Marketing Segmentation and Consumer Needs_Final_2010

2010 Marketing Segmentation and Consumer Needs

Wen Li Xiao Ying Wang Bouy Lim Ray Uamang

Diploma of International Business

Marketing Segmentation and Consumer Needs 2010 Table of Contents 1.

2.

3.

4.

Laundry Detergents................................................................................... 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

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

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

Magazine Advertisements 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).............................................................................................. (DINKS).............................................................................................. 21 4.2.3 The Sex and the City Shopper ................................................................................................. .................................................................................................21 References ........................................................... ................................................................................................................................. .................................................................................... ..............23

Diploma of International Business | Box Hill TAFE 1

Marketing Segmentation and Consumer Needs 2010 This page is intentionally left blank

Diploma of International Business | Box Hill TAFE 2

Marketing Segmentation and Consumer Needs 2010 1. Laundry Detergents Product

Description

BIOZET Attack Laundry Powder With Softener Top Load 1kg

Target Audience

The Sex and the City Shopper

$10.89

Cold Power Advanced Laundry Powder 1kg

Golden Oldies

$10.89

Dynamo Laundry Powder Ultra Front Loader With SARD 1kg

The Bachelor Pad Shopper

$11.49

DUO Laundry Powder Ultra Concentrate 2.5kg

The Shared Household Shopper

$12.89

Omo Laundry Powder 2x Concentrate 875g

Double Income No Kids (DINKS)

$9.41

Woolworths Select Laundry Powder Concentrate 1kg

Soccer Mums

$7.07

 Aware Eco Choice Laundry Powder Concentrate 1.5kg

Empty Nesters

$8.06

Radiant Micro Max Colour With 20% Extra Free 1.2kg

Super Dad

$6.99

Diploma of International Business | Box Hill TAFE 3

Marketing Segmentation and Consumer Needs 2010 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’ shopper s, 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.

Diploma of International Business | Box Hill TAFE 4

Marketing Segmentation and Consumer Needs 2010 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 ColgatePalmolive, 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 ‘Bac helor 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

Diploma of International Business | Box Hill TAFE 5

Marketing Segmentation and Consumer Needs 2010 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 be nefits 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

Diploma of International Business | Box Hill TAFE 6

Marketing Segmentation and Consumer Needs 2010 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 valuefor-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.

Diploma of International Business | Box Hill TAFE 7

Marketing Segmentation and Consumer Needs 2010 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.

Diploma of International Business | Box Hill TAFE 8

Marketing Segmentation and Consumer Needs 2010 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

Diploma of International Business | Box Hill TAFE 9

Marketing Segmentation and Consumer Needs 2010 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

Diploma of International Business | Box Hill TAFE 10

Marketing Segmentation and Consumer Needs 2010 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,

Diploma of International Business | Box Hill TAFE 11

Marketing Segmentation and Consumer Needs 2010 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 c lassic range of cosmetics product that is sstill

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

2.4 L’OREAL P ARIS (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 suitabl e 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 pricin g

(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 ma in 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

Diploma of International Business | Box Hill TAFE 12

Marketing Segmentation and Consumer Needs 2010 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.

Diploma of International Business | Box Hill TAFE 13

Marketing Segmentation and Consumer Needs 2010 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

Diploma of International Business | Box Hill TAFE 14

Marketing Segmentation and Consumer Needs 2010 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,

Diploma of International Business | Box Hill TAFE 15

Marketing Segmentation and Consumer Needs 2010 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’

Diploma of International Business | Box Hill TAFE 16

Marketing Segmentation and Consumer Needs 2010 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 PinaultPrintemps-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.

Diploma of International Business | Box Hill TAFE 17

Marketing Segmentation and Consumer Needs 2010 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 m otives 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 

Diploma of International Business | Box Hill TAFE 18

Marketing Segmentation and Consumer Needs 2010 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, sadomasochistic 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.

Diploma of International Business | Box Hill TAFE 19

Marketing Segmentation and Consumer Needs 2010 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 t hings 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.

Diploma of International Business | Box Hill TAFE 20

Marketing Segmentation and Consumer Needs 2010 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 r esponsibilities 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

Diploma of International Business | Box Hill TAFE 21

Marketing Segmentation and Consumer Needs 2010 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.

Diploma of International Business | Box Hill TAFE 22

Marketing Segmentation and Consumer Needs 2010 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 4 th Edition, Pearson Education Australia.

Diploma of International Business | Box Hill TAFE 23