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L’Oréal improved market approaches with different concepts after it first entered India market. The reason for this move is that domestic brands in India market had already occupied large proportion of the masses’ market share. More importantly,  L’Oréal was unable to match the cheaper price offered by the present domestic brands, and also, the strong-sense and long-established customer loyalty makes it difficult for L’Oréal to pry the market share away. Thus, L’Oréal employed different segmentation so as to identify its target segments and capture different market share.Identified Targeted Segment-Who to Serve?        Income segmentation, as one of the Socioeconomic factors, helped L’Oréal identify their target. An improved income segmentation is to separate a brand-new segment from original two segments (the poorer and the rest): the quickly rising middle class. Apparently, this class, when compared to the original two segments, was fast growing in India, and the rising income represented the rising market potential because of their different mindsets when purchasing. For example, the poorer class honored more about low price, and they tended to switch among brand frequently. So, it is difficult for L’Oréal to get quick response from the market and maintain their customer loyalty. On the contrary, the rising middle class made great contribution to L’Oréal’s profitable sales in India market after the segmentation changed. Customers in this class, especially the young females, performed a huge purchasing power that the masses lacked and was receptive to buy more luxurious and expensive sub-brand products of L’Oréal which brings the company maximum profit. Excellence Crème-What to offer?        Excellence crème is a good example to prove segmentation in marketing helps identify what to offer to valued customers. Unlike the older predecessors, the women in young middle class were usually more well-educated. Their mindsets were different since they sought benefits such as healthy, natural and non-artificial products instead of using cheap products that may cause problems. By introducing Excellence crème, a hair dying product, L’Oréal made a promise to the targeted women customers that the products have additional benefits apart from just dying hair, like traditional herbs and plants ingredients, and even promised to strengthen the hair and repaired the cuticle problem because of long-term hair dying. Excellence crème was a ‘luxury purchase’ product. It is marketed as high-quality product made of both extensively developed ingredients and natural herbs like Hanna.        In order to pry more market share, L’Oréal cooperated with Ms. World to make an advertisement to show that the position of the product was not just basic hair care products, but one that made natural beauty with high quality.  Actually, with the promise of natural beauty and benefits, this advertisement pushed the brand image higher in the market.L’Oréal Versus Domestic Brands        On one hand, when compared to the domestic brand in India which placed themselves as cheaper and value-for-money products, L’Oréal fully understood the need of their valued customers and was able to offer the right products according to their customers’ needs and positive response. L’Oréal charged higher prices by using high quality ingredients and targeted the more educated and had more disposable income class to spend money in their pockets on luxury products, while some domestic brands used a ‘less for less’ concept to serve the lower-income masses that may need bare necessities.        On the other hand, L’Oréal performed better in captured customer loyalty. Domestic brands used deep-rooted brand familiarity as repeated in Indians generations, considering that would bring feelings of trust and reliability. In fact, thrifty housewives only care about cheap price, and when their children grew up, the translated loyalty to a brand and substantial profits would be continued to be used by them. However, L’Oréal had no traceable history in India market and could not try to establish familiarity in a short time period. Instead, L’Oréal attempted to capture customer loyalty of a new segment of the market. By promising higher and better quality products to the targeted rising middle class, it hoped the targeted segment would realize ‘more for more’-higher price for better quality so as to pry the loyalty form home brands to a new found L’Oréal.Future Marketing        Over time, L’Oréal’s performance has brought it profitable results, I think it is because of a shift in target of segmentation. So far, L’Oréal has performed differentiated strategy to focus on market segments, I think one segment can be taken into consideration: The Men. There is no doubt that in India, men’s purchasing power is greater than women’s, to some extents. If this segment can be identified and targeted successfully, L’Oréal could see a potential growth in its revenue in the future.        The booming beauty and personal care industry of men showed that L’Oréal could gain a larger market share in India. Since L’Oréal has already entered the skincare market, for example the Paris Men Expert, a catered product line for men would make targeted men customers feel more reliable identifying themselves and considering what they need. At the same time, L’Oréal should carve out a new brand perception by establishing a masculine brand rather than the feminine-oriented L’Oréal.        Also, a series of home care beauty products could be a new trend for the targeted customers. It is understandable for a consumer to cut down the expenditure on beauty and turn to DIY products. There might be a slight fall in profit for L’Oréal in India, because it has a large proportion of hair care product market share so far. So, instead of reacting this trend afterwards, L’Oréal should push out more DIY home beauty products to capture the new market trend from their targeted segment.                In conclusion, successful market strategies help L’Oréal reap not just profits, but also customer loyalty, trust and reputation. It is very important for being up to date with market trends and identify emerging market by changing targeted segment to get quick response from them. L’Oréal should know who its targeted customers are, what do they want and need, and identify the potential segments and market trends.L’OREAL INDIA TARGETS 15% GROWTH IN DOMESTIC COSMETICS MARKET (and its turnover in 2012 was Rs1,600 crore). (2013, November 25). India Business Insight, p. India Business Insight, Nov 25, 2013.L’Oréal to introduce new hair care range in India. (2016, June 17). World Market Intelligence News, p. World Market Intelligence News, Jun 17, 2016.

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