Segmentation: a global framework or a local necessity? Study case of L'Oréal

Résumé du document

This case study analyzes L'Oreal segmentation in the worldwide markets of Hair Care Products. The specific product segments analyzed are shampoos and other hair care products (deep conditioner hair care, cream conditioner, conditioning cream for hairstyle etc.). The report provides separate comprehensive analytics for the US, Europe and Latin America, and the way to manage a segmentation strategy in a global market.

A market is composed of individuals and organizations with special needs, money to spend and the desire to spend it. However, in most markets, the needs and desires of buyers are not the same.
A company must increase its knowledge of the different markets in order to adapt its offer and its marketing strategy to the requirements of a particular market. How can the company adapt to such diversity? The segmentation takes as its starting point the recognition that the market is heterogeneous, and aims to divide into homogeneous groups or segments. Each of these segments can be chosen as a target of the company. Thus, the segmentation involves a process of differentiation of the requirements within a market.
But what does segmentation of the market mean?
Segmentation is the process of separating a market into groups of customers, prospects or buying situations such as that the members of each resulting group are more like the other members of that group than like members of other segments (Bonoma and Shapiro).

Extraits

[...] (Germany) 18. Allison A/S (Denmark) 19. Altermed Corp. A.S. (Czech Republic) 20. Alzo International, Inc. (USA) 21. Amway India Enterprises (India) 22. Anchor Health And Beauty Care Pvt., Ltd. (India) 23. Aries Cosmetic (Bulgaria) 24. Aromatherapy Products Ltd. 25. Artav Australia (Australia) 26. Asam GmbH & Co., Betriebs KG. (Germany) 27. [...]

[...] Curls & Shine: Now you don't have to run for cover at the first sigh of rain. With Garnier Fructis Curl & Shine, you can have shiny, frizzfree curls that are perfectly defined. Curl & Shine shampoo, Curl & Shine conditioner, leave-in conditioning cream. Long & Strong: reinforces hair, protecting it from split ends. Hair is 5x stronger with 80% less breakage. Long & Strong shampoo, Long & Strong conditioner, Long & Strong anti- split ends treatment. Body & Volume: contains weightless Volume Booster to give hair upto 70% more volume. [...]

[...] Dr. Fukuj Italia SNC (Italy) 131. Dr. Kurt Wolff Alcina Balance Cosmetics (Germany) 132. Dr. Miracle (USA) 133. Dr. Soleil -Produse Cosmetice (Romania) 134. Dramers SA (Poland) 135. Dresslier & Co., Pty., Ltd. (Australia) 136. Dudley Products, Inc. (USA) 137. EGO Pharmaceuticals Pty., Ltd. (Australia) 138. Elysee Cosmetiques (France) 139. [...]

[...] Borlind Gesellschaft Fur Kosmetische Erzeugnisse GmbH (Germany) 60. Boznar d.o.o. (Slovenia) 61. Brelil Srl (Italy) 62. Briseis SA (Spain) 63. Bristol-Myers Squibb Company (USA) 64. Broad Oak Toiletries Ltd. 65. Brulin Corporation (USA) 66. Budelpack Lièpvre SAS (France) 67. Bulgarska Roza AD (Bulgaria) 68. Buwier Ltd. 69. Callington Haven Pty., Ltd. (Australia) 70. Cameron Haircare & Beauty Products Ltd. [...]

[...] Any behavior begins with motivation; the reason (or pulse) is a necessity. One more ground in the mind of a person to trigger the behavior toward a goal is to seek for satisfaction. It is important that the need has to be stimulated to become a motive. Sometimes, a man has needs that are dormant; therefore, they do not trigger the behavior because they are not sufficiently intense, i.e. they have not been raised. The source can be internal (like hunger) or environmental (you see an advertisement for lunch). [...]