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LUSH CASE STUDY

Mmmm lush
by

Rob Collins

on 23 January 2013

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Transcript of LUSH CASE STUDY

DEFINITION Introduce a "Created by you" product line... The word LUSH is not translated or re-branded in any country they operate in Online
- Promotes ethical campaigns and activities they have endorsed
- Promotion around the Spa initiatives
- Includes an ‘our values’ section
- A section around new products placing emphasis on their constant innovation
- Discussion board on product range
- Lighthearted webinars from people who design the products Brand Loyalty Brand Association Brand Quality Brand Name
Awareness Dibb & Simkin,
2000 Fresh handmade/Natural Ingredients
No animal testing (not even associated suppliers)
Colourful and happy environment
Human rights (Introduction of Fair Trade policy)
Minimal Packaging

Ethical responsibility is growing becoming more important to consumers "Lush customers are prepared to pay for what they regard as superior products" Positions its sites in premium, high foot-fall areas
"A 'strong' brand adds to the value of a product or service."


"Customers will pay more for a strong brand" LUSH conveys greenness, freshness and a certain amount of frivolity

The LUSH name is standardised throughout all its stores around the globe. As a result of the competitive advantage
LUSH hold over its rivals, many of their
customers are loyal/regular customers.

The difference between LUSH and the rest
of the market is there ethical beliefs and
as a result of this the customers it attracts
stay loyal to these beliefs and to the LUSH
brand. ROLE "Branding is the act of impressing a product, service or business on the mind of a consumer or set of consumers. The process could last a lifetime or for as long as the consumer remains in a demographic group." Positioning Map Our Idea
Make it yourself in-store, give it a name, label it yours, take it home or give as a more personal gift

Why would this work?

Do it yourself strategies implemented successfully by companies such as Moonpig & Build a Bear

Differentiation from competitors. Also allows education on Lush's naturally sourced products to emphasize international ethical practices.

How would it be implemented?

Optional product pricing strategies
Training for staff to deliver naturally sourced education
Main channels would be 'In-store' & 'Social media'
Social media facilitates viral advertising to share their product creations globally LUSH THE BODY SHOP SUPERMARKET
OWN BRANDS IMPERIAL
LEATHER Products – Globally standardised Marketing Activities & Customer communications – Share common themes but can be executed differently due to cultural differences Websites – All websites are localised via content and some imagery * Cost of operating factories locally to ensure outlets receive fresh products in different countries
* Different levels of disposable income available in different countries e.g. Asia.
*Difficult economic climates, people looking at home alternatives than spending money in spas. * Reliance on road, rail, sea and air for transportation. Logistics of getting fresh products to store needs to be considered with a 6-month life cycle on the products.
* Development of new concepts which could be more efficient, cheaper and environmentally friendly. * Alternatives to environmentally damaging products such as palm oil that was causing destruction to rainforests in Asia
* Sustainability on farming from sourcing so much raw material * Minimum wage and ensuring correct working conditions are provided
*Meeting ethical trading standards in all countries they operate in
* Adhering and implementing their own Supplier Specific Boycott Policy – ensuring suppliers are adhering to non-animal testing LUSH Times magazine - Articles focused around promoting a fun vibrant image and how their products can improve your life
- A large focus on their social responsibility and saving the environment
- Use of an order form to purchase In-Store
- Strong aroma from products
- Bright and vibrant
- Friendly staff who actively look to help and advise Social Media
- Used primarily to engage with their audience and promote LUSH's conservation efforts and the prevention of animal testing and cruelty
- Links to the LUSH Times magazine and sales they have running also featured
- YouTube videos around benefits of products
- A large social media base of 340k Price Quality L'OCCTAINE Shallow distribution chain helps them control mark up

However, close to the price floor due to competitor pricing and high production costs using natural and ethically sourced ingredients. * Consumers becoming more environmentally aware with emphasis on CSR
* The trend to be "Co-creators" is becoming more prominent. Consumers are ever more involved with a products design and features in such an instant feedback loop Competitively prices products Price Quality BODY SHOP A repositioning strategy would have to keep production costs low whilst maintaining a competitive price with its close competitors.

It could include more price strategies such as optional or captive product pricing. L'OREAL L'OCCTAINE NIVEA Differentiates itself through product innovation and image DOVE ASDA
OWN BRAND "Lush, with its strong appeal, positions itself as a provider of affordable, everyday indulgences with a young and funky image." - Little to none
- low mark-up already
- Maintains integrity of premium brand "Product bundle pricing" Price adjustment strategies Cost to Lush . . . . . . Economic Technological Environmental Social Legal Lush Product lines Kotler & Keller,
2012 BCG Matrix Peripheral Offerings Cosmetics Business, 2010 Political *Countries becoming more liberal with freedom of information, giving ethical issues more visibility. Kotler et al, (2009), defines a product as "anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need." Lush Retail Ltd, 2013 Vaid, 2003 Glaser, 2008 Kotler, 2002 Positioning Map L'OCCTANE LOREAL
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