Sustainable Packaging Practices at Lush Fresh Handmade Cosmetics
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
Case Code |
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BECG081 |
For delivery in electronic format: Rs. 300;
For delivery through Shipping & Handling Charges extra: Rs. 300 +Shipping & Handling Charges extra
ThemesSustainability Management/ Sustainable Packaging/ Social
Marketing |
Case Length |
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18 Pages |
Period |
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1995-2007 |
Pub Date |
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2008 |
Teaching Note |
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Available |
Organization |
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Lush Fresh Handmade Cosmetics |
Industry |
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Beauty Care /
Cosmetics / Retail |
Countries
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Europe, USA |
Abstract:
The case is about Lush Fresh Handmade Cosmetics (Lush), a UK-based manufacturer
and marketer of ethical beauty products with nearly 500 stores worldwide. The
case focuses on the sustainable business practices of Lush, with a special
emphasis on its sustainable packaging practices.
At a time when the world was experiencing an explosion in packaging due to the
increasing importance of packaging as a marketing tool, 65 percent of Lush's
products were sold 'naked'(i.e. without packaging). The rest of the products
came with minimal packaging. The retail chain used just enough packaging so that
the products reached the residence of its customers safely.
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It used grease proof paper, reusable tins,
paper bags made from recycled materials and rewarded its
customers for bringing back their containers and shopping bags.
In 2007, it started using popcorn as loose fill instead of
shredded paper (many other companies use polystyrene chips) in
its shipping package. The same year, Lush also started a
worldwide campaign 'Get Naked'against excessive packaging by
the industry. The much-publicized campaign strove to educate
consumers regarding the adverse affect of packaging waste on the
environment and urged them to shun excessively packaged products
in favor of minimally packaged or 'naked'products.
Lush, which marketed fresh and natural handmade products, had
leveraged on its new product development to come up with
'category defying'products such as solid shampoos, solid
conditioners, deodorants, massage bars, and solid bubble bath,
which required no packaging. Moreover, these products were
designed in the form of eatables such as cakes, cheese,
ice-creams, and other desserts, and were displayed in the store
in the form of an old-fashioned delicatessen. Experts felt that
Lush through all aspects of its business – packaging practices,
natural products, against-animal-testing stance, support for
fair trade, decision to not use mass-media advertising and not
go public to sustain its ethical practices – displayed a strong
commitment to sustainable development issues and also
successfully differentiated itself from its competitors. They
felt that a key reason for the success of Lush was its corporate
culture with everyone from the directors to the people working
in the stores sharing the values of the brand.
Issues:
» Understand the issue of sustainable packaging and how Lush successfully
differentiated itself with respect to its competitors in this regard.
» Understand how Lush, through its product and packaging decisions coupled with
its strong ethical stance, differentiated itself in the competitive beauty
industry.
» Appreciate the importance of the role of corporate culture in corporate
sustainability.
Contents:
Keywords:
Sustainable packaging, New product development, Fair trade,
Ethical trade, Public relations, Retail, Integrated marketing, Innovation, Lush
Fresh Handmade Cosmetics, Body Shop
Packaging is Rubbish!
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