In my line of work, strategising on how to differentiate against the competition and position our brand is an important focus. 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. Lush’s staff are one of the brand’s greatest assets. 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. Lush Company has been able to position itself ahead of its rivals due to its differentiation strategy. Boards around the store provide details about specific ingredients and their benefits. Face masks are displayed in bowls on ice like a deli counter which customers can dip in and out of to try. It's fast growth is helped by bigger store formats. Whereas, the opportunities and threats are generally related from external environment of organization. ( Log Out /  Goran's layout adjusts itself depending on the device you are using. Even casual Lush fans get a boost from buying ethically – even if it was the fun that brought them to the brand first. Brand-conscious, impulsive and brand loyal customers will be viable segments. Some Lush stores take this experiential offering even further with in-store spas offering a series of treatments using Lush products. The products are sold exclusively in the Lush boutiques or on its website (www.lush.pt). A point in the brand’s differentiation scale, was the the Naked campaign. 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. 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. By Sarah Vizard 1 Apr 2014 All the cosmetics available in their stores and online are handmade from only fresh fruit and vegetables, and where possible, are organic. 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). The brand’s differentiation strategies focus on the product, from the quality to the appearance and style. Find out how we use and protect your data in our privacy notice. 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. Tip: Generic strategies apply to not-for-profit organizations too. The case also discusses the views of some analysts who felt that the absence of a regular marketing … The four strategies to choose from are: Cost Leadership Differentiation Cost Focus It even taxes itself on its carbon footprint. Now, what does this look like in action? It helps an organization position itself well over others in terms of competition (Jobber, 2012). It’s not afraid to have an opinion. 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. The company empowers them to spend time with customers, to ask questions and build relationships, which pay off in the long-run. 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. It is a healthcare brand that manufactures several body products using only vegan or vegetarian recipes. In contrast, Lush stores are a riot of colour and smell. This messaging is communicated across all of Lush’s channels from social media to product packaging to window displays. Upon researching its top competitor is The Body Shop and Aubrey Organics. Lush has also widened its reach to older consumers, with a larger proportion of 55+ shoppers, says the research firm. 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. This shows a holistic way in which the brand values were communicated through public relations activities. Create a free website or blog at WordPress.com. …..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. He believes that a company must choose a clear course in order to be able to beat the competition. All Rights Reserved. Customers can then buy many of the products used to take home and recreate their experience themselves. The Body Shop is a natural beauty supply shop with products that reach all demographics. 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. 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. 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. A premium price-point, known as skimming strategy, is when a marketer prices its products higher than its competition. The resulting T-Mobile brand strategy differentiated the company from its competitors by emphasizing simplicity, fairness and value. 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. The brand shows that you can have a stance and use your brand as a platform, and still be successful. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. The random acts help make customers feel more valued, as well as warmer towards the brand, which can keep them coming back. Lush has been defined by its customers in three simple words verdant, green and fresh. These values are palpable in-store and at other touchpoints, making Lush different to most competing brands. 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. But the experience is better than most retail brands with comparable rates. 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. 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. Lush’s retail strategy is all about turning the usual cosmetics buying process on its head. 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. http://www.bizcommunity.com/Article/196/457/151534.html, https://www.instagram.com/lushsouthafrica/. Typically shopping for bath products or face cleansers is just a case of trawling aisles and comparing packaging. Change ), You are commenting using your Facebook account. Rather than selling an image, LUSH found its niche by selling a viewpoint on how they define beauty. It does not use animal fats, n… 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. 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. 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. Lush is a global beauty retailer. 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. In fact this year it also held a two-day Lush Summit where customers could see new and exclusive products first. 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. 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. Lush always chose strategic location of its shops. 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. Customers like to buy into the brand’s expertise and quality products. We take a closer look at the company’s strategy and what you can learn from its success. But the innovation and highlights of the products in Lush company are: differentiation, communication, fresh ingredients, environmentally-friendly packing. So for this reason, I follow different brands to observe their strategies and tactics. 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. LUSH. 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. 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… The policy even extends to Lush’s ecommerce site with customers able to request samples to be included with their orders. A cost leadership strategy is where the price may be similar or usually lower than the competition, but costs are certainly lower. Lush Inc. specializes in organic beauty products that range from skincare, hair care, body, shower ,and perfumes. The stores also help to communicate the freshness of Lush products and ingredients. Can you say the same? 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. 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. Typically shopping for bath products or face cleansers is just a case of trawling aisles and comparing packaging. Don’t miss the top 50 uses of visual merchandising in retail for top inspiration. 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. ( Log Out /  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. The company produces all its beauty products using vegetation and fruits. Change ). It also humanises the production process by making it clear that a person, not a machine was involved in the making. Lush Cosmetics is one of the brands that I follow that definitely differentiates against the competition and is one of my favourite stores. It also makes customers more confident in parting with their money as Lush products often cost a lot more than equivalent items. Lush is a self-proclaimed cosmetics grocer and the experience in-store is an integral part of the brand positioning. Since it first began in 1995, Lush has always prided itself on its ethical principles. Here is what makes the company stand out: This positioning works very well for Lush as indulging in their products is a pampering, guilt-free and fun experience for customers. Done right, a differentiation strategy positions your brand as the most appealing option to your target audience. Firstly, Lush provides freshest cosmetics from harvested fruit and veggies which are 100% vegetarian. Differentiation is more than a strategy or series of strategies – it's a way of thinking about teaching and learning. Find out how they can benefit your business here. Undoubtedly, these core values of honesty and positivity have enabled the brand to build a large and loyal fan base. Vegetarian, vegan and cruelty free cosmetics, handmade by real people fresh from our kitchens straight to your bathroom. Much like its bath products Lush looks like one thing on the surface, but there’s a lot more happening underneath. For Lush devotees, until very recently the company ran its Kitchen programme, where customers could buy short-run exclusive or discontinued products. Inventors of the bath bomb and home of bath art. 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. Unique products or services. 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. 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. UK-born natural cosmetics brand Lush Cosmetics inhabits two worlds – the fun and the serious. 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. It also makes for a great shareable moment for online as well, which means customers want to capture it. Lush, purveyor of rustic handmade soaps in an array of intoxicating fragrances and brightly colored bath bombs, is doing pretty damn well in 2017. 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