Shujun Ouyang, Nicole Drain, Kelly Bongrain
Who is lush? LUSH is an international retailer of fresh handmade cosmetics that is known worldwide for our unique bath and beauty products, amazing skin and hair care, personalized customer service, environmental activism, and a fun & funky store atmosphere. We are dedicated to the practices of fair trade sourcing and supporting sustainable communities as well a giving back to organizations that can make a difference through our Charity Pot Program.
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Making effective products from fresh, organic fruit and vegetables, the finest essential oils and safe synthetics.
mission
Buying ingredients only from companies that do not commission tests on animals and in testing our products on humans.
vision
We believe our products are good value, that we should make a profit and that the customer is always right.
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the lush story...
LUSH founders, Liz Weir & Mark Constantine met and created cosmetic line called the “Herbal Hair and Beauty Clinic.
Since Roddick bought out their brand, Weir and Constantine made “Cosmetics to Go” a mail order company
1982 1977
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In1996 the first international LUSH was opened in Vancouver, with a cosmetic kitchen (factory) nearby. In 2003 the first American store in San Francisco.
1995 1990
Anita Roddick founder of the Body Shop became interested in their products and became the company’s biggest supplier.
The first LUSH Spa opened, providing luxurious fresh, handmade treatments with a touch of magic in a traditional English Spa setting. It’s the ultimate Lush experience.
2007 2008
1996
The team of “Cosmetics to Go” bought a shop in Poole, England, and made handmade products downstairs. Launching the official debut of LUSH cosmetics.
Launch of Charity Pot, 100% of the purchase price (every single penny minus taxes) is donated to environmental, humantarian and animal rights charities.
Business Model LUSH is known for the innovation and originality of their products. This gives the company a competitive advantage against other cosmetic brands in the industry. Unlike other competitors, LUSH makes their own products, stocks them, and even educates their staff on how to sell the products. LUSH offers a variety of different channels for their customers to buy their products. Customers are able to go online, in stores, as well as their LUSH Times catalogue. The company lives by the slogan, “Celebrate the eccentric, because that’s what’s made us what we are.” Living by this ideal has helped the company become widely accepted across the globe. The company also strives to exceed the expectations of their customers, by fulfill their needs and going beyond their expectations, they will keep giving you their money. By operating in more than one market, it improves the strength of the company, because if one market goes down, then another often goes up. They have shops around the globe in the US, Japan, and Russia. They also focus their business on creating sustainable products and packaging. They strive to come up with better alternatives to packaging so that they are saving natural resources as well as money.
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selling venues
Computer
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iPhone
iPad
Catalog
Shop
company facts Number of Shops: 830 Number of Countries: 50+ Number of Employees: 6,659 Gross Profit: $89.4 M Annual Revenue: $362M Turnover: $362.9M; +11.32% Cost of Sales: $273.5M Global Annual Revenue: $350M
Strengths Environmentally conscious attitude (natural ingredients only) Packaging made from recycled materials Products are handmade and unique looking Retro LUSH allows customers to order products that are no longer available in retail stores. Determined to remain independent and maintain its original business strategies 100% of Charity Pot earnings goes to charity
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opportunity Fresh made products are limited in stores Many of these products have expire in shorter time periods Overpowering aroma in shop Flakes from Bath Bombs occasionally leaves residue on the body after use
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lush products
retail stores Currently, LUSH retail stores have a fun, and quirky vibe in them. The brand tries to incorporate a fresh, farmer’s market experience into their brick-and-mortar stores to provide an effective brand experience for their customers. Wood, chalkboards, and cake stands, and cupcake trees are a staple found in LUSH stores around the globe. 14
target market
demographics Gender: Females Age: 14-30 Race: White, Black, Asian, Hispanic, Mix Income: Middle to High Education: College Educated Home Ownership: Rents Employment: Working class, Service, White Collar, Mix, Full time Employment Location: Urban centers
psychographics Attitudes: • Motivated by self-expression • Young & enthusiastic • Seek variety and excitement • Environmentally conscious Lifestyle: • Find outlets in sports, exercise, social activities • Internet is most trusted source of media, with 2nd being TV • Savor the new, offbeat, and risky Buying Behavior: • Avid & impulsive consumers • Quick to buy but quick to cool • Spend high proportion of income on fashion, socializing, entertainment • Purchases reflect on looking good and what’s “cool” • Prefers environmentally-friendly products 17
customer profile Name: Harper Scott Age: 16 Occupation: Sales Associate at local art supply store Income: $8.00/hr (without parents income) Education: High School Interests: Reading, music, painting Most Likely to Buy: Lush Scent
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customer profile Name: Julie Li Age: 23 Occupation: Physical Therapist Income: $80,000/yr Education: Masters Degree Interests: Yoga, gardening, cooking Most Likely to Buy: Coco Lotion
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customer profile Name: Melissa Garner Age: 28 Occupation: Graphic Designer Income: $68,000/yr (without income of husband) Education: Bachelor’s Degree Interests: Her kids, healthy eating, shopping Most Likely to Buy: Bath Bombs
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current trends
social media Social media allows the brand to communicate closely with the consumers Allows consumers to share their experiences and thoughts on products Promote products via blog such as Tumblr and Pinterest
activism Put ethics into practice through activism and charitable giving Brands partner up with different charities to raise money and make donations Launch campaigns which invites customers to be an activist and show support
changing consumer lifestyle Rising consumer income and changing lifestyles drive the global beauty market. This growth is driven by: • Richer and aging baby-boomer population • Growing middle class in developing countries • Increasing consumer preferences towards the use of natural cosmetic products
media recognition LUSH has received a number of recognition in the media. It’s been featured in renown magazines such as: Teen Vogue, New York Times, Women’s Wear Daily, Beauty Inc. and many more. LUSH also has earned awards for being among one of the “Greenest Companies in Canada” as well as being one of “Canada’s Top Employers”
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competitors
bath & body works Date Founded: 1990 Number of Stores: 1,571 Number of Employees: 11,000 Target Customer: 18-54 Annual Revenue:$2.37B Price Points: $3.00 to $150.00
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the body shop Date Founded: 1976 Number of Stores: 2,840 Target Customer: 20-55 Brand Value:$1.063B Price Points: $4.00 to $40.00
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l occitane Date Founded: 1978 Number of Stores: 2,364 Number of Employees: 7,047 Target Customer: 20-60 Annual Revenue:$1.45B Brand Value: $1.7B Price Points: $12.00 to $106.00
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pop-up shop objectives • Highlight brand value • Increase SEO (Search Engine Optimization) • Building customer relationships • Increase media exposure • Increase conversion rate
pop-up shop focus 1. Focus on establishing effective customer service 2. Create unique in-store experience 3. Produce relaxing & entertaining environment
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marketing strategy • Promote through website • Promote through social media sites • Create online advertisements
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marketing strategy Jul 11 --- Aug 10
• Display posters in LUSH stores • Give discounts to customers to use at Pop-up Shop locations
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pop-up shop inspiration
floor plan Zone 1: seating area, product videos Zone 2: product display area, equipped with iPads for checkout Zone 3: Demonstration center
Zone 1: entry, welcome area Zone 2: product display area, equipped with iPads for checkout Zone 3: Make-up bar & consultation
interior view
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decor
exterior view
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promotions
refreshments Refreshments will be offered outside bus in order to entice customers to come and check out products The menu will include: • Strawberry-Kiwi • Watermelon • Mango-Pineapple
demonstrations • Will demonstrate the process on how products are made and offer samples for customers to try
take-aways • When customers spend $30.00, they are given a free and exculsive gift bag made out of a scarf designed by Vivienne Westwood. • Discounts are also given to customers to use during the Pop-Up shop events
LOCATIONS
Manhattan
NY
Chicago IL San Francisco CA
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Denver CO
Columbus OH
LOCATIONS 3.
1.
5. Denver, CO--16th Street Mall (Aug 1-3)
Columbus, OH--Arena District (Jul 18-20)
Manhattan, NY-Central Park (Jul 11-13)
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Chicago, IL-Millennium Park (Jul 25-27)
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San Francisco, CA-Outside Lands Festival (Aug 8-10)
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end