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Cassie Peressini
Segmentation, Targeting, and Positioning
Absent- Monday 25 September 2017
Case Study:
Lush Segments the Market
Lush Cosmetics:
Strategy
o Lush has created an empire based off their niche of selling organic cosmetics along with
being socially responsible.
o Created a strong POD (Point of Difference) to differ them from competition.
o They use anti-animal testing as a brand performance association, along with going out of
the way to push their beliefs further; for example, Lush refuses to buy raw materials from
producers who test on animals, and ensures every supplier sign a contract promising there
will be zero tolerance towards animal cruelty.
o Use of a Brand Mantra, “Fresh Handmade Cosmetics,” which helps guide their marketing
efforts, and show the brand’s character. Each word having a specific reasoning behind,
Fresh acts as an emotional modifier portraying how the brand delivers is benefits,
Handmade acts as a descriptive modifier that further highlights the nature of the business
and lastly, the term cosmetics because it describes the brand function and the nature of
the products they produce.
Results
o Became one of the biggest purveyors of the beauty industry in 2017. The brand reported
$530 million dollars in sales solely in North America in 2017 thus far.
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o Using social media as influx in popularity, they have gained four million followers on
Instagram alone. There has become a millennial phrase “If you did not Instagram your
bath bomb, you are doing it wrong”.
o They have become a successful presence in the American beauty retail landscape starting
in 2004.
Three Major Steps in Target Marketing
Market Segmentation
Lush Cosmetics co-founders, Mark Constanine and Liz Weir, created a company based
off their own beliefs. They were interested in making sure people had a way of getting products
that were fresh, and cruelty free. Which these morally right beliefs, were which pushed Lush
Cosmetics into the market. A company going out of its way to make sure every ingredient is pure
and known has made their popularity light up unlike the competition (Example: Bath and Body
Works).
Target Marketing
Their main target market is focused more towards the female population, shifting through
women aged 18-45, while still offering a select few items for men and children.
Market Positioning
What makes Lush position themselves different from the other brands is that they don’t
discriminate against any ethnicity. They create their products to treat conditions anywhere from
dry skin to damaged hair. Many beauty industries try to package their products in two different
types of hair, instead of what Lush does of suiting individual needs.
Geographic Segmentation
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They have formed an empire that is international, operating over 900 stores in 49
different countries. Mostly located in populated ‘hip’ cities, for example, New York City,
Brighton ect..., mostly in busy malls or high-priced destination sites. Helping grow their
revenues, they ship worldwide using their social media empire.
Demographic Segmentation
Females will always be more likely to cave into a beauty splurge, especially to go out to a
high-end retail store to shop. They use a very welcoming feel to each and every store to help
make themselves seem as a higher-class store. Family size, education level, occupation are all
aspects of their demographic that varies and tends not to matter. WordStream infers that, “A
substantial part of Lush’s target market is under the age of 30, as individuals in this age group
are significantly more likely to purchase goods from socially responsible brands."
Age and Life-Cycle Stage Segmentation
Anywhere from an older woman looking for anti-aging, to a young female who damaged
her hair to soon, or even a man looking to shave his beard they offer it all. They maintain a life
time consumer by keeping up with the special needs the individual wants whether it comes to
skin being dry over winter, to aging skin.
Gender Segmentation
Going past saying it’s a woman’s shop is an understatement. One of the biggest
foundations Lush donates to is the WEIF (Women’s Empowerment International Foundation),
which helps empower women and children though the hard ships in life, especially trying to
alleviate poverty. Creating a sustainable and positive future helping hunger in the disadvantaged
rural areas.
Income Segmentation
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Research on InfoScout shows that the average basket size on Lush Cosmetics is $38.70,
usually never buying more than one to two products at a time. The household income ranges all
over the place with not much of a specific income range due to some of their products being
pricey containing the better-quality ingredients, to some bath bombs being $5.
Psychographic Segmentation
They reach anywhere from middle to upper class reaching to anyone who cares what
ingredients, and conditions the company uses. Representing themselves as a non-chemical
healthy choice, even offering mostly vegan products. In fact, according to WordStream, 81
percent of the company’s products are vegan, as well as all being safe to use by vegetarians. The
website offers the consumer complete knowledge of the products they are choosing to buy.
