Lipsmacker to the Philippines
LANDSCAPE ASSESSMENT
Lipsmacker, an American lip balm brand, has massive business potential in the Philippines. It specializes on its special flavored lip balms ranging from a wide array of flavors such Strawberry Banana and M&M 's. The brand has an existing demand in the Philippine Market, as evidenced by online forum and blog site posts. Also, no Philippine cosmetic brand currently provides the same product offerings.
Catering to a niche tweenager market is not entirely new. Various brands ranging from shampoo to clothing lines (i.e. Palmolive Kids and Kids of Bayo) specifically catered to tweenagers have already dominated the market. This depicts high consumer acceptance for such market.
Also, the P16.8 billion in spending power of the Filipino tweenagers in 2007 (45.4% of P37 billion spending power combined with young children) according to Euromonitor.com supports the great potential of the market. Despite the optimism of the financial projection, the effect of the downturn in the economy may have a bigger impact on consumer spending power for this group. Also, tweenagers do not have full control of their purchase decisions, as they are still under the control of their parents. Moreover, LipSmacker foresees a number of indirect competitors such as Avon, Careline by Ever Bilena and Fashion 21 Cosmetics, as well as second-tier competitions such as Vaseline, Blistex and Chapstick as its threats.
SEGMENTATION
Marketing Segmentation is necessary for Lipsmacker to identify and eventually service its target market. The three bases used are the following: demographic segmentation, geographic segmentation as well as psychographic segmentation
Under demographic segmentation, the variables considered are age and socio-economic class. Age is carefully identified because cosmetics are generally age-specific. For example, Revlon’s age-defying scientific formulation is for older women, while Maybelline’s cosmetic line is targeted to hip and young
Lipsmacker, an American lip balm brand, has massive business potential in the Philippines. It specializes on its special flavored lip balms ranging from a wide array of flavors such Strawberry Banana and M&M 's. The brand has an existing demand in the Philippine Market, as evidenced by online forum and blog site posts. Also, no Philippine cosmetic brand currently provides the same product offerings.
Catering to a niche tweenager market is not entirely new. Various brands ranging from shampoo to clothing lines (i.e. Palmolive Kids and Kids of Bayo) specifically catered to tweenagers have already dominated the market. This depicts high consumer acceptance for such market.
Also, the P16.8 billion in spending power of the Filipino tweenagers in 2007 (45.4% of P37 billion spending power combined with young children) according to Euromonitor.com supports the great potential of the market. Despite the optimism of the financial projection, the effect of the downturn in the economy may have a bigger impact on consumer spending power for this group. Also, tweenagers do not have full control of their purchase decisions, as they are still under the control of their parents. Moreover, LipSmacker foresees a number of indirect competitors such as Avon, Careline by Ever Bilena and Fashion 21 Cosmetics, as well as second-tier competitions such as Vaseline, Blistex and Chapstick as its threats.
SEGMENTATION
Marketing Segmentation is necessary for Lipsmacker to identify and eventually service its target market. The three bases used are the following: demographic segmentation, geographic segmentation as well as psychographic segmentation
Under demographic segmentation, the variables considered are age and socio-economic class. Age is carefully identified because cosmetics are generally age-specific. For example, Revlon’s age-defying scientific formulation is for older women, while Maybelline’s cosmetic line is targeted to hip and young
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