifies their loopholes and mitigating such issues to develop new products. It also helps the cosmetics industry to keep the uniqueness of their products helping to attract customers and achieve competitive advantages (Menz et al., 2021). | Cosmetic, feelings through feedback, products, unique, competitive advantage | Cosmetic companies evaluate customers’ feelings through feedback and create products that are unique, therefore enhancing competitive advantage. |
| Content marketing is a strategy that helps to retain, attract, and engage customers by creating and sharing relevant videos, images, podcasts, articles, and other media. This approach promotes brand awareness, establishes expertise, and keeps the cosmetics business top of the minds of the customers when it’s time to buy the products (Wang et al., 2022). | content marketing, cosmetics companies, brand awareness and establishing expertise | By leveraging content marketing cosmetics companies promote brand awareness and establish expertise that attracts customers. |
| Isyanto et al. (2020) states that micro-influencers make a part of the digital branding of a cosmetics company. The idea stems from the fact that individuals like to identify with the everyday struggles of real people. | Micro-influencers, digital branding, a cosmetic company | Micro-influencers are a major aspect of the digital branding of a cosmetic company because they relate to the audiences. |
4.2.2 Analysis
Theme 1: Buyers can virtually try on makeup, clothes, and other fashion and cosmetics-related products through the trending technology, virtual try-on
As the technology continues to change the trajectory of the company’s operations including marketing, cosmetic brands are also leveraging augmented reality (AR) technology, so that they can offer customers personalised and interactive experiences. This implies that consumers can try on products without visiting traditional make-up counters. The first and foremost advantage of this process is personalising customer experience. Customers can try different products and shades virtually which caters to their unique needs, ensuring a personalised experience (Bonetti et al., 2018). Customers can see how a product looks on their skin tone and texture before making a purchase. Therefore, such a process of online branding establishes that companies value the unique needs of the customers which helps in building customer loyalty and satisfaction.
Competitive advantage stems from ensuring convenience to the consumers which is possible through virtual try-on facility. Consumers can easily try on products online without stepping out and visiting the stores, as they can do it from the comfort of their homes. Such an offer ensures customers can save time and effort and they can experiment with various looks at their own pace (Wang et al., 2022). On the other hand, the whole process of virtual makeup try-ons is cost-effective for these brands to showcase their products. By doing so, the requirement of expensive samples and testers is reduced along with the cost of maintaining a physical store. Further, such cost-saving can be quickly passed on to customers, suggesting that consumers can now avail of products by paying less. In addition to that, such an online branding process is effective in reducing returns and exchanges. Virtual makeup try-ons can be great in ensuring there is a lack of returns and exchanges that are costly for both the consumer and the company. Virtual try-ons enable customers to see the products on them before making a purchase which reduces the chances of dissatisfaction with the products. This also saves time and money for both the consumers and brands.
This particular strategy is great for brands to gain valuable insights so that they can enhance their product development. Cosmetics brands can identify which products and shades are popular and which are not, and further, this data can be interpreted and analysed for product development strategies. Thus, these brands can ensure better product launches and an effective understanding of customer needs and preferences. These virtual makeup try-ons can ensure that cosmetic brands can enhance brand awareness and engagement. As the customers can have unique and personalised experiences, it encourages customers to share their experiences on social media, which improves brand visibility and engagement (Attaran et al., 2019). As a result, brands can reach new audiences and build brand loyalty. Hence, these virtual try-ons can be an increasingly crucial tool so that they can engage customers effectively and drive sales mainly considering the fact that AR technology continues to advance. These brands can provide their customers personalised and convenient shopping experience by investing in AR technology.
Theme 2: Cosmetic companies evaluate customers’ feelings through feedback and create products that are unique, therefore enhancing competitive advantage.
It is becoming quite evident that customers are relying on online reviews to decide whether or not they will shop from a particular brand. This is mainly true for cosmetics companies so their voices have a huge impact on businesses. Cosmetic shoppers, mainly women are likely to share an emotional bond with the products they use. The majority of them are always seeking perfect shampoo, moisturizer, foundation and more. Once they find something that works for them, they are likely to stay loyal to the brand (Srivastava et al., 2022). This is one of the key reasons for cosmetics brands to proactively monitor and analyse their customer reviews to understand what people think and feel. This is critical for these brands to improve upon beauty products and customer services.
The feedback from customers is also essential in terms of getting better insights into current and future beauty trends and the strategies of competitors. Considering today’s competitive landscape of beauty brands, they must understand future trends. If not, they will not be able to develop products that are going to be unique and futuristic. The cosmetic market is dense and requires brands to do something extraordinary to stand out in the crowd. Feedback from customers is also a major part of their market research, which gives a clear understanding of what products are working and what is not for them. Also, customers’ feedback often includes products that they expect to be launched by their favourite brands (Campbell et al., 2020). This is beneficial for these brands as they can already see the market demand and introducing products according to that will ensure their competitive advantage.
The significance of feedback from buyers is that it gives these brands clear ideas on how their existing products can be modified as well. There are times when a range of foundations may not be enough for the market and brands may get backlashes due to that, this feedback can encourage them to understand that they must broaden their range. Not only that, it gives them an understanding of what is expected from them by the buyers they cater to. Therefore, it can be said that when cosmetic companies leverage the feedback, they can effectively offer products that separate them from their competitors.
Cosmetic companies take customer feedback very seriously as it helps them determine the acceptance of products and services among the customers. Feedback also allows cosmetic companies to know about the choices of customers and provide them with personalised cosmetic products matching their expectations helping the organisation to grow its reputation among their targeted customers (Jin, et al., 2022). Cosmetic companies evaluate customer feelings through feedback as it enables them to improve performance by offering them a product that is of high-quality value and offers. Customer feelings and feedback influence cosmetic companies to grow employee engagement and also motivate them to perform their activities in an aligned and coordinated manner to achieve results that intend to grow the firm’s efficiency and effectiveness (Kim, et al., 2020). Feedback from the customers is considered to be highly effective and positive as it helps the cosmetic companies to reduce the risk related to project safety as a result of which it grows the performance and productivity of the cosmetic companies. Developing products based on customer feedback also allows cosmetic companies to improve customer relationships and build trust among them further opening up business opportunities. Hence, customer feedback for cosmetic companies turns out to be important for the firm.
Theme 3: By leveraging content marketing cosmetics companies promote brand awareness and establish expertise that attracts customers.
For cosmetics businesses, content marketing is a potent tool for raising brand recognition, demonstrating expertise, and luring clients. Consumers learn more about many areas of skincare, makeup, and beauty through the instructional material that cosmetics firms produce in the form of blog posts, videos, or infographics. This establishes the business as an expert in the field and fosters audience trust (Weerasinghe, 2019). Step-by-step instructions on utilising products, skincare regimens, and makeup lessons are all quite interesting. They offer value to the viewers by showing them how to obtain desired looks in addition to showcasing the company’s products. One effective method to use content is to encourage consumers to share their product experiences through reviews, images, and testimonials. This kind of social evidence increases brand trust and motivates people to test the items.
Customers feel more connected to a brand when its narrative, values, and mission are communicated via content. Blog postings, videos, or even social media tales are used to accomplish this. Customers make more educated decisions when reading content that details the advantages of compounds used in cosmetics goods. It also displays the business’s prowess in product formulation. Cosmetics businesses interact with their target audience and develop a devoted following by regularly publishing on social media sites like Instagram and Pinterest with aesthetically engaging material (Wang et al., 2022). Customers are kept interested and updated about new goods and trends via regular mailings with useful material, incentives, and beauty tips. By including relevant keywords in content, businesses increase their search engine rankings and make it simpler for potential consumers to access their website and content.
Collaboration with beauty influencers or professionals broadens the audience for the content and makes the cosmetics items more accessible. The customer experience is enhanced and the workload on customer assistance is decreased by publishing information that addresses typical customer queries and concerns (Weerasinghe, 2019). Cosmetics firms provide e-books or whitepapers that demonstrate their expertise on more in-depth subjects. In return for customers’ emails, these are made available as downloadable materials, which helps grow a subscriber list. Customers communicate directly by participating in live seminars or broadcasting live cosmetics tutorials. Cosmetics firms develop their brand recognition and expertise while also forging enduring relationships with their clients by offering insightful and interesting content.
Cosmetic companies promote brand awareness along with establishing relationships with the customers to attract them enabling them to grow their business and earn high profitability. Through content marketing, cosmetic companies explain product information, its usefulness and usage helping the cosmetic companies to grow their business operations and develop awareness among the customers opening up business opportunities and looking forward to scaling up their business in the competitive business environment (Yaghtin, et al., 2020). Content marketing also allows the cosmetic companies to promote their brand through search engine web traffic that allows the cosmetic companies to identify their target customers and offer them high-quality cosmetic products matching their expectations. Developing high-quality leads through content analysis also turns out to be highly effective for cosmetic companies as it allows them to build a loyal customer base that further opens up the door of opportunities for the organisation (Ho, et al., 2020). Content marketing undertaken by cosmetic companies also allows them to develop engaged and interactive content that helps in attracting the attention of the customers by offering them products matching their expectations and growing business opportunities for the organisation (Beard, et al., 2021). Content marketing also allows cosmetic companies to create SEO-friendly content that allows the customers to interact with the brand to enjoy better and higher quality cosmetic products.
Theme 4: Micro-influencers are a major aspect of the digital branding of a cosmetic company because they relate to the audiences
Due to their ability to relate to and engage with certain target groups, micro-influencers are in fact an important part of cosmetic businesses’ digital branding strategies. In comparison to superstars or mega-influencers, micro-influencers frequently have a more genuine and relatable presence (Pornsrimate and Khamwon, 2021). Their smaller following typically translates into a more sincere relationship with their audience, which is crucial in the cosmetics sector where credibility and trust are essential. In the beauty and cosmetics sector, micro-influencers concentrate on specialised areas, such as skincare, makeup for skin types, or cruelty-free goods. They interact with a very specific audience who is interested in those issues thanks to their unique knowledge.
Micro-influencers share an intimate connection with their followers through different social media platform that allows the organisation to promote their brand among the customers and grow business opportunities. The role of a micro-influencer in the cosmetic company is to give a review of the brand, its features and prices that allows the customers to compare the same with that of the other products helping them in making up their purchasing decisions (Karagür, et al., London). Cosmetic companies form partnerships with micro-influencers such as through sponsoring posts and creating entire lines of products that help in growing the overall brand image and also scale up their business to positively contribute to the organisational development. Micro-influencer’s role is also to target the right set of customers based on their purchasing habits and choices ensuring that the people show their trust and loyalty towards the organisation as a result of which it grows the business productivity for the organisation (Yesiloglu & Costello, 2020). The role of micro-influencers also turns out to be pivotal as it allows them to connect with the customers and allow them to know about their changing choices and preferences helping them in offering them the same cosmetics that matches their requirement helping in growing the overall profitability for the cosmetic industry.
Compared to bigger influencers, micro-influencers typically have better interaction rates. It is simpler to start discussion and establish a community around the business since their followers are frequently more engaging and engaged. Cosmetic firms, especially smaller ones with tighter resources, might save money by working with micro-influencers. Compared to larger influencers, micro-influencers could be more open to working for free or for lesser pay. Local or regional followings are typical for micro-influencers. Partnering with regional micro-influencers is a very effective strategy for cosmetics firms aiming to increase their market presence in certain geographic regions (Isyanto et al., 2020). Micro-influencers include a wide range of age groups, skin tones, and cosmetic requirements. Due to their diversity, cosmetic businesses are able to efficiently target different demographic groups.
By working with micro-influencers, user-generated content is produced that showed the cosmetics goods in real-life circumstances. This material is recycled in the business’s own marketing initiatives since it is very compelling to potential consumers. The followers of micro-influencers frequently view them as more reliable and credible. When a micro-influencer gives a product a recommendation, it is frequently taken as a sincere endorsement rather than a sponsored advertisement. Developing connections with micro-influencers results in long-term business ties (Pornsrimate and Khamwon, 2021). These influencers continue to promote these items as business expands, eventually turning into brand ambassadors. Micro-influencers offer insightful feedback on the products, enabling the brand to develop and change in response to consumer reactions and preferences. Cosmetic firms must carefully choose micro-influencers who fit their brand values and target demographic. Genuineness is essential, and relationships should seem organic rather than forced. Working with micro-influencers effectively may help the cosmetic brand reach a sophisticated audience interested in cosmetics and increase its digital brand recognition.
4.3 Discussion:
As per the findings from theme 1, utilising AR technology, cosmetic companies are giving consumers personalised and interactive experiences that let them virtually experiment on goods without physically visiting cosmetics counters. The main benefit of this strategy is that it improves the customer experience since it encourages personalisation as people experiment with various goods and hues that cater to their demands. This customer-focused strategy fosters satisfaction and loyalty. By delivering ease, this virtual try-on option offers a competitive edge. Customers save time and effort by researching items from the convenience of their homes while experimenting with numerous looks at their own speed. In addition, it helps companies save money by lessening the need for actual samples and testers and the expense associated with running physical locations. Customers benefit from these cost savings as items become more inexpensive. Since customers see how things will look to them before buying, virtual try-ons reduce the need for returns and exchanges, lowering unhappiness and saving time and money for both customers and businesses. Furthermore, this approach provides insightful data for product development, allowing companies to pinpoint popular goods and colour schemes for upcoming launches.
Considering the second theme, customers primarily rely on internet reviews when making purchases, particularly in the cosmetics sector. When purchasing cosmetics, most women tend to form emotional ties to the brands they use after they discover goods that work for them. This loyalty highlights the significance of cosmetics firms regularly tracking and analysing client feedback to gather knowledge about the effectiveness of their products and the experiences of their customers. In addition, recognising current and future beauty trends as well as analysing competition plans depend greatly on client input. In the very competitive cosmetics industry of today, businesses must foresee emerging trends to develop distinctive, innovative goods. Customer feedback is another essential component of market research, bringing crystal-clear insights regarding the success of a product and prospective demand for future offers. Customer input helps companies improve current items and, where required, add new product lines. It aids companies in locating product gaps and ensuring that their goods meet consumer expectations. Cosmetics firms stand out from competitors and provide goods that genuinely resonate with their target market by utilising consumer feedback efficiently.
For firms in the cosmetics industry, according to the third theme, content marketing is an effective tactic for increasing brand awareness and showcasing expertise. These businesses portray themselves as experts in the field by educating consumers about skincare, cosmetics, and beauty through blog posts, videos, and infographics. Along with exhibiting their products and giving customers useful information, they also provide tutorials and step-by-step guidance. Building brand trust by encouraging customers to share their insights through reviews and testimonials encourages others to try the items. In addition, content communicates a brand’s story, principles, and goal, strengthening relationships with customers. The company’s expertise in product composition is highlighted with informative literature regarding component advantages. While email newsletters keep customers informed of new items and fashion trends, consistent social media updates engage and educate the audience. Influencer collaboration increases the content’s reach, improves the customer experience, and lightens the pressure on support staff.
Due to their capacity to establish connections with certain target groups, micro-influencers are essential to the digital branding strategies of cosmetic companies. Considering the fourth theme, micro-influencers establish honest relationships with their followers by being more approachable and personable than mega-influencers. This is priceless in the cosmetics sector, where reputation and trust are key factors. Micro-influencers frequently focus on specific categories within the beauty and cosmetics industry, such as skincare or cruelty-free goods, making them authorities in those industries. They also have better interaction rates than bigger influencers, which makes it simpler to start interesting discussions and develop communities around the business. Micro-influencers are also cost-effective since they sometimes agree to work together for less money or even in return for merchandise. They are useful for cosmetics firms trying to develop regions due to their local or regional followings, and their varied audiences enable brands to target different demographic segments. Micro-influencers create user-generated material that features items in real-world scenarios and is very compelling to potential consumers. In addition, micro-influencers are viewed as more reliable, and people take their advice as sincere affirmations. Establishing connections with micro-influencers leads to long-term collaborations and insightful product development input.
4.4 Summary:
A smart audience interested in cosmetics has increased digital brand recognition by properly utilising micro-influencers. Cosmetic products are becoming more and more essential for successful consumer involvement and sales development as augmented reality technology develops. By investing in AR technology, cosmetic companies provide customers with individualised, quick shopping experiences, boosting their competitiveness in the rapidly changing industry. content marketing assists cosmetics businesses in raising client loyalty, brand knowledge, and brand exposure. Investigation of the themes has helped the research scholar in examining about effectiveness of micro-influencers on cosmetic companies such as they grow engagement with the customers and know about their choices and preferences to offer them high-quality products meeting their requirements. Micro-influencers also open up doors of opportunities for the organisation to grow their business and earn productivity.
Chapter 5: Conclusion and Recommendations
5.1 Conclusion
In this conclusion chapter the concluding facts from the key findings by researching “How does online branding provide a competitive advantage in the digital era: The case of cosmetic industry” has been covered. The main focus of this research was to evaluate the process by which online branding through several social media platforms, advanced tools and approaches provide a competitive advantage in the digital era for the cosmetic industry. A critical review has been made in the literature review section and in the thematic analysis with the help of generated four themes by considering the codes. From such analysis, it has been found in this digital age the process of online branding has been proven as one of the most significant and reliable business strategies taken by the cosmetic industry to attract potential customers, increase brand equity and gain several opportunities for competitive industry. This cosmetic industry has operated social media, online shopping portals, search engine optimisation, marketing campaigns, visual try-ons and AR automation for branding. It helped to provide a clear and visual impact of cosmetics on the customers and increase brand awareness. In this regard, the cosmetic industry has faced issues of negative reviews from customers, digitalisation issues, lack of proper use of technologies and so on which requires further developments. Such as skilled employees, proper use of the resources, advanced technology to interact with customers, analysis of their feedback and improved business strategies to gain competitive advantages and amble business growth for a long time.
5.2 Linking with Objectives
5.2.1 Objective 1: “To evaluate the process so that online branding can provide competitive advantages to the digital era cosmetics industry”
From the literature review section, it has been found online branding has become essential to get a competitive advantage to have stable growth and position in the competitive market for the cosmetic industry. This industry uses several social media platforms such as Facebook, Twitter and so on, the company’s own website, different shopping applications, search engine optimisation, AI tools, machine learning and several tools to increase customer base, know their preferences and build a strong connection with customers by making them satisfied. It influences the buying behaviour of the customers by reflecting the visualised effect of the cosmetics produced by the company. The thematic analysis also represented the use of a try-on strategy by this cosmetic industry to attract customers which provides the advantage of personalising customer experience and gaining a competitive advantage. This process ensures convenience to the consumers which helps in generating competitive advantage. This approach of try-on helped the customers to get the look of using cosmetics and its effect on their skin. They can relay anyone at any time over the internet which saves their time and the chance of wastage also. Thus, customers feel it is beneficial for them which improves brand awareness, attracts customers and also increases the profitability of the company. Such clarification has reflected the success of the first objective.
5.2.2 Objective 2: “To find the impact of online branding in maintaining competitive advantages in the digital era in the cosmetics industry”
In the era of this digital age, most organisations are operating business through e-commerce mode as customers are more reneged in social media and other online platforms than in traditional mode. Using such behaviours of the customer’s online branding has become one of the greatest implement markets of the cosmetic industries as found in the literature review section. Through online branding, customers get all the details about the existing products and also the products that are going to be launched. They can easily evaluate other customers’ responses toward the products and make their own decisions. The positive or negative review of the customers and the influence of social media influencers also impact the procedure of online branding which enable the opportunities for competitive advantage for the cosmetic industries. The thematic analysis has revealed the response to feedback is also essential in terms of getting better insights into current and future beauty trends and the strategies of competitors. Based on the concept of the present competitive landscape of beauty brands analysing the customer’s feedback they can forecast market demand, future trends and ongoing market trends to foster opportunities for competitive advantage. The feedback also helps the cosmetic industry to find loopholes in their operation and expectations of the customers which take an initiative approach to create increment in brand equity and gain competitive advantage. It represented the critical research that has been made in this study which helped to accomplish the second objective.
5.2.3 Objective 3: “To find the tools and techniques used in online branding in the digital era to gain a competitive advantage in the cosmetics industry”
The use of e-commerce, social media platforms, the company’s website and other shopping applications to present a fair reselection of the products and brands to increase brand equity and brand awareness. From the literature review section, it has been found that one of the greatest implementations of technology is the use of the try-on visualisation effect. With the help of this approach, the customers are able to try the cosmetic via the web and get the visualisation effect of such cosmetics on their skin. It helps in making decisions, saving time and reducing waste. In thematic analysis, it has been found content marketing is also beneficial for promoting brand awareness and establishing expertise that attracts customers for competitive advantage. The cosmetic industry shares product details through blog posts, videos, or infographics. Thus, this research has consisted of a brief description of the tools and approaches used by the cosmetic industry which helped to accomplish the third objective as well.
5.2.4 Objective 4: “To highlight effective suggestions for further improvement of the online branding process using digital operations in the cosmetics industry”
Cosmetic brands have transferred their business operations from traditional mode to digitalisation using the web connection and several advanced technologies. Due to such a strategy along with numerous benefits, the industry also has faced several challenges as well. Such as lack of skilled employees, lack of knowledge of using technologies, interactions with customers over the internet, resistance to change strategies, negative feedback from the customers and so on which requires improvement to get competitive advantages. In the literature review section, it has been suggested that digital branding can provide offers and collaborate with beauty experts to solve beauty problems of the customers which may increase customer trust and loyalty. Quality content marketing and proper analysis of customer feedback are also appreciable. The thematic analysis has revealed that user-generated content, credibility and trust are essential to maintaining relations with customers and gaining opportunities for competitive advantage. Thus, from this clarification, it can be said that the last objective has been accomplished in this research.
5.3 Recommendations
In order to develop a strong brand image in front of customers and gain a competitive advantage first the cosmetic industry need to focus on the targeted audience and understand their needs and expectation from the company to develop production according to their demand. It makes the customers feel valued and connects them to the organisation by building their trust and loyalty to the organisation. Social media marketing, content marketing, use of social media influencers and online advertising through sharing product details, highlighting and attracting images, short videos and beauty tips for the customers also influence the buying decision of the customers which helps to increase sales volume and improve profitability rate of the cosmetic brands. Customers have become more environmentally and socially concerned thus utilising such requirements the cosmetic brand may focus on herbal and eco-friendly products that impose a green commercial effect on the environment and ensure the health and safety of the customers as well. With the help of primary data collection from the customers this recommendation will become more impactful and analyse the operation strategies needed to adopt the cosmetic brands to gain a competitive advantage through online branding.
5.4 Future scope of study
This research has been developed focusing on the secondary data collected from various books, journals, websites, and articles. Thus, in further developments of such kind of study, the primary data such as surveys or interviews from the customers and a few cosmetics brands can be considerable. It will help to connect the data with the topic and help in achieving project success. Instead of the whole cosmetics industry the use of any specific brand or any other fashion brands also can be implemented in the development of research on the same field.
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