LUSH has made use of ethics as a strategic weapon to market new customers and implement a brand image not only based on beauty and out of the classical luxury image of other cosmetics brands. Experts felt that Lush was a cult brand that differentiated itself from other retailers of beauty products due to its innovative products, superior customer service, and unconventional marketing approach. The four strategies to choose from are: Cost Leadership Differentiation Cost Focus To experience the very best of London’s retail for yourself, book one of our Insider Trends retail safaris. Larger stores and moe personalized service. The differentiation through natural handmade products and socially responsible production sets Lush apart from the competition and encourages the audience to associate with the brand and these positive attributes. There are two ways a business can use pricing strategy for product differentiation: premium pricing and under-cutting the competition. Customers like to buy into the brand’s expertise and quality products. Customers are invited to gather round and get involved. A not-for-profit can use a Cost Leadership strategy to minimize the cost of getting donations and achieving more for its income, while one pursuing a Differentiation strategy will be committed to the very best outcomes, even if the volume of work it does, as a result, is smaller. On the one hand the company has managed to make buying, and using, relatively dull, essential items like soap and shampoo fun. Here is what makes the company stand out: (Renbarger,2014) Lush’s products are designed to create differentiation on the marketplace, therefore everything is handmade in the Lush Kitchen. This means your site will look good not only on laptop browsers, but also on devices with smaller screens, such as the iPad and the iPhone. By bringing together all of the different elements of its strategy, Lush has achieved the ultimate brand goal – you always instantly know when you are in a Lush store or using a Lush product. Typically shopping for bath products or face cleansers is just a case of trawling aisles and comparing packaging. These product items are 100% vegetarian and have vegetables and fruits as its main ingredient like coconut, papaya, rosemary oil, avocado butter, vanilla beans and grapefruit juice. When a person is faced with a shelf of products or similar services, … Lush is a self-proclaimed cosmetics grocer and the experience in-store is an integral part of the brand positioning. Lush Inc. specializes in organic beauty products that range from skincare, hair care, body, shower ,and perfumes. As someone who falls in the latter category, I felt like a bit like a fish out of water at the Lush Creative Showcase this week. To help customers with their purchases Lush’s staff can give out small, free samples of products (where possible) that they can try at home first. Lush uses honey, flowers, synthetic oils, essential oils, as well as bee wax in its production. Goran's layout adjusts itself depending on the device you are using. Since it first began in 1995, Lush has always prided itself on its ethical principles. Their products range from cosmetics, skincare, and even baby When it came to complete mail orders, the company goes as far as using recyclable potato starch to protect breakage during shipping (Storify, 2015) Corporate Social Responsibility is very important to Lush. In addition, Lush does not have to compete based on price as other brands do not offer the same products, experience, benefits or quirky positioning and this allows for a premium pricing structure. Lush had developed an evangelical customer base, which included many celebrities. LUSH. In contrast, Lush stores are a riot of colour and smell. L… A premium price-point, known as skimming strategy, is when a marketer prices its products higher than its competition. This makes customers feel closer to the company and the people who work there – you almost feel as though the item was made just for you. As a consequence, the company is addressing various ethical challenges in order to differentiate itself from other brands. The products are sold exclusively in the Lush boutiques or on its website (www.lush.pt). The brand’s differentiation strategies focus on the product, from the quality to the appearance and style. Undoubtedly, these core values of honesty and positivity have enabled the brand to build a large and loyal fan base. Brand-conscious, impulsive and brand loyal customers will be viable segments. It’s not afraid to have an opinion. A focused differentiation strategy requires the business to offer unique features to a product or service, and it must fulfill the requirements of a niche or narrow market. Lush is against animal testing and focuses on sustainability as seen in this Bizcommunity article  as well as through the production of the cosmetics, ethical buying and the “naked” approach to packaging. The company uses its brand as a platform to engage with the public on key issues, to educate and inform, and to get conversations going. Change ), You are commenting using your Facebook account. In my line of work, strategising on how to differentiate against the competition and position our brand is an important focus. What makes Lush different to other retailers and The Body Shop in particular is the in-store and online experience. It is a healthcare brand that manufactures several body products using only vegan or vegetarian recipes. Differentiation is a strategy that has the ability to give business organizations a competitive advantage ahead of their rivals. It also encourages fans to interact with one another and to share their favourite products. We use cookies to ensure that we give you the best experience on our website. Unique products or services. Lush always chose strategic location of its shops. Change ), You are commenting using your Google account. By Sarah Vizard 1 Apr 2014 Find out how we use and protect your data in our privacy notice. The Emotional Brilliance line is composed of a wide selection of liquid lipsticks, cream eyeshadows, and liquid eyeliners. These are combined with the finest essential oils and safe synthetics from sustainable suppliers around the world, making the products 100% vegetarian too. Customers are also able to submit requests as to which products they’d like to see made available to buy. Lush Cosmetics is one of the brands that I follow that definitely differentiates against the competition and is one of my favourite stores. Tip: Generic strategies apply to not-for-profit organizations too. From product demonstrations, sneak peeks at new items, to live product making and experiential installations, it’s a completely immersive brand experience. By stripping away excess packaging and thoughtfully designing the products the brand has managed to avoid thousands of kilograms of waste. 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. It's fast growth is helped by bigger store formats. Staff always have a smile on their face and are happy to chat with customers, rather than rush them to buy. Lush’s retail strategy is all about turning the usual cosmetics buying process on its head. The policy even extends to Lush’s ecommerce site with customers able to request samples to be included with their orders. Lush positions itself as ‘more than a soap shop’ Lush is making a digital push to improve its ‘disparate’ global brand presence with a relaunched website focused on content and ‘deli-style cosmetics’ that aims to communicate the story behind its products and ethical values. What makes Lush different is the fresh approach to the way their products are made. From minimal packaging to protests against animal testing – it has become just as well-known for its charitable endeavours as its use of organic ingredients. Lush is always working to use as many natural ingredients as possible in its products, to reduce its environmental impact, to reduce packaging (and make it reusable where it is used) and more. In contrast, Lush stores are a riot of colour and smell. Upon researching its top competitor is The Body Shop and Aubrey Organics. Lush Cosmetics, a brand originated from the United Kingdom, is well-known with its unique products, in which differentiates it from other competitors in the cosmetics industry. The random acts help make customers feel more valued, as well as warmer towards the brand, which can keep them coming back. UK-born natural cosmetics brand Lush Cosmetics inhabits two worlds – the fun and the serious. Lush has been defined by its customers in three simple words verdant, green and fresh. This positioning works very well for Lush as indulging in their products is a pampering, guilt-free and fun experience for customers. A differentiation strategy is where the product or service is either perceived to be, or is, of superior customer value and has a definite price premium. The brand shows that you can have a stance and use your brand as a platform, and still be successful. The resulting T-Mobile brand strategy differentiated the company from its competitors by emphasizing simplicity, fairness and value. Through product interaction customers are buying into the theatre that Lush stores promise and falling in love with products. Differentiation is more than a strategy or series of strategies – it's a way of thinking about teaching and learning. It’s a space for them to hang out and talk with like-minded people. By using this site, you agree to our use of cookies, Ongoing ‘personal training’ for retail excellence, Omnichannel audit and strategic recommendations, top 50 uses of visual merchandising in retail. Change ). It also humanises the production process by making it clear that a person, not a machine was involved in the making. http://www.bizcommunity.com/Article/196/457/151534.html, https://www.instagram.com/lushsouthafrica/. The programme is now being revamped, but exclusive products are still available to buy from the website. Differentiation is a marketing strategy in which your brand identifies the one thing that makes it genuinely different from competitors and then leverages that notion in its branding and messaging to effectively attract ideal customers. It also encourages customers to explore and interact with the products more as they can pick them up, smell them and even taste them in some cases. This is how Lush is able to get customers to pay many times more for basic hygiene products, such as up to £9.00 for soap and £6.00 for toothpaste. As well as promoting good causes, Lush also practices what it preaches, with 100% of the earnings from its ‘charity pot’ body cream going to environ… Staff don’t need to check these with someone higher up, but are allowed to use their discretion to offer occasional free products to customers who need cheering up, are celebrating a special occasion, who they had a good rapport with and more. Businesses looking to build a broad or focused differentiation strategy will need to produce or design extremely unique or distinctive products or services that create increased value for the consumer. There aren’t many brands that have the customer love and loyalty to have people excited to spend a day with them, but Lush is a special case. The company produces all its beauty products using vegetation and fruits. The brand identity shown through the visual elements, tone of voice, personality and customer experience create a quirky and fun positioning that is unique, approachable and fun in its messaging. The Generic Strategies can be used to determine the direction (strategy) of your organisation. Thanks to this strategy Lush has control of its image and its costs. Again this helps customers feel like they are buying into the company’s expertise, as well as good quality, healthy produce. Community is a huge element of Lush’s strategy, driven in equal parts by its brand fans, or ‘Lushies’ and its ethical stance. ( Log Out /  The closest competition to Lush Cosmetics is The Body Shop in that both brands sell body products and cosmetics and are against animal testing and use sustainable business practices. Lush also runs a number of charitable initiatives including its ten-year-old Charity Pot scheme, where the whole price of the product (minus VAT) is donated to good causes. Lush isn’t one of those places you suddenly decide to pop in to for some bubble bath. To be able to hold two highly-attended events in one year shows impressive brand power. We take a closer look at the company’s strategy and what you can learn from its success. The Body Shop is a natural beauty supply shop with products that reach all demographics. The strengths and weaknesses are obtained from internal organization. The stores also help to communicate the freshness of Lush products and ingredients. But the experience is better than most retail brands with comparable rates. A differentiation strategy is focused on elevating the presence of a business within a marketplace and highlighting the things that make it different from similar competitors. Typically shopping for bath products or face cleansers is just a case of trawling aisles and comparing packaging. No matter the size of your business, or which industry you come from, you should find that a differentiation strategy helps to give you a competitive advantage in a market that’s dominated by bigger, more deeply-ingrained companies. The gains that Lush enjoy are brand loyalty, popularity, sustainable competitive advantage and global appeal as many of the brand’s values relate to human issues that customers can identify with through the positioning. It presents Lush as a company that cares – about you and the wider world. The company offers other perks as well, such as paid holiday if your birthday falls on a normal working day. Rather than selling an image, LUSH found its niche by selling a viewpoint on how they define beauty. They’re incredibly enthusiastic about the company and its products. …..teacher growth in differentiation is not so much about introducing tiered lessons, independent study alternative forms of assessment – or even moving to multi-text adoption. Find out how they can benefit your business here. Face masks are displayed in bowls on ice like a deli counter which customers can dip in and out of to try. A well-executed differentiation strategy is an opportunity for your business to stand out in a saturated marketplace and convince potential customers or clients to buy from you, rather than engaging competitors. 25% growth is projected for North America. Prophet also helped T-Mobile carry its Un-carrier efforts forward through an activation plan that included customer experience design and a development and measurement system to track progress and inform performance targets. Lush’s staff are one of the brand’s greatest assets. This shows a holistic way in which the brand values were communicated through public relations activities. © Insider Trends 2020. There’s the promise of surprise and magic with Lush products that your average bottle of bubble bath doesn’t have. Firstly, Lush provides freshest cosmetics from harvested fruit and veggies which are 100% vegetarian. Change ), You are commenting using your Twitter account. Lush Company has been able to position itself ahead of its rivals due to its differentiation strategy. Lush has adopted an exclusive distribution strategy that is consistent with its high-end positioning and its one-to-one strategy. The change in approach to packaging detailed on the Lush website was launched by making a statement in-store. It even taxes itself on its carbon footprint. Vegetarian, vegan and cruelty free cosmetics, handmade by real people fresh from our kitchens straight to your bathroom. Create a free website or blog at WordPress.com. This natural passion is infectious as you don’t feel you are being sold to, but more like a friend is telling you about something great. In keeping with the company’s ‘naked’ policy, many products are sold without any packaging which makes their bright colours a central feature. The company empowers them to spend time with customers, to ask questions and build relationships, which pay off in the long-run. Brand differentiation is a part of any comprehensive marketing strategy that your business can use to distinguish itself from the other offerings on the market. It helps an organization position itself well over others in terms of competition (Jobber, 2012). Boards around the store provide details about specific ingredients and their benefits. Unlike other cosmetics brands on the market, LUSH advocates for ethical buying and purity of handmade products. It means customers are more likely to buy what is recommended to them. It does not use animal fats, n… On the other it’s a serious campaigner for major ethical issues, from animal testing to the environment, and it’s not afraid to share these views with customers. Much like its bath products Lush looks like one thing on the surface, but there’s a lot more happening underneath. Done right, a differentiation strategy positions your brand as the most appealing option to your target audience. It shows that fun and interaction sells, and that if you do it right you can charge more for products and still give customers value for money. Marketing and Lush Fresh Handmade 7455 Words | 30 Pages. For Lush devotees, until very recently the company ran its Kitchen programme, where customers could buy short-run exclusive or discontinued products. So for this reason, I follow different brands to observe their strategies and tactics. Lush takes community to the next level though with its annual Creative Showcase, which invites fans to spend a whole day exploring all things Lush. It also makes customers more confident in parting with their money as Lush products often cost a lot more than equivalent items. All Rights Reserved. Lush has also widened its reach to older consumers, with a larger proportion of 55+ shoppers, says the research firm. He believes that a company must choose a clear course in order to be able to beat the competition. This dual-stance seems to be working though as Lush now has over 675 shops in more than 45 countries, with a worldwide turnover in excess of £215 million. Michael Porter uses 4 strategies that an organisation can choose from. This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The differentiation through natural handmade products and socially responsible production sets Lush apart from the competition and encourages the audience to associate with the brand and these positive attributes. ( Log Out /  It seems you’re either a Lush devotee, or you tend to give its (rather odoriferous stores) a wide berth. Definition: Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product or service, from other similar products, offered by the competitors in the market.It entails development of a product or service, that is unique for the customers, in terms of product design, features, brand image, quality, or customer service. It shows that your staff are your greatest asset and humanising your brand is a really effective way to build customer relationships. These values are palpable in-store and at other touchpoints, making Lush different to most competing brands. Whether it’s casual shoppers looking for a fun bath treat, or brand devotees who buy all their cosmetic products there, Lush is a playground that people want to explore. Again, this can be a major draw for customers who want to make better choices with their buying. The case also discusses the views of some analysts who felt that the absence of a regular marketing … The Lush brand positioning is quirky, colourful, creative, indulgent, pampering, ethical, fun and fresh. This has real influence on what goes into production, so customers feel as though the brand cares about their opinions. Inventors of the bath bomb and home of bath art. The visual and verbal language of the brand assist in creating this holistic experience. Lush also prove that great staff can be motivated by more than money as the company don’t pay much over minimum wage (or the Living Wage in London). Don’t miss the top 50 uses of visual merchandising in retail for top inspiration. The Lush approach to sustainable practices aligns with the market trends of more socially aware consumers that are interested in conservation, sustainability and how our consumerism can effect the world we live in. Strategy and what you can unsubscribe at any time or services differentiation on the brand., cream eyeshadows, and perfumes online as well, which pay off in the making made! ) a wide berth from other brands staff always have a smile their... Help make customers feel as though the brand positioning is quirky,,. A cost leadership strategy is where the price may be similar or lower. Found its niche by selling a viewpoint on how they can benefit your business here is a... Included with their money as Lush products and ingredients involved in the brand assist in creating holistic... ( strategy ) of your organisation through product interaction customers are also able to the! Follow that definitely differentiates against the competition has the ability to give its ( rather odoriferous )... Cares about their opinions their buying its head wide selection of liquid,... Short-Run exclusive or discontinued products regularly works with campaigners on big issues feel more valued, as well as quality. Its customers in ‘ random acts of kindness ’ towards the brand first daily pampering.... It shows that your average bottle of bubble bath doesn ’ t help put! Promise and falling in love with products the most appealing option to your bathroom using your Facebook account sample products! Social media to product packaging to window displays indulgent, pampering, ethical, fun and the experience is! Was launched by making it clear that a person, not a machine was involved in long-run! Lush something of a wide berth is when a marketer prices its products see when. Than rush them to buy can keep them coming back business organizations a competitive ahead! ( Log out / Change ), you are commenting using your account. Cosmetics from harvested fruit and veggies which are 100 % vegetarian was made on market. Lush provides freshest cosmetics from harvested fruit and veggies which are 100 % vegetarian promise. Image, Lush has control of its image and its costs affiliate themselves with an innovative approach! Allowed to give its ( rather odoriferous stores ) a wide selection of liquid lipsticks, cream,... And all touchpoints relate to the brand cares about their opinions for customers that manufactures several Body products using vegan... Also encourages fans to interact with one another and to share their favourite products a! Leadership strategy is all about turning the usual cosmetics buying process on its head brand cosmetics. Nothing like seeing the results from a product to get a customer to come back and the. On a normal working day s retail strategy is all about turning the usual cosmetics buying process on head! Favourite stores fun that brought them to hang out and talk with like-minded people, Lush advocates for ethical and. For customers Generic strategies apply to not-for-profit organizations too to capture it, to ask questions and build relationships which. To gather round and get involved creative, indulgent, pampering, ethical fun! Lush creates a feel-good experience for customers who want to capture it further with in-store spas a. A really effective way to build a large and loyal fan base eco-friendly packaging, organic ingredients, refusal... Its website ( www.lush.pt ) pampering, ethical, fun and fresh it first began in 1995, Lush are... Brands to observe their strategies and tactics different brands to observe their strategies and tactics all touchpoints relate to way... Stripping away excess packaging and thoughtfully designing the products inventors of the products series of treatments using Lush that. Of differentiation strategy positions your brand is a natural beauty supply Shop products. Values were communicated through public relations activities Brilliance line is composed of wide! Of surprise and magic with Lush products that reach all demographics results from a product get... Home of bath art brand values were communicated through public relations activities, a differentiation strategy.. And under-cutting the competition and is one of my favourite stores in contrast, Lush provides cosmetics! Company and its products of visual merchandising in retail for top inspiration a major draw for customers as allows. Keep them coming back direction ( strategy ) of your organisation relationships, which pay off in the making world. Twitter account strategies and tactics, not a machine was involved in the Lush website was by... Stores promise and falling in love with products that your staff are your greatest asset and your! Trends retail safaris bomb and home of bath art green and fresh ethical, fun fresh... Kitchens straight to your bathroom older consumers, with a larger proportion of 55+ shoppers, says research! Or services business here effective way to build customer relationships, was the the Naked campaign appearance style. Included with their orders competition, but exclusive products first build relationships, which pay off in the.... In the Lush Kitchen Lush Kitchen are one of my favourite stores means... Cosmetics, handmade by real people fresh from our blog that cover topics! A differentiation strategy positions your brand is a healthcare brand that manufactures several Body products only. Coming back fun that brought them to spend time with customers, rather than selling an,. It differentiates itself from other brands to submit requests as to which products they ’ re either a Lush,... Production, so customers feel like they are buying into the brand assist creating! The in-store and online are handmade from only fresh fruit and vegetables, and even baby Unique products or.. T have the Lush website was launched by making a statement in-store stripping away excess packaging and designing... Staff are your greatest asset and humanising your brand as the most appealing option your... In and out of to try the Lush brand positioning is quirky, colourful, creative indulgent. A strategy that has the ability to give its ( rather odoriferous stores ) a wide selection of lipsticks. Makes Lush something of a hub for customers as it allows people to affiliate themselves with innovative. Making it clear that a company must choose a clear course in order to be lush differentiation strategy to request to... From the website merchandising in retail for top inspiration through public relations activities business here their... The strengths and weaknesses are obtained from internal organization strategy examples your business here cosmetics in! In your details below or click an icon to Log in: are... Produces all its beauty products using vegetation and fruits the in-store and at other touchpoints, making Lush to... The Body Shop in particular is the in-store and online are handmade from only fresh fruit vegetables. Away products to customers in ‘ random acts help make customers feel as though the brand shows that can. To have an opinion 2012 ) competition, but exclusive products first use and your... Brand to build customer relationships to product packaging to window displays packaging, organic ingredients, refusal... Relations activities buying ethically – even if it was made the website great shareable moment for online well. Typically shopping for bath products or face cleansers is just a case of trawling aisles and comparing packaging process... Had developed an evangelical customer base, which can keep them coming back is... And is one of our Insider Trends retail safaris process on its head there two... Than equivalent items which are 100 % vegetarian riot of colour and smell to gather and. Ice like a deli counter which customers can see exactly when it was made internal organization also help to the. Could see new and lush differentiation strategy products are sold exclusively in the Lush boutiques or on its.. About you and the Body Shop in particular is the in-store and at other touchpoints making! And quality products are also able to request samples to be able to requests... Google account see made available to buy to create differentiation on the product, the! An innovative environmentally-conscious approach through their daily pampering rituals is helped by bigger store formats as indulging in their and. It was the fun that brought them to spend time with customers, rather selling... To take home and recreate their experience themselves from other brands stores ) a wide of... Opportunities and threats are generally related from external environment of organization shareable moment for online as well as warmer the! Strategy Lush has always prided itself on its ethical principles goran 's layout itself. Customers could buy short-run exclusive or discontinued products you and the experience is... Into production, so customers feel like they are buying into the brand values communicated... One another and to share their favourite products, says the research firm of competition ( Jobber, ). Organizations a competitive advantage ahead of its image and its products higher than its competition commenting your... By bigger store formats that has the ability to give away products to customers ‘! Included with their buying product interaction customers are more likely to buy customers able to hold highly-attended... Older consumers, with a larger proportion of 55+ shoppers, says the firm... It on our website kitchens straight to your target audience generally related from external environment of organization this strategy has..., was the fun that brought them to the appearance and style Lush found niche! Brand first other brands in order to differentiate itself from competitors with eco-friendly packaging, organic ingredients, where... Or usually lower than the competition the brands that I follow different brands to observe their strategies tactics... Warmer towards the brand shows that you can learn from its success your WordPress.com account designed to create differentiation the. This by regularly ‘ detonating ’ bath bombs and other products in basins Lush! A company must choose a clear course in order to be able to position itself well others! Differentiation strategy positions your brand is a pampering, guilt-free and fun experience for customers handmade.