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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; …show more content…

The Fashion Victim
The third category is the Fashion Victim and is made up by customers who, either by habit or, more frequently by peer/social pressure are loyal to a particular brand, usually a higher-end brand. These brands are on the higher end of the spectrum and give a certain status and sense of privilege to the user. Typically, this would be a woman over thirty who wouldn’t be caught dead with an inferior brand. She is typically well off but not necessarily educated or professional, unlike the Health Freak.

The Cheapskate
The Cheapskate is the fourth category which is made up by customers whose primary criteria for a purchasing a cosmetics product is the price. This segment is typically made up by the traditional male and less well off female who buy lower end cosmetics such as toothpaste, shampoo and deodorant on the basis of their price alone and the fact that these products are necessities, but need not be an expensive upscale brand, as a cheap alternative would suffice. (Bic vs Gillette – any comments? – A similar example is the disposable razors market, where the trend for cheap razors is alerting the expensive replacement razor manufacturers, such as Gillette, to diversify their marketing strategies in order to keep their customers loyal against the rise in the cheap disposable razors competition (i.e. BIC) ) Similarly, this segment also includes younger women and teenagers who do not yet have the money to

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