L Oréal's Market Segmentation Strategy

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Aims
The question of the research is to judge L'Oréal’s market segmentation strategy is appropriate or not, and purpose is to investigate variables for L'Oréal’s market segmentation. L'Oréal as the largest cosmetics and beauty company in the world, has become the leader in the cosmetics industry which ranked the top one with brand value of $10,766,000,000 (Statistics Brain, 2016). It is significant to investigate how is its marketing strategy based on market segmentation analysis.
In this research, some data are needed to conduct collect and analyze. One the one hand, quantitative data such as customers’ purchase decision and brand choice of L'Oréal, as well as some basic information like age, gender, income, and occupation were all collected
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Since that time, market segmentation is considered as an important theory in marketing field and also in practices. There are some literatures focused on classifying segmentation variables into different types (Table 1). Wedel and Kamakura proposed ‘observable’ and ‘unobservable’ category, first category can be measured objectively measured and another one need for inference from available data (Deal, 1999). Kotler and Keller (2009) put forward traditional criteria of market segmentation is based on geographic, demographic, economic, sociological or psychographic, while behavioral type of segmentation is also applied and it refers to attitudes on benefits offered by certain products, conditions of procurement and…show more content…
(See Appendix-Table 2). For instance, one research from Montenegro and Sciascia (2011) examined customer loyalty as a variable influence market segmentation, defining four loyalty phases, cognitive loyalty, affective loyalty, conative loyalty and action loyalty according to Oliver (1999), and shows higher degree of brand loyalty could affect more repeated purchase, so market segmentation should be implemented connecting wish customer loyalty. Moreover, one research from Jeong, et al. (2011), the result shows that degree of technology acceptance is affected by respondents’ lifestyle, and future telecom services was recommended to offer additional technological features desired by different customer segments. This research investigated potential variables in the future, and lifestyle was translated into available information which could collected easily, it’s a good way to collect some variables. But, this research only discussed lifestyle variable, others were not

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