Lush Marketing Plan – Run Under the Sun Sunscreen 1

Lush Run Under the Sun Sunscreen Marketing Plan Stephany Treadway Wei-Chen Wu Notre Dame de Namur University BUS 4400: Marketing Planning & Analysis Dr. Warren Brown April 29th, 2009

Copyright©Wei-Chen Wu & Stephany Treadway 2009

Lush Marketing Plan – Run Under the Sun Sunscreen 2 Product Logo

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Copyright©Wei-Chen Wu & Stephany Treadway 2009

Copyright©Wei-Chen Wu & Stephany Treadway 2009 . anyone who plans to spend time in the sun. With the increasing health concern regarding safe skin protection from harmful sun rays Lush is in a prime position to enter the fast growing organic sunscreen market. The introduction of a new product line named Run Under the Sun Sunscreen will allow Lush to compete in a developing market and increase their customer base within the United States as well as globally. opportunities and threats. essential oils and safe synthetics. weaknesses. a concentrated focus on Lush’s strengths. and print ad advertisements in fashion and fitness magazines. celebrity endorsements. Positioning of the new product and marketing strategies will play an essential role in the success of this new organic sunscreen product. and clear marketing objectives.Lush Marketing Plan – Run Under the Sun Sunscreen 3 Executive Summary Lush Cosmetics was founded in 1994 and is an organic cosmetics and skin care company headquartered in Poole. England. organic materials. Utilizing a push strategy aimed at channel distributors and a pull strategy aimed at customer segments. The initial roll out of the new product line will start in the United States to a mass target market. Strategies deployed will include POP display promotions at retail stores as well as sporting events. The company prides itself on the core beliefs of making effective products from fresh. Introducing a new product in a quickly advancing market will include a great deal of market research.

Lush Marketing Plan – Run Under the Sun Sunscreen 4 Incorporating necessary controls to monitor monthly and annual sales (by channels). In addition to the testing practices of many manufacturers. One issue with many cosmetic and skin care products is they are manufactured by companies utilizing animal testing in their product development process. monthly and annual revenue. The increasing awareness has prompted the new product offering for Lush to gain a foothold in this rising market. Situation Assessment and Analysis In 1994. and R&D of new product development will play a key role in keeping Lush’s competitive advantage. The slow depletion of the ozone layer has incited a spotlight on sun safety and skin protection. environmental factors play a role in the increased organic market demand. In May 2009 Lush Cosmetics will introduce a new line of skin care products called Run Under the Sun Sunscreen targeted beyond their current loyal customer base. organic skin care and make-up products. This shift has opened a door for Lush to enter and compete in the quickly progressing organic market. Due to Lush’s core belief of promoting non-animal tested products has kept Lush out of the organic sunscreen market. As consumer demand for more organic and natural products has increased over the last decade more manufacturers are looking into alternatives to product testing other than the use of animals. Mark and Mo Constantine started the Lush Cosmetics brand which offers all natural. Having a contingency plan will allow Lush to continually grow in this emerging market. Copyright©Wei-Chen Wu & Stephany Treadway 2009 . customer satisfaction.

the CDC reported that a staggering 40% of Americans do not apply sunscreen at all. 72% Do not reapply at all Source: Centers for Disease Control (CDC).Lush Marketing Plan – Run Under the Sun Sunscreen 5 The Run Under the Sun Sunscreen product offers a safe alternative to sun protection versus the traditional chemical sunscreen formulas. 2007. Much research has shown the potential harmful affects on human DNA of the chemical based sunscreens which is a driving factor in the consumer demand for organic sunscreen ingredients. The Centers for Disease Control (CDC) reported in 2007 that 72% of Americans do not reapply sunscreen after the initial application. Further. May. These statistics as shown in figure 1 below shows a great opportunity for Lush to gain a greater market share in this industry. Figure 1 2007 American Sunscreen Use Statistics 40% Do not apply sunscreen 28% Reapply after 2 hrs 60% sunscreen QuickTime™ and a TIFF (Uncompressed) decompressor applyare needed to see this picture. Copyright©Wei-Chen Wu & Stephany Treadway 2009 .

we will introduce the product to other 500 retail stores in over 50 countries. Target Markets  Lush customers who usually wear sunscreen  Customers who search for ‘green’ products for their skin  Customers who are attracted by the features or functions of the product: convenient and intended for the whole family  Sunscreen users don’t reapply sunscreen two hours after first applying (72% of Americans. and behavior factors: Geographic The initial product launch will be in the United States. market demographics. After the first year. market trend. market growth. the market size is approximately 306 million people. Demographic  In general. according to CDC. 2007 ) Market Demographics This marketing plan categorizes Lush’s customers into three categories: geographic. SWOT analysis. demographic. 2007)  People who don’t apply sunscreen (40% of Americans. Outlined below are the target markets. market needs. about 70% of Lush’s customers are female Copyright©Wei-Chen Wu & Stephany Treadway 2009 . according to CDC.Lush Marketing Plan – Run Under the Sun Sunscreen 6 Market Summary This marketing plan is focused on targeting a mass market. product offering and keys to success.

 Customers are willing to pay more on facial products  Customers like outside activities and/or are used to wearing sunscreen Market Needs The idea of the new product came from the sunny California climate. The formula of Lush’s sunscreen not only provides the right natural essential oils and organic ingredients that protects users from UV ray sunburn but also moisturizes their skin at the same time.Lush Marketing Plan – Run Under the Sun Sunscreen 7  Female customers’ ages range from 18-50. the 35-50 year age group is growing rapidly  Metro sexual men account for approximately 25%. The Run Under the Sun Sunscreen offers the following benefits: Adequate SPF index and moisture benefit. Because of the consistent sunshine and dryness in California people need to become aware of UV protection and healthy moisture options for their skin.  Copyright©Wei-Chen Wu & Stephany Treadway 2009 . age range is 25-45 years old Behavior Factors  Lush’s customers tend to be sensitive to fashion such as reading cosmetics magazines and looking up to fashion celebrities.

portable and convenient not to mention they will have the necessary sun protection immediately. They can just put on the sunscreen (adults and children should put on the different kinds of sunscreen) before they leave the house. and green apples. Lush is strongly committed to non-animal testing for all of its products. Easy.  Natural scents. all scents of the sunscreen are natural and unique. Families who use Lush’s product don’t need to bring the different bottles of sunscreen on their trip. The strength of the sunscreen for adults is not suitable for children. they can simply use the Run Under the Sun sunscreen spray.  Convenient.  No animal testing. From organic fruits. not Market Trend According to http://www. There are three different kinds of sunscreen one is designed for adults.Lush Marketing Plan – Run Under the Sun Sunscreen 8  Available for adults. children. cherries. “[m]ost of the more than 1 million cases of non-melanoma skin cancer diagnosed yearly in the United States are Copyright©Wei-Chen Wu & Stephany Treadway 2009 . including strawberries. Whenever they need to reapply sunscreen while they are away from home. one for children and a spray for the family. and the entire family.cancer. oranges. The actions to refuse purchasing ingredients from companies that perform animal testing practices gives you an idea about Lush’s integrity and care for the environment.

25 billion. and fruits. UV rays penetrate directly into people’s skin. natural minerals. Melanoma. will account for about 59. because of the climate change and the damage of the earth’s ozone layer.” Moreover. the most serious type of skin cancer.Lush Marketing Plan – Run Under the Sun Sunscreen 9 considered to be sun-related.850 deaths due to skin cancer each year. Copyright©Wei-Chen Wu & Stephany Treadway 2009 . or they are unaware of the extreme impact from sunburns. the sunscreen market will be worth $1.940 cases of skin cancer in 2007 and most (about 8. There are people who still choose not to apply sunscreen before they go out into the sun. we estimate there will be more people who will opt to use more organic products for themselves and their families.110) of the 10. It is made from essential oils. This is a great opportunity for Lush to introduce this innovative product nationwide. Consistent penetration of UV rays causes extreme damage to people’s skin. SWOT Analysis Strengths This marketing plan focuses on the strength of the new product – Run Under the Sun Sunscreen. Additionally. Market Growth By 2010. This product is different from other sunscreen brands currently on the market today as noted by the following points: o 100% all organic. Lush can educate consumers by introducing the advantages of their new Run Under the Sun sunscreen product offering.

Opportunities o Attract Lush’s loyal customers that are willing to try new products offered by Lush. Copyright©Wei-Chen Wu & Stephany Treadway 2009 . Lush has loyal customers and a solid reputation for helping sustain the environment.g.Lush Marketing Plan – Run Under the Sun Sunscreen 10 o It contains antioxidant ingredients and has a natural scent from fruits. o Contains the appropriate amount of sun protection factor (SPF) for customers’ skin. Lush also has over 500 shops all over the world. o Difficulty raising awareness of UV protection to customers. o Less packaging and environmentally friendly bottle design. o Minimal channels of distribution. o High budget for promotion and R&D. Focusing the product in countries that emphasize the importance of UV protection (e. Asian countries) will definitely increase the organization’s sales. o Reaching consumers unaware of Lush skin care products. Weaknesses o Unable to attract customers who don’t care that much about purchasing environmentally friendly products. o The product protects both adults and children.

(Homogenous stores) o Competitors in other countries.g.etc) Product Offering The primary sunscreen products for adults. and a sunscreen spray for reapplication while on the go. o Cooperate with other corporations who are working to sustainability and remedying the environmental crisis (e.  Substitutes of sunscreen (umbrella. The Body Shop. o Duplicate or knock-off products in other countries. Burt’s Bee. Starbucks or Apple Store). children. o Capture the media’s attention and emphasize promotions to broadcast Lush’s core beliefs. Lush will continue to provide a percentage of their profits to their charity partners such as Copyright©Wei-Chen Wu & Stephany Treadway 2009 . long-sleeve shirts. Most possible brands would be: Alliance Boots.Lush Marketing Plan – Run Under the Sun Sunscreen 11 o Attract customers that want environmental friendly and organic products. and Bath & Body Works.. o International growth potential Threats o Many competitors range from high-end brands to generic brands. hats.. L'Occitane. Keys to Success Run Under the Sun Sunscreen is a unique sunscreen product and exemplifies Lush’s mission statement and core beliefs.

 We believe our products are good value.Lush Marketing Plan – Run Under the Sun Sunscreen 12 Opportunitas Aequa. The moral actions for a better community and their strong core beliefs will lead Lush to success. using only vegetarian ingredients and tell you when they were made.  We believe in happy people making happy soap.lushusa.  We invent our own products and fragrances.  We believe in buying ingredients only from companies that do not commission test on animals and in testing products on humans. the finest essential oils and safe synthetics. massage. putting our faces on our products and making mums proud. that we should make a profit and that the customer is always right.  We believe in long candlelit baths.  We also believe words like 'fresh' and 'organic' have an honest meaning beyond marketing. Source: Copyright©Wei-Chen Wu & Stephany Treadway 2009 . sharing showers. lose everything and start again. Marketing Strategy Lush consistently lives and breathes their mission and core beliefs:  We Believe in making products from fresh organic fruit and vegetables. Clean Ocean Action to name a few. Giving back to the community demonstrates Lush’s corporate social responsibility. Sea Shepherd. we make them fresh by hand using little or no preservatives or packaging. filling the world with perfume and in the right to make mistakes.

Positioning Run Under the Sun Sunscreen is positioned as a sunscreen product that is all organic. We estimate approximate three billion potential customers in over 50 countries for Lush to reach. It is important to propagate Lush’s mission to consumers through marketing activities. Maintain R&D budget to introduce more sunscreen products. The Copyright©Wei-Chen Wu & Stephany Treadway 2009 .g. safe sunscreen for infants Product Introduction We will introduce Run Under the Sun Sunscreen in major cities across the United States initially. Lush will provide education on how to use the new sunscreen products they are offering. safe for consumers. Further. 2009) to the end of 2010.Lush Marketing Plan – Run Under the Sun Sunscreen 13 Marketing Objectives The objectives of the Run under the Sun marketing plan will provide disseminate awareness of sun protection to the public and introduce them to use Lush’s sunscreen products. e. With the revenues from the initial sales we will supply other Lush retail stores located in other countries. Attract potential new customers to all of Lush’s products. and environmentally friendly due to a reduction in the packaging and use of 100% recycled material for the bottles. Financial Objectives The financial outcomes this project plan hopes to bring for Lush are: Increase the product margin by 3% per quarter Reach 13% growth from the first month of the launching year (May.

such as Facebook. Lush customers can be directed to major retailers to purchase Lush products or through online ordering. or Cosmopolitan o Have Lush sales associates to talk to customers about the features of their sunscreen product o Product placement marketing on popular TV shows and talk shows o Online advertising with online media. Myspace. o Sponsor sporting events. International strategies: Copyright©Wei-Chen Wu & Stephany Treadway 2009 .Lush Marketing Plan – Run Under the Sun Sunscreen 14 product is also very functional and convenient.etc.. Target. by utilizing pulling marketing strategy. Also. Fitness Magazine. Whole Foods. such as the volleyball or track events o Push-pull marketing strategy: Promote Lush’s product to retailers such as Macy’s. It is also important to raise awareness of sun protection and health/skin protection. General strategies (to all countries): o Celebrity endorsements of the new Lush product o Advertisement in local and national cosmetics magazines such as Vogue. and Trader Joe’s to create a consumer demand for Lush’s sunscreen. GQ.. Strategies We will use different strategies in different countries.

and parks in North American and European countries o Nude campaign in metropolitan areas in European countries: a nude marketing campaign to publicize the awareness of minimal packaging and natural products o In Asian countries. Marketing Mix Product: Run Under the Sun Sunscreen Price: (US) o For Adults: $25 o For Children: $20 o Sunscreen Spray: $25 o Spray Refill: $20 Place (Channels of Distribution): o Online Store: to existing and potential customers o Retail Stores: to existing and potential customers o Mail Order: to existing customers Promotion: Copyright©Wei-Chen Wu & Stephany Treadway 2009 . gyms.Lush Marketing Plan – Run Under the Sun Sunscreen 15 o POP (point of purchase) display promotion at beaches. marketing campaign to show consumers differences in wearing Lush’s and other brands’ sunscreen to emphasize the superiority of Lush’s sunscreen. tanning salons.

149. they can stop making anything that doesn’t sell without a big financial loss for wasted inventory.007 Sources: Hoovers. Financial Projections and Analysis Product Yearly Sales Forecast & Yearly Revenue Forecast: Table 1 United States Lush Revenue Sales Forecast Lush Yearly Sales Forecast (US.593. o Membership discount to our existing customers o Providing coupons to the supporters of our every charity partners o Distribute samples and product sheet in department stores and retail stores Marketing Research Lush has monthly sales figure in the United States. free shipping) to customers who buy the products online and through mail order. Wei-Chen Wu & Stephany Treadway Sales 2008 $12. The secret shoppers are volunteers from Lush’s online customer forum.680. USD) 2009 2010 2011 $13.Lush Marketing Plan – Run Under the Sun Sunscreen 16 o Purchase three Run Under the Sun Sunscreen products for a discount price o Bundling discount (e. Sending mystery shoppers is also a marketing research strategy used by Lush.915 $16.g.824. Lush also receives instant sales feedback from retail shop managers. Since Lush hand-makes most products.000 Copyright©Wei-Chen Wu & Stephany Treadway 2009 .440 $14.

a projected forecast for Run Under the Sun sunscreen product yearly sales forecast covers three years (2009-2011) as shown below in table 2 Copyright©Wei-Chen Wu & Stephany Treadway 2009 .Lush Marketing Plan – Run Under the Sun Sunscreen 17 Through examining the revenue sales forecast.

860 Total Sales and Marketing $98.920 $92.425 In-store printed material $12. as shown in table 3. USD) Budget 2009 2010 2011 Website Update $1.000 $25.760 $21.840 $27.815.000 $483. Table 3 Marketing Expense Budget Lush Run Under the Sun Sunscreen Marketing Expense Budget (US.200 $20.450.050 $1.000 $666.591.000 $20. USD) Sales 2009 2010 2011 Sunscreen-for adults $500.820 Sources: Wei-Chen Wu & Stephany Treadway Copyright©Wei-Chen Wu & Stephany Treadway 2009 .000 $102. It will also be the indicator when the correction is needed for the implementation of our marketing plan.400 2011 $32.840 Spray Refill $250.00 $1.000 $324.000 2010 $31.800 $26.155 Advertisements $50. will be used to control and monitor our marketing activities.750 $40.000 $12.000 $565.400 Total Sales Direct Cost of Sales Sunscreen-for adults Sunscreen-for children Sunscreen spray Spray Refill Subtotal cost of Sales Expense Forecast The expense forecast plans include monthly expense budget and milestones expense forecast.300 $10.000 $270.500 $57.000 $362.000 $10.000 $85.700 Sunscreen-for children $300.000 $302.750 Mail Order Catalogue $35.19 $1.600 $13.00 $1.000 $52. as shown in table 3 and 4.000 $10.000 $36.90 $113.000 $432.82 0 0 0 2009 $30.Lush Marketing Plan – Run Under the Sun Sunscreen 18 Table 2 US Product Yearly Sales Forecast Lush Run Under the Sun Sunscreen Sales Forecast (US.880 Sunscreen spray $400.000 $1. Marketing expense budget plan.400 $88.

267.47% $1.000 g $250.76% $1.Lush Marketing Plan – Run Under the Sun Sunscreen 19 Expense Percent of Sales Contribution Margin Contribution Margin/Sales 0 6. The following areas will be monitored and responded to immediately if any problems arise:    Monthly and annual sales (by channels) Monthly and annual revenue Customer satisfaction Copyright©Wei-Chen Wu & Stephany Treadway 2009 . USD) Start End Departm Milestones Date Date Budget ent Marketin Marketing Plan Completion 03/09/09 04/20/09 $0 g Marketin Website Update 04/30/09 05/05/09 $900 g Marketin Mail Order Catalogue Completion 03/10/09 03/30/09 $35.00 Marketin Ad Campaign 1– Print Ad in Magazines 05/05/09 06/30/09 0 g Ad Campaign 2– Product Placement $200.23% $1. 000 87. 810 88.98% 0 6.90 0 Sources: Wei-Chen Wu & Stephany Control and Evaluation of Effectiveness Controls This marketing plan serves as a guide for the Lush Cosmetics.38% Sources: Wei-Chen Wu &Stephany Treadway Table 4 Milestones Milestones Expense Budget Plan (US.00 Marketin Campaign 07/01/09 08/31/09 0 g Ad Campaign 3– Sporting Event Marketin Campaign 09/01/09 11/01/09 $50.65% 6.399.609.000 g Total Treadway $535. 700 87.

Copyright©Wei-Chen Wu & Stephany Treadway 2009 . a concentrated campaign focused on Lush retail stores will focus on educating customers of the importance of sunscreen protection. Table 4 shows the start and end dates of each program. In addition to the discount promotions. Another possibility for the contingency plan to be implemented is when a potential competitor introduces a homogeneous product with low-cost technology. We will initiate a short-term low-cap bundling shipping discount for online and mail order customers. The campaign will provide consumers direct access to skin care experts or doctors for a question answer educational session in Lush retail stores around the country. Contingency Plan A contingency plan is developed to deal with the existing competitors and potential competitors. Based on the outcome of these two promotions. Marketing Organization XYZ Marketing Agent will be in charge of the Run Under the Sun Sunscreen marketing activities. They are required to be controlled within the indicating budget. This may occur when a major competitor launches a low-pricing marketing strategy.Lush Marketing Plan – Run Under the Sun Sunscreen 20  R&D. we will revise the marketing plan as product development Implementation The milestone expense budget plan shows the strategic plan of key marketing programs that need to be implanted.

Lush Marketing Plan – Run Under the Sun Sunscreen 21 Copyright©Wei-Chen Wu & Stephany Treadway 2009 .

2009.htm Ray Stern.docstoc.lushusa. ICMR Center of Management %20Marketing%20Strategies-Lush%20Fresh%20Handmade %20Cosmetics-Case%20Studies. 2009 from Retrieved Mar 23rd . 2005.Lush Marketing Plan – Run Under the Sun Sunscreen 22 References Lush Karl A. Retrieved Mar 23rd .com/valleyfever/2008/08/lush_cosmetics _nude_promotion.php Lush Cosmetics.phoenixnewtimes. 2009. SUNSCREENS. 2009 from http://www. 2009 from %2FKAH_01. But (Fortunately) Not In Scottsdale. Retrieved Mar 23rd .com/url? sa=t&source=web&ct=res&cd=1&url=http%3A%2F%2Fwww.ppt&ei=kJv0SdG9LaTyswPVxZzQCg&usg=AFQjCNHaFrMG nQ-rFVo427bx2PGXGHgUUQ&sig2=ugxsdRND3ZylBsm42EqEMw Copyright©Wei-Chen Wu & Stephany Treadway 2009 . Retrieved Mar 23rd .stephenherman. Lush Cosmetics' Nude Promotion Draws Heat From Police In Boston Area. KAH Specialty Products. Lush’s Mission. Harris. Retrieved from http://www. Innovative Marketing Strategies of Lush Fresh Handmade Cosmetics. LLC. 2009 from http://blogs.

Skin Cancer Facts. T.cancer. Grosick. M. Sunscreen Market Analysis: The Evolution and Use of UVA-1 Actives.R. P.L. Retrieved from American Cancer Society. Tanner. Retrieved from http://www. Nash. The Procter & Gamble Company. M. 2007.Lush Marketing Plan – Run Under the Sun Sunscreen 23 J F. Ryan. Zimnawoda. 2004.asp Copyright©Wei-Chen Wu & Stephany Treadway 2009 .org/docroot/PED/content/ped_7_1_What_You_Need_ To_Know_About_Skin_Cancer.

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