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时间:2014-12-17 13:26来源:www.ukassignment.org 作者:pesix1 点击:



Product and service--产品和服务
Background Of Lush Company Marketing Essay
As an entrepreneurial venture, Lush company is acknowledged as the successful cosmetic retailer which is created by Mark and Mo Constantine in Poole Dorset,United Kingdom under the name of Cosmetic House Limited in 1994( Wikipedia, 2012). It was in 1995 that they adopted Lush as company’s name due to the competition ran in the fledgling company’s first handmade newsletter and catalogue. Nowadays, Lush company has almost over 820 stores in 50 countries all over the world (Lush Website, 2012).
Product and service
Lush company’s products are: bath products, shower products, hair products, face and beauty products, body lotions and other products, perfume. But the innovation and highlights of the products in Lush company are: differentiation, communication, fresh ingredients, environmentally-friendly packing. Producers use the fresh fruits or vegetables to make different shaped products with different color for looking artisanal, which create the differentiation on the market. Besides, each producers’ name will be located on the products’ label for connecting the customer on the personal level and promoting the brand. Lush company also encourages the ethical value such as packing with the recycled materials (Marketline, 2008). According to the different types of innovation by Schumpeter (See Appendix1), Lush company belongs to type1 the introduction of a new or improved good or service (Paul Burns,2011).
Lush company not only provides the considerate service in the store but also providing the remade order for customer through the website. Consumers can also communicate with Lush through the publication of Lush Times (Lush Website, 2012).
Business Model
Stewart and Zhao (2000) define the model as ‘‘a statement of how a firm will make money and sustain its profit stream over time.’’ Therefore, the business model represents how the firm will be running. As Gary Hamel (2001) believes that there are four components of a business model, namely, core strategy (competition strategy), strategic resources( how a firm acquires and uses its internal and external resources), partnership network( suppliers, partners, other relationships), customer interface(how to interact with customers).
For Lush Company, I the form below can illustrate its business model.
Core strategy
Business mission ----We Believe (See appendix 2)
Product Scope----- personal care products
Basis for differentiation--- Use fresh ingredients and products are handmade
Strategic resources
Core competencies-----unique style of retail, retain its original focus, we believe……
Strategic assets---- corporation culture, brand reputation, ethical beliefs
Partnership network
A private owned company with subsidiaries in global
Customer interface
Target customer- young adult women ages12-30, diverse customer due to divers products
Fulfillment and support----natural ingredients and anti-animal testing trade
Pricing structure---- lower than the luxury brand like The Body Shop, higher than the products in the supermarkets.
Target market
A firms’ target market is the small number of group of individuals or business that it pursues or tries to appeal to in a certain time (Bruce R. and R. Duane Ireland, 2012).The primary target market of Lush focuses on the young adult women who ages 18-45, the urban adult women in highly populated cite, and the diverse market due to the diverse products. The second target market is the acquaintances of the primary target market (Kwilkison, 2012).
Pricing strategy
Price is the only component in the marketing mix that generates revenue, all other elements stand for costs( Kotler and Armstrong,2001). The most used methods to set the price of products for the entrepreneur are cost-based pricing and value-based pricing(Bruce R. and R. Duane Ireland, 2012). As Lush company uses the natural ingredients for handmade products, therefore, they price their products based on the costs rather than on what the market thinks it should receive. Compared with the local competitors and supermarkets, Lush products price a litter higher but less than the famous cosmetic company like Body Shop(Lush marketing project, 2012). Lush offers customer’s good value, most of their products varies from designing style and weight, which is also the value of products, therefore, Lush prices different item based on the ingredients and weight with high quality.
Brand Management
Branding contributes to the development of a company, a strong brand could become the powerful assets of a firm. As Bruce R. and R. Duane Ireland (2012) pointed that “One of the keys to effective branding is to create a strong personality for a firm, designed to appeal to the chosen target market”. Lush standardize its brand and stick to its value when globalize its market.
Partners must use brand name Lush rather than translated local language like Chinese in Twian, Japanese in Japan((Schmitt, Pan and Tavassoli 1994; Tavassoli1999; Zhang and Schmitt, 2001).
Concentrating on promoting brand value and emphasizing the beliefs of Lush, against animal testing, using fresh ingredients, making handmade products, protecting the planet, supporting communities and promoting happy people making happy soap (Marketline, 2008).
Localization of subsidiaries on website, all the subsidiaries of Lush should share the common value with Lush but they can promote products with different methods for adapting to the local market(Ping-Kuan Lin, 2012).
Route to market insource vs outsource
The insource of Lush can be understood as the internal competencies, mainly, the differentiation of products, the unique retail style. As those competencies could solidify the firm’s role in the external source and it lies at the heart of the business model (Applegate, 2001; Viscio and Pasternack, 1996).
Minimum packaging-----using recyclable and reusable materials as packaging, naked packing campaign(See appendix 3).
Customization-----interacting with the customers through the publication of Lush Times.
Ethical campaign replaces the advertising----- In August 21, 2008,Lush and Sea Shepherd launched Partnership Campaign to Protect Sharks(Wendy Evans,2009).
Advertising by the smell and experience in store.
Lush company encourages partners to invest in its firm and gives them exclusive rights to develop their brand, besides, they also embarked on single store franchising in some countries like France, Italy, Spain(Lush Website, 2012).
E-strategy is mainly shown form the firm’s website, the business models on the web that Lush used is the manufacturing model which uses the web to reach buyers directly and compressing the distribution channel. There are mainly three key parts on their web, purchasing part, customer-focus part, company propaganda part.
Buyers purchase products through the categories on the web(See appendix4)
Customer can reserve the limited products through section of Retro and find news of Lush on Lush Times(See appendix 5)
Company information presented on the web intends to attract partners and connect the subsidiaries(See appendix 6)

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