Katie Graf's questions to Olaplex Holdings Inc (OLPX) leadership • Q4 2024
Question
Speaking for Jonna Kim, Katie Graf asked why marketing investments are taking longer than anticipated to drive customer acquisition, how the 2025 marketing plan differs from last year, and what management considers the right level of marketing spend as a percentage of sales for long-term growth.
Answer
CEO Amanda Baldwin explained that building a long-term brand takes time and the company is shifting to a full-funnel 'demand creation' phase, which has a longer payoff period than short-term performance marketing. COO & CFO Catherine Dunleavy stated that the company is investing aggressively in 2025 to reignite the brand and will discuss long-term margin and marketing spend targets after gaining more learnings from this year's initiatives.