Frank Body Scrub: Turning one of the world’s largest export commodities into an online beauty revolution

In 2013, a coffee shop owner by the name of Steve was inspired by opportunity when approached by two female customers asking for his old coffee grounds in Melbourne, Australia. The two females wanted to use the coffee grounds as a body scrub, to remove dead skin and cellulite. Instead of dismissing this unusual idea, Steve saw an opportunity. Why not make a commercial beauty product from fresh coffee grounds? After a year and a half of operations, with a 200-gram bag of coffee scrub sold approximately every 50 seconds, it is estimated that Frank will reach $20 million in sales this year.

This figure may be perplexing at first and many questions may arise. How did they become so successful in such a saturated beauty market and who would pay such a high price for something you can make at no cost after you enjoy a freshly brewed pot of coffee at home? Selling at an average price of $17.45 CAD, beauty fanatics across the world were filled with skepticism and doubt as seen by the handful of beauty reviews on Youtube with the same theme, “Is Frank Body Scrub Worth the Hype?” Apparently it is. The majority of testimonials and beauty reviews have all been very positive, spreading web a communication to all other users that the product is actually viable. However, it is not just the unusual concept of using coffee grounds as a beauty product that attracts Frank’s consumers; Frank’s hype is supported by an extremely strong social media marketing strategy.

Reaching half a million Instagram followers in a matter of one year, Frank has an incredible knack for establishing a relationship and emotional connection with its consumers by personifying their product as a confident and seductive male. It has become a social phenomenon for Frank’s customers to post half naked photos of themselves with coffee grounds on their face and body, unconsciously marketing the brand to their social circles. Customers also frequently tag the company in their Instagram posts and their connection with the brand is strengthened when Frank reposts their photos onto its own Instagram page, coupled with witty lines like “Get Franked” and “I have arrived yet you still have your pants on. I’m confused.”

Looking at the structure of the beauty and cosmetic industry, it is dominated by large players such as Sephora and Estee Lauder, who have deep marketing budgets and significant brand loyalty. These companies traditionally sell through brick and mortar stores and hire store associates to demonstrate the products to consumers, making an experienced work force a key success factor. With no physical store locations or retail partners, Frank sells and distributes its body scrubs and new line of creams through its international online store, using e-commerce to its advantage.

Frank clearly has been able to innovate on multiple levels against the industry standard, however the most important insight that can be obtained is how Frank used product, marketing and distribution innovation to achieve massive cost reductions. Companies are often very focused on segmenting their consumer group and developing products to target specific demographics. This translates into a significant amount of money managing an unimaginable number of SKUs, R&D efforts, multiple marketing initiatives, specialized packaging and manufacturing costs. Because Frank’s product is universal and consists of small alterations to the same base product, they are able to reduce a significant amount of costs, increase their profits and reinvest back into the company. Furthermore, the most obvious cost reductions have come from adopting a social media marketing strategy and using e-commerce to significantly reduce marketing and distribution costs. Frank’s social media strategy essentially uses their own customers as sales employees to communicate product benefits to others, which allows the company to operate solely as an online company. All in all, we can all be inspired how simple idea could grow to be such a profitable business in a matter of a few short months.

Originally published at innovationblg.tumblr.com.