Detailed Analysis: L'Oreal Paris Target Market Segmentation Report

This report provides a comprehensive analysis of L'Oreal Paris's target market segmentation strategy, focusing on its operations in the Australian market. It begins with an overview of the company's organizational objectives, vision, and values, emphasizing its commitment to innovation, sustainability, and the goal of 'Beauty for All.' The report outlines L'Oreal's key organizational goals and explains how the proposed marketing plan aligns with these objectives. It then details the marketing campaign objectives, employing the SMART goals framework to define specific, measurable, achievable, relevant, and time-bound targets for the launch of three new products: Revitalift-energizing cream day, Revitalift Laser, and Replumping Sheet Musk. The report discusses communication options, including e-commerce and media marketing, and justifies the selection of working women aged 23 to 45 as the primary target market. It also addresses product standards, considering relevant cosmetic guidelines in Australia, and identifies factors affecting market segmentation, such as economic, social, and technological influences. The consumer profile is detailed, describing the target demographic's characteristics, purchasing behavior, and needs. Finally, the report concludes with a positioning statement that reflects the evolving needs of the target audience in the context of increasing environmental impacts and market competition.

Running head: TARGET MARKET SEGMENTATION
TARGET MARKET SEGMENTATION
Name of the student:
Name of the University:
Author Note:

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TARGET MARKET SEGMENTATION
Organizational Objectives and Vision and Values:
L’Oreal Paris is a French Company, head quartered in Clichy, Hauts- de- Seine. The
organization is has a global face and is expanded almost all across the world. In Australia, as
well, the organization has a major market. The organization offers a head- to –toe range of
products and it takes the feedback process and system very seriously1. The organization is
now aiming at making itself a model company that includes rigorous innovation, and has an
approach of sustainability in the system of innovation. The main aim of the company is
“Beauty for All’.
Organizational Goals:
The primary goals that the organization includes are,
 Enriching and producing a diverse range of products that, can reach to all the
members of the society, irrespective of their class, gender, and colour.
 Rigorously using the science and technology to enrich the process of innovation and
further market them.
 Incorporating a sustainable process in the making of the products.
 Introducing themselves as a model company in the beauty industry2.
Therefore, the following report tends to develop upon the three new products that the
organization is aiming to launch in the market of the country, Australia, and in order to do
that they have incorporated the above mentioned goals in the organization aspect.
1 Guillon, Olivia. "Do Employees in the Cultural Sector Adhere More Strongly to Their Organization’s Goals
Than Employees in Other Sectors?." International Journal of Arts Management 19, no. 2 (2017).
2 Guillon, Olivia. "Do Employees in the Cultural Sector Adhere More Strongly to Their Organization’s Goals
Than Employees in Other Sectors?." International Journal of Arts Management 19, no. 2 (2017).

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TARGET MARKET SEGMENTATION
Marketing Campaign Objectives:
The organization is aiming to launch three of their new products, Revitalift-
energizing cream day, Revitalift Laser, and Replumping Sheet Musk. In order to introduce
these to the market, they are planning to include a SMART goals objective, into their
marketing campaign,. Therefore, the objectives of the marketing campaign are,
 Specific, that is, they have included all, the specificities regarding the product, hence,
to avoid any ambiguity relayed to the product. They have enlisted all, the benefits,
understood through the tests, and the pilot study3.
 Measurable, that is, they have incorporated an expert market analysis program in
order to understand the market growth. They had included the same, before the launch
of the product to understand the market needs and the possible communication
channels and also, they are planning on to include the same after the launching of the
products, to understand the market and growth pattern4.
 Realistic, that is, the aims, that the organization has, regarding the products, have been
planned, considering the environmental aspects. The price of the products and the
target market is also set considering the economic and the legal aspects of the
country5.
Communication Options:
The organization must include e- commerce channels to communicate with its
consumers. It can also employ media marketing channels employing celebrities.
3 Mutmainnah, Anit. "Beauty concept om L'oreal Paris commercial advertisement." PhD diss., UIN Sunan
Gunung Djati Bandung, 2017.
4 Mutmainnah, Anit. "Beauty concept om L'oreal Paris commercial advertisement." PhD diss., UIN Sunan
Gunung Djati Bandung, 2017.
5 Mutmainnah, Anit. "Beauty concept om L'oreal Paris commercial advertisement." PhD diss., UIN Sunan
Gunung Djati Bandung, 2017.

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TARGET MARKET SEGMENTATION
Target Market Selection:
The target market selected for the marketing of the products are the working women
of the country, ageing 23 to 45. They are more exposed to stress and environmental pollution,
therefore indeed they are in need of the rejuvenating and replumping products to take care of
their skin.
Selection of Product Standards:
While launching the products and setting the target market, the organization had
incorporated and included the standard cosmetic guidelines that are governing in the country.
The three most important guidelines that the company had to consider were, first, to check
whether the chemicals that these products needed to get included, were permitted to use in the
country6. In this notion they had contacted the National Industrial chemicals Notification and
Assessment Scheme.
Secondly, they considered the measurement of the chemicals in the product and
checked it up with the National Measurement Institute of the country7.
Lastly, they considered the safety claims made by the organization and the labelling
obligations that are governing within the country after checking it up with the Australian
Competition and Consumer Commission8.
Factors Affecting the Segmentation:
While including the advertisement and the market promotion plan the organization had
considered certain factors that can, both act as a barrier and as a competitive nudge for the
6 Donglikar, Mukund Manikrao, and Sharada Laxman Deore. "Sunscreens: A review." Pharmacognosy
Journals 8, no. 3 (2016).
7 Donglikar, Mukund Manikrao, and Sharada Laxman Deore. "Sunscreens: A review." Pharmacognosy
Journals 8, no. 3 (2016).
8 Donglikar, Mukund Manikrao, and Sharada Laxman Deore. "Sunscreens: A review." Pharmacognosy
Journals 8, no. 3 (2016).

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TARGET MARKET SEGMENTATION
products and for the organization, and a PESTLE analysis was included. In order to
understand the industry and to create a PEST analysis, the organization had included the
Economic, Social and the Technological analysis of the industry.
 Economic: The recession element is one of the major factor that can pose to be a
barrier for an organization. Also, the human development index, which is now
growing can also act as a barrier9.
 Social: This includes the social trends and the financial ability of the people of a
particular place, and since the products are premium products and the pricing is little
high, therefore, it can affect the marketing10.
 Technological: The country is known to be the technological capital, however, since
L’Oreal includes innovation rigorously, therefore, it is very important for the
organization to consider the technological attributes11.
Target Market:
The target market for the products that are to be launched are the working women of the
country. Therefore, the reasons to set the market are,
 Tanned and tired skin.
 Needed the products the most.
 Premium products, with a higher price range.
 The concept of revitalization and replumping can be understood by the working
industry.
9 Kenny, Erin, and Elizabeth Gackstetter Nichols. Beauty Around the World: A Cultural Encyclopedia. ABC-
CLIO, 2017.
10 Kenny, Erin, and Elizabeth Gackstetter Nichols. Beauty Around the World: A Cultural Encyclopedia. ABC-
CLIO, 2017.
11 Kenny, Erin, and Elizabeth Gackstetter Nichols. Beauty Around the World: A Cultural Encyclopedia. ABC-
CLIO, 2017.

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TARGET MARKET SEGMENTATION
 Easy to influence and market, and the products can be affordable by them12.
Consumer Profile:
Description: Working women of the country, age group- 23 to 45.
Location: Australian market.
Purchasing process: Online or at the town centres.
Consumer characteristics: Personal values, Personal Interests, Everyday Activities.
Positioning Statement:
The number of working women is increasing within the country, and so is the
environmental impacts. Therefore, the women of today, are striving to keep themselves and
their skin healthy by doing minimum works. Also, this particular aspects has been discovered
by all the beauty markets, and there is an increased competition in the market on this aspect.
References:
Donglikar, Mukund Manikrao, and Sharada Laxman Deore. "Sunscreens: A
review." Pharmacognosy Journals 8, no. 3 (2016).
12 Santos, Raquel, Manuel Au-Yong-Oliveira, and Frederico Branco. "L'Oréal and its innovative differentiated
positioning process in the beauty industry." In European Conference on Innovation and Entrepreneurship, pp.
717-XII. Academic Conferences International Limited, 2018.

6
TARGET MARKET SEGMENTATION
Guillon, Olivia. "Do Employees in the Cultural Sector Adhere More Strongly to Their
Organization’s Goals Than Employees in Other Sectors?." International Journal of Arts
Management 19, no. 2 (2017).
Kenny, Erin, and Elizabeth Gackstetter Nichols. Beauty Around the World: A Cultural
Encyclopedia. ABC-CLIO, 2017.
Mutmainnah, Anit. "Beauty concept om L'oreal Paris commercial advertisement." PhD diss.,
UIN Sunan Gunung Djati Bandung, 2017.
Santos, Raquel, Manuel Au-Yong-Oliveira, and Frederico Branco. "L'Oréal and its
innovative differentiated positioning process in the beauty industry." In European
Conference on Innovation and Entrepreneurship, pp. 717-XII. Academic Conferences
International Limited, 2018.