Marketing Assessment: Lush Cosmetics
In the industry of cosmetic products, the majority of companies have a particular target audience which mostly includes women of different ages, occupations, and cultural values. The company Lush Cosmetics, however, produces advertisements and goods that actively oppose the idea of female and male markets being separated in product selection and usage. Therefore, its analysis may reveal which details of the brand positioning statement contribute to this idea and whether they are effective in attracting a specific target audience.
The 5Cs’ of Lush Cosmetics begin with customers – the company offers a variety of cosmetic and hygiene products that are considered essential by the majority of people. For example, shampoos and shower gels, as well as soaps, are bought by people on a monthly basis. Other items such as face cleansing products may be bought more or less frequently depending on the customer’s needs. As a company, Lush satisfies then needs of customers in providing a wide variety of personal hygiene products.
However, the competition in the industry is extremely high if one includes all types of hygiene companies (Komatsu Cipriani S3536). The main competitors are “green cosmetics” firms such as the Body Shop that offers cruelty-free, vegetarian products, and advertises recycling and environmental protection (Lin 1). The collaborators include suppliers – Lush mentions that its’ ingredients often come from specific regions and small firms. The company does not work with distributors. The context of the business can be derived from its policies – women buy more cosmetic products than men, hand-made cosmetics take more time and cost more than manufactured ones, cosmetics have to adhere to federal and state laws.
The best target audience for Lush depends on the 5Cs. The potential segments include people who use hygiene products, young women, young men, environmental activists, women with middle-income levels, women with high-income levels, and others. The advertising campaigns seem to appeal mostly to young people and are focused on positivity, nature, and active position. The brand positioning of Lush implies that the brand produces funny, weird, imaginative products supplied with jokes and positivity (Monastra 527). However, the company also provides strong ethics and has a political position (“Our Policies”). Thus, the STP reveals young vegetarian or vegan women with middle to high income interested in the environment and animal rights as the best target audience.
The 4Ps directly support the brand positioning statement. The product is cosmetics – most items are brightly colored and scented, each item has a unique and memorable name and a history that adds personality and connects the brand to the customer. The price is high, being justified by the fact that each item is hand-made and the ingredients are ethically sourced and natural. The “place” is also ethical – Lush sells its products only in branded stores, all packaging is recyclable, and collections are seasonal. Finally, the promotion is heavily reliant on eco-friendly packaging and ingredients as well as sourcing, testing, and manufacturing. Advertisements are followed by charitable campaigns, protests, local issue initiatives, and thought-out use of media.
The base of “green” political issues is considered to be a popular subject in contemporary media, gaining Lush increased sales and widening it’s SOM (Share of Market). Loeb states that the business is getting increased attention from younger generations who are becoming interested in sustainable products and recycling (Lin 10).
Therefore, the opportunity creation driven model of forecasting suggests that the SOM of Lush will grow, taking up a large part of the segment market; but the company will not become more popular than major hygiene brands. This forecast is based on the consideration that the prices of Lush are still high which limits its targeting options and excludes the low-income segment. Although the category of personal hygiene is essential, Lush’s products are easily replaceable which adversely affects its sales. Overall, however, the SOM may be expected to grow due to the rise in ethical consumption.
Works Cited
Komatsu Cipriani, Tamami. “The Emerging Challenge of Brand Design and Brand Management in Social Innovations.” The Design Journal, vol. 20, sup. 1, 2017, pp. S3536-S3545.
Lin, Yifeng, et al. “An Exploratory Study of Consumer Attitudes Toward Green Cosmetics in the UK Market.” Administrative Sciences, vol. 8, no. 71, 2018, pp. 1-14.
Loeb, Walter. “Lush Beauty: Taking the Industry by Storm Thanks to Young Love.” Forbes. 2017. Web.
Monastra, Maria. “Make up for Lost Time and Money: Using the Lanham Act to Regulate the Cosmetic Industry.” William & Mary Business Law Review, vol. 9, 2017, pp. 521-549.
“Our Policies.” Lush Cosmetics UK. Web.