marketing segmentation and consumer needs_final_2010

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2010 Wen Li Xiao Ying Wang Bouy Lim Ray Uamang Diploma of International Business Marketing Segmentation and Consumer Needs

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Page 1: Marketing Segmentation and Consumer Needs_Final_2010

2010

Wen Li

Xiao Ying Wang

Bouy Lim

Ray Uamang

Diploma of International Business

Marketing Segmentation and Consumer Needs

Page 2: Marketing Segmentation and Consumer Needs_Final_2010

Marketing Segmentation and Consumer Needs 2010

Diploma of International Business | Box Hill TAFE 1

Table of Contents

1. Laundry Detergents............................................................................................................................ 3

1.1 BIOZET Attack Laundry Powder (The Sex and the City Shopper) ............................................... 4

1.2 Cold Power Advanced Laundry Powder (Golden Oldies) ........................................................... 4

1.3 Dynamo Laundry Powder with SARD (The Bachelor Pad Shopper) ........................................... 5

1.4 DUO Ultra Concentrate Laundry Powder (The Shared Household Shopper) ............................ 6

1.5 Omo Laundry Powder (Double Income No Kids) ....................................................................... 6

1.6 Woolworths Select Laundry Powder (Soccer Mums) ................................................................ 7

1.7 Aware Eco Choice Laundry Powder (Empty Nesters) ................................................................ 7

1.8 Radiant MicroVAX Laundry powder (Super Dad) ....................................................................... 8

2. Female Cosmetics .............................................................................................................................. 9

2.1 Elizabeth Arden (Double Income No Kids) ............................................................................... 10

2.2 REVLON (Soccer Mum) ............................................................................................................. 10

2.3 ESTEE LAUDER (Golden Oldies) ................................................................................................ 11

2.4 L’OREAL PARIS (Empty Nesters) ............................................................................................... 12

2.5 Christian Dior (The Sex and the City Shopper) ......................................................................... 12

2.6 THE BODY SHOP (The Shared Household Shopper) ................................................................. 13

3. Men’s Colognes ................................................................................................................................ 14

3.1 RALPH LAUREN SAFARI (Empty Nesters) ................................................................................. 15

3.2 ARAMIS LIFE (Golden Oldies) ................................................................................................... 15

3.3 Intimately BECKHAM (The Bachelor Pad Shopper) .................................................................. 16

3.4 Calvin Klein One (The Shared Household Shopper) ................................................................. 16

3.5 GUCCI (Double Income No Kids) .............................................................................................. 17

3.6 Tommy Hilfiger (Super Dad) ..................................................................................................... 17

4. Magazine Advertisements ............................................................................................................... 18

4.1 Murray’s list of human needs .................................................................................................. 18

4.1.1 The Bachelor Pad Shopper ............................................................................................... 19

4.1.2 The Sex and the City Shopper .......................................................................................... 20

4.1.3 The Double Income No Kids Shopper (DINKS) ................................................................. 20

4.2 Maslow’s hierarchy of needs ................................................................................................... 20

4.2.1 The Bachelor Pad Shopper ...................................................................................................... 21

4.2.2 Double Income No Kids (DINKS).............................................................................................. 21

4.2.3 The Sex and the City Shopper ................................................................................................. 21

References ............................................................................................................................................... 23

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Marketing Segmentation and Consumer Needs 2010

Diploma of International Business | Box Hill TAFE 2

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Marketing Segmentation and Consumer Needs 2010

Diploma of International Business | Box Hill TAFE 3

1. Laundry Detergents

Product Description Target Audience

BIOZET Attack Laundry Powder With Softener Top Load 1kg $10.89

The Sex and the City Shopper

Cold Power Advanced Laundry Powder 1kg $10.89

Golden Oldies

Dynamo Laundry Powder Ultra Front Loader With SARD 1kg $11.49

The Bachelor Pad Shopper

DUO Laundry Powder Ultra Concentrate 2.5kg $12.89

The Shared Household Shopper

Omo Laundry Powder 2x Concentrate 875g $9.41

Double Income No Kids (DINKS)

Woolworths Select Laundry Powder Concentrate 1kg $7.07

Soccer Mums

Aware Eco Choice Laundry Powder Concentrate 1.5kg $8.06

Empty Nesters

Radiant Micro Max Colour With 20% Extra Free 1.2kg $6.99

Super Dad

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Diploma of International Business | Box Hill TAFE 4

1.1 BIOZET Attack Laundry Powder (The Sex and the City Shopper)

BIOZET Attack laundry powder is made by the Japanese Kao

Corporation, and it is a relatively new comer to the Australian

laundry powder market. The unit pricing for BIOZET is similar to

other tier one competitors like Omo, Cold Power and Dynamo.

Therefore, this product is not targeted at the value seeking

consumer segment, which usually purchases the cheaper second

tier products.

The price and the flashy packaging design of the BIOZET Attack are used to target a distinct market

segment group, like the ‘Sex and the City’ shoppers. The consumers within this particular segment are

all usually trend setters and follow the latest fads; they love to purchase and use the ‘latest, greatest

and sexiest’ products, and would want to be the first to try a new product in the market.

BIOZET Attack is the first laundry powder in Australia, to proclaim the uses of ‘micro capsule

technology’ and ‘bioenzyme’ in laundry powder, which are used to attract ‘technology savvy’ and

‘trend setting’ consumers. The BIOZET Attack packaging also states that it is ‘4x faster dissolving’, to

reassure the potential customers that there would be no powder residues left behind on washed

laundry when using this product. The combined ‘Softener’ ingredients within the BIOZET Attack

laundry powder, further reinforces the benefits of ‘convenience’ to its potential customers.

Therefore, BIOZET Attack clearly appeals to ‘the Sex and the City’ shoppers, whom seek the benefits of

‘prestige’, ‘convenience’, and ‘social acceptance’, of been the ‘trend setter’ in everything they buy and

use, even laundry powder.

1.2 Cold Power Advanced Laundry Powder (Golden Oldies)

Cold Power laundry powder has been sold in the Australian

market since the 1960s, and it is still the second most popular

brand after Omo. This is in stark contrast to the American market,

where Cold Power brand was pulled in the 1970s, due to its

continual lagging sales. This brand of laundry powder is

especially popular with the Australian baby boomers and the

‘Golden Oldies’ consumers, whom would have grown up using

this product in some stages of their life.

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Diploma of International Business | Box Hill TAFE 5

When, Cold Power laundry detergent was first released in Australia, it was a one of a kind product,

which gave it the ‘first mover advantage’ or FMA. As the brand name suggests Cold Power laundry

powder could be effectively used even in cold water condition. This was an important breakthrough

for many households, whom had clothes that had pseudo-color fast fabric or was made of delicate

fiber (i.e. fine silk, etc), which shrank or get discoloured when hot water was used in the washing cycle.

Furthermore, Cold Power did not have a strong artificial fragrance smell that many competing

products have, nor does it have the ‘nasty’ cheap laundry powder smell, all of which could make the

washed cloth smell unpleasant to some people.

Therefore, for most ‘Golden Oldies’, the Cold Power is a ‘tried and true’ brand of laundry product that

they are ‘brand loyal’ to, as they know it works and there is no gimmick or faddish marketing involved

with it. Furthermore, Cold Power packaging design has largely remain unchanged over the years,

which further reinforces the notion of trustworthiness with the ‘Golden Oldies’ consumers.

1.3 Dynamo Laundry Powder with SARD (The Bachelor Pad Shopper)

Dynamo is another brand of laundry powder made by Colgate-

Palmolive, and it is currently the third most popular brand by

market share. This brand of laundry powder is priced at the same

level as most other leading brand laundry powders, such as Omo,

Dynamo, Drive, etc. Therefore, Dynamo is not priced to attract

those price-and-value sensitive customers; it is aimed at people

whom want a convenient ‘solution’ to perfectly washed laundry

‘first time and every time’.

The target market of the Dynamo laundry powder is mostly people whom have grown up using the

traditional first tier laundry powders like Omo and Cold Power. These consumers usually want more

sophistication and technology in their laundry powder, in order to improve the washing efficiency. The

use of light and dark blue color with a touch of white on the side in the product packaging design,

elicits an image of high tech sophistication associated with the Dynamo brand laundry powder.

Dynamo is promoted using the ‘solution based marketing method’, which ideally targets the ‘Bachelor

Pad’ shopper’s whom tends to be attracted to leading brand name products that provides a

‘convenient and effective’ washing solution. The ‘Excellent Results First Time’ printed on the product

packaging, communicates the benefit of Dynamo washing powder, which is perfectly washed laundry

first time and every time, no repeated washing is necessary. The addition of SARD Oxy Plus (a laundry

pre wash soaker) within the laundry powder, further adds to the perception of convenience and

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Marketing Segmentation and Consumer Needs 2010

Diploma of International Business | Box Hill TAFE 6

quality washing result; as no separate pre-soaker product needs to be separately added to the

washing to improve the washing.

1.4 DUO Ultra Concentrate Laundry Powder (The Shared Household Shopper)

DUO laundry powder is a second tier product produced and

marketed by United Laboratories. This product is mainly targeted at

value conscientious consumer segment, which seek products that are

economical and value-for-money. The DUO laundry powder

packaging convey the sense of economy, through the use of phrase

such as, ‘Ultra Concentrate’, ‘2X Concentrate’, ’47 washes’, ‘Family

Pack’, ‘2.5 kg’, etc. Also, DUO currently is the only major brand that

explains what ‘2X Concentrate’ means, and how that benefits the end

user in terms of economy. Another attractive aspect of DUO laundry

powder is that they are always on ‘special’ in supermarkets, where

heavy discounts are used to attract more buyers to this product.

The DUO family pack laundry powder is therefore very attractive to the ‘Shared Household Shopper’,

since this pack size are both economical/value-for-money and ‘green’, due to less total packaging used

as compared to the 500 grams or 1 kg pack sizes. These two aforementioned benefits are what most

‘shared household shoppers’ primarily look at in their product. The larger family pack size also means

that these consumers would have to shop less for the same product, which also gives them the

convenience factor.

1.5 Omo Laundry Powder (Double Income No Kids)

Omo laundry powder is a premium brand laundry powder

produced and marketed by Procter & Gamble; it is currently the

best selling tier one laundry powder in the Australian market. The

Omo brand was first released in 1960s and over the years, there

had been many improvements done to it, in order to increase the

attractiveness to the consumers.

The Omo brand like other tier one products are not targeted at

value seeking consumers, as they tend to more expensive than the tier two products such as Fab and

DUO, etc. They are marketed as a ‘tried and true’ convenient washing solution by P&G, and Omo

advertisements are usually ubiquitous in most shopping centers parking lots. All of these benefits and

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Diploma of International Business | Box Hill TAFE 7

marketing ploys are something that DINKS (Double Income No Kids) shoppers look for and buys into

when shopping for their product.

1.6 Woolworths Select Laundry Powder (Soccer Mums)

Woolworths Select is a ‘private label’ product of Woolworths’

supermarkets. The ‘Select’ branded products are positioned as a value-

for-money brand name quality ‘alternative’ product (i.e. Omo, Cold

Power and Dynamo, etc).

The packaging design of the Select Ultra Concentrate laundry powder

is based on the successful/attractive design elements of other leading

brand laundry powders. The extensive use of blue in its packaging design is taken from Dynamo and

Cold Power packaging; and the multicolored ribbon decor is also borrowed from the Dynamo

packaging. The extensive ‘borrowing’ from other leading brand packaging design, allows the Select

Ultra to attract customers away from its leading brand competitors, due to the familiar packaging

design and lower prices. The word ‘Concentrate’ on the packaging, is used to convey a sense of

‘economy’ when using this product, as less of the product is needed per wash load to produce the

same result. The ‘value-for-money’, ‘economy’ and ‘quality aspects’ of Select Ultra laundry powder are

the main benefits, which attracts the ‘Soccer Mom’ to this private label product; whom believes that

private label offers the same product quality as most leading brands.

1.7 Aware Eco Choice Laundry Powder (Empty Nesters)

Aware Eco Choice is the only major leading brand laundry powder that

is fully positioned as an eco-friendly laundry powder. This brand of

laundry product is marketed by Planet Ark, which is a well known

Australian NGO that deals with environmental sustainable practices, like

the recycling of many consumer electronic products.

Aware Eco Choice laundry powder packaging clearly states the following

sustainability phrases, such as, ‘Garden friendly’, ‘No petrochemicals’,

‘No phosphates’, ‘Fully biodegradable’ and ‘Renewable ingredients’, etc. These words are all

important to reaffirm the notions that Aware Eco Choice laundry powder is the most ecologically

friendly washing powder on the market. The product packaging fully annotates the fact that this

product is made from renewable and environmentally friendly resources.

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Diploma of International Business | Box Hill TAFE 8

Many people whom practice environmentally friendly living habits, usually live on a limited income, so

if these ‘green’ eco-friendly products are too expensive, then many people would not be able to afford

them. Therefore, in order to maximise the appeal of the Aware Eco Choice laundry powder to all

‘greenies’, it is priced competitively against other second tier competitors on the market, such as DUO

and FAB. The people whom purchases second tier laundry powder, are usually more price conscious

(i.e. elastic demand) than those whom purchases the leading tier one product.

Given that the ‘Empty Nesters’ are highly value and environmentally conscious, they would love

product packaging that directly communicates these essential benefits to them, in a straight forward

manner. In addition, the ‘Empty Nesters’ love their gardens, and most likely would use effluents from

the washing machine on their beloved gardens, therefore would want a washing powder that is

garden friendly. The fact that Aware laundry powder is both owned and manufactured by Australian

companies, further increases the appeal to the ‘Empty Nesters’, since they love buying local products.

1.8 Radiant MicroVAX Laundry powder (Super Dad)

Radiant microMAX is made by PZ Cussons, whom specializes in

consumer cleaning and hygiene products. The Radiant brand of laundry

powder is aimed at consumer segments that want both value and

quality from their product.

The red packaging design used on the Radiant microMAX is similar to

other products made by PZ Cussons, such as the popular Imperial

Leather soap range that many consumers use at home. The vibrant red colour used on the Radiant

product packaging, is also very eye catching. It makes this brand of laundry powder stands out

amongst their competitors, whom favours the use of blue/white coloured packaging design. This

differential packaging design makes Radiant easier to notice and find by people whom are rushing

through the store isles, such as the ‘Super Dad’ shoppers. The consistent red packaging design, also

gives this product an up market look that many of its second tier competitors lack, i.e. Fab and DUO.

The use of bright yellow band on top of the packaging, proclaiming that there is ‘20% Extra Free’,

clearly communicates the idea that this product is value-for-money. While, phrases such as

‘microMax’, ‘Colour Safe’, ‘2X Ultra’, ‘Our Best Ever’ and ‘Tough on Stains Guaranteed’, gives an

impression that this product has a lot of performances, and would provide quality washing results. All

of which are attractive to ‘Super Dad’, whom seeks both value and performance in their products.

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Marketing Segmentation and Consumer Needs 2010

Diploma of International Business | Box Hill TAFE 9

2. Female Cosmetics

Product Description Target Audience

Elizabeth Arden Double Income

No Kids (DINKS)

REVLON Soccer Mums

ESTEE LAUDER Golden Oldies

L’OREAL PARIS Empty Nesters

Christian Dior The Sex and the

City Shopper

THE BODY SHOP The Shared Household

Shopper

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Diploma of International Business | Box Hill TAFE 10

2.1 Elizabeth Arden (Double Income No Kids)

Elizabeth Arden brand of cosmetics has a long heritage

dating back to the late 1910s, when Arden (the founder of

this company) released the first ‘fluffy’ face cream (called Venetian Cream Amoretta) with the help of

a chemist named A. Swanson. Elizabeth Arden revolutionized cosmetics, through the scientific

approach to formulating the makeup, and introducing the ‘Total Look’, where all cosmetics are colour

coordinated to match. In the 1930s to 1960s, this brand of cosmetics is considered the best and most

up market brand, where most of the world’s famous royalties and celebrities used and endorsed the

products. Elizabeth Arden continues to offer coordinated make-up sets, high quality skin care products

and perfumes. Most its product is priced at the same level as its tier one competitor, such as Estee

Lauder, YSL, Christian Dior, Clairns, Chanels, etc.

The Elizabeth Arden range of cosmetics are mostly targeted at female consumers within the age of 25

to 49, whom are well educated, married, employed in a professional/manager possession, have a

personal income of more than $50,000 per annum, and is a current home owner or in the process of

paying it off. The female customers of Elizabeth Arden also likely to aspire to famous female movie or

TV celebrities (i.e. Nigella Lawson) that is successful in both their careers and private lives. It is evident

that Elizabeth Arden targets this group of female consumers, through the use of Catherine Zeta Jones

as their current advertising spokeswoman for their range of cosmetics product. Many DINKS see

themselves as Catherine Zeta Jones type of woman, whom embodies personal virtues (married once

and has kids with only one partner), life successes (wealthy, steady private and public life) and

beauty/grace. Elizabeth Arden’s maintain a large core range of classic products like Red Door Perfume,

5th Avenue, coordinated make up set, for consumers whom want ‘tried and true products’. But the

company also constantly release new products or re-formulated classic products, for consumers

whom want to be a bit more adventurous.

2.2 REVLON (Soccer Mum)

Revlon is a cosmetics company that started business in the US

during the Great Depression. However, Revlon did not start to

enter the Australian market till the 1950s, when they decided that they need to expand into the

international market after WW2, where there maybe untapped demand for their products. Revlon

specializes in nail polishes and started to move into other cosmetics business, through acquiring other

companies. Currently, Revlon markets a range of perfumes (i.e. Fire and Ice), make-ups and skin care

products, at very competitive prices in a range of stores, such as Myer, Woolworths and various

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Diploma of International Business | Box Hill TAFE 11

pharmacies. Revlon in 1960s decided to launch several brands of cosmetic products to better target

the different market segments, which Estee Lauder purportedly copied and launched its Clinique

product line to much fanfare of many consumers, whom wanted cosmetics that produced low allergy.

However, the sale of Revlon stagnated in the 80s, as there was no serious innovation in the product

nor did the marketing mix change to better cater for the changing consumer sentiments and

aspirations.

Currently, Revlon is only a fraction of what it was at the peak of its corporate success. While, Revlon

Inc wants to make the Revlon brand name more up market, and more attractive to the younger

demographics, in actuality it is still seen as a product that mostly middle age woman would want to

purchase and use. Currently, Revlon targets consumers aged between 18 to 65+ years old, but in

reality most people whom would be interested in this product are in the age bracket of 25 to 54 years

old. These people usually have kids, married, left school early or just completed year 12, working full

time/part time as blue collar workers or stay home mum, have an income of below $40,000 per

annum, and is currently renting or paying off mortgage. Due to the kids, work, limited income and

large personal debt, the Revlon customers tend to be extremely value conscience, but at the same

time these people also want and demand quality from the product. ‘Soccer Mums’ tends to fit the

Revlon target consumer profile pretty well and Revlon appeals to them, as they are cheap, readily

available, and is an established brand, which means it would have the requisite product quality that

they seek.

2.3 ESTEE LAUDER (Golden Oldies)

The Estee Lauder (EL) brand has a long heritage in the cosmetics industry,

which produces and markets skin care, cosmetics, and perfume and hair care

products. Since the company started in 1946, the business rapidly expanded

over the next 15 years, by creating more brands like Aramis and Clinique, etc.

Estee Lauder also successfully moved their brand up market, by transferring the core product sale

location from drug stores to more up market department stores.

Estee Lauder offers several products that cater to the different demographics/psychographics

consumer segments. Its main line products are priced competitively and have been around since the

70s, which many older demographics consumer still uses. Estee Launder cosmetics products are

targeted at people aged between 25 to 65+ years old, whom are either working or retired, mostly are

well educated or enjoy high quality products at affordable prices. Most of the EL cosmetics products

are well priced against other tier one competitors, and there are always sale promotion going on,

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Diploma of International Business | Box Hill TAFE 12

which either offers cheap packaged deal or free gifts, which many other competitors tend to copy.

‘Golden Oldies’ tend to love Estee Lauder, due to their classic range of cosmetics product that is sstill

sold through their counters, which have been around for many decades.

2.4 L’OREAL PARIS (Empty Nesters)

L’Oreal is the largest beauty/cosmetics company in the world, based

in France. It has interests in skin care to hair care products, which

you can from supermarkets to department stores like Myer. The

company has an active research interests in dermatological and pharmaceutical fields. L’Oreal has

many sub brands that targets four distinct market segments, i.e. mass market (L’Oreal, Garnier,

Maybelline), professional (L’Oreal Professional, Redken), luxury (Lancome, Biotherm, Kiehl, YSL), active

(Vichy, La Roche, Inneov), etc.

The L’Oreal cosmetic brand targets a mass market as the product it sells are suitable for any aged

between 15 to 65+ years old, either man or woman, usually these people are moderately educated,

employed or retired with an annual income below $50,000, and could be owning, renting or paying off

mortgages on their home. L’Oreal is essentially a tier two cosmetic brand, which lends itself quite well

to people with limited income, as most of its products are cheap and effective. Therefore, ‘Empty

Nesters’ fall under the category of consumers that is targeted by L’Oreal through its sharp pricing

(value for money), seasonal discounting (elicits impulsive buying), ubiquity (you can purchase L’Oreal

products almost anywhere) and general product quality.

2.5 Christian Dior (The Sex and the City Shopper)

The Christian Dior brand is owned by the world’s largest luxury

goods conglomerate LVMH (Louis Vuitton Moet Hennessy).

Christian Dior is involved in high fashion clothing (haute couture), luxury ready to wear fashion,

menswear, accessories (i.e. watches and handbags) and cosmetics. Like most other cosmetics

marketed under the tier one fashion house names (i.e. Chanel, YSL, etc), Dior cosmetics product are

highly sort after by fashion and brand savvy consumers. Christian Dior has a special cosmetics lab,

which researches and develops latest skin care and cosmetic ranges, to ensure that they are just

effective (if not superior) as its main competitor’s luxury cosmetic products (i.e. Lancome, etc).

Christian Dior’s main target demographics are people between the ages of 25 to 55 years of age, well

educated, and full time employed in professional/managerial position, annual income above $50,000,

own their own home or paying it off. These target consumers (The Sex and the City Shopper) would

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love to travel, spend a lot of money on high fashion goods (i.e. LV handbags and Dior watches), likes

‘bling’, and is willing to stay ahead of the pack in terms of latest fashion and fads.

Dior maintains several product line for people of different ages, there is a core line of cosmetics

suitable for people aged between 18 to 35 (i.e. Hydro Action), and there is a also special product line

for people above the age of 35 years old (Capture Totale). For older people whom want more luxury in

their skincare, Dior also has the Dior Prestige line, which offers comparable products to ultra-luxury

cosmetic brands such as La Prairie, Vichy, etc. Dior under the direction of John Galliano, decided to tie

its popular fashion business with the cosmetics brand, by releasing a category of product called Dior

Show, which has a constantly changing range of products with exquisite casing design (i.e. Crystal rings,

pendants, etc). The Dior Show was an instant hit with many consumers, whom avidly collects the

limited run Dior Show cosmetics, and uses them as a fashion accessory. Therefore, Christian Dior

cosmetic brand’s main consumers, ties in quite well ‘The Sex and The City’ shopper, whom love to

seek the ‘latest, greatest, sexiest’ products to make them look stylish and get noticed. Dior range of

cosmetics products elicits the ‘look at me’, ‘must have’ and ‘got to be first’ mentalities that many ‘The

Sex and the City’ shoppers have.

2.6 THE BODY SHOP (The Shared Household Shopper)

THE BODY SHOP brand owned by L’Oreal is currently the second largest

cosmetic franchise in the world, and this brand is synonymous with innovation,

integrity, social responsibility and the environmental sustainability. Since 1997,

this brand has increasingly attached itself to a variety of social and

environmental campaigns, as a way to promote its business around the globe.

While, THE BODY SHOP products are not 100% organic, it is however considered natural and according

to the company, none of its products are tested on animals. Most of THE BODY SHOP products are

cheap, since there is not much overhead, and the ingredients used in the products are cheap to

procure; all of which translates to low products prices, which moves more product more quickly.

The range of cosmetics product sold under THE BODY SHOP brand name, are mostly targeted at

people between the age of 15 to 49, male or female, having higher education (i.e. degrees), working

or studying, renting and have an income of below $50,000 per annum. These customers also place

ethics very high on the list of their behaviors, and would mostly purchase products that neither harm

the environment nor societies at large, which is what many ‘Shared Household Shopper’ tries to do in

their lives.

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Marketing Segmentation and Consumer Needs 2010

Diploma of International Business | Box Hill TAFE 14

3. Men’s Colognes

Product Description Target Audience

RALPH LAUREN SAFARI Empty Nesters

ARAMIS LIFE Golden Oldies

Intimately BECKHAM The Bachelor Pad

Shopper

Calvin Klein One The Shared Household

Shopper

CUCCI Double Income No Kids

(DINKS)

Tommy Hilfiger Super Dad

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Diploma of International Business | Box Hill TAFE 15

3.1 RALPH LAUREN SAFARI (Empty Nesters)

The Ralph Lauren (RL) brand of cosmetics and perfume is owned by

L’Oreal, which both produces and markets this brand of product.

Ralph Lauren products are extremely popular with people of various

ages, between 18 to 65 years+ years old, since they have specific

products that cater for people of different age group. The cologne

products by Ralph Lauren are usually reasonably priced compared to

other tier one competitors, such as Aramis, Dior, Estee Lauder, etc.

The Safari Cologne by Ralph Lauren is for men (i.e. Empty Nesters) above 55 years old, usually retired

or near retiring, has at least completed year 12 and an annual income of between $20,000 to $40,000,

owns their own homes or nearly finished paying off their mortgage. These target consumers (i.e.

Empty Nesters) would also pay attention to their appearance, are both environmentally aware and

price conscious, but would buy well priced brand name products.

3.2 ARAMIS LIFE (Golden Oldies)

Aramis brand range is one of the oldest brands started by Estee

Lauder group, and it is still owned and marketed by Estee Lauder. This

brand was started in 1964 to exclusively target and serves the male

demographics, which was the first brand to do so in the cosmetics

industry. However, as time went by, more and more companies tried

to mimic the success of Aramis brand, by introducing special men only products. The male cosmetics

industry/perfume market competition grew stronger over the years, and really picked up after the late

1980s, as male population started to pay more attention to their looks. While, Aramis constantly

released more products to appeal to wider demographics, it is however unsuccessful at targeting

consumers below the age of 30 years old. These younger demographics tend to favour perfume

products by more youthful companies, such as Calvin Klein or Tommy Hilfiger, since these brand

appears to possess more passion and energy, which Aramis appears to lack.

Currently, Aramis products only targets people who are above the age of 30 years old, with core

market audience ranging from 35 to 65+ years of age, with many whom may already have retired. The

strong smell of some Aramis cologne dissuades many younger consumers, whom like lighter and

sweeter smelling perfume/cologne products. Currently, Estee Lauder still manufactures and markets

many of the classic Aramis Cologne, making it appealing to consumers whom does not like to change

their product and is unaffected by latest fads. ‘Golden Oldies’ may prefer the Aramis brand of cologne,

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since it is an established brand, and most of its products are ‘tried and true’, as Aramis rarely change

their product line or release new products.

3.3 Intimately BECKHAM (The Bachelor Pad Shopper)

Intimately BECKHAM (IB) is a brand of perfumes started by David

Beckham, the famous English footballer, whom many men aspire to

be, as a person whom possess style, look, and successes in both

career and family life. The IB cologne are targeted at men between

the age of 18 to 39 years old having at least finished high school,

pursuing a full time career in both professional and para-professional position, with an annual income

of above $40,000, and are either are living alone or in a steady relationships.

The IB target consumers also pay a lot of attention to their styles and looks, likes to stand out from

the crowd and would expect people to take their opinions seriously, as they considers themselves to

be an intellectual. These people also believe that hard works are rewarded (much like Beckham) and

wants to be perfectly groomed without too much fuss. Bachelor Pad Shopper fits the demographics

and psychographic profiles that are targeted by the Intimately Beckham cologne range, since the

product offers convenience, brand power, styles and advertised in a way that appeals to them.

3.4 Calvin Klein One (The Shared Household Shopper)

Calvin Klein (CK) brand currently owned and marketed by Phillips-Van

Heusen, is a major fashion brand, comparable to Ralph Lauren and Tommy

Hilfiger. The fragrance license marketed under the CK brand name is

currently owned by Coty Inc, whom bought the rights from Unilever in 2005.

The CK brand is famous for its ‘minimalist’ design in both men and female

wears and perfumes range, this is quite evident in their perfume bottle packaging. From very early on,

CK has marketed its product to the younger demographics, as many of the models on its

advertisements, were ‘muscular’ adolescents and male below 30 years of age. This specific targeting

of younger demographics, worked quite perfectly as many youth flocked to its perfume and

underwear range. It is considered fashionable to show part of the CK underpants, with that famous

‘Calvin Klein’ tagged elastic band sticking out of the pants.

CK perfumes are both cheaper and larger in size than its competing products, which all targets a youth

audience whom loves the fashion brand, but have limited income like many ‘Shared Household’

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shoppers are. Those male whom most likely to purchase CK products are usually aged between 15 to

30 years old, still going to school or just left school and started working, and has an annual income of

below $30,000 and renting. These people also want to look good (exercises regularly), be career

orientated, multicultural, and aspire to finer things in life.

3.5 GUCCI (Double Income No Kids)

GUCCI brand of cosmetics and perfumes is owned by Gucci Group,

which is in terms owned by the French luxury label company Pinault-

Printemps-Redoute (PPR), comparable to LVMH. Gucci is a globally

renowned fashion label that produces, or markets luxury products

under its own brand name, ranging from watches to perfumes.

Gucci’s core consumer demographics are between the ages of 25 to 39 years old, with personal yearly

income of above $70,000, well educated (i.e. degrees), works full time in professional or manager

roles, married or have a stable relationship, and owns home or paying off the mortgage. To these

people, image and success are all very important, therefore they love buying designer label products

and keeps up with the latest fashions. The Gucci consumer demographics are prepared to pay more

money for the quality designer branded products. Therefore, the DINKS men forms a part of the core

demographic and psychographic groups that Gucci actively targets for their cologne range.

3.6 Tommy Hilfiger (Super Dad)

Tommy Hilfiger Corporation which owns the Tommy Hilfiger brand, is itself

owned by the PPR, whom also owns Gucci. This brand of fashion goods and

perfume are in the same class as Calvin Klein and Ralph Lauren, which is both

fashionable and good value, compared to more expensive luxury goods brand,

such as, Gucci, YSL, etc.

Tommy Hilfiger’s cologne core consumer demographics would be between the ages of between 25 to

50 years old, married, annual income of above $40,000, well educated, working full time and owns

home or paying off mortgage. These male customers would also be career focuses, well groomed,

financially savvy, and is willing to pay more for brand name but still seeks value. The ‘Super Dad’

shoppers would one of the consumer segments that is targeted by the Tommy Hilfiger Colognes, since

they are big on value and is a well known brand label.

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4. Magazine Advertisements

Figure 1. An advertisement for the Mercedes Benz E Class. (www.mercedes-benz.com)

4.1 Murray’s list of human needs

Murray’s list of human needs was compiled by the American psychologist Henry Murray, whom

developed a theory of personality that was organized in terms of motives, presses, and needs. He

described the needs as a, “potentiality or readiness to respond in a certain way under certain given

circumstances’. Theories of personality are based upon needs and motives suggest that our

personalities are a reflection of behaviours controlled by needs. While some needs are temporary and

changing, other needs are more seated in our nature. According to Murray, these psychogenic needs

function mostly on the unconscious level, but can play a major role in our personality.

There are two types of needs, the primary needs and secondary needs. The primary needs are

based upon biological demands, such as the need for oxygen, food and water, while the secondary

needs are generally psychological, such as the need for nurturing, independence, and achievement.

Murray’s lists of human needs are basically lists of psychogenic needs that can make human feels

satisfied and fulfilled psychologically. According to Murray’s lists of human needs, there are 6 types of

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needs that can satisfy a person. These needs can be associated with inanimate objects, needs that

reflect ambition, power, accomplishment and prestige, needs concerned with human power, sado-

masochistic needs, needs concerned with affection between people and finally needs concerned with

social intercourse.

Table 1. List of Murray’s needs.

Domain Need for Representative Behaviour

Ambition

Achievement Recognition Exhibition

Overcoming obstacles Describing Accomplishments

Attempting to shock or thrill others

Inanimate Objects

Acquisition Order

Retention Construction

Obtaining things Making things neat and orderly

Hoarding things Building something

Defense of Status

Infavoidance Defendance

Counteraction

Concealing a handicap or a failing Cooperating with or obeying someone

Building something

Human Power

Dominance Deference Autonomy

Contrariance Aggression Abasement

Blame avoidance

Directing others’ behaviour Cooperating with or obeying someone

Standing up to authority Being oppositional

Attacking or belittling others Apologizing or confessing

Stifling blameworthy impulses

Affection between people

Affiliation Rejection

Nurturance Succorance

Play

Spending time with others Snubbing others

Taking care of someone Being helped by another

Seeking division through others

Exchange of Information Cognizance Exposition

Asking questions of others Delivering information to others

The Mercedes-Benz car advertisement appeals most to the ‘bachelor pad shopper’, ‘the sex

and the city shopper’, and the ‘double income no kids shopper (DINKS)’ shopper profiles.

4.1.1 The Bachelor Pad Shopper

The bachelor pad shoppers are men mainly aged between 18-54 (core 25-39) years old. They are a mix

of career focused professionals, para-professionals and tradies, whom like to stand out from the

crowd and like to think hard work is rewarded. The Mercedes-Benz car advertisement would appeal to

them, because the possession and usage of this product appeal to the domains of ambition and

defense of status. Mercedes-Benz is a prestigious luxury car that stands out from the rest of the crowd;

therefore it satisfies their needs for power, accomplishment, prestige and counteraction.

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4.1.2 The Sex and the City Shopper

The ‘sex and the city shoppers’ are females whom are aged between 18-39 (core 25-39) years old,

whom like brands, quality and the ‘latest, greatest, sexiest’ products. They go for the finer things in life

and are very outgoing with very active social lives. The Mercedes-Benz advertisement appeals to the

‘sex and the city’ shopper, because Mercedes are very stylish and prestigious motor vehicles. The car

advertisement would appeal to the domains of ambition, inanimate objects, defense of status, and

affection between people. More specifically, the Mercedes Benz car advertisement would more

specifically appeal to the needs for recognition, exhibition, acquisition, Infavoidance, affiliation and

play.

4.1.3 The Double Income No Kids Shopper (DINKS)

The Double income no kids shopper (DINKS) are male and female couples aged between 25-39 years

old. The household income is usually more than $140k + (8% over $200K). Personal image and career

success are both very important to the DINKS, and their car appearance is a way to display these

personal desires and accomplishments. The Mercedes-Benz advertisement appeals to DINKS’ domain

of ambition and affection between people. More specifically the ad appeals to the need for

achievement, recognition, exhibition, Infavoidance and affiliation.

4.2 Maslow’s hierarchy of needs

Maslow’s hierarchy of needs is a well-known theory of human motivation that was developed by

Abraham Maslow. The hierarchy of needs is separated into 5 hierarchy steps; at the bottom of the

hierarchy is a psychological need, which is the first and most basic level. Once you have satisfied the

psychological needs, such as food, water air, shelter, clothing and sex. You move to the second stage

of the hierarchy, which is safety and security needs. These needs consist of things such as protection,

order and stability. The next step (the third step) on the hierarchy of needs are social needs, and they

are affiliated with affection, friendship and belonging. The fourth steps are your ego needs, which are

consisted of prestige, status and self-respect, and the final fifth step of the hierarchy list is self

actualization, which is at the top of the hierarchy. Not many people reach the fifth stage of the needs

hierarchy, because self actualization is the feeling of self fulfillment, where you feel that you have

accomplished all the things that you wanted to achieve. Simply put, not many people could ever

satisfy their ego needs.

From our analysis, the Mercedes-Benz car advertisement would appeal most to ‘the bachelor

pad shopper’, ‘the sex and the city shopper’, and the ‘double income no kids shopper (DINKS)’ profiles.

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4.2.1 The Bachelor Pad Shopper

Referring to Maslow’s hierarchy of needs, the Mercedes-Benz advertisement is presumed to satisfy

bachelor pad shopper’s ego needs, consisting of both the inward and outward orientation. The inward

directed ego needs of the bachelor pad shopper, consists of self-esteem, success, independence and

personal satisfaction with their life and careers; as these type of shoppers like to think that hard

works get rewarded. While, outwardly directed ego needs of this shopper profiles, include the need

for prestige, reputation, status and recognition from others. These shoppers are into designer labels

that get them noticed and like people to take their opinions seriously, as they consider themselves to

be intellectuals. They like to show off their successes and achievements in life, through the material

possession of prestigious car, as a way to make them feel important and influential.

4.2.2 Double Income No Kids (DINKS)

The Mercedes car advertisement, appeals to both the ego and the social need of the DINKS profile

shoppers. These people are usually employed in high position jobs, such as managerial, marketing,

banking finance and law, etc, where image and success are very important to them. The DINKS likes

home renovation, designer labels and keeping up with latest fashions, and having prestigious motor

vehicles to keep up with their appearance is also very important, as this is used to communicate to

others their successes and social status. The Mercedes car advertisement communicates to both the

inward and outward orientation of the ego needs, where inward needs are concerned with the

success, self-esteem, independence and personal satisfaction. While, the outward needs are

concerned with the need for prestige, reputation, status and recognition from others, as these people

have a desire to ‘show off’ one’s success and achievements through material possessions.

4.2.3 The Sex and the City Shopper

‘The Sex and the City Shopper’ love brands, quality and the ‘latest, greatest, sexiest’ fashion/brands,

they want the finer things in life and try to look ‘good’ and stylish at all times. They have very active

social lives, love going out and stand out from the crowd; they are proud to live up the responsibilities

of life, and believe that hard work is rewarded. They love to be the first to try any new products, and

would purchase products that have quality, style and the ‘must have’ factor.

The Mercedes-Benz advertisement is presumed to appeal to the ego and social needs of the

‘sex and the city shopper’, since they want to feel the sense of belonging and acceptance within a

specific social group through the use of certain product brand. From the ego needs point of view, the

car advertisement appeals to both the inward and outward orientation. Inward directed ego reflects

the need for self-acceptance, self-esteem, success, independence and personal satisfaction, while the

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outwardly directed ego needs, include the need for prestige, reputation, status and recognition from

others. The ‘sex and the city’ shopper have the high tendency to show off one’s success and

achievement through material possessions, and the desire to purchase Mercedes car is due to the

need to feel important and influential in her social group.

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References

1. http://www.fragrancex.com/products/_cid_perfume-am-lid_R-am-pid_1099W__products.html

2. http://en.wikipedia.org/wiki/Estée_Lauder_Companies

3. http://en.wikipedia.org/wiki/Revlon

4. http://en.wikipedia.org/wiki/The_Body_Shop

5. http://www.loreal-finance.com/site/us/contenu/rapport/rapport2005/Active_Cosmetics.pdf

6. http://www.loreal.com/en/ww/brands-l-oreal.aspx

7. http://en.wikipedia.org/wiki/L'Oréal

8. http://en.wikipedia.org/wiki/LVMH

9. https://www.fragranceglobe.com/brandPerfume-65.html

10. http://en.wikipedia.org/wiki/Calvin_klein

11. http://en.wikipedia.org/wiki/Gucci

12. http://en.wikipedia.org/wiki/Murray's_system_of_needs

13. http://psychology.about.com/od/theoriesofpersonality/a/psychogenic.htm

14. Schiffman, L et al. (2008), Consumer Behaviour 4th Edition, Pearson Education Australia.