OCTOBER 2021

Influencer
LM
MT Marketing
Focusing on Tiktok Platform

PROPOSED BY

Team 3 Office Administration and Accountancy- Group 1

PROPOSED TO

Anafara Trading Company

PROJECT
PROPOSAL
ANAFARA TRADING COMPANY
Anafara was established in 2020 and currently has strategic partners in
cosmetic industry. They specialized in providing supplies for wholesale
market and retail products.

THE CLIENT THE PROJECT

As stated, the company offers Influencer marketing, focusing
wholesale, retail and rebranding. on Tiktok platform.
So, the probable target market of
the company are the wholesalers,
retailers and those individual that
wanted to start a business.

PROJECT PROCESS
CONCEPTS DISADVANTAGES
01 Introduction and 03 Risk Analysis of the project
background of the
project

ADVANTAGES EXPECTED
02 Sample, Data Analysis
04 OUTPUT
and Comparison of the Return on Investment vof
Project the Project
INTRODUCTION
Effective customer engagement is the life blood of a successful business,
especially for startups business. According to Forty, marketing is more like
food than it is medicine. Fundamentally, marketing and customer engagement
is meant and done to sell or market a product. However, it is more than just a
selling- it is a brand identity campaign. In order customers to buy into a
product, your audience needs to have a solid understanding of what it does,
what it is and how it works. According to Creativs, marketing is the most
effective way to communicate your value proposition to your customers in a
fun and interesting way.

In digital transformation, Modern marketing is a less expensive game than

ever before. Social media platforms and email campaigns have made reaching
out to consumers a much more finance-friendly possibility. As Philippines has
taken the title as the “Social Media Capital of the World”, because of the high
number of hours spent by its people in using social media per day, digital
marketing has become more effective than the traditional marketing methods.
Additionally, according to statistica.com, as of 2020, around 80 million out of
108 million inhabitants had internet access. While 81 percent of the 18- to 24-
year-olds were already online, only twelve percent of those aged 55 years and
older were able to access the internet. It’s no wonder that the social media
marketing potential in the country continues to grow as more Filipinos run on
spending high amount of time in social media platforms. One of the social
media platforms that immensely succeed in the Philippine internet is TikTok.

As reported by businesstips.ph, TikTok remained the number-one most

downloaded app in the Philippines throughout 2020, and many users
downloaded the song, dance, and short video platform long before the
pandemic struck. TikTok was downloaded a total of 738 million times
throughout 2019, and since then, it has become a staple of entertainment and
media across the world and the Philippines in particular. TikTok is far from the
first social media platform to change the marketing industry. We’ve long been
using sites like Facebook, Instagram, and Twitter to create and target engaging
content for a broader audience. Many of the same lessons apply. TikTok
marketing, like any other social media marketing, requires creators to set
goals, determine metrics, and run consistent analysis on outreach and
success.
Global brands have experienced greater success in achieving their goals with
the use of features that TikTok makes easy. These include hashtag challenges,
affiliate marketing, and personalized ads with more personality.
On the surface, influencer-generated content is the most effective trends for
marketing and advertisement in TikTok. Study shows that 78% of consumers
prefer brands and companies who deliver custom content as opposed to
outright advertising. What will increase in popularity as the year progresses is
interactive content.

Partnerships like these allow companies to channel the power of influencers

to create greater brand awareness. To tap into this power in the Philippines,
marketers can reach out to the most popular stars in the region.

ADVANTAGES
Sample

Filipina vlogger who has risen to fame for her

self-titled YouTube channel. Her lifestyle and
beauty vlogging, skincare routines, and
makeup application, have helped her grow to
more than 2.3 million subscribers. She began
her YouTube channel in December 2018. She
was born and raised in the Philippines.

LETISHA VELASCO

Letisha is not only a typical

make up endorser but also a
inspirational personality
because she never let the
societal standards to control
her and to limit her in doing
her passion which is doing
make up on herself and others
that surrounds her.
DATA ANALYSIS
Influencer marketing is now a mainstream form of online marketing. It has
been a buzzword for a while now, and the mainstream media regularly refers
to it. Influencer Marketing is a hybrid of old and new marketing tools. It takes
the idea of celebrity endorsement and places it into a modern-day content-
driven marketing campaign, which is the today’s trend, Tiktok. The main
differentiator in the case of influencer marketing is that the results of the
campaign are collaborations between brands and influencers.

Influencer Marketing in Tiktok;

1.Focus on Gen Z
There appears to be an overwhelming number of Gen Z creators and
consumers. While on the one hand this may appear to be a limiting factor to
consider from the perspective of influencer marketing, it also suggests a
strong demographic niche. The matter remains that it is this group of
individuals who spend the most amount of time online and are therefore the
most likely to consume online marketing content. This means that investing in
a platform that appears to solely target one facet of society might have better
payoffs than you think.

2.Entertainment VS. Lifestyle

This actually changes the very core of influencer marketing as we know it. If
you have ever seen a TikTok video, you’ll know that they do not last longer
than 15 seconds. They are also often humorous and laid over pre-existing
dialogue or lyrics. This gives the videos that are produced on TikTok a very
distinctive style, with the main focus being entertainment value.
Brands and influencers will have to tailor their content such that it can be
informative, but also fundamentally put across in a quippy, entertaining
manner so unique to the platform.

3.Trend Oriented/ Viral Content

Not dissimilar to the point above is the fact that TikTok is very trend-oriented.
This means that viral content is dictated and decided by independent creators.
If enough people jump on the bandwagon, it becomes a trend. The only way
for brands to insert themselves within the burgeoning content on TikTok is to
take a traditional brand advertisement / influencer marketing campaign and
give it a twist.
DATA ANALYSIS
What can brands/companies achieve with influencer marketing?

1.Increase in Sales
Influencers have remarkable sway with their audiences. One survey found 38%
of shoppers rely on influencer reviews when online shopping while 30% said
they’re open to hearing from influencers several times per day. In the next
eight years, the social commerce market is expected to grow worldwide to
over $3 trillion USD, according to Statista. In the next few years, according to
eMarketer, U.S. social buyers will increase steadily from 32.5% in 2021 to
37.9% in 2025.

2. Brand Awareness and Trust

Using influencers to spread the word about products or services also involves
leveraging the trust that they've created with their specific audiences. As a
result, rather than having to start from scratch, influencer-attracted customers
are warm leads who are typically eager to buy.

3.Increase in Earned Media Value

Earned media value (EMV) is a statistic that helps brands analyze the return on
investment (ROI) of third-party marketing activities such as influencer
marketing campaigns by assigning a financial value to the number of
impressions that influencer created. Page views, unique visitors, likes, shares,
and comments on social media can all be used to track it.

Influencer marketing provides a significant boost to EMV through its broader

pool of potential customers. In fact, a research analysis of more than 5.5
million posts found the top 20 retailers, who collectively spent $172 million on
influencer marketing, generated a staggering $3 billion in EMV.

Influencer content can also be used as social proof on product pages. They
not only assist promote conversions by offering additional visual context that
persuades shoppers to buy, but they also help increase time on site.
DATA ANALYSIS
Tiktok Marketing

Tiktok might be a short, simple and small social media platform but by simply
posting a 15 seconds video can turn the table that will greatly affect an
individual or a company. Here are some Cosmetics Company that making its
way beacase of Tiktok.

·Colourette Cosmetics Company

Nina Dizon use herself as the main endorser of their product along with
different Tiktok influencer like Nana Silayro, Lenie Aycardo. Mimiyuh, and non-
popular yet loyal BA of their brand. The company is also new in the industry
and yet they doing great in the market. They surpass some famous make up
brands in Shopee and Lazada during sales season. They also gained trust from
the market because of the influencers involved in their account in Tiktok.

·The Ordinary
TikToker @kaelynwhitee shared the results of the product on her acne,
applying the blood-red serum to her face. The video has been viewed 1.3m
times and spurred over 52K unit sales directly in just two weeks. More
recently, The Ordinary has harnessed the power of staff advocates as brand
champions.

·e.l.f. Cosmetics
According to Kory Marchisotto, CMO e.l.f. Beauty: “The explosive rise of TikTok
has given marketers the ability to reach Gen-Z in previously unimaginable
ways. In October 2019 we launched our ground-breaking Eyes. Lips. Face.
TikTok hashtag challenge which started with an original music track and
quickly became the most viral campaign in TikTok US history with over 6.3
billion views and 4.5 million user generated videos to date.

·Too Faced Cosmetics

Too Faced Cosmetics Lip Injection Extreme plumping lip gloss suddenly began
selling out, six years after its 2013 release, thanks to TikTok. The product had
inspired a viral challenge, with users sharing before and after pout videos.

The brand jumped on the momentum and engaged a group of influencers on

TikTok for their next product launch, a mascara, encouraging users to show off
their lashes before and after applying the product. The strategy worked,
generating 821 million views on the campaign’s hashtag #TFDamnGirl. Now,
Too Faced’s own TikTok account has 172,300 fans and 1.5m likes.
COMPARISON
Influencer Marketing VS. Traditional Marketing

Traditional marketing refers to a form of promotion that reaches an audience

offline. Companies use marketing channels such as print, broadcast,
telemarketing or direct mail to engage their audience. And this type of
marketing seems to be off nowadays, especially in today's era in which
technology innovates rapidly.

Here are some key points why Influencer marketing is better than traditional.

1. Influencer Marketing is more focused

Traditional marketing doesn't have a target market in which make the
promotion took longer time to reach the potential customers. Influencer
Marketing focuses on a highly relevant audience, they already built the market
needed by the company.

2. Influencer Marketing is more trustworthy

People who support an influencer believes that their biases provide true and
unbiased voice and opinion unlike traditional marketing that gives scripted
lines that heard thousand times.

3. Influencer Marketing is for Every Budget, Every Business

In traditional marketing, it requires to have deep pockets to promote. On the
other hand, influencer marketing is ideal for all business with all kinds of
budget.

4. Influencer Marketing is more versatile

Traditional advertising doesn’t give much space for experimentation, while
influencer marketing thrives on options and variety. There can be a number of
ways to convey your brand’s message.
RISK ANALYSIS

1. Content format limitations

If you’re aiming to market on TikTok, you will not be able to post ads that are
simply in the form of static graphics. This means that you will always have to
produce videos and that may come as a strain on your budgets.

2. Ghost followers
Ghost followers are fake or inactive users on social media often created by
bots and they’re a big problem for influencer marketing because they don’t
actually engage with influencer content. This means that while some
influencers appear to have a large following, it’s actually fake or inflated and
will have little impact on your brand growth.

3. Audience limitation
However, it limits to over 25-30 years old that also uses cosmetics and
personal care products. This means, that consumers between these ages will
not be able to connect to the advertisement.

4. Lack of Ad history performance

The lack of competition in the TikTok ad space also serves as a double-edged
sword. There’s less data, and a lack of consensus over the dos and don’ts of
TikTok ads.

5. It is Difficult to Measure Results

You put in a lot of effort into finding the right influencers and launching a
campaign. But your efforts can be in vain if you can’t track and monitor the
performance of your campaign. You need to analyze if an influencer is able to
deliver the desired results. If not, you need to stop working with them.

However, measuring results can be a bit tricky when it comes to influencer

marketing.
RETURN ON INVESTMENT

Expected Output:

Tangible:

Average earned value per dollar spent: $5.78

Or Php 290 per P50 spent
ROI= (Net Profit/ Cost of investment) x 100
Estimated ROI= (290/50) x 100 = 580%

1.Sample ROI on investing to a Mid-tier Influencer:

Cost= P50, 000
Estimated ROI= 580%
Cost x Estimated ROI= 50, 000 x 580%= P290, 000
References:

·Menon, D. (2020), How TikTok Will Change Influencer Marketing,

https://www.linkedin.com/pulse/how-tiktok-change-influencer-marketing-
deesha-menon/?articleId=6597012357170462720
·Moore, K. (2021), Influencer Marketing Statistics 2021: How Influencers Are
Shaping Ecommerce Marketing,
https://www.shopify.com.ph/enterprise/influencer-marketing-trends
·MacDonald, S. (2021), Social Commerce Is Here and It’s Reshaping How We
Buy,https://www.shopify.com/enterprise/social-commerce-is-here-and-its-
reshaping-how-we-buy
·Benett, D. (2021), 5 Beauty Brands Killing It On TikTok,
https://www.fashionmonitor.com/blog/TmD/5-beauty-brands-killing-it-on-tik-
tok
·Digital Marketing Institute (2020), An In-Depth Look at Marketing on TikTok,
https://digitalmarketinginstitute.com/blog/an-in-depth-look-at-marketing-on-
tiktok
https://businesstips.ph/how-tiktok-is-shaping-social-media-marketing-in-the-
philippines/
https://www.statista.com/statistics/489180/number-of-social-network-users-in-
philippines/
https://starngage.com/influencer-marketing-philippines/
https://movingtargets.com/blog/business-marketing/why-marketing-is-so-
important/
https://www.maratopiadigitalmarketing.co.uk/2019/08/16/influencer-
marketing-pros-and-cons/
https://propelrr.com/blog/tiktok-marketing-pros-and-cons
https://www.theupcoming.co.uk/2020/03/20/the-pros-and-cons-of-tiktok-
advertising/
https://www.ltnetwork.co/blog/top-3-benefits-and-limitations-of-using-tiktok-
for-your-business/
Influencer Marketing ROI: The Marketers Guide to Measurement - inzpire.me
Blog
Reaching New Audiences With Influencer Marketing | Crayons & Marketers
(crayonsandmarketers.com)
Influencer Marketing Costs (2021) - Business of Apps
The ROIs of Influencer Marketing: Tangible and Intangible Benefits | SIDEBUY
(sidebuyblog.com)