Project Dissertation

on
“Study about the impact of influencer marketing on the skincare industry's
ability to influence consumer behavior and increase sales.”

FOR THE PARTIAL FULLFILLMENT OF THE AWARD OF THE

DEGREE OF MASTERS OF BUSSINESS ADMISTRATION
FROM GGSIP UNIVERSITY
DELHI
BATCH 2021-23

SUBMITTED BY SUBMITTED TO
Prince Singh Dr.Subhranshu Mohanty
ROLL No: -10218403921
MBA-18 BATCH (2021-23)
FOURTH SEMESTER
 ACKNOWLEDGEMENT

I would want to express my heartfelt appreciation to everyone who helped to make this study
feasible. First and foremost, I want to express my gratitude to the Army Institute of
Management & Technology, Greater Noida personnel and faculty members.
Every excellent study has to have a critical review and feedback process, which was carried
out by my faculty adviser, Dr. S. Mohanty. I am grateful to my faculty for investing his
valuable time in discussing and explaining the significance of different concepts and how to
think when it comes to problem discussions and theoretical discussions about this topic in
detail. My sincere thanks to my Institute who supported and encouraged me.

ii
 CERTIFICATE OF ORIGINALITY

I, Mr. Prince Singh, Roll No: 10218403921 of MBA 2021-2023, a full time bonafide student
of Second year of Master of Business Administration (MBA) Programme of Army Institute of
Management & Technology, Greater Noida. I hereby certify that this project work was carried
out by me under the supervision of Dr. Subhranshu Mohanty and the report submitted in
partial fulfilment of the requirements of the programme is an original work of mine. The work
is “Study about the impact of influencer marketing on the skincare industry's ability to
influence consumer behavior and increase sales.” is not based or reproduced from any
existing work of any other person or on any earlier work undertaken at any other time or for
any other purpose and has not been submitted anywhere else at any time.

Mr. Prince Singh Dr. Subhranshu Mohanty

Date: June, 2023 Assistant Professor (IT & Systems)
Date: June, 2023

iii
 SUPERVISOR CERTIFICTAE

This is to certify that Mr. Prince Singh is a student of Master of Business Administration,
Batch-2023, Army Institute Management & Technology, Greater Noida, and has successfully
completed her project under my supervision.
During this period, he worked on the project titled “Study about the impact of influencer
marketing on the skincare industry's ability to influence consumer behavior and increase
sales.” in partial fulfilment for the award of the degree of Master of Business Administration
of GGSIP University, Delhi.

To the best of my knowledge the project work done by the candidate has not been submitted to
any university for award of any degree. His performance and conduct have been good.

Dr. Subhranshu Mohanty

Assistant Professor (IT & Systems)
Date: June, 2023

4 of 38
 EXECUTIVE SUMMARY
Social media has changed from a venue for disseminating banal ideas and pictures to one that
is strongly impacted by advertising. Because of the information, opinions, thoughts, and
creativity that they give, these influencers—who have a sizable degree of influence and
impact—have a powerful effect on how people interact in virtual entertainment. These
influencers have a big impact on people, especially younger generations.
Beyond just promoting a product, influencer marketing is a form of promotion that goes above
and beyond traditional advertising. It increases the potential for developing a brand identity
and establishing a trustworthy connection between the target market, the brand, and the
influencer. As more individuals utilise virtual entertainment, there are more influencers, and as
a result, there are more companies adopting influencer marketing. Because of the vast potential,
the limitless audience, and their massive following, influencers excel at creating engaging
promotional material that acts as a long-term investment for any brand, regardless of size.
By examining the impact of influencer marketing on sales volume and influencer advertising
on consumer behavior in the skincare industry, this study aims to advance the field of research.

The literature review provides a comprehensive overview of influencer marketing, with a focus
on the skincare industry. Influencer marketing has a significant impact on the persuasiveness
of the leading media figures, particularly in the skincare industry. Online entertainment has an
unavoidable impact on people's lives. Due to the unique characteristics of these relationships,
such as knowledge, creativity, virality, content sharing, and community boundaries, numerous
opportunities for businesses to advertise their goods and services in the world of online
entertainment have emerged. Moreover, web-based entertainment destinations like Instagram,
Facebook, and Twitter simplify it for organizations to associate with their objective
socioeconomics and draw in new clients. Many businesses collaborate with influencers to
promote their products because of the influencers' large followings and mutual trust.
Additionally, customer preferences are significantly influenced by user reviews, which are new
ways that consumers can learn more about products through online entertainment. The market
for skincare products has experienced significant expansion, and it is well-represented on social
media platforms.
This study looks at how consumers' intentions to purchase skincare and beauty products are
affected by influencer-driven online entertainment, with an emphasis on influencer advertising.
This study also aims to identify the aspects of influencer behaviour that have the greatest
influence on consumer purchasing behaviour, given the abundance of influencers in today's
market. Choosing the right influencer to promote your product can give you a competitive edge
and boost your brand's reputation in the highly competitive beauty and skincare industry.

v
 TABLE OF CONTENT
Acknowledgement… .................................................................................................... (ii)
Certificate of Originality .............................................................................................. (iii)
Supervisor Certificate ................................................................................................... (iv)
Executive Summary ..................................................................................................... (v)

CHAPTERS
Chapter 1: Introduction ……………………………………………………………………01
Chapter 2: Literature Review………………………………………………………………09
Chapter 3: Objectives. ...................................................................................................... 16
Chapter 4: Research Methodology…………………………………………………………17
Chapter 5: Data Analysis ................................................................................................. 19
Chapter 6: Findings………………………………………………………………………...27
Chapter 7: Conclusions & Limitations ……………………………………………………29
References………………………………………………………………………………….31

LIST OF FIGURES

Figure 1.1 #SharetheCare Campaign…………………………………………………….04

Figure 1.2 #DreamBig campaign…………………………………………………….…. 06
Figure 1.3 Mamaearth Instagram campaigns………………………………………….... 07
Figure 1.4 Plum Influencer Marketing #PlumSquad…………………………………….08
Figure 1.5 #CoffeeforSkin mCaffeine Marketing…………………………………….….09
Figure 5.1 Sex and Age wise consumer engagement with influencers……………….….19
Figure 5.2 Social network most often used by examinees……………………………….20
Figure 5.3 The area of interest while choosing influencers………………………………21
Figure 5.4 Consumers perception on Influencer Recommendations…………………….22
Figure 5.5 Graph showing influencer marketing material appeal to consumers…………23
Figure 5.6 Consumers’ willingness to buy recommended product………………………23
Figure 5.7 Influencer marketing vs Traditional marketing Impact………………………24

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vii
Chapter 1:
Introduction

1
1.1 Influencer Marketing

Influencer marketing involves promoting products and services on social platforms through
influential individuals known as influencers. Influencers can be categorized as nano, micro,
macro, or mega based on the number of their followers and the average engagement on their
pages. With online entertainment being popular among people of all ages, especially the youth,
many users have become influencers due to their content and posts. Influencers are often
described by online entertainment users as virtual friends who recommend products and
services through well-crafted content. They specialize in niches such as beauty, food, fashion,
lifestyle, and create content within their areas of expertise, gradually building a following and
achieving influencer status. Becoming an influencer is directly linked to becoming a trusted
source for their followers, with a large number of people agreeing with their opinions. This is
what attracts companies to use influencers to market themselves online. They aim to reach the
influencer's significant audience and, with the help of carefully crafted advertising material,
drive sales and attention towards their brand.
As the pandemic hit the world, many individuals turned to online entertainment to express their
thoughts through various platforms such as Facebook, Instagram, TikTok, and YouTube. As
they gained momentum and popularity among users who now frequent online spaces more than
ever before, they also secured valuable brand collaborations that have now become a significant
marketing prospect in the advertising industry. More and more companies, regardless of their
size, have shifted their focus to invest in influencer marketing, which has now become a billion-
dollar industry.
The recent rise of influencer marketing is also attributed to the precise categorization of
influencers based on their niche and area of interest. Companies in a specific niche find it easier
to connect with influencers who create content in the same niche.
This allows companies to:
1 Work closely with individuals who possess expertise in their industry and can create
content and promotional material with their own knowledge in the field.
2 Reach out to the influencer's audience, who are already interested in their industry.
Influencer marketing is a hybrid of traditional and modern marketing tools. It takes the concept
of celebrity endorsement and incorporates it into a contemporary, content-driven marketing
campaign. The main difference with influencer marketing is that the campaign's outcomes are
collaborations between brands and influencers. Influencer marketing involves a brand
partnering with an online influencer to promote one of its products or services. Some influencer
marketing collaborations are less transactional and focus on enhancing brand memorability.
This research paper delves deeper into how influencer marketing has gained significant traction
and grown to substantial levels on various online entertainment platforms during the pandemic-
induced shift to the online world. It will also explore how brands and businesses have
experienced tangible benefits, sales growth, and increased visibility through influencer
marketing.

2
1.2 Influencer Marketing in the Skincare Industry

The skincare industry is enormous, projected to reach a value at USD 130.50 billion in 2021.
In the skincare industry, consumer trust is heavily influenced by user-generated results, making
influencer marketing an attractive strategy. Influencers regularly showcase the results of
skincare products, further driving the skincare industry's preference for influencer marketing
over traditional advertising methods. Influencers play a significant role in garnering the much-
needed attention for skincare brands. When a beauty influencer promotes a beauty and skincare
brand, it reaches a larger portion of the beauty brand's target audience since influencers, known
for their beauty-related content, attract followers who are either interested in the niche or work
in the industry themselves.

From the consumer's perspective, as they engage more with influencers they like and consume
their content, they develop trust in them. Therefore, if they see influencers endorsing a
particular brand, they will trust their judgment and the positive things they have to say about
the brand, eventually becoming a consumer themselves. As a result, both newly launched
brands and established brands have easily transitioned to influencer marketing to promote their
products, capitalizing on the trust influencers have gained from their followers. Influencers can
establish trust with their community of followers as they are perceived as experts. In fact, a
study by Olapic revealed that 39% of consumers rely on influencers' expertise when evaluating
the value of their endorsements.

3
1.2.1 Nivea India

Figure 1.1: #SharetheCare Campaign

Nivea enjoys a huge fan base and has successfully mastered the art of captivating online
shoppers. With 304 k followers on Instagram, Nivea India is active in the world of online
entertainment. Through web-based entertainment, the brand collaborates with uber Influencers
and sees a respectable commitment rate.

Nivea India engages influencers in their campaigns like Share the Care, which encourages
customers to take advantage of the lockdown period to demonstrate to friends and family how
much they are benefiting from using their products. Nivea India also posts about educational
articles that can be helpful to the customers.

With over 130 years of experience in the field of skincare, NIVEA has established itself as one
of the leading companies in the industry. Our commitment to meeting the needs of our
consumers is unwavering, and they take great pride in the trust they place in us. As the world's
largest skincare brand, they are dedicated to using ingredients inspired by nature to create
products that work harmoniously with the skin, body, and life of our customers, enhancing their
natural beauty and making them feel confident.

At Nivea, there employees are at the heart of our success. they value their contributions and
strive to provide them with a work environment that fosters growth and fulfilment. Team
members take pride in being part of our company, embracing our values, and representing our
brands. It is their exceptional performance and unwavering commitment that drives the
continuous development and success of Nivea.

Nivea believe in challenging our employees and empowering them with broad responsibilities.
By providing them with opportunities to excel in their respective fields, we encourage them to
surpass their own limits every day, right from the start. Our work culture is a unique blend of
a winning spirit and teamwork. We foster a performance-driven atmosphere that encourages
individual growth while maintaining a friendly and supportive environment.

At Nivea, success is achieved through the collective efforts of dedicated team. They recognize
and celebrate the accomplishments of employees, inspiring them to continually raise the bar in
every aspect of our business. Our goal is to create an atmosphere where innovation thrives,
ideas are shared, and collaboration is key, enabling us to deliver exceptional skincare products
and experiences to our valued customers.

4
In summary, NIVEA is a company built on a rich heritage and driven by a passion for skincare.
They prioritize the needs of our consumers, empower our employees, and foster a culture of
excellence and teamwork. Together, we strive to make a positive impact on people's lives by
helping them look and feel more beautiful every day.

5
1.2.2 The Body Shop India

Figure 1.2: #DreamBig campaign

An influential brand in India is The Body Shop. The brand's force to be reckoned with
marketing initiatives receive a lot of dedication, which has increased the number of fans to
842k. The company emphasizes the promotion of its stance "Against Animal Cruelty" and
makes a point to highlight the use of only natural ingredients in all its products. This has helped
them develop a devoted clientele. The brand's powerful marketing initiatives typically promote
upcoming deadlines and giveaways while also organizing awareness campaigns like Dream
Big for the rights of girls and women to fight gender inequality.
The Body Shop International Limited stands as the original pioneer in the realm of natural and
ethical beauty brands. Our heritage is a remarkable tale of groundbreaking achievements.
From being the first to introduce Body Butter to the market, to utilizing manufactured musk
instead of cruelly extracted deer musk in fragrances, and revolutionizing the beauty industry
with fair trade ingredients, The Body Shop has consistently led the way in innovation.
For the past 40 years, we have exemplified how businesses can be a force for good, inspired by
the visionary approach of our founder, Anita Roddick. Our commitment for the next 40 years,
Enrich Not Exploit, encompasses three vital components: Enrich Our People, Enrich Our
Planet, and Enrich Our Products.

Our primary purpose is to create a positive difference in people's lives. We achieve this by
crafting exceptional quality products that utilize the finest natural ingredients, leaving your skin
feeling nourished and revitalized.

With a presence in over 68 countries and more than 3000 stores worldwide, we are dedicated
to reaching out to customers across the globe. We continually expand our reach through the
launch of e-commerce sites, the establishment of sub-franchise businesses, strategic
partnerships with selective wholesalers in new markets, and the addition of new Global Travel
Retail locations.

At The Body Shop, we remain committed to our core principles of promoting sustainability,
social responsibility, and ethical practices. We strive to make a lasting impact on individuals,
communities, and the planet as a whole. Our ongoing mission is to enrich lives while preserving
and cherishing the natural beauty of our world.
In essence, The Body Shop International Limited is a brand driven by a profound passion for
making a difference. We embody the belief that beauty goes hand in hand with ethical choices
and a commitment to a brighter future.

6
1.1.3 Mamaearth

Figure 1.3: Mamaearth Instagram campaigns

Mamaearth, which launched in 2016, hurried to climb the ladder of online entertainment. With
1.2M followers on Instagram a few favourable reviews from online entertainment Influencers
and customers as a whole, the brand that brags of poison and mercilessness-free goods has won
the hearts of its customers. The Instagram campaigns of Mamaearth are packed with a variety
of content, from picture-arranged gifts to IGTV recordings. One such company is Mamaearth,
which initially relied on influencer marketing to advance, and after it became successful,
enlisted the help of celebrities for its advertising campaigns.

Mamaearth is an Indian startup that provides a variety of cosmetic products to improve its
customers' daily skin care routines. Partners Varun Alagh and Ghazal Alagh established it in
2016. With an initial investment of about 90 lakh INR from their own funds, they launched the
business. The company gained over 1.5 million new customers since it burst onto the scene.
Wares from Mamaearth.

The business offers an extensive selection of toxic-free cosmetics. It offers a variety of skin
care, hair care, and baby care products. Large brands like Johnson and Johnson, Himalaya, and
others are in direct competition with Mamaearth.

The company takes advantage of the growing trend of including organic products in daily skin
and hair care regimens. They were one of the first companies to deal with the current use of
non-toxic seals for cosmetic products. They become a real game-changer and the customer's
preferred brand in the cosmetic and skincare sector as a result

7
1.2.4 Plum

Figure 1.4: Plum Influencer Marketing #PlumSquad

Skincare company Plum, also known as Plum goodness on Instagram and has 721k followers
on instagram, has made a name for itself in the industry solely through the use of persuasive
influencer marketing. Due to its virtual entertainment presence, the brand has completely
gained fame. Plum publishes enticing skincare hacks that receive a lot of attention in addition
to force to be reckoned with crusades. Plum aims to maintain its feed full of content from all
structures with Influencers using a relaxed substance system. Additionally, each post from
Plum encourages customer interaction, which is excellent for the brand.

Plum cruelty-free skincare, makeup, haircare, and bodycare products are created using
formulations that are all about "good science," which combines natural ingredients with active
ingredients that are supported by science to create goodness that actually works.

8
1.2.5 mCaffeine

Figure 1.5: #CoffeeforSkin mCaffeine Marketing

The locally produced caffeinated personal consideration brand only attained enormous
popularity as a result of formidable advertising. The company invested heavily in Instagram
influencers and made sure that no level of powerful individuals was overlooked. The brand
decisively collaborated with everyone, including tiny Influencers and nano forces to be
reckoned with. Their deals were significantly expanded by the viral force to be reckoned with
crusades, which also brought them the necessary attention. What this all boils down to is that
mCaffeine actually relies heavily on powerful advertising and is experiencing amazing success.

9
 Chapter 2:
Literature Review

10
2.1 Influencer marketing and its impact on consumer behaviour
By: - Cobain, Barker (In year 2020)

In recent years, influencer marketing has gained significant traction as a powerful tool for
promoting products and shaping consumer behaviour. The concept of trust plays a crucial role
in influencer marketing. Traditional advertising methods, such as celebrity endorsements, are
often viewed as less authentic, as celebrities are perceived to be paid to promote products they
may not genuinely care about. On the other hand, influencers have built their following based
on their passion and authenticity, making them more likely to promote products they genuinely
believe in. This builds trust with their audience (Cobain, 2020).

Another reason for the growing momentum of influencer marketing is the rise of ad blocking.
People tend to prefer hearing from influencers rather than being bombarded with traditional
advertisements. This trend indicates that influencer marketing and user-generated content have
a significant impact on consumer buying behaviour (Cobain, 2020).

Consumers are more likely to trust peer recommendations over brand advertisements.
Influencers, especially those in the online entertainment realm, hold significant sway in this
regard. If a product is accepted within an influencer's circle, it immediately enhances its
reputation and association, giving the strongest voices within a group substantial influence over
the initial relationship (Barker, 2020).

Studies have shown that influencer-generated content plays a crucial role in shaping consumer
purchasing behaviour. It is considered more reliable, genuine, high-quality, and appealing
compared to traditional marketing content. Additionally, the content transformation that
influencers bring is something traditional advertising lacks, thereby increasing its immediate
impact on audiences' willingness to purchase a product (Stefan Zak, 2020).

Experts have always had an online presence, but influencers have leveraged their expertise to
influence consumer purchasing behaviour. Influencers are trusted because they are transparent,
understand and respect their audience, do not endorse products dishonestly, and provide
genuine value for both brands and their followers. Trust is a key factor in influencer marketing
(Wiley, 2019).

Influencers can also offer unique and engaging ways to deliver a brand's message. They
discover new personalities, products, application techniques, tricks, and tips that resonate with
their audience. This creates a relationship between influencers and their followers, rather than
just a one-way sales channel commonly associated with brands and agencies (Kramer, 2019).

11
2.2 Impact of influencer marketing on company sales
By: -Aka, A.Encourage ( In year 2016 or 2019)

Influencers on social media platforms like Twitter have been shown to make existing
advertising campaigns more effective. Exposure to brand tweets has been found to significantly
increase purchase intent among consumers compared to those who did not see any promotional
tweets. Furthermore, when brand and influencer tweets are combined in a campaign, the boost
in purchase intent doubles (Aka, 2016).

Many marketers believe that influencer marketing attracts better-quality customers who are
more likely to recommend products to their friends and family. Blogs and Facebook are
considered the most effective platforms for influencer marketing, surpassing YouTube,
Instagram, and Twitter. Marketers see influencer marketing as the fastest-growing channel for
acquiring customers online, surpassing organic search and email marketing (Encourage, 2019).
Marketers rate influencer marketing as one of the fastest-growing channels for customer
acquisition online. It outperforms affiliate marketing and display advertising and is quickly
becoming one of the primary online marketing channels. With significant returns and revenue
generation, budgets for influencer marketing are expected to continue increasing in the coming
years (Encourage, 2019).

Influencer marketing has been shown to influence consumer behaviour across different age
groups. A significant number of consumers who discover new products, services, and brands
through influencers leave product reviews. This behaviour is more prevalent compared to the
average digital consumer, and it holds great value for brands seeking.

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2.3 Evolution of Influencer and Rise of Influencer Marketing
By: - Conick (in year 2018)

The term "influencer" has gained significant recognition in recent years within the marketing
industry. While there is no single theoretical definition for the term, influencer marketing refers
to the practice of leveraging external individuals who have the power to influence consumers'
purchasing decisions. This form of marketing focuses on influencers who have a large
following on digital platforms and use their influence to promote a brand's message to their
target audience.

Compared to other online sources, influencers have been found to earn consumer trust (Conick,
2018). Consumers often go to great lengths to avoid traditional advertisements by utilizing ad
blockers, and in this context, influencer marketing is considered non-intrusive and more
engaging. In the digital space, influencers on platforms like Facebook, YouTube, and Instagram
have emerged as strong and trusted sources. They are employed to facilitate two-way brand
communication and influence their online followers towards specific brands (Market hub,
2016). Marketers also employ influencers to engage with consumer segments that typically
ignore or avoid advertisements (Conick, 2018).

Most marketers recognize the importance of using influencers to build authentic relationships
with their customers. A report by the Association of National Advertisers (ANA) in April 2018
revealed that approximately 58% of brands had partnerships with around 25 influencers in
2017, indicating a desire among marketers to establish deeper connections between influencers
and consumers (Conick, 2018).

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2.4 Influencers in the Beauty & Skincare Industry
By: - Werner Geyser, Bianca Classen (In year 2021)

The beauty and skincare industry were one of the early adopters of influencer marketing,
leveraging online entertainment and influencers to reach their desired target audience.
According to a Forbes survey, 42% of young people between the ages of 18-24 draw inspiration
from online entertainment and influencers in the realms of cosmetics and skincare. This
industry is so pervasive that there are over 490 million beauty-related hashtags.
Recommendations and reviews from fellow consumers or individuals within our personal
circles often hold significant influence over our decisions. According to MSLK, user-generated
photos are trusted four times more than traditional advertising. Seeing real people like us
provide tips and share their "beauty secrets" not only in stills trust in the brand but also creates
a sense of peer pressure and fear of missing out. User-generated content is not only highly
effective but also cost-effective for brands, as it is abundantly available across various channels.
A recent study by Harvard Business School found that 62% of women follow beauty
influencers on social media, with content creators ranking highest in terms of influencing
product purchasing decisions, followed by third-party product reviews and beauty experts.
Some social media influencers have built incredibly strong communities over the years,
enabling them to exert significant influence over the beauty industry. Take the example of
Bianca Classen of Bibi's Beauty Palace. She is one of the most popular German influencers
with 7.8 million followers on Instagram and has the power to spark nationwide trends with her
beauty tips and tutorials.

2.4.1 Platform Perspective

Instagram remains the most important social application for beauty brands, with 90%
of all beauty-related posts in 2020 published on the platform. With features that allow
brands to integrate links to their websites or e-commerce shops, Instagram is an
excellent platform for showcasing products to younger audiences. It is also the primary
platform for influencers to display their content and engage their audiences through
makeup looks, video tutorials, giveaways, and more.
With over one billion monthly users, YouTube continues to be a vital channel for
brands, especially due to the popularity of video content and product tutorials. However,
the pandemic accelerated the trend towards short-form videos, as evidenced by the rise
of TikTok and Instagram Reels. With over 100 million daily users, mostly from Gen Z,
and algorithms that encourage virality, these short videos have emerged as important
platforms for brands.
2.4.2 Brand Perspective
According to a GWI report, younger consumers have discovered more brands through
advertising on social apps than any other media. As a result, it comes as no surprise that
beauty and skincare brands are increasingly shifting their advertising efforts to online
entertainment platforms, where they thrive. In fact, a report by Launch Metrics found
that 85% of marketing professionals named Instagram as one of their top-performing
channels. With consumers spending more time on social media platforms, engaging
with their beloved content creators, brands are increasingly partnering with influencers
to reach their target audiences.
While the Western market has expressed concerns about the decline of the online
Influencer industry, in India, 73% of surveyed companies on the Bazooka influencer
platform stated their intention to increase their budget allocation for influencers. For
example, Mamaearth used influencers to increase its revenue by 6.5 times to Rs 110
crore in FY20, according to a report by NEXTracker (2021)

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 Chapter 3:
Objectives

1. To study the impact of influencer marketing on consumer behavior with respect to

skincare industry.
2. To study the impact of influencer marketing on sales volume in skincare industry

15
 Chapter 4:
Research Methodology

16
The technique used in this research is a Systematic Literature Review, as discussed in the study
by Jani Jarnfors (2018). The purpose of a Systematic Literature Review is to provide guidance
for similar studies, summarize the current literature on a subject, and assess conflicting
evidence (Petticrew & Roberts, 2006). This method relies on recommended journals and
published papers that offer empirical data and guidance based on the authors' research. It aims
to provide a comprehensive and reliable view of what works and what does not. In this literature
review, the focus is on studying the impact of influencer marketing on consumer behaviour and
sales volume, while also providing recommendations on the use of influencers in endorsing
products and services. Since there is limited, available literature combining influencer
marketing and the skincare industry, the goal is to create a theoretical model based on the
current available data.

The purpose of this literature review is to understand and identify what previous studies have
found regarding influencer marketing and the skincare industry. By synthesizing research on
both topics, this paper aims to fill the existing knowledge gap in a general sense. Additionally,
it will examine the gaps or unanswered questions left by previous research in this area.

The data used in this literature review is secondary data, which refers to information collected
from pre-existing sources. Various papers, articles, archives, and online sources were consulted
to identify the variables of the research and develop the questionnaire. The data collected from
these sources will be used to interpret the conclusions for this specific report.

Qualitative analysis, which involves hypothesis generation rather than hypothesis testing, is
exploratory in nature (Bryman and Bell, 2007; Malhotra, 2010), and is sometimes associated
with the inductive research approach. In this literature review, a potential theoretical framework
identified in previous research is used to guide the analysis. The framework is adjusted and
applied within the context of the current study, allowing the findings to be understood in
relation to the theoretical model. Therefore, the current study adopts an Inductive Analysis
Approach, proposing a version of reality that is constructed based on empirical findings and
facts from previous research that are "reconsidered in the light of each other" (Alvesson and
Skoldber, 2009). Inductive reasoning starts with detailed interpretations of the subject, which
then lead to more general statements and concepts. When employing an inductive approach,
the researcher develops experimental hypotheses and identifies underlying relationships as they
progress through the research. No hypotheses are formulated at the initial stages, and the
researcher is uncertain about the type and nature of the research findings until the review is
complete. This approach is often referred to as a "bottom-up" method of understanding, where
the researcher uses observations to construct an abstraction or make sense of the phenomenon
being studied.

17
Chapter 5:
Data Analysis

18
In accordance with the precise writing survey, the analysis of the literature was carried out
physically. The authors of the study "Effect of Influencer Marketing on Consumer Behaviour"
(June 2019), Zrinka Blazevic Bognar, Nikolina Plesa Puljic, and Dominik Kadezabek, used a
sample size of 200 consumers to assess the effectiveness of the influence of recommendations
made by influencers on altering consumers' perspectives and behaviour when making
purchases. Understanding the perspectives of the customers on forces that must be taken into
account was the main goal of the actualized investigation. We collected 200 study polls. A
comfort test served as the examination.
Figure 5.1 shows that more than 50% of consumers surveyed out of 200 follow influencers for
recommendations.

Figure 5.1 Sex and Age wise consumer engagement with influencers

19
Figure 5.2 shows the social media platform which is mostly used by consumers to follow
influencers.
It was found out that Instagram is the leading social media platform for influencer marketing.
Facebook was also one such platform where consumers engaged with influencers.

Figure 5.2 Social network most often used by examinees

20
Figure 5.3 shows that these consumers are heavily consuming information on the Beauty
industry, and also fashion industry is the area of interest for consumers.

Figure 5.3 The area of interest while choosing influencers.

21
Figure 5.4 shows the impact of influencers on behavior of users when purchasing.

Figure 5.4 Consumers perception on Influencer Recommendations

The results of the research suggest that, even though consumers are unaware of the influence
of influencers on their purchasing decisions, the repeated declarations of forces to be reckoned
with have a significant impact on consumers' consideration. However, customers do not always
buy the products recommended by the force to be reckoned with; instead, they frequently do
their research, and what is more important from an advertising standpoint, they comment on
and recommend the products to their friends and family. In light of this, it is generally assumed
that the message spread by Influencers reaches a much larger, more interested group through
word-of-mouth rather than just their own small following.
The main finding from this study is that 61% of respondents say they choose an item
recommended by an influencer when comparing it to the alternatives. This finding confirms
the study's hypothesis that the power of promotion fundamentally influences consumers'
behaviour and pursuit of choices when they shop.
The following information was provided based on 10 questions that were posed to the
customers who were of the appropriate age group, 13 to 30 years, in a further study led by
Misshka Gupta that focused on the Impact of Influencer Marketing (2021).
The most popular figures to be reckoned with on the online entertainment stage were probably
those in the Beauty and Fashion niches. In collaboration with brands, these influencers offer
amazing giveaways and codes to their followers, which increases consumer interest in the brand
and helps influencers grow their fan bases.
.

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Figure 5.5 shows that the majority of consumers agree that influencer marketing content appeals
to users and makes them want to check out a brand or buy a product.

Figure 5.5 Graph showing influencer marketing material appeal to consumers

Customers believe that products/brands promoted by powerful people are trustworthy because
they seem to be beneficial, tested, high caliber, dependable, captivating, persuading, and are
available at reasonable prices. They also acknowledge that the influencers they admire will
only ever recommend top-notch goods or brands for the benefit of their followers. Additionally,
if the product is globally produced, consumers may research the brand even if they decide not
to purchase from it. Customers have also mentioned that an Influencer's friendliness directly
affects how agreeable a product or brand is, which in turn influences customers' purchase
decisions.

When asked if they might want to make a purchase of the items recommended by the forces to
be reckoned with, the majority of them responded in the affirmative, saying they had already
made a purchase of the suggested items and would continue to do so going forward.

Figure 5.6 Consumers’ willingness to buy recommended product

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The Figure 5.7 shows consumers perception on whether the influencer marketing is more impactful than
traditional marketing.

Figure 5.7 Influencer marketing vs Traditional marketing Impact

A significant portion of the study's customer sample agrees that force to be reckoned with
promotion is more successful and effective than traditional advertising. Mentioning the
pandemic in particular as a sponsor of this kind of advertising. These clients acknowledge that
Influencers "companion" themselves with their followers by posting tidbits of their daily lives
and seamlessly incorporating advertisements, giving the impression that they are truly
persuading.
Since people are more likely to be interested in products if they believe they are coming from
someone they have chosen to interact with whose qualities and decisions match their own, a
few different clients have noticed that influencer marketing is more effective than traditional
advertising. When compared to conventional advertising structures, it is also a highly appealing
location for them. Finding out what might fit their way of life more than conventional
promotion takes out, in most cases, since customers end up following influences like their taste
and body shape.
The Next Big Brand (July 2022) focused on the marketing strategies employed by mama earth
that helped them secure revenue of more than 110 Cr in FY 20 in order to comprehend the
impact of force to be reckoned with showcasing the advantages and deals of the company in
the skincare industry.

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The data given by them is given below in graph form.

One such company, Mamaearth, entered the market with the help of influencers by reaching
out to a larger audience and then working with celebrities. In order to increase its scale, the
brand heavily relied on Influencer marketing, and the increase in revenue is obvious.
In order to increase its working income from the mere Rs 460 Cr it acquired in FY21to almost
Rs 943 Cr by the end of the financial year in March 2022, and their total expenses was on
March 22 was Rs 942 Cr.

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Chapter 6:
Findings

26
The findings of the study reveal the impact of influencer marketing on consumer behaviour and
sales volume in the skincare industry.

The following key points emerged from the research:

Problem-Solving Approach:
In the skincare niche, influencer marketing focuses on addressing consumers' skin issues.
Unlike other industries, skincare brands cannot solely rely on visually appealing product
displays. They need to communicate the usefulness of a particular product and how it can make
a difference in consumers' skin. Consequently, many skincare content ideas revolve around
problem-solving.

Selecting Perfect Influencers for the Brand:

The skincare industry requires extensive research in terms of product selection and influencer
collaboration. Brands in this industry are meticulous and research-oriented when it comes to
implementing influencer marketing campaigns. They carefully choose influencers whose
message aligns with the brand's authenticity, and consumers can relate to them. For instance,
when launching an under-eye cream, collaborating with beauty influencers who personally
experience the problem and can showcase how the product solves it would be ideal.

Encouraging User-Generated Content (UGC):

Skincare brands heavily rely on user-generated content, just like other industries. UGC plays a
significant role in the skincare industry because consumers rely on social media influencers for
trying new products or gaining information about them. The rise of nano influencers has
contributed to an increase in UGC on social media. Positive reviews from nano influencers and
word-of-mouth have helped several new brands expand their audience and consumer base.

Exposure on Different Social Media Platforms:

Influencer marketing enables skincare brands to reach a wider audience on various social media
platforms. Influencers are present across different platforms, providing brands with more
opportunities to promote their products effectively.
These four findings demonstrate the importance of influencer marketing in the skincare
industry. Brands in this industry should consider utilizing an influencer tracking platform to
curate impactful influencer campaigns.

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 Chapter 7:
Conclusions, Limitations

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a) Conclusions

The study concludes that customers find influencer marketing persuasive and authentic when
products are advertised through various content formats such as dramas, funny videos,
inspirational content, and more. Many traditional consumers have made purchases based on
influencer recommendations and consider them to be their best purchases. They believe that
influencers take special care of their preferences.
Influencer marketing significantly influences customers' purchase decisions, with
approximately 8 out of 10 customers buying or considering buying a product based on
influencer endorsements. It has increased awareness of brands, products, and options available
for purchase while providing incentives such as discounts and deals.
Influenc1er marketing has helped consumers discover market trends and make informed
purchase decisions. For many, influencers have become a trusted source of recommendations
that they heavily rely on before making a purchase. It has become a significant factor impacting
customers of all ages and preferences.
In conclusion, influencer marketing has become a key success factor for beauty and skincare
brands across their entire marketing channels. It helps raise awareness, build brand
communities, drive e-commerce traffic, and increase sales in traditional retail. The
opportunities it presents are vast.

b) Limitations

The study has several limitations, including:

1. Sole reliance on secondary research.
2. Limited access to data due to limited research available on the topic.
3. Dependence on certain information or sources obtained from social media, which may
be subject to limitations.
4. A narrow perspective on the entire topic due to the scope of the study.
5. Variable data as consumer opinions and preferences can change over time.

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