LUSH manufactures and sells cosmetics and hand-made soaps. In 1994, LUSH was founded by Mark Constantine in the United Kingdom and now has other stores in thirty seven countries entailing Germany, Japan, France, Italy, and Taiwan (“Stories,” n.d.). The company is developing rapidly. Out of 100,000 sterling pounds which represented the growth for 700 times of investment in a decade, Taiwan’s LUSH established a flagship store in the highest building in the world, Taipei 101 (“Stories,” n.d.). However, there are 24 stores that belong to LUSH in Taiwan.
LUSH segments its brand name, products and brand core values.
Brand core values
LUSH dictates it core values and belief that all LUSH staff in all LUSH in LUSH stores conform to. The core beliefs entail the use of fresh ingredients, handmade products, protection of the planet, opposition of animal testing, and promotion of happiness though producing happy soap, and being supportive to the community at large (“Stories,” n.d.). LUSH produces products out of fresh fruits and vegetables. Soaps are produced by hands and ingredients are sourced only from institutions committed to perform no animal testing. The company is encouraging a happy working atmosphere whereby staffs enjoy working as customers enjoy coming to make their purchases. The company ensures that purchases have to positively impact both the society and the environment.
All LUSH stores worldwide utilize the brand name LUSH. In non-English speaking markets, translation of the name LUSH is not done at all (“Stories,” n.d.). For instance, in Taiwan, LUSH has not been translated into Chinese; neither has the one in Japan translated it into Japanese. This is because the meaning of LUSH is full of juice which hence representing its products. Moreover, LUSH is only made up of 4 letters which makes it easy for customers to recognize it.
Every product produced by LUSH is globally segmented, each LUSH store selling similar products. To ascertain that their products are fresh, the company has regional factories which supply diverse areas (“Stories,” n.d.). As the products are similar in every country, every new product comes from Sophia Meeting or the founder, Mark Constantine.
LUSH has localized is website for all its subsidiaries, ways of practicing brand core values, marketing initiatives as well as customer communications.
Albeit LUSH products are being globally standardized, every LUSH subsidiary establishes a local website that communicates with its customers. For instance, LUSH USA incorporates “No Tricks, All Treats” slogan to its homepage during Halloween (“Stories,” n.d.). Furthermore, Asian women prefer skin that is lightly colored, therefore LUSH Taiwan incorporated “Cleaning and Whitening Your Skin” slogan to their homepage. Also LUSH UK and Japan exploit different programs in promoting new products displayed in their homepages.
Ways of practicing brand core values
Every subsidiary of LUSH are sharing common beliefs, though practice them in different ways. For instance, every LUSH subsidiary is encouraging customers to utilize reusable shopping bags (“Stories,” n.d.). Nonetheless, such shopping bags designs are significantly varying across LUSH subsidiaries.
Marketing initiatives and customer communications
LUSH marketing activities are capable of sharing a common theme though executed differently. For instance, in the marketing strategy referred to as Naked Packing campaign, staff member in the United States, United Kingdom and Germany put on LUSH aprons while naked as a way of promoting purchases of products with less packaging (“Stories,” n.d.). Taiwanese society being too conservative to request their staff to do what the other staffs in the United States, United Kingdom and Germany were doing, the Taiwanese customers would also not tolerate such kind of promotions (“Stories,” n.d.). Instead, LUSH Taiwan participated through the annunciation of the Naked Packing campaign in their local newspapers. Every LUSH subsidiary makes a publication of LUSH time for their customer, thought the keeping the contents localized (Chapter 8, Slide 22). Different countries entail diverse content in their LUSH Times.
POP and POD
LUSH has some Points of parity with its competitors. LUSH has a strong financial position just like other competitors thus allowing the company to expand annually around the world. Just like other competitors, LUSH has an effective marketing strategy allowing the brand to reach more loyal customer on regular basis. Like any other competitor it also has market leadership in many countries around the world (“Stories,” n.d.). In a competitive industry LUSH has as well established a strong online presence which is more convenient to many customers. To catch up with the other competitors, LUSH has a well-established and strong cash flow and a profit income that allow the company steady growth (“Stories,” n.d.). Increase turnover and trading profits. LUSH has a strong balance sheet and as well supports sustainability and environment like other competitors (Chapter 10, Slide 9). Due to the high competition in the cosmetic industry, companies do exercise brand awareness. LUSH as well as a complex brand awareness, which always keeps an eye wide open to the different competitors in the market (“Stories,” n.d.). In the competitive industry, competitors tend to make a positive impact to the community through sponsorship of certain activities. LUSH is also taking an active role in supporting the community through sponsoring sports events and sponsoring education and charity foundations. Another LUSH’s Points-of-Parity is the publication of LUSH Times quarterly magazine for its customers (Chapter 10, Slide 9). This strategy is also utilized by other competitors.
Moreover, the Points-of-Difference between LUSH’s brand and its competitors is significant an outstanding (Chapter 10, Slide 11). LUSH has a unique brand name that gives them a competitive advantage to their competitors (“Stories,” n.d.). Its name is only in four unique letters that symbolizes its products. Another POD is that LUSH standardizes is brand core values while localizing the way they are executed unlike its competitors who standards ever aspects of their core values. The Naked Packing campaign is another unique marketing strategy that no other competing company has ever used.
LUSH makes its brand name, products and brand core values standardize while localizing the subsidiaries’ websites, ways of practicing brand core values, marketing initiatives as well as customer communications. This is to mean that, LUSH contends to maintain a constant brand core values. Nevertheless, LUSH has localized the way it executes its brand marketing initiatives. In the implementation of the strategy, LUSH extended into 37 countries growing sales 700 times from their previous performance between 1994 and 2004. This case study presented here indicates that companies can standardize the core value of their brand at the same time localizing the way of executing brand marketing.