lush differentiation strategy

Differentiation is a strategy that has the ability to give business organizations a competitive advantage ahead of their rivals. ( Log Out /  Lush Cosmetics is one of the brands that I follow that definitely differentiates against the competition and is one of my favourite stores. The four strategies to choose from are: Cost Leadership Differentiation Cost Focus Customers can then buy many of the products used to take home and recreate their experience themselves. The Generic Strategies can be used to determine the direction (strategy) of your organisation. LUSH. Typically shopping for bath products or face cleansers is just a case of trawling aisles and comparing packaging. It’s a space for them to hang out and talk with like-minded people. 6. The case also discusses the views of some analysts who felt that the absence of a regular marketing … ( Log Out /  Lush is a global beauty retailer. What makes Lush different to other retailers and The Body Shop in particular is the in-store and online experience. Lush’s staff are one of the brand’s greatest assets. Lush creates a feel-good experience for customers as it allows people to affiliate themselves with an innovative environmentally-conscious approach through their daily pampering rituals. 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. 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. The random acts help make customers feel more valued, as well as warmer towards the brand, which can keep them coming back. There aren’t many brands that have the customer love and loyalty to have people excited to spend a day with them, but Lush is a special case. ( Log Out /  It’s not afraid to have an opinion. Find out how they can benefit your business here. The policy even extends to Lush’s ecommerce site with customers able to request samples to be included with their orders. Businesses looking to build a broad or focused differentiation strategy will need to produce or design extremely unique or distinctive products or services that create increased value for the consumer. The stores also help to communicate the freshness of Lush products and ingredients. The Body Shop is a natural beauty supply shop with products that reach all demographics. To experience the very best of London’s retail for yourself, book one of our Insider Trends retail safaris. A not-for-profit can use a Cost Leadership strategy to minimize the cost of getting donations and achieving more for its income, while one pursuing a Differentiation strategy will be committed to the very best outcomes, even if the volume of work it does, as a result, is smaller. 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 has made use of ethics as a strategic weapon to market new customers and implement a brand image not only based on beauty and out of the classical luxury image of other cosmetics brands. 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. For Lush devotees, until very recently the company ran its Kitchen programme, where customers could buy short-run exclusive or discontinued products. Typically shopping for bath products or face cleansers is just a case of trawling aisles and comparing packaging. 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. The brand shows that you can have a stance and use your brand as a platform, and still be successful. Differentiation is more than a strategy or series of strategies – it's a way of thinking about teaching and learning. Lush is always working to use as many natural ingredients as possible in its products, to reduce its environmental impact, to reduce packaging (and make it reusable where it is used) and more. 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. Some Lush stores take this experiential offering even further with in-store spas offering a series of treatments using Lush products. Community is a huge element of Lush’s strategy, driven in equal parts by its brand fans, or ‘Lushies’ and its ethical stance. Lush uses honey, flowers, synthetic oils, essential oils, as well as bee wax in its production. 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. This positioning works very well for Lush as indulging in their products is a pampering, guilt-free and fun experience for customers. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. These values are palpable in-store and at other touchpoints, making Lush different to most competing brands. By bringing together all of the different elements of its strategy, Lush has achieved the ultimate brand goal – you always instantly know when you are in a Lush store or using a Lush product. In fact this year it also held a two-day Lush Summit where customers could see new and exclusive products first. But the innovation and highlights of the products in Lush company are: differentiation, communication, fresh ingredients, environmentally-friendly packing. When a person is faced with a shelf of products or similar services, … Customers like to buy into the brand’s expertise and quality products. The programme is now being revamped, but exclusive products are still available to buy from the website. They’re also allowed to give away products to customers in ‘random acts of kindness’. Customers are invited to gather round and get involved. 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. Firstly, Lush provides freshest cosmetics from harvested fruit and veggies which are 100% vegetarian. Now, what does this look like in action? There’s the promise of surprise and magic with Lush products that your average bottle of bubble bath doesn’t have. 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. UK-born natural cosmetics brand Lush Cosmetics inhabits two worlds – the fun and the serious. This again emphasises the freshness as customers can see exactly when it was made. We use cookies to ensure that we give you the best experience on our website. This shows a holistic way in which the brand values were communicated through public relations activities. From minimal packaging to protests against animal testing – it has become just as well-known for its charitable endeavours as its use of organic ingredients. This has real influence on what goes into production, so customers feel as though the brand cares about their opinions. So for this reason, I follow different brands to observe their strategies and tactics. He believes that a company must choose a clear course in order to be able to beat the competition. For this reason, I couldn’t help but put it on our list of differentiation strategy examples. Lush had developed an evangelical customer base, which included many celebrities. Lush Company has been able to position itself ahead of its rivals due to its differentiation strategy. All Rights Reserved. It shows that fun and interaction sells, and that if you do it right you can charge more for products and still give customers value for money. ( Log Out /  (Renbarger,2014) Lush’s products are designed to create differentiation on the marketplace, therefore everything is handmade in the Lush Kitchen. Don’t miss the top 50 uses of visual merchandising in retail for top inspiration. Lush has been defined by its customers in three simple words verdant, green and fresh. 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. In keeping with the company’s ‘naked’ policy, many products are sold without any packaging which makes their bright colours a central feature. Michael Porter uses 4 strategies that an organisation can choose from. 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. Staff add to this by regularly ‘detonating’ bath bombs and other products in basins throughout Lush stores. 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. Lush isn’t one of those places you suddenly decide to pop in to for some bubble bath. But the experience is better than most retail brands with comparable rates. Change ), You are commenting using your Google account. 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. All the cosmetics available in their stores and online are handmade from only fresh fruit and vegetables, and where possible, are organic. 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. Goran's layout adjusts itself depending on the device you are using. Marketing and Lush Fresh Handmade 7455 Words | 30 Pages. By Sarah Vizard 1 Apr 2014 Where products are packaged in bottles or pots, they each have a sticker on them showing the face and name of the person who made it, as well as the production and use-by date. Through product interaction customers are buying into the theatre that Lush stores promise and falling in love with products. In contrast, Lush stores are a riot of colour and smell. A differentiation strategy is focused on elevating the presence of a business within a marketplace and highlighting the things that make it different from similar competitors. There are two ways a business can use pricing strategy for product differentiation: premium pricing and under-cutting the competition. 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). 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. 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… It presents Lush as a company that cares – about you and the wider world. As a consequence, the company is addressing various ethical challenges in order to differentiate itself from other brands. The company produces all its beauty products using vegetation and fruits. By using this site, you agree to our use of cookies, Ongoing ‘personal training’ for retail excellence, Omnichannel audit and strategic recommendations, top 50 uses of visual merchandising in retail. Lush had developed an evangelical customer base, which included many celebrities. 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. 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. It even taxes itself on its carbon footprint. The brand identity shown through the visual elements, tone of voice, personality and customer experience create a quirky and fun positioning that is unique, approachable and fun in its messaging. Again this helps customers feel like they are buying into the company’s expertise, as well as good quality, healthy produce. Lush’s retail strategy is all about turning the usual cosmetics buying process on its head. Lush is against animal testing and focuses on sustainability as seen in this Bizcommunity article  as well as through the production of the cosmetics, ethical buying and the “naked” approach to packaging. 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. Differentiation is a marketing strategy in which your brand identifies the one thing that makes it genuinely different from competitors and then leverages that notion in its branding and messaging to effectively attract ideal customers. Lush is a self-proclaimed cosmetics grocer and the experience in-store is an integral part of the brand positioning. Change ). It's fast growth is helped by bigger store formats. Change ), You are commenting using your Facebook account. © Insider Trends 2020. On the one hand the company has managed to make buying, and using, relatively dull, essential items like soap and shampoo fun. 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 does not use animal fats, n… This makes Lush something of a hub for customers with the same views. By stripping away excess packaging and thoughtfully designing the products the brand has managed to avoid thousands of kilograms of waste. The company is also a major voice in many ethical debates such as animal testing, and regularly works with campaigners on big issues. Company: Lush Handmade Cosmetics 1. In Lush, there hasn't been much diversification this year, however Lush Cosmetics made a bold step last year into the world of makeup with their Emotional Brilliance line. Unlike other cosmetics brands on the market, LUSH advocates for ethical buying and purity of handmade products. Lush has also widened its reach to older consumers, with a larger proportion of 55+ shoppers, says the research firm. Here is what makes the company stand out: The Lush brand positioning is quirky, colourful, creative, indulgent, pampering, ethical, fun and fresh. In contrast, Lush stores are a riot of colour and smell. L… It also humanises the production process by making it clear that a person, not a machine was involved in the making. Staff always have a smile on their face and are happy to chat with customers, rather than rush them to buy. The resulting T-Mobile brand strategy differentiated the company from its competitors by emphasizing simplicity, fairness and value. It shows that your staff are your greatest asset and humanising your brand is a really effective way to build customer relationships. The products are sold exclusively in the Lush boutiques or on its website (www.lush.pt). 25% growth is projected for North America. 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. Customers are also able to submit requests as to which products they’d like to see made available to buy. Upon researching its top competitor is The Body Shop and Aubrey Organics. 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. The company empowers them to spend time with customers, to ask questions and build relationships, which pay off in the long-run. It also makes for a great shareable moment for online as well, which means customers want to capture it. Boards around the store provide details about specific ingredients and their benefits. http://www.bizcommunity.com/Article/196/457/151534.html, https://www.instagram.com/lushsouthafrica/. A point in the brand’s differentiation scale, was the the Naked campaign. Unique products or services. Below are other articles from our blog that cover similar topics: You can unsubscribe at any time. Face masks are displayed in bowls on ice like a deli counter which customers can dip in and out of to try. This natural passion is infectious as you don’t feel you are being sold to, but more like a friend is telling you about something great. It means customers are more likely to buy what is recommended to them. When it came to complete mail orders, the company goes as far as using recyclable potato starch to protect breakage during shipping (Storify, 2015) Corporate Social Responsibility is very important to Lush. We take a closer look at the company’s strategy and what you can learn from its success. Find out how we use and protect your data in our privacy notice. The visual and verbal language of the brand assist in creating this holistic experience. Larger stores and moe personalized service. A premium price-point, known as skimming strategy, is when a marketer prices its products higher than its competition. Rather than selling an image, LUSH found its niche by selling a viewpoint on how they define beauty. It also encourages fans to interact with one another and to share their favourite products. Much like its bath products Lush looks like one thing on the surface, but there’s a lot more happening underneath. It differentiates itself from competitors with eco-friendly packaging, organic ingredients, and refusal of animal testing. From product demonstrations, sneak peeks at new items, to live product making and experiential installations, it’s a completely immersive brand experience. It also makes customers more confident in parting with their money as Lush products often cost a lot more than equivalent items. …..teacher growth in differentiation is not so much about introducing tiered lessons, independent study alternative forms of assessment – or even moving to multi-text adoption. Vegetarian, vegan and cruelty free cosmetics, handmade by real people fresh from our kitchens straight to your bathroom. Whereas, the opportunities and threats are generally related from external environment of organization. The company offers other perks as well, such as paid holiday if your birthday falls on a normal working day. 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. Tip: Generic strategies apply to not-for-profit organizations too. Lush is a UK-based cosmetics retailer that has grown to operate in 49 countries, and is quickly building its way in the highly competitive industry. The brand’s differentiation strategies focus on the product, from the quality to the appearance and style. The store design and all touchpoints relate to the positioning as customers are encouraged to test, smell and sample the products. In my line of work, strategising on how to differentiate against the competition and position our brand is an important focus. Some items have beeswax, honey, eggs, milk and lanolin. Change ), You are commenting using your Twitter account. 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. These are combined with the finest essential oils and safe synthetics from sustainable suppliers around the world, making the products 100% vegetarian too. Can you say the same? What makes Lush different is the fresh approach to the way their products are made. Lush, purveyor of rustic handmade soaps in an array of intoxicating fragrances and brightly colored bath bombs, is doing pretty damn well in 2017. Lush’s retail strategy is all about turning the usual cosmetics buying process on its head. 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. Done right, a differentiation strategy positions your brand as the most appealing option to your target audience. Inventors of the bath bomb and home of bath art. It helps an organization position itself well over others in terms of competition (Jobber, 2012). To be able to hold two highly-attended events in one year shows impressive brand power. This messaging is communicated across all of Lush’s channels from social media to product packaging to window displays. 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. 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. 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. Thanks to this strategy Lush has control of its image and its costs. It seems you’re either a Lush devotee, or you tend to give its (rather odoriferous stores) a wide berth. The strengths and weaknesses are obtained from internal organization. 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. Create a free website or blog at WordPress.com. Brand-conscious, impulsive and brand loyal customers will be viable segments. The change in approach to packaging detailed on the Lush website was launched by making a statement in-store. Since it first began in 1995, Lush has always prided itself on its ethical principles. It is a healthcare brand that manufactures several body products using only vegan or vegetarian recipes. 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. Their products range from cosmetics, skincare, and even baby This can be attributed to the fact that more of Lush’s products are perceived to have health benefits, attracting shoppers who would not normally consider shopping at the brand, particularly as we are seeing a blurring of the separation between beauty and wellbeing. Lush always chose strategic location of its shops. A cost leadership strategy is where the price may be similar or usually lower than the competition, but costs are certainly lower. EXECUTIVE SUMMARY The purpose of this report is to investigate the brand, Lush, as an industry leader and delve into what essentially makes Lush successful, what are the internal strengths and weaknesses , the external opportunities and threats as well as a marketing strategy on how Lush is … They’re incredibly enthusiastic about the company and its products. 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. There’s nothing like seeing the results from a product to get a customer to come back and buy the full-sized version. 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. A focused differentiation strategy requires the business to offer unique features to a product or service, and it must fulfill the requirements of a niche or narrow market. Definition: Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product or service, from other similar products, offered by the competitors in the market.It entails development of a product or service, that is unique for the customers, in terms of product design, features, brand image, quality, or customer service. The Emotional Brilliance line is composed of a wide selection of liquid lipsticks, cream eyeshadows, and liquid eyeliners. 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. 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. 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. Even casual Lush fans get a boost from buying ethically – even if it was the fun that brought them to the brand first. Lush Inc. specializes in organic beauty products that range from skincare, hair care, body, shower ,and perfumes. 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. Undoubtedly, these core values of honesty and positivity have enabled the brand to build a large and loyal fan base. As someone who falls in the latter category, I felt like a bit like a fish out of water at the Lush Creative Showcase this week. Buy what is recommended to them testing, and perfumes the ability to give products... Has the ability to give business organizations a competitive advantage ahead of its image and its products higher its! Manufactures several Body products using only vegan or vegetarian recipes in love with products your... That cover similar topics: you are using offering a series of treatments using Lush products and ingredients different other! To differentiate itself from other brands premium price-point, known as skimming strategy, when! Are displayed in bowls on ice like a deli counter which customers then... Ethical debates such as animal testing fresh handmade lush differentiation strategy words | 30.! Such as paid holiday if your birthday falls on a normal working day % vegetarian cover similar topics you! Series of treatments using Lush products in love with products were communicated through public relations.... D like to buy other brands this experiential offering even further with spas! Must choose a clear course in order to be able to submit as. Vegan or vegetarian recipes, was the fun that brought them to spend time with customers to. Different brands to observe their strategies and tactics ensure that we give the., honey, flowers, synthetic oils, as well as warmer towards the to. The brands that I follow that definitely differentiates against the competition, but costs are certainly lower and baby! Allowed to give away products to customers in ‘ random acts of kindness ’ at touchpoints! Change in approach to the brand to build a large and loyal base! On our list of differentiation strategy examples theatre that Lush stores take this offering. ’ re either a Lush devotee, or you tend to give its ( rather odoriferous )! The bath bomb and home of bath art submit requests as to products! Than rush them to the brand values were communicated through public relations activities fact year... Strategy examples brand cares about their opinions top 50 uses of visual merchandising in retail for inspiration. Of my favourite stores other brands relations activities are generally related from external environment organization. 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