Marketing and sales - Small Business

Running Head: Lush 0
Marketing

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Contents
Introduction: Lush....................................................................................................... 2
Expansion of Lush in chosen countries.............................................................................. 2
Cultural differentiation and standardisation in international markets.........................................4
Supply and production: In-house production.......................................................................4
Distribution of its products............................................................................................ 5
Promotional strategy.................................................................................................... 6
Conclusion................................................................................................................ 8
References................................................................................................................ 9

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Introduction: Lush
Mark Constantine found Lush in 1995 as skin care and organic cosmetic company. Lush has
its headquarter in Poole, UK, the main belief of Lush was to manufacture the fresh and
organic handmade products from essential oils and natural material. It has more than around
650 stores across forty countries. The major construction of lush products has been done in
Italy, UK, Canada, Japan and South America. After completing the production process, it
distributes those products in its own retailing stores. Lush produces several products such as
soaps, creams, lotions, shower gels, scrubs, moisturisers as well as several other cosmetics for
the hair, face as well as body by using only vegan or vegetarian recipes. The ingredients sued
by lush are 100 per cent vegetarian. They usually contain vegetables and fruits such as vanilla
beans, grapefruit juice, fresh papaya, avocado butter, and coconut. In the paper, discussion
has started with the country where Lush can carry on its expansion. For expansion, Malaysia
and India has been chosen. However, for the new international market, Argentina has been
chosen where it can start its operation. Afterwards, cultural differences as well as
standardisation have been suggested to Lush for its market expansion. For supply and raw
material, in-house production has been suggested to Lush due to quality control and better
production. There are several distribution channels. The one chosen distribution channel
suggested for Lush has been highlighted. Discussion ends by including promotional activities
that can be undertaken by Lush. For those promotional activities, budget has been prepared.
Expansion of Lush in chosen countries
Lush operates its business in several countries such as China, japan, India, Australia, United
Kingdom, Malaysia and many more. Among those countries, Lush can expand its market in
Malaysia and Australia. Malaysia can prove to be beneficial for its cosmetic market because
it is seen that the organic market growth in Malaysia is continuously increasing. The reason
behind Malaysian expansion is the growing consumer awareness regarding benefits of using
organic products for their persona care. In addition to this, emerging economies such as India
also has increasing demand for organic products. Consumers are increasingly knowing the
significance of using chemical free products on their body. At the nascent phase, the organic
industry is growing in India. However, the areas where Lush will open its stores depend on
the several factors such as consumer awareness or income factor. However, the growth of

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organic product has been increased in India by 35% in 2019 which was 32% in 2017.
Regulations in India are also making it more sustainable (Kim, Li and Brymer, 2016).
The emerging economies has been especially India has been suggested to Lush for expansion
because the future growth of organic personal care products has been anticipated in the
emerging economies. The upgrading standard of living and disposable income is also driving
the growth of organic products. Therefore, Lush can expand its market in Malaysia and India
by giving emphasis on the facility expansion and enhancement in the product portfolio for
meeting the growing demand for organic products. The expansion of its brand can also be
done digitally in India. Due to the growing demand of online services regarding cosmetic
products, firms are moving toward digital channels. However, it might face difficulty in
attracting consumers due to availability of several strong competitors. It will not be easy for
Lush to convenience customers easily for availing its services.
Argentina can be the new international country where Lush can start its business. The first
reason is that Argentina has the useful source of flora and Fauna which can prove to be useful
in natural beauty products. In terms of social factors, it can be stated that natural cosmetic
products in Argentina can witness the huge growth as customers are increasingly looking for
the healthier lifestyle. These social factors are giving the increase in demand for natural
ingredients and additives that area used in the cosmetics. Through the swot analysis, it can be
stated that Lush can expand its business in Argentina:
Strengths: Lush has strong brand damage in several countries that will help it in gaining the
customer trust in Argentina. It has string global presence of its brand in around 40 countries.
Weaknesses: In several countries where it operates its business have lack of consumer
awareness regarding its products. At the same time, it has not expanded its business in several
countries where it can achieve huge success and growth (Phadermrod, Crowde & Wills,
2019).
Opportunities: due to the growing demand of organic products in several countries, Lush has
the opportunity to gain the growth and profit through choosing effective entry mode. It also
has the opportunity to tap the market by opening its store at transport locations such as airport
and railway station.