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Copy of LUSH: Fresh, Handmade Cosmetics

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by

Kate Sena

on 9 April 2014

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Transcript of Copy of LUSH: Fresh, Handmade Cosmetics

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
Niche Market
- Natural, green, ethical
Global
Live active and healthy lifestyles
Value all-natural, organic products
What are our competitors doing?
Who is our target market?
LUSH
Positioning Strategy
Strengths

Customer loyalty
Product quality
Means of testing products
Ingredient quality
Privately owned company
Products have low price elasticity of demand

Weaknesses

Marketing and communications strategy
Price - Expensive, but products are high quality; brand benefits.



Value Proposition
LUSH
Functional 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.
Emotional Benefits:
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.
Self-expressive Benefits
: 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
Segmenting
&
Targeting

Diverse market of all cosmetics consumers.

Brand Conscious
(price equals quality consumers. Prefer products coming from well-known stores and brands).
Habitual/Brand Loyal
(Always buy the same brand)
Confused
(Confused about the choices of products & brands)
Impulsive/Careless Buyer
(Unworried about their expenses)
Price Conscious
(Best value for their money spent)
Positioning Goals
Benefit Positioning Theme

Deliver on Promise

Consistency
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
Media Plan
Ad Creative
Highlights Lush's "We Believe" values
Showcases real images from Lush buying practices, handmade manufacturing, fresh ingredients, etc.
Features Emma Watson as endorsement
Budget
Size of Market:
Pricing:
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.

Message Strategy
Capitalize on LUSH's beliefs:
Products made from fresh, organic, fruits and vegetables
Environmentally friendly
Ethical buying
No animal testing
Beliefs set LUSH apart from competitors
"Feel good" effect for consumers
Reinforce rituals
Lush Cosmetics
Christine Casey
Kate Sena
Lilly Stairs
Robin Beaulieu
Lush Charity Pot: Changing the world with body lotion
Full transcript