Ch. 8 - Segmenting and Targeting Markets

Each and one of us is a unique individuality with his/her own needs and wants. However, consumer markets as well as business markets has similar characteristics that make them to desire similar products. Therefore most successful organizations practice market segmentation, which contribute to better overall functioning of the firm. Lancome uses specific strategy for market segmentation called demographic segmentation which divides market into groups based on demographic aspect, such as gender and age. It helps Lancome to better target its consumers.


Lancome is originated as a perfume company, but the company has grown rapidly and later expanded its offering to cosmetic and skincare products for men and women. Its women's collection is much broader than men, where men's collection is directed mostly to older men.The company wanted to diversify from its status as a leading women's skincare manufacturer by using its expertise and technology to discover the differences between men and women aging process. In
2007 they launched skin care range, first in Europe and not a long later it entered the US market, that is specific to the male consumer. Targeting the older male generation, was a smart move by the company, because figures show ,that the senior consumer group is the fastest spending group in US and European markets.

In women's sector Lancome focuses on both, older and younger women. The company's older female consumers are interested mostly in intensive skin products; such as wrinkle release and anti-aging. The younger women seek for more basic products; such as proactive skin care products. In 2011 Harry Potter beauty, Emma Watson became the new Lancome's youngest ambassador. She launched Rouge in Love Lipstick campaign, which was aiming to lure young customers away from gloss and back to lipstick. Watson had brought a fresh spirit to the brand which contributed to gaining younger consumes.