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Lush presentation FINAL


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Lush presentation FINAL

  2. 2. • Beauty specialist • Fresh handmade products • Founded in 1995 by Mark Constantine and Liz Weir • Unique customer approach • “We believe our product are good value, that we should make a profit and that the customer is always right.” (Lush, 2015) History
  3. 3. Customer needs • Quality • Price • Product differentiation • Availability • Good customer service • After sale services • Image
  4. 4. Differentiation • Unique marketing approach: -Handmade products -Original design -Instore display -Packaging • Corporate Social Responsibility: - Support for non-profit organisations (Save the Sharks, All Out) • Lush vs. Body Shop & Aubrey Organics: -Customer excellence
  5. 5. Segmentation Customer Segmentation Behavioural Psychographic Profile Benefits sought: A quality, non-chemical, ethical product. Higher level of service in store, in store explanation of products. Purchase Occasion: Mostly regular (daily basis); + special occasions i.e. Christmas, Easter, Halloween Purchase Behaviour: habitual/ brand loyal User status: Regular users, with a growing emphasis for new users User rates: Heavy user Perceptions and beliefs: Niche market –natural, green, ethical; Value all natural, organic products Geographic: mostly urban centres. Socio-economic: Middle to high SES Lifestyle: Achievers, strives and survivors, (healthy lifestyle) Personality: Brand conscious (price=quality consumers). Price conscious (best value for the money spent); Impulsive/Careless buyer (unworried about their expenses); Confused (about the choice of products/brand) Demographic: Women ages 18-45
  6. 6. Target consumer group Target: Like minded people interested in environmental and ecological issues, chemical free products, not testing on animals & fair trade sourcing of ingredients. (Thakkar et al.,2013) Strengths: Customer loyalty Product quality Means of testing the product Ingredient quality Privately owned company Weaknesses: Marketing & communication strategy Price: Expensive but high quality
  7. 7. Positioning • Product positioning - Anti-animal testing stance • Brand positioning: - Clarity - Consistency - Credibility - Competitiveness
  8. 8. Environmental Factors Political • Import & export regulations • Government legislation • New EU– Cosmetic Product Regulation (Key Notes, 2013) Economical • Economies of scale • Economic growth • Price competition lowering margins of the company Social • Trends • Consumer attitude • Campaigning for non-profit organisations Technological • Average shelf life cannot exceed 14 months • Contain chemicals that can prolong their shelf life (CPTA,2014) Macro LUSH Microenvironment Macroenvironment Social TechnologicalEconomical Political Suppliers Distributors Competitors Customers
  9. 9. Marketing Mix The four P’s: Product, Price, Place and Promotion are very important to Lush. • Product - Offbeat, differential - Unconventional names (Sex Bomb) - Relatable shapes • Price - Weight - Consistency - Competitive & varied • Place - Multichannel strategy (106 stores in UK) (Lush,2015) - Online - Store locations • Promotion - Word of mouth - Everyone is a marketer & everything communicates (Thakkar et al.,2013)
  10. 10. Marketing Mix Environmental Factors LUSH Microenvironment Macroenvironment Suppliers Distributors Competitors Customers Social TechnologicalEconomical Political
  11. 11. Reference list • CUOnline Moodle: 208MKT - Applied Marketing - 1516SEPJAN (no date) Available at: (Accessed: 30 October 2015). • PHOTOS: LUSH (2014) ‘The experimenter’ in 4K (ultra HD). Available at: (Accessed: 5 November 2015). • LUSH: Fresh, handmade cosmetics (no date) Available at: cosmetics/ (Accessed: 29 October 2015). • LUSH-target market (with images) · kwilkison (2012) Available at: (Accessed: 29 October 2015). • Lush (#10: Competitive advantage) (with images) · cherebear37 (2015) Available at: competitive-advantage (Accessed: 29 October 2015). • Lush fresh handmade cosmetics (no date) Available at: (Accessed: 28 October 2015). • Lush vs. The body shop - why retail CEM is essential for CX (2014) Available at: retail-customer-experience-management-essential-customer-experience-excellence/ (Accessed: 30 October 2015). • Recycling our black pots (no date) Available at: (Accessed: 28 October 2015). • Renbarger, T. (no date) 5 reasons why lush has a cult brand following. Available at: lush-has-a-cult-brand-following (Accessed: 29 October 2015). • Thakkar, M., Dalmazzo, M., Cretan, S., Singh, A., cardona, Tescari, E., Fan, E., Petersen, R., Kue, E. and Chloe, G. (2013) Cha Jin. Available at: (Accessed: 29 October 2015). • Topsy (no date) Available at: (Accessed: 28 October 2015).