Analyzing Unilever's Market Segmentation Approach

Contents
Acknowledgement.....................................................................................................................................22
1. Explain how the said company has influenced customers to buy the product that you picked? Explain
the answer using the model of buying behavior related to the market to which the chosen business
belongs. (Kotler P., Marketing Management,11th edition)........................................................................24
2. As per the market data & information;..................................................................................................26
2.1 Identify the segmentation variables used by the organization to segment the market (The variables
should consist of geographic, demographic, behavioral, and psychological).........................................26
2.2 Identify which targeting strategy is used for the new product to target the customers with reasons.
...............................................................................................................................................................30
2.3 Identify two positioning bases which are being used by the company to position the new product
in customers’ mindset by drawing the positioning map........................................................................32
3. As explained by Kotler & Armstrong “Marketing mix is the set of marketing tools the firm uses to
implement its marketing strategy”. Analyze the marketing mix of the chosen product by addressing the
following;...................................................................................................................................................33
3.1 Identify the types of features being added to the product. ............................................................33
3.2 Identify the pricing strategy applied by the organization for the new product................................34
3.3 Identify the distribution strategy followed by the organization to distribute the product...............35
3.4 Identify the promotional tools used for promoting the new product to customers by giving
reasons..................................................................................................................................................37
Executive Summary...................................................................................................................................39
Conclusion.................................................................................................................................................39
Bibliography...............................................................................................................................................41
TABLE OF FIGURES
FIGURE 1 SEGMENTATION VARIABLES........................................................................................................................25
FIGURE 2 DISTRIBUTION STRATEGY............................................................................................................................34
FIGURE 3 PROMOTIONAL TOOLS...............................................................................................................................36

Learning Outcomes 03 & 04.
1. Explain how the said company has influenced customers to buy the
product that you picked? Explain the answer using the model of buying
behavior related to the market to which the chosen business belongs.
(Kotler P., Marketing Management,11th edition)
The company has influenced customers to buy the "Makeup for All Skin Tones" product, using the model
of buying behavior related to the market:
The company recognized the need for makeup products that cater to all skin tones, understanding the
increasing demand for inclusivity and diversity in the beauty industry. They acknowledged that
customers with different skin tones often faced challenges in finding suitable makeup options that
complemented their unique complexion. By addressing this need, the company aimed to empower
customers and make them feel represented and valued.
To develop the "Makeup for All Skin Tones" product, the company conducted extensive market research
and gathered insights on the preferences, needs, and challenges faced by customers with diverse skin
tones. They explored the market landscape, competitor offerings, and consumer feedback to identify the
gaps and opportunities in the market. This thorough information search allowed them to gain a deep
understanding of the target market and tailor their product accordingly.
Armed with valuable insights, the company formulated the "Makeup for All Skin Tones" product with a
range of shades specifically designed to match and enhance the beauty of different skin tones. They
focused on creating captivating shades that highlight the natural radiance of individuals, ensuring that
customers can find shades that complement their unique complexion. By offering a diverse range of
shades, the company aimed to meet the specific needs and preferences of customers with various skin
tones.
The company also emphasized the quality and features of the product to influence customers' buying
behavior. They highlighted the lustrous shine and long-lasting formula, ensuring attention-grabbing
glamour that stays in place throughout the day. Additionally, they emphasized the use of nourishing

ingredients such as vitamin E and botanical extracts, which provide hydration and nourishment for soft
and smooth lips. These features appealed to customers who value both beauty and skincare benefits in
their makeup products.
Furthermore, the company addressed customer concerns by developing a lightweight, non-sticky texture
that offers a comfortable wear experience. They understood that customers want makeup products that
feel pleasant and effortless to apply, enhancing their overall user experience.
To further influence customers to buy the "Makeup for All Skin Tones" product, the company
incorporated SPF protection into the formulation. This feature appealed to customers who prioritize sun
protection and recognize the importance of shielding their lips from harmful UV rays.
Through their marketing and promotional efforts, the company effectively communicated these product
benefits and features to their target market. They leveraged various channels such as social media,
influencer collaborations, and targeted advertising to reach and engage with customers who value
inclusivity, quality, and convenience in their makeup choices. By aligning their messaging with the values
and aspirations of their target market, the company successfully influenced customers to buy the
"Makeup for All Skin Tones" product.
Overall, the company's thorough understanding of the market, customer needs, and preferences,
combined with their strategic product development and marketing efforts have played a significant role
in influencing customers to buy the "Makeup for All Skin Tones" product. By recognizing the importance
of inclusivity and addressing the specific needs of customers with diverse skin tones, the company has
effectively positioned itself as a trusted brand that values and caters to the unique beauty requirements
of its customers.
The company has influenced customers to buy the "Makeup for All Skin Tones" product by understanding
and applying the model of buying behavior related to the cosmetics market. According to Kotler's model
of buying behavior, the decision-making process for purchasing cosmetic products involves several
stages:
 Need Recognition: The Company recognized the need for makeup products that cater to all skin
tones. They identified the diverse customer base and the desire for inclusive beauty products.

 Information Search: The Company conducted market research and gathered information on the
preferences, needs, and challenges faced by customers with different skin tones. They identified
the gaps in the market and the lack of suitable options for various skin tones.
 Evaluation of Alternatives: The Company developed a range of makeup products specifically
formulated and designed to suit all skin tones. They ensured a wide variety of shades and
undertones to cater to the diverse needs and preferences of customers.
 Purchase Decision: Through marketing and promotional activities, the company effectively
communicated the unique selling proposition of their "Makeup for All Skin Tones" product. They
highlighted its inclusive nature, quality, and ability to enhance the beauty of individuals with
different skin tones.
 Post-Purchase Behavior: The Company aimed to create customer satisfaction and loyalty by
delivering on their promise of providing makeup products that truly work for all skin tones. They
encouraged customers to provide feedback and engage with the brand through various
channels.
By addressing the specific needs of customers with different skin tones and offering a comprehensive
range of products, the company successfully influenced customers to choose their "Makeup for All Skin
Tones" product. They demonstrated an understanding of the market's buying behavior model and
effectively catered to the diverse preferences and demands of the target market. (CHAKRABORTY)
2. as per the market data & information;
2.1 Identify the segmentation variables used by the organization to segment
the market (The variables should consist of geographic, demographic,
behavioral, and psychological)

Figure 1 segmentation variables
It is necessary to analyze the segmentation variables used by Unilever to segment the Sri Lankan
cosmetics market. Segmentation variables allow organizations to divide the market into distinct groups
based on various characteristics and factors. Unilever likely utilizes a combination of geographic,
demographic, behavioral, and psychological variables to segment the market effectively. Let's explore
each category:
1. Geographic Segmentation: Unilever may segment the market based on geographic variables such as
region, city size, or climatic conditions. Since Unilever operates globally, it can also consider country-
specific factors. In the case of the Sri Lankan market, Unilever may focus on specific regions or cities
where consumer demand for cosmetics is higher or where there is a concentration of target
customers.
Under the geographic segment, Unilever may target different regions or cities within Sri Lanka based on
their specific characteristics and market demand for cosmetics. Here are some potential geographic
segments that Unilever could consider:

1. Urban Areas: Unilever may focus on major urban centers such as Colombo, Kandy, and Galle,
where there is a higher concentration of population and greater access to beauty retailers.
Urban areas often have a larger customer base and a higher demand for cosmetics, including
makeup products for various skin tones.
2. Suburban Areas: Unilever could also target suburban areas surrounding major cities, as these
areas often have a growing population and increasing disposable income. Consumers in
suburban areas may have similar needs and preferences as urban consumers but with a
slightly different demographic profile.
3. Rural Areas: Unilever may also consider targeting rural areas where there is a significant
population and a growing interest in beauty and personal care products. This segment may
require a different marketing approach and distribution strategy, considering factors such as
accessibility, affordability, and cultural preferences.
4. Tourist Destinations: Sri Lanka is a popular tourist destination, and Unilever could focus on
areas with high tourist footfall, such as beach resorts, cultural sites, and popular tourist cities.
Tourists often have different purchasing behaviors and preferences, and Unilever could tailor
its marketing efforts to cater to their specific needs and preferences.
2. Demographic Segmentation: Demographic variables are commonly used in market segmentation.
Unilever may consider factors such as age, gender, income, occupation, and education level. For the
"Makeup for All Skin Tones" product, Unilever's target market may include individuals of diverse
ages, genders, and income levels who are interested in cosmetics and beauty products. The
product's inclusive nature suggests that it caters to individuals of various ethnic backgrounds and
skin tones.
Under the demographic segmentation, Unilever may consider the following variables to segment the
market based on demographic characteristics:
1. Age: Unilever may target different age groups with specific makeup products tailored to their
needs. For example, they may offer products for younger consumers in their teens and early