FRESH HANDMADE COSMETICS
H S U L F O Y R O T IS H . .. .. .. . . E . H . T . . . . . . . . . . . . . . . . . . . . . . . . .. .. .. .. .. . . . . . Lush is an international retailer who specializes in fresh, handmade cosmetics, products, using the freshest vegetarian recipes without testing on animals. Originally from London, England, founders Mark Constantine and Liz Weir, discovered their passion for handmade cosmetics during several business ventures before establishing Lush in 1995. The first international Lush opened in Vancouver in 1996, five years later the first American store opened in San Francisco in 2003. In 2007 LUSH created their famous Charity Pot, a hand and body lotion that softens the skin and warms the heart. 100% of the proceeds are donated to environmental, humanitarian and animal rights charities.
A LUSH LIFE
we believe...
in making effective products from fresh, organic fruit and vegetables, the finest essential oils and safe synthetics. We invent our own products and fragrances. We make them fresh by hand using little or no preservative or packaging, using only vegetarian ingredients, and tell you when they were made. We believe in buying ingredients only from companies that do not commission tests on animals and in testing our products on humans. We believe in happy people making happy soap, putting our faces on our products and making our mums proud. We believe in long candlelit baths, sharing showers, massage, filling the world with perfume and in the right to make mistakes, lose everything and start again. We believe our products are good value, that we should make a profit and that the customer is always right.
O MP . .N. Y. . S. TRUCTURE . .. .. C . . . . . . . . . .A . . . . .. .. .. .. .. .. .. .. .. .. ..
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . "If a business goes public it has to consider its shareholders above all else. I realize the people you can trust most are your own staff." Lush is a privately owned company with a small number of shares available on an invitation basis only. In August 2007, the company formed a staff ownership scheme for its company, to make it harder for businesses to attempt a takeover of its company.
LUSH 2015 LUSH 2015 PRE-TAX PROFIT PRE-TAX PROFIT $25.4
M
Future Growth $25.4 M Plans
TAXES PAID TAXES PAID
$8.9 M
$8.9 M
NET PROFITNET PROFIT
$9.4 M
$9.4 M
TURNOVER TURNOVER
$495.8 M
$495.8 M
TOTAL DONATIONS TOTAL DONATIONS $4.1 FIXED ASSETS FIXED ASSETS
stores worldwide, both internationally and in the US. They are also opening a three-story
M
$4.1 9,300 M square
foot flagship store on Oxford
$8.5 M
Street.MLush $8.5
is gearing towards opening
CURRENT ASSETS CURRENT ASSETS $2.6
M
SHAREHOLDER SHAREHOLDER EQUITY EQUITY $0.2 M TOTAL STORES TOTAL STORES
Lush is planning on expanding the number of
< 900
larger stores in the US and worldwide.
$2.6 M $0.2 M < 900
strengths - 100% Vegetarian - Eco friendly & low expense packaging - Uncompromising ethical stance on fighting animal testing - More than 800+ stores across 50 countries - Strong social responsibility campaigns - Channel of cosmetic tutorial videos - Superior customer service / Loyal customer following - Growing passion for fresh and healthy products for the skin and the body - Create a more universal omni-channel prescense
weaknesses -Absence of m-commerce distrabution - Not convienent to purchase; limited distrabution - Absence of a marking department - Fresh Lush products require higher storage maintance - Higher price point - Competitive Industry
- Customers choosing conventional over responsible products, because of ease of use - Lower cost competitor
- Vegan product line expansion
- Competitors with more points of sale
- Using “organic“ and “fresh” as marketing tools
- Technology is impowering the customer with knowledge making them less loyal than ever before
- Technology incorporation within the store experience
opportunities
threats
WHERE LUSH STANDS AGAINST . . . . . . .
ITS COMPETITION . . . . . . . . . . . . . . . . . .
. . . . . . . .
High tech
Low Acsessability
High Acsessability
FRESH HANDMADE COSMETICS
Low Tech
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is s y l A N A . . . .. .. .. .. .. .. .. . . .. .. .. .. .. .. .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SWOT analysis Lush is a cosmetic brand with a strong brand presence; their devotion to making the best products for your skin and the earth is what helps separate them from their competitors. Though they are not the only company with a strong natural cosmetic stand point, Lush brings their social responsibility to a whole new level by producing 70% vegan products, actively fighting animal testing and Eco friendly packaging which provides them with a loyal customer base. But this loyal customer following could easily be disrupted by the customers accessibility to technology which provides them with more knowledge then ever before and the ability to shop at all times. Lush has many opportunities to fight these threats including the creation of a mobile app that will allow customers to check out on their mobile device, as well as providing customers with a more accessible way to view their amazing tutorials on Lush TV. The growing market for health and wellness products is a major opportunity for Lush to infiltrate a new market.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . w w perceptual map analysis
Comparing Lush to its competitors, the company has an opportunity to infiltrate a new marketing strategy by using technology to provide their consumers with exceptional customer service in and out of the store. By filling in this technology gap Lush will simaltaneously be able to provide customers with more channels of distrabution including, m-commerce sales for smart phones and tablets.
Lushâ&#x20AC;&#x2122;s unique selling point is its commitment to the environment by using fresh and organic raw materials and educating their customers of their strides to better the personal care industry.
u rr . .n. t. . P. LACEMENT . .. .. C . . . . . . . . . .e . . . . .. .. .. .. .. .. .. .. .. .. ..
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lushâ&#x20AC;&#x2122;s current channels of distrabution include 820 retail stores across 50 countries; 559 stores within the United States. An online store that is accessible in 48 countries, and Lush Times Catalogs which allows customers to order through mail or phone. Which makes 3 points of sale within Lush cosmetics. Since Lush is a privately owned company that does not disclose the sales volume distrabution by channel. However we estimated that 65% of their sales are made within brick and mortar, 34% of revenue is made through e-commerce and less than 1% of sales are made through Lush Times catalog. Also because Lush is a privately owned company there are no opportunities within the company for franchising and joint ventures.
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n io t o m o r P . . . . .. .. .. .. .. .. .. . . . .. .. .. .. .. .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Current communication & promotional activities Lush currently does not have a loyalty card or rewards program, however Facebook: 836,242 likes Used for promo pictures, videos and all new Lush information Instagram: 1.3 million followers Posts at least once a day Pinterest: 45,024 followers 13 different boards and 1,259 pins Twitter: 216.4 K followers Uses to interact with customers about products, how to use,
they do reward their customers with a free face mask when they bring in five empty black Lush tubs. In 2007, Lush invented a beautiful hand and body lotion called Charity Pot. 100% of the purchase price goes towards supporting humanitarian, environmental and animal rights causes locally and around the world. Since its launch, Charity Pot has donated close to five million dollars to more than 400 grassroots charities in 35 countries. Lush sends emails and flyers in the mail regularly, informing customers about current promotions happening and new products online and in store. They believe in promoting their brand through special campaigns
questions and comments
showcasing the true beliefs and values of the company. Lush has very
(Response almost immediately)
limited advertisements or marketing promotions, they rely on awareness of CSR campaigns, social media and their hands on in store experience.
Annual figures on advertising $20,000 - $50,000 on advertising per store according to Reference USA
u s in . .s. . s b j . . .B e . .t . . es . . . . . . . . .e . . . . .O . . . . . . . . .c . . .iv .. .. .. .. ..
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Owing to the fact that the personal care industry is an extremely saturated market it is hard for competitors industry to hold a competitive advantage. Even though Lush holds the advantage of having a product assortment that is handmade and that it does not test on animals, it is behind in both in-store experience and the possibility of using technology to gain more customers. Lush does not take full advantage of being fresh and organic since they don’t promote or advertise it in a powerful way. Also, the lack of a marketing department leaves them behind, since the brand has a great absence in terms of any promotional aspects. Their app, currently called “LushTv” does not provide the services that customers expect nowadays and the app limits itself to showing informative videos of Lush’s Products and their ethical awareness. The in-store experience provided by Lush stays average, since the customer does not get an experience that is different from any other personal care store. It is important to bring Lush forward and create more brand awareness thanks promotion, expanding into m-commerce and making the brand more accessible through a refurbished app. It is also important to maintain customer loyalty and keep them coming into the store, by enhancing their in-store experience with “Touchcode” technology. Because the industry is so competitive it is important to push Lush forward in terms of technology and in-store experience, which other brands are already successful at. It is important for Lush to be at the top and to bring their competitive advantage up.
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E IV T IA IT IN IC G E T A . R . T . . S . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Key . . objectives . . . . . . . . . . . . . . . . . . Lush will refurbish its app to meet with customer’s expectations, making it more user friendly by enhancing both m-commerce and in-store experience all in one app. Customers would be able to go through their product selection on their smartphones and checkout on them as well. Lush will be using Touchcode technology to enhance customer experience while they are in store. Touchcode is an invisible electronic code printed, on paper, cardboard, film or labels. By using Touchcode you give added interactivity to any product, from reviews of Lush’s products, to tutorials on how to use them. It is also a way to increase marketing and to communicate with the customer even without a salesperson talking to them. This makes the customer more informed about the products and increases their will to buy them. Considering the fact that customers are expecting more nowadays not only in their Brick and Mortar stores but in their online experience. Customers want to be able to make purchases on any of their tech gadgets, whether it is their computer, tablet or smartphone. Refurbishing Lush’s app to meet customer’s demands is essential for the brand’s development. Consumers also want a real reason to step into the store, by enhancing the in-store experience with Touchcode technology customers are able to have the same experience that they would by surfing the internet, being able to compare with other products, looking up reviews and tutorials. This would ultimately heighten the experience that customers have while visiting the store, attracting more customers and increasing the number of footfalls. Long term benefits include gaining more customer loyalty by enhancing their experience both in and out of store. Making them more eager to return thanks to the heightened experience they received in-store. The easy accessibility to reviews of both Lush’s product selection and other brand’s products for customers to compare gives Lush a competitive advantage and makes Lush even more trustworthy and transparent at the eyes of the consumer creating a sense of brand loyalty and awareness. This would also set Lush as one of the leading cosmetic brands in terms of use of technological resources, which consumer nowadays seek.
FRESH HANDMADE COSMETICS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . creative guidelines FONTS LUSH
Arial Black
Arial
LOGOS
Sticking true to Lush’s roots we see their advertising as a perfect mix of natural and modern. Using Lush’s bold Arial Black logo is the perfect juxaposition to their light, flowery feel. As well as the incorporation of the Lush chalkboards that are used for in-store promotion, and really portray the fresh, handmade aesthic of Lush. Bright colors and bright, natural light are key components to Lush’s in-store appeal.
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s e l b a r e iv l e D . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . list of deliverables 1. An app interface (whether moving or still) that shows both the use of TouchCode technology as well as the m-commerce development in the app
2. An advertisement that fits millennial oriented magazines while encompassing Lushâ&#x20AC;&#x2122;s values, aesthetics and brand identity.
3. An additional advertisement (whether moving or still) that indirectly showcases how to use the product as well as its benefits. (If moving, the video should be no longer than thirty