Marketing and Picky Pat
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Group Assignment on Marketing Management
ESSAY ON KORRES NATURAL PRODUCTS CASE STUDY
1. How would you segment the cosmetics industry? What segment is Korres targeting?
Cosmetics are products which are used to enhance one’s appearance and odour. It is this human need to be liked and accepted by people around us that makes the cosmetics industry a truly universal market both in terms of influence and overall sales with only a few exceptions, mainly religious, cultural and belief based. In fact, the cosmetics industry is among the largest in the world with an annual turnover upwards of 17(0) billion dollars (Eurostaf – May 2007), whilst Worldwatch reports that worldwide annual expenditures for cosmetics total U.S. $18 billion; the estimate for annual expenditures required to eliminate hunger and malnutrition is $19 billion (National Geographic). The largest cosmetics markets are in Europe (Germany’s is third in the world, with France and Italy being major markets), after the United States and Japan, which hold the first and second places respectively. (Wikipedia, haha Guys can we have any citations for this?????). China, with disposable incomes on the rise, is the world’s eighth largest and Asia’s second largest cosmetics market (after Japan), according to the China Association of Fragrance, Flavor and Cosmetics Industry. From the top three largest markets we can adduce that the cosmetics market is more prominent in developed, industrialized and urban societies.
In Greece, much like any other developed country around the world (you think Greece is developed????), cosmetics are an every-day part of life and more of a necessity than a luxury. Cosmetics can vary from products as mundane and inexpensive as shampoo to expensive products such as designer perfumes. Aside from the functions or end use of these products other factors can and do play a crucial role in segmenting this vast market such as geography, demographics (age, sex, income etc.),
Group Assignment on Marketing Management
ESSAY ON KORRES NATURAL PRODUCTS CASE STUDY
1. How would you segment the cosmetics industry? What segment is Korres targeting?
Cosmetics are products which are used to enhance one’s appearance and odour. It is this human need to be liked and accepted by people around us that makes the cosmetics industry a truly universal market both in terms of influence and overall sales with only a few exceptions, mainly religious, cultural and belief based. In fact, the cosmetics industry is among the largest in the world with an annual turnover upwards of 17(0) billion dollars (Eurostaf – May 2007), whilst Worldwatch reports that worldwide annual expenditures for cosmetics total U.S. $18 billion; the estimate for annual expenditures required to eliminate hunger and malnutrition is $19 billion (National Geographic). The largest cosmetics markets are in Europe (Germany’s is third in the world, with France and Italy being major markets), after the United States and Japan, which hold the first and second places respectively. (Wikipedia, haha Guys can we have any citations for this?????). China, with disposable incomes on the rise, is the world’s eighth largest and Asia’s second largest cosmetics market (after Japan), according to the China Association of Fragrance, Flavor and Cosmetics Industry. From the top three largest markets we can adduce that the cosmetics market is more prominent in developed, industrialized and urban societies.
In Greece, much like any other developed country around the world (you think Greece is developed????), cosmetics are an every-day part of life and more of a necessity than a luxury. Cosmetics can vary from products as mundane and inexpensive as shampoo to expensive products such as designer perfumes. Aside from the functions or end use of these products other factors can and do play a crucial role in segmenting this vast market such as geography, demographics (age, sex, income etc.),