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. Michael Porter uses 4 strategies that an organisation can choose from. This positioning works very well for Lush as indulging in their products is a pampering, guilt-free and fun experience for customers. Larger stores and moe personalized service. It also makes customers more confident in parting with their money as Lush products often cost a lot more than equivalent items. 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). Change ), You are commenting using your Google account. But the experience is better than most retail brands with comparable rates. The random acts help make customers feel more valued, as well as warmer towards the brand, which can keep them coming back. Interaction is the cornerstone of the Lush experience, with the company designing its stores for customers to get stuck in by using all their senses to explore the products. In fact this year it also held a two-day Lush Summit where customers could see new and exclusive products first. The strengths and weaknesses are obtained from internal organization. Staff add to this by regularly ‘detonating’ bath bombs and other products in basins throughout Lush stores. We take a closer look at the company’s strategy and what you can learn from its success. 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’s retail strategy is all about turning the usual cosmetics buying process on its head. 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… Change ), You are commenting using your Twitter account. Here is what makes the company stand out: Lush is a self-proclaimed cosmetics grocer and the experience in-store is an integral part of the brand positioning. 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. This messaging is communicated across all of Lush’s channels from social media to product packaging to window displays. © Insider Trends 2020. The company offers other perks as well, such as paid holiday if your birthday falls on a normal working day. Lush Company has been able to position itself ahead of its rivals due to its differentiation strategy. 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. 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. 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. By Sarah Vizard 1 Apr 2014 Lush uses honey, flowers, synthetic oils, essential oils, as well as bee wax in its production. 6. Goran's layout adjusts itself depending on the device you are using. This makes Lush something of a hub for customers with the same views. Again this helps customers feel like they are buying into the company’s expertise, as well as good quality, healthy produce. 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. 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. This again emphasises the freshness as customers can see exactly when it was made. The Emotional Brilliance line is composed of a wide selection of liquid lipsticks, cream eyeshadows, and liquid eyeliners. A point in the brand’s differentiation scale, was the the Naked campaign. These are combined with the finest essential oils and safe synthetics from sustainable suppliers around the world, making the products 100% vegetarian too. The brand’s differentiation strategies focus on the product, from the quality to the appearance and style. Lush isn’t one of those places you suddenly decide to pop in to for some bubble bath. Community is a huge element of Lush’s strategy, driven in equal parts by its brand fans, or ‘Lushies’ and its ethical stance. Some Lush stores take this experiential offering even further with in-store spas offering a series of treatments using Lush products. Customers are also able to submit requests as to which products they’d like to see made available to buy. In keeping with the company’s ‘naked’ policy, many products are sold without any packaging which makes their bright colours a central feature. There are two ways a business can use pricing strategy for product differentiation: premium pricing and under-cutting the competition. Through product interaction customers are buying into the theatre that Lush stores promise and falling in love with products. What makes Lush different to other retailers and The Body Shop in particular is the in-store and online experience. 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. 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. It differentiates itself from competitors with eco-friendly packaging, organic ingredients, and refusal of animal testing. Inventors of the bath bomb and home of bath art. Thanks to this strategy Lush has control of its image and its costs. When a person is faced with a shelf of products or similar services, … Company: Lush Handmade Cosmetics 1. Lush has adopted an exclusive distribution strategy that is consistent with its high-end positioning and its one-to-one strategy. Again, this can be a major draw for customers who want to make better choices with their buying. 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. 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. During the launch, all the staff in the store were naked, except for their aprons that had the phrase “Ask me why I am naked” emblazoned across the front. The Body Shop is a natural beauty supply shop with products that reach all demographics. Now, what does this look like in action? We use cookies to ensure that we give you the best experience on our website. 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. 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. 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. 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. 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. Some items have beeswax, honey, eggs, milk and lanolin. 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. 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. In my line of work, strategising on how to differentiate against the competition and position our brand is an important focus. The stores also help to communicate the freshness of Lush products and ingredients. It means customers are more likely to buy what is recommended to them. Can you say the same? Rather than selling an image, LUSH found its niche by selling a viewpoint on how they define beauty. 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. It’s not afraid to have an opinion. Lush Inc. specializes in organic beauty products that range from skincare, hair care, body, shower ,and perfumes. 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. 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. Create a free website or blog at WordPress.com. For Lush devotees, until very recently the company ran its Kitchen programme, where customers could buy short-run exclusive or discontinued products. Tip: Generic strategies apply to not-for-profit organizations too. Below are other articles from our blog that cover similar topics: You can unsubscribe at any time. ( Log Out /  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. Lush Cosmetics is one of the brands that I follow that definitely differentiates against the competition and is one of my favourite stores. What makes Lush different is the fresh approach to the way their products are made. The brand shows that you can have a stance and use your brand as a platform, and still be successful. It’s a space for them to hang out and talk with like-minded people. 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. To be able to hold two highly-attended events in one year shows impressive brand power. So for this reason, I follow different brands to observe their strategies and tactics. It even taxes itself on its carbon footprint. ( Log Out /  The Generic Strategies can be used to determine the direction (strategy) of your organisation. Vegetarian, vegan and cruelty free cosmetics, handmade by real people fresh from our kitchens straight to your bathroom. Firstly, Lush provides freshest cosmetics from harvested fruit and veggies which are 100% vegetarian. 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. Customers are invited to gather round and get involved. There’s the promise of surprise and magic with Lush products that your average bottle of bubble bath doesn’t have. These values are palpable in-store and at other touchpoints, making Lush different to most competing brands. http://www.bizcommunity.com/Article/196/457/151534.html, https://www.instagram.com/lushsouthafrica/. The company produces all its beauty products using vegetation and fruits. (Renbarger,2014) Lush’s products are designed to create differentiation on the marketplace, therefore everything is handmade in the Lush Kitchen. LUSH. 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. All Rights Reserved. Change ). Differentiation is a strategy that has the ability to give business organizations a competitive advantage ahead of their rivals. The Lush brand positioning is quirky, colourful, creative, indulgent, pampering, ethical, fun and fresh. ( Log Out /  Lush had developed an evangelical customer base, which included many celebrities. 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. On the one hand the company has managed to make buying, and using, relatively dull, essential items like soap and shampoo fun. Change ), You are commenting using your Facebook account. All the cosmetics available in their stores and online are handmade from only fresh fruit and vegetables, and where possible, are organic. 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. Differentiation, in marketing, means creating specialized products, services, or experiences that position your brand at a competitive advantage within a specific market segment or segments. 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. Differentiation is more than a strategy or series of strategies – it's a way of thinking about teaching and learning. 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