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Lush Cosmetics Business Operations

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by

Mary Eunice Quinit

on 17 December 2014

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Transcript of Lush Cosmetics Business Operations

Lush: Multiple Perspectives
LUSH targets its market with values. These values come from the LUSH founders: quality organic and natural products, environmental sustainability and social responsibility. Products without packaging, as well as preservative-free ingredients, appeal to those who live an organic and eco-friendly lifestyle. A major tenant of the LUSH is not to test its products on animals, these vegan and vegetarian products attract consumers fighting for animal rights.
Company Leadership & Customer Connection
Changes for Lush?
How they operate
Bricks & Clicks
Lush has two cosmetic kitchens in Canada supplying the North American region
Ethical Buying - We believe that every ingredient we buy should have a positive impact on the community from which it's harvested.
Development of a Successful Strategy
Business & Core Competition
SWOT Analysis
Customer Relationship & Expectations
Passionate employees
Provides tailored in-store help and advice
Complete transparency regarding sourcing and production
Honoring its company values of trust, honesty and simplicity
Strengths
Weaknesses
Opportunities
Threats
Effective Success Model
Accountability & Social Responsibility
Participate in campaigns that align with brand values regarding the environment, humanitarian, and animal rights.
Specifically labeled products to signify brand transparency
Green Initiatives such as 100% post consumer recycled bottles 100% recycled pots and as minimal packaging.
Lush Prize
Strategies: Performance Work Environment
Strategies: Attract & Retain Employees
Hands on in store Lush training with a manager
Offer 50% discount and first availability to try new products
Measuring Performance
Technology:
Customer Value
Competitive Analysis
By: Helena Tejeda, Mary Quinit, and MaryLou Mercado
“We believe in making effective products from fresh organic fruit and vegetables the finest essential oils and safe synthetics. We believe in buying ingredients from companies who do not conduct or commission testing on animals and in testing our products on humans. We invent our own products and fragrances. We make them fresh by hand using little or no preservative or packaging, using only vegetarian ingredients and tell you when they were made.”
Change in Strategies?
"Our values are at the core of everything we do. From ethically sourcing the ingredients we use to creating fresh, vegetarian cosmetics by hand, you'll find each value in every product we create. "
External Customer Needs
Lush works with all suppliers to minimize environmental impact
Lush and their suppliers find the best possible alternatives for materials and supplies on the market
Whether it be recycled cardboard or biodegradable shrink wrap
Doing this has helped saved 300 trees, 135,000 gallons of water, 675 gallons of oil and reduced greenhouse gas emissions
Customer
CTQ (Critical to Quality) needs are satisfied
Lush knows what their consumer wants because both Lush and their target market knows what they look for in products
Lush also connects and updates their customer through many social media platforms
Facebook, Pinterest, Instagram, Twitter, YouTube, Lush Catalog, and their Blog
Consumers are able to create a Lush account
Lush newsletters via email
Earn lush points and unlock rankings
A proposal would be for Lush to do some print advertising in younger magazines such as Seventeen, Teen Vogue, Allure, and or Elle. This would help them gain a larger following amongst younger users and the products itself are already youthful, fun, and bubbly.
Lush should provide more customer value by having membership cards
It's convenient for the consumer
Collect points by purchasing products
Supplier
"Our Green Team is a group of dedicated environmental advocates, within our ranks, that volunteer to step forward and be our environmental stewards on the front lines. We also believe in campaigning with our customers to bring to light important topics"
Lush products are only sold at Lush locations
Lush policies limit where they can be sold

loyal customer based off of brand principles
Effectively involved with campaigns that align with company ideals.
Opportunities for Lush

By choosing trends that fit their brand, they can create new and innovative products
Lush can invest in advertising and not only gain new customers but they can get their message out there
Distribute in other channels and markets
Expand product lines
New opportunities to expand into ethical color cosmetics
Lush doesn't do much advertisement therefore not many people know about the brand.
Origins
Provides makeup, skincare, and body and hair care products
Products are formulated with natural and certified organic ingredients
Manufacture using combinations of renewable resources, wind energy, and earth-friendly practices
Philanthropy:
Plant-a-tree: 500,000+ trees to date
Recycling program (2009): bring empty previously unrecyclable cosmetic tubes, bottles and jars (regardless of brand) to an Origins retail store or department store counters
The Body Shop
Vision
- effective products from fresh organic* fruit and vegetables, the finest essential oils and safe synthetics
Mission
- “fresh” and “organic” have an honest meaning beyond marketing
Effective Success Model
Employee Satisfaction and Loyalty
Process and Technology
Customer Satisfaction and Loyalty
Returning customers and increase in new customers
Eco-friendly and efficient processes and technology
Passionate, humble, and focus-driven employees
Natural and ethical beauty brand
Provide makeup, skincare, hair and body care, and fragrance products

The Body Shop Core Values
:
Support Community Trade
: The Body Shop launched Community Fair Trade in 1987. Firmly believe in trading fairly with suppliers. They seek out small-scale farmers, traditional artisans and rural co-ops that are experts in their field.
Defend Human Rights
Against Animal Testing
: products are cruelty free and vegetarian
Activate Self-Esteem
Protect Our Planet

The Body Shop Foundation
:
Launched in 1990
The Body Shop gives financial support to pioneering, front line organizations that otherwise have little hope of conventional funding
Focus
: To assist those working to achieve progress in the areas of human and civil rights, environmental and animal protection
Voted one of Canada's top 50 employers of 2014
Voted Canada's 2013 Employer of the year
Using top baking and manufacturing for cosmetic labs
Full transcript