Lush Marketing Plan

Program MSC Management MARKETING MANAGEMENT pic ASSESSMENT Submitted to programme Administrator Carrie flitcroft Lecturer Nichole Dunlop Submitted by DATED 19th APRIL 2012 Executive Summary This constitution is to provide a merchandise plan and analysis of entering in uk market for luxurious cosmetics growths oer the next collar social classs. This report explores and considers the various factors which impacts alky cosmetics produce in bourn of entering the market.There argon methods which can be taken with this organisation, were researched the main focus will be to pass go forth in recoilation around fresh handmake cosmetic product. Advertise existing products and introduce freshfangled products to the market. g all in allop market by existing and new products such as massage bars, shampoo bars, kids soaps, naked products lard sales through online retailing websites, high street store. The main focus of this report is gainth a three-year marketplaceing Plan of fast products which will improve the sale of participation in the UK market.The main elements of this report will include Introduction about lush and clarify lushs go under go the UK structure market Marketing objectives Marketing strategy Strategic implementation and mold 1. lush and where is lush now? 2. 1 voluptuary drenching is a handmake cosmetics company headquartered in Poole, Dorset in the UK. In 1994, husband and wife Mark and Mo Constantine opened the first Lush store in Poole under(a) the name Cosmetic House Limited. Lush adopted its current name on 10 April 1995.There atomic number 18 now more than 600 stores in 43 countries. Lush produces and dish outs a variety of handmade products, including soaps, shower gels, shampoos and whisker conditi nonpargonilrs, bath bombs, bubble bars, hand and body lotions and face masks. Lush uses growths and vegetables, essential oils, synthetic ingredients, honey and wax in their products. In addition to not using a nimate being fats in their products, they are also against animal testing and perform tests solely with volunteers instead. As the company was in its early stages it has limited distribution.Now, Lush grapples products in UK France, USA, Philippine, Australia and more than 38 countries, however its objective is expand in the future. 2. 2. The SWOT With the SWOT summary, the paper describes Lushs internal and external environment which essential for its process of strategic planning. From a SWOT Analysis a marketing strategy can be developed using corporate strengths, avoiding corporate weaknesses, benefits form the future opportunities and regards of future risks (Bohm, 2009). Strength Weakness All the products are fresh handmade Low currency flow Lush save focus on making ethical products Less marketing and advertize Reduce packing cost Less outlet and store Environmental kilobyte products, close to nature. Prices are high considering the position they are Less or no artificial ingredients Wide range of products preposterous display style Opportunities Threats People wish to use fruit and vegetable made skin address products Less knowledge for use of lush products Using recycled material will change magnitude interst from clients Strong argument Against animal testing increase customer loylty Lowing speed to made products Lush can develop set ahead with in the uk and many more countries Very few compatitors as sole ethical companies 2. 3. Lush position Through SWOT analysis (App terminalix 1), Lush has low market share but high grow rate.Lush position can be seen in Boston Consulting Group Matrix (Figure 1). Figure 1 Lushs position in Boston Matrix pic showing lush position in market Clarifying the lushs position is very useful and essential for them to orient their objectives and do marketing planning and strategy. There is no point deciding where your business is going until you have actually trenchant with great clarifi es where we are now (Sir John Harvey Jones, ex ICI chairman). 3. The UK structure market 3. 1. Market analysis Market analysis is determining the attractiveness of a market and looking for growth opportunities and threats related to the strengths and weaknesses of the company (Aaker, 2008). 3. 2. node analysis The most strategic market-planning contexts, the first logical step is to analyse the customers(Aaker and McLoughlin, 2010, pp 26). Customer analysis is one of the important factors used to create the success of a firm as it enables firms to understand the current activities of customer and their behaviour, which helps firm to increase profits and competitive advantage in the market (Paley, 2006). Hand made cosmetics is a fairly new market which is up coming within the cosmetics industry, where the issues of production and trading can be complex. According from the survey of Mintel (2007-2008), 60% customers thinks it is important that a company acts ethically (See appendix 3 ). 4. The marketing objectives of lush 4. 1. MissionMission and Vision Fresh handmade cosmetics lush believes in making effective products out of fresh fruit and vegetables , the finest essential oils and safe synthetics, without animal ingredients , and in writing the quantitative ingredient list on the away in buying only from companies that test for safety without the involvement of animals and in testing our products on mankind in making our own fresh products by hand, printing its own labels and making its own fragrances in long candlelit baths, sharing showers, massage and filling the World with perfume and the right to make mistakes, lose everything and spring again that its products should be good value, that we should make a profit and that the customer is always right that address like fresh and organic have honest meaning beyond marketing 4. 2. lushs objective in the next 3 years A company often plan its objectives found on the existing products and new products in existing market and new market.However, in limited report, my guinea pig only focuses on analyzing marketing strategy of Lush in the UK market. 4. 2. 1. New opportunities online Selling online may the gigantic emf market for Lush to afford in the UK market. The internet has been hugely important as in many other areas of retail. About 70% adults use shopping online, especially the ages from 25 to 34, the rate is or so 85% (See appendix 4). In addition to online retailers, there is a growing number of websites and blogs devoted to green issues. Many of the sites give full detailed information about ethical production and the different ingredients used, websites helps to increase selling by improving knowledge about ethic products for consumers.Lush can use their own website to sell products or through big website such as Amazon or Argos in the UK. 5. Marketing schema If Lush wants to achieve the above objectives, its products deal to be created a successful mix of the right product, sell at the right worth, in the right place and using the most suitable promotion (Marketing shamble 4P). 5. 1. Promotion strategy A retailer could stock the most attractive merchandise priced very competitively and have a convenient location but still fail to attract customers if he or she did not communication with them (Cox& Britain, 2000). The UK structure market analyze (Part 3. 1) stated that the issue of handmade cosmatics products complicated and not all of the UK customers understand it.Therefore, promotion should be the first step Lush need to carry out before they can sell their products. The customer analyze (Part 3. 2) indicates that if Lush wants to sell their fresh hand made products, they should improve knowledge about handmade production for the customers. And the success of the Lushs promotion are informing, persuading and reminding customers about Lushs handmade products through advertising, publicity, personal selling and sales promotion. a. advertis ing Advertising is a non-personal communication of information usually paid for and usually persuasive in nature, about products, services, or ideas by identified sponsors through various media (Kotler, 1999).The objectives of lushs advertising in the first year is bring lush image to the UK customer awareness. In the UK, advertising by extinguish is popular, about 29. 6% total share in 2009 (See appendix 7). However, internet advertising has quickly developed, increase 39. 5% in 2008 (See Appendix 6). As a result, lush should focus on dickens advertising ways press and internet. b. Sale promotion In short-term incentives, lush can encourage consumers by promotion activities. For example, in special holiday such as Christmas, mothers day, valentines day, season sale, Lush sells online with unload shipping, or discount price for old season products. c. Personal sellingPersonal selling is oral communication with potential buyers of a product with the sellers representative through face to face or address contact to gain benefit. Personal selling is an option help lush to improve knowledge about handmade cosmetics for the UK customers. d. Public congenators (PR) LUSH has generously supported seven Small Change stock projects in full, through the Charity caboodle Program. 100% of the retail price (minus taxes) of LUSH Charity Pot hand and body cream goes directly to carefully selected charities around the world that support animal rights, environmental protection, and humanitarian concerns That is an advantage of lush to create a good image in public.Hence, public relation activities are essential in building lush brand in the UK market. diffusion strategy Distribution strategy (place strategy) refers to how an organisation will distribute the product or service they are offering to the end user. Efficient and effective distribution is important if the organisation is to meet its overall marketing objectives. There are three main common distribution strate gies included intensive distribution, exclusive distribution and selective distribution (Hollensen, 2008). With the specific characteristics of handmade cosmetics products, lush should choose the second or the third exclusive or selective distribution. a. Selling online (exclusive distribution)As the paper analyses in the lush objectives (Part 4. 2. 1), selling online is potential distribution channel for lush. Thus, firstly, lush need to develop their website to become more attractive with customers. Consumers can conveniently shopping with lush website like easy select, purchase even exchange or refund. The website keeps continuously updating new products and offers. Secondly, lush can sell their products through other famed shopping websites in the UK such as Amazon or Argos. thank to three websites, customer can faster know lush products. b. Opening shops in England (selective distribution) Recently, lush only sells through 100 shops in England.But in the UK, there is high rat e of consumers buying cosmetic products in high street and department store, 56% and 32% (Figure 3) Figure 3 Where they regularly buy cosmetics products, November 2000 standpoint 1,526 adults aged 15+ pic Source Ipsos MORI/Mintel As a result, lush should open their own more lush shops in some of big cities in England. Opening the shops in England, lush can realise in the second years of strategy. The first years, lush should focus on develop selling online and promote brand. 5. 3. reaping strategy A product is anything that is offered to a market for attention acquisition, use or consumption and that ability satisfy a need or want (Kotler et al, 2008). a. Developing existing product naked satisfying bars Because of the reasons which were introduced in lushs objectives (part 4. . 2), the target product which is chose as the most important product in the UK market is naked square bar products. Although lush can introduce and sell all their collection such as bathing bars, massage bars and henna bars but in the 3 years of objectives the main product lush should focus on is only naked solid bars. Product design Recently, lush has limited the number of design, naked conditioning bars, shampoo bars. lush should present to variety products not only finical solid bars but also some placid kind of hand made products. Product quality lush products are guaranteed high quality made from fruit and vegetables. Product featureAll of lush products are fresh handmade from fruit and vegetables. It makes the specific for Lushs products. That is also the reason why the price is often higher. Brand Lush now is not famous brand but Lush can promote itself like Oxfam as ethical brand. b. Experimenting new product makeup products Based on the analysis in lush objectives (part 4. 2. 3), lush can experiment new product makeup products in the UK market in the third years of strategy. Preparing introduce makeup in the third year, lush need to research the UK makeup market, custom er analysis, and designing in the first two years. 5. 4. Price strategy Pricing has greatest impact on immediate performance of the business (Gilligan, 2009).With particular characteristics of ethical and handmade cosmetics, price of lUSH is just right. Figure 4 lushs price lush TOO CHEAP JUST RIGHT TOO EXPENSIVE In the first three years, Lush is a not well known in the UK market, therefore, at that time, Lush should focus on promotion strategy to improve brand value in customers image. It can be implementation by price strategy. In the first three years, Lush can attract new customers by reducing their profit to sell their product with cheaper price. For example, the price can be changed Figure 5 lushs accessories price change Old price New price Bath bombs From ? 3. 15 to ? 2. 40 From ? 3 to ? 2 Snow fairy From ? 15 to ? 13 From ? 13 to ? 5 exhibitioner scrub ? 8 ? 7 Price is one of the most flexible elements as it can be changed quickly. Using right price is important fac tor for Lush to achieve their objectives. 6. Strategic implementation and control Figure 5 Implementation time table strategy Task 2013 2014 % % % It is important that a company acts ethically 60 59 61 I have refused to buy products from a company of 45 45 45 which I disapproved I like to buy products from companies who give 41 38 45 something back to society I only buy products from a company with whose 19 18 20 ethics I agree Taken from the TGI survey of around 25,000 adults SOURCE BMRB GB TGI Q4 (July 2007-June 2008)/Mintel Appendix 4 Internet penetration at home/work/place of study or elsewhere, by demographic group and working status, Internet quarterly report, 2003-08 Appendix 7 pic