Professional Documents
Culture Documents
Stephany Treadway
Wei-Chen Wu
Product Logo
Executive Summary
itself on the core beliefs of making effective products from fresh, organic
materials, essential oils and safe synthetics. 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
essential role in the success of this new organic sunscreen product. The
initial roll out of the new product line will start in the United States to a
mass target market; anyone who plans to spend time in the sun.
segments.
R&D of new product development will play a key role in keeping Lush’s
which offers all natural, organic skin care and make-up products. One issue
with many cosmetic and skin care products is they are manufactured by
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.
This shift has opened a door for Lush to enter and compete in the quickly
The slow depletion of the ozone layer has incited a spotlight on sun safety
and skin protection. The increasing awareness has prompted the new
product offering for Lush to gain a foothold in this rising market. 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.
The Run Under the Sun Sunscreen product offers a safe alternative to
research has shown the potential harmful affects on human DNA of the
for organic sunscreen ingredients. The Centers for Disease Control (CDC)
reported in 2007 that 72% of Americans do not reapply sunscreen after the
below shows a great opportunity for Lush to gain a greater market share in
this industry.
Market Summary
keys to success.
Target Markets
to CDC, 2007 )
Market Demographics
Geographic
The initial product launch will be in the United States; the market size
Demographic
Behavior Factors
celebrities.
wearing sunscreen
Market Needs
The idea of the new product came from the sunny California
healthy moisture options for their skin. The Run Under the Sun
sunscreen not only provides the right natural essential oils and
Available for adults, children, and the entire family. There are
for children and a spray for the family. The strength of the
They can just put on the sunscreen (adults and children should
away from home, they can simply use the Run Under the Sun
practices gives you an idea about Lush’s integrity and care for
the environment.
Market Trend
cancer, will account for about 59,940 cases of skin cancer in 2007 and most
(about 8,110) of the 10,850 deaths due to skin cancer each year.” Moreover,
because of the climate change and the damage of the earth’s ozone layer,
rays causes extreme damage to people’s skin. There are people who still
choose not to apply sunscreen before they go out into the sun, or they are
unaware of the extreme impact from sunburns. Lush can educate consumers
by introducing the advantages of their new Run Under the Sun sunscreen
product offering.
Market Growth
estimate there will be more people who will opt to use more organic products
for themselves and their families. This is a great opportunity for Lush to
SWOT Analysis
Strengths
This marketing plan focuses on the strength of the new product – Run Under
the Sun Sunscreen. This product is different from other sunscreen brands
o 100% all organic. It is made from essential oils, natural minerals, and
fruits.
customers’ skin.
Lush has loyal customers and a solid reputation for helping sustain the
environment. Lush also has over 500 shops all over the world. Focusing the
Weaknesses
Opportunities
o Attract Lush’s loyal customers that are willing to try new products
offered by Lush.
products.
Store).
Threats
possible brands would be: Alliance Boots, The Body Shop, L'Occitane,
Product Offering
The primary sunscreen products for adults, children, and a sunscreen spray
Keys to Success
exemplifies Lush’s mission statement and core beliefs. Lush will continue to
responsibility. The moral actions for a better community and their strong
Marketing Strategy
Lush consistently lives and breathes their mission and core beliefs:
the world with perfume and in the right to make mistakes, lose
We believe our products are good value, that we should make a profit
Source: http://www.lushusa.com/about/
Marketing Objectives
The objectives of the Run under the Sun marketing plan will provide
use Lush’s sunscreen products. Further, Lush will provide education on how
Financial Objectives
The financial outcomes this project plan hopes to bring for Lush are:
Reach 13% growth from the first month of the launching year (May,
Product Introduction
We will introduce Run Under the Sun Sunscreen in major cities across the
United States initially. With the revenues from the initial sales we will supply
Positioning
Run Under the Sun Sunscreen is positioned as a sunscreen product that is all
in the packaging and use of 100% recycled material for the bottles. The
Strategies
shows
Myspace...etc.
ordering.
International strategies:
countries
Marketing Mix
Price: (US)
Promotion:
discount price
retail stores
Marketing Research
Lush has monthly sales figure in the United States. Since Lush hand-makes
most products, they can stop making anything that doesn’t sell without a big
financial loss for wasted inventory. Lush also receives instant sales feedback
research strategy used by Lush. The secret shoppers are volunteers from
Through examining the revenue sales forecast, a projected forecast for Run
Under the Sun sunscreen product yearly sales forecast covers three years
Expense Forecast
The expense forecast plans include monthly expense budget and milestones
activities. It will also be the indicator when the correction is needed for the
Expense 0 0
Percent of Sales 6.76% 6.47% 6.23%
$1,267, $1,399, $1,609,
Contribution Margin 000 700 810
Contribution Margin/Sales 87.38% 87.98% 88.65%
Sources: Wei-Chen Wu &Stephany Treadway
Table 4 Milestones
$535,90
Total 0
Sources: Wei-Chen Wu & Stephany
Treadway
Controls
This marketing plan serves as a guide for the Lush Cosmetics. The following
Customer satisfaction
Implementation
The milestone expense budget plan shows the strategic plan of key
controlled within the indicating budget. Table 4 shows the start and end
Marketing Organization
XYZ Marketing Agent will be in charge of the Run Under the Sun Sunscreen
marketing activities.
Contingency Plan
and potential competitors. This may occur when a major competitor launches
low-cap bundling shipping discount for online and mail order customers.
educational session in Lush retail stores around the country. Based on the
needed.
References
Lush Cosmetics, 2009. Lush’s Mission. Retrieved Mar 23rd , 2009 from
http://www.lushusa.com/about/
2009 from
http://www.icmrindia.org/casestudies/catalogue/Marketing/Innovative
%20Marketing%20Strategies-Lush%20Fresh%20Handmade
%20Cosmetics-Case%20Studies.htm
Ray Stern, 2008. Lush Cosmetics' Nude Promotion Draws Heat From Police In
2009 from
http://blogs.phoenixnewtimes.com/valleyfever/2008/08/lush_cosmetics
_nude_promotion.php
http://www.docstoc.com/docs/4992865/lush-cosmetics
from http://www.google.com/url?
sa=t&source=web&ct=res&cd=1&url=http%3A%2F%2Fwww.stephen-
herman.com
%2FKAH_01.ppt&ei=kJv0SdG9LaTyswPVxZzQCg&usg=AFQjCNHaFrMG
nQ-rFVo427bx2PGXGHgUUQ&sig2=ugxsdRND3ZylBsm42EqEMw
Market Analysis: The Evolution and Use of UVA-1 Actives, The Procter &
http://www.cancer.org/docroot/PED/content/ped_7_1_What_You_Need_
To_Know_About_Skin_Cancer.asp