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This shows a holistic way in which the brand values were communicated through public relations activities. Face masks are displayed in bowls on ice like a deli counter which customers can dip in and out of to try. Find out how they can benefit your business here. 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. Vegetarian, vegan and cruelty free cosmetics, handmade by real people fresh from our kitchens straight to your bathroom. 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 even taxes itself on its carbon footprint. 6. Customers like to buy into the brand’s expertise and quality products. Lush had developed an evangelical customer base, which included many celebrities. Lush’s staff are one of the brand’s greatest assets. By stripping away excess packaging and thoughtfully designing the products the brand has managed to avoid thousands of kilograms of waste. The change in approach to packaging detailed on the Lush website was launched by making a statement in-store. Unlike other cosmetics brands on the market, LUSH advocates for ethical buying and purity of handmade products. Change ), You are commenting using your Twitter account. It's fast growth is helped by bigger store formats. 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. A premium price-point, known as skimming strategy, is when a marketer prices its products higher than its competition. 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. This again emphasises the freshness as customers can see exactly when it was made. Lush creates a feel-good experience for customers as it allows people to affiliate themselves with an innovative environmentally-conscious approach through their daily pampering rituals. The company produces all its beauty products using vegetation and fruits. Lush uses honey, flowers, synthetic oils, essential oils, as well as bee wax in its production. In fact this year it also held a two-day Lush Summit where customers could see new and exclusive products first. The resulting T-Mobile brand strategy differentiated the company from its competitors by emphasizing simplicity, fairness and value. 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. Again, this can be a major draw for customers who want to make better choices with their buying. 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. Marketing and Lush Fresh Handmade 7455 Words | 30 Pages. It’s not afraid to have an opinion. This positioning works very well for Lush as indulging in their products is a pampering, guilt-free and fun experience for customers. It presents Lush as a company that cares – about you and the wider world. 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. 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). ( Log Out /  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. By Sarah Vizard 1 Apr 2014 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 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. © Insider Trends 2020. It does not use animal fats, n… What makes Lush different is the fresh approach to the way their products are made. It seems you’re either a Lush devotee, or you tend to give its (rather odoriferous stores) a wide berth. Customers are invited to gather round and get involved. This makes Lush something of a hub for customers with the same views. In contrast, Lush stores are a riot of colour and smell. For this reason, I couldn’t help but put it on our list of differentiation strategy examples. The stores also help to communicate the freshness of Lush products and ingredients. Since it first began in 1995, Lush has always prided itself on its ethical principles. The Generic Strategies can be used to determine the direction (strategy) of your organisation. Their products range from cosmetics, skincare, and even baby These values are palpable in-store and at other touchpoints, making Lush different to most competing brands. The four strategies to choose from are: Cost Leadership Differentiation Cost Focus But the innovation and highlights of the products in Lush company are: differentiation, communication, fresh ingredients, environmentally-friendly packing. 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. Brand-conscious, impulsive and brand loyal customers will be viable segments. Lush is a UK-based cosmetics retailer that has grown to operate in 49 countries, and is quickly building its way in the highly competitive industry. 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. Larger stores and moe personalized service. 25% growth is projected for North America. All Rights Reserved. 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. Lush’s retail strategy is all about turning the usual cosmetics buying process on its head. Create a free website or blog at WordPress.com. The random acts help make customers feel more valued, as well as warmer towards the brand, which can keep them coming back. 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. So for this reason, I follow different brands to observe their strategies and tactics. 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. It also encourages fans to interact with one another and to share their favourite 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. Here is what makes the company stand out: 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. 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. 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. There are two ways a business can use pricing strategy for product differentiation: premium pricing and under-cutting the competition. In Lush, there hasn't been much diversification this year, however Lush Cosmetics made a bold step last year into the world of makeup with their Emotional Brilliance line. 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. Staff have a deep knowledge of the products on offer so they can help guide customers to the right items for them, with an explanation of what the ingredients are and what they can do for them. 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. It is a healthcare brand that manufactures several body products using only vegan or vegetarian recipes. Lush has also widened its reach to older consumers, with a larger proportion of 55+ shoppers, says the research firm. Even casual Lush fans get a boost from buying ethically – even if it was the fun that brought them to the brand first. The Lush brand positioning is quirky, colourful, creative, indulgent, pampering, ethical, fun and fresh. 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. Differentiation is a strategy that has the ability to give business organizations a competitive advantage ahead of their rivals. UK-born natural cosmetics brand Lush Cosmetics inhabits two worlds – the fun and the serious. Tip: Generic strategies apply to not-for-profit organizations too. To experience the very best of London’s retail for yourself, book one of our Insider Trends retail safaris. But the experience is better than most retail brands with comparable rates. This can be attributed to the fact that more of Lush’s products are perceived to have health benefits, attracting shoppers who would not normally consider shopping at the brand, particularly as we are seeing a blurring of the separation between beauty and wellbeing. The Body Shop is a natural beauty supply shop with products that reach all demographics. 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. Upon researching its top competitor is The Body Shop and Aubrey Organics. 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. 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. LUSH. Some items have beeswax, honey, eggs, milk and lanolin. Boards around the store provide details about specific ingredients and their benefits. 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. ( Log Out /  Goran's layout adjusts itself depending on the device you are using. It means customers are more likely to buy what is recommended to them. There’s the promise of surprise and magic with Lush products that your average bottle of bubble bath doesn’t have. Lush is a global beauty retailer. 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. 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. The policy even extends to Lush’s ecommerce site with customers able to request samples to be included with their orders. (Renbarger,2014) Lush’s products are designed to create differentiation on the marketplace, therefore everything is handmade in the Lush Kitchen. 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. This has real influence on what goes into production, so customers feel as though the brand cares about their opinions. Typically shopping for bath products or face cleansers is just a case of trawling aisles and comparing packaging. Don’t miss the top 50 uses of visual merchandising in retail for top inspiration. 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. ( Log Out /  Company: Lush Handmade Cosmetics 1. 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. It also makes customers more confident in parting with their money as Lush products often cost a lot more than equivalent items. 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. Lush, purveyor of rustic handmade soaps in an array of intoxicating fragrances and brightly colored bath bombs, is doing pretty damn well in 2017. 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 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. From product demonstrations, sneak peeks at new items, to live product making and experiential installations, it’s a completely immersive brand experience. Staff add to this by regularly ‘detonating’ bath bombs and other products in basins throughout Lush stores. Lush’s retail strategy is all about turning the usual cosmetics buying process on its head. The strengths and weaknesses are obtained from internal organization. The store design and all touchpoints relate to the positioning as customers are encouraged to test, smell and sample the products. They’re incredibly enthusiastic about the company and its products. To be able to hold two highly-attended events in one year shows impressive brand power. Can you say the same? 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. Inventors of the bath bomb and home of bath art. 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. The Emotional Brilliance line is composed of a wide selection of liquid lipsticks, cream eyeshadows, and liquid eyeliners. Lush Cosmetics is one of the brands that I follow that definitely differentiates against the competition and is one of my favourite stores. It also makes for a great shareable moment for online as well, which means customers want to capture it. In my line of work, strategising on how to differentiate against the competition and position our brand is an important focus. http://www.bizcommunity.com/Article/196/457/151534.html, https://www.instagram.com/lushsouthafrica/. Change ), You are commenting using your Google account. Thanks to this strategy Lush has control of its image and its costs. 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. Firstly, Lush provides freshest cosmetics from harvested fruit and veggies which are 100% vegetarian. Customers can then buy many of the products used to take home and recreate their experience themselves. Unique products or services. 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. Community is a huge element of Lush’s strategy, driven in equal parts by its brand fans, or ‘Lushies’ and its ethical stance. 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. It also humanises the production process by making it clear that a person, not a machine was involved in the making. 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. 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