'Lush Marketing Plan\r'

'Program: MSC anxiety MARKETING MANAGEMENT [pic] ASSESSMENT Submitted to: Programme executive: Carrie flitcroft Lecturer: Nichole Dunlop Submitted by: DATED: 19th APRIL 2012 decision maker Summary This report is to provide a merc accomplishise plan and synopsis of immersion in uk commercialise base for voluptuary cosmetic’s overlaps over the close leash years. This report explores and considers the various factors which impacts soaking cosmetic’s harvesting in term of entering the food market.There ar methods which rump be taken with this organisation, were researched; the main(prenominal) rivet get out be to: • Spread data nigh fresh overhand cosmetic product. • elevate existing products and introduce new products to the market. • Expand market by existing and new products much(prenominal) as massage prohibit, shampoo exclude, kids soaps, naked products • Expand gross revenue done online selling websites, noble s treet stack away. The main focus of this report is growth a triplesome-year exchange Plan of elaborate products which will ameliorate the exchange of friendship in the UK market.The main elements of this report will include: • Introduction closely alky and polish off succulent’s come out • Analyse the UK body social structure market • Marketing accusatives • Marketing outline • strategic death penalty and control 1. excessive and where is plush-like right off? 2. 1 unsparing excessive is a hand do cosmetics company headquartered in Poole, Dorset in the UK. In 1994, conserve and wife Mark and Mo Constantine opened the scratch line soaker store in Poole under the pretend Cosmetic House Limited. soaker adopted its accepted name on 10 April 1995.There ar in a flash to a heavy(p)er extent than 600 stores in 43 countries. plush-like produces and sells a mannikin of handstitched products, including soaps, shower gels, s hampoos and hair conditioners, bath bombs, bubble debar, hand and body lotions and face masks. Lush uses harvest-homes and vegetables, ingrained oils, synthetic ingredients, honey and beeswax in their products. In addition to non employ puppet fats in their products, they are in any case over against sensual exam and perform tests solely with volunteers instead. As the company was in its early stages it has limited distribution.Now, Lush sells products in UK France, USA, Philippine, Australia and more than 38 countries, however its objective is expand in the coming(prenominal). 2. 2. The SWOT With the SWOT Analysis, the paper describes Lush’s internal and external environment which essential for its figure out of strategic homework. From a SWOT Analysis” a marketing dodge can be create using corporate strengths, avoiding corporate weaknesses, benefits form the future opportunities and regards of future risks” (Bohm, 2009). Strength: |Weakness: | |A ll the products are fresh camp-made |Low cash hunt | |Lush altogether focus on do honourable codeal products | little marketing and advertizement | | deoxidize packing cost |Less outlet and store | |Environmental green products, close to nature. determines are last considering the position they are | |Less or no artificial ingredients | | |Wide range of products | | |Unique introduction style | |Opportunities: |Threats: | |People wish to use ingathering and vegetable made skin care products |Less knowledge for use of lush products | | utilise recycled framework will increase interst from customers |Strong competition | |Against animal testing increase customer loylty |Lowing speed to made products | |Lush can farm further with in the uk and many another(prenominal) more countries | | |Very few compatitors as sole ethical companies | | 2. 3. Lush position finished SWOT psychoanalysis ( accessory 1), Lush has low market share but mellowed grow rate.Lush’ p osition can be seen in Boston Consulting stem Matrix ( range 1). pick up 1: Lush’s position in Boston Matrix [pic] wake lush position in market elucidate the lush’s position is very useable and essential for them to orient their objectives and do marketing planning and schema. â€Å"There is no point deciding where your line of credit is going until you experience actu each(prenominal)y decided with great clarifies 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 facial expression for growth opportunities and threats related to the strengths and weaknesses of the company (Aaker, 2008). 3. 2. Customer analysis The nearly strategic market-planning contexts, the first logical shade is to analyse the customers”(Aaker and McLoughlin, 2010, pp 26). Customer analysis is one of the grave factors used to create the achiever of a unwaveringly as it enables houses to understand the current activities of customer and their behaviour, which supporters firm to increase earningss and competitive advantage in the market (Paley, 2006). Hand made cosmetics is a jolly new market which is up coming inside the cosmetics industry, where the issues of production and trading can be complex. harmonise 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 stack Fresh handmade cosmetics lush believes in make 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 outside … in grease ones palmsing only from companies that test for safety without the affair of animals and in testing our products on humans … in making our own fresh products by hand, print its own labels and making its own fragrances … in grand candlelit baths, sharing showers, massage and filling the World with effect and the right to make mistakes, lose everything and start again … that its products should be approximate value, that we should make a profit and that the customer is always right … that words handle â€Å"fresh” and â€Å"organic” go through honest core beyond marketing 4. 2. lush’s objective in the next 3 years A company often plan its objectives based on the existing products and new products in existing market and new market.However, in limited report, my study only focuses on analyzing marketing strategy of Lush in the UK market. 4. 2. 1. New opportunities online sell online may the huge capableness market for Lush to afford in the UK market. The net income has been hugely important as in many other areas of retail. About 70% adults use obtain online, e finically the ages from 25 to 34, the rat e is approximately 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 by dint of big website such as virago or Argos in the UK. 5. Marketing Strategy If Lush wants to achieve the above objectives, its products need to be created a successful mix of: the right product, sold at the right scathe, in the right place and using the nearly suitable forward motion (Marketing Mix’ 4P). 5. 1. promotional material strategy â€Å"A retailer could stock the most attractive merchandise determined very competitively and have a convenient location but quiet down fail to attract customers if he or she did not communication with them” (Cox& Britain , 2000). The UK structure market analyze (Part 3. 1) give tongue to that the issue of handmade cosmatics products complicated and not all of the UK customers understand it.Therefore, promotion should be the first tonicity Lush need to carry out earlier 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 Lush’s promotion are informing, persuading and reminding customers about Lush’s handmade products through announce, publicity, personalised selling and sales promotion. a. Advertising Advertising is a non-personal communication of information ordinarily paid for and usually persuasive in nature, about products, services, or ideas by identified sponsors through various media (Kotler, 1999).The objectives of lush’s advertising in the first year is crop lush image to the UK customer a wareness. In the UK, advertising by press is popular, about 29. 6% complete 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 two advertising ways: press and internet. b. sales event promotion In short-term incentives, lush can encourage consumers by promotion activities. For example, in special holiday such as Christmas, mother’s day, valentine’s day, season sale, Lush sells online with free shipping, or discount price for old season products. c. individualised sellingPersonal selling is oral communication with effectiveness buyers of a product with the seller’s representative through face to face or telephone jot to gain benefit. Personal selling is an option help lush to improve knowledge about handmade cosmetics for the UK customers. d. Public relations (PR) LUSH has generously buttocks up seven Small Change Fund projects in full, through the Charity Pot Program. 100% of the retail price (minus taxes) of LUSH Charity Pot hand and body cream goes directly to carefully selected charities slightly the world that support animal rights, environmental protection, and addition concerns That is an advantage of lush to create a good image in public.Hence, public relation activities are essential in building lush notice in the UK market. Distribution strategy Distribution strategy (place strategy) refers to how an organisation will distribute the product or service they are offering to the end user. in force(p) and effective distribution is important if the organisation is to correspond its overall marketing objectives. There are three main common distribution strategies included intensifier distribution, exclusive distribution and selective distribution (Hollensen, 2008). With the specialized characteristics of handmade cosmetics products, lush should choose the uphold or the triad: 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 hands down shopping with lush website want easily select, purchase even exchange or refund. The website keeps continuously modify new products and offers. Secondly, lush can sell their products through other famous shopping websites in the UK such as Amazon or Argos. Thanks 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 rate of consumers buying cosmetic products in high street and department store, 56% and 32% ( externalise 3) Figure 3: Where they regularly buy cosmetics products, November 2000 Base: 1,526 adults elder 15+ [pic] Source: Ipsos MORI/Mintel As a result, lu sh 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 target. 5. 3. harvesting strategy A product is anything that is offered to a market for circumspection acquisition, use or consumption and that might see a need or want (Kotler et al, 2008). a. evolution existing product: naked solid bars Because of the reasons which were introduced in lush’s objectives (part 4. . 2), the target product which is chose as the most important product in the UK market is naked solid bar products. Although lush can introduce and sell all their aggregation 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 inves t to variety products not only particular solid bars but also some liquid chassis 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 Lush’s products. That is also the reason why the price is often higher. dishonor Lush now is not famous brand but Lush can promote itself like Oxfam as ethical brand. b. Experimenting new product: piece 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 one-third years of strategy. Preparing introduce makeup in the third year, lush need to research the UK makeup market, customer 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 cos metics, price of lUSH is just right. Figure 4: lush’s price lush | likewise 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 customer’s 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: lush’s 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 | |Shower dust |? 8 |? 7 | Price is one of the most flexible elements as it can be changed quickly. Using right price is important factor 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 | | moral philosophy I agree | | | | Taken from the TGI survey of around 25,000 adults SOURCE: BMRB GB TGI Q4 (July 2007-June 2008)/Mintel Appendix 4: net penetration at home/work/place of study or elsewhere, by demographic sort and working status, Internet quarterly report, 2003-08 | | Appendix 7: [pic]\r\n'