L'Oreal is a global cosmetics and beauty company that is known for its high-quality and innovative products. The company has a wide range of products, including skincare, haircare, makeup, and fragrances, that are targeted towards different segments of the market. In order to effectively market its products and reach its target customers, L'Oreal employs a strategy of segmentation, targeting, and positioning (STP).
Segmentation is the process of dividing the market into smaller, more homogeneous groups based on characteristics such as demographics, needs, and behaviors. L'Oreal uses several different types of segmentation to target its products, including geographic, demographic, and psychographic segmentation.
For example, L'Oreal may target its skincare products towards a younger, urban demographic, while its haircare products may be targeted towards a more mature, suburban demographic. In addition, the company may use psychographic segmentation to target its makeup products towards consumers who are more fashion-conscious and willing to pay for premium products.
Once L'Oreal has identified its target market, it can then use targeting to focus its marketing efforts on those specific segments. This involves developing marketing campaigns and messaging that resonates with the specific needs and desires of the target market.
For example, L'Oreal may develop a marketing campaign for its skincare products that emphasizes the benefits of natural ingredients and the importance of maintaining healthy skin. This campaign may be targeted towards a younger, urban demographic that is interested in natural and organic products.
Finally, positioning is the process of creating a unique and differentiated image for a product or brand in the minds of consumers. L'Oreal uses positioning to differentiate its products from those of its competitors and to create a specific image or identity in the market.
For example, L'Oreal may position its haircare products as being high-quality and luxury products, while positioning its makeup products as being more affordable and accessible to a wider range of consumers.
Overall, L'Oreal's strategy of segmentation, targeting, and positioning is essential to the success of the company's products in the cosmetics and beauty market. By carefully identifying and targeting specific segments of the market, and then positioning its products in a way that resonates with consumers, L'Oreal is able to effectively reach its target customers and drive sales.
~~~Marketing & Strategies~~~: Brand Positioning of L'Oreal
While it is primarily for economic reasons, the company treats winning more and more global consumers as a human adventure. MODULE IN MARKETING MANAGEMENT MMPMC 111 Entrepreneurship, Human Resources Development and Marketing School of Accountancy, Management, Computing and Information Studies Property of and for the exclusive use of SLU. STP is a critical strategy and planning tool, featured in our RACE Growth System. Demographic Segmentation — Example of Demographic Segmentation Demographic segmentation is dividing the mass market into smaller segments and groups based on gender, income, occupation, age, life cycle stage, ethnicity, religion, and generation. Product involvement The degree of personal relevance the product holds for the consumer. It all began with one of the first hair dyes that he formulated, manufactured and sold to Parisian hairdressers. For example Blackberry tried to position itself as a provider of high end corporate security.
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A strange but interesting example of religious demographics influencing marketing that you might not have guessed is that Going the extra mile with demographic research can lead to discovering new marketing opportunities and thinking outside the box. Apply marketing management concepts, principles, and theories in case analysis and to practical business decision-making situations. Psychographics This refers to 'personality and emotions' based on behavior, linked to purchase choices, including attitudes, lifestyle, hobbies, risk aversion, personality, and leadership traits. Some hobbies are large and well established, and thus relatively easy to target, such as the football fan example. What is Vertical Differentiation? After manufacturing the hair dye, he sold them to the hairdressers in Paris before deciding to register his company, Safe Hair Dye Company of France or the Société Française de Teintures Inoffensives pour Cheveux. Olay Hence this concludes the L'Oréal SWOT analysis. This campaign included women from different regions of different countries.
[2022] L'Oreal Marketing Segmentation Targeting Differentiation Positioning Solution
Though, Moshi Monsters, however, is targeted to parents with fun, safe and educational space for younger audiences. Behaviour Refers to the nature of the purchase, brand loyalty, usage level, benefits sought, distribution channels used, and reaction to marketing factors. Many marketing experts believe that behavior variables are a good starting point to build consumer segments. Secondly, if the cost of transportation is critical cost in the value proposition delivery then it is prudent to do geographic segmentation as the costs of serving customers in different locations will be completely different. Applying Segmentation, Targeting and Positioning to digital communications STP marketing is relevant to digital marketing too at a more tactical communications level. While demographics explain 'who' your buyer is, psychographics inform you 'why' your customer buys.
