Introduction

Lush is one of the most renowned brands in recent times. It has been able to establish itself as one of

the key players in the market. The prospect of the handmade cosmetic items has ensured that the

company has been able to grow substantially in the market. The company has now sales outlets in many

different countries. It has also been based in United Arab Emirates too. The company has a lot of

products which are spread across bath and shower, face, body, hair, fragrances etc. One of their most

popular product is the bath bombs. This has seen some serious development and growth over the years.

The project will focus on this product and analyze the companies market strategy for it in the

UAE[ CITATION Lus20 \l 1033 ].

The External Marketing Environment

The external marketing environment would be an essential aspect as far as the business is concerned.

This would always shape the performance of the business in the long run. This section will analyze the

external environment which Lush would be facing in the United Arab Emirates.

 Social factors

The society and the acceptance towards a product would play a vital role in the success of a

product. Lush is offering handmade cosmetics products which would always mean that there is

lesser strain on the environment. There is less use of chemicals for the skin of the customers. All

this makes it a very attractive product for the society as it ticks the boxes being good on the

customers. Thus, as far as the society is concerned there are clear benefits for the business and

it would be an extremely beneficial for the business to succeed in the long run[ CITATION

Eur20 \l 1033 ].
 Demographic Factors

The main target market is focused on the population who are conscious regarding their skins

and also have strong concern regarding the environment. This type of population would be

falling between the ages of 20 to 45 years. An attractive demographic population must mean

that these people with the ages of 20-45 years must have the income and have the income to

purchase their products. The United Arab Emirates have a decent population who are in this age

bracket[ CITATION Kot121 \l 1033 ]. Furthermore, the GDP is increasing for the country which is

only the helpful for the business to succeed in the long run. However, the aspects of the

pandemic must also be concerned due to the fact that there can be a fall in income which would

result in loss of customers[ CITATION Eur20 \l 1033 ].

 Economic Factors

The Gross domestic product of the United Arab Emirates is considered as one of the highest in

the region. The rise in the tourist and shopping culture is always related to the fact that the

company is offering exclusive product. This would eventually be needed for the business to

grow. However, the recent estimates might actually bring nothing to fruition due to the fact that

the pandemic has its fair say in the damage of economy. The economy might struggle to find the

right amount of buyers as there would be a fall in expenditure of luxurious products. Lush could

well face some serious issues due to the lack in income in the economy. This aspect would be

seen all around the world[ CITATION Eur20 \l 1033 ].

 Technological Factors

The United Arab Emirates and Dubai in particular is renowned for being introduced with newer

products. The concept of Lush in terms of handmade bath bombs is a new one. This would be

well accepted and received in the country. this would also mean that the busines can succeed in

the long run due to the efficient infrastructure available in the country.[ CITATION Eur20 \l

1033 ]

 Political and Legal Factors

The political and legal environment would play a massive role in the success of a business.

Political turmoil can bring serious consequences for a business. This would also mean that a

business might struggle to conduct its operations. The United Arab Emirates is considered as

one of the safest in terms of security and the risk of political turmoil is bare minimum. This gives

any company to grow and succeed.

 Competitive Forces

There is intense competition in the market as far as the cosmetic market is concerned. The

bigger and established brands like Sephora, Loreal, Nora etc. have some of the best of brand

image. Their scale of operation is way larger than the Lush. This would mean that the company

can face some stiff challenge when these bigger brands launch similar products. Furthermore,

the brand exposure for Lush is extremely limited when it is compared to a major brand all

around the world[ CITATION Eur20 \l 1033 ].

  SWOT analysis

Strengths Opportunities

 Expertise  Extending the product mix

 Market Niche  Newer Markets

 Brand Equity

 Brand Positioning

 Brand Image
Weaknesses Threats

 Marketing expertise  Competition

 Short Product Mix  Lack of income

 Fall in demand.

Market segmentation, Targeting, and Positioning Strategies

This section would explain the details about the market segmentation, targeting and positioning

strategies. One of the brand prepositions of Lush is to provide handmade cosmetics products which are

free from chemicals and would always help to target the customers who have sensitive skin.

Furthermore, there are environmental aspects which Lush takes into account. This would mean that the

target market would include the people who are conscious about the environment. The packaging and

other features of the product is focused on catering to the demands of this market niche.

The psychographic segmentation has been used by the company in segmenting their products. This is

due to the fact that the attitudes of the customers would always be taken into account. The company is

offering products to the customers who are willing to pay the extra amount to ensure that they are

getting environmental friendly product. There is a clear focus on ensuring that the business would
provide the customers which are of the highest quality. This is the base of the branding strategy of the

company. The company is not going for expansive packaging or display of their products. The main focus

is a brand message which includes the fact that the goods which they are providing are free from

chemicals and are not harming the environment in any sense[ CITATION Ger13 \l 1033 ]. This is the basis

of the positioning strategy which has been used by the business to market its product. One of the

outstanding features of Lush stores is the fact that the store offers in house testing system. This is one of

the key ways the customers can feel the difference between their products. They can use the shampoos,

face wash, soaps and other products at the very moment and can find the difference between the

products. Furthermore, the product characteristic of handmade, chemical free, less strain on the

environment are some other features of the product which would differentiate the products from Lush

when compared to their rivals[ CITATION Smi101 \l 1033 ].

Product Strategy

The product in question is the bath bomb. This is an innovative product which was first introduced by

Lush. This is product which would be perishable. Thus there should be some features which would be

provided to ensure that it reaches the level of augmented product. The marketing methods and giving

the customers the live demonstrations has been an ideal way to ensure that the company is providing

the level of augmented product. The focus of the handmade, environmentally friendly, fair price to the

manufacturers clearly speaks volumes in ensuring that the augmented product level is reached.

The whole product mix without focusing only on the Bath bomb has been effectively designed for their

target market. The consumers who are conscious about the environment and would ensure that they

are not using chemicals. Nearly all their products meet those standards and ensure that the burden on

the environment is reduced. This is an ideal situation for the business to ensure that the product

strategy is enhanced[ CITATION Kot12 \l 1033 ].

The brand name of the product is actually an ideal considering the product which are being offered. The

meaning of Lush is referred to something which is exclusive and expensive. A type of product which can

be used to ensure that the product can only be for the selected individuals who have the means to

purchase them.

The product of bath bombs is still in the growth stage as the market exposure has been limited. There is

still a huge room for the company to grow.

Pricing Strategy

The company is charging premium pricing. This is due to the fact that the value which is being offered

with the products must be charged to the customers. The characteristic of handmade, less or no

chemicals is charged to the customers and ensured that the customers are happy to pay a higher

price[ CITATION Kot121 \l 1033 ].

Promotion Strategy

There is limited advertising as far as Lush is concerned. There is limited budget allocated for the business

as far as advertising is concerned. This is one area which is needed for the business to allocate more

funds. However, there is some sort of advertising in the social media. This is done to save the costs and

is then allocated for the business to ensure that costs are limited.

The main form of sales promotion is used which would promote the increase in the sales when the

customers arrive in the stores. The product bundle is used to ensure that the customers can increase

their amount of purchase which would eventually help in increasing the sales volume. The personal

selling is used to ensure that the customers are given the guidance and advice for the customers who

are then given the product[ CITATION Kot12 \l 1033 ].

Distribution Strategy

The company is not having stores in all major shopping malls in the United Arab Emirates. Their strong

focus is on reaching out to the customers with their existing sales force. The distribution is not extensive

is focused on the major areas. One of the main ways they reach out to the customers is through the e-

commerce. This is how the company is able to target its customers and increase its distribution network.

This is extremely cost effective and considering the situation due to the pandemic and the rising

influence of the internet and e-commerce this seems a pragmatic approach[ CITATION Kot12 \l 1033 ].

Social responsibility

There are several aspects which the company is targeting and is part of their long term strategy too. the

first one is the 100% fresh. This would mean that the company is always ensuring that the products are

offered fresh to the customers which would not harm them in any ways. The same can be said for the

case of ethical buying[ CITATION Ger13 \l 1033 ]. The suppliers are given the fair price and are always

given the right proportion for their product. The products do not have any burden on the environment

as there is no use of plastic or other materials for the packaging of their products[ CITATION Lus20 \l

1033 ].

Conclusion

Lush has been a huge success over the years. It market niche has been well served. It is an ideal example

of being sustainable and the ways it can use it to target the customers. Their approach has brought

some phenomenal success over the years. However, in competing with the bigger more established

brands there is a strong need for the company to ensure that they can expand with the right product

mix and grow accordingly[ CITATION Kri16 \l 1033 ].

References

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Gertner , M. I. (2013). The Value Chain and Value Creation. Advances In Management, 6(10), 1-4.
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Kotler, P., Keller, K. L., Hassan, S., Baalbaki, I., & Shamma, H. (2012). Marketing Mangement . Pearson.

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Lush. (2020, January 20). Products. Retrieved July 10, 2020, from Best Sellers:

https://mena.lush.com/products/bestsellers/boom

Smith, D. (2010). Exploring Innovation. Mcgraw-Hill.