ANNA-MARIYA IVANOVA | MARIA CALUGAREANU | OLGA LIPA | YORDAN DIMITROV

Group 32

• 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

Customer needs• Quality• Price• Product differentiation• Availability• Good customer service• After sale services• Image

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

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 usersUser 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

Target consumer groupTarget: 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 loyaltyProduct qualityMeans of testing the productIngredient qualityPrivately owned company

Weaknesses:Marketing & communication strategyPrice: Expensive but high quality

Positioning• Product positioning- Anti-animal testing stance

• Brand positioning:- Clarity- Consistency- Credibility- Competitiveness

Environmental FactorsPolitical

• 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

Marketing MixThe 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)

Marketing Mix

EnvironmentalFactors

LUSH

Microenvironment

Macroenvironment

Suppliers

Distributors Competitors

Customers

Social

TechnologicalEconomical

Political

Reference list• CUOnline Moodle: 208MKT - Applied Marketing - 1516SEPJAN (no date) Available at:

https://cumoodle.coventry.ac.uk/course/view.php?id=24194 (Accessed: 30 October 2015).

• PHOTOS: LUSH (2014) ‘The experimenter’ in 4K (ultra HD). Available at: http://youtu.be/vPX1N7yGheo (Accessed: 5 November 2015).

• LUSH: Fresh, handmade cosmetics (no date) Available at: https://prezi.com/xocm8fc6xjqg/copy-of-lush-fresh-handmade-cosmetics/ (Accessed: 29 October 2015).

• LUSH-target market (with images) · kwilkison (2012) Available at: https://storify.com/kwilkison/lush-target-market (Accessed: 29 October 2015).

• Lush (#10: Competitive advantage) (with images) · cherebear37 (2015) Available at: https://storify.com/cherebear37/lush-10-competitive-advantage (Accessed: 29 October 2015).

• Lush fresh handmade cosmetics (no date) Available at: https://www.lush.co.uk/ (Accessed: 28 October 2015).

• Lush vs. The body shop - why retail CEM is essential for CX (2014) Available at: http://www.nunwood.com/lush-vs-body-shop-retail-customer-experience-management-essential-customer-experience-excellence/ (Accessed: 30 October 2015).

• Recycling our black pots (no date) Available at: https://www.lush.co.uk/article/recycling-our-black-pots (Accessed: 28 October 2015).

• Renbarger, T. (no date) 5 reasons why lush has a cult brand following. Available at: http://info.elementthree.com/5-reasons-why-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: http://www.slideshare.net/manalithakkar/lush-marketing-project (Accessed: 29 October 2015).

• Topsy (no date) Available at: http://topsy.com/analytics?q1=%22Lush%22&q2=%22Body%20Shop%22&q3=%22Boots%22&via=Topsy (Accessed: 28 October 2015).