Innovative Marketing Strategies of Lush Fresh Handmade Cosmetics


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Please note:

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.

Case Details:

Price:
Case Code : MKTG160 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges  

Themes

Marketing, Product Development, Customer Service, Promotion, Marketing Communication, Public Relations
Case Length : 21 Pages
Period : 2002-2006
Pub Date : 2007
Teaching Note : Not Available
Organization : Lush Fresh Handmade Cosmetics
Industry : Beauty care / Cosmetics
Countries : UK, Europe, USA

Abstract:

This case is about the innovative marketing strategies and product development approach adopted by Lush Fresh Handmade Cosmetics (Lush), a UK-based producer and marketer of ethical beauty products. Lush was co-founded by Mark Constantine (Constantine) in 1995. The company had a flat management structure with the directors, including Constantine himself, actively involved in the operations of the firm right from new product development to personally training the employees. The company also did not have a traditional marketing department and relied more on unconventional products, wacky product names, in-store advertising, word-of-mouth advocacy, and public relations.

Constantine was also one of the pioneers who championed the cause against animal testing in the cosmetics and beauty care industry. Lush had developed an evangelical customer base, which included many celebrities. 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 case also discusses the views of some analysts who felt that the absence of a regular marketing department might prove counterproductive for the company. With the competition in the ethical cosmetics market expected to increase, some experts also felt that Lush, which had thus far remained an independent, private firm, could find it tough to stay competitive in the long run if it did not go public.

Issues:

» Understand the innovative marketing strategies and new product development approach adopted by Lush Fresh Handmade Cosmetics

» Identify the benefits and challenges faced by a privately held company with regard to managing its business growth and sustaining its values.

Contents:

  Page No.
You're Not Supposed to Eat it! 1
Background Note 2
Wacky Products with Wackier Names 5
New Product Development 5
Displayed Naked' - Packaging is Boring! 7
Pricing - Lush Offers Good Value 7
The Lush Experience 7
Other Channels of Distribution 8
Who Needs Traditional Marketing? 9
Ethical Roots, but not 'Preachy' 10
Managing Growth and Geographical Expansion 11
Competitors Beware! 12
Truly Iconoclastic 13
The Other View 14
Future Outlook 14
Exhibits 16

Keywords:

Mark Constantine, Lush Fresh Handmade Cosmetics, Cosmetics to Go, The Body Shop, Anita Roddick, Innovation and Creativity, Values and Ethics, Natural based ethical beauty products, People for the Ethical Treatment of Animals, B Never Too Busy To Be Beautiful, Evaluation and Authorisation of Chemicals Legislation, New Product Development, Entrepreneurship, Marketing Communication Strategy, Customer Service, Word of Mouth marketing, Beauty Care Costmetics, Public Relations

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