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Group Assignment on Marketing Management

ESSAY ON KORRES NATURAL PRODUCTS CASE STUDY

1. How would you segment the cosmetics industry? What segment is Korres targeting?

Cosmetics are products which are used to enhance one’s appearance and odour. It is this human need to be liked and accepted by people around us that makes the cosmetics industry a truly universal market both in terms of influence and overall sales with only a few exceptions, mainly religious, cultural and belief based. In fact, the cosmetics industry is among the largest in the world with an annual turnover upwards of 17(0) billion dollars (Eurostaf – May 2007), whilst Worldwatch reports that worldwide annual expenditures for cosmetics total U.S. $18 billion; the …show more content…

Value in this case is not limited to price but also to social, environmental and quality standards. This can be either a man or a woman, usually well educated, reasonably well off, urban and with an increased awareness of social, environmental issues. To Picky Pat the brand name is immaterial if the product has been tested on animals, he or she would not object to pay more for an all natural healthy product yet he or she would also not shy away from buying a less known brand if the price was right.

Korres Natural Products, as the name implies, focuses on all natural cosmetic products ranging from make-up and body lotions to hair products, sunscreens and even skin care for men. Quite clearly the company has a wide range of cosmetic products which are enough to satisfy all segments with respect to their function (beautification, cleanliness etc), but more specifically the Korres products, in terms of the segments described above, would have a greater appeal to the Health Freak (see above) segment of the market. The Korres products are all natural and are quite affordable. This means that they have the potential to cross-over, to a lesser or a greater degree, into other sections of the market quite easily and therefore although primarily aimed at the Health Freak segment of the market, the Korres Natural Products could also be appealing