Executive Summary
LUSH is a cosmetics company founded in 1995, and since that year the company "has spent years developing what they call "naked" products that work really efficiently" (Smith & Milligan, 2015, p. 85). Over the past 20 years, the company "has transformed itself from a single shop company in 1995 to a multi-million dollar company with 850 shops in more than 50 countries" (qtd. in Storify.com). There are several major factors that contribute to the efficiency, successfulness, and popularity of LUSH products.
In the first place, according to Smith and Milligan (2015), the solid products offered by LUSH cosmetics "do not need preservatives or excess packaging, which is altogether kinder for the environment and allows the brand to invest 100 per cent of the cost of production in using better ingredients (p. 85). At LUSH, "management believes in creating effective products from organic fruits and vegetables, a supply chain free from animal testing, minimal packaging, ethical practices, and good products at good value" (Kohl, 2016, p. 328).
LUSH cosmetics is a company highly respected for its ethical brand image and corporate social responsibility. "Co-founder Mark Constantine says that the "real art" is creating a product where customers do not need to think about sustainability when they make their choice" (Kohl, 2016, p. 328). In actual fact, the culture of LUSH company and the products it offers is founded on this fundamental principle. "Part of the firm's mission statement states that 'we believe in the right to make mistakes, lose everything and start again'" (Burns, 2014, p. 106).
It also should be noted that the company "became The Body Shop's biggest supplier of cosmetics and Mark Constantine is credited for many of the elements of the ethical brand image that the company built over those early years, in particular their opposition to animal testing" (Burns, 2014, p. 106). Taking into consideration that LUSH products are also environmentally friendly, consumers tend to associate them with greater safety for themselves as well as for ecological environment, which is another aspect promoting the brand positive reputation.
Another factor of paramount importance which adds to the brand popularity is specialness of the products, including unique packaging, shapes and names. Consequently, LUSH products are considered to be fancy and fashionably acceptable.
There is another very specific feature of the company's activity that should be taken into account when analyzing the company's business. In particular, according to Bliss (2011), "there is a rule of thumb at LUSH cosmetics, and that is to fearlessly retire one-third of the product line every year". Otherwise speaking, rather than waiting for consumers to get tired of old and cloying products, LUSH "imposes a rigorous process to get rid of the old to make way for the new" (Bliss, 2011). That is what helps the cosmetics company stay fresh and pulls the customers back to LUSH products.
"A key way LUSH has been able to maintain its stance as a successful independent personal care retailer is by offering a unique style of retail which is distinct from other chains" (qtd. in Storify.com). In other words, this cosmetics company "undertakes a unique way of retailing to entice its customers, LUSH shops are inspired by delicatessens, attracting customers with their highly scented, visually appealing and unpackaged products" (qtd. in Storify.com).
Having regard to all of the above-mentioned advantages of LUSH company, the company has made real progress and actually passed with flying colors over the past years. However, in order to stay afloat and make greater advances, LUSH needs to ensure loyalty to the brand among the existing customers as well as to exert every effort in order to attract new customers and gain popularity among different target groups.
Problem Definition
Taking into consideration the ever growing competition between companies in the cosmetics industry and particularly, in the segment of natural and organic products in the beauty and personal care, LUSH company needs not only to keep currently existing consumers loyal to the brand, but also create new opportunities to attract new potential customers.
According to Bliss (2011), "LUSH spends little on advertising, as customers spread the word". However, word-of-mouth type of advertising is not efficient enough to raise awareness about the brand, create its positive image, and reach out to larger audience. Consequently, different means and techniques of advertising play a crucial role in promoting the brand and its products. In the first place, it is of fundamental importance to define the target groups. Basically, there are two different groups LUSH should focus its primary focus on: adults between 18 and 35 years and people above 40 years. Due to the specific needs and purchasing power of these segments, the company might generate greater profits.
It is clear that representatives of the two of above-mentioned target groups might respond differently to the same advertisement or commercial. Consequently, it is very important to determine and analyze various factors and product attributes motivating individuals to buy beauty products. On the basis of the results received, the company should define specific advertising techniques in order to appeal to each of the segments. The company should always keep in mind that only appropriate and well thought-out advertising strategy will help reach out to both groups of people and attract as many potential customers as possible.
References
Bliss, J. (2011). "I Love You More Than My Dog": Five Decisions That Drive Extreme Customer Loyalty in Good Times and Bad. Portfolio.
Burns, P. (2014). New venture creation: A framework for entrepreneurial start-ups. London: Palgrave Macmillan.
Kohl, K. (2016). Becoming a sustainable organization: A project and portfolio management approach. Auerbach Publications.
LUSH Competitive Advantage. (2013). Retrieved April 25, 2016, from https://storify.com/kwilkison/LUSH-competitive-advantage
Smith, S., & Milligan, A. (2015). On purpose: Delivering a branded customer experience people love. Philadelphia, PA: Kogan Page Limited.
The History of LUSH Cosmetics. (2013). Retrieved April 25, 2016, from https://storify.com/kwilkison/the-history-of-LUSH-cosmetics
