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 Contd...

Ethical Roots, but not 'Preachy'

Lush prided itself on its ethical stance. Constantine was responsible for the original 'Against Animal Testing' campaign in 1985, which Body Shop had been espousing ever since. Lush did not test its cosmetics on animals and did not buy raw materials from suppliers who did not share the same policy. Lush had even convinced a couple of suppliers to move to a non-animal testing policy. Lush tested its products on human testers instead. It did not use plastics and its policy of minimal packaging prevented hundreds of thousands of bottles from ending up in landfills. Even its passion for natural products (most of them devoid of preservatives) was doing its bit in preventing damage to the environment...

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

Managing Growth and Geographical Expansion

Lush managed to cultivate a global following for its brand. Constantine felt that it was consumer demand rather than Lush's ambition that was at the root of Lush's rapid growth. The expansion was slow and deliberate, but prompted by various people from different countries who wanted to set up Lush stores in their own countries. For instance, expansion into Croatia was prompted by the 1996 visit of Milenko Markowic, a Croatian clothing entrepreneur, who approached Lush. As of late 2006, Lush had five stores in Croatia...

Competitors Beware!

Analysts felt that in a very short time, Lush had outdone many of its well established competitors. Its growth rate was faster than that of the Body Shop during the same stage of development. It was reported that Alliance Boots Plc was forced to launch its own 'fresh' range in 2000 on account of Lush. Its success also prompted Estée Lauder to call up Constantine in early 2000s to enquire if he was interested in being acquired. A similar move from LVMH was also resisted...

Truly Iconoclastic

Lush had grown to enjoy a cult brand status. According to Ritson, every aspect of Lush's operation exuded brilliance and the brand was moving toward an "iconic power brand" status. Lush had developed a loyal and evangelical customer base. It was not uncommon for its customers to pool their resources to purchase Lush products in bulk and arrange a get-together when the products were delivered. Lush was very close to its customers and listened to them seriously. In fact, the name of the company was also given by a customer from Edinburgh, UK - Elizabeth Bennett...

The Other View

Some experts felt that Lush's success notwithstanding, it should opt for more traditional advertising. They felt that Lush's reliance on in-store advertising could be counter productive as the competition in the segment was intensifying. Matt Connolly, director of Enable, said that Lush's customer was a 'SEGOR' (someone with 'sustainable, ethical, green, organic or responsible' attributes)...

Future Outlook

Constantine's vision was to have 1,000 Lush stores around the world by 2008. He admitted that the biggest challenge in expanding the number of stores was not financial resources, but availability of stores in the right location and at the right price. He said, "We'd like around a thousand stores, but we are very picky about sites." He also wanted to strike the right "balance between perfect ingredients and reasonable prices."...


Exhibit I: The Logo of Lush
Exhibit II: Countries where Lush Stores are Located
Exhibit III: Some Products of Lush: Fit to Eat?
Exhibit IV: A Lush Life - Lush's Brand Proclamation
Exhibit V: Lush's Celebrity Fan Following
Exhibit VI: Views from Lush Stores: Welcome to the "Beauty Deli"
Exhibit VII: Screenshots of Lush's Websites

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