Strategic Branding assignment- Information

Brand Elements:-

It is clear that Lush has a strong sense of purpose, which is guided by its core
values of:
  “Naked – when it comes to packaging less is more”
 “100% Vegetarian – everything we make is 100% vegetarian”
 “Freshest Cosmetics – freshness is a philosophy we live and breathe”
 “Fighting Animal Testing – fighting animal testing for over 30 years”
 “Handmade – everything we do has a handmade touch”
 “Ethical Buying – our ingredients don’t cost the earth

Lush has passionately brought its brand to life both verbally and visually.
The brand communicates in an energetic, fun, friendly, conversational and
transparent manner. Lush’s logo is presented in bold, white capital letters
against a black backdrop. The bold title commands attention with its
capitalisation and gives off the impression of purity, cleanliness and freshness
with the white lettering. The black backdrop is simplistic and allows the white
lettering to appear uncluttered and stand out. Furthermore, the choice of a
white and black logo allows the colourful products to stand out against it on
the website, thereby directing the customer’s attention to the different product
categories and featuring stories. The logo visibly communicates the freshness
that the brand stands for.
Lush’s logo and tagline “fresh handmade cosmetics” is consistently included on
all product packaging and in-store design. This reinforces the fact that products
produced by Lush are fresh, 100% vegetarian, ethically bought and handmade.
Even the wooden furniture used in-store is handmade, clearly highlighting just
how deeply the concept ‘handmade’ is ingrained within the organisation.
Lush demonstrates its transparency by posting videos of the manufacturing
process of its products on its website. The brand also communicates where it
buys ingredients from, when and where the product was made, as well as who
made it, on its product packaging. This strengthens the notion that the brand is
trustworthy and that Lush really does produce “fresh handmade cosmetics”.
Lush creates a sensory, memorable experience for its customers from the very
moment before they set foot in a store. Customers are greeted with the
enticing scent of fresh Lush products; everything from bath bombs, to soaps to
shampoos; before they even enter the store. Then upon entering, customers
are warmly welcomed and asked if they can be helped. This is where the Lush
experience truly begins.

Customers are encouraged to try out products, in which samples of each

product are provided. Items are displayed in a manner that sort of resemble a
grocery store. This tactic adds to the overall sensory experience of the
customer, which gives the impression that everything is fresh and organic.
All products are displayed against the black store walls, which contain white
lettering describing the products on offer; ‘Bath Ballistics’, some of the causes
Lush stands for; ‘Fighting Animal Testing’, and some fun statements; ‘Love at
first Sniff’. The black, white and wooden store design, allow for the colourful
Lush products to stand out and is overall more visually stimulating.
I believe that the sensory experience Lush creates for its customers is what sets
it apart from its major competitor The Body Shop. Both brands sell products
that fall under the same categories and both pride themselves on sourcing
ingredients for their products ethically, however Lush seems to go that extra
step in involving its customers on a more personal level when they enter a
store. Furthermore, Lush creates buzz around its products from the
unconventional names selected, and the brand is continuously experimenting
with new ideas for new products, thereby keeping things exciting for the
customer.
Lush successfully communicates and actively involves its customers in the
brand values, which only enhances the overall lush experience. For instance,
Lush created a body lotion named the ‘Charity Pot’, whereby various causes
were displayed on the lid of the product. Whenever a person bought this
particular lotion, the customer got to choose a cause they wanted to support
and the proceeds were donated accordingly.
 Design:
- colors, shapes, sizes and aromas of the products, products could
sometimes be mistaken as edible (bread, stacks of fruit)
- names of products very unconventional “Buffy the backside slayer”
skinconditioner, “Demon in the Dark” soap,
- shaped like huge cakes / loaves of bread; priced by weight- self-
professed “cosmetics grocer”
- displays like a fruit stand, “I’ve always loved the way fruit and
vegetablesare displayed in a grocery store” – Constantine
- products sometimes start merely as words suggested by the
customer(swoosh, smitten)
- INSTORE DISPLAY: old fashioned grocer, beauty deli, product lists
onchalkboards (small corner store grocer feel)
- Mimics products of small independent retailers (craft sale)
- Producers name is on lush products: name as well their cartoon
face(homemade quality)- “walk around its remarkable stores th…..”
 Unique Brand Positioning
In an industry (cosmetics) marred with issues such as Animal Cruelty,
lack of transparency, use of preservatives, packaging waste and many other
Lush has created its point of distinction by producing hand-made products free
of animal testing, 100% vegetarian, and limiting their footprint by selling their
products unpackaged or in bio-degradable form while fulfilling consumers’
need for colour, innovation, freshness, natural ingredients and so on. To further
develop its initiatives, products are made and created in- house. Each product
has a sticker showcasing who made the product along with an expiration date.
Each product is made to order relaying the fact that consumers are getting the
freshest product possible. Products are tailored specifically to the consumer’s
interests.

LUSH has made a unique brand image among millions of fans by

appealing to members of the society through the various campaigns It has
initiated and supported over the years like Fighting Animal testing, trophy
campaigns, cleaning up plastic waste from the ocean and many other. Check
out one of the recent campaigns by LUSH for Trans Rights

Packaging is a central element of the Lush marketing mix. A unique, minimalist

jar design is used for the creams. The date of manufacture and the identity of
the person who made it are shown on the packaging. In addition to being a
differentiating element that proves the artisanal and fresh character of the
products, the label is almost a collector’s item because we want to know the
people behind the products.
The packaging is also a way to prove the commitment to nature. It is indeed
reduced to the maximum for the solid products, and for the creams, the jars
used are minimalist and reusable. A recycling program exists, which allows you
to get a free product if you bring back 5 empty jars.
 Environment and Social Responsibilities
Lush Cosmetics has become a global household name by blending cosmetics
with environmental concerns. As discussed before, the products are
environment‐friendly and vegan to remove packaging waste (most of their
products can be purchased that are not packaged, like bath bombs, shampoo
bars, and soaps). Also, ninety percent of the Lush packaging constitutes
recycled materials. For example, Lush fights for animal rights, demonstrated by
its sincere association with Sea Shepherd, which safeguards whales, seals and
other sea animals. Lush firmly believes in supporting organizations incapable of
obtaining financial aid. The social activities are categorized into three groups:
environmental preservation, animal rights and humanitarian. It prefers to
involve itself in the crucial activities of these organizations rather than donate
funds. There are charity officers and Green Helpers in the company's stores to
reinforce the values and principles of Lush. The Lush Prize explores and
recognizes alternative, sustainable, and humane ways. Through the ‘Charity
Pot’ program, Lush has donated a considerable amount to associations globally.
Additionally, employees are greatly inspired to participate in charity activities
with paid leave or hours and international employee volunteer travel to
countries like Mexico, Cambodia and Tanzania. From 2009 onwards, Lush's
steadfast focus was on regenerative components. After a few years, it charted
biodiversity locations (around 2016 and 2017), and currently, it has well‐
operational sourcing hubs in some continents. Additionally, it sought active
partnerships to support sourcing cosmetic ingredients that would minimize
deforestation or poaching activities. The company simultaneously followed the
vertical integration strategy (making raw materials, manufacturing, and also
selling through the company–owned retail outlets).10 To sum up, both
backward and forward integration has been practiced by Lush.
Discussion
The embeddedness of Corporate Social Responsibility (CSR) principles into the
brand's strategic identification is an aspect consumers deliberate on before
purchasing.17 Lush as a brand has been increasing because it has steadfastly
integrated ethical and CSR practices. Lush has become a successful winner after
incorporating all these dimensions into their brand reputation. The company's
value system thrives on using products that have not been tested on animals,
and even in the procurement from suppliers, the same persists. Lush's website
accentuates: "We are committed to becoming more sustainable the more we
grow, by using our buying power to drive positive change." 18 Consequently,
the conditioning of the values and sustainable practices also profoundly
influences the new employee onboarding dynamics. Hence, hiring employees
whose core values juxtapose with the company's values is a critical
consideration for Lush. When such motivated employees start working, it is
natural that they carry with them the aura of energy and creates a successful
in‐store experience along with social, sustainable ideologies. There are ethics
training sessions and people's impact on how life is conducted, as stated on the
website: "We believe in happy people making happy soap, putting our faces on
the products…” 19 Lush is famous for its natural handmade cosmetics
products. On the other hand, cosmetics company Lush is a zero‐packing
pioneer on the high street. Lush has been doing more than just simply trying to
sell more products; it has also been seeking to shape the lifestyles and
behaviors of consumers in ways that would both expand the business and
achieve sustainability goals.20
Lush's circular economy focuses on effective supply chain management from
zero waste policy and core ethical values. Lush imbibes the waste hierarchy
framework by reducing (the thickness of plastic bottles and unnecessary
packaging). Lush's launch and promotion of the naked or free package free
variety has been a massive endeavor in zero‐waste living and has far‐reaching
managerial implications in the packaging and sustainability arenas. The naked
products were manufactured to reduce water content. The shampoo bars of
Lush have saved around 20 million plastic bottles from being produced, which
implies more than 500 tons of plastic avoided. Furthermore, a new type of
marketing and positioning has emerged with the new retail branching of the
naked shops and the customer‐friendly Lush Lens App.20 The creation of
strong brands is imperative for social innovations. Sustainability is a vital
strategic component as they effectively garner organizational resources.21 Lush
abandoned traditional marketing strategies and did not spend on advertising
and sales promotions. Instead, it developed the narrative of sustainability
practices inside and outside the organization. It also identifies as a campaigning
company (anti‐fur trading, anti don't ask/don't tell, no animal testing). Today,
with numerous stores being set up, brand equity building and sustaining have
become a challenge to some proportions. The company has sought to resolve
this by including its stakeholders to create the image through fund generation
from the ‘Charity Pot’. It has pointed out the benefit of doing this as it gives the
leverage to Lush to address the local contextual and cultural activities to
generate like‐ minded, ethical consumers of those regions.22
Managerial Implications and lessons
The managerial implications of this case have far‐reaching implications— the
first implication is related to the impracticality of the sourcing operations of
Lush, especially in different parts of the globe. The focus on ethical buying by
the company has often imposed challenges because there are problems in
always following the standards and questions about travel activities. Though
the buyers build relations with those suppliers who share their same ethos
through meticulous research done on these suppliers by the company's ethical
buying team, limitations exist. It is always impossible to trace a local supplier,
and in such a case, traveling is required to identify other global suppliers. These
trips are expensive and involve the complete phases of the raw material
transformation from planting to harvesting. "Through these visits, our buyers
build close relationships with growers and producers while helping to maintain
sustainable practices and fair conditions for workers." (Elisia Gray, Buyer at
Lush Cosmetics, Australia and New Zealand).23
The inevitable question arises whether it is a viable and sustainable model in
the long term as the company expands and spreads its wings. Backward
integration should be started incrementally to alleviate the risks of controlling
foreign suppliers. Moreover, the rigid sustainability standards and, to some
extent, self‐imposed regulations have positioned the product towards a
differentiated focus brand that serves a niche customer group. The second
managerial implication revolves around the company staff's travel activities.
Lush's travel programs across the globe are austere and stringently managed.
The program involves a no‐fly policy for door‐to‐door journeys under eight
hours, restricted taxi travel and a monitoring company travel team that
conforms to all bookings following sustainable regulations. Previously, Lush
imposed an internal carbon tax on flights. Though the company is exploring
new technology and trying to minimize the need for travel, more practical
solutions must be identified. Lush strategy Lead for Earth care Ruth Andrade
had summed up aptly: "We really don't think like a corporate. We think like
activists most of the time." Herein lie the contradictions and bottlenecks
because to adhere to sustainability standards, such rigid internal practices can
only partially sustain. With such an extensive network of stores worldwide,
stopping travel becomes implausible, and on the other hand, decarbonizing the
transport sector is only partially possible.24 The third managerial implication
demonstrates Lush's transparent activist image that sometimes exhibits its
impulsive actions. For instance, the controversial campaign states that “police
are paid to lie.”25 The firm was generating awareness of the undercover
policing scandal. The stickers adorned the chain of outlets: “Police have crossed
the line,” and the press release said the activists had been spied on for taking
an approach. Interestingly, the transparency factor was demonstrated
internally when workers complained in the factory in Sydney, Australia.
Complaints related to physical injuries, breathing issues and heavy lifting
activities with suitable or personal protective equipment. The workers also
complained about sexual harassment and bullying incidents.26 The key
takeaway for the company from this serious incident is to consider how to
prioritize the employee factor not only in select stores of the home country but
consistently across the stores established in other countries. The final
managerial implication implies the company's exit from social media. Lush's
sudden exit from social media whimsically highlights a different narrative
altogether, and the risk may have cascading results in the coming years.
Understandably, Lush announced that it was going to deactivate its Instagram,
Facebook, Tiktok and Snapchat account to take a call about the adverse effects
of the mental health of social media despite losing a substantial amount of
money.27 The exit from the social media platforms has been rightly described
by Annabelle Baker, brand and marketing director "People can see why we
came off now." It was the foresight of the marketing and branding decision‐
makers of Lush to discern that the operations of the social media platforms
were not feasible. Lush’s strategies after the exit sent a message to the
sustainable firms to reach prospective customers and even the loyal ones
through less tried options. Furthermore, it was found that there was reduced
engagement and people's visits to the brand on social media. Now that the
decision was appropriate considering the collapse of Twitter, Meta and even
the vigilance on the data policies of their platforms. Nevertheless, the decision‐
timing could have been more beneficial, and the marketing output dropped
drastically. To overcome this challenge, Lush launched Bathe, a self‐care app, a
solution to the social media platform and has been conducting experiential
events from October 2022 to the first half of 2023. Additionally, it chose to
create its presence on Pinterest and Youtube.28
Conclusion
Today, in case discussions of sustainability, the natural, green company is being
used to highlight a critical reality – that ethical, sustainable practices and
profitability can be balanced successfully. Corporate transparency is a reality in
the context of the triple bottom line (TBL), and consumers today are more
aware of sustainability and understand the impact of buying and using
products that have harmful effects 29 Consumers prefer to buy those cosmetics
that do not violate their sense of moral right and wrong. Covid‐19 has been a
game changer in this buying behavior because it stimulated the customer's
preference for safe and healthy ingredients. and a broader leaning towards
sustainability with value and purpose over profits.30,31 There are myriad
challenges for a cosmetic company like Lush because the production
requirements are stringent, sustainability standards and stakeholder
expectations are high. These dimensions have to be balanced with the strategic
goals and business models. Lush is a synergic and transparent combination of
business insights and underprivileged human groups ‐ that inextricably
created an unmatched global supply chain framework.
Brand as an image in consumers' minds – Individuals do not react to reality, but
to their perception of reality (Boulding, 1956). Martineau (1959) defines brands
as mental images of functional and psychological attributes held by consumers.
Imagery. Brand meaning also encompasses brand imagery, which is concerned
with the product’s or service’s extrinsic properties, such as the ways in which
the brand attempts to address customers' more abstract psychological or social
needs (Keller, 2001b)
It is crucial to create brand salience with customers in order to achieve the
desired brand identity, explains Keller (2001b). Brand salience is concerned
with various aspects of brand awareness, including the speed and ease with
which the brand is evoked in various situations, the ease and extent with which
the brand is recalled or recognized, the types of cues required, and the
persuasiveness of this brand awareness.
Brand Meaning. Keller (2001b) explains that to give a brand meaning, it is
essential to develop a brand image and establish what the brand should stand
for in the minds of customers. The associations that give brands their meaning
are frequently classified as either functional, performance-related, or abstract,
imagery-related; and they can be formed directly from the consumer’s own
experiences and contact with the brand, or some other source of information
(e.g., word of mouth).
Performance. As the heart of brand equity, the product has the greatest
influence on what consumers experience, hear about, and learn about the
brand from the firm (Keller, 2001b). Brand performance refers to how a
product or service attempts to satisfy a consumer’s more functional needs. It is
the brand's inherent properties, including inherent product or service
characteristics.
Brand resonance, which refers to the nature of a customer’s relationship with a
brand and whether they feel aligned with it, is defined by the depth of the
psychological bond that customers have with the brand as well as the amount
of activity generated by this loyalty.
Lush, founded in 1995 by Mark Constantine and his wife Mo Constantine, has
grown to become one of the world's leading cosmetics brands, with a presence
in 52 countries and over 951 stores worldwide selling a range of products
including bath bombs, bubble bars, soaps, scrubs, shampoos, conditioners, face
cleansers, and masks. As such, Lush finds itself competing with established
cosmetics brands such as L'Oreal and Garnier; however, brands such as Rituals,
The Body Shop, and Origins compete with Lush on a more direct level, as they
not only sell similar natural and vegan products, but also share similar
communication styles and values.
Lush's marketing strategy has relied heavily on consumer-based brand equity.
Keller’s 2001 brand equity model emphasizes the importance of brand
awareness and brand image, recognizing that the strongest brands are those to
which consumers develop such a strong attachment that they actively seek
opportunities to interact with the brand and share their experiences with
others in the community. Likewise, Lush has developed strong brand equity
through its products and positioning, attracting and retaining customers
through a positive brand image. Never losing sight of its original mission of
producing fresh, organic, and handmade products, the brand has always been
vocal against animal testing and has only ever used ingredients sourced from
companies with similar principles. Lush has also coordinated a number of
ethical campaigns for animal and environmental rights over the years, winning
numerous awards, including the 2013 Sunday Times Best Companies Award for
caring about and protecting the environment. Ultimately, the brand's ethics,
transparency, and organic range also foster consumer trust, despite the existing
marketing resistance associated with a lack of trust in "organic" and "natural"
labels in the cosmetics industry
Described by its customers as green and fresh, Lush products are 100%
vegetarian and primarily made of vegetables and fruits such as coconut,
papaya, rosemary oil, avocado butter, vanilla beans, and grapefruit juice. Often,
certain products will contain additional ingredients such as beeswax, honey,
eggs, milk, and lanolin. Lush's extensive product portfolio is divided into seven
categories: hair, face, body, shower, bath, makeup, and fragrances; some of the
brand's best-selling products include the Scrubee body butter, the Angels on
Bare Skin face and body cleanser, the Honey I Washed My Hair shampoo bar,
and the Cup O’ Coffee face and body mask.
These products are sold worldwide through the brand's retail stores and official
website, which serve as the primary outlets for sales and promotional
activities. However, customers do have alternative shopping options, including
purchasing products online and picking them up in-store, as well as same-day
delivery. Additionally, the brand offers a variety of services on its website,
including virtual consultations where customers can receive personalized
advice, a subscription option for regular deliveries of their favorite products,
and even an afterpay option that allows customers to shop and pay later.
The brand sells 35% of its products unpackaged or "naked", including solid
shampoo bars, conditioners, soaps, scrubs, massage bars, and bath oils, as
these products are formulated with little to no water and therefore do not
require synthetic preservatives. For products that do require packaging, Lush
manufactures pots, bottles, and lids entirely from post-consumer recycled
plastic recovered through its recycling programs, significantly reducing costs.
Customers who bring five empty black or clear pots to any store will also
receive a complimentary fresh face mask as part of the pot return program. By
keeping packaging costs to a minimum, Lush is able to maintain reasonable
prices; however, all of the brand's products are handmade and made with
natural ingredients, which increases costs. As a result, Lush has adopted a price
premium strategy, focusing on environmentally conscious middle to upper class
women from urban areas who are willing to pay a premium for organic and
vegetarian products.
As an exceptional case within the industry, Lush is one of the few cosmetics
companies in the market that does not believe in advertising - as previously
defined by Kotler and Armstrong as any paid form of nonpersonal presentation
and promotion of ideas, goods, or services by an identified sponsor. In fact, the
brand has adopted a global “no-advertising spend” policy since its inception,
resulting in a zero-euro external advertising budget; instead, its advertising
strategy is internal, relying on brand advocates, in-store staff, user-generated
content, and cultural authenticity to build loyal audiences. Natasha Ritz, Lush
UK’s Brand Communications Manager, stated in a podcast interview that the
brand does not advertise above or below the line, no money is spent on
television campaigns or celebrity endorsements, and social media posts are not
promoted (Watkins et al., 2020), implying that everything the brand does is
organic, as there is no budget to push behind it. The strategy of the brand is
rather heavily reliant on in-store marketing and word of mouth from its loyal
customer base.
What differentiates Lush retail stores from others is the way the brand’s
products are displayed, as well as the way the store fosters an environment
that encourages customer interaction. Lush stores use a variety of colors, emit
strong scents that can be detected from a distance, and invite customers to
pick up, smell, and touch the products. Demonstrations are also an integral
part of the shopping experience, with staff using large sinks to showcase the
brand's famous bath bombs.
Lush’s marketing strategy has been consistent with its existing no-advertising
spend policy; the brand recruits "Lush Personalities" and empowered
employees to act as its spokespeople; it maintains active relationships with
influencers who write blogs or do product reviews; and it has several popular
social media accounts run by dedicated brand advocates. Ritz explains that by
leveraging the creative content created by customers with the brand's
products, collaborating with influencers, and using organic reach, organic
engagement, and organic public relations strategies, the brand manages to
build great longterm relationships with fantastic content that is authentic and
comes from a truly transparent place; this also allows the brand to focus on
more important investments, such as the ingredients, the supply chain, and
where the ingredients are sourced from.
Sabine Schwirtz, Community Manager at Lush Cosmetics North America, stated
that user-generated content provides insight into what customers desire to see,
highlighting that it is critical to listen to those needs and address them
(Macdonald, 2021)