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Instagram Influencer Marketing Creating a Winning Strategy Case Solution

Solution Id Length Case Author Case Publisher
2850 1760 Words (8 Pages) Abhishek Rishabh, Philip Zerrillo Indian School of Business : ISB241
This solution includes: A Word File A Word File

Satix, a French fashion and cosmetics firm, charged Sean Jean De Ville, the digital marketing head of the shampoo products section, with examining the possibility of influencer marketing on Instagram. With a budget of $500,000 allocated for this new promotional strategy, Sean researched the trend of employing multiple small influencers instead of a single big celebrity or macro-influencer. He narrowed down his options to two influencers, Abby and Billy, with one million followers each, or one big influencer, Cassie, with 1.5 million followers. The average impression rates for Abby and Billy were 5% each, while it was 2.5% for Cassie. However, the click-through rate (CTR) for Abby and Billy was 1%, compared to 2% for Cassie. Abby and Billy together would cost $500,000, while Cassie demanded $450,000. Sean presented this data to the CEO, who requested a more comprehensive analysis with hard data and recommendations that align with the company's objectives of both short-term sales and reputation.

Following questions are answered in this case study solution

  1. How does social marketing and the use of influencers work?

    a. What is influence marketing?

    b. What is an influencer?

    c. Why do they have value?

    d. How do you think firms choose influencers?

    e. How does social marketing influence work, i.e., how do influencers get paid?

  2. Should Sean recommend employing a single macro-influencer or multiple Micro-influencers?

  3. What metrics and analysis should Sean use to decide the right strategy? And why?

  4. What is the role of the product/ product category in selecting the right influencer(s), i.e., product-influencer interaction

  5. What additional factors should be kept in mind when making social marketing decisions, followed by a wrap-up of the discussion?

Case Analysis for Instagram Influencer Marketing Creating a Winning Strategy Case Solution

1. How does social marketing and the use of influencers work?

Utilizing well-known people on social media platforms to promote goods or services is known as social marketing, specifically influencer marketing. In the case study, Satix discusses how a company uses Instagram influencers to market its shampoo products. Influencers like Abby, Billy, and Cassie, who have sizable fan networks, may produce content highlighting the brand and appeal to a broad audience. Through their influence and trustworthiness, they can increase brand recognition, engagement, and even conversion rates. Case study emphasizes the practice of using several small influencers, often known as micro-influencers, as compared to depending entirely on a single major celebrity. This technique makes use of the more specialized and specific audiences that smaller influencers may access, which might lead to more engagement and increased marketing plan efficacy.

a. What is influence marketing?

A marketing tactic called influence marketing, commonly referred to as influencer marketing, is collaborating with prominent people on social media platforms to promote goods or services. Influencers use their sizable and active online fan bases to promote products, spread awareness of them, and generate interest among their audience.

b. What is an influencer?

An influencer is someone who has a sizable following, knowledge, and established authority on social media networks. They have the power to influence the beliefs, actions, and spending patterns of their followers.

c. Why do they have value?

The ability to contact and influence a certain target demographic makes influencers valuable. Their followers develop a sense of confidence and credibility in them because of their genuineness, knowledge, and relatability. This trust results in more engagement, greater brand loyalty, and perhaps even better revenue for the businesses they work with.

d. How do you think firms choose influencers?

Firms select influencers depending on a variety of criteria. These include the influencer's relevancy to the business and target audience, the caliber of their material and how well it adheres to the company's core principles, the demographics of their audience, their levels of interaction, and their overall reach and impact.

e. How does social marketing influence work, i.e., how do influencers get paid?

There are several ways to pay influencers. They might be paid in cash, given free goods or services, paid as an affiliate, or any combination of these. The payment arrangement frequently depends on elements, including the influencer's audience size, engagement rates, and the type of partnership.

2. Should Sean recommend employing a single macro-influencer or multiple Micro-influencers?

For Satix's Instagram influencer marketing plan, Sean ought to advise using several micro-influencers instead of a single macro-influencer. The practice of using several small influencers or micro-influencers rather than a single major Influencer is highlighted in the case study. This strategy offers a number of benefits. First off, because they are more closely connected to their smaller, specialty audiences, micro-influencers frequently have better engagement rates. Billy and Abby show the potential for efficient interaction with their 5% impression rates and 1% CTR. Satix can tap into various audience groups and take advantage of various demographics and interests by utilizing a number of micro-influencers.

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