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System: MSC Management MARKETING SUPERVISION [pic] EVALUATION Submitted to: Programme Officer: Carrie flitcroft Lecturer: Nichole Dunlop Published by: OUT DATED: 19th APRIL 2012 Exec Summary This kind of report is to provide a advertising plan and analysis of entering in uk market for luxurious cosmetic’s goods over the subsequent three years. This report is exploring and thinks the various elements which influences lush cosmetic’s product in term of entering industry.

There are methods which can be used with this organisation, had been researched, the main focus will be to: ¢ Spread information about fresh hand made cosmetic product.

¢ Advertise existing products and introduce new products to the marketplace. ¢ Increase market by simply existing and new products just like massage bars, shampoo bars, kids soaps, naked items ¢ Broaden sales through online selling websites, high street store. The main objective of this report is growth a three-year Marketing Program of luxurious products that may improve the sale of company in the united kingdom market.

The primary elements of this kind of report will include: ¢ Launch about luxurious and clarify lush’s situation ¢ Analyse the UK framework market ¢ Marketing goals ¢ Marketing strategy ¢ Proper implementation and control 1 . lush and where is definitely lush now? 2 . one particular Lush Luxurious is a hand made cosmetics business headquartered in Poole, Dorset in the UK. In 1994, couple Mark and Mo Constantine opened the first Lavish store in Poole under the name Cosmetic Home Limited. Luxurious adopted the current term on 15 April 1995.

There are now more than 600 stores in 43 countries. Rich produces and sells various handmade items, including soaps, shower gel, shampoos and hair conditioners, bath bombs, bubble bars, hand and body creams and deal with masks. Lavish uses vegatables and fruits, essential natural oils, synthetic materials, honey and beeswax in their products. In addition to not employing animal body fat in their items, they are also against animal screening and execute tests solely with volunteers instead. While the company is at its initial phases it has limited distribution.

At this point, Lush provides products in UK France, USA, Philippine, Australia and more than 32 countries, on the other hand its objective is expand in the future. 2 . 2 . The SWOT With the SWOT Evaluation, the daily news describes Lush’s internal and external environment which necessary for its procedure for strategic organizing. From a SWOT Analysis a marketing approach can be created using company strengths, steering clear of corporate disadvantages, benefits make up the future options and ok bye of long term risks (Bohm, 2009). Strength: |Weakness: | |All the items are clean handmade |Low cash flow | |Lush only focus on producing ethical items |Less promoting | |Reduce packing price |Less store and retail store | |Environmental green items, close to character. Prices will be high with the position they are really | |Less or no man-made ingredients | | |Wide range of products | | |Unique display design | |Opportunities: |Threats: | |People wish to use fruit and veg made skincare |Less knowledge for use of lush items | |Using recycled materials will increase interst from buyers |Strong competition | |Against animal screening increase customer loylty |Lowing speed to made goods | |Lush can develop additional with in the united kingdom and many more countries | | |Very handful of compatitors because sole honest companies | | 2 . 3. Luxurious position Through SWOT analysis (Appendix 1), Lush has low market share but excessive grow charge.

Lush’ situation can be seen in Boston Consulting Group Matrix (Figure 1). Figure 1: Lush’s position in Boston Matrix [pic] showing lush placement in market Clarifying the lush’s position is very valuable and necessary for them to navigate their goals and do marketing planning and strategy. “There is no stage deciding exactly where your business goes until you have actually made a decision with great clarifies exactly where we are now (Sir David Harvey Jones, ex ICI chairman). three or more. The UK structure market a few. 1 . Industry analysis Market analysis can be determining the attractiveness of a market and searching for expansion opportunities and threats associated with the strengths and weaknesses in the company (Aaker, 2008). 3. 2 . Buyer analysis The most strategic market-planning contexts, the first rational step is to analyse the customers(Aaker and McLoughlin, 2010, pp 26). Customer research is one of the key elements used to make the success of a strong as it enables firms to comprehend the current actions of consumer and their behavior, which assists firm to increase profits and competitive edge in the market (Paley, 2006). Handmade cosmetics can be described as fairly fresh market which can be up coming in the cosmetics industry, where the concerns of production and trading can be complicated. According from the survey of Mintel (2007-2008), 60% buyers thinks it is vital that a company acts ethically (See appendix 3). 4. The marketing aims of rich 4. 1 . Mission

Mission and Eye-sight Fresh hand made cosmetics luxurious believes in making effective items out of fresh fruit and vegetables, the optimum essential natural oils and safe synthetics, without creature ingredients, and in writing the quantitative component list externally ¦ in ordering only from companies that evaluation for security without the involvement of pets and in screening our items on humans ¦ to make our own clean products by hand, printing its very own labels and making a unique fragrances ¦ in long romantic baths, posting showers, therapeutic massage and filling the World with perfume and the right to make a few mistakes, lose every thing and start again ¦ that its products needs to be good value, that we should generate income and that the buyer is always right ¦ that words just like “fresh and “organic include honest meaning beyond advertising 4. installment payments on your lush’s objective in the next three years A company frequently plan their objectives based on the existing products and new products in existing market and fresh market.

However , in limited report, my personal study simply focuses on examining marketing strategy of Lush in the UK market. 4. 2 . 1 . New opportunities online Offering online may possibly the huge potential market to get Lush to pay for in the UK market. The internet has been hugely crucial as in many other locations of full. About 70 percent adults use shopping online, especially the ages coming from 25 to 34, the speed is around 85% (See appendix 4). Furthermore to online retailers, there is a developing number of your site devoted to green issues. Most of the sites offer full comprehensive information about ethical production and the different elements used, websites helps to maximize selling simply by improving information about ethic products for consumers.

Lush may use their own web page to sell goods or through big web page such as Amazon . com or Argos in the UK. 5. Marketing Strategy If Lush desires to achieve the above objectives, usana products need to be create a successful mix of: the right merchandise, sold at the ideal price, inside the right place and using the the most suitable promotion (Marketing Mix’ 4P). 5. 1 . Promotion approach “A store could share the most desirable merchandise priced very competitively and have a convenient location but nonetheless fail to entice customers if she or he did not connection with them (Cox, Great britain, 2000). The UK structure marketplace analyze (Part 3. 1) stated the issue of handmade cosmatics products complicated and not all of the UK customers understand this.

Therefore , advertising should be the first step Lush need to carry out just before they can sell their products. The consumer analyze (Part 3. 2) indicates that if Rich wants to offer their fresh hand made products, they should boost knowledge about hand crafted production intended for the customers. And the success of the Lush’s advertising are educating, persuading and reminding consumers about Lush’s handmade items through marketing, publicity, personal selling and sales promo. a. Marketing Advertising is known as a non-personal interaction of information generally paid for and usually persuasive in nature, about products, companies, or suggestions by determined sponsors through various mass media (Kotler, 1999).

The aims of lush’s advertising inside the first yr is take lush picture to the UK customer recognition. In the UK, advertising and marketing by press is popular, about twenty nine. 6% total share last year (See appendix 7). However , internet advertising offers quickly developed, increase 39. 5% in 2008 (See Appendix 6). As a result, lush should give attention to two advertising and marketing ways: press and net. b. Deal promotion In short-term incentives, lush may encourage buyers by campaign activities. For instance , in special holiday including Christmas, mom’s day, valentine’s day, season sales, Lush sells online with free shipping, or perhaps discount cost for old season products. c. Personal selling

Personal selling can be oral interaction with potential buyers of a product with the seller’s representative through face to face or perhaps telephone contact to gain profit. Personal advertising is an option help lavish to improve know-how about handmade makeup products for the united kingdom customers. m. Public relations (PR) LUSH features generously supported seven Tiny Change Finance projects in full, through the Charitable organisation Pot Program. 100% of the retail selling price (minus taxes) of LUSH Charity Pan hand and body cream goes right to carefully picked charities around the world that support animal privileges, environmental safety, and humanitarian education concerns That may be an advantage of lush to make a good picture in public.

Consequently, public relationship activities are necessary in building lush company in the UK industry. Distribution approach Distribution strategy (place strategy) refers to just how an business will disperse the product or perhaps service they are really offering to the end user. Efficient and effective distribution is very important if the enterprise is to fulfill its overall marketing aims. There are 3 main prevalent distribution strategies included intense distribution, exclusive distribution and selective syndication (Hollensen, 2008). With the particular characteristics of handmade cosmetic makeup products products, lush should select the second or maybe the third: exclusive or selective distribution. a. Selling online (exclusive distribution)

As the paper studies in the luxurious objectives (Part 4. installment payments on your 1), advertising online is usually potential division channel intended for lush. Hence, firstly, luxurious need to develop their website to be more attractive with customers. Customers can conveniently shopping with luxurious website like easily select, purchase possibly exchange or perhaps refund. The web site keeps continually updating new releases and offers. Second, lush can sell their products through other popular shopping websites in the UK including Amazon or Argos. As a result of three websites, customer can faster know lush items. b. Beginning shops in England (selective distribution) Recently, lavish only markets through 95 shops in England.

But in the united kingdom, there is excessive rate of consumers buying cosmetics in high-street and variety store, 56% and 32% (Figure 3) Figure 3: Exactly where they regularly buy cosmetics products, Nov 2000 Base: 1, 526 adults aged 15+ [pic] Source: Ipsos MORI/Mintel Therefore, lush ought to open their own more lavish shops in some of big metropolitan areas in England. Opening the shops in England, luxurious can realize in the second years of strategy. The 1st years, luxurious should give attention to develop offering online and showcase brand. your five. 3. Product strategy An item is whatever is offered into a market for attention obtain, use or consumption and that might meet a need or perhaps want (Kotler et approach, 2008). a. Developing existing product: nude solid bars Because of the factors which were presented in lush’s objectives (part 4.. 2), the target item which is selected as the most important product in the UK market is bare solid tavern products. Even though lush may introduce promote all their collection such as showering bars, massage therapy bars and henna bars but in the 3 years of aims the main item lush will need to focus on is only naked stable bars. Merchandise design Lately, lush features limited the amount of design, naked conditioning bars, shampoo bars. lush ought to invest to variety goods not only particular solid bars but also some liquid sort of hand made items. Product top quality lush items are assured high quality made out of fruit and vegetables. Product feature

All lush goods are refreshing handmade via fruit and vegetables. It makes the specific for Lush’s products. That is certainly also the reason why the price can often be higher. Company Lush now could be not famous brand but Rich can encourage itself like Oxfam while ethical manufacturer. b. Experimenting new product: makeup products Based on the analysis in lush objectives (part some. 2 . 3), lush can experiment cool product makeup products in the united kingdom market in the third numerous years of strategy. Preparing introduce cosmetic in the third year, lavish need to research the UK makeup market, client analysis, and designing in the first 2 years. 5. four. Price technique Pricing offers greatest influence on immediate functionality of the business (Gilligan, 2009).

With particular characteristics of ethical and handmade makeup products, price of lUSH is just right. Determine 4: lush’s price lavish |TOO AFFORDABLE JUST RIGHT | TOO EXPENSIVE Inside the first 36 months, Lush is actually a not well , noted in the UK market, therefore , at that time, Lush should focus on promo strategy to improve brand worth in customer’s image. It could be implementation simply by price strategy. In the initial three years, Lush can catch the attention of new customers simply by reducing their very own profit to sell their merchandise with less expensive price. For instance , the price can be changed: Physique 5: lush’s accessories price change |Old price |New price | |Bath bombs |From? several. 15 to? 2 . 45 |From? 3 to? a couple of | |Snow fairy |From? 15 to? 13 |From? 13 to? 5 | |Shower clean |? 8 |? several | Cost is one of the most flexible elements as you possibly can changed quickly. Using right price is important factor for Lush to achieve all their objectives. 6. Strategic rendering and control Figure five: Implementation period table approach |Task |2013 |2014 | | |% |% |% | | | | | | |It is important that a firm acts ethically |60 |59 |61 | | | | | | |I have refused to buy goods from a company of |45 |45 |45 | |which I disapproved | | | | | | | | | |I like to buy products from corporations who provide |41 |38 |45 | |something returning to society | | | | | | | | | |I only buy products by a company with whose |19 |18 |20 | |ethics I agree | | | | Taken from the TGI survey of around twenty-five, 000 adults SOURCE: BMRB GB TGI Q4 (July 2007-June 2008)/Mintel Appendix some: Internet penetration at home/work/place of analyze or elsewhere, by market group and working position, Internet sydney, 2003-08 | | Appendix 7: [pic]

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