Question: T 2 Reflect on the factors in the outer environment of Lush that have pushed the company to adopt a distinctive marketing strategy. (5 points)
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2 Reflect on the factors in the outer environment of Lush that have pushed the company to adopt a distinctive marketing strategy. (5 points)
LUSH Success story Mark Constantine and Liz Weir first met in the early '70s while working at a beauty salon in the tiny seaside town of Poole, England. Mark was a trichologist (an expert in the science of the hair and scalp) and Liz was a beauty therapist, Both were interested in natural beauty products, so decided to create a business of their own. The duo developed a small operation called Constantine & Weir making hair products for local herbalists and salons, including The Body Shop. Later, with the help of Mo Constantine, Rowena Bird and Helen Ambrosen, they'd concoct small batches of products made from their own recipes and as The Body Shop gained popularity in the '80s, owner Anita Roddick bought the best-selling formulas and parted ways, leaving Constantine & Weir free to start a new venture. Now free to run amok with creativity, the Constantine & Weir crew founded a new company, Cosmetics To Go. CTG exploded onto the cosmetics scene in a burst of colorful catalogs and never-before-seen items such as bath bombs, solid shampoo bars and massage bars. The founders were able to experiment and play with ingredients, innovate and focus on issues close to their hearts, like fighting against animal testing. They developed a buying policy that ensured that no supplier tested on animals and funded work that highlighted alternatives to animal testing. Unfortunately, this period came to an abrupt end. After six short years, they'd blazed through all their money and found themselves bankrupt (Lush, 2020). A fresh start The arrival of Lush following the devastating loss of CTG was a humble one. The first shop was simply designed, and naked products did away with frivolous packaging-most money for this new business went into keeping things simple and sourcing fresh, quality ingredients. In fact, the Lush shops you see today aren't much different than the very first Lush shop in Poole. Lush today enjoys more than 900 shops worldwide (half of these are Lush owned properties) and in June 2017 Lush hit a 1.3 billion Dollar turnover (Morris, 2018). Lush is THE ART OF BATHING a privately owned company with a small number of shares available on an invitation basis only. The company operates in 49 countries, with approximately 20% of its stores located FRESH HANDMADE COSMETICS in the USA. In 2019, the largest Lush store was opened in Church Street, Liverpool, The 1,380m2 store features a florist, hair salon, perfume library and a spa Figure 1. Lust cosmetics (nackaging fron) cisplay A The company follows a 'no advertising policy in which the company does not spend money on TV campaigns or celebrity endorsements and instead relies heavily on user-generated content Products can also be advertised through staff engaging in 'random acts of kindness" where they are allowed to give away products to customers in need of cheering up, are celebrating a special occasion, they have a good relationship with or other reasons, Lush states that it does not have a target demographic, and that as a brand it is trying to make [its] stores welcoming to all" (Liffreing, 2018). LUSH Marketing / Case study / Product Global Cosmetics Market Size and Forecast (2014-2020) Globe By Gender Global Cosmetics Market Global Cosmetics Market Global Cosmetics Market By Category Gute Cats Markets expected to reach at $390.07 bin by 2020 Women Sknand Sun Care Hair Care 2020 2019 Deodorants - Men 2018 Makeup and color - 2017 2016 Fragan Women 2015 2011 : To Be Highest Revenue Skin and Sun Care Generating Segment by 2020 To Be Hohesivenue Denerating Growing at a CAGR of 3.7%(2015-2020) Segment by 2020 Global Cosmetics Market Top Impacting Factors Global Cosmetics Market By Geography North Chaystys Asie Hurrah erg DPs of theran Europe To Be Hye Generating Geography by 2020 CEL Mank2016 LUSH CEE 2013 CEE H24 R. Adara Pingood for treets skin care products Charging Style and Natural ngredients ring stages 2014 2000 1 3 first direct John Lewis richer SOUNDS 82 3 For More Details See Table of Contents 0.00 22 3 Figure 2. Global Cosmetics Market (AMR 2020) A amazon 3 EN 380 17 Figure 3. Best Customer service brands based on 10,177 British customers (KPMG Nurwood) R 780 2A 350 12 boods go 10 JPG 9 Questions (20 points) 1 What are Lush's products' features that make them different from their competitors? 65 points) 2 Reflect on the factors in the outer environment of Lush that have pushed the company to adopt a distinctive marketing strategy. Saoints) Which (product and service) marketing strategies is Lush building its success upon? (5 points) 4 Which brand development strategies best characterize Lush's growth? Please, explain your answer. (5 points) 3
