Leader Pricing

 

L’occitane is an international retailer of body, face, and home products. In January, L’occitane Canada announced that if anyone became fan of L’occitane on their Facebook homepage, they would get a free hand cream. If the fan amount exceed 60,000, the hand cream would upgrade to 30 ML which was worth $12. Within a few days, their fans had quickly exceed 60,000.

In my opinion, L’occitane’s marketing strategy was smart. Firstly, they g

From:http://extremecouponingmom.ca/canadian-freebies-free-sample-of-loccitane-hand-cream/

ave free sample to customers. For those customers who never had used L’occitane’s product, the free sample could get them informed. For those who were aware of L’occitane, the free sample could remind consumer. Besides, when customers left their contact message as they picked up their free hand cream, customers could get more free sample, which further got customers experience their products. Giving free sample would indirectly increase the sales of L’occitane. In addition, collecting customers email addresses, L’occitane could email customers new products or promotion, which further getting awareness from customers.

Furthermore, L’occitane used leader pricing marketing strategy. When customers received the coupon from their email, it also came with a 15% discount coupon. Therefore, we they picked up their free hand cream in store, they would also used the 15% discount coupon to buy any other products.

 

Lush,Trust?

 

From:http://www.lushusa.com/Fresh-Ingredients/fresh-ings,en_US,pg.html

 

Recently, I read an article name” Labeling and Defining Ingredients” from Christine Liang’s blog which impressed me. The author criticize that Lush is playing around on its ingredients and labeling. For example, they have loosely define some toxin ingredients and make little on the health risk of consumers when using this product.

Lush is considered as a customers value orientated firm. It has define its brand as the fresh handmade cosmetics. Customers can find their fresh and nature cosmetics in Lush with the reasonable prices.

In order to the build their brand, Lush has emphasized that they used all the fresh ingredients, buying ethically, green clean and against animal testing. They also build “lushopedia” to explain all their ingredients.

Lush want to provide all the positive information to consumers in order to make consumers to buy their products, and they succeed. However, Lush do  neglect the negative information to consumers. For example, Lush simplify its packaging. For example, if you buy a soap from Lush, they just warp without giving any information about the product such as ingredients and usage, because they assume that staffs have explained or consumers can find what they need through their website or booklet. Even though, they did not provide any concern or risk of using their product.

On marketing aspect, we can fully understand that Lush do not want to lose its consumers  because of those tiny negative information. However, as a consumer, it is fair for us the get the information.

The brand is the equity of a firm. Once consumers cannot trust the brand, the firm will lose its equity. Currently, consumers are still trusting Lush; however, it will hard to predict when an accident appears. Therefore, we encourage Lush to provide more detail information for customers about its products.

 

References:

http://www.lush.ca/Our-Story/our-story,en_CA,pg.html