Lush x Touchcode Technology by Georgiana Knox

FRESH HANDMADE COSMETICS

TABLE OF CONTENTS

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EXECUTIVE SUMMARY 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .THE HISTORY OF LUSH 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . COMPANY STRUCTURE 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SWOT ANALYSIS 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PERSEPTUAL MAP 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PROMOTION 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CURRENT PLACEMENT 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUSINESS OBJECTIVES 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CREATIVE OUTLINES 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LIST OF DELIVERABLES 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .MARKET OBJECTIVES 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .TARGET CUSTOMER 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PORTER’S FIVE FORCES 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . STRATEGIC INITIATIVE 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TECHNOLOGICAL ACTIVITY MAP 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PROMOTIONAL ACTIVITY MAP 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DELIVERABLES 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EXPENSES

ECU . . .IV. E. . S . . . . .E. .X MA . .Y. . . . . . . . . . . . .T . . . . . . .U. .M . . . . . . . .R . .

touchcode

Lush has partnered with Touchcode technology to develop a strategic marketing initiative to enhance customer experience inside and outside of Lush stores. Using Touchcode along with Printechnologies customers will be able to use their smartphones to enter a new portal of Lush cosmetics. By scanning Lush products with a smartphone, customers will be able to access product information, educational tutorials on how the products are made, a “how-to” section to correctly use them, as well as read other customer reviews to enhance the customer ’s knowledge. Providing an exciting new way for the consumer to interact with Lush products.

This initiative will require the creation of a mobile app that will add a new point of sale for the Lush consumer by providing an opportunity for consumer growth while educating customers about Lush’s one-of-a-kind cosmetic brand. Incorporating technology within Lush is an opportunity to gain competitive advantage within the saturated market of the Beauty and personal care industry and keep up with the technology that competitors are using.

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. * See Appendix A

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

Future Growth $25.4 M Plans

TAXES PAID TAXES PAID

$8.9 M

NET PROFITNET PROFIT

$9.4 M

TURNOVER TURNOVER

$495.8 M

TOTAL DONATIONS TOTAL DONATIONS $4.1 FIXED ASSETS FIXED ASSETS

the US. They are also opening a three-story

$4.1 9,300 M square

foot flagship store on Oxford

$8.5 M

Street.MLush $8.5

is gearing towards opening

SHAREHOLDER SHAREHOLDER EQUITY EQUITY $0.2 M TOTAL STORES TOTAL STORES

stores worldwide, both internationally and in

CURRENT ASSETS CURRENT ASSETS $2.6

* See Appendix B

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 presence

-Absence of m-commerce distribution - Not convenient to purchase; limited distribution - Absence of a marking department - Fresh Lush products require higher storage maintenance - Higher price points - 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 empowering the customer with knowledge making them less loyal than ever before

- Technology incorporation within the store experience

opportunities * See Appendix C

weaknesses

threats

O MP . .N. Y. . S. TRUCTURE . .. .. C . . . . . . . . . .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, and cater to the needs of their Generation Y, customer base.

WHERE LUSH STANDS AGAINST . . . . . . .

ITS COMPETITION . . . . . . . . . . . . . . . . . .

. . .* See. Appendix . . .D .

High Incorporation of Technology

Low Accessibility

High Acsessability

FRESH HANDMADE COSMETICS

Low Incorporation of Technology

O MP . .N. Y. . S. TRUCTURE . .. .. C . . . . . . . . . .A . . . . .. .. .. .. .. .. .. .. .. .. ..

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 simultaneously be able to provide customers with more channels of distribution 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.

. .. .. .. .. .

n io t o m o r P . . . . .. .. .. .. .. .. .. . . . .. .. .. .. .. .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Current communication & promotional activities 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

Lush currently does not have a loyalty card or rewards program, however 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

Pinterest: 45,024 followers, 13

five million dollars to more than 400 grassroots charities in 35 countries.

different boards and 1,259 pins

Lush sends emails and flyers in the mail regularly, informing customers

Twitter: 216.4 K followers

about current promotions happening and new products online and in

Uses to interact with customers

store. They believe in promoting their brand through special campaigns

about products, how to use,

showcasing the true beliefs and values of the company. Lush has very

questions and comments (Response almost immediately)

limited advertisements or marketing promotions, they rely on awareness of CSR campaigns, social media and their hands on in store experience.

YOUTUBE: 86,465 subscribers, 453 videos total, frequency; 2-3 videos every three weeks.

Annual figures on advertising $20,000 - $50,000 on advertising per store according to Reference USA

* See Appendix F

u rr . .n. t. . P. LACEMENT . .. .. C . . . . . . . . . .e . . . . .. .. .. .. .. .. .. .. .. .. ..

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lushâ&#x20AC;&#x2122;s current channels of distribution 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 distribution 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. * See Appendix E

S E IV T C E J B O S S E IN . S . . U . B .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Owing to the fact that the personal care industry is an extremely saturated market, it is hard 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. 12

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 juxtaposition 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 seconds long and should be able to be used on different outlets such as TV, computers and phone).

rke . . .o.b.jectives . . . . . .m . . .a . . . . . . . . .t . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .MARKET . . . . .SIZE . . . . . . . . . . . . . . Retail sales in the Beauty and Personal Care industry in the USA made a total of 76 Billion US Dollars in 2014. Which is an increase of 2 Billion dollars from the year prior. Which is a 1.9 % value growth between 2013 and 2014. The industry is expected to meet a value growth of 5.3% by 2019. The top competitors within the Beauty and Personal Care industry are Procter and Gamble Co, L’Oréal Groupe, Unilever Group and Estée Lauder Cos Inc. Top competitors within the industry are all Multi-brand groups backed by large budgets. One of Lush’s direct competitors, Kiehl’s, is currently owned by the L’Oréal Groupe, which explains their high performance in the market and the advanced technology they work with. However, as an independent company Lush is still doing well, considering the fact that no power players in the market are backing them. Certain brands have recently risen in the ranks or maintained their current leadership status thanks to development of products that make use of new technology and position themselves as premium products (Euromonitor International “Beauty and Personal Care in the US”). This proves that the use of technology is beneficial to the growth of brands and has given a competitive advantage to companies applying it. Because of both consumer demands and market studies it is important for LUSH to meet both customer and market expectations in order to not only keep growing as a brand but to position itself higher within its competition.Fair. The award demonstrates a clear benefit of using TouchCode technology. Nukotoys, a California based company is one of the companies working with TouchCode Technology. Enhancing user experience through Children’s games while having the physical and digital play meet. They have used TouchCode technology for two game series “Monsterology” and “Animal Planet: Wildlands” which was awarded Best In Play Award by Parenting Magazine at the 2012 Toy Fair. The award demonstrates a clear benefit of using TouchCode technology. 15

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T E K R A M T E G R A T . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. ..TARGET .. .. .. .. .. CUSTOMER .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Lush’s target customers are Gen Y, by implementing TouchCode technology LUSH code is not looking to change its target demographic but to meet their existing customer’s expectations and attract other customers within the demographic. Gen Y can be divided into four Psychographic segmentations:

“The Confident Connecteds” The Most Likely out of the four groups to engage with brands in positive ways. They are extremely eager in responding to promotions, giveaways and special events/content that a brand might come up with. The group engages through mobile content and social media. They use social media as a platform to advocate causes they care for. They are also Stong Advocates for their generation. (CMO By Adobe “Marketing to Millennials”).

“Indie Dreamers” They will be the first to give their opinion about a brand, especially if they received a good or bad experience. They could be seen as a brand’s best friend or their detractors depending on their opinion. “ Indie Dreamers” are looking for brands that set them apart while highlighting their individuality and creativity. (CMO By Adobe “Marketing to Millennials:”).

“The Youthful Pursuits” The will use brands as symbol or portrayal of who they are and what they stand for they look to paint a positive picture of themselves. They use social media mostly to show themselves, making them a prime target for new product lines especially in Fashion, Beauty and entertainment (CMO By Adobe “Marketing to Millennials”).

“The Creatures of Comfort” Are the media consumers, leading to them consuming a large quantity of ads. They are most likely to complain about ads as well. They are more likely to complain and express when they’ve had a bad experience with a certain brand. They care most about daily use products such as food, beverages and technology. They are the most reluctant group when it comes to trying new things and new brands. (CMO By Adobe “Marketing to Millennials:”).

A R G ARK. .T. . . . .. .. .. .. T . . . . . . . . . . .E . .T . . . . .M . . . . . . . . .E . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CUSTOMER . . . . . . . . . . . . . . . . . . . . . . . . . . . .TARGET Millennials respond extremely well when marketers engage with them in a way that is meaningful and teaches them something new. While understanding their audience and providing them with something of value as well as meeting their high expectations. In a study made by Pew Research Center, Millennials were asked what made their generation more unique and the top answer was The Use of technology, making it quite clear that the generation responds well to technology.(Chart below)

(Pew Research center “ Millennials A Portrait of Generation Next”)

Millennials do take pride in what they buy and as previously stated are avid consumers of products that will benefit them and portray a good image of them as well. However, as the youngest generation they are also the generation with the lowest median income. According to the Wall Street Journal Millennials make around $35,000 on average, which gives them less money to spend on.( Wall Street Jounal “It Only Takes $10,400 to be Richer Than Most Millennials”) 17

PORTERS FIVE FORCES

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THREAT OF NEW ENTRY HIGH

THREAT OF SUBSTITUTION LOW-MEDIUM

- Easy for new companies to enter the cosmetic business; low cost and many supplier options.

- Not many companies offereing products similair to the touchcode technology

- New entries happening everyday including many private label cosmetic brands.

- No alternative methods to provide customers with the same experience instore and outside of the store.

COMPETITIVE RIVALRY LOW

- Because of a high threat of new entry and Low Threat of Subsitution

Power of BUYER LOW-MEDIUM

Power of Suppliers HIGH

- Not many retail competitors of lush are offering the same technology to provide a unique instore and at home shopping experience.

- Suppliers have all the power due to the limited amount of companies offering the technology - Choices are limited for companies

O RT . .R. S. . a. nalysis . . . . . . .P . . . . . . . . . .E . . . . .. .. .. .. .. .. .. .. .. ..

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PORTERS FIVE FORCES ANALYSIS Though the beauty industry is an over satured market the use of touchcode teechnology in personal care and retail across the board is rarely seen. The threat of new entry is high with the cosmetic industry, it is faily easy for companies to build a brand. How ever the use of Touchcode technology is fairly new and there are few to no companies that offer a technology that is able to compete wtih Touchcode and bring an alternate method to provide customers with the same experience. That being said the power of the supplier is fairly high becasue Touch code has such a unique product that choices are limited. That leaves the power of the buyer low due to the fact that suppliers do not have many options when it comes to integrating such a high quality, expensive technology into their products, leaving all the power in the hands of touch code.

This all comes down to the competitive rivalry, Though there is a high threat of new entry, the low threat of subsitution cancels out the competition within this specific industry, making this best practice a perfect one to implement within our sector.

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. 20

T RA. . .E.G. IC . . . . .S ITIA . .IV. E. . . . . . . . . . .T . . . . . . . . IN . . . . . . . . . . .T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Technology . . . . . . . . and . . .Implementation . . . . . . . . . . . . . . . Touchcode links the tangible and technological world, pushing through the boundaries and setting a new standard for consumer interaction, engagement and digital operating systems. Touchcode is an invisibly printed electronic code that creates smart objects by making a piece of the internet inside every printed label. An incredibly innovative printed conductive ink signature is embedded in packaging, labels and other products that a smartphone or other detecting devices can sense through a touch of the code. Touchcode will be printed on all Lush products. While some of Lush’s products are not packaged, the code will be placed on the sign in front of the unpackaged products to touch. Lush would have to collaborate and obtain a license from T+Ink and Touchcode for the specific printing code that would then be printed on the sides of the products through the packaging companies. Since the ink incorporated with the Touchcode technology is invisible, it can be easily integrated into Lush’s pre-production of handmade products .Lush will pair with Printechnologies to develop a label design that enables the Touchcode technology while incorporating Lush’s aesthetic and “Naked Packaging.” Adhering to Lush’s beliefs and stance on ethical practices and sustainability, the packaging and label would need to remain naked and reusable. The new packaging assimilated with the Touchcode technology must also promote Lush’s high standards of whole, fresh, handmade products while ensuring the technology will work with every packaged and unpackaged product.

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E IV T IA IT IN IC G E T A . R . T . . S . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . TECHNOLOGY . . . . . . . . ACTIVITY . . . . . .MAP . . . . . . . . . . Pre-Launch January

February

March

Launch April

May

June

July

Post Launch August

September

October

November

December

Market Research Cosmetics/ Personal Care Industry Technology Research Mobile App Development and Testing Phase Informational Phase Launch Phase Maintenance and Updates Phase Touchcode Touchcode Development Touchcode Packaging Touchcode Launch New Initiative Results Evaluation and modification

The technology development for the new strategic initiative will last a total of 12 months. The Pre-Launch period will begin on the month of January through May. Within that period of time market research on the cosmetics and personal care industry as well as technology research will be completed within the first month. Market Research is essential for the understanding of both the industry and competitors as well as the benefits of implementing technology. As far as creative development goes, the first month is also considered the inspiration stage where brainstorming happens. The mobile app development and testing phase also starts in January and goes through April. The informational phase starts in april and ends in September, this includes informing both the employees about the new initiative as well as the customers. Touchcode development also begins in January and runs through April, this time is essential to develop the Touchcode technology that meets all of Lushâ&#x20AC;&#x2122;s requirements and expectation. Packaging for Touchcode starts in the month of March in order to have enough time for it to be ready for the big Launch. Both the Mobile Launch phase as well as the touchcode Launch initiate in the month of June. Lush will be launching both of them in order to increase their summer sales. The launch phase for both of them runs through the month of September. The final months will be dedicated to the maintenance and updates phase which run from September to December in order to fix any maintenance or make any necessary updates. The evaluation and modification phase presents Lush with the opportunity of evaluating the results and sales increase after the new strategic initiave is applied. It also leaves Lush with the opportunity to modify anything that is presenting issues as well as the opportunity of making the experience better. 22

R O M T IO N . .L. . . P. L . .. .. .. P . AN . . . . . . . . .O . . . . . . . . . . .A . .. .. .. .. .. ..

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PROMOTIONAL . . . . . . . . ACTIVITY . . . . . . MAP . . . . . . . . . . Pre-Launch January

February

March

Launch April

May

June

July

Post Launch August

September

October

November

December

Promotional Activities Social Media Facebook Instagram Twitter Youtube Pinterest Print Advertising Lush Times Mail Ads Events App and Touchcode Launch Party

To educate customers on about Touchcode, Lush will be promoting the new Touchcode by Lush with a promotional launch event allowing customers to interact with the new digital experience in store. Staying true to the aesthetic of Lush cosmetics their promotional activities will be as bright and lively. Incorporating all aspects of their social media during pre-launch and launch stages of the touch code implementation. Using the hashtag #lushtouch we will promote the launch of touchcode that shows informative videos and instructions on how to use the touchcode within the lush stores. Also during the launch months advertiements will be sent out within Lushâ&#x20AC;&#x2122;s print advertisements, Lush Times. Within the June issue of Lush Times will be an introduction and step by step instructions on how to use Touchcode as well as a mock-up of the Touchcode technology. Post launch will soley be promoted on twitter and instagram, as a chance for Lush to share user experiences and customers to give their insight and photos of the technology in use.

PROMOTIONAL MATERIAL . . . . . . . . . . . . DELIVERABLES . . . . . . . . . . . . . . . . . . . .

MOVING ADVERTISEMENT FOR

TOUCHCODE BY

LUSH

ADVERTISEMENTS FOR TOUCHCODE BY LUSH

ANC . .L. .P. LAN . . . . . . . . . .F . . .IN . . . . . . . . . . .IA . . . . .. .. .. .. .. .. ..

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .FINANCIAL . . . . . . PLAN . . . . . . . . . . . . . . Expenses Technology Touchcode

$750,000.00

App Development Cost

$165,101.00

Testing and Evaluation Staffing Education

$16,510.00

Spoke to t-Ink Technolgics where they gave an estimate average cost for a total of 1,000,000 products. Estimated by Kinvey’s App Cost Estimator. (Refer to Appendix) 10 % of App cost

$109,005.00

Calculated an extra hour of pay(on average salary received for all LUSH retail employees within the USA) in order to educate employees on Touchcode Technology.

Launch Event Catering

$1,032.00

Music

$495.00

Huckleberry Café Catering Santa Monica California DJ Tyler 4hrs of music (Refer To appendix)

Advertising Lush Print Ad

$25,000.00

Total Cost

$150 per ad for 100 Vertical Orientation Interior Subway Ads. $500 per ad for 20 Bus ads

$1,067,143.00

APPENDIX Appendix A

Steinweg, Tim, and Jos Van Seteren. “Lush Cosmetics Ltd. Quick Scan.” Lush Cosmetics Ltd. (2012): 1-24. Https://mitheringsfrommorningside.files.wordpress.com/2013/10/quick-scan-lush-cosmetics-final. pdf. SOMO, Nov. 2012. Web. May 4. <https://mitheringsfrommorningside.files.wordpress.com/2013/10/ quick-scan-lush-cosmetics-final.pdf>.

"Shop the LUSH Range." We Believe... N.p., n.d. Web. 04 May 2015. <http://www.lushusa.com/on/demandware.store/Sites-Lush-Site/en_US/AboutUs-OurStoryShow?cid=we-believe>.

“Shop the LUSH Range.” LUSH. N.p., n.d. Web. 04 May 2015. <http://www.lushusa.com/on/demandware. store/Sites-Lush-Site/en_US/AboutUs-OurFreshHandmadeStory>.

Appendix B

“Lush has reported an 8pc increase in sales and profits, after the cosmetics giant opened new stores in the US and emerging markets. The company, which sells handmade soaps and beauty products, generated a turnover of £454m last year and a pre-tax profit of £23.3m. Sales were hit by currency fluctuations, such as the strengthening pound, which created problems for many British exporters last year. Excluding the effect of currency distortions, sales grew 15pc year-on-year. Lush operates 105 stores across the UK and more than 900 stores in 49 countries around the world. Related Articles. Shopping Robson street downtown Vancouver Canada. Lush defies the Christmas retail slump 06 Jan 2014. Firm that rose from a single shop to a global empire 03 Aug 2013. According to Lush boss Mark Constantine, the company’s 2014 expansion strategy focused on “seeking sites in prime locations with higher turnover potential, making strategic relocations and closing loss-making shops”. Last year, the privately-owned company opened 66 new stores and closed 62 loss-making sites.” Burn-Callander, Rebecca. "Lush Defies Currency Turmoil to Post Sweet-smelling Profits." The Telegraph. Telegraph Media Group, 20 Feb. 2015. Web. 04 May 2015. Appendix C

Steinweg, Tim, and Jos Van Seteren. "Lush Cosmetics Ltd. Quick Scan." Lush Cosmetics Ltd. (2012): 1-24. Https://mitheringsfrommorningside.files.wordpress.com/2013/10/quick-scan-lush-cosmetics-final. pdf. SOMO, Nov. 2012. Web. May 4. <https://mitheringsfrommorningside.files.wordpress.com/2013/10/ quick-scan-lush-cosmetics-final.pdf>.

Appendix D

RETAILER Sephora

app interaction

qr/barcode scanner

online reviews

youtube tutorials

1,900

1565 in US

2.5

774

*** Kiehlâ&#x20AC;&#x2122;s

250 world wide

*** Origins

70 stores,

2,400 in 61 countries

2000

*** Sabon

106 international

*** LUSH

750

*** Bath and Body Works Ulta

*** The Body Shop *** Philosophy *** Lâ&#x20AC;&#x2122;occitane

points of sale

Appendix E

"Shop the LUSH Range." We Believe... N.p., n.d. Web. 04 May 2015. <http://www.lushusa.com/on/demandware.store/Sites-Lush-Site/en_US/AboutUs-OurStoryShow?cid=we-believe>. Appendix F

"Login." Reference USA. Reference USA-Savannah College of Art and Design, n.d. Web. 04 May 2015. <http://0-www.referenceusa.com.library.scad.edu/UsBusiness/Detail/Tagged/6e6656e6bf6d49d6a2dc9a1cb51c560f?recordId=686008822>.

MARKET OVERVIEW

Expenses Technology Touchcode

$750,000.00

App Development Cost

$165,101.00

Testing and Evaluation Staffing Education

$16,510.00

Spoke to t-Ink Technolgics where they gave an estimate average cost for a total of 1,000,000 products. Estimated by Kinveyâ&#x20AC;&#x2122;s App Cost Estimator. (Refer to Appendix) 10 % of App cost

$109,005.00

Calculated an extra hour of pay(on average salary received for all LUSH retail employees within the USA) in order to educate employees on Touchcode Technology.

Launch Event Catering

$1,032.00

Music

$495.00

Huckleberry CafĂŠ Catering Santa Monica California DJ Tyler 4hrs of music (Refer To appendix)

Advertising Lush Print Ad

$25,000.00

Total Cost

$150 per ad for 100 Vertical Orientation Interior Subway Ads. $500 per ad for 20 Bus ads

$1,067,143.00

TECHNOLGY

Company., A. Technology Development. "Touchcode." Touchcode - The New Communication Standard (n.d.): n. pag. Touchcode.com. TouchCode and Printechnology. Web. 22 May 2015. <http://cards.touchcode.de/static/Visitenkarten/media/PT_Touchcode.pdf>.

GEORGIANA KNOX, KATHRYN LARABEE, & CLARISSA KOPPEL FASM 415- NONTRADITIONAL RETAILING CREATIVE BREIF 40