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A late October Entreprenuer.com article discusses reasons why brands remain on social media. In reality, consumers mostly ignore sponsored content and advertising.

Entrepreneur contributor Bryanne DeGoede is the Managing Partner of BLND PR, a boutique agency that works with Fortune 500 companies. She points out that many consumers go to social media to check out a brand to ensure it’s legitimate. 

In short, if you’re not bringing your A-game to social media, you’re likely losing potential customers. 

So what brands are killing it on social media? Let’s examine publicly traded brand stocks with exceptional social media and even better products. 

Coca-Cola (KO)

Source: IgorGolovniov / Shutterstock.com

Unsurprisingly, Coca-Cola (NYSE:KO) has an excellent social media presence. Marketing has long been their specialty. Their “Hey Kid, Catch” is one of the most successful ads in television history

Earlier this year, KO worked with OpenAI and Bain & Company to create a platform that allows digital creatives to create original artwork from the Coca-Cola archives. The platform combines the text capabilities of GPT-4 and images from text through DALL-E. 

“We’re excited to unleash the next generation of creativity offered by this rapidly emerging technology,” said James Quincey, Chairman and CEO. “We see opportunities to enhance our marketing through cutting-edge AI.”

Certainly, Coca-Cola has the pockets to create these campaigns. The company effectively uses its social media marketing strategy to remain fully engaged with its end-user customers. The proof lies in the nearly $11 billion in operating income in 2022. 

Lululemon (LULU)

Source: Richard Frazier / Shutterstock.com

In August 2016 Lululemon (NASDAQ:LULU) direct-to-consumer (DTC) e-commerce business accounted for 19.7% of its overall revenue. 

Then, in Q2 of 2023, its DTC e-commerce business accounted for 40% of its overall revenue of $2.21 billion. Its DTC now generates more revenue than its physical stores.

That doesn’t happen without a robust digital and social media strategy, externally but also internally. 

On Oct. 20, the company won an award for its communication strategy at the 2023 Workplace Benefits Awards. It uses social media to educate its employees about their benefits.  

“We partnered with a famous influencer to create informational videos because it was a new way to target our employees and get them more engaged right off the bat,” said Jared Fu, manager of health and wealth operational excellence at Lululemon.  

The way a company uses social media can make or break them. Lululemon continues to demonstrate excellence by focusing its marketing and communications on areas that matter inside and outside the company.

Estee Lauder (EL)

Source: Sorbis / Shutterstock.com

Estee Lauder (NYSE:EL) has lost more than 50% of its value in 2023. As a result, EL stock is trading at its lowest point since August 2017. 

For years, many investors have felt bullish about the cosmetics and skincare industry. Even in tough times, people will buy some products to make them feel good. A lipstick or two can tide them over until they are more confident about their financial situation.  

In a recent earnings call, Estee Lauder CEO Fabrizio Freda discussed how the company is using TikTok. It is connecting its medical experts and brand with their customers. 

“[Clinique] is deepening its connections with dermatologists, adding powerful, instant and dermatologist-level claims, doubling down in its unique safety philosophy and activating more derm education on TikTok,” Pymnts.com reported in August. 

The company’s goal is to capture more of Generation Z who aren’t as engaged as other market sectors. 

Analysts are lukewarm about EL right now. Out of 31 analysts covering it, only 14 rate it overweight or an outright buy. Yet, they still give it an average target price of $136.86, 23% higher than where it’s currently trading. 

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

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