It also makes for a great shareable moment for online as well, which means customers want to capture it. Customers are also able to submit requests as to which products they’d like to see made available to buy. 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. 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. We use cookies to ensure that we give you the best experience on our website. But the experience is better than most retail brands with comparable rates. 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. 25% growth is projected for North America. Typically shopping for bath products or face cleansers is just a case of trawling aisles and comparing packaging. Differentiation is more than a strategy or series of strategies – it's a way of thinking about teaching and learning. These are combined with the finest essential oils and safe synthetics from sustainable suppliers around the world, making the products 100% vegetarian too. He believes that a company must choose a clear course in order to be able to beat the competition. 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. There’s the promise of surprise and magic with Lush products that your average bottle of bubble bath doesn’t have. It means customers are more likely to buy what is recommended to them. …..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. Marketing and Lush Fresh Handmade 7455 Words | 30 Pages. Tip: Generic strategies apply to not-for-profit organizations too. Lush’s staff are one of the brand’s greatest assets. All the cosmetics available in their stores and online are handmade from only fresh fruit and vegetables, and where possible, are organic. Community is a huge element of Lush’s strategy, driven in equal parts by its brand fans, or ‘Lushies’ and its ethical stance. 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. 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 is also a major voice in many ethical debates such as animal testing, and regularly works with campaigners on big issues. Inventors of the bath bomb and home of bath art. 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. 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. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. ( Log Out /  Lush, purveyor of rustic handmade soaps in an array of intoxicating fragrances and brightly colored bath bombs, is doing pretty damn well in 2017. 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. There’s nothing like seeing the results from a product to get a customer to come back and buy the full-sized version. Customers can then buy many of the products used to take home and recreate their experience themselves. Company: Lush Handmade Cosmetics 1. Change ). Change ), You are commenting using your Google account. Since it first began in 1995, Lush has always prided itself on its ethical principles. In contrast, Lush stores are a riot of colour and smell. The company offers other perks as well, such as paid holiday if your birthday falls on a normal working day. On the one hand the company has managed to make buying, and using, relatively dull, essential items like soap and shampoo fun. Again this helps customers feel like they are buying into the company’s expertise, as well as good quality, healthy produce. A point in the brand’s differentiation scale, was the the Naked campaign. Find out how we use and protect your data in our privacy notice. 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). 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. This has real influence on what goes into production, so customers feel as though the brand cares about their opinions. 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. The Generic Strategies can be used to determine the direction (strategy) of your organisation. 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 change in approach to packaging detailed on the Lush website was launched by making a statement in-store. 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. Staff add to this by regularly ‘detonating’ bath bombs and other products in basins throughout Lush stores. The visual and verbal language of the brand assist in creating this holistic experience. Here is what makes the company stand out: In contrast, Lush stores are a riot of colour and smell. Change ), You are commenting using your Facebook account. 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. Typically shopping for bath products or face cleansers is just a case of trawling aisles and comparing packaging. 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. 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. For this reason, I couldn’t help but put it on our list of differentiation strategy examples. 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. The brand’s differentiation strategies focus on the product, from the quality to the appearance and style. L… Thanks to this strategy Lush has control of its image and its costs. Lush is a global beauty retailer. As a consequence, the company is addressing various ethical challenges in order to differentiate itself from other brands. The resulting T-Mobile brand strategy differentiated the company from its competitors by emphasizing simplicity, fairness and value. (Renbarger,2014) Lush’s products are designed to create differentiation on the marketplace, therefore everything is handmade in the Lush Kitchen. Goran's layout adjusts itself depending on the device you are using. It even taxes itself on its carbon footprint. To be able to hold two highly-attended events in one year shows impressive brand power. For Lush devotees, until very recently the company ran its Kitchen programme, where customers could buy short-run exclusive or discontinued products. 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. The random acts help make customers feel more valued, as well as warmer towards the brand, which can keep them coming back. Find out how they can benefit your business here. Through product interaction customers are buying into the theatre that Lush stores promise and falling in love with products. All Rights Reserved. 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. Their products range from cosmetics, skincare, and even baby Boards around the store provide details about specific ingredients and their benefits. They’re incredibly enthusiastic about the company and its products. Differentiation is a strategy that has the ability to give business organizations a competitive advantage ahead of their rivals. 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 UK-based cosmetics retailer that has grown to operate in 49 countries, and is quickly building its way in the highly competitive industry. The four strategies to choose from are: Cost Leadership Differentiation Cost Focus From product demonstrations, sneak peeks at new items, to live product making and experiential installations, it’s a completely immersive brand experience. 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. 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 strengths and weaknesses are obtained from internal organization. The Lush brand positioning is quirky, colourful, creative, indulgent, pampering, ethical, fun and fresh. The company empowers them to spend time with customers, to ask questions and build relationships, which pay off in the long-run. 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. It also makes customers more confident in parting with their money as Lush products often cost a lot more than equivalent items. Staff always have a smile on their face and are happy to chat with customers, rather than rush them to buy. 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 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. Undoubtedly, these core values of honesty and positivity have enabled the brand to build a large and loyal fan base. In my line of work, strategising on how to differentiate against the competition and position our brand is an important focus. When a person is faced with a shelf of products or similar services, … By stripping away excess packaging and thoughtfully designing the products the brand has managed to avoid thousands of kilograms of waste. 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