Market Segmentation of Skin Care Products
The quest for beauty is an endless endeavour at all times. Despite the old saying cautioning us that beauty is only skin deep, billions of dollars is spent on skin care products every year for men and women, young and old alike. In this multi-million-dollar industry, every company tries hard to maximize their profit. One of the most common methods they apply is market segmentation.
As every customer has unique needs and expectations towards certain products, the ultimate goal of market segmentation is to organize customers into groups which allows targeting of customers with similar needs of and response to the products. The key is to minimize differentiation within each segment and …show more content…
CLEAN & CLEAR
Clean & Clear is a popular brand for skin care products among youngsters in Hong Kong. Its target group is the teenagers with lower purchasing power. The main focus of the product lines matches the needs of customers in their teens. Clean & Clear has developed a collection of products against acne, blackheads and clogged pores. Their pricing and promotion strategies are also consistent with their target group. Their products such as cleansers, moisturizers and toners are all less than a hundred dollars which fit the budget of teenagers. Their promotions also target the young. They usually invite young idols who are the opinion leaders of the teenagers such as Stephy Tang to be their spokespersons. Moreover, they have put great effort in educating the young of the importance of skin care such as through the skin care tips in their website. Such strategies help push the sales of Clean & Clear. In terms of selling locations, products of Clean & Clear are readily available in the supermarkets and convenient shops such as Mannings.
The skin care products from Olay covers the needs from a relative wide age group, targeting at women in their 20s to 50s. The fundamental belief of Olay is that “women looking good and feeling good are inseparable”. Based on this philosophy, Olay has developed various product lines to suit their needs. For example, the TOTAL EFFECTS is for business