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Consumer Behavior (Mkt530) Spring 2014
Due Date: 18 May 2014
Marks: 10 Marks
Learning Objectives: The basic objective of this assignment is making students familiar with
the concept of segmentation.
After attempting this assignment, the students will be able:
To comprehend the significance of segmentation.
To comprehend the practical implications of segmentation.
It is not possible for all companies to connect with all customers in large or diverse markets.
Companies can segregate such markets into cluster of consumers or segments with distinctive
needs and wants. Companies then require identifying which segments they can serve more
efficiently. Marketers need to completely understand each segment requirements and uniqueness;
such decisions require deep understanding of selected segments of consumers.
L’Oreal is famous for its beauty products in the world, its headquarter is located in Paris, France.
It has developed different cosmetic products such as hair color, skin care, sun protection,
makeup, perfume and hair care. This company is running in 103 countries with 18 brands
through two major divisions Cosmetic and dermatology. Further the cosmetic division has four
categories which are professional products, consumer’s products, luxury products and active
products. Like many other top companies L'Oreal did segmentation to cover its national as well
as international consumer markets. Instead of scattering marketing efforts L’Oreal marketers are
targeting those consumers where chances of satisfying them are high.
You are advised to read out the L’Oreal in detail on internet while attempting this assignment. It
will give you good idea about the product but do not copy any material from the websites.
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Product segmentation of L ‘Oreal
1. Professional Products
The Professional Products Division distributes its products in salons worldwide. Through its vast array of brands, the division can meet the needs of different hair care salons, for color, shape and styling, shampoos and general hair care needs. A privileged partner of hairdressers, this division offers them products made with the best technologies as well as high-level training, to ensure professional service
2. Consumer’s Products
The Consumer Products Division makes the best of cosmetic innovation available to the greatest number of people on every continent. Its brands are distributed in mass retailing channels – hypermarkets, supermarkets, drugstores and traditional stores. These brands offer a wide range of coloring products, hair care, makeup and skin care.
With 50 products sold every second worldwide, L'Oréal Paris offers from all continents male and female beauty products of all types (makeup, skin care, hair care, styling, hair color and men), from the excellence of its Research Laboratories. The worldwide success of legendary franchises such as Color Riche lipstick, Revitalift skin care, Elnett hairspray, Elsève hair care, Preference hair color or Men Expert Hydra Energetic skin care for men, reflect the brand’s unique expertise from the greatest beauty experts. Including Christophe Robin for hair color, Stéphane Lancien for hair care and styling, Joëlle Ciocco for skin care, Tom Bachik, manicurist to the stars, or Orrea Light, Color Designer.
L'Oréal Paris shares a unique vision of beauty, supported by 35 diverse international ambassadors, icons such as Jennifer Lopez, Beyoncé Knowles, Freida Pinto, Jane Fonda, Eva Longoria, Julianne Moore, Liya Kebede, Fan Bingbing or Hugh Laurie. The exceptional careers and charismatic personality of L’Oréal’s ambassadors resonate in the motto "Because you're worth it", a truly universal message of empowering beauty for the last 40 years. Each year, L'Oréal Paris magnifies its beauty ambassadors and worldwide celebrities from nearly 20 international red carpets, including the Cannes Film Festival, for which L’Oréal Paris has been the Official Makeup Artist for the last 17 years. The Film Festival provides the constantly renewed opportunity to highlight the superiority and expertise of its products accessible to
3. Luxury Products
L’Oréal Luxe opens a unique world of beauty Its international brands incarnate all the facets of elegance and refinement in three major specializations: skin care, make-up and perfume. L’Oréal Luxe products are available at department stores, cosmetics stores, travel retail, but also own-brand boutiques and dedicated e-commerce websites.
4. Active Products:
The Active Cosmetics Division brands meets a range of different skin care needs from normal to blemish-proned, in healthcare outlets worldwide, including, pharmacies, drugstores, and medi-spas. . Thanks to its highly complementary brands, developed and endorsed by health professionals - dermatologists, pediatricians, cosmetic doctors - the division is the world leader in dermocosmetics.
Loreal marketer are targeting the consumer where chances of satisfying them are high
Possible basis of Segmentation
The segmentation of consumer markets requires the creation of sub-groups from a larger population to more specifically target them. There are virtually dozens of ways that a market might be segmented and the segments chosen will depend on the business and the products or services it offers. Basically, segmentation is all about identifying specific groups of people based on common characteristics.
One common way of segmenting a market is through the use of demographics. Demographics are quantitative characteristics of a group of people. These characteristics might include sex, age, income or geography (where they live). Businesses that segment their market based on demographics are attempting to target specific market segments that are more likely to be interested in what they have to offer. The cosmetics industry, for example, primarily targets women. The hunting industry might be more likely to target men. Luxury car makers target their markets based on income. Marketers are likely to consider multiple demographic characteristics when segmenting their consumer markets.
Psychographics are qualitative attributes of a market and refer to the way people think and what they like to do. Psychographics is sometimes categorized with the acronym IAO which stands for Interests, Activities and Opinions. It can be difficult for marketers to segment their markets into these types of categories on their own. Nielsen is one organization that offers access to consumer lists based on their specific classifications. They have divided U.S. households into 66 distinct types or segments to help marketers focus on market segments based on psychographic characteristics. Psychographics are personal attributes related to personality, values, attitudes, interests, or lifestyles.
An important way for businesses to segment their consumer markets is through purchase behavior. Keeping good records of customers and their purchases, allows marketers to identify those who have purchased certain types of products or spent at certain levels and to then target them with similar offers. Marketers are also able to target customers of other businesses through by renting lists, which can be used in direct marketing efforts through traditional mail or, increasingly, online.
Pulling It Together
The more segments that marketers are able to identify and combine to specifically target groups of individuals most likely to be interested in what they have to offer, the more effective--and cost effective--their marketing efforts can be. Toward this end, businesses attempt to learn as much as they can about their customers--where they live, their age, their income levels, what they purchase, what their hobbies are and what their likes and dislikes are. This information can then be used to "clone" these customers by reaching out to non-customers who share similar traits and characteristics.
Please write above answer in your own words and dont copy and past, above the 90% perfect solution of the assignment,
Ahmed gud keep it up & thanks for sharing
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