Marketing Analysis of Lush Cosmetics: Segmentation and Strategies

This presentation provides a comprehensive marketing analysis of Lush Cosmetics, a British company known for its natural and vegetarian cosmetics. The analysis begins with an introduction and company overview, followed by a detailed brand analysis, including its unique selling proposition (USP) and comparison with competitors. The presentation then delves into the Segmentation, Targeting, and Positioning (STP) model, discussing Lush's customer analysis, including their target demographic and psychographic profiles, and utilizes a perceptual map to visualize their market position. The marketing mix is examined, covering product, price, place, and promotion strategies, with insights into Lush's emphasis on differential marketing. The presentation concludes with recommendations for the company, including diversifying marketing methods and expanding into new markets, and references relevant books and journals.

Lush cosmetic Company

Table of Contents
 Introduction and company overview
 Brand Analysis
 Segmentation-targeting and positioning
 Customer Analysis
 Perceptual mapping
 Marketing Mix
 Conclusion and Recommendation
 References

Introduction and Company Overview
 This presentation is aimed at evaluating current marketing strategies of Lush company
and how they have gained insights into the behavior of their targeted customers and
used that information for building and strengthening their brand.
 Lush is a British company operating in cosmetics industry. It manufactures natural and
vegetarian cosmetics range and offers whole range of cosmetics for face, hair and body
including creams, soaps, shampoos, shower gels, lotions, moisturizers, scrubs, masks,
etc. (Lush, 2020)

Brand Analysis
Company Lush Retail Limited
Category/sector Cosmetics retail
Tagline Fresh handmade cosmetics
USP Organic products, minimal preservatives
Segmentation Women cosmetics (Paschen and et.al., 2017)
Target Market Women inclined towards vegan lifestyle
Positioning Happy people making happy soap
Competitors Johnson & Johnson, Proctor and Gamble, The Body Shop, Clinique, Origins
Lush Brand Analysis and STP in summary:

Segmentation, Targeting and Positioning
(STP) Model
 Segmentation – Geographically, demographically and psychologically (Langner and
et.al., 2016)
 Targeting – Lush does not specify particular target market.
 Positioning - Lush is positioned as an ethical brand

Customer Analysis
 Company targets middle to higher income customers who are environmentally aware
and has sustainability as a part of their values set (Steinmann, Mau and Schramm‐
Klein, 2015).
 Most of its customers are women from demographic groups like urban youth dwellers.

Perceptual Map

Marketing mix
 Product - Lush offers cosmetics range for whole body.
 Price - Company has adopted premium pricing and skimming pricing strategy to price
its products.
 Place - It offers its products in both offline and online distribution mode.
 Promotion – It uses traditional methods of promotions such as advertisements in both
online and offline mediums but keeps its focus on differential marketing strategies
(Wang and Horng, 2016).

Continued…
 People - Lush products are not machine manufactured and therefore, has a labor-intensive
manufacturing staff demand.
 Process - Two most important processes within Lush are its manufacturing and marketing
processes (Nagaraj and Singh, 2018).
 Physical evidence - Lush’s product portfolio, its stores, websites, logo, etc. are tangible
evidence of the company while its customer services, marketing tools, values, etc. are
intangible evidences that it offers as physical evidence

Conclusion and recommendations
 From the above presentation, it can be concluded that company follows several
marketing strategies like product innovation, marketing investment, customer
experience, etc.
 Based on the current marketing strategies, it is recommended to company that it should
diversify its methods of marketing and promotions (Aliyev, Urkmez and Wagner,
2019)
 It needs to open more stores in existing and new markets and promotes its products as
gender neutral and highlight its men’s products.

References
Books and Journal
 Aliyev, F., Urkmez, T. and Wagner, R., 2019. A comprehensive look at luxury brand
marketing research from 2000 to 2016: a bibliometric study and content
analysis. Management Review Quarterly, 69(3). pp.233-264.
 De Oliveira Santini, F. and et.al., 2018. The brand experience extended model: a
meta-analysis. Journal of Brand Management, 25(6). pp.519-535.

Thank You