Because You're Worth IT ...

Monday, May 2, 2011

Weel 13~ Segmenting and Target Markets

Like most businesses, L’Oreal has a segmented target market. It enables them to directly pinpoint consumers who will most likely buy their products; thereby establishing an effective marketing strategy and also increasing revenue. The company has a demographic and geographic segmentation for particular products. Their segmentation is based on a chosen demography and geography, which determines who fits best for different items.
L'Oreal's beauty products are mostly marketed to female consumer’s worldwide. However, target market is further divided according to age group. For instance the “Youth Code" is positioned to attract the younger adults, where as "Revita Lift" is marketed to the more mature adults; to the generation X to the baby-boomers. This strategy of producing a product line geared towards demographic is not only increasing sales turnover for L’Oreal, but it is also helping the company perform well against its competitors.
I believe it is very important to have a target market. It can either make or break a company. Certainly, it is essential to know who the profitable consumers are, as they will benefit from them the most. 
L’Oreal has a solid way of catering specific goods for certain people. When introducing new products, they greatly take consideration of the place and culture - key factors in achieving longevity success!
     However, although L'Oreal's current strategy is effective, the company can have a stronger position if it market to men and the gay community. This will not only increase sales but also, L'Oreal might enjoy comparative advantage in the competitive market of the beauty industry.

No comments:

Post a Comment