Market Research Process for Lush Handmade Cosmetics

This report and portfolio is concerned with marketing research of Lush handmade cosmetics. The company was founded in 1995 and is headquartered at Poole, Dorset, UK and operate under cosmetic industry and provide skincare products.

E-Portfolio

Table of Contents
INTRODUCTION...........................................................................................................................3
Market Research Process.................................................................................................................3
Questionnaire Design.......................................................................................................................5
Marketing Mix.................................................................................................................................7
Product.........................................................................................................................................7
Promotion....................................................................................................................................7
Place.............................................................................................................................................7
Price.............................................................................................................................................8
Recommendations............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Market research is a process to identify and understanding viability of a product in the
market through research that is directly conducted with potential customers of the product. This
help company in understanding target market and their requirements and also get opinion and
feedback from the potential customers. This report and portfolio is concerned with marketing
research of Lush handmade cosmetics. The company was founded in 1995 and is headquartered
at Poole, Dorset, UK and operate under cosmetic industry and provide skincare products. The
products of Lush handmade cosmetics are vegetarian and handmade. The research in being
conducted as company is willing to expand market share through opening and introducing new
shop in Southampton.
Market Research Process
Market research process is a process in which company complete their market research
through certain steps (Mooi, Sarstedt and Mooi-Reci, 2018). This process involves designing a
tool and with help of the tool company collects information and collected information become
basis for decision making of the company.
Market research process diagram
Figure 1 Market Research Process

The above diagram involves six steps of marketing. These steps and their application in Lush
handmade cosmetics is as follows-
Define the Problem
This is first step of the process in which problem is defined. This means why the research
is being carried out (Wetzel, 2020). In context of Lush handmade cosmetics the research is
aimed at identifying and understanding the opinion and feedback of people about product of the
company.
Develop the Research Plan
This means developing the plan and designing tool with help of which company will
undertake research. This includes complete design of the research in which samples are also
determined for collection of data.
Collect the Information
This is the step in the process in which with help of designed tools company collects data
from the samples selected (Tulung and Ramdani, 2018). Lush handmade cosmetics will collect
data from potential customers.
Analyse the Information
This involves analysing information by Lush handmade cosmetics, this means
understanding the responses and what is the reason because of which particular responses has
been given by the respondents.
Presenting the Finding
This means conclusion of the data, summarising and presenting data so that other people
can also understand the responses. This involves presenting most important information
regarding data collected and result of the data.
Make the Decision

This is final step of the process in which decision are made regarding product and its
offering to the customers (Mooi, Sarstedt and Mooi-Reci, 2018).
Questionnaire Design
Questionnaire can be defined as a instrument which is aimed at collecting information
from respondents and in this series of a question is included (Geuens and De Pelsmacker, 2017).
This is effective tool for collection of information and especially when audience and target
market is large in size. Questionnaire includes questions that can be of two types that are open
and closed questions. Open-ended Questions are questions in which answer of the question is not
static and respondent is required to answer the question in more than one line and word. Closed-
ended question is the one in which respondents are provided with specific options among which
respondents select they consider appropriate (Bee and Murdoch-Eaton, 2016). In order identify
and understand opinion and feedback of customers of Lush handmade cosmetics the
questionnaire is as follows-
Q1. Do you know about Lush handmade cosmetics?
 Yes
 No
 Heard somewhere but do not have proper knowledge
The reason for asking this question is to know do people have idea about the company or this is
completely new for them. This will help in creating strategies for promotion of the product.
Q2. Do you like using natural and vegetarian products for skin care?
 Yes
 No
 Depend on the quality and result of the product
This question is aimed at identifying and understanding opinion of people regarding natural and
vegetarian products. This is important because products’ important characteristic is that they are
vegetarian.
Q3. Have you ever used the products of Lush handmade cosmetics?
 Yes
 No
This will help in understanding how many people have ever used the product of Lush handmade

cosmetics.
Q4. Are you satisfied with the results of the product of Lush handmade cosmetics?
 Yes
 No
 Neither satisfied nor dissatisfied
This is specially aimed at those who have used products of Lush handmade cosmetics and what they felt
after using the products of the company.
Q5. Are you interested in using vegetarian and environment friendly cosmetic and skin care products?
 Yes
 No
 I can try
This question is aimed at identifying and understanding how many people are there who are interested in
buying product that are vegetarian and environment friendly and these are potential customers for
company.
Q6. Do you consider price in relation with cosmetic and skin care products?
 Yes
 No (quality matters)
This is to know whether people consider price aspect of the product even when it is high in quality
aspects. Price is a special consideration while buying the product.
Q7. What do you look for in your cosmetic and skin care product?
 Price
 Quality and result
This is concerned with orientation of customers when they are buying cosmetics and skin care products.
Q8. What do you do to know the quality of the product?
 Go through User reviews
 Use it
This is to understand what people do to know about the quality and worth of the product. This help in
creating promotion strategies.
Q9. Any comments and special feedback
Questions above are closed ended so this question will allow them to freely express their views and
opinions.

Marketing Mix
Product
Products of Lush handmade cosmetics are vegetarian and environment friendly handmade
cosmetic and skin care products. Several types of products are offered by Lush handmade
cosmetics. For marketing of the products Lush handmade cosmetics it is important to consider
that products of Lush handmade cosmetics is one of the most important factor and aspect to
attract customers to but the products (Išoraitė, 2016). This is why marketing of the product is
very important for Lush handmade cosmetics. Products that are successful are made considering
needs and requirements of the customers. This is why it is important that product is marketed and
it is linked with customers’ needs. Products offered by Lush handmade cosmetics are mainly
cosmetic and skin care products and later these are further categorised in hair care, skin care and
other cosmetic products.
Figure 2 Product in Marketing Mix of Lush handmade cosmetics
Promotion
Promotion is set of activities through which product is communicated to the potential customers
and they are motivated to buy the product. This is an important aspect of marketing of company.
Promotion in marketing mix suggests what strategies compay adopt for encouraging and
stimulating buyers to buy the product.
Promotion strategy involves different activities to communicate value of the product to potential
buyers. For this companies adopt different strategies such as advertising on different mediums,
online marketing and promotion etc. However in relation with Lush handmade cosmetics they
follow a no advertisement policy (Wu and Li, 2018). However in order to promote their product,
they relies on user generated content and products of the company are also advertised and

promoted by staff of the company in their random act of kindness. In these acts they are allowed
to give away the products to the customers to cheer up and celebrate special occasions.
Place
Place in marketing mix refers to those places where product of a company is available. Place in
marketing mix required special consideration because place is the one thing that enables
potential customers to access the product of the company and subsequently by the product. An
effective strategy for place in in marketing mix enables company to create place and channels
through which attract customers and facilitate buying for the customer.
Figure 3 Place in Marketing Mix of Lush Handmade Cosmetics
In relation with Lush handmade cosmetics place is expanded to around fifty countries and in
which company has around 800 outlets (Abril and Rodriguez-Cánovas, 2016). Products of Lush
handmade cosmetics are manufactured at several manufacturing facilities across different
countries and in this all the products of the company are made by hands rather than by machinery
to ensure items are fresh. Along with this products of the Lush handmade cosmetics are also
available at online platform, in which its website is its main online outlet for sale.
Price
Price is the monetary value that customers pay in exchange of the product they buy. Price is one
of the most important factors that are associated with the purchase intention of the customers
related to a product (Abril and Rodriguez-Cánovas, 2016). In relation with price in marketing
mix company needs to ensure and develop effective strategy. This means low price indicate low
quality and high price indicate high quality. Price is special indicator of the quality of the
products and this is why it requires special consideration.

Pricing objectives refers to ensure that customers and target market for the product is capable to
buy the product. And Company gets adequate margin on their sale. To achieve these objectives
of the price of Lush handmade cosmetics has been kept comparatively higher. The reason behind
this is that the products have been designed for the people who are interested in buying natural
and vegan products. Other than this products are free of preservative and handmade which incurs
comparatively higher cost. Quality of the product is also high hence price of the products is also
high.
Pricing methods that has been adopted by Lush handmade cosmetics is value-based pricing in
this products are sold on the price according to the value that is provided the products.
There are several strategies of pricing such as competitive pricing, cost based pricing and
premium pricing. Lush handmade cosmetics have adopted premium pricing policy because of
high quality premium products (De Toni and et.al., 2017).
Pricing tactics that has been adopted by Lush handmade cosmetics is skimming in this product is
sold at higher price when product is unique and different from others (Das, 2020).
In order to reduce price company also do not use packaging and no advertisement policy
is also aimed at reduction in price.
Recommendations
Product
It is recommended that products of the company are environment friendly and this is why
they should promote their product in line with environment protection and they should promote
in such way that it grab attention of such people who are willing to buy environment friendly
products.
Promotion
Price can be effective in promoting the product (Pogorelova and et.al., 2016). Company has
adopted a premium price policy however involving discounting price and sales promotion can be
effective as promotional strategy.

Place
In order to increase customers and sales, company can increase its sales channels and place by
alliances with online portals and different retail organisations highlighting the products.
Price
Price of the company’s product is comparatively higher and they can associate it with high
quality (Abril and Rodriguez-Cánovas, 2016). Communicating no packaging policy in context of
price will also positively affect customers’ perception.
Physical evidence
Brand and brand image can only be used as physical evidence in absence of packaging.
Company can also provide physical evidence additionally if it is required by customers.
People
They are important for the success of the company and employees of Lush handmade cosmetics
are also its promoters and ambassadors (Thabit and Raewf, 2018). In such situation company
needs to and should hire employees who can effective present company in front of customers and
general public.
Process
Lush handmade cosmetics do not have any rigid and specific mechanical process as products are
handmade and this is being communicated to customers but along with this if customers are
made to experience the process this will create a long lasting impression on customers.
CONCLUSION
On the basis of above discussion it can be concluded that marketing is very important
aspect of the product and organisation. Concerned with this marketing research can allow
company to know what customers feel and how they perceive the product. Questionnaire is an
effective way and tool through which this information can be gathered. Followed by this
marketing mix of the company was discussed and how company is applying different elements

of the marketing mix was discussed. Followed by this some of the suggestions were provided
through which company can further enhance their marketing mix.

REFERENCES
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