Innovative Marketing Strategies of Lush Fresh Handmade Cosmetics
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Wacky Products with Wackier Names
Lush offered a variety of products in skin care, bath and body care, off-beat gift ideas, etc. All the products were handmade. It used natural and organic ingredients wherever possible. The unique selling proposition of the brand was that the products were fresh and around 70 percent of the products had no preservatives...
New Product Development
Displayed 'Naked' - Packaging is Boring!
Lush used minimal packaging for its products. For instance, it sold solid bars of shampoos and deodorants. Soaps were wrapped in greaseproof paper while products like bubble bars and ballistics had no packaging at all. The products could be carried home in paper bags. It used color-codes to distinguish between organic products and natural products...
Pricing - Lush Offers Good Value
Generally Lush's products were usually priced less than the products of companies such as the Body Shop, but more than the offerings of local competitors and supermarkets. Many of Lush's products were designed as butchers' blocks, which were priced by weight...
Other Channels of Distribution
Lush had a multi-channel strategy. In addition to the chain of stores, Lush ran a mail order operation and also sold its products online. Since it had a wide range of products, the mail order catalogue was used for cross-selling products to existing customers. Nicholls said, "We have many single consumables which is a good foundation for mail order as it means a lot of repeat business. People start of with the bathing range, which is easy, but I view it as an entree to some seriously good skin and hair products." ...
Who Needs Traditional Marketing?
Lush did not have a traditional marketing department. It aimed to attract customers with a superior product offering and service, an addictive in-store experience, and an ethical agenda. Constantine felt that a good product was the best advertisement for the product. In addition to this, the various gift ideas of Lush which contained an assortment of different products of Lush enabled customers to try out different products themselves...
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