The paper “ Lush Cosmetic - Creating a Successful Business and Improving Its Viability in the Market Employing Media and Modern Communication Technologies" is a meaningful example of a case study on marketing. Lush is a cosmetic producing and marketing firm. The company’ s name resulted from a competition that took place fledgling firms’ first catalog and handmade newsletter. Deciding on Lush and Curiosity Mrs. Elizabeth Bennett and her team agreed on giving the firm the name. Lust has since then grew up to be an international company that believe is producing fresh, organic vegetables and fruit finest indispensable safe and oil synthetics.
Lush believes in inventing its own fragrances and product by making them fresh by hand by use of no or little packaging or preservative utilizing use of vegetable ingredients indicating the date they were manufactured. Lush believe in the voice of the customer and therefore produces good, quality and profitable products that makes its organic and fresh product have meanings running beyond marketing. Lush is therefore still running different factories globally making it stay friendly and accessible by hand-making fresh and organic products. The company progressively developed, and with time it bought back all the formulas and names from both Constantine and weir and Cosmetic to Go.
Lush has since then promoted cosmetic industry steps without avoiding taking environmental responsibility. Following three years of growth, the firm's first Spa Opened in London Kings Road and today, Lush have 650 stores with many factories in the above 40 countries globally. The firm has also employed over 6000 employees working the firm in selling soaps in its outlets. The firm pride is one that is original, dynamic and progressive (Bateman, 2002). New Consumer Product or ServiceLush products are categorized depending on its use; we have tooth tabs products, going son products, shower products, bathing products, face products, hair products, and perfumes. Issues Facing Consumers in Adopting this New Product or Service Supply and Demand IssuesSupply and demand law illustrates the connection that exists between demand, supply, and prices of firms new and existing products.
An increase in demand results in an increase in price. This relationship makes suppliers producing for such a market not only to stabilize product prices but also keep healthy demand levels for consumer products.
These variables affect consumer behavior since increase product price results to decrease for its demand (Bateman, 2002). Supply and demand are one of the issues that now days influence the adoption of new products in the market. This research study has started by laying out the requirements and necessities that Lush cosmetic needs for successful introductions and the operation of new products in the market. This involves the analysis of new product business development strategies and models.
Reliable and effective business development model comprises of ways in which the business operates, its foundations, its cost models, the value of new product development process, creation and production components, distribution mechanisms and activities, financial flows and exchange activities. They also include potential benefits descriptions and revenue sources for varied strategic business units (Bateman, 2002). The adoption of new products in the market depends largely on its supply and demand, for this to be successful a basic business model should be put in place by the firm. The lush cosmetic basic element model should enable the firm to have a revenue stream facilitating its survival and growth in the market.
In this case, a fundamental source should be consumers, advertisers, parent company products, e-commerce activities of the company operating new products and services as an extension of existing products and Services. Therefore Lush Strategic Business Supply and demand Model should be constructed in a manner that provides required revenue for its survival and growth (Bateman, 2002).