Pricing within UK Cosmetics

Pricing of a 100ml moisturiser

The body shop- £3.50 100ml

Lush - £4 100ml

Origins- £10 100ml

Molton brown – £10 100ml

Ren- £11 100ml

Aveda- £11 100ml

Neal’s yard remedies – £14.50 100ml

Dr hauschka- £15 100ml

The organic pharmacy- £38.95 100ml

Lumene £4 100ml

This indicates that Lumene will be in the mass market sector against Lush and The Body Shop. However Lumene will stand out due to its natural aspects and its unique european aesthetic.

Current Skincare Market

‘British consumers spend 43% more on health and beauty products than inhabitants of any other European Country.’ British top spenders, Clark online: 2011

This demonstrates the opportunities within the current UK market. Lumene as a company has already tackled some of there European countries, such as Norway and the Ukraine which almost suggests that they could have a market within the UK. However it is important to understand the UK market.

Natural Trend Moodboard

Perceptual Map

This perceptual map demonstrates the competition Lumene would have once entering the UK market. The map concentrates on UK brands which specialise in natural products and other well respected brands within the combined skincare and cosmetics market. There are both independent retailers such as Lush and The BodyShop and other brands sold in pharmacies, department stores and supermarkets. The closest competitors being Aveeno and Origins due to price ranges and natural aspects the brands share. Lumene sits comfortably being the top brand when natural ingredients is of concern within the mass market sector.

Successes in UK Market- Consideration of Current Practise

Why have Lumene gone into the US market, something similar needs to be produced for UK viability

What are the most typical characteristics of the UK cosmetics market?

Research has shown there is significant competition in the marketplace, and many well-known skincare and cosmetic giants have a strong foothold in their respective categories. Big brands are investing heavily in media visibility. On the other hand, the consumers are not very brand-loyal, and they are very interested in what is new in the category. British consumers are likely to switch brands based on new trends in the industry and expect manufacturers to provide claims regarding the effectiveness of their products. At the moment many consumers are also very interested in purchasing cosmetic products with natural ingredients. The natural ingredient trend is expected to continue and grow over the next few years.

In Finland Lumene has been the market leader in

cosmetics for a long time. In the United States Lumene

is a challenger. What are the competitive advantages

of the Lumene brand in the American market?

The competitive advantage of the Lumene products is the combination of advanced cosmetics technology and natural ingredients from arctic nature. When we asked CVS customers who use Lumene cosmetics what they consider the most unique quality of the Lumene cosmetics range, natural ingredients was the number one answer. The demand for cosmetic products containing natural ingredients is growing within the US marketplace, so Lumene is well positioned.

Why is Lumene a success in the US market?

A European brand that delivers department store quality at an affordable price. Last year we executed some very successful advertising campaigns together with

CVS and made strategic use of the Extra Care program. CVS’s Extra Care customer reward program is the only one of its kind in the USA. Some 65 million people receive information about special offers and Lumene products through the program.

Excellent Future Skin Care line

Revolutionary

Endless consumer reviews

The introduction of the Lumene brand on the US market has done exceptionally well through the sole quality and effectiveness of the products. The brands newly respected product range; Excellent Future Skin care has gained endless media attention in well respected American publications such as Vogue, People Style Watch and NewBeauty. Also, a knock-on effect online with countless bloggers spreading the word about Excellent Future’s successful products.

Raising Awareness by …

Educating the US consumer about the qualities and benefits of the arctic ingredients Lumene uses in their packages.

New product releases generate awareness and excitement used to promote the brand in the US market.

Also Lumene sponsors the 18th Annual Susan G. Komen Race for the Cure events in Boston. Lumene representatives solld gift bags featuring cosmetic and skincare samples for $5 at the Lumene booth.100% of the proceeds were donated to Susan G. Komen for the Cure. This links the brand to a positive message which creates honest and caring attributes consumers can relate to.

Target Consumer

Lumene wishes to address the wants and needs of women of all ages; it is a brand particularly designed for those who value beauty and inner well-being

USP

-A huge product range in both skincare and cosmetics with the combination of advanced cosmetics technology and natural ingredients from arctic nature.

-A European brand that delivers department store quality at an affordable price.

Viability for products doing well in the UK

US achievements

Excellent Future Skin Care line

Revolutionary

Endless consumer reviews

The introduction of the Lumene brand on the US market has done exceptionally well through the sole quality and effectiveness of the products. The brands newly respected product range; Excellent Future Skin care has gained endless media attention in well respected American publications such as Vogue, People Style Watch and NewBeauty. Also, a knock-on effect online with countless bloggers spreading the word about Excellent Future’s successful products.

Finnish Heritage- Design

Lumene’s origins are important to its branding due to its merged unique and respected heritage with the products. Finland has recently been given the title, World Design Capital 2012 due to its strong links with design and its design district. A district created to corral many of the rising fashion, furniture and graphic entrepreneurs.

An example of this design intigrated into the UK is the inginious temprary pop-up restaurant and exhibition called Hel yes! in East London The event brings some of Finland’s world renowned designers to produce the unique perspective which undoubtedly comes from an immersion in both cultures. The event is a great means of exporting Scandinavian Design to the UK which could be imitated by the Lumene brand.

‘Our products are a means of exporting Scandinavian Design.’ Maija Olkkonen-Seppo design manager Lumene Group.

Lumene can utilise these great connections with design and innovation within its marketing and promotion generating a well respected and cool image.

With the UK’s naïve perceptions and connections with the culture and the country itself, the Lumene brand could bring something exciting and new to the UK skincare and cosmetics industry.

Lumene POS