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Prepared by:

Maggie
Vuncannon and
Savannah Hahn

LUSH
ENTERS
THAILAND

DREAMCREAM

April 28, 2015

page 2

Table of Contents
EXECUTIVE SUMMARY
ENVIRONMENTAL ANALYSIS

1
2-10

CULTURAL LANDSCAPE

10-19

PRODUCT ANALYSIS

19-24

DISTRIBUTION AND SALES CHANNEL

24-26

CREATIVE STRATEGY AND EXECUTION

26-32

REFERENCES

32-36

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Executive Summary
LUSH has taken the world by storm ever since its origin in the early 80s and then its first
international conquest in 1996. Fast forward a few decades and LUSH has proven its popularity,
versatility and staying power as it has expanded the brand to over 600 stores in 44 different countries.1
Based on a belief system of charity while remaining profitable, this company has caught the attention of
consumers falling into diverse target markets. LUSH offers organic and natural products free from
preservatives of any kind, while ensuring their ingredients and plants have backed cruelty free
production. Their strong ethics have created social media storms and a wide spread brand awareness,
translating across dozens of cultures and languages.
This popularity coincides with the booming attraction to Thailand. With breathtaking beaches,
out-of-this-world resorts and metropolitan city life, Thailand represents varying adaptations that LUSH
finds success in. When emerging amongst this new market, we have taken into careful consideration the
culture, currency, and cosmetic differences that exist and have found them to not prohibit the potential
of LUSH- but rather support it.
Introducing one of LUSHs most popular products, the Dream Cream, is going to be a very
exciting venture that promises satisfaction and profitability for all involved. Our research on the host
country has only confirmed our beliefs that with the use of Social Media marketing, LUSHS Dream
Cream is a source of untapped potential that will be flying off the shelves and the most sought out
beauty product of its time.

Economic Factors
1

Gaines, A. (n.d.). Lush. Retrieved April 19, 2015, from http://www.retail-

merchandiser.com/index.php/reports/retail-reports/58-lush

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With a growing modern economy, LUSHs Dream Cream will be a perfect product to bring to
the market of Thailand. With its fresh ingredients and ethically sound marketing approach, LUSH can
truly cater to the countrys continuously growing middle class, who are willing to spend money on more
luxury items such as the Dream Cream.2 Although Thailands political system faces instability, their
economic growth continues to move forward. According to Economist.com Thailands volatile politics
have not prevented it from transforming itself from an agricultural economy into a modern industrial
state. Throughout South-East Asia, Thailand is known as the only upper-middle-income country with a
GDP that is larger than Laos, Vietnam, Myanmar, and Cambodia combined. While the countrys GDP
seems impressive, Thailand faces the issue of a rapidly aging society. Economist.com provides the
statistic that in todays labor force only three out of ten Thais participate compared to 1970 when eight
out of ten were participating.3 In 2013, with a population totaling around 67.01 million the countrys
GDP at the time was found to be 387.3 billion in US dollars by the World Bank.4 The World Bank also
brings to light the bustling growth and urbanization of the country, particularly regarding the city of
Bangkok, which is the ninth largest population within East Asia.5 The urban growth of Thailand will
play a major role in our ability to market LUSH Cosmetics, starting with one of their most popular
2

Consumer Lifestyles in Thailand. (2014, June 1). Retrieved April 26, 2015, from

http://www.euromonitor.com/consumer-lifestyles-in-thailand/report
3

Explaining Thailand's volatile politics. (2014, December 2). Retrieved March 30, 2015, from

http://www.economist.com/blogs/graphicdetail/2015/01/graphics0?zid=306&ah=1b164dbd43b0cb27ba0d4c3b12a5e227
4

Thailand. (n.d.). Retrieved March 30, 2015, from http://data.worldbank.org/country/thailand

Urbanization in Thailand is dominated by the Bangkok urban area. (2015, January 26). Retrieved

March 30, 2015, from http://www.worldbank.org/en/news/feature/2015/01/26/urbanization-in-thailand-isdominated-by-the-bangkok-urban-area

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products the Dream Cream.6 The Economic Standing of Thailand is essential to the success of marketing
our product the population, and while the countrys economic growth has slowed down from its once 89% per year in the 1980s and 1990s to a now 1.5% in 2014, our ability to market the LUSH Cosmetics
Dream Cream will rest on the steady, growing urbanization and the tourism the country attracts. The
countrys ability to grow from a low-income economy to a now upper-income economy in such a short
amount of time shows the previous and potential for the steady growth of Thailands economy despite a
rocky political foundation.7 LUSH will have a good economic platform when transitioning into the
Thailand market, allowing for long-term success when selling Dream Cream in the country.
Demographic Factors
Demographically Thailand holds a wide variety of consumers and target markets, which allows
for LUSH to appeal to a multi-faceted population. Thailand is a predominantly Buddhist country with
the religion being practiced by 93.6% of the population, followed by 4.9% Muslim and 1.2% composed
of Christianity. Though English is a secondary language of the elite, Thai, accounts for 90.7% of the
spoken language amongst citizens, meaning that LUSH needs to take into account the language barriers
when marketing to consumers of Thai. The countrys population of 67,741,401 makes Thailand ranked
at 21 in order of populated countries worldwide. Roughly 50% of the population falls between the age
structure of 25-54 years old, and this large portion of the population will serve as our target audience for
the Dream Cream product as they are predominantly out of school and in the workforce, providing a
disposable income. Within this age bracket, males account for 15,685,882 of the population with the
6

Top 25 Best-Sellers. (n.d.). Retrieved March 30, 2015, from http://www.lushusa.com/Top-25-Best-

Sellers/top25bestsellers,en_US,sc.html
7

Thailand. (n.d.). Retrieved March 30, 2015, from

http://www.worldbank.org/en/country/thailand/overview#1

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remaining and slightly larger portion being composed of 16,097,245 females. LUSH offers a wide
variety of products that can serve men, women, and children however; they are predominantly marketed
towards the female beauty user. While we will carry over the approach of predominately marketing to
women in Thailand, we will make it known that the Dream Cream is a product that is beneficial to any
age or gender.8
Geographic Factors:
Thailand is country whose borders form the rough shape of an elephants head: the head and ears
forming from predominantly landlocked northern and eastern provinces while the formation of the trunk
extends down the Malaysian peninsula between the Andaman Sea and the Gulf of Thailand.9 With its
total area of 513,120 square kilometers it is composed of 510,890 square kilometers of land, with the
remaining 2,230 square kilometers resulting from bodies of water. Its neighboring countries include
Burma, Cambodia, Laos, and Malaysia but their highest bordering area is composed of 3,219 kilometers
of coastline.10 The climate experienced in Thailand is tropical with high heat and humidity and an
average annual temperate of 20 degrees Celsius, the climate of Thailand makes the ideal situation for
consumers to purchase the Dream Cream product, sunburns, chapped or dry skin caused by the climate
are the perfect call for the soothing sensation of Dream Cream. The seasons within Thailand can be
divided into three district time periods: the hot season from March to May, the cool season from
8

The World Factbook. (2014, June 20). Retrieved March 28, 2015, from

https://www.cia.gov/library/publications/the-world-factbook/geos/th.html
9

The geography of Thailand can be divided into four main regions. (n.d.). Retrieved March 30, 2015,

from http://www.tourismthailand.org/Thailand/geography
10

The World Factbook. (n.d.). Retrieved March 30, 2015, from

https://www.cia.gov/library/publications/the-world-factbook/geos/th.html

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November to February and the rainy season dominated by the southwest monsoon is from June to
October.11 Thailand is typically classified into four geographical regions for economic, social and
ecological purposes. Composing these four regions is: Central, Northern, Northeastern, and Southern.
The Central region is referred to as the rice bowl as it is the location of the most fertile area of the
country, which then leads into the Bangkok Metropolitan Region. Poorer soils and erratic rainfall are
characteristics of the northeastern region of Thailand, which accounts for roughly 1/3 of the total area
and population. Heavily forested and mountainous areas occupy the northern region, yet the forest
resources are declining in recent years as a result of over-cutting. The southern region and rubber
growing area has the highest level of rainfall and is affected by severe flooding, soil erosion and
deforestation.12 Within the central region resides the capital and highest populated city of Bangkok.
Bangkok boasts a modern, bustling city which luxury hotels, world-class spas and infamous shopping.
Travel & Leisure Magazine Survey ranked Bangkok the worlds #1 city in 2008 and 2010,13 and because
of this, LUSH Dream Cream will be perfectly suited in an area that is the harmonious blend of
cosmopolitan city and ancient pampering. Outside of the city, Thailand hosts several islands, which are
massive tourist attractions, especially Phuket and Ko Samui attracting millions of visitors each year,
these developed beach resorts pose untapped potential for LUSH Dream Cream.14
Educational Factors

11

The Weather in Thailand and Thailand climate. (n.d.). Retrieved March 30, 2015, from

http://www.tourismthailand.org/Thailand/weather
12

UN Thailand :: Geography. (n.d.). Retrieved March 30, 2015, from

http://un.or.th/thailand/geography.html
13

Bangkok. (n.d.). Retrieved March 30, 2015, from http://wikitravel.org/en/Bangkok

14

Thailand. (n.d.). Retrieved March 30, 2015, from http://wikitravel.org/en/Thailand

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20 million of the 63 million people in Thailand are students enrolled within early to higher
education.15 Education in Thailand is set in accordance with the National Education Act of 1999, and
being such it is divided into basic and higher education. Basic Education is composed of six years of
primary education followed by three years of lower secondary and finally three years of upper secondary
education. Within the upper secondary realm of education there is a further division of two parallel
tracks, which is either vocational or general/academic. Thailands 6-3-3 model is a result of their
constitution, which ensures citizens twelve years of free education, mandating at least nine years of
attendance. Governmental concern has been present as IQ scores of Thai youth fall below average when
being compared internationally.16 Reforms such as the creation of the Ministry of Education have been
instituted in an attempt to provide quality education in rural areas. Strong efforts are being made by the
Ministry of Education as well as the National Education Commission, to further push radical educational
reforms in order to allow Thailand to better keep up with the pace of change in the world. Since
December 1995 Thailand has strived to standardize the quality of education in all levels and types of
schools, as well as to build a society of all-round and balanced human development including
strengthening integrity, ethics, and desirable value.17 This awareness of morality is something that

15

Towards A Learning Society in Thailand. (n.d.). Retrieved March 30, 2015, from

http://www.bic.moe.go.th/th/images/stories/book/ed-eng-series/intro-ed08.pdf
16

Education System. (n.d.). Retrieved March 30, 2015, from

http://www.icde.org/projects/regulatory_frameworks_for_distance_education/country_profiles/thailand/
education_system/
17

Thailand. (2006). World Data on Education, 6, 1-41. Retrieved March 30, 2015, from

http://www.ibe.unesco.org/

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coincides with the LUSH Company who has made an effort to publicize that they believe in standing up
for animal rights, protecting the environment and supporting countless humanitarian causes.18
Political Factors
Thailands political state and the legal and regulatory factors the country has in place
regarding products are imperative to understand, in order to successfully enter the countrys product
market. What once was known as an absolute monarchy, Thailand has now adjusted there past political
system and introduced a constitutional monarchy, which acts as a parliamentary democratic government.
19

However, while the government of Thailand has undergone a series of reforms and coups since 1932

to create a solid foundation the political system remains rocky with issues arising between rural and
urban voters. According to Heritage.orgs 2015 Index of Economic Freedom, roughly 40% of the
population of Thailand is engaged in some form of Agriculture, while the countrys growing
manufacturing business attributes greatly to the economy. 20 Although the political system continues to
face instability, the democratic aspect of Thailands government allows for open markets which is
beneficial when bringing Dream Cream into the country, however, all foreign business must follow the
countrys Foreign Business Act, which regulates foreign business in three different categories. The
regulations of foreign business within Thailand makes it difficult for any business to obtain a foreign

18

Shop the LUSH Range. (n.d.). Retrieved March 30, 2015, from

http://www.lushusa.com/on/demandware.store/Sites-Lush-Site/en_US/AboutUs-OurStoryShow?cid=ethicalcampaigns-lp
19

Ammar, S. (2011). Thailand after 1997. Asian Economic Policy Review, 6(1), 68-85.

doi:10.1111/j.1748-3131.2011.01181.x
20

Thailand. (2015, January 1). Retrieved March 30, 2015, from

http://www.heritage.org/index/country/thailand

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business license, because of this issue, many businesses will then operate underneath a Thai company by
using work permits, according to Smuiforsale.com.21 While owning a foreign business license is not
imperative to marketing a product, as we can partner with Thai companies such as local resorts, in order
to operate the sale of Dream Cream, The Cosmetic Act requires that any importer of controlled
cosmetics must provide the name and location of the office and the place of manufacture or storage of
the cosmetics, the category, or kind of cosmetics to be imported, and the major components of the
cosmetics, for the protection of the countrys public health. 22 By having a solid understanding
regarding the ins and outs of Thailands political system and the legal and regulatory factors that play a
major role in regulating foreign businesses and imports within the country, then we can take an assured
approach at navigating Thailands market in introducing the LUSH product, Dream Cream.
Overview
When marketing a product and brand such as LUSH to the foreign country of Thailand, it is
important to research and understand the culture differences that may be present within the country.
These cultural differences are highly critical in fully understanding how to successfully market our
product to Thailand while maneuvering cultural barriers that may arise. The culture of a foreign country
is a representation of how consumers will feel about the LUSH product and influences the approach
taken to market to the consumers of Thailand.
Hofstedes Dimensions of Thailand

21

Starting a Business in Thailand | Foreign Business Law in Thailand - Thailand Proper. (n.d.).

Retrieved March 30, 2015, from http://www.samuiforsale.com/knowledge/thai-business-law.html


22

General Prohibitions and Restrictions. (n.d.). Retrieved March 30, 2015, from

http://www.customs.go.th/wps/wcm/connect/custen/traders and business/prohibited and restricted


items/general prohibitions and restrictions/generalprohibitionsandrestrictions

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Hofstedes cultural dimensions of Thailand portray the countrys cultural scores within six
different categories including power distance, individualism, masculinity, uncertainty avoidance, longterm orientation, and indulgence. Each of these segments allows a deeper understanding of the driving
forces behind Thailands culture which will helps us take a more detailed approach in marketing LUSHs
Dream Cream Product. This graph depicts Thailands scores with high ratings in power distance,
uncertainty avoidance, and indulgence and lower scores regarding individualism, masculinity, and longterm orientation. By using Hofstedes Dimensions of Thailand, it allows us to look at the deeper
meanings and differences found within the Thai culture so that we can better prepare our marketing
strategy of our LUSH product to suit the cultural needs of consumers in Thailand.

Individualistic Index
Thailands individualistic index showcases a low scoring of 20, which in turn represents Thailand
as a highly collectivist country. In a collectivist country the focus of self-image is placed more on the

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we than the I, Thai depict this thought process in how they portray loyalty to their in-group which
may consist of family or extended relationships. According to Geerthofstede.com Thais loyalty to their
in-group far outweigh societal regulations and that the Thai society fosters strong relationships where
everyone takes responsibility for fellow members of their group. Geerthofstede.com also brings to light
that the communication amongst Thais are very non-confrontational and often take offense in feeling
shamed in front of their group. In terms of taking LUSH business to Thailand it is vital to practice
business in a way that is catering to the collectivist index of Thai society by focusing on personal
relationships first and foremost, as well as, not openly discussing our business while first trying to
develop such relationships and having patience throughout the process. 23 LUSHs approach to selling
their product is very consultant-based and hands-on, which allows the company to truly cater to
Thailands values on relationships, as Retail-merchandiser.com puts it, its an approach designed to
ensure that customers get what they need as well as what they want. 24
Masculinity Index
Scoring 34 in the index for masculinity, Thailand is the lowest ranking Asian country with the
average being 53. Thailand is categorized as a feminine society meaning that the society as a whole is
not driven by competition and showcases less assertiveness. Typical masculine societies are often driven
by achievement and success, whereas, in a feminine society the importance is placed less on how well
you do, but rather liking what you do. 25 By understanding the feminine dimensions of Thai society, we
can play off of the important values that Thais hold of liking what one does in society, by showcasing
23

What about Thailand? (n.d.). Retrieved April 6, 2015, from http://geert-hofstede.com/thailand.html

24

Ellis, K. (n.d.). Lush. Retrieved April 26, 2015, from http://www.retail-

merchandiser.com/index.php/reports/retail-reports/94-lush-2
25

What about Thailand? (n.d.). Retrieved April 6, 2015, from http://geert-hofstede.com/thailand.html

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the LUSH companys similar values and by making note not to market the product by using
competitions in free giveaways through social media and other facets.
Power Distance Index
The power distance index is the societal dimension that depicts a countrys acceptance of
inequalities within society. Geert-hofstede.com defines it as the extent to which the less powerful
members of institutions and organizations within a country expect and accept that power is distributed
unequally. With a score of 64, Thailand rates just below the score of 71 that represents the average for
Asian countries, but Thailand still views inequality with acceptance regarding superiors with respect and
loyalty, creating a formal attitude towards managers.26 Understanding the power distance index of
Thailand helps us to better create a system focusing on the importance of managers to employers when
choosing staff for our marketing team within the country. This understanding also allows us to pair
LUSHs extensive values on acceptance, charity, and humanitarianism with that of the countrys
acceptance values.
Uncertainty Avoidance Index
Geert-hofstede.com explains this dimension as the extent to which members of a culture feel
threatened by ambiguous or unknown situations and have created beliefs and institutions that try to
avoid these. It is certain that the future brings with it uncertainty and Thailands score of 64 reflects the
countrys difficulty in accepting change and the preference to avoid uncertainty. The website also brings
to light that many rules and regulations have been put into place in order to cope with uncertainty, these
rules will be important to abide by when marketing our product not only legally but also in easing the

26

What about Thailand? (n.d.). Retrieved April 6, 2015, from http://geert-hofstede.com/thailand.html

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product into acceptance by consumers. 27 We will play off of the idea that LUSHs Dream Cream is
made of all natural, organic ingredients which depicts that the product is not necessarily a new invention
or product, but rather a new approach to the old ways of creating creams and moisturizing, bringing to
light that the origin of the cream comes from earth itself and old world practices in creation.
Long Term/Short Term Orientation Index
With a score of 32, Thailand is a society that functions in a more normative way. They focus on
long-term traditions and typical social norms rather than change regarding the future.28 By again
showcasing LUSHs value to use only organic ingredients in their products, our hope that Thai
consumers recognize that the Dream Cream product aims to take things back to the past and our roots of
using products that cling to the tradition of nature and health, rather than breaking away from longstanding traditions.
Indulgence Index
In relation to ones footprint in society, this index measures the will power people have in
controlling their indulgences such as desires and impulses. This stems from how the person was raised
initially. Thailands score of 45 rests somewhere in the middle meaning that roughly half of society
showcases indulgence while the other half showcase restraint. 29 By catering to those mainly in the
indulgence category, our hope is that our product will be viewed as desirable and with decent pricing we
can provide consumers who practice restraint an indulgence, luxury product that wont cost them a
fortune.
27
28

What about Thailand? (n.d.). Retrieved April 6, 2015, from http://geert-hofstede.com/thailand.html


What about Thailand? (n.d.). Retrieved April 6, 2015, from http://geert-

hofstede.com/thailand.html
29

What about Thailand? (n.d.). Retrieved April 6, 2015, from http://geert-hofstede.com/thailand.html

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Symbols, Icons, and Images


Thailand gets a great deal of its own culture from the influences of China, India, Cambodia and
the rest of Southeast Asia Influence.30 While public displays of affection are not common amongst older
generations, something that is customary is the wai. With the palms pressed together and a sight bow,
this greeting is a salutation upon greeting or leaving a
home, as well as a way to express gratitude and apology. 31
The arms have a mystical creature called a Garuda, which
is composed of a man and a bird. The Garuda is known as
the bearer of the god of bravery as well as a protective
spirit. He is dressed in gold and dawns jewelry such as
bracelets, armbands, a necklace, crown and a girdle or
loincloth. This showcases a sense of royalty and luxury,
which presents a correlation into the Thais appreciation of
finer things, which we can use as a marketing tactic.

The national flag was introduced in 1917 and is


tricolored, with horizontal stripes in red, white and
blue. The red is representative of a nation built on the
blood of their ancestors, spilled to protect their

30

Culture". Amazing Thailand. Tourist Authority of Thailand (TAT). Retrieved 13 Feb 2015.

31

Phya Anuman Rajadhon, Thai traditional salutation, Thai culture Series no. 14, The Fine Arts

Department, Bangkok, Thailand, 1963

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independence, the white stands for religious purity and the blue is representative of the monarchy. The
blue and white stripes were added to the flag during World War I.
The three national symbols of Thailand include the Thai elephants or Chang Thai, the
Rachapruek flower known as the piper tree, as well as the Sala Thai or Thai Pavilion. The elephants are
now endangered but the country is known as the kingdom of the elephant. When packaging our LUSH
product, the white elephant would be a popular symbol to include on the label as it was reserved for
royalty. Another option would be including the Ratchapruek Flower is a plant found all throughout Asia
and is bright thick clusters of yellow flowers. These flowers also are representative of Thai royalty.
Finally, the Sala Thai is an architectural symbol that represents the wisdom and skills of artisans. They
are found all through out Thailand, the wooden structure framed by a circle, serve as roadside shelters.32
High/Low Context
Thailands high context culture influences how the society functions in day-to-day business and
daily life. Due to Thailands emphasis on relationships, communication is often less verbal lacking
formal expression and more internal communication occurs such as inside jokes. Nonverbal
communication is also highly expressed through facial expressions, gestures, tone of voice, it is
important to be aware of these communication aspects in order to better read and understand the
receptivity and tone the person you are dealing business with. Thais also hold a strong sense of tradition
as a high-context culture and in order to deal business with the country one should see the importance of
their values and use them as stepping-stones to build the important long lasting relationships. As
foreigners we must be careful to prepare ourselves in how to communicate effectively with a high

32

The flag, the three national symbols, and the royal anthem of Thailand. (2014, September 30).

Retrieved April 6, 2015, from http://www.krabi.uk/flag-the-three-national-symbols/

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context culture and really focus on the relationship first and by paying attention to nonverbal cues. 33 It
will be important in understanding the Thai form of communication such as taking note of nonverbal
cues in order to better understand those we will be dealing with in order to bring the LUSH Dream
Cream product to the market, as well as, being able to read the receptivity of the product among
consumers.
Humanity and Nature
Thailands correlation to humanity and nature is often inspired by the religion that is the driving
force behind most of the countrys population. According to iorworld.com more than 90% of Thais are
Buddhist, which makes up the largest Buddhist population in the world. 34 In regards to humanity and
nature, this particular religion can be found in the fundamentals of the practice of Sila which are the
principle of equality, that all living entities are equal and the principle of reciprocity, to do unto others as
you would wish them to do unto you. 35 The values that LUSH strives to uphold as a company and in
their products will speak highly to these same values of the Thai community, which will prove to be a
strong factor in our marketing strategy.
Dimensions of Time

33

Jeffrey, M. (2007, September 22). High Context vs. Low Context Communication. Retrieved April 6,

2015, from http://mqjeffrey.hubpages.com/hub/High-Context-vs-Low-Context-Communication


34

Cultural Insights: Thailand. (n.d.). Retrieved April 7, 2015, from http://www.iorworld.com/thailand-

pages-559.php
35

Buddhism's core beliefs. (n.d.). Retrieved April 6, 2015, from

http://www.religioustolerance.org/buddhism1.htm

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As a polychromic society regarding time, Thailands outlook is often more geared towards
building personal relationships than keeping appointments strictly on time. 36 iorworld.com puts the Thai
outlook towards time in this way, time is intangible and plentiful. Priorities can easily be shifted.
Beginning and end times for social and business appointments are flexible.37 The Thai culture differs
from that of a monochromic society in which time is essentially money and it is not to be wasted, they
take leisure in forming relationships with those they are doing business with and that nothing is too
urgent that things cant be shifted around to better suit ones needs. This more relationship based
approach to time is one that we hope will help our marketing team build integral and positive
relationships while bringing our business to Thailand and hopefully make long-lasting connections for
further business opportunities down the road.
Consumer Dimensional Profile
Creating personal connections and relationships with the consumers of Thailand will be key
in successfully marketing our Dream Cream product to the foreign country. Due to the culture being
high-context nonverbal cues and long-standing traditions and customs are vital to understand our
consumers. Genuinely coming across friendly is a way to build the integral relationships needed and
understanding that relationships come before business is the main ingredient in building a marketing
strategy. Consumers of Thai value trust in group settings and value saving face, as they do not like to be

36

Intercultural competence as a key factor to success:Part 5: Monochronic and polychronic concepts of

time. (n.d.). Retrieved April 6, 2015, from http://www.persolog.de/web/de/aktuelles/newsletterarchiv/newsletter-international/mai-08-facing-the-challenge-of-constant-improvement/interculturalcompetence-as-a-key-factor-to-success/index.htm


37

Cultural Insights: Thailand. (n.d.). Retrieved April 6, 2015, from http://www.iorworld.com/thailand-

pages-559.php

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embarrassed. 38 By having a better understanding of the driving forces behind the Thai culture and
customs of their consumers we can really cater to their needs and desires as a country by creating a
marketing strategy that focuss on the importance of relationships, harmony with nature and humanity,
and long-standing traditions.

Description
After a competition in 1995 to rename a company, LUSH was born. Defined as fresh, green,
verdant and drunken women this new namesake came long after the business idea was born between
Mark Constantine and Liz Weir. Originating in the early 80s, they were the biggest supplier for The
Body Shop, and after a decade of filling their stores, they purchased the product formulas. This purchase
disallowed Mark and Liz from opening another brick and mortar' shop for at least five years, so as a
result Cosmetics-To-Go began, a mail order company. They invested all of their money in this new
venture and though it was successful 1the complications with this type of business led to it ultimately
being sold. The money from this sale, and established relationships with Mo Constantine, Helen
Ambrosen, Rowena Bird and Paul Greaves from Costmetics-To-Go, led to the origination of the
company that exists today.39
LUSH is an international success, but began in a little shop in Poole, where products were made
upstairs and sold downstairs. In 1996, the first international LUSH was opened in Vancouver, and in
2003 it was brought to San Francisco. We will continue this worldwide exposure by bringing LUSH
38

Cultural Insights: Thailand. (n.d.). Retrieved April 6, 2015, from http://www.iorworld.com/thailand-

pages-559.php
39

Our Story. (n.d.). Retrieved April 12, 2015, from

http://www.lushusa.com/on/demandware.store/Sites-Lush-Site/en_US/Home-Show

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Dream Cream to the untapped market within Thailand. Noted on the LUSH website as one of their
proudest achievements, the Dream Cream can help combat the suns drying effect on Thailand visitors
and locals skin. Olive oil, oat milk, lavender, chamomile and cocoa butter work together to aid dry,
cheapened and just sensitive skin. Like most of LUSHs products, this formula is 100% self-preserving
and there for has no synthetic preservatives. The oats combine with the water to form a soothing milk
with is a century old remedy used to calm skin. The added rose and lavender essential oils also work to
calm easily irritated skin in addition to providing a fresh and herbal aroma. 40
The Dream Cream is part of LUSHs products that try and uphold good value, as well as
maintain an honest meaning behind the words fresh and organic. LUSH uses only vegetarian
ingredients like fruit and vegetables. Additionally, the belief in buying ingredients only from companies
that do not support animal testing in anyway. With these moral stands also came the birth of their
Charity Pot. The Charity Pot program was born in 2007, and since then it has donated more than
$5,800,000 to over 600 grassroots charities in 35 countries. LUSHs green policy to protecting people,
animal and the planet rolls over to the way they package their Dream Cream product.41
Packaging
In regards to packaging, LUSH likes it naked. LUSH uses as little packaging as possible and
when possible offer their products with out any packaging at all. While their bath bombs, massage bars,
and solid shampoo can be sold this way the Dream Cream cannot. In Thailand the 8.4 ounce container
will maintain the integrity of conscious packaging, by being composed of recycled materials that can
40

Dream Cream Body Cream. (n.d.). Retrieved April 14, 2015, from http://www.lushusa.com/Dream-

Cream/00031,en_US,pd.html
41

Our Story. (n.d.). Retrieved April 12, 2015, from

http://www.lushusa.com/on/demandware.store/Sites-Lush-Site/en_US/Home-Show

DREAMCREAM

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then later be added to a


compost, or are biodegradable
or once again recyclable.
Consumers within Thailand
are having an increased
exposure to international
beauty trends from the Internet
and media outlets.42 LUSH has
a heavy web presence and therefor is likely to be recognizable or known amongst residents of Thailand,
even though they did not previously have access to LUSH products. It is important to capitalize off this
recognition and maintain original Dream Cream packaging in the standard 8.4-ounce containers. Thai
language is spoken across Thailand but many Thais also speak and understand English, though more so
in Bangkok and the major tourist areas.43 Because of this, we will include a translation of ingredients on
the packaging. The only size adjustment that will be made is for resorts or spas that will carry it within
their allotted rooms or shops for their consumers. In resort instances, we will produce the Dream Cream
in a travel size when purchased business to business in bulk.
Pricing
Consumers amongst Thailand are experiencing a rising sophistication through exposure to international
beauty trends via the internet. Brands that are foreign to Thailand, such as Tom Ford, are likely to enter
42

Beauty and Personal Care in Thailand. (2015, January 1). Retrieved April 13, 2015, from

http://www.euromonitor.com/beauty-and-personal-care-in-thailand/report
43

About Thailand. (n.d.). Retrieved April 14, 2015, from

http://www.tourismthailand.org/Thailand/language

DREAMCREAM

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into Thailand now, as the consumers are willing to explore higher priced and higher quality products.44
Shopping for beauty products is considered a national pastime in Bangkok, and many of their stores
carry the latest beauty products from all over the world. It is important to note that it is a prime time to
enter the Dream Cream into the market because the middle class has been on the rise and is expected to
steadily increase well into year 2018.45
Most comparable to LUSH, is Siam Botanicals which is already available and a native product of
Thailand. All of Siam products come from natural cold pressed oils, herbs, flowers and fruit extracts.
The ingredients are bottled in Thailand using recycled brown bottles or reusable plastic.46 For 3.17 fl
ounces of a balancing skin conditioner it costs 585 Thai Baht. One Thai Baht is the equivalent of .031
United States Dollar. The Dream Cream comes in an 8.4 ounce container and before taxes it would have
to be priced at 875.39 Thai Baht.47 Goods imported into Thailand are subject to a sales tax rate of 7%,
bringing our total price up to 937.67 Baht. 48 With this conversion being taken into consideration, the
44

Beauty and Personal Care in Thailand. (2015, January 1). Retrieved April 13, 2015, from

http://www.euromonitor.com/beauty-and-personal-care-in-thailand/report
45

E-Commerce [and Cosmetics in Thailand - Market brieffing. (2014, December 2). Retrieved

April 26, 2015, from http://www.slideshare.net/slnews/ecommerce-and-cosmetics-in-thailand-marketbrieffing


46

Balancing Skin Conditioner. (n.d.). Retrieved April 14, 2015, from

http://www.siambotanicals.com/shop/balancing-skin-conditioner/#prettyPhoto
47

XE Currency Converter. (n.d.). Retrieved April 12, 2015, from

http://www.xe.com/currencyconverter/
48

Import duty & taxes when importing into Thailand. (n.d.). Retrieved April 26, 2015, from

http://www.dutycalculator.com/country-guides/Import-duty-taxes-when-importing-into-Thailand/

DREAMCREAM

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Dream Cream comes out to be a little bit cheaper than the Siam skin conditioner, which shows that it
would be an attainable product in the Thai market.49
Standardization or Adaptation
In weighing the advantages and disadvantages against whether to have a standardization or
adaptation method when introducing the LUSH product to Thailand there seemed to be more favorable
outcomes for standardization. As previously noted, the Internet and media have made brand recognition
possible throughout Thailand. In changing anything about the Dream Cream, LUSH runs the risk of
compromising their organic and animal testing free products, because of this there should be no changes
made. The pricing proved to comparable to another high end Thai product and therefor does not need to
be determined by local conditions. If the price was not comparable then it would have been worth it to
implement adaptation pricing but it is not necessary in this case. When looking at the promotion efforts
of LUSH they focus on promoting their beliefs of ethical buying, handmade vegetarian products, ethical
buying, naked packaging and fighting against animal testing- all of these translate internationally and are
not cultural specific. As previously reported per the LUSH website, The Charity Pot program has
donated more than $5,800,000 to over 600 grassroots charities in 35 countries.50 In order to better
promote their product from within, LUSH should consider supporting a worthy charity that benefits
Thailand. By engaging in a local charity they are promoting their brand while giving back to the
marketplace they are emerging in. An example of a popular charity within Thailand that aligns and
promotes LUSHs beliefs is Greenpeace. Greenpeace works by exposing environmental threats and more
49

5 best Thai beauty brands in Bangkok - LifestyleAsia. (n.d.). Retrieved April 14, 2015, from

http://www.lifestyleasia.com/bk/en/wellness/beauty/feature/5-best-thai-beauty-brands-bangkok/
50

Our Story. (n.d.). Retrieved April 12, 2015, from

http://www.lushusa.com/on/demandware.store/Sites-Lush-Site/en_US/Home-Show

DREAMCREAM

April 28, 2015

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importantly promoting solutions. Greenpeace helps environmental issues such as water pollution
prevention, forest protection, as well as promoting sustainable development.51
Distribution & Sales Channel
According to Cosemeticsdesign-asia.com, the Thai skin care market will grow by 3 percent per
year CAGR through to 2017. This inevitably gives us an advantage moving forward in bringing the
Dream Cream product from Lush to the Thai market. The manufacturing process of LUSH is incredibly
important due to the fresh and all natural ingredients found within its products, for this very reason, the
approach to manufacturing flow and process is taken into great consideration. As Mark Wolverton the
president of LUSH North America puts it in the article titled LUSH, in an ideal world, the store orders
the product today, its produced today and tomorrow in the factories, its sent to the store the next day,
and the customer buys it and uses it a couple of days after that. 52 This is the idea that stems from the
companys bakery-style concept, where LUSH products are made based on demand. This same method
will be applied in the manufacturing process of the Dream Cream and bringing it to Thailand.
Communication will be key in making sure that supply and demand are being met and as more sales and
a higher demand is seen for the Dream Cream, we plan on introducing more LUSH products into the
line-up. The primary phase of manufacturing will be done at the closest manufacturing plant to Thailand
located in Singapore in order to achieve prime freshness of the Dream Cream product.53 While LUSH
strives to make products without preservatives by a dehydration process applied to their products to
51

Thailand's Best Charities and Foundations. (n.d.). Retrieved April 14, 2015, from http://bk.asia-

city.com/city-living/article/get-involved
52

Gaines, A. (n.d.). Lush. Retrieved April 19, 2015, from http://www.retail-

merchandiser.com/index.php/reports/retail-reports/58-lush
53

Let the #LushTime roll. (n.d.). Retrieved April 26, 2015, from https://www.lush.com

DREAMCREAM

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eliminate water in which bacteria can grow, however, due to the fact that the Dream Cream is a type of
moisturizer, the water must remain and so to compensate preservatives are added which is a benefit in
bringing the product internationally to Thailand to increase the shelf-life while still maintaining all the
fresh benefits the Dream Cream has to offer. 54
By entering into the realm of a joint venture the hope is to achieve optimal success in marketing
Dream Cream to Thailand. LUSH is generally operated as a franchise with over 600 stores in 44
different countries, but due to the business regulations in Thailand, we will enter into a joint venture
with popular resorts within urban city of Bangkok, as well as, on the islands which are popular tourist
attractions.55 Joint Venture will be the first approach in the introduction of the LUSH product to
Thailand by reaching consumers both locally and globally for those on vacation and living within the
country, when demand increases for Dream Cream and interest is spikes in the company our plan is to
introduce other high selling LUSH products. By allowing the product to infiltrate the Thai marketplace
in a more natural way, LUSH products will become a largely recognizable cosmetics brand within
Thailand that produces demand and sales for the company as a whole.
Creative Strategy
Target Market
LUSH carries a very diverse line of products that is geared towards women, men, children, and
going green enthusiasts. The most notable consideration when launching LUSH in a new market is
finding an area that values organic and natural products, environmental sustainability and social
54

Gaines, A. (n.d.). Lush. Retrieved April 19, 2015, from http://www.retail-

merchandiser.com/index.php/reports/retail-reports/58-lush
55

Gaines, A. (n.d.). Lush. Retrieved April 19, 2015, from http://www.retail-

merchandiser.com/index.php/reports/retail-reports/58-lush

DREAMCREAM

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page 26

responsibility. LUSH is infamous for having products that are vegan, vegetarian and not tested on
animals. We know Lush is marketable in Thailand because of the success of the native brand Siam
Botanicals- which, too, prides itself on its organic components. Specifically, with the Dream Cream, we
want to take all of these factors in to consideration while expanding the focus to also include the resort
businesses of Thailand. The calming blend of the Dream Cream is perfect to place within resorts for
guests suffering from sunburned and dried skin. While LUSH carries products to appeal to both men and
women of all age groups, based on a Mintel report, despite the variety it is no surprise that LUSH is
primarily targeting their products at women in the eighteen to forty-five age range. With the Dream
Cream being such a gender-neutral product, as opposed to their other beauty products like makeup, it
would be appealing to both men and women and would be marketed as such.56
Adaption Of Message
The foundation of LUSH is built on strong and unwavering morals. These principles are what
attract a large portion of LUSHs business and being such they will not be compromised in any way
when introduced into this new marketplace. From the beginning, LUSH has refused to test its cosmetics
on animals or buy raw materials from suppliers who tested on animals and this would have to be upheld
in Thailand as well.
Execution Style and Media Channels
Successfully introducing LUSHs Dream Cream to Thailand will take implicating several
different social media outlets to create a strong Internet presence. Currently, LUSH uses their Facebook

56

Innovative Marketing Strategies of Lush Fresh Handmade Cosmetics. (2007, January 1).

Retrieved April 19, 2015, from http://www.icmrindia.org/casestudies/catalogue/Marketing/Innovative


Marketing Strategies-Lush Fresh Handmade Cosmetics-Case Studies1.htm

DREAMCREAM

April 28, 2015

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pages to create dialogue with customers as well as collect photos and videos using their products. Harry
Blamire, head of brand communications was quoted saying,
What you get out of social media is equal to what you put into it and because our
business is built largely on word of mouth, and we dont use advertising, the use
of facebook and twitter has been vital to us. People in our industry who do not get
on board with social media are at serious risk of getting left behind.

The benefit of using social media is that it a free media outlet that can provide knowledge on the
company and its products. Based on the fact that much of LUSHs following is based on knowledge
consumers have on the company, it is absolutely vital to inform Thailand on who LUSH is and what
they stand for. This direct communication with consumers allows for instantaneous reviews and
feedback on products, which creates an open and trusting relationship between the brand and the buyers.
Customer forums are also used to encourage customers to share honest opinions about the company-both
good and bad.57
In a report from 2013 showing Thailands growth of social network usage, it was found that
Facebook has experienced a growth of 28%, twitter 54%, YouTube 125% and Instagram with the
biggest growth at 163%. With the largest amount of growth being on Instagram, featuring information,

57

LUSH Cosmetics gets the word out using social media. (2012, February 14). Retrieved April

21, 2015, from http://smbp.uwaterloo.ca/2012/02/lush-cosmetics-gets-the-word-out-using-social-media/

DREAMCREAM

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pictures and promotions for the Dream Cream would be hugely beneficial.58 Social Media outlets that
we would utilize most would be Instagram and Facebook. In 2012 and 2013, Bangkok was home to two
of the most 'Instagramed locations in the world and is the second ranked popular city on Instagram. It is
important to incorporate Facebook as well because over 25 million local fans are engaging with the top
20 brands on this network compared to only 1.5 million fans engaging with the same brands on Twitter.
Additionally, in terms of numbers of Facebook members, Bangkok remains one of the top cities in the
world. When looking at Southeast Asia as a whole, Thailand was the location whom residents spent the
most time on social media each day, with an average of 4 hours a day.59 The users in Thailand are
already committed to these social media sites, all that would be left to do is for LUSH to penetrate these
sites as well.
Advertising form (announcement, display, association transfer, lesson, drama, pure
entertainment, imagination, special effects)
One type of advertising for LUSH, a company that doesnt typically use advertising outside of
social media, is a lesson form. The main purpose of lesson form is to teach Thai people about the
principles that LUSH is built upon- statistics on animal testing and environmental impact on packaging.
A major form of advertising that is most familiar to LUSH and would be extremely helpful when
breaking into a new marketplace would be the use of testimonials or demonstrations. Creating Youtube

58

Thailand Now Has 18 Million Social Media Users (INFOGRAPHIC). (2013, May 13).

Retrieved April 21, 2015, from https://www.techinasia.com/thailand-18-million-social-media-users-in2013/


59

Kritsch, A. (2014, January 23). The State of Social Media in Thailand. Retrieved April 26,

2015, from http://blog.hootsuite.com/social-media-in-thailand/

DREAMCREAM

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videos to share online of consumers testing out the Dream Cream and reporting on their experience and
results would be an effective method of education and spreading brand awareness through word of
mouth. Testimonials stay true to the LUSH usage of direct feedback as well as consumer interaction.60
Value segments of consumers (strivers, devouts, altruists, intimates, fun seekers, creatives)
Altruist and Creative value segments are most align with those of LUSH, so they will be our
focus in marketing the Dream Cream. Altruists are interested in social issues and LUSH is known for
their efforts of social change towards a greener and cruelty-free product. Altruists who concern
themselves with the welfare of the environment would already have a knowledge base and reason for
supporting a company whose morals align with those of LUSH. Creatives are the secondary target
consumers as they have a strong interest in knowledge, education and technology. Lush wants to teach
their consumers about the benefits of using their products and encourage buyers to dig deeper into
learning about the social issues that are present in our world. Additionally they understand the
possibilities that exist with ever progressing technology, and their advertising mentality proves that.
Lastly, fun seekers are important to consider when considering value segments as we intend to introduce
our products amongst resort areas, which attract people who look for vacation, activities and
adventure.61
Global approach to marketing message (centralized, local, Regcal)

60

Mooij, M. (2013). <i>Global marketing and advertising: Understanding cultural paradoxes</i>

(Fourth ed.). Sage Publications.


61

Czinkota, M., & Ronkainen, I. (2013). International marketing (10th ed.). Mason, OH: South-

Western Cengage Learning.

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As maintaining the integrity behind LUSH is so important, the Dream Cream will be marketed
with a Regcal approach. Because the products are unanimous no matter which country they are in,
employing virtually the same campaign in both domestic and foreign markets should not be an issue.
However, campaigns that are successful in the United States may not translate the same in Thailand and
therefor it is important to consider the local adaptation. In maintaining a Regcal approach it will be
important to develop a close relationship with a Thai ad agency in order to avoid any international
marketing blunders through poor translation of campaigns. The basis of the advertising strategies can be
relayed to a Thai representative who will then make sure it is implemented and converted into a way that
is most suited for Thailand culture and population.62
Agency selection
BBDO is an advertising agency that would be a perfect fit for introducing Lush Dream Cream to
the Thailand market. With a branch in Bangkok but 15,000 employees spread across 81 countries they
have experience implementing products across a plethora of foreign markets. Their mantra is to help
their clients sell more through The Work- Work that changes consumer behavior, tells a brands story
across all channels and mediums and is an economic multiplier for their clients business. LUSH is huge
on telling their story and changing consumer behavior so this appears to be a perfect partnership.
Additionally, having longevity in relationships with worlds leading brands such as Campbells,
Starbucks, Johnson + Johnson and Visa, it is clear that they are a company who knows how to handle
large clients and get results. LUSH is best suited with an advertising agency that has the ability to tell a
story and get it to reach a wide audience, and BBDO is the agency to do that. It is important to note that

62

Mueller, B. (2011). <i>Dynamics of international advertising: Theoretical and practical

perspectives</i> (2nd ed.). New York: Peter Lang.

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they already have prior experience creating an ad highlighting a social issue: driving while tired that was
ranked as one of the forty-two Most Powerful Social And Environmental Ads That Will Change The
Way You Think by Demilked magazine.63

63

(n.d.).BBDO. Retrieved April 18, 2015, from http://www.bbdo.com/#!/page/59

DREAMCREAM

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