STRATEGIC INITIATIVE
table of contents
EXECUTIVE SUMMARY 3 HISTORY 4
MISSION 5
6-7 COMPETITOR OVERVIEW 8 COMPETITOR PERCEPTUAL MAP 9 BEAUTY INDUSTRY 11 TRAGET CONSUMER 12 NEW STRATEGIC INITIATIVE 13 TECHNOLOGY INTRODUCTION 14 KEY PARTNERSHIPS 15 OPERATIONAL PLAN 16-17 PROPOSED LOCATION 18 SIMILAR INITIATIVES & FUTURE COMPETITORS 19 IN STORE DISPLAY 20-23 COMMUNICATION & PROMOTIONAL PLAN 24-25 FUTURE IDEAS 26 HIMIRROR MOCKUP 27 LUSH + HIMIRROR APPLICATION MOCKUP 28 CUSTOMER PROFILES 30-32 BUDGETING SPECIFICATIONS 33 COSTING BREAKDOWN 34 OMNI CHANNEL AUDIT 35-37 THE COSMETICS INDUSTRY 38 CONCLUSION 39 BIBLIOGRAPHY 40 SWOT
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LUSH COSMETICS
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STRATEGIC INITIATIVE
EXECUTIVE SUMMARY
The LUSH Cosmetics family have been around since the ‘70s, bringing fresh, natural cosmetics to people around the world. While LUSH officially began in 1994, the ideals came from years of testing and improving on the existing cosmetics industry standards.
While LUSH has an existing competitive advantage, a new strategic initiative is needed to keep engaged with the constantly changing marketplace. LUSH believes it is important to constantly adapt to the needs and wants of the consumer.
LUSH found immediate success, quickly opening over 650 stores in around 43 countries. LUSH considers themselves a positive company filled with people searching for the best natural solutions to everyday skin problems.
By developing a new cosmeticsfocused smart mirror, LUSH is providing a personalized customer experience for every shopper that walks through the door. Through this, customers will no longer have to wonder if they are truly being given the best product for their needs, creating a new level of trust for LUSH customers.
Based out of England, LUSH is a privately owned company, choosing to operate independently rather than working under the umbrella of a larger cosmetics company. The brand is full of completely organic products that are always fresh and answer any customers needs and expectations.
We believe this will be a fantastic addition to the existing LUSH shopping experience, as it builds upon the most positive aspects of LUSH while creating solutions that engages the modern consumer audience, as it will show LUSH’s unique dedication towards improving customer experience and retention through innovative, and useful, technologies.
As the leading natural cosmetics company in the industry, LUSH operates an environmentally friendly manufacturing and production system, bringing the LUSH values into all points of the supply chain. Everything in the LUSH product is natural, from the packaging to the actual product being used, answering the unique need in the industry for clean cosmetics.
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LUSH COSMETICS
Constantine and Weir
Cosmetics To Go
Lush
1977 - 1984
1987-1994
1995 - To Present
• Headquartered in Poole, UK • Founded by Mark Constantine (a trichologist) and Liz Weir (a beauty therapist) in 1995 • They met in a hair salon in Poole, England and a few years later they decided to start their own business selling natural hair and beauty products (wasn’t successful because their products were so innovative and different and as a result their commercial value wasn’t that great) • In the early 80’s they offered some of their products to Body Shop and eventually they became Body Shop’s biggest suppliers
• They were purchased out by the Body Shop • Started Cosmetics To Go a mail order business (but they were a victim of their own success, because they expected it to last only for a month but they got more orders than they could handle and eventually sold the company)
• Started experimenting with buying fresh things like oranges, lemons, and cinnamon from the supermarket to put it into soaps • Re-opened their store in Poole • Launched a competition for customers to give the company a new name, and someone came up with LUSH which is defined as being fresh, green, verdant, and drunken women • They then started to take outside investments which allowed them to expand • LUSH progressively grew and, in time, bought back their old product names and formulas from both Cosmetics To Go and Constantine and Weir. • They now have 700 stores and factories in over 40 countries
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MISSION
STRATEGIC INITIATIVE
We believe in inventing and making our own products ethically from the healthiest ingredients and in the most humane and green way possible, while encouraging selfappreciation through promoting joy, relaxation, and cleanliness to all. 5
LUSH COSMETICS
STRENGTHS • Unique brand identity/ customer experience • Green policy/ethical sense • Has remained independent in ownership • Cruelty-free practices • Philanthropic mindset • Strong Corporate Personality • Customer Loyalty • Omni channel presence/ social media/ecommerce
oppurtunities • Recent initiative to begin expanding store size in North America • Lush Spa Experience expansion to become a staple in top stores • Create a more universal omni-channel experience. • Implementing more technology into store experience • Blending technology into customer experience to provide more information on products and life span possibilities
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STRATEGIC INITIATIVE
weaknesses • Higher price point • Stores are in small spaces and get congested easily • Lack of online presence and marketing • Products can have a short lifespan, making consumers wary. • Geographic limitations for certain consumers cause issue.
threats
• Lower Cost competitors • Consumer’s lack of interest in choosing ethical -product over preferred traditional cosmetic and beauty products • Lack of technological initiative, causing lack of presence in younger market • Growth in number of brands utilizing ethical standards to make makeup
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LUSH COSMETICS
MARKET OVERVIEW High tech
low price
high price
low tech
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STRATEGIC INITIATIVE
Competitor Perceptual map
In the natural cosmetics market, Lush’s main competitors are The Body Shop and Origins Cosmetics, as they offer similar product and experience to Lush. Other competitors would include L’Occitane, Kiehl’s, and BlueMercury. The Body Shop International has 2,400 stores in 62 countries. Their products are “inspired by nature.” The company has operated under the L’Oreal umbrella since 2006. The Body Shop offers a similar product mix to Lush, with products focused towards skin, face, and hair maintenance. The Body Shop offers products sourced through similar suppliers as Lush, offering natural ingredients and a large product mix. Origins Cosmetics is a natural product based cosmetics brand started by Estee Lauder in 1990. Focused on being natural but scientific, the brand truly keeps to their 100% natural mission. Origins uses 100% natural ingredients and makes sure their manufacturing processes are environmentally friendly. L’Occitane, Kiehl’s, and BlueMercury are competitors for Lush primarily in technological innovation and unique customer experience and retention methods.
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LUSH COSMETICS
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STRATEGIC INITIATIVE
BEAUTY INDUSTRY
In 2015, Lush reported revenue of 515 million pounds ($632,574,500) with a 31.3 million ($38,697,750) pound profit before taxes. As for the industry as a whole, the cosmetics industry, or rather, the beauty industry has a market of over $62 billion dollars, as stated from a report drawn in January 2016. As for the other retailers in the industry who are already employing this technology in the beauty/cosmetics market are: dermatologists, practitioners, and medical spas. No major cosmetic/ beauty brand is implementing this technology, thus why being first on the trend to this new technology is an imperative move for Lush. If not implemented as soon as possible, it is highly likely that Lush’s competitor’s such as: Kiehl’s, Sephora, The Body Shop, The Elemis line at Bergdorf Goodman, Olay, and Vichy handheld scanners in CVS. Not to mention that Sk-ii beauty imaging system is currently available at select Saks fifth avenue locations.
The organic beauty and cosmetics market has seen easy growth over recent years, especially in the wake of the all-natural, health craze that has began in the late 2000s. Natural products are beginning to be offered in all platforms, expanding the possibilities for natural cosmetics in the overall beauty industry. In 2011, skin care was the main market point, growing by 32.1%. Natural skincare is also expected to continue its growth by 9% by 2018, showing the continued future potential of the natural cosmetics industry. Lush, itself has gone from a singlestore business into an international cosmetics giant that has changed the way customers shop and experience their cosmetics. In 17 years, Lush has expanded into 850 shops in 51 countries. This growth has allowed Lush is outpacing its competitors, such as The Body Shop, very quickly to make the brand number one in natural cosmetics. Lush also experiences a competitive advantage with their commitment to their cruelty-free, natural ideals, while also touching on social issues that connect with the young audience that brought Lush to prominence.
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LUSH COSMETICS
TARGET CONSUMERS
Demographics • • • • •
Gender: Female / Some male Age:18-35 Income: $95,000+ Education: College degree Location: Primarily in North America & England • Seeks out ethical and cruelty free products, very health conscious, demonstrate their insatiable appetite for innovation novelty and individuality, appreciate authentic and unique experiences
Psychographics • Prefers to be outside to using technology for entertainment, but enjoys integrating some technology into her more natural experience. • Prefers an organic diet, possibly vegan or vegetarian • Puts a lot of focus on her skincare and beauty regimen • Has a disposable income to buy multiple products that fit her skin needs. Willing to pay more for an individual or personalized beauty experience. • Active in the community around her, always working with environmental, social, and various other foundations.
ATTITUDES • Environmentally and ethically conscious • High self - motivated and confident 12
STRATEGIC INITIATIVE
NEW STRATEGIC INITIATIVE
Through in-store technological innovations, we seek to enhance the LUSH Cosmetics customer experience by optimizing the matching of LUSH product to customer skin problems. To do this, we want to integrate skin imaging technology into a mounted smart mirror that will analyze the consumers skin to pair with perfect LUSH product for both their personal preferences and personal skin issues, utilizing the best aspects of LUSHs in-store experience and technological innovation.
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From there, customers will have access to the LUSH HiMirror mobile application to see their beauty profile, which includes an analysis on their skin issues and what LUSH product would be needed to perfect any issue.
LUSH COSMETICS
TECHNOLOGY INTRODUCTION
LUSH’s new strategic initiative capitalizes on the latest trends being seen in the cosmetics industry. When observing the LUSH customer experience, we noticed that there is a missing link between the customer experience being offered and the customer experience that is desired.
To do this, LUSH will partner with HiMirror technologies to adapt their existing smart mirror specifically to the LUSH customer’s wants and needs. The HiMirror is a smart mirror that analyzes user’s skin and discovers different issues, such as dry skin, redness, and moisture levels.
To do this, LUSH will implement a new smart mirror technology into their stores that analyzes customer’s skin and pin points their issues, creating a personalized beauty profile with product solutions.
The integration of HiMirror technologies into LUSH stores will not only increase LUSH’s understanding of customer wants, but also increase the overall store experience that will attract both returning and new customers.
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The LUSH HiMirror itself will provide customers with an indepth skin analysis and will then suggest LUSH products for the user to solve the issues. The information will display on the mirror to begin before being transferred to the LUSH HiMirror interface for customer’s to access and learn more about their unique beauty profiles. This initiative will answer the existing problems within the LUSH experience, by integrating technology into the store that will enhance the LUSH message on the importance of all-natural, cruelty-free cosmetics.
STRATEGIC INITIATIVE KEY PARTNERSHIPS
HiMirror Application
FUZZ App developers
HiMirror is subsidiary of New Kinpo Group, a global electronics manufacturing services (EMS) and original design manufacturing (ODM) company that offers its customers lower costs, faster delivery times and world-class product quality.
Fuzz App Development is an app developing company in Brooklyn, New York focused towards creating specific applications for independent companies. This company specializes in unique projects that create an application that answers any question a user could have. With experience in creating integration systems, as well as in coding applications to be easily manageable, FUZZ is the perfect third-party partner to help LUSH accomplish their goals.
HiMirror is the premier product in the smart mirror industry. To create the LUSH HiMirror mobile application, LUSH will take the best aspects of the existing HiMirror platform and integrate it with a LUSH product recommendation system. For the LUSH HiMirror application, LUSH will be given the HiMirror application specifications to begin integration. LUSH will hire a third-party app developer to take the HiMirror application and create a LUSH specific product focus and recommendation.
FUZZ will be responsible for creating the initial LUSH HiMirror application and integrating it with the existing HiMirror specifications. From there, FUZZ will create a product recommendation coding system that will help suggest products based on buzz words, customer profiles, and other forms of data mining and analysis.
How does lush do this?
The Final Product
For LUSH to develop this application, they will need to source a third party app developer to take the information from the existing HiMirror and LUSH app technologies to create a LUSH HiMirror application that fuses the best of both.
After working with HiMirror technologies and the FUZZ app development team, LUSH will have a comprehensive LUSH HiMirror application system to connect with the new store technology. The LUSH HiMirror Application will take the beauty profiles created by the HiMirror interface and send them into the new app’s database. From there, our product suggestion technology will begin sorting products and comparing them with key words and numbers seen in the beauty profile provided by the smart mirror.
To do this, LUSH will need to integrate the HiMirror beauty profile specifications with a product recommendation system that is updated with LUSH products continually by a LUSH HiMirror IT Team.
This will give the LUSH customer a complete product experience, perfectly matching them with whatever product will solve their unique skin issues. 15
LUSH COSMETICS
OPERATIONAL PLAN
Phase One Ends
PHASE 1
PHASE 2
In consideration of being prepared for the new year, the LUSH HiMirror technology will begin in June 2017. The first phase of operations will concern research and development, technology sourcing, and budgeting for overall product manufacturing and launch.
Phase Two of operations primarily focuses on product testing and focus group testing within the primary geographic regions involved in the LUSH HiMirror launch. First, testing will begin at the LUSH North American Headquarters, where the LUSH IT team will test the newly developed mirror technology. Second, LUSH and app development company FUZZ will complete the integration of the existing HiMirror application technology with the new LUSH HiMirror mobile application.
Specifically, Phase One will develop both the LUSH HiMirror base and the beginning of creating the mobile application interface with FUZZ, as well as the creating of the Lush HiMirror interface with HiMirror team. Secondly, LUSH will spend time on creating and implimenting a logistical plan to bring the technology to North America.
After completing the product testing, LUSH will move into regional focus groups throughout North America to perfect the LUSH HiMirror customer experience. To do this, installation of the technology will begin in October 2017 and end by November 2017. Prelaunch marketing will begin at this time to bring notice of the new experience. After installation, there will be a weekend training session provided for employees.
The final goal of Phase One is to understand and create the complete budget needed for the next 1.5 years. This phase will begin in June 2017 and end in August 2017, lasting a total of twelve weeks focused towards technology production and perfection.
Phase Two will begin in September 2017 and will end the second week of December 2017, lasting a total of ten weeks. 16
STRATEGIC INITIATIVE
Phase Two Ends
Phase Three Ends
Phase Four Ends
PHASE 3
PHASE 4
Phase Three begins the operations focused towards the launch of the LUSH HiMirror. In the launching phase of the technology, LUSH will focus on the marketing needed to make the local markets aware of new technology implementation.
Phase Four of operations are focused towards postlaunch activities, and will vary depending on the success of the Lush HiMirror experience. If successful, Phase Four will begin the implementation of the LUSH HiMirror technology into LUSH flagship stores in key regions, such as Philadelphia and New York City.
This phase is also focused on refining any possible bugs that happen when experiencing a higher influx of customers than during testing.
This will include IT development and focus group testing in these regions, giving LUSH key information for regions before expansion.
By this phase, FUZZ and HiMirror will no longer be involved and LUSH will take over all IT responsibilities. To do this, they will hire IT specialists for the specific regions where they are needed.
Outside of expansion, LUSH will focus efforts towards post-launch marketing tactics to keep interest in the flagship region. LUSH will mine data and analyze the best and worst aspects of the LUSH HiMirror experience to give the team superior insight into the technology.
Phase Three will primarily be focused on how the technology operates in store, as well as occasional refresher courses for the employees whenever the technology in improved upon.
Phase Four will begin two into March 2018 and ends June 2018 to begin focusing on further expansion. unique
Phase Three will begin with the launch the first week of January 2018 and end two weeks into March 2018. Phase 3 gives the LUSH customer a complete product experience, perfectly matching them with whatever product will solve 17
LUSH COSMETICS
PROPOSED LOCATION
The Lush HiMirror Software will be launched in the brand’s largest North American location, Scottsdale Fashion Square in Scottsdale, Arizona. This location was chosen as it touches on Lush’s existing initiative to expand and enhance their brick-and-mortar location in North America, as well as provides the largest possible existing Lush retail space in the region. If the Lush HiMirror software is successful, we will plan to expand into key Lush markets nationally, such as Philadelphia, Washington D.C., and New York City.
Scottsdale Fashion Square Scottsdale, Arizona • 34.4% of the population is 20-34. • 52% of the population is Female.
Established and Comfortable • Highly educated, the majority receiving either a Bachelor’s or Graduate degree. • Younger families with established, disposable incomes. • Enjoy technology, but like it to be integrated into their active lifestyles.
More on Scottsdale Area: • Scottsdale is an active, urban area of Arizona that boasts some of the highest population and wealth in the state. Situated near Arizona State University and Downtown Phoenix, Scottsdale has unique access to both the young millennial crowd and the established older millennials and Gen X’ers. • • The Scottsdale Fashion Square is one of the largest and most active malls in Arizona. With a successful 2015-2016 behind them, the mall is planning a multi-million dollar expansion in the New Year. With successful surrounding environment,
AMBITIOUS AND ACTIVE • Have a more active way of life, preferring a healthy and conscious lifestyle. • Believe in clean living, shopping at higher priced stores for ethical options. • Work hard and play hard.
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STRATEGIC INITIATIVE
SIMILAR INITIATIVES & FUTURE COMPETITORS
Kiehl’s has recently taken on personalized skincare with their new Apothecary bespoke custom serum service. It offers customers the opportunity to meet with a customer service representative, who walks them through personalized consultation to address their specific skin concerns. Once this has been determined, with a hand held skin scanning device that tests out your skin’s hydration, the targeted complexes will be mixed with a skin strengthening concentrate to create a small sample for the customer to feel ensuring that it’s exactly what they’re looking for. From there personalized labels will be issued for each bottle. It costs $95; almost the double amount of regular Kiehl’s serums. Sephora, incorporates handheld devices that when held to the face, scans the surface capturing a person’s exact skin tone. It matches it with a four-digit Color IQ from an existing shade library, to find the foundation and concealer that’s the best scientific match for their completions. They also created a spin off, the Lip IQ, for lipstick shades. SK-II’s ‘Beauty Imaging System Skin Counseling’ available at select Saks Fifth Avenue stores, enables the customer to discover their skin’s age and create a unique skin care regimen that addresses their concerns. Their technology is as innovative machine that takes a high resolution picture of your skin, and determines your skin’s age by analyzing texture, elasticity, tone and wrinkle resilience, then from there SK-II products are recommended by representatives to fit your specific needs. Similar technologies have also been used by other brands such as, The Elemis line at Bergdorf Goodman, and Olay and Vichy at CVS pharmacies. 19
LUSH COSMETICS
IN STORE DISPLAY
Lush opening its largest store at Scottsdale Fashion Square, Arizona that will be 2,600 Square Feet.As a result of the expanding product ranges we increased the store space to 2,600 square feet to provide customers with more hands-on experience that showcases all of Lush’s innovative creations. This is where the implementation of the HiMirror will go. Using reclaimed wood, brick, tiles and product displays formed from barrels and crates, the neutral tones contrast perfectly with the bright colors of Lush’s product range. Using eco friendly materials to create a sleek modern décor
with an ‘at home’ kitchen feel, the store will welcome customers to come and browse the ethical skin care, hair care, bath bombs and fresh face masks. Lush’s expert consultants will also be on hand to offer complimentary massages and product demonstrations for a truly indulgent experience. For implementation of HiMirror in store, the Scottsdale store will be including a wooden bar set up where the HiMirrors will be located, with bar stools in front of them for customers to sit and have their face analyzed. There will also be HiMirrors located on the store walls, so the bar doesn’t get overly crowded.
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STRATEGIC INITIATIVE
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LUSH COSMETICS
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STRATEGIC INITIATIVE
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LUSH COSMETICS
COMMUNICATION & PROMOTIONAL PLAN
OVERVIEW
PHASE ONE
LUSH will be focusing on breaking up the way LUSH will promote the Launch of their new strategic initiative through their various social media channels, their catalog, eblasts, and eventually a print ad. Additionally, lush will be creating an ad campaign for the new initiative that will be seen across all of their different promotional platforms. Additionally, LUSH has chosen to not hold events or launch parties because LUSH has chosen to put all of their budgeting for the new initiative towards its development, seamless user integration and third party app development funding. This promotional plan will be broken down into three different phases of promotion, as seen in the promotional and communication graph: Phase 1, Phase 2, and Phase 3.
The prelaunch will focus its promotional strategies through its most followed social media channels (Instagram, Facebook, and Twitter) as well as through e-blasts to regional customers close to the Scottsdale location, where the product will first be tested on a focus group.
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STRATEGIC INITIATIVE
COMMUNICATION & PROMOTIONAL PLAN
PHASE TWO
PHASE THREE
Once the results of the test group are reviewed and the product, app, and integration is adjusted accordingly, Phase 2 will begin as a full scale launch promotion to reach a broader audience. This will be done by promoting across all of Lush’s social media platforms, and posting frequently about it, as well as updating their website and application, to include a new tab to inform customers about the HiMirror technology integrated in their stores. To advertise their new services, LUSH will also launch an advertising campaign, focused on introducing their new strategic initiative. Additionally, this is when LUSH will begin revealing its consumers their new promotions. Those promotions being holiday promotions, promotional discounts, and the introducing their new loyalty card program. An example of their holiday promotion would be to provide a 10% discount to all mother’s and father’s who try out the new HiMirror in store, and another example would be to provide a free sample of the products that customers would be recommended when they come in and try out the HiMirror.
The third phase, the post launch, of Lush’s promotion strategy will be to reach out to its new targeted customers being the older generation. This promotional strategy will be done through printed ads/digital ads done in newspapers that generally have an older audience reading it such as The New York Times or The Wall Street Journal.
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LUSH COSMETICS
FUTURE IDEAS
In the future, LUSH may want to not just integrate the Hi Mirror technology in their stores, but also into their spa’s, for a more personalized spa experience. As well as also being an opportunity for them to further expand their spa locations. We believe that this technology is an important step in offering Lush customers the best possible skin care regimen, that addresses all of their concerns, as customers now desire a bespoke experience and place value knowing they own a product or receive a service that’s unique to them.
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STRATEGIC INITIATIVE
THE LUSH HI MIRROR
Help
Homepage
Skin ANALYSIS
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LUSH COSMETICS
LUSH HIMIRROR APPLICATION MOCKUP
Help
Dark Circles
Welcome back, Emily!
Learn About Our NEW In-Store:
The LUSH HiMirror application is a develoment added to the existing LUSH mobile application through the integration of the HiMirror interface as a unique page in the LUSH app. On this page, users will have the ability to learn about the technology, and view their existing beauty profile transferred from the HiMirror facial scan. Users will be able to touch pin points that discuss specific problem areas. In this, there will be product suggestions and a “buy now� interface for instant gratification. On the final page of the application, LUSH users can also explore specific product pages and learn in-depth about the unique advantages of any LUSH natural product.
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STRATEGIC INITIATIVE
APPENDIX
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LUSH COSMETICS
CUSTOMER PROFILE
REBECCA RICHARDSON AGE: 28 EDUCATION: B.A. in Public Relations at Georgetown University OCCUPATION: Public Relations Specialist INCOME: $110,000 LIFESTYLE: Lives in a studio apartment with her dog coco, and enjoys her afternoons at soulcycle. Is she’s not busy at work or working out, you can usually find her roaming around her favorite stores. She is also a Health and Wellness enthusiast, who is willing to pay more for products that are environmentally safe. PERSONALITY: Career driven, free-willed, sociable and fun personality 30
STRATEGIC INITIATIVE
CUSTOMER PROFILE
GWEN SILVERMAN AGE: 34 EDUCATION: B.A. in sports medicine from Northwestern OCCUPATION: Sports nutritionist INCOME: $85,000 LIFESTYLE: Lives in the suburbs of Scottsdale, Arizona, is married and has three children, exercises rigorously both outdoors and in the gym, plays games with her children, can be seen taking time out to appreciate nature by laying in a hammock, painting her surroundings, and gardening. PERSONALITY: Extremely passionate towards all of her clients, very genuine and loving personality, comes off as very relaxed 31
LUSH COSMETICS
CUSTOMER PROFILE
CRAIG MEYER AGE: 25 EDUCATION: B.F.A. in Interior Design at Pratt University OCCUPATION: Interior Designer INCOME: $90,000 LIFESTYLE: Live in NYC with his boyfriend in a small, but quaint apartment in Lower East Side. Particularly enjoys skateboarding through NYC’s streets, reads thought provoking novels religiously, very health conscious but still enjoys a small treat once in a while PERSONALITY: Very hard working, socialite, and always positive 32
STRATEGIC INITIATIVE
BUDGETING SPECIFICATIONS
BUDGET
Marketing For marketing, we chose to follow LUSH’s typical marketing procedures, allocating $50,000 to create marketing that will be used through social media, print, and digital marketing platforms.
App Lush HiMirror Installation Maintenance Training Marketing TOTAL
$200,000 $12,000 $2,000 $100,000 $1,500 $50,000 $365,500.00
Lush himirror app
LUSH primarily spends $50,000 per large-scale advertisement, as they prefer to rely on word-of-mouth marketing and existing customer loyalty.
To develop the LUSH HiMirror App, we estimate it would take approximately twelve weeks to complete and integrate into the existing LUSH App. This process will require a team of three, with this information, we believe the Human resources application will cost $200,000 overall to complete the integration In consideration of Human of the HiMirror application into the Resources, the LUSH HiMirror LUSH application. application and platform will require full-staff training that will last three For maintenance, we believe it would hours. be best for LUSH to hire a LUSH HiMirror IT team member to explicitly This training will involve 10 staff focus on the continued development members, 7 sales associates at of the app over time. For this cost, we $10.00 /hour and 3 managers at have included an annual salary for $20.00 /hour, resulting in training this staff member. costs of $1,500. The installation of this app is included We will also require a carpenter to in the overall $200,000 budget, install specific HiMirror testing areas, but would specifically cost around costing $2,000. $10,000.
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Lush HiMirror The LUSH HiMirror system, itself, will not be too expensive, as HiMirror has the smart technology produced and ready to send out for wholesale orders. To order around 50 mirrors, the majority of which will be kept in storage until the time of expansion. The LUSH HiMirror personalization will cost $1,000 for HiMirror to adapt their existing model into the LUSH design. Overall, the LUSH HiMirror will cost around $12,000 to manufacture and produce. Installation of the LUSH HiMirror is a simple process. It will take one full-day of work with a team of 3, resulting in $2,000 overall.
LUSH COSMETICS
COSTING BREAKDOWN
Fixtures • HiMirror - $10,000 (50 units at approx. $200 each) • Mounted bar table - $400 • iPads • POS - $700 (based off monthly structure) • 4 bar stools - (already in store/warehouse) Logistics • Training - 3 Hours • 7 Sales people ($10 an hour) • 3 Managers ($20 hour) • Hire two (older) employees $15 an hour
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STRATEGIC INITIATIVE
OMNI CHANNEL AUDIT
The Website
SOCIAL MEDIA
RECOMMENDATIONS
Lush has an incredible website that is easy to navigate, image heavy, and overall has a simple yet fun branded aesthetic that is apparent throughout every page of their site. The site also has great customer service elements, offering either chat, call, or email customer care options. There are also links to all of their social media platforms on the bottom of the site.
Lush sets the standard of how companies should operate their various social media platforms, which they choose to promote on. They understand each social media’s purpose and the type of users they are connecting with. Lush is also consistent in the amount of posts and how often the post on each platform, making sure to keep all of their channels up to date.
lush CATALOG
LUSH APP
The LUSH catalog does a great job in incorporating stories about how LUSH is giving back to the community, by incorporating those elements of the LUSH catalog throughout their social media, would only further improve their brand image. Furthermore, LUSH should create advertisements in printed ads/digital ads done in newspapers such as The Wall Street Journal and The New York Times would help LUSH to target and captivate a new age group of customers.
Lush offers a digital catalog publication that comes out seasonally. The magazine provides Lush stories from the companies philanthropy endeavors, to the latest lush story updates. Of course, Lush’s product updates and information are included as well. As per usual, magazine’s layout is very easy to grasp and heavily branded.
While the Lush website in incredible, somehow the Lush app is even better. From the product organization, to the layout of the app and the navigation buttons at the bottom, everything is seamless and, of course, branded in the Lush aesthetic. Representative chats are available on the app and customer information is saved, making the app extremely user friendly.
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LUSH COSMETICS
INSTAGRAM ADVERTISING
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LUSH COSMETICS
THE COSMETICS INDUSTRY
A strong job market and rising incomes have been major factors behind American consumers’ growing confidence, it has allowed consumers to spend more on beauty and personal care products, according to Euromonitor. Authenticity and personalization are key consumer trends for 2017. Buying items often with personalized elements to suit their individual tastes can give consumers the satisfaction that they are purchasing genuine items with positive associations, like heritage tailored to their needs and being unique. Natural/ organic consumption is also continuing to grow, 62% of online consumers stated that they tried to have a positive impact on the environment through their everyday purchasing decisions. Ethical concerns, with regards to environmental protection and animal rights, are becoming increasingly important to Americans, especially millennials. Product features such as ‘natural’, ‘organic’, ‘plant/ botanically derived ingredients’, and ‘not tested on animals’, play an increasingly important role when it comes to buying skin care products. Today’s consumers are also much less brand loyal, they are ‘agnostic shoppers’ willing to shop around for items offering them the best value. They are keen to be early adopters of new products, particularly if they perceive them to offer value, and not just in terms of price.
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STRATEGIC INITIATIVE
CONCLUSION
In conclusion, we feel that this strategic initiative will greatly enhance the LUSH store experience. The LUSH HiMirror technology will invigorate with LUSH customer by creating unique personalized profiles that will solve any and all skin issues with the perfect LUSH product. With smart mirror technology, LUSH is capitalizing on the importance of fusing the in-store shopping experience with innovative technologies, which will give LUSH a competitive advantage over other natural product based cosmetics companies.
Furthermore, this initiative not only invigorates the existing LUSH customer, but also captures new levels of interest from previously ignored markets. Through this initiative, LUSH will begin to see an increase in customer demographics of all ages and genders, creating a new dominance for LUSH in all aspects of the cosmetics industry. Overall, the LUSH HiMirror technologies will enhance the LUSH store experience by building upon their existing ideals: to provide customers with a unique, holistic, and perfect experience that they will remember for a lifetime.
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LUSH COSMETICS
BIBLIOGRAPHY
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