Annie ChanWinnie ChanMavis Wong

CleansersShavingSkincare Specific care

3 major steps in target marketing3 major steps in target marketing

Step 1: marketing segmentation

Step 2: target marketing

Step 3: market positioning

Market SegmentationMarket Segmentation

a) Geographic Segmentation

b) Demographic Segmentation

c) Psychographic Segmentation

d) Behavioral Segmentation

((a) Geographic Segmentationa) Geographic Segmentation

Same products as Paris

Different in: Promotion Advertising Sales effort

((b) Demographic Segmentationb) Demographic Segmentation

Age Segmentation 20-34 years old

Occupation Segmentation Office workers Professional

Reasons High purchasing power Care their appearance Willingness to accept new products

((c) Psychographic Segmentationc) Psychographic Segmentation

Lifestyle pursue pleasure

Personality concern their appearance

((d) Behavioral Segmentationd) Behavioral Segmentation

Benefit Sought Quality

Reason• Improvement of skin• Desire to have healthy skin

Service Reason

• Well-trained & knowledgeable salesman• After-sale service• Professional consultation

Target MarketingTarget Marketing

1) Evaluation of our market segment

2) Selection of target market segments

3) Our chosen market coverage strategy

(1)(1)Evaluation of our market Evaluation of our market segmentssegments

a) Segment size and growth

b) Segment structural attractiveness

c) Company objectives and resources

((a) Segment size and growtha) Segment size and growth

Short run Long run

Growth rateIncrease slowly Increase

steadily

Expected profitability

Low High

((b) Segment structural attractivenessb) Segment structural attractiveness

Effect of competitors low

Competitors’ images are not strong enough Competitors do not have heavy promotion on their

products in the market Example: FANCL House, The Body Shop

FANCL House Product

                                                                                                          

Effect of substitute product Price

large company for back up

Profit existence products in the market have loyal

customers

Effect of power of buyers and suppliers Buyers: weak

LANCOME for back up

Suppliers: weak Long term suppliers Good relationship with the suppliers Quality and quantity will not be easily affected Cost will not be easily affected

((c) Company objectives and resourcesc) Company objectives and resources

Company skills and resources Expert of skin care ‘Unlimited’ resources

Competitive advantages Well-known cosmetic company High quality services and products

(2) (2) Selection of our target segmentSelection of our target segment

All segments Right size and growth Attractive Qualified and sufficient resources will be

provided

Concentrated marketing A market-coverage strategy in which a firm

goes after a large share of one or a few segments or niches

(3) (3) Our chosen market-coverage Our chosen market-coverage strategystrategy

Reasons for choosing Reasons for choosing concentrated concentrated marketingmarketingProduct’s life-cycle stage

New product Practical

Get a foothold -> able to compete

Have a greater knowledge of consumer needs

Have improvement of our products in the future

Have potential market for our targeted segments -> further investment

Help to highlight our image

Positioning strategyPositioning strategy

1) Identification competitive advantages2) Choosing the right competitive

advantages3) Selecting an overall strategy4) Communicating and delivering the

chosen position

Identifying competitive advantagesIdentifying competitive advantages

Services differentiation After-sales service

Follow up cases Membership Promotion leaflet

Consultation provided by our salesmen

Personnel differentiation Salesmen

Male will be hired and trained as sales

Image differentiation Strong image

Choosing the right competitive Choosing the right competitive advantagesadvantagesServices differentiationPersonnel differentiation

Positioning StatementPositioning Statement

To busy modern men who need dedicated skin care, LANCOME HOMME is the new line of male cosmetics, that gives you personal attention and personalised treatments