Segmentation: A global framework or a local necessity? Case study - L'Oreal

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Segmentation: A global framework or a local necessity? Case study - L'Oreal

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Abstract

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).

Tags: Case analysis of L'oreal framework, L'oreal model case study , L'oreal architecture case study, L'oreal application, Case study L'oreal paris

Benefits of Market Segmentation
Process segmentation of the market
Types of segmentation
Study case: L'Oréal
1. L'Oréal as a company
2. Organization
3. L'Oréal Global Presence
4. Focus on Select Global Players: the direct competitors of L'Oréal in the hair care industry
5. Products
6. Branding
7. Global Image
8. Sales Promotions
9. Segments Targeted
Conditioning cream, hair style
Pros and Cons of the segmentation strategy of L'Oréal

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[...] Aromatherapy Products Ltd. 25. Artav Australia (Australia) 26. Asam GmbH & Co., Betriebs KG. (Germany) 27. Ashwini Homeo & Ayruvedic Products Limited (India) 28. Astrid Cosmetics AS (Czech Republic) 29. Atlantic Grupa (Croatia) 30. Australian Bodycare Continental A/S (Denmark) 31. Aveda Corporation (USA) 32. Avon Products, Inc. (USA) 33. Aware Products, Inc. (USA) 34. Bacchara Cosmetics (Italy) 35. Back To Nature (USA) 36. Bajaj Consumer Care Ltd. (India) 37. Barbara Stein Srl (Italy) 38. Barry M cosmetics Ltd. 39. Barwa Sp. [...]

[...] This has led to a series of products aimed at key demographic groups -namely men, women and children -or else key hair types such as Afro or chemically treated and specific hair treatments. As the Russian economy stabilizes, hair care sales grow by 10% in the nation's US $15 billion personal care market. With a population of nearly 150 million people, Russia has become one of the world's burgeoning personal care markets. The market has huge potential to grow over the next decade as the nation's economy continues to stabilize and consumers are willing to spend more on cosmetics and toiletries. [...]

[...] We acquire only brands that are already global or can become global, or local brands that will be merged with existing global brands. There are no exceptions. Moreover, all of our brand strategies and product launches are conceived to be truly global. The brand strategy is absolutely identical everywhere in the world. It is a rule. And the products are created to be global, (which means) one name, one concept, one formula, one packaging and one communication worldwide." Global Image L'Oreal' is the leading cosmetic brand in the world, there is no doubt about that. [...]

[...] Global Cosmed SA (Poland) 177. Global Pollena SA Fabryka Chemii Gospodarczej (Poland) 178. Godrej Consumer Products Ltd. (India) 179. Goody Products, Inc. (USA) 180. Grazette Hair Collection AB (Sweden) 181. Grund Development Corporation (USA) 182. Guaber SpA (Italy) 183. Guerlain SA (France) 184. Guest Pak Pty., Ltd. (Australia) 185. Guest Supply, Inc. (USA) 186. Hampshire Cosmetics Ltd. 187. HAWAI Snc (Di Arduini Roberto & C.) (Italy) 188. Heinrich Hagner GmbH & Co. (Germany) 189. HELAN Srl (Italy) 190. Helmer Nilsson AB (Sweden) 191. [...]

[...] 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). A segment is defined as a group of customers who experience a similar problem and who react to market stimuli in the same way. Consumer behavior is often too complex to explain in one or two features, we must take into account various dimensions, based on the needs of consumers. [...]

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