Market segmentation is a method to organise a group of consumers with similar product preferences and purchase behaviour to assist managers to dispose market heterogeneity, thus assign and use resources reasonably and efficiently on the homogeneous customers group (Smith, 1956). Therefore, market segmentation is an essential element in marketing strategy and have impact on the various aspects in organisations (Weinstein, 2004).
L’Oréal is the leader in the global cosmetic industry, the international products portfolio includes 32 global brands, including Lancôme, YSL, and Maybelline etc. (L’Oréal annual report, 2015).
In general, L’Oréal segments market according to four different aspects. Firstly, through segmenting the using object of products, it can be divided into two …show more content…
L’Oréal separate market through consumers’ age, sex, income and race. For example, in the sex segmentation, the company launched men’s grooming to attract and satisfy the male market (Passport, 2012). In terms of age and level of income, Helena Rubinstein, the skin care company in L’Oréal luxury products sector, serve the consumer group with high age and possess power of consumption strongly. However, the L’Oréal Paris and Maybelline are serve the young and fashion customer group with the certain expense ability (Passport, 2012). Similarly, the advantage of demographic segmentation is low cost and usability (Barry and Weinstein, 2009). The information about social demography could obtained from publications or customer-report in many markets. However, the predictive value of this segmentation is low relatively because the consumption pattern of different social hierarchy may quite similar or two different consumers with similar age, family structure, and income level, their purchase behaviour, personal preference and the response to the advertisement may exist differences (Plank,
L’Oréal is the leader in the global cosmetic industry, the international products portfolio includes 32 global brands, including Lancôme, YSL, and Maybelline etc. (L’Oréal annual report, 2015).
In general, L’Oréal segments market according to four different aspects. Firstly, through segmenting the using object of products, it can be divided into two …show more content…
L’Oréal separate market through consumers’ age, sex, income and race. For example, in the sex segmentation, the company launched men’s grooming to attract and satisfy the male market (Passport, 2012). In terms of age and level of income, Helena Rubinstein, the skin care company in L’Oréal luxury products sector, serve the consumer group with high age and possess power of consumption strongly. However, the L’Oréal Paris and Maybelline are serve the young and fashion customer group with the certain expense ability (Passport, 2012). Similarly, the advantage of demographic segmentation is low cost and usability (Barry and Weinstein, 2009). The information about social demography could obtained from publications or customer-report in many markets. However, the predictive value of this segmentation is low relatively because the consumption pattern of different social hierarchy may quite similar or two different consumers with similar age, family structure, and income level, their purchase behaviour, personal preference and the response to the advertisement may exist differences (Plank,