Marketing and Strategy Lush Company

Question: Discuss about theMarketing and Strategyfor Lush Company. Answer: Introduction Lush Company deals with fresh handmade cosmetics and includes the pricing policies based on the mission statement of the company. The company decides to introduce new products into the market for the Christmas festival. It introduces the autumn leaf bath bomb that increases the customer satisfaction. Discussion While launching the new product in the market, Lush Company implemented certain pricing strategies that helped them to increase the sales and gain more profit. The company takes the help of the price skimming strategy and sells the product to the customers at a higher price. In the opinion of Yan and Ke (2015), the skimming strategy is helpful in reaching the breakeven with lower number of sales. The customers of Lush consider that higher the price of the product, the higher is the quality. Therefore, setting the price at a higher price allows the company to establish a satisfaction within the customers. As per the information achieved from the companys website, it can be inferred that the company to promote the new product uses no promotion or loyalty program since according to them the product price is set at fair price ('Lush' Lushusa.com, 2016). However, Hollensen (2015) argued that to build a strong relation between the company and its potential customers, a loyalty card is needed to be created. Conclusion The pricing strategy that the company uses is based on the psychology of the customers. However, launching a new product in the market becomes more effective when the company uses the price penetration strategy and sells its products at a comparative lower price. The strategy helps the company to attract a number of customers to purchase the new product. References Hollensen, S., 2015.Marketing management: A relationship approach. Pearson Education. 'Lush' (Lushusa.com, 2016) https://www.lushusa.com/ accessed 5 November 2016 Yan, B. and Ke, C., 2015. Two strategies for dynamic perishable product pricing to consider in strategic consumer behaviour.International Journal of Production Research, pp.1-16.