Entrepreneurial Report: Lush and Blush Cosmetic Store Analysis

This report analyzes the entrepreneurial opportunities for Lush and Blush, a UK-based company specializing in organic cosmetic products made from natural ingredients. It explores various sources of entrepreneurial ideas, including the Drucker model, and identifies a market gap for organic cosmetics. The report utilizes the STP model to segment, target, and position the company within the UK market, and it conducts a gap analysis to compare Lush and Blush with its competitors. Data is presented from both primary (questionnaires) and secondary sources (market statistics), and the findings are interpreted to demonstrate the market potential for organic cosmetic products. The report emphasizes the increasing customer preference for natural ingredients and the company's ability to capitalize on this trend, offering insights into market demand and consumer behavior to support strategic decision-making.

Turning
creativity
to cash
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INTRODUCTION
An entrepreneur is considered as an individual who establish a business unit by taking
financial risk in order to earn profit. For becoming a good entrepreneur a person required
numbers of specific skills as that will help them in conducting business effectively such as
communication, understanding, leadership, creativity and many more. Before taking any decision
for establishing an enterprise an individual need to conduct market analysis so that they can
identify proper opportunity (Aliabadi, Ataiee and Movahedi, 2016). Respective assignment is
based on organisation i.e. Lush and Blush Cosmetic store which offer organic cosmetic products
made up of leaf, flowers and other organic material. Respective company is conducting this
business operations at United Kingdom. Topics covered in this report are different sources of
entrepreneurial idea and innovation as well as it will also include rationale as well as market gap
for a particular entrepreneurial idea. Along with this it will also include evaluation of market
potential through primary and secondary data as well as report will also explain about
determination evaluation of market as well as competitions related to entrepreneurial idea.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.
There are different types of sources that is help in starting and running new or innovative
business concept. It is crucial for Lush and Blush to analyse or evaluate these resources in order
to conduct all task and activities in better manner (Davidsson, 2015). In order to determine
analyse and determine different sources can be determined through Peter F Drucker model. This
is very effective model in order to analyse valuable resources for innovation and
entrepreneurship. Various sources for enhancing innovation opportunity for this respective
company is mention below.
The unexpected – This includes all those innovation that has taken place by chance and
this is also known as unexpected implementation of innovation. Unexpected situation will lead to
development of new and innovative products and services. Unexpected failure and unexpected
success will lead to creation on innovative products that will helps in meeting with desired goals.
Incongruities – This consist of those innovation of product or service that is developed
when needs are incongruity as per the supply. It includes creation of new product and services
with the motive of resolving current incongruities. In order to meet with the needs of targeted
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customers and analysing the difference between what consumer want and what it is suppose to
be. This will help in inspiration of innovation of products.
Process need – In this Drucker has more focus on organisational situations as well as
task of business. Process needs includes development of new products while meeting with the
organisation needs and requirements. Identification of business process clearly as well as
determine the weak spot of business process. Improvement in process of business can be
consider as opportunity for development of innovative products.
Market and industry structure changes – It has been analysed that existing or current
market structure can help in rising the innovation. Industry and market structure will lead to have
great impact on performance of business as well as development of new and creative products. It
is opportunity to create and enhance innovation with the changes in the structure of market and
industry.
Demographic -This includes various factors such as attitude, lifestyle, behaviour and
many other demographic components (Wood and McKelvie, 2015). Changes in demographic is a
opportunity for innovations as it is crucial for organisation to create products and services that
will lead to meet with the needs of customers. Rise in innovation for full fulling the demographic
needs as well as meeting with the lifestyle is essential factor.
Changes in perception – Changes is perception will lead to have influence on
innovation. It has been analysed that change is a continuous process and it is required for
company to design products and services that fill best as per customer perception. Innovation in
commodity and services by considering perception changes is an opportunity.
New knowledge - New and better knowledge can be consider as the source of
innovation as this will lead to create better products and services. Implementation of updated and
advance technology is an opportunities for innovations. It has been analysed that new knowledge
will lead to create better and effective ideas which is an opportunities for innovation.
Thus, changes in perception source is considered as opportunities for innovation for Lush
and Blush company. Nowadays customers prefer cosmetic products which does not includes
chemical ingredients. This organisation is creating products that is natural and organic. This will
lead to develop innovative products which is as per perception of customers.
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TASK 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice.
It is crucial for this company to identify the targets market as well as potential customers
in order to enhance sales and revenues. Lush and Blush company is developing organic cosmetic
products in order to provide high quality products to customers (George, Parid aand Wincent,
2016). Organic cosmetic products are in more demand as most of the customer prefer organic
product for their skin and body. In order to determined potential customer STP model will be
helpful for respective company.
STP analysis Segmentation – Lush and Blush company is segmenting its customer on the basis of
geographical region and demographic behaviours. Segmentation will help in classifying
customers as per needs. Targeting – This includes the process of targeting customer that will help in increasing
revenues of organisation. Lush and Blush company is targeting UK customers who are
above age 20.
 Positioning – It is positioning its products by developing positive image of organic
product in customer mind. Lush and Blush products will lead to have major benefits for
skin and body.
Market gap analysis
This includes five major forces that will helps in understanding the impact of various
forces of industry and other companies (Karimiand et. al., 2016). This will lead to identifying
the market gap as well as development of better strategies. Threat of new entrant – Lush and Blush is new company that is providing its product to
UK market area. So increase in new entrant organisation is same market will lead to have
high impact on its performance. Bargaining power of buyer- Respective organisation is developing high quality products
that will lead to meet with customer needs. Bargaining power of buyers will lead to have
moderate affect on this company.
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 Bargaining power of suppliers – Lush and Blush organisation is collecting resources
from different suppliers. There are large number of supplies in market so this force will
lead to have lower impact on business and its performance. Threat of substitution – This company is developing new and innovative products. So
there is lesser products in market that can be substitute of Lush and Blush company. This
force will not have major impact on company.
 Threat from existing rival companies – There are various strong company that is dealing
in skin care and cosmetic products. Large number of rival companies will lead to have
negative affect on Lush and Blush organisation.
TASK 3
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea.
Gap analysis is considered as method which is use to determine gap among the standard
outcome and actual result. Through this an organisation able to determined what they want to do
and what they done that will directly help them in developing decision as well as action plan
according to situation (Karlesky, 2015). In respect of Lush and Blush Cosmetic Store they are
offering wide range of organic products which are made up of leaf, flowers, natural essence and
so on. In order to determine gap they conduct their comparison with rivalry company, which is
mentioned below:-
Comparison with competitor
Lush and Blush Cosmetic Store Rival Cosmetic Company
 Respective company offer wide range
of totally organic products which are
made up of leaf, flower, natural essence
and so on.
 Other competitive company offer
organic cosmetic products but it contain
some chemical.
 Respective company offer their organic
products at the affordable price.
 Rival cosmetic firm charge huge price
for organic cosmetic products.
Moreover, in order to gather gap analysis Lush and Blush Cosmetic Store also gather
informations through primary and secondary source, which are mentioned below:-
Primary Source
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It is also know as original source of gather information or data. At this source,
informations, data or statistics are gather at first handed as well as these are more authenticate as
well as reliable data (Korte, 2018). In respect of Lush and Blush Cosmetic Store they are
gathering informations by develop questionnaire which is mentioned below:-
Questionnaire
Questionnaire
Q1. Do you think customers are aware about organic cosmetics made up of leaf and
flowers?
a) Yes
b) No
Q2. How much you can pay for organic cosmetic products?
a) Under £ 10
b) Under £ 30
c) Under £ 60
Q3. What factor you consider while purchasing your skin care products?
a) Recommendation from sales person
b) Natural cosmetic/ Product ingredients
c) Brand
Q4. From where you buy your natural beauty or skin care products?
a) Online Store
b) Pharmacies
c) Local Store
d) Specialist organic supermarket
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Secondary Source
In this information or data are gathered through already existed books, articles, online
blogs, documents and so on (Koryak and et. al., 2015). In respect of Lush and Blush Cosmetic
Store in order to evaluate gap analysis related to age who spend more on cosmetic at United
Kingdom they use secondary source with graph, which is mentioned below:-
P4 Interpret data appropriately to provide evidence of market potential.
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Illustration 1: Share of spending on toiletries and cosmetics in the United Kingdom
(Source: Share of spending on toiletries and cosmetics in the United Kingdom (UK) in the
year ended August 16, 2015, by age group, 2020)

Q1. Do you think customers are aware
about organic cosmetics made up of leaf and
flowers?
Frequency
a) Yes 20
b) No 10
Mean 15
Median 15
Mode NA
Interpretation- As per the above data collection it has been determined that 20
respondents out of 30 are well aware the prices of developing organic cosmetics. Where as other
10 respondents has reacted negatively that they do not known that organic product are made by
flowers and leaf.
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a) Yes b) No
0
2
4
6
8
10
12
14
16
18
20
20
10
Column B

Q2. How much you can pay for organic
cosmetic products?
Frequency
a) Under £ 10 5
b) Under £ 30 15
c) Under £ 60 10
Mean 10
Median 10
Mode NA
Interpretation - According to the collected data most of the customers can pay £ 30 for
organic cosmetic products. Where as other 5 and 10 respondent are willing to pay Under £ 10
and £ 10 respectively.
10
5
15
10
a) Under £ 10
b) Under £ 30
c) Under £ 60

Q3. What factor you consider while
purchasing your skin care products?
Frequency
a) Recommendation from sales person 4
b) Natural cosmetic/ Product ingredients 20
c) Brand 6
Mean 10
Median 6
Mode NA
Interpretation – There are different factors that needs to be consider by customer by
purchasing skin care products. As per data it has been analysed that 4 and 6 respondents feel that
they consider recommendation products by sales person and brand respectively. Where as most
of the respondents that is 20 consider natural and organic products.
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a) Recommendation from sales person
b) Natural cosmetic/ Product ingredients
c) Brand
0 2 4 6 8 10 12 14 16 18 20
Column B

Q4. From where you buy your natural
beauty or skin care products?
Frequency
a) Online Store 5
b) Pharmacies 8
c) Local Store 5
d) Specialist organic supermarket 12
Mean 7.5
Median 6.5
Mode 5
Interpretation- There are different ways from where customer can purchase natural and
beauty products. Though data it has been analysed that most of customer such as 12 prefer
specialist organic market. Where as other 5, 8 and 5 feels consider online store, pharmacies and
local store to purchase products.
12
5
8
5
12
a) Online Store
b) Pharmacies
c) Local Store
d) Specialist organic
supermarket