An Analysis of Influencer Marketing and Supply Chains
Open Access
- Author:
- Mc Steen, Kailey
- Area of Honors:
- Supply Chain and Information Systems
- Degree:
- Bachelor of Science
- Document Type:
- Thesis
- Thesis Supervisors:
- Robert Alexander Novack, Thesis Supervisor
Saurabh Bansal, Thesis Honors Advisor - Keywords:
- Influencer Marketing
Supply Chains
Social Media
Inventory - Abstract:
- Social media has continued to sway consumer purchasing decisions as it grows on various platforms. When there is a change in consumer purchasing decisions, the supply chain is affected as a result of this. The growth of social media has caused the rise of influencers, who have the power to convince consumers to buy certain products. The platforms of TikTok, Instagram, and Pinterest have served as a vehicle for influencers to post promotional marketing material about products for brands that they are partnering with. As a result, product demand fluctuates, which causes unknowns in inventory management and the supply chain. Supply chain managers need to be adaptable in their strategies for planning and demand forecasting. The purpose of this thesis is to give recommendations to businesses for how to best handle the impacts that paid influencers will have on inventory management and the supply chain. The research will consist of an in-depth background section pulled from outside sources due to the information being current. Case studies and an interview will also be used to illustrate certain examples of influencers posts, consumer reactions, and the resulting impact on the supply chain. The research revealed that the type of campaign, the social media platform used, the popularity of the influencer, and the timing all play a role in how a business should prepare for the launch of an influencer marketing campaign. Measuring sales lift and ensuring the marketed product is on time and in full is key for influencer marketing campaigns that target specific products in the promotion. On the other hand, influencer marketing campaigns that target brand awareness have an impact on inventory and demand. However, it is more challenging to directly tie this to one event. In this case, attaining increased mindshare of consumers will help to spur the halo effect and a return on investment. Maintaining a strong relationship between the supplier and retailer, collaborating cross functionally, and broadening supply sources are ways for a business to prepare its supply chain for the impacts of influencer marketing campaigns. Additionally, identifying the target demographic will help give the business direction for managing inventory and demand. Overall, influencer marketing will continue to impact inventory management and the supply chain, so identifying effective steps businesses can take to prepare for this will set them up for success in the future.