Market Segmentation And Marketing Strategy Essay example

764 Words Apr 7th, 2016 4 Pages
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 different categories, average consumer products and professional using products. The latter mainly refer to the products that used in the beauty salon and other professional management place (Passport, 2012). Meanwhile, L’Oréal divide the variety of cosmetics, such as make-up products, skin care, hair care, and hair colour, and subdivide according to cosmetic parts and colour. This kind of segmentation method meet the demand of consumers and allocate resources effectively.

Secondly, L’Oréal adopt geographic segmentation by the geographic environment factors. Different regions have different population destiny or climate (Ennis and Beane, 2007). The different dietary habit and climate have impact on…

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