Lush Cosmetics Case Study

In addition, the company had independent focus groups to help understand their consumers better. They have other brand they are trying to improve like Bethany Mota Collection, Live Love Dream, Tokyo Darling, Brooklyn Calling and Free State.

This report explores and considers the various factors which impacts lush cosmetic’s product in term of entering the market. There are methods which can be taken with this organisation, were researched; the main focus will be to:

Companies across the world are determined to compete for the survival of their brands. The magnitude of success of the marketing and advertising strategies of a new or existing product is majorly depended upon the organization itself. As a matter of stated facts when an organization advertises its products in the market they first have to identify the relevant answers of some questions like what is the product aiming at? What benefits will the user seek by this product? How the organization plans to position itself within the market and what differential advantages will the product offer over the competitors. Because the bottom line of all marketing and advertising campaigns, is to provide the suitable collection of benefits to the end users of the product. Successful companies are usually recognized as iconic brands. Success of a

LUSH –The Brand Name started their journey 30 years ago. LUSH was founded by Mark Constantine in 1995 with a hope of an initiative of natural cosmetic industry. In 1976 Mark Constantine was studying on trichology (Cosmetic study which concentrated on hair and scalp) and his friend Liz Weir, a beauty therapist both decided to start their own business.They started making products with natural ingredients in their kitchen. At that time Mark contacted with Anita Roddick (Founder of The Body Shop) and started to supply their beauty products for The Body Shop. They were the biggest successful provider for Body Shop over a decade. At this point of time Body Shop bought their product formulas.In 1987 they decided to start their own catalogue order cosmetics company called “Cosmetics To Go” (1987-1994). The company went bankrupt in 1994 due to not fulfilling customer’s requirement, cost of price and other issues. For this reason they sold the company. Finally in 1995 Mark

(cost of goods manufactured in 2008/ sales value for units produced in 2008) * ending inventory 2008

The main target market for the company is people of 15 and over years of the age, who represent healthy and luxurious lifestyle, and appreciate high quality product. Such people are mostly representatives of business who loves take care of their health and body: regular work out in gym, yoga, SPA, aroma therapies etc. Those people demonstrate elegant style in everything, starting from a coffee what they drink and finishing a shampoo or hand lotion what they use. Bright example of such group of customers can be those who prefer Starbucks coffee to Tim Horton’s one.

There is a famous saying that ‘cosmetics are not selling product but beauty.’ Therefore, it is important to keep planning and developing product to meet the needs of customers who pursue beauty. In line

Ulta Beauty is a chain beauty store with over 19,000 employees and 974 locations all across America. Ulta carries 20,000 products and 460 brands that consist of, cosmetic, skincare, haircare, and fragrance products for men and women.  Majority of their inventory and sales come from cosmetic makeup brands. Ulta carries higher end makeup brands and well as lower end drug store brands. Their main target market and customers are women of all ages who use any type of beauty product. Their wide range of products can reach to all types of customers and they offer something that majority of people use. In 2013 Mary Dillon former chief of US cellular and chief executive of Mcdonald's became the new CEO. Since then Ulta sales have increased largely. At the end of 2015

Brock beauty, Inc. is a company located in Los Angeles, United states of America specializing in the innovation of natural hair and skin care. The headquarter of the company is found in Oak Harbor BLVD Slidell in Los Angeles, The company was found in 2004 committed in delivering safe natural ingredients and formulae that have been clinically tested and verified to treat inside out. The better business bureau (BBB) has confirmed that the company meets and complies with the BBB accreditation standards. In other words, the business has been doing well in accomplishing high quality products and ensure competency in all sectors of their services.

The detail full version of this table is presented in appendix 1 in page number 8 (Hopkins, 2009).

I consider Sephora as a platform. They have become more than a product now because they have hundreds of brands and thousands of different products, the variety is considerably large. Other reason is, their affectivity on social media and also their websites; the beauty talk policy in their website has become a platform that brings people together and it is really like a huge forum.

Established in the United Kingdom in 1995, Lush specialises in cosmetics and personal care products. They are also known to have strong philosophies on being socially and environmentally responsible.

Competition – There increase in price based competition from local brands which was driving down revenues, while competitors such as Revlon, had already promoted movies, compounded with stiff competition from Asian brands in the Asian market.

The extra budget use in video production such video content, advertisement on YouTube. Budget will allocated to produce high quality online videos that spread and represent the Sephora brand image in better way among clients. It cost $20000 for each video but spend extra budget to stop low quality ads create negative impact on customers as well as brand awareness.

Makeup Art Cosmetics (MAC) was founded in 1985 in Toronto by Frank Toskan and the late Frank Angelo. The business plan concentrated on targeting young, fashionable females by creating cosmetic products which contain unique textures and colours. Using this strategy, the company targeted the ¡°hip¡± celebrities and other cosmetic influencers to gain recognition and market share in the younger consumer market. Since its inception, the company has grown to become a multi-national organization operating in over 180 locations worldwide. In the late 1990¡¯s, MAC was purchased by Estee Lauder, which has led to the alteration of the company¡¯s governance; the culture of the firm changed from that of an entrepreneurial-style with limited rules into