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LUSH: Fresh, Handmade Cosmetics
Transcript of LUSH: Fresh, Handmade Cosmetics
Who are we?
LUSH Cosmetics is a fresh, handmade cosmetics company
Ingredients: Fruit, vegetables, essential oils, safe synthetic ingredients, honey and beeswax
Produces a variety of handmade products, including soaps, shower gels, shampoos, makeup, face masks, and body lotions
What's the state of the natural cosmetics industry?
Positive: Increased interest in natural and organic beauty products particularly in the United States and Europe and worldwide sales were $9 billion in 2010 and are projected to be $14 billion by 2015
Leading Brands: The Body Shop, Burt's Bees, Origins, Aubrey Organics
Women ages 18-45
Middle --> high SES
- Natural, green, ethical
Live active and healthy lifestyles
Value all-natural, organic products
What are our competitors doing?
Who is our target market?
Means of testing products
Privately owned company
Products have low price elasticity of demand
Marketing and communications strategy
Price - Expensive, but products are high quality; brand benefits.
: A variety of top-quality cosmetics in the form of soaps, shower gels, shampoos and conditioners, bath bars, face masks, and lotions for an array of skin types; every product made with all-natural ingredients.
The dignity and respect that comes along with using products that strongly support ethical values - such as fair trade, support the ending of animal cruelty; Fresh and pure from using handmade products that are made with natural ingredients.
: Using the brand that is so outwardly against animal testing, as well as supportive of other ethical causes, your acquaintances and peers will know you have high moral standards.
STP Marketing Scheme
Diverse market of all cosmetics consumers.
(price equals quality consumers. Prefer products coming from well-known stores and brands).
(Always buy the same brand)
(Confused about the choices of products & brands)
(Unworried about their expenses)
(Best value for their money spent)
Benefit Positioning Theme
Deliver on Promise
Top 25 U.S. Consumer Magazines by Paid & Verified Circulation, and Single-Copy Sales
Pulsing strategy --> bursts of high frequency frequency in monthly magazine publications
Supplemented by online advertising with banner ads during the run of the month
Highlights Lush's "We Believe" values
Showcases real images from Lush buying practices, handmade manufacturing, fresh ingredients, etc.
Features Emma Watson as endorsement
Size of Market:
Pricing of each product differs the range of pricing is from $5.00 – $75.00
$350 million from worldwide sales annually.
Allocate 4% of sales to advertising budget.
Capitalize on LUSH's beliefs:
Products made from fresh, organic, fruits and vegetables
No animal testing
Beliefs set LUSH apart from competitors
"Feel good" effect for consumers
Lush Charity Pot: Changing the world with body lotion