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Friday 19 September 2014

12. SEGMENTATION , TARGETING AND POSITIONING

L'OREAL'S 5 STEP APPROACH IN INDIA

Understand the needs of Indian Customers

Launch product ranges specific to their needs

Increase Distribution Channels

Effective Pricing Strategies

Reduce additional customer costs

L'Oreal caters to customers of all income levels and distribution channels.
Analyzing the Indian consumers L'Oreal has developed a dual price strategy. It has made its hair care range more affordable simultaneously the skin care segment continues to be a premium segment. The company provides affordable luxury to people who demand excellence. 


  SEGMENTATION 

The brand Matrix has two range of products targeted at two sets of customers. The core range (for mid income group people) and the exclusive range (for the higher income group people). This brand mainly focuses on Mass Segmentation through Target segmentation (or even niche segmentation). Its variety of products target different sects of people in different countries across the globe. The segmentation is based on geographic, demographic, psychographic and behavioral differentiation. The Matrix Biolage Deep smoothing Serum mainly segments the society by income group first, then the gender , and finally by quality of hair (sometimes even age).


TARGETING 

The Matrix Biolage Deep Smoothing Serum being an affordable product targets the beauty conscious female population of the society who spend most of their valuable time in the professional beauty salons. This product also targets working ladies who do not get enough time to take care of their hair. Matrix mainly launches products which give innovative solution to problems of the customers. Even the first shampoo plus oil product "Garnier Fructis" was launched by L'Oreal. Matrix is a product which has organic innovation.


POSITIONING 

The positioning of a product has great impact on the company as well as the brand itself. The positioning of my product (i.e. particularly in beauty salons) serves the purpose of attracting its target audience efficiently and effectively.Its impression in the minds of the customers matters a lot. The positioning of the different brands in L'Oreal are the following :
  •  Kérastase is positioned as an exclusive brand for the most demanding customers. 
  • The second most expensive brand is Redken. 
  • Third place is represented by the L'Oréal Professionnel brand. 
  • Fourth place belongs to Biolage product line, which, although a part of the portfolio of Matrix, has a different positioning than other products of this umbrella brand. 
  • The fifth place is represented by Matrix,which is an affordable brand for most hairdressing salons. 

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