L'Oreal Case Study

1) Using the full spectrum of segmentation variables, describe how L’Oréal has segmented the Indian market
From our understanding, L’Oréal made a statement for market “We don’t do poor products for poor people,”. L’Oréal reduce their price for hair dye, which is $2.70, and small shampoo packets below $1 in order to compete with local brands. So, L’Oréal had change their segmentation from upper class intourban middle-class. Previous reputation, L’Oréal had losses over 13 years in Indian market. L’Oréal determine that 60 million people who earn $270 per month. Therefore, L’Oréal have to reach this niche market in order to gain back sales.

2) What segment(s) is (are) L’Oréal now targeting? How is L’Oréal now positioning its products? How do these strategies differ from those employed by its competitors in India?
L’Oréal targeting the niche market, which is urban middle-class. L’Oréal reduce the price and offering the product that suitable to the urban middle-class market. L’Oréal advertise their hair care product, by using the billboard across India, where indian women tugging on her braid which is stretched across freeway overpasses and along length of the bus. It show the uniqueness of their products and creativity of advertising, in the same time meet the customer needs.
3) What role, if any, does social responsibility play in L’Oréal targeting strategy in India?
L’Oréal consider to reduce their price of some product that suitable to their new target market. Plus, L’Oréal would like to offer their cosmetic product to their new target market in order to fulfill their needs and wants.
4) Do you think that L’Oréal will accomplish its goals in India? Why or why not?
L’Oréal will able to accomplish their goal if they keep maintaining the price that suitable for urban middle-class income and also expand their target market to reach more segments in India market.
5) What segmentation, targeting and positioning recommendation would you make to L’Oréal for future marketing efforts in India?
In order to survive, L’Oréal need to identify the differentiation of each segments, accessible of the segments to buy L’Oréal product, offer unique products, and durability of product due to changes in economic.
L’Oréal need to build a product based on their target market, which need meet their needs and wants. L’Oréal also need to be more creative to promote their product that reach each segements.
L’Oréal needs to build or expand their outlet to reach the target market.
L’Oréal needs to understand the lifestyle each target market.