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LUSH Christmas products - PR Plan

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by

Sandrine Chabanne

on 14 November 2013

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Transcript of LUSH Christmas products - PR Plan

SWOT Analysis
Executive Summary
PR Campaign for the launch of LUSH special line of products for Christmas
36 special products, designed for Christmas (shape, scent...), sold for a limited period of time

High quality, eco-friendly & eye-catching products which can be good Christmas presents

Time frame : Nov. 18th to Dec. 29 (6 weeks)

Problem : Inform and create good perception of the Christmas products created and sold by LUSH
Our PR Plan Proposal
Executive Summary

Situation Analysis

Goal & Objectives

Target audience

Key messages

Strategies

Tactics

Budget
LUSH and its market : Publics' perception
Current opinion of the public
aware publics have expectations about the quality of the products in terms of composition, freshness and design

LUSH customers are loyal ; they may know that in the past LUSh has special products for Christmas,and expect it for 2013

a big part of the target market may not have a high awareness level about LUSH, its products, its values or its events
LUSH & its competitors
very competitive industry, especially in Korea (The body shop, l'Occitane, Nature Republic, Its skin,...)

LUSH : very distinctive positionning (high end products, strong values, few packaging, beautiful and nice smelling products)

Other shops may hold events and launch special products for Christmas, but not as many as LUSH ~ but it may not be well known that LUSH has such a wide range of special edition products
Why did we chose this Core target ?

The brand is principally designed to attract women (product characteristics and benefits)
Expensive products : cannot target teenagers
Young women : because the products designs and catchphrases may appeal better to them
people with a modern urban lifestyle because it fits LUSH distribution strategy
people with strong values, because it echoes to the brand values
expensive and fancy products, with special designs in limited edition are well-suited for a present
if the products are given as presents, they will reach new potential customers
Our secondary target :
Men, with a modern and urban lifestyle, who want to give their girlfriend a Christmas present.
Target Audience
Key messages
We launched a special line of products to brighten your and your special ones' Christmas (affective dimension)
Our limited edition product are as fresh, organic and responsibly produced as ever, and they are even more unique with their special design (cognitive dimension)

Strategies
S1. Increase the presence in media to present the new line of products

S2. Let people create unique presents with LUSH products

S3. Let consumers feel more involved with the brand and link it to their happy memories of Christmas
BUDGET
Strenghts

Weaknesses

Opportunities

Threats
Weaknesses
Relatively low market share
No traditional adverts to increase consumer awareness (words of mouth)
High price, which can be a barrier for consumers
No attractive packaging (70% of the products have no packaging) - can be a problem for presents
The strong smell can be repulsive
Accessibility : few distribution points in each country
Strenghts
Fresh products, handmade & locally produced
high quality, fewer health issues
attractive : as if each product is unique
consistent with CSR : organic, few packaging...
Distinctive positionning
High brand awareness among key publics
Well percieved brand image
Good innovation capability
Loyal Customers
major revenues = repeated purchases
major promotion = recommandations
Efficient experiential marketing in stores (smell...)
Important role of sellers (name on packaging...)
Good revenues and funds
Opportunities
Continuous growth of the industry
Increasing concerns about health related issues among consumers
huge increase in demand for organic products since 2004
increasing willingness to pay
Growing interest of the consumers for environmental issues and companies CSR
Christmas = period when people buy more and are less sensitive to prices
High demand for handmade products
Threats
Large number of competitors (with diverging positionning in terms of concept and/or price range)
Need to often innovate to remain competitive
Industry regulations (health, environment)
Consumers might doubt LUSH sincerity (about its values and the actual manufacturing process)
Large number of substitute products for Christmas presents
Variety of Christmas traditions depending on regions (weaker traditions in Asia)
Situation Analysis
What is LUSH ?
Cosmetics & Care products
Created in the UK in 1994

Global brand (> 800 shops in 52 countries)
Annual sales : about $350 million (2011)

Strong brand identity :
"Fresh handmade cosmetics"
"Happy soap for happy people"
Organic high quality products
strong values (against animal abuse,
environmental & social responsibility...)
LUSH in Korea
Goal : Raise awareness and create good perception of LUSH Christmas products among key publics
PR Campaign - Goal & objectives
Main goal reflected in the following objectives
Increase sales by 10% during the campaign period (6 weeks)

Because...
An increase in sales reflects good perception of products launched
A primary goal of a retailing company should be to sell its products
Increase favorble recommandations online (on official pages) by 10 % by Dec. 29
Because :
Good comments reflect satisfaction
Since LUSH relays a lot on words-of-mouth,it is important that customers show their satisfaction
the trend online may reflect the behaviors offlne
Have at least 40 publications in blogs & magazines by Dec. 29 (end of the campaign)
Because :
The publications will help to raise awareness among consumers interested in the topic (not necessarily aware of the brand) who may buy the products
Consistent with the current advertizing policy (few traditional ads, words-of-mouth)
secondary target : men in love
Women, 18 to 40 years old, with a modern urban lifestyle, concerned with environmental issues and product safety, looking for a remarkable present
Core target
Key messages - things to consider
What to emphasize ?

What are the publics' current attitudes and knowledge ?

What does the target want to hear ?
current attitudes and knowledge
relatively good awareness of the brand and its vaues and of the product lines,
customers (esp. the less loyal) may not know the existence of special editions,
even though there is a high loyalty most customers do occasional purchases more than regular ones (price + special design),
LUSH customers look for originality AND quality : health and environmental issues anre major drivers and increases the willingness to pay but its the originality which differenciate LUSH from its competitors
What the targets want to hear
these products will help you create a Christmas mood (display the design) and make it last longer (use),
as a present it will be remembered by its originality (1st impression) and usefulness (satisfaction in use),
it will make the reciever smile...,
...and will help him take care of his health with good quality products.
What to emphasize ?
limited edition for Christmas,
same product quality and benefits,
fun and eyecatching designs adapted to the occaion,
special and almost unique products which can be an original present for people you especially care about
Tactics
4 Tactics to implement the strategies
Press Release online & article in LUSH magazine
Related to S1
Present the products to raise the publics awareness

why in LUSH magazine ? Inevitale, as it's one of the primary ways for the brand to provide updated information, reaches the consumers which are the most likely to buy these products (already interested), no additional costs,
why online ? wider target (inluding unaware publics looking for present ideas), can be shared by inluencing bloggers, minimize the costs

expected : increase awareness,
comments, visits in shops
Event in stores :
Make your present unique
Related to S2
From Nov 25 to Dec 25 (5 weeks 1/2)
In stores, provide customers with organic elements to customize (some of) the freshly made products (glitter, tiny stars/hearts/... , pens)
Provide Christmas cards (recycled paper)

Why ? The product itself (not the packaging) is customized, the customer feels involved and can make a more personal present, likely to increase christmas sales and customers loyalty
Possible (with some products) because they are made in stores by employees, not a high cost because the elements are ordered in big quantities
Contest online : share your memories with LUSH
Related to S3
From Dec 1 to Dec 25
contest on SNS : share your childhood memories while using LUSH products to describe them (with pictures or comparisons for ex). Each day, the personn whose memory gathered the most comments wins a LUSH product (coupon sent through internet).
Advent calendar, which reminds how many days are left before Christmas

Why ? Very wide potential audience, publics feel a bond with the brand, people like to talk about themselves on SNS, generate lots of (favorable?) comments online, cheap to implement, creates
an incentive to visit shops (coupon)
VIP event in LUSH Spa
Related to S3
On Dec 24.
In LUSH Spa (Seoul), hold an event for 7 members of LUSH VIP Club and 2 of their family members/friends/lovers - randomly chosen
While giving treatment, provide original cupcakes and drinks looking like LUSH Christmas products.

Why ? It creates an opportunity for the customers to get to know and buy the products, through this experience LUSH customers create memories linking Christmas to LUSH, likely to increase sales and loyalty

Thank you for your attention !
5 shops in Seoul
annual sales : about 30 bn won

1 Lush spa in Seoul
opened in 2012

good brand awareness
regular promotional events in stores
very few followers on SNS
T2 : Customize presents
directly related to sales : impact on fewer people who are expected to raise revenues

cost for 1 present : about 500 won

in Korea, revenues = 2,500,000,000W/month
with a 10% increase = 2,750,000,000W
1 product on average = 15,000W
=> about 170 000 products sold a month
If 25% are bought as presents = 42,500 products
=> expected cost = 42,500*500 = 21,250,000W

usual elements ordered in wider quantities
=> negligeable additional logistic costs
T3 : SNS contest
wide potential audience
dematerialized : cheap to implement

contest duration : 25 days
prize cost : 5,000 W to 10,000 W (lower than the selling price)
=> 150,000 W in total
no additional logistic cost

resource needed : employee (salary)
+ 150,000 W in gifts
T4 : VIP Event
Only reaches a few people, but who are loyal to the brand and willing to pay a high price
20 to 25 VIP

cakes and drinks cost
= about 18,000 W/ person
+ organization costs

Resource needed = employee (salaries)
+ 500,000 W
T1 : LUSH Magazine & online
Wide audience
enable exposition, but doesn't garantee retention => shouldn,t weight too much on the budget

no additional cost for LUSH magazine (released every month)

low cost of press release online (free in many platforms) - SEO work needed

resource needed : employee (salary)
+ 150,000,000 won
Total budget = 22,000,000 won
( = 8,8 % of the expected direct additional revenues)
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