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).
