Market Segmentation of Lakme and L’Oréal

Nowadays, the goal behind makeup is to embrace beauty and enhance natural facial features, it is a form of art and self-expression, and a way to use one’s creativity. One can choose to do a natural look that looks gorgeous in the Sun, or a colorful and eloquent eye look that will be the center of attention during a party. This is a huge market with numerous brands out there, however, there are two companies that particularly strike one’s eye. Those are L’oreal and Lakme. In the following blog, we will dive deeper into the market segmentation of these brands to better understand the story behind their success.

Let’s start the discussion by finding out the chosen segment that L’Oréal targets.

In order to do so, let’s watch the following commercial.

This video is advertising the ‘Matte Addiction’ collection of lipsticks of L’oreal Paris. It features a lot of well-known models such as Maria Borges, Alexina Graham, Barbara Palvin, and others. The video is sort of confusing at first, but a few seconds in we realize that we are in a runaway spot. And we see people with very different looks. The DJ’s station sort of acts as the colors that this lipstick offers.

And the models are wearing different colors as well, and as they are diverse, they give people an understanding of what color would look the best on their face. Then we see them outside, and hear the words “Make the world your runway”. Meaning that the message behind this product is to be confident not in just a small black room but also everywhere you go. 

Them being outside holds much more meaning than we can anticipate. It symbolizes freedom and independence in the big world. The deep care of looking great is another aspect that we got introduced to with this video. And lastly, even though they were simply modeling, the presence of the DJ kind of makes it obvious that these people like partying. With all of these hints in mind, we can surely guess that the segment that L’oreal has chosen to target is Carpe Diems.

What do we know about this segment?

Lifestyle and values:

This segment likes going out and being sociable. But they have it on a good balance with their professional lives. Money enables one to be free and enjoy life, and, of course, it can only be made possible with a good career. Even if it means sacrificing time with loved ones, Carpe Diems are all for it.

This segment stays up to date with the technological developments, and the internet accompanies that aspect.

Carpe Diems are adventure seekers, and risk-takers, which allows them to have an adventure-filled life.

They value their physical appearance, and how they contribute to it is they keep track of important trends and live a healthy lifestyle to stay fit.

Attitude to shopping:

Carpe Diems are pretty brand-oriented, they like quality products. Quality over quantity is their motto when it comes to shopping. Thus, they are willing to spend extra money on an exclusive item. They stay loyal to brands that they have previously tried and were satisfied with.

This segment likes to find enjoyment in shopping. Therefore, even everyday small purchases are well-thought and desired. And it is important that these people get the best deals out of their purchasing.

Interesting facts about Carpe Diems:

They

• Party a lot, spending time with friends in upscale and trendy places
• Love going to the cinema, exhibitions, museums, wine cellars, etc.
• Occasionally read books in their free time
• Are fond of exercising, go to the gym regularly
• Like playing games, mainly ones that involve cards
• Sometimes read the news regarding sports, cars, computers, movies, etc.
• Rarely watch the TV, but when they do, popular programs, such as sports programs and movies are their area of interest
• Frequently use the internet for purposes such as communications and entertainment
• Listen to the radio a bit more than the average person. It is important that what they listen to is programmed thoughtfully.

Positioning Plan of L’Oréal

People have the tendency to strive for perfection whether it is about their looks or personality. Thus, L’oreal gives that opportunity of making people feel more confident as it offers good quality products. Men and women around the globe can find their desired product from the variety that this company has to offer and refine their features.

L’Oréal knows that people are so distinctive and have various needs. Thus, it has three line products that target and satisfy most people. Those lines are consumer products, professional products, and luxury products. Accordingly targeting teenagers, and young women, professionals that work at beauty salons, and individuals that are looking for quality goods.

Now, time to get to the Marketing Mix of L’Oréal.

The Marketing Mix is a collective term used for describing a company’s product, price, place, and promotion. Another way to refer to this term is 4Ps, as the concepts all start with the letter P. We suggest looking through those points one by one.

Product:

L’oreal offers a wide range of products that come in different sizes and prices. This company provides its beauty products under four categories. Those are L’oreal Luxe, Consumer Products, Active Cosmetics, Professional Products, and the Body Shop.

Those categories include goods such as mascaras, nail polishes, foundations, cleansers, makeup brushes, shampoos, conditioners, serums, and so on.

Place:

As of now, L’oreal has grown to a point where it has a broad distribution network, available in 130 countries, in five out of the seven continents. This makes it possible for the company to have a strong market presence.

L’oreal products are sold at department stores, pharmacies, salons, cosmetics stores, different e-commerce websites, and even supermarkets.

Promotion:

L’oreal’s slogan is “Because we’re worth it”. Right off the bat, it is a very effective way to attract consumers. Added to it, well-known and inspiring beautiful women are often included in the advertisements of the company. Among those women are Jenifer Lopez, Naomi Watts, and others.

L’oreal also has Corporate Social Responsibility (CSR) projects that perform different social welfare activities, help women achieve their dreams, educating them with skilled training, and so on.

Price:

There are a few things that this company considers while deciding its pricing. Those are premium pricing, competition, geography, and product demand. Some of their products are pretty affordable that a consumer would need at a salon, for instance, and they even purchase it from there. But even if some products are slightly more pricey, people are still willing to pay for them due to the high quality, and reliability. As a result, this company is available to the mass market and earns a huge deal of profit.

Now, let’s talk about the segmentation strategy of Lakme.

Again, let’s first find out which segment this company has picked to target with the help of the following video.

The video is starring Megan Fox. We see her enter some hotel wearing a charming red dress. This is another lipstick commercial and it becomes apparent as she applies her lipstick in front of the mirror. Then we see Agnez Mo kind of panicked because she needs to go on stage but is not ready yet. And thus, Fox suggests helping with her makeup. Mo uses all Lakme products and finishes it off with red lipstick. Then, Fox offers to switch outfits, and Mo gets into that stunning red dress.

The optimism and calmness of Megan Fox to quickly get Mo ready are one hint. Then, the value of style and good-looking physical appearance is another thing. It makes it apparent that having a good style and looking presentable is an important aspect of this segment’s life. And thus, it is obvious that the segment that Lakme has chosen to target is Chardonnays.

Lifestyle and values:

This segment is positive and optimistic and loves to be out and about, hanging out with friends, living memorable moments.

Appearing attractive is a very important aspect of their lives. Having a good style easily contributes to it.

Chardonnays are spiritual, and they believe that there is something greater than us out there.

This segment likes to find information about different cultures and likes to stay up-to-date with the news that is going on around the world.

They aspire to have jobs that allow them to put their personalities to use. However, they are not smart with the money they make and tend to spend a lot of it, leaving them in a condition where they live paycheck to paycheck.

Attitude to shopping:

Chardonnays pay huge attention to shopping and following new trends. Like Carpe Diems, Chardonnays also like purchasing good quality products and paying extra money for them. It is better to own fewer products but have them be of high quality.

Chardonnays pay attention to the meaning behind advertisements, such as characters that they can look up to. Also, ads have to be made in an interesting and engaging way for this segment to even pay attention.

Interesting facts about Chardonnays:

They

• Like hobbies that reflect their personalities.
• Regularly attend the gym and exercise to stay in shape
• Are socially active and have great knowledge of how to have a good time
• Prefer living a nightlife
• Like spending their free time shopping because that activity makes them feel comfortable and confident
• Shop because it is rewarding
• Are modern and stay up-to-date with issues that matter for them, such as animal rights
• Are not environmentally friendly but like spending time out in nature
• Gift their weekends to family time
• Seek ‘perfect’ relationships and end up being disappointed when not achieving them
• Spend a huge portion of their days on the internet, sharing major events of their lives
• Use the TV more than the average person.

Positioning Plan of Lakme

Lakme also has a wide range of products. It offers goods regarding beauty, haircare, makeup, and skincare. It targets not only individuals but also professionals, as the latter need some of these products in salons.

This brand’s products are made for people that have enough money to be able to treat themselves. Such as upper and upper middle-class customers.

“Reinvent” is the tagline of the company and one can perceive it in different ways. One way to look at it is that the company wants to change the concept of beauty. We are so used to presenting ourselves like people that we are not, but how about finding ourselves within the concept of this brand? 

Moving on, let’s take a look at the Marketing Mix of Lakme.

Product:

The products that Lakme has to offer can be distributed into a few categories. Those are lookbooks, makeup, skincare, Lakme Salon, and runway menu. The latter is made for the service of premium customers.

Then there is also the Lakme Fashion Week Store for not only the gallery of previous shows but also ongoing trends and ways to contribute to looks. 

Place:

With the availability of more than 300 products, you can find Lakme in over 70 countries around the world. These products are available in all convenient places. You can purchase them in all kinds of stores counting convenience shops, retail outlets, hypermarkets, malls, and etc.

In today’s day and age, it is also important to offer a well-arranged website, which this company also has.

Promotion:

Lakme makes sure to include brand ambassadors in its advertisements to promote the company. Those ads are shown on TV, in magazines, newspapers, and etc.

This company does not stand back when it comes to spending money on advertisements.

Other than that, it also arranges Fashion Weeks twice a year to make the brand more well-known.

Lastly, Lakme helps train people to become professionals in the business.

Hence, Lakme has enabled a good relationship with consumers.

Price:

Lakme is an Indian brand, and its marketing strategies, the pricing included, make it one of the leading domestic brands in the world.

It has basic products with average pricing that most people can afford.

However, this brand has also come out with a collection that was meant to target working women, and thus, the pricing was a little higher than usual.

As this company is available in both urban and rural areas, the prices are set according to the region.

Let’s sum up this blog, shall we? So, we started out mentioning two massive cosmetics companies Loreal and Lakme. Then, we walked you through both of those brands’ segmentation and positioning strategies, and lastly, their marketing mixes. We hope you enjoyed diving deep into the success behind these companies, and for more blogs like this, be sure to check out our main website.