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GSMC 2014

Global Summit on
Management Cases

LUSH: A RARITY IN THE COSMETICS INDUSTRY*


ABSTRACT
This case is about a successful entrepreneurial start-up called Lush. Mark Constantine, a trichologist,
started Lush with a single store in the UK in 1995. Lush went on to become a famous cosmetic company
in the world, having over 750 stores in 45 countries by 2011. Lush was unique in many ways. It had a
strong stand against using chemicals, animal testing and packaging. Lush used a lot of natural materials
like fruits in its products such as soaps, shampoos, gels, etc. To avoid harming the environment, Lush
used as little packaging as possible and mostly had solid products. Even for transportation, the company
innovatively used popcorns to be eco-friendly as well as to protect the products. Because of natural
ingredients, even the life of their products was longer. Lush also had a unique philosophy to encourage
innovation. Once a year they would have a Mafia Meeting wherein they would discard one third of their
products that werent doing well. This encouraged employees to come up with something new and
innovative. Mark also had a very hands-on approach and would be involved in almost every aspect of the
company. This case covers the interesting journey of the entrepreneur Mark Constantine from initially
becoming the biggest supplier for Body Shop, to starting a company Cosmetics to go which failed, to
opening Lush and the challenges he faced.

Pedagogical Objectives
This case is designed to enable students to:

Understand the various challenges faced by an entrepreneur.

Understand the factors which influence the success of an entrepreneurial venture.

Assert the possible reasons for the failure of the previous start ups by Mark Constantine.

Analyse whether Lush was truly an ethical company the way it projected itself.

Analyse whether a business can be successful while functioning in a truly ethical way

Analyze and assess the stand taken by Lush under the leadership of Mark regarding the support extended
to various campaigns and also the funding provided to controversial organizations

Visualize the future of Lush without Mark Constantine

Case Positioning and Setting


This case is meant for MBA students as a part of the Business Strategy/Marketing Management curriculum.

* GSMC 2014, IIM Raipur

www.etcases.com

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