Market Segmentation PDF

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Summary

Market segmentation and targeting for make up products...

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MARKET SEGMENTATION & TARGETING CUSTOMER SEGMENTATION & TARGETING: Keeping in mind the nature of our product i.e. makeup products we will do customer segmentation on the basis of gender segmentation, income segmentation, geographical segmentation, psychographic segmentation, demographic segmentation, customer segmentation, behavioral segmentation and we will also discuss which segment we will be targeting.

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Gender Segmentation: As we all know that makeup is a very subjective thing and is not limited to any gender but major chunk of our customers are the female customers who become the end users. Male customers, drag queens, transgenders are among the occasional and need-based customers. Our main target will be on the female customers as majority of the beauty and makeup products are used by the female customers.

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Geographical Segmentation: Depending on the geographical factors, we can segment the customers on basis of provinces, big cities, others countries having different cultures. As we are initially launching our products in the big cities of Pakistan such as LAHORE, KARACHI, ISLAMABAD and internationally through our online eCommerce website so our main target would be to launch products that are modern and are up-to-date to the current fashion and trends.

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Income Segmentation: Segmentation on the basis of income is the most crucial and important segmentation among all. In most of the condition the income segmentation have three main groups i.e. high-income groups, mid or middle-income groups and low incomes groups.in our case we will be dealing with high-income groups and middle-income groups.as we will be launching two product lines. One is the expensive/high end product line and other one is the affordable mid-priced product line so we will be targeting the high-income and middleincome groups of the segmentation.

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Psychographic Segmentation: Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits. In this segmentation we will be targeting the high-class of the society through our range of high-end makeup products considering in mind their social-class, lifestyle and their psychology which leads to their inclusive shopping behavior.

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Demographic Segmentation: Demographic segmentation divides the market into smaller segments based on factors such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. In this particular segmentation, the segments that we are going to target will be religion, generation, occupation, income, gender. As we all know that Pakistan is a Muslim country and its religion is Islam so considering these facts, we are going to launch products that are made from HALAL and high-quality ingredients. And will also target high-income and middle-income groups as discussed above. Our products will not cater any specific generation but will be inclusive for all generations. 

Customer Segmentation:

The beauty product consumer audience can be segmented in terms of consumer typologies. Various type of customers includes Traditional consumer who is influenced by media in his\her purchase decision process but does not invest his\her own time in the pursuit of the latest trend, New entrant that begins to put on makeup when becoming an adult, starting from word of mouth, showing increasing curiosity towards these products and finally experimenting with them, Beauty addicted who is the “fashion victim” of cosmetic products and could be considered a lead user, in terms of understanding the use, positioning, and appeal of a new product, Beauty expert who is a professional makeup artist either because of his\her career or because of a strong passion in the industry. We will be targeting all these customers because as a brand our main focus is to have as many customers as possible to generate maximum revenue. All of the above segments will be the target market for our products.

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Behavioral Segmentation: Behavioral segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product. As the time is evolving there are some new trends in the customer’s behavior in the beauty industry i.e. Midorexia that are Middle-aged women acting younger than their age. This is a trend that requires cosmetic firms to be creative both in devising customer-specific products and advertise them effectively to their target audience, Asianification Selling in western markets products that are commonly used in Asia. As our product line is based in south-Asia therefore Asianification will be our main focus while selling our products nationally and internationally.

MARKET SEGMENTATION & TARGETING: Market segmentation for the cosmetic market can be by category, mode pf sale and by gender as well. 

Segmentation by category:

Segmentation of market can on be on the basis of skin and Sun Care, Hair Care, Deodorants, Makeup and Color, Fragrances. The segment that we are going to target will be beauty and makeup products. Our main products will be makeup products. 

Segmentation by mode of sale:

market can be segmented into two segments on the basis of mode of sale i.e. Retail, Online. We will be targeting both of these segments as we will be launching our products on the e-website and in retail stores as well. We will also be contacting distributors and Independent Sales Representatives for the distribution of our products in local retail stores.

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Segmentation by gender:

Cosmetic market on the basis of gender can be segmented into two segments i.e. female, male. Our main target would be to focus on the female segments as most of our customers will be female customers.

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Segmentation by price:

This can be the most immediate segmentation criteria, allowing fashion firms to identify direct price-related competitors. Makeup industry can be segmented by the price range such low priced makeup products, mid-range products, high end products. Our target would be on the on the high end and affordable mid-priced products as we will be launching two product ranges i.e. a high-end makeup line and reasonable medium-priced makeup line.

DIFFERNTIATION: As our differentiation strategy is concerned, our competitive advantage would be fact that our makeup products are halal as we know that most of the ingredients that are being used in the makeup products are not halal such as bees wax and through this we will have a unique competitive advantage over our competitors. Moreover, to produce high quality and safe to use products we will be using all the natural and safe ingredients that are not harsh for the skin and will be effective and safe for each skin type including sensitive skin. Our natural, no chemical, safe and halal ingredients will not only provide customers with their desired look but will also improve and rejuvenate their skin to give their skin a healthy glow. Our organic products will not irritate the skin and will be very gentle and moisturizing for the skin. We truly believe that using natural and organic makeup products eco-friendly products is the safest and most effective way to look and feel your best.

POSITIONING: Our differentiation strategy that we discussed above will play a major role in the positioning strategy by building a position in customer’s mind by providing superior value for the products as compare to the competitors. A good positioning strategy always leads to an effective marketing strategy and will help to promote and position your products in the customers mind. if we look at the value proposition we can say that for the high-end product line we are providing our customers more benefits for more price such as high quality ingredients that will improve your skin such as hyaluronic acid and a good mix of essential oils that are good for the skin. For middle-range products we are providing more benefits for less price such as natural, halal ingredient products. Following are the ways through which we can market and position our products: 

Distribute flyers:

Flyers are leaflets which is a single sheet of paper that has a lot of information such as your product images, some price incentives, and your company’s contact details. The cost of creating a flyer design is very low amongst all marketing material. It is cost friendly and economical. Once you have the flyers ready in hands, just stand at one spot in a market and distribute to the passersby. This is an effective way to promote your small business among your potential consumers. 

Offer deals:

By providing economical and bundle deals we can increase the sales rate as customers will try to get maximum value for their money. Like this we can sell our maximum products so that the customers can test and try our products and then after using our high-quality products they will become our loyal customers regardless if the sales and discounted prices end. We can also offer them gifts with makeup deals. 

Sending PR packages to vloggers and bloggers:

Vloggers and Bloggers are the new celebrity endorsers, which allows firms to present and promote cosmetics products to a niche by using influencer marketing. In this sense, we can see a confirmation of a greater trend towards communication, whereby direct promotion is becoming much less influential than a form of brand or product awareness which passes through public relation strategies.

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Having a unique logo:

Logo plays a huge and critical role in a brands reputation. global reputation the brands are identified by their memorable logos. This clearly establishes the importance of logos for business promotion. Having a good, creative and unique logo makes your band to stand out among all your competitors and makes it different from other brands. We will be hiring a graphic designer for our logo and for theme line we will use this We truly believe that using natural and organic makeup products ecofriendly products is the safest and most effective way to look and feel your best. 

Having a creating packaging: Having a creative and unique packaging reflects your vision and thinking process behind your products and makes your products more attractive in the eyes of the customers, for the packaging we will hire an agency for the packaging models that will have a simple and natural aesthetic that will reflect the true spirit behind the products.

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Interactive social networking: Social channels such as Facebook, Twitter and YouTube are like new marketplaces where you can sell your beauty products aggressively. These virtual markets are ideal for reaching to increasing number of potential consumers. All you have to do is to post interesting content and visuals regularly to create a dominating presence of your business on all the channels. Your small cosmetic business can afford to have a professionally created social media page with crowdsourcing sites. Design hill is one such leading crowdsourcing marketplace where hundreds of designers will offer you many amazing design ideas at a low price for your small business. Make it sure that your small company has a dedicated page for your cosmetic products on all the popular social channels. However, your social media page must be attractive in terms of its combined use of text and images.

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Productive communication with distributors and retailers: Your business volume will rise quickly if you are able to get some wholesale distributor interested in your beauty products. Many retailers prefer buying their inventories from wholesalers rather than purchasing directly from companies or individual manufacturers. If you can successfully sell your products to the distributors, your volume of sold products will be much greater as compared to selling at one store. Some small business owners try to sell their products on their own but fail, as they are not marketing experts and therefore have no experience in direct selling. There are individual sales representatives who can do the job for you. Contact the individuals who make their living by selling a company’s products. These are the strategies that we can adapt to market our makeup products in the cosmetic market that will make them different from our competitors.

TYPE OF PRODUCT: Our beauty and makeup products are consumer as well as industrial products. As consumer products we can say that our products are specialty products because of the unique characteristics or brand identification for which customers are willing to make a special purchase effort. Because of the fact that our brand is cruelty free and uses natural and halal ingredients provides customers with these unique characteristics that not more brands in the marketing are offering makes them special in the eyes of the customer. When it comes to industrial products our makeup products can be used as operating supplies for salons, professional makeup artists and for large scale salons businesses.

PRODUCT ATTRIBUTES: Product attributes are the benefits of the product or service. Product attributes include quality, features, style and design. 

Quality level:

The quality of our makeup products will play a major role in their positing strategy. Safe, high quality and halal that are being used in our products is the main motto and vison behind our products. Thus, ensuring high quality products for less price. 

Product features: One of the features that will make our product different from its competitors is the fact that our makeup products are made with halal and safe ingredients that can not only be used by the non-Muslims but Muslims all over the world can also use these products. Thus, increasing the variety of customers whom we can serve. The fact that our products are natural and organic and are good for any skin type therefore they can be used by sensitive and acne prone skin as well which is a great advantage for us

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Style & design Style and design of the makeup products reflects how a brand presents its vision for its products in front of the customers. Also, style and design represent mission statement for a company, product details, product color tones. We will create our own unique logo, packaging, design for products that will attract the customers interest and will appeal them to buy the product. It will reflect the natural aesthetic image of our brand.

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Brand: Choosing a brand name is the most important and critical steps as you are going introduce yourself to the outside world through that name. that name should speak about your vision, your ideology, the though process hidden behind your brand.

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Packaging and labels: As we discussed above any times that packaging plays a very important role while marketing any product. An aesthetically appealing packaging will attract the customer and will urge them to buy the product. Our goal is to have a packaging that will reflect the simple and minimalistic image of our brand through our products. While labeling our product, we will think of the labels that suit well for the products and are self-explanatory and will provide proper description about the product.

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Product line: We will be launching two product lines. One is the affordable mid-priced product line and other is the high-end product line. First one will target the customers that belong to the middleincome group and want good product for less price. Other one will target the group of customers that belong to the high-income group and want high quality product with more expensive ingredients and are willing to pay more price for more benefits.

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Brand mix: Both the ranging will have eye products including eye shadow, mascara, eyeliner, face products including foundation, face powder, blush, highlighter, contouring powder, lip products including lipstick, lip pencils, lip gloss.

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Branding strategy: When it comes to branding strategy, a brand should decide its product’s attributes, benefits, beliefs and values. For our products, our products attributes include its unique ingredients, its earthly and nude shades and tones. The benefits that it will provide its customers is that it will not irritate the skin. It will keep their skin healthy while giving the benefits of makeup. For our believes and values, we will not use any harsh and chemical ingredients in our products as we believe that they will harm your skin and can irritate your skin. While choosing a name following are the qualities that should be kept in mind: Suggest benefits and qualities, Easy to pronounce, recognize, and remember, Distinctive, Extendable, Translatable for the global economy, Capable of registration and legal protection. For our brand will chose the name co-natural as our basic idea is based on natural ingredients. Our brand would be a co-brand.

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Marketing Strategies for Service Firms: As we know that our brand is a service firm therefore here are some of the marketing strategy that a service firm should adapt in order to prosper and excel in the industry i.e. service profit chain, internal marketing and interactive marketing.

Service profit chain:

This strategy establishes relationships between profitability, customer loyalty, employee satisfaction, loyalty, and productivity. Profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer satisfaction. Satisfaction is largely influenced by the value of services provided to employees that are standing at the counters selling our makeup products. Value is created by satisfied, loyal, and productive employees. Employee satisfaction, in turn, results primarily from high-quality support services and policies such as bonuses, medical allowances, healthy workplace, reasonable salaries, giving them a detailed description about the makeup product that they are going to sell enable employees to deliver results to customers. As a result, the customers that come to buy our products after seeing a productive and vigilant service provided by our employees are urged to buy our products which leads to more revenue and then profit and ultimately growth as a brand. We can improve productivity of our employee by demonstrating them how to use the products and how to market their features in front of the customers. For a makeup brand like us it is very important that our employees should know how to use makeup and are makeup artist so that they can demonstrate the products to the customers in a proper way. 

Internal marketing: The theory of internal marketing is that customers’ attitudes toward a company are based on their entire experience with that organization, and not just with the products. Thus, everyone who has any contact directly or indirectly with the customer helps to shape that customer's experience. Therefore, customer satisfaction is deeply dependent on the performance of a company's workforce. There should be proper communication among the employees that are dealing with the customers and the employees that are working on the background. A proper description about the functionality of the product should be translated to the employees that are directly contacting the customers.so that customer can get the full spectrum about the makeup products

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Interactive marketing: Interactive marketing means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter i.e. Service differentiation, Service quality, Service productivity. Managing Service differentiation, service quality and service productivity play a very important role to position your products in customer’s mind. How you offer, deliver and image your product plays ...