Innovative Marketing Strategies of Lush Fresh Handmade Cosmetics

            
 
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Case Details:

Case Code : MKTG160
Case Length : 21 Pages
Period : 2002-2006
Pub Date : 2007
Teaching Note :Not Available
Organization : Lush Fresh Handmade Cosmetics
Industry : Beauty care / Cosmetics
Countries : UK, Europe, USA

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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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Excerpts

Wacky Products with Wackier Names

Lush offered a variety of products in skin care, bath and body care, off-beat gift ideas, etc. All the products were handmade. It used natural and organic ingredients wherever possible. The unique selling proposition of the brand was that the products were fresh and around 70 percent of the products had no preservatives...

New Product Development

The production team at Lush had spent more than 25 years working together and Constantine acted as the major force that drove innovation at Lush. The products were prepared in places that resembled farm kitchens. The creative team was led by Mo. The team developed the products on the basis of their own personal tastes and preference. Lush drove the market by offering innovative products and then educating consumers on how to use them. Most of the product ideas were so innovative that many marketers would have had second thoughts. For instance, when Constantine proposed the idea of 'Bath Bombs' (fizzing, fragrant balls that disintegrated in the water) to the Body Shop in the late 1980s, the latter rejected the idea...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Displayed 'Naked' - Packaging is Boring!

Lush used minimal packaging for its products. For instance, it sold solid bars of shampoos and deodorants. Soaps were wrapped in greaseproof paper while products like bubble bars and ballistics had no packaging at all. The products could be carried home in paper bags. It used color-codes to distinguish between organic products and natural products...

Pricing - Lush Offers Good Value

Generally Lush's products were usually priced less than the products of companies such as the Body Shop, but more than the offerings of local competitors and supermarkets. Many of Lush's products were designed as butchers' blocks, which were priced by weight...

The Lush Experience

Lush's stores were located in prime areas. Lush was very particular about their location. They looked to place themseves in posh localities, next to stores that sold high-end items. This allowed segmentation of the customers and also acted as a form of advertising and a way of creating a premium image. Lush was a self-professed "cosmetics grocer". It drew inspiration from local businesses such as how fruitsellers displayed their ware. "I've always loved the way fruit and vegetables are displayed in a grocery store", said Constantine...

Other Channels of Distribution

Lush had a multi-channel strategy. In addition to the chain of stores, Lush ran a mail order operation and also sold its products online. Since it had a wide range of products, the mail order catalogue was used for cross-selling products to existing customers. Nicholls said, "We have many single consumables which is a good foundation for mail order as it means a lot of repeat business. People start of with the bathing range, which is easy, but I view it as an entree to some seriously good skin and hair products." ...

Who Needs Traditional Marketing?

Lush did not have a traditional marketing department. It aimed to attract customers with a superior product offering and service, an addictive in-store experience, and an ethical agenda. Constantine felt that a good product was the best advertisement for the product. In addition to this, the various gift ideas of Lush which contained an assortment of different products of Lush enabled customers to try out different products themselves...

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