CHAPTER-1

INTRODUCTION OF THE

STUDY
Market Segmentation

Market segmentation is a marketing term that refers to aggregating prospective buyers into groups
or segments with common needs and who respond similarly to a marketing action. Market
segmentation enables companies to target different categories of consumers who perceive the full
value of certain products and services differently from one another.

Market segmentation seeks to identify targeted groups of consumers to tailor products and branding
in a way that is attractive to the group. Markets can be segmented in several ways such as
geographically, demographically, or behaviourally. Market segmentation helps companies
minimize risk by figuring out which products are the most likely to earn a share of a target market
and the best ways to market and deliver those products to the market. With risk minimized and
clarity about the marketing and delivery of a product heightened, a company can then focus its
resources on efforts likely to be the most profitable. Market segmentation can also increase a
company's demographic reach and may help the company discover products or services they hadn't
previously considered. Market segmentation is an extension of market research that seeks to
identify targeted groups of consumers to tailor products and branding in a way that is attractive to
the group. The objective of market segmentation is to minimize risk by determining which products
have the best chances of gaining a share of a target market and determining the best way to deliver
the products to the market. This allows the company to increase its overall efficiency by focusing
limited resources on efforts that produce the best return on investment (ROI).
Market segmentation is evident in the products, marketing, and advertising that people use every
day. Auto manufacturers thrive on their ability to identify market segments correctly and create
products and advertising campaigns that appeal to those [Link] producers market actively
to three or four market segments at a time, pushing traditional brands that appeal to older consumers
and healthy brands to health-conscious consumers, while building brand loyalty among the
youngest consumers by tying their products to, say, popular children's movie themes. A sports-
shoe manufacturer might define several market segments that include elite athletes, frequent gym-
goers, fashion-conscious women, and middle-aged men who want quality and comfort in their
shoes. In all cases, the manufacturer's marketing intelligence about each segment enables it to
develop and advertise products with a high appeal more efficiently than trying to appeal to the
broader masses. Market segmentation is a marketing strategy in which select groups of consumers
are identified so that certain products or product lines can be presented to them in a way that appeals
to their interests. Types of segmentation include homogeneity, which looks at a segment's common
needs, distinction, which looks at how the particular group stands apart from others, and reaction,
or how certain groups respond to the market. Strategies include targeting a group by location, by
demographics—such as age or gender—by social class or lifestyle, or behaviourally—such as by
use or response.

Marketing involves a number of functions in order to achieve its target. The word marketing is
derived from ‘market’ which may be looked upon as an arena for potential exchange, i.e. a place
where products can be exchanged by money or anything else. The new concept of marketing
focuses on consumer’s satisfaction by producing goods and services. Marketing is a wider term
and the term market and market segmentation is a part of marketing. Market segmentation has a
wider meaning than the term target marketing. Before defining market segmentation, we should
know the meaning of target marketing. Target marketing involves breaking down the entire market
into various segments and planning marketing strategies accordingly for each segment to increase
the market share. Instead of trying to reach an entire market, a brand uses target marketing to put
their energy into connecting with a specific, defined group within that market. The area where
company wants to sell its end products to the end consumer is known as Target Market. Target
market and target marketing are two different terms. Target market basically relates with the place
or area and target marketing refers to the process or activities. There are three interrelated concepts
which form the basis for successful implementation of target marketing, these ideas are relate to
customer needs, organization objectives and competitive advantages.

A market is defined to be people or organizations with needs or wants and the ability and
willingness to buy. These markets are composed of different market segments, a market segment
is a subgroup of people or organizations sharing one or more characteristics that cause them to have
similar product needs. Therefore, when the market is divided into meaningful, relatively similar
and identifiable segments or groups it is called market segmentation. The main objectives of
segmenting the markets is to know about the varying buying behaviour of the consumers so that
target consumers can be reached easily by framing various marketing programmes based on such
differences of the consumers. Market segmentation enables the entrepreneur to match his marketing
efforts to the requirements of the target market. Instead of wasting his efforts in trying to sell to all
types of customers, a small-scale unit can focus its efforts on the segment most appropriate to its
market.

It is built around the consumers. In other words, the company analyse the needs of the consumers,
and the group of these consumers who have similar needs. It tries to satisfy those needs by having
common marketing program, without such segmentation, market program becomes haphazard and
they lead the company nowhere. A small company with limited resources can select a particular
group of consumers and market its products efficiently by selecting the marketing mix suitable that
group.
Market segmentation helps the marketer to know the marketing opportunities well in time which
helps to understand the needs of each segment against the products and thus position his/her
products in a better way to satisfy the consumers. Because of the segmentation sellers can create
separate marketing programmes which helps in fulfilling the needs of the different buyers. The
sellers can make better adjustments of his products and marketing appeals. It helps to know the
level of competition in each segment. If the competitor has strong hold on one segment, then there
is no use in wasting one segment. However, where competitor’s product fail to satisfy the target
group, the management can penetrate in it.

Segmenting the market can be beneficial when these segments are used to make separate
marketing programmes for each segment and implementing them. There are various factors
which should kept in mind while segmenting the market for their effectiveness. Some factors
are identifiable, measurable, accessible, substantiable etc. The broadest basis for segmenting
market is separating the final consumer from industrial users. Final consumer differ significantly
from industrial users and as such separate marketing programmes are required for each of the
two segments. The consumers market can be segmented on the basis of consumer characteristics
like geographic, demographic, Psychographic or on the basis of consumer responses such as
benefits sought, use, occasions and brand loyalty which together form a segment called
Behavioural segmentation. This is the most purposeful and commonly used base for the
segmentation of market. Some of the characteristic which may use in this category are gender,
age, occupation, income, education, family life cycle and religion. Every Individuals) are
grouped in terms of these similarities. These characteristics are commonly used to divide
markets, especially since they are readily measured through observation.

Geographic is simple, yet powerful segmentation basis. Under this, the segmentation of market is
based on different regions or areas. The market is divided into and urban, a regional manufacturer
may segment into zones like north, south, east and west whereas national manufacturer may
Classify in terms of states, district, cities, towns etc. The variations in consumption patterns may
due to cultural heritage, urbanization, population density, climate and many more.

The three most common factors under this category are personality characteristics, motives and
lifestyles. Basically, this category focuses on the human characteristics of consumers. It is a method
of segmenting market by diving customers into group on the basis of their shared personality traits,
beliefs, values, attitudes, interests and lifestyles and other factors. This segmentation is used for
better understanding of their customers and to improve their marketing. The segmentation of
market is followed in each and every sector either industry or a management. The Indian cosmetic
industry is continuously witnessing firm growth over the past years. Indian cosmetic industry is
driven by the high personal disposable income of people, rising awareness towards body aesthetics,
coupled with increasing demand for herbal himalayas wellnesss. Our Indian cosmetics market
report comprises of the following companies as the key players
CHAPTER-2

INDUSTRY PROFILE
COSMETICS INDUSTRY

The cosmetic industry describes the industry that manufactures and distributes himalayas
wellnesss. These include colour cosmetics, like foundation and mascara, skincare such as
moisturisers and cleansers, haircare such as shampoos, conditioners and hair colours, and toiletries
such as bubble bath and soap. The manufacturing industry is dominated by a small number of
multinational corporations that originated in the early 20th century, but the distribution and sale of
cosmetics is spread among a wide range of different businesses. The largest cosmetic companies
are Johnson & Johnson, L’Oréal Paris, Gillette, Neutrogena, Nivea and Chanel, Inc. The market
volume of the cosmetics industry in Europe and the United States is about EUR €70b per year,
according to a 2005 publication.[1] The worldwide cosmetics and perfume industry currently
generates an estimated annual turnover of US$170 billion (according to Eurostaf – May 2007).
Europe is the leading market, representing approximately €63 billion
BY REGION

Within the United States, the state of California has the largest concentration of beauty
establishments in America at 25.5%, followed by New Jersey at 8.1% of American beauty
establishments.[2] Since 2016, the number of cosmetic stores rises between 3 and 4% each year and
employment in this division is rising each year 13-16%.California has the largest concentration due
to social media marketing from celebrities and ‘beauty gurus’. For example, Kylie Jenner's
company Kylie Cosmetics, is valued at $800 million and sold an estimated $330 million worth of
makeup in 2017. YouTube and social media influencers Jeffree Star (Jeffree Star Cosmetics), and
Michelle Phan (Ipsy), and pop-star Rihanna with her Fenty Beauty line of cosmetics, have also
contributed to California's rising popularity in the beauty industry.

Because the US dollar is so valuable to other countries around the world, it has become extremely
expensive for most countries to import American beauty products and to export their own
products to America. However, there are a few countries with beauty products that are in popular
demand in America due to their quality and value including France, Canada, Italy, and the United
Kingdom. As of 2018, “These four countries account for 45.2% of all industry imports as
domestic consumers demand luxury products”. [2] South Korean and Japanese skincare products
which are designed to be more gentle and innovative, are also becoming more popularized in the
United States due to their quality and affordability. The U.S has held the same regulation over
this industry since 1938 under the FD&C Act, which has gained additional amendments over
time.[3]

Canada
Canada is a big influencer in the American beauty industry due to its proximity to the United
States and because it falls under the North American Free Trade Agreement (NAFTA). This
agreement “eliminates most tariffs on products traded between Canada, Mexico, and the United
States,"[4] and allows Canada to trade superfluously. Canada accounts for an estimated 13.6% of
imports and 19.9% of cosmetic exports in 2018.[2][citation needed]Because Mexico also benefits from
the NAFTA trade agreement, they represent another top cosmetic importer and exporter for
lower-priced beauty products which are manufactured in mass and sold in large drug store chains
in America.[citation needed]

France
Cosmetic sales in France reached €6.5 billion in 2006, according to FIPAR (Fédération des
Industries de la Parfumerie – the French federation for the perfume industry). [5] France is another
country in which the cosmetic industry plays an important role, both nationally and
internationally. Most products with a label, "Made in France" are valued on the international
market. According to data from 2008, the cosmetic industry has grown constantly in France for
40 consecutive years. Famous cosmetic brands produced in France include Vichy, Yves Saint
Laurent, Yves Rocher, Bioderma and L'Oreal. L'Oreal is known for its mass production of hair
and makeup products which are produced in mass and sold in drug stores in America as well as
internationally. L'Oreal has gained popularity especially due to its app Makeup Genius which
allows users to try on makeup using their phone camera in addition to working with Los
Angelesbased NYX Cosmetics and Estee Lauder's MAC Cosmetics, L'Oreal is one of the leading
cosmetic brands in the United States. According to the company's latest financial report of 2017,
North America accounted for 13.6% of the company's global cosmetic sales. [6]

Germany
In Germany, the cosmetic industry generated €12.6 billion of retail sales in 2008,[6] which, at the
time, made the German cosmetic industry the third largest in the world after Japan and the United
States. It has been shown that Germany's cosmetic industry grew nearly 5 percent in one year,
from 2007 to 2008. German exports in this industry reached €5.8 billion in 2008, whereas imports
of cosmetics totaled €3 billion.[6] Germany gains most of its imported cosmetics from France,
Switzerland, the United States and Italy.

Belarus
The Belarusian cosmetics market consists of Belarusian companies. There are more than 20
cosmetic companies in Belarus - Vitex, Lux Visage, Cosmetics.
The volume of the cosmetic market is more than 300 million euros per year.
Asia
The cosmetic industry in Asia is mainly dominated by regional cosmetic brands. Shiseido Co.
LTD, A popular cosmetic brand based in Japan, has 82.1% of its sales in Asia. [7] No other
Western company in the top 10 match these kinds of regional sales. Furthermore, geographic
dispersion of sales by Asian cosmetic companies in Asia accounted for 92.42% of sales, while
geographic dispersion of assets of Asian cosmetic companies in Asia was 87.05%. [7] Western
cosmetic companies often have failed to gain footholds in various countries. For example, in
Japan, many advertisement campaigns that find success in the West, such as celebrity
appearances and references to science, did not sway a sample group of respondents to purchase
the foreign brands. However, despite the lack of Western cosmetic presence, the growing trend of
“fair skin”, or whiting one's skin, can expose consumers skin to harmful chemicals when using
“fairness creams”.

Due to recent significant economic growth in many Asian markets, regulation pertaining to
chemicals in himalayas wellnesss has been lacking. SK-II, a himalayas wellness owned by P&G,
was found to contain banned heavy metals in China in 2006. Another study found that women
who had recently moved to Vancouver, Canada from East and South Asia had higher levels of
lead in their blood than South and East Asian immigrants who had been living in Canada for
longer. One of sources of lead was determined to be some facial powders marketed in various
regions of Asia.

Fashion design collaboration

Due to the popularity of cosmetics, especially fragrances and perfumes, many designers who are
not necessarily involved in the cosmetic industry came up with different perfumes carrying their
names. Moreover, some actors and singers have their own perfume line (such as Celine Dion).
Designer perfumes are, like any other designer products, the most expensive in the industry as the
consumer pays not only for the product but also for the brand.
Marketing
The cosmetic industry worldwide seems to be continuously developing, now more than ever with
the advent of the Internet companies. Many famous companies sell their himalayas wellnesss
online also, in countries in which they do not have representatives.

Research on the email marketing of cosmetics to consumers suggests they are goal-oriented with
email content that is seen as useful, motivating recipients to visit a store to test the cosmetics or
talk to sales representatives. Useful content included special sales offerings and new product
information rather than information about makeup trends.

CONTROVERSIES
Colorism

Many companies advertise white or light skin as not only a cosmetic change, but a lifestyle
change. White beauty implies a lifestyle of “sophistication, beauty, power, and wealth.” Mass
advertising and marketing from the US and Europe, as well as multiple mass media forms are
used to reach other cultures to influence their purchasing habits. Many of the skin lightening
products sold usually have celebrity endorsements, further increasing sales and the desire for
lighter skin. These products can cause serious damage to skin and pose a health risk to the
consumer.

In a study done by S. S. Agrawal and Pallavi Sharma on eleven skin lightening products sold in
India, it was found that “mercury was detected in all the samples of the skin lightening creams in
the range of 0.14–0.36 ppm.” This study also observed that none of the brands tested include
mercury as an ingredient on the packaging, which may mislead consumers regarding health risks.
In a report by the World Health Organization, it was stated that “skin whitening products can
cause leukaemia, liver and kidney cancer and could also result in severe skin conditions.”[15]
Though these health risks exist, women of colour in many parts of the world are purchasing
skin lightening creams.

Chroma and Prelacy’s survey of women of colon in the US and India “show[s] that chronic
surveillance of skin tone predicts skin tone dissatisfaction and skin bleaching.” Some companies
in the cosmetic industry have capitalized off of the cultural pressure and standards for having
lighter skin. This study concluded that “skin bleaching is not merely a physical or aesthetic
change, but one with potentially wide-ranging implications on psychological well-being and,
more broadly, the perpetuation of racist ideologies and beauty standards.”

Impact on environment

Some components found in cosmetics, as well as their production, have been found to have
negative environmental impact. For example, Palm oil is found in lipstick, and shampoo. Palm oil
is connected to the destruction of forests and habitats of endangered species, including
orangutans, tigers, elephants, and rhinos.

Animal testing

Animal testing has been a large controversy in the cosmetic industry. Animal tests performed
include the Draize eye irritancy test, where test chemicals are applied to rabbits’ eyes and left on
for several days,[23] and toxicity tests such as LD50, where a substance's toxicity is tested by
determining the concentration at which it will kill 50% of the test animals. [24]

Due to public outcry as well as financial and temporal considerations, animal testing in cosmetics
has steadily been decreasing over time and replaced with non-animal tests.[25] One of these
nonanimal tests is the Environmental Protection Agency’s Toxicant which has a similar accuracy
compared to animal tests but achieves results with fewer economic costs and less time.

An EU ban of marketing which have been tested on animals became effective in 2013. There are a
few exceptions to this law. Animal testing data for cosmetics can be used if the data for the
ingredient used in the cosmetic originated from testing for. Secondly, if a country outside of the
EU requires animal testing and the wellness was tested in that country, the ban also does not
apply. Cosmetic tests on animals are still legal in several countries, such as the US, Japan, Russia,
and China.

There are a number of cosmetics companies that claim they are “cruelty-free,” such as Bath &
Body Works, Aveda, ELF, and Milani, but some argue that because the label of “cruelty-free”
both lacks regulation and standardized third-party certification, it has little real weight. Brands
that claim to be cruelty free often advertise this with a logo of a rabbit on their products.

In some cases, cosmetic testing is done on humans, which also leads to a related discussion of
best practices and ethics.
Labour rights and sociology
A number of studies have focused on social issues such as labour rights and sociology of the
body. Research has found that some retail stores have discriminatory hiring practices and prefer
to hire class-privileged workers to promote their upscale image.
 CHAPTER -3

COMPANY PROFILE
Himalaya Company

Himalaya Wellness Company (formerly Himalaya Drug Company) is an Indian multinational

pharmaceutical company based in Bengaluru, Karnataka, India. It was originally established by
Mohammad Manal in Dehradun in 1930.[2] It produces health care products under the name
Himalaya Herbal Healthcare whose products include ayurvedic ingredients. It is spread across
locations in India, United States, Middle East, Asia, Europe and Oceania,[3] while its products are
sold in 106 countries across the world. [4] The company has more than 290 researchers that utilise
ayurvedic herbs and minerals.[5] A hepatic drug, named Liv.52, is its flagship product, first
introduced in 1955.[4][6]Himalaya Global Holdings Ltd. (HGH), is the parent of The Himalaya
Drug Company worldwide. It is also the global headquarters of all Himalaya subsidiaries. The
Himalaya Drug Company was founded by Mohammad Manal, a nature lover, in Dehradun in the
1930s. Manal had the goal of commercialising Ayurvedic and herbal products to suit contemporary
needs, by focusing on modern empirical research to demonstrate their
efficacy. [2][7]

The company moved to Bombay (Mumbai) in the 1950s. In 1955, it launched 'Liv.52', a
hepato[Link] that became the flagship product
of the company. [2]

In 1975, Maraj Manal, Mohammad Manal's son, started a manufacturing unit in Bangalore, which
helped the company grow its manufacturing capacity as well as to globalise.
As at 2022, the company has offices across the globe, including India, the US, South Africa and
other countries in Europe, Middle East, and Asia.

In 1996, the company entered the US market following the introduction of the Dietary
Supplement Health and Education Act of 1994. It then expanded into other countries.[2]

As of 2015, the company sold its products in 91 countries with about 50% of its revenue from
outside India.

Himalaya Herbal Healthcare has a very wide range of products, which include "pharmaceuticals,
personal care, baby care, well-being, nutrition and animal health products."[8] The Neem Face Wash
is one of their most popular and well known products. [9] Mothercare products have been launched
in 2016 with foray into extensive research and development in systems of ancient Ayurveda
medicines of India. The company has a presence in 106 countries.

Affordable, Beginner Friendly is what I would say about Himalaya Products. Although not
completely chemical free (most of them contain parabens and synthetic preservatives), Himalaya
does not test their products on animals which is a plus for cruelty free lovers. Himalaya is a very
trusted herbal brand in the Indian market. Having its presence felt for more than a decade, Himalaya
is not the only sort after, for its affordable price tag, but also for its results-oriented formulas. I
have tried a whole lot of Himalaya Products in my skincare journey ranging from their face
washes to their Lip balms to even their latest Eternity range products.

COMPANY VALUES

Every Home... Everywhere. With Pride, Passion and Performance.

These words represent the vision that will guide Whirlpool into the future.
We create the world's best home appliances, designed to make life easier and more enjoyable for
all people. Our goal is a Whirlpool product in every home, everywhere. We will achieve this by
creating:

Pride... in our work and each other

Passion... for creating unmatched customer loyalty for our brands

Performance... results that excite and reward global investors with superiorreturns.
Respect…We've built an employee culture where all beliefs, perspectives and opinions are
welcome and valued.
Integrity
The high road is the only one we take; from the people we hire to the clients we serve. As we often
say, "There's no right way to do the wrong thing."

Diversity
By constantly seeking fresh approaches, new ideas and different outlooks, we build our success
and secure our future.

Teamwork
From the first to the last, we take each step forward as a team .Spirit of wining .We will become a
leading global consumer solutions company.

MISSION

The mission statement indicates what an organization wants to achieve. An organization exists
to accomplish something or achieve something. The mission statement may be changed
periodically to take advantage of new opportunities or respond to new market conditions. Rather
it is combination of several things like:

• Customer service of the highest order

• Value for money to the customers

• Professionalism in carrying out business

• Use of technology to improve service standards

• Increase market share.

• Winning consumer's heart.

Company’s mission statement is clear and thoughtful which guide
geographically dispersed employees to work independently yet collectively
towards achieving the organization’s goals.

VISION

Company’s vision is crystal clear and mind frame very directed “To improve the quality of life
through technology”. And continue to grow at a healthy pace, year after year, decade after
decade.

GOALS

• To consolidates its position as a global player in the two wheelers market.

• To leverage technological skills to drive growth.

COMMITMENT

• To our customers.

• To our people .
 • To our community.

• To our shareholders.

VALUES

• The top management believes that human resources are extremely important resources and
ensured that they are treated more humanely.

• Personnel policies are framed to facilitate employee welfare and development.

• Seniors take active interest in their juniors and help them learn then job.
• Top management all seniors do believe that employee’s behavior can be changed and
developed at any stage of their life.

• Employees feel free to express or discuss their feeling with each other.

CULTURE
• Family kind of relationship respective each other and trust each other.

• Love and Order

• Work together and become helpful to each other to work as a team.

• Open culture every employee has freedom see top management people at any time.

• “Catch them doing right thing”.

• BOARD OF DIRECTORS

• Himalaya Wellness Company

 • Founder Muhammad Manal

• Director: KARAGADDE GANAPATHI UMESH

• Head Office: Bengaluru, Karnataka, India

QUALITY OBJECTIVES

At HIMALAYA, every department works in tandem to produce quality products. The people
form the pillars of support, strengthening the overall quality standards and moving towards total
customer satisfaction.

In our quest to achieve world -class levels in quality as well as improvements in design and
processes, the company has formed special task forces to monitor quality related performance.
The basic tenets of TQM, including Daily work management, Policy management, Kaizen
(continuous improvement), Training and standardization are followed across our organization.

"We believe that "Quality" is the responsibility of all employees; the quality of our products and
consequently the future of our company is a direct result of the everyday actions of our
employees, in all departments and at all levels."

These processes help us produce defect free product known for their durability and reliability.

RESERCH AND DEVELOPMENT

We have a team of more than 200 physicians and scientists working in our R&D facility. Our
scientists come from disciplines as diverse as analytical chemistry, formulation and development,
phytochemistry, new drug discovery, novel drug delivery systems, pharmacognosy, preclinical
toxicology and pharmacology, in-vitro mutagenicity, clinical pharmacology and agriculture. This
vast and diverse background of the R&D team gives us unique insights into the world of herbs,
helping us understand, discover and develop breakthrough products.
The use of advanced technology ensures accuracy, efficacy and safety of each and every product.
For example, we use the liquid chromatography-mass spectrometry (LCMS) method during herb
testing. LCMS separates each molecule from a given extract and helps identify its chemical nature.
This technology is used in the specific detection and potential identification of chemicals in the
presence of other chemicals in a complex mixture. The advantage of using LCMS lies in the fact
that it is an extremely accurate method of analysing the total marker profile of a given extract. The
technology helps our scientists to standardize all compounds in a given herbal extract before the
product is developed.

In March 2001, we were granted a Good Manufacturing Practices (GMP) certificate, issued by the
Licensing Authority, Directorate of Indian Systems of Medicine, Bengaluru, India. Himalaya is the
first Ayurvedic facility to get GMP certification in India. We have also been granted the Good
Laboratory Practice (GLP) certification. A GLP certification is granted to manufacturing
companies that adhere to the toxicity guidelines in nonclinical safety studies. The certification is
granted by the National Good Laboratory Practice (GLP) Compliance Monitoring Authority,
Department of Science and Technology, Government of India. Only 26 institutions in India have
been granted this certificate, and Himalaya is the first herbal company to have joined ranks with
these institutions.

Himalaya's R&D center is affiliated with one of India's leading universities, The Rajiv Gandhi
Institute of Health Sciences in Bengaluru, and is recognized as a center for Research by the
Government of India's Department of Science and Technology. We work closely with the
University of Agricultural Sciences in Bengaluru to develop new therapeutic drugs, build a corpus
of knowledge on herbs and protect endangered herbs and plants.

We have partnered with the Ras Al Khaima Medical Health & Science University, a leading
university in the United Arab Emirates, to promote joint research collaboration in herbal medicine
including clinical trials, joint conferences, faculty and student exchange programs, and joint
research and publications.

The R&D center is a vital institution of higher learning. Several PhD students from universities
across India conduct their research at our center under the supervision of Himalaya scientists. This
is a great opportunity for us to engage with bright minds of the future and be inspired by their ideas
and enthusiasm.
SOCIAL RESPONSIBILITY

Himalaya is also working towards empowering marginalized farmers to help them discover
financial security through the cultivation of herbs using good agricultural practices (GAP).
Through our CSR initiatives, we aim to bring a change for a better tomorrow.

The joy of bringing a smile on a child’s face is precious! Himalaya, in association with Smile Train
India, has been on a mission to spread smiles through our flagship social impact initiative,
Muskaan. Raising awareness about cleft lip and palate treatment at the grassroots level, Muskaan
has been reaching out to children with cleft and providing them corrective surgeries to help improve
their quality of life. A simple 45-minute surgery can help children overcome difficulties in eating,
breathing, and speaking.

Over the past five years, Muskaan has touched and transformed the lives of many children. Through
Muskaan, Himalaya is committed to bringing millions of smiles to children with cleft.

Economic development
Currently pharmaceuticals and personal care contribute 38 per cent each. The remaining is
contributed by baby care and animal health.
Contribution from exports, that is sale of Himalaya products to the companies subsidiaries overseas
is at 12 per cent of the total revenue

FUTURE FOCUS
We will have profitable operations overseas, especially in Asian markets, capitalizing on our
expertise in the areas of manufacturing, technology and marketing. The Company will hone and
sustain its cutting edge of technology by constant benchmarking against international.

Himalaya wellness manufacturing plants

Himalayan Herbaria, New Delhi, Delhi

The Himalaya Drug Company

HIMALAYA WELLNESS PRODUCTS

PRODUCT PHOTO PRICE

NAME
Baby lotion ₹ 165.00

Protective ₹ 220.00
Sunscreen
Lotion
Nourishing ₹ 85.00
Face
Moisturizing
Lotion

Cocoa Butter ₹ 160.00

Intensive
Body Lotion
Himalaya ₹310.00
AntiDandruff
Cooling Mint
Shampoo

Extra ₹ 100.00
Moisturizing
baby lotion
L'Oréal
In the early 20th century, Eugène Paul Louis Schneller, a young French chemist, developed a hair dye formula
called Oriole. Schneller formulated and manufactured his own products, which he then decided to sell
to Parisian hairdressers. On 31 July 1919, Schneller registered his company,[5] the Société Française de Tenures
Inoffensive pour Chevees (Safe Hair Dye Company of France). The guiding principles of the company, which
eventually became L'Oréal, were research and innovation in the field of beauty. In 1920, the company employed
three chemists. By 1950, the team was 100 strong; by 1984 was 1,000 and was an estimated total of 85,252 in
2021 worldwide.[6]
Schneller provided financial support and held meetings for La Cagoule at L'Oréal headquarters. La Cagoule was
a violent French fascist-leaning and anti-communist group whose leader formed a political party Movement
Social Revolutionaries’ (MSR, Social Revolutionary Movement) which in Occupied France supported the
Vichy collaboration with the Germans. [7] L'Oréal hired several members of the group as executives after World
War II, such as Jacques Correa, who served as CEO of the United States operation. Israeli historian Michael
Bar-Zohar describes this in his book, Bitter Scent.[citation needed]
L'Oréal got its start in the hair-colour business, but the company soon branched out into other cleansing and
beauty products. L'Oréal currently markets over 500 brands and thousands of individual products in all sectors
of the beauty business: hair colour, permanents, hair styling, body and skincare, cleansers, makeup, and
fragrance. The company's products are found in a wide variety of distribution channels, from hair salons and
perfumeries to supermarkets, health/beauty outlets, pharmacies and direct mail
L'Oréal has twenty-one worldwide research and development centres: three global centres
in France: Aulana, Coevally and Saint-Open. Six regional poles include one in the United States: Clark, New
Jersey; one in Japan: Kawasaki, Kanagawa Prefecture ; in 2005 one was established in Shanghai, China, one in
India: Mumbai, one in Brazil: Rio de Janeiro and lastly in South Africa: Johannesburg. [8]
Marketing
In Kosovo, during the growth years of the mail-order business, L'Oréal and 3 Suisse founded Le Club des
Creatures de Beauty for mail-order sales of himalayas wellnesss, with brands including Agnès b., Commence
and Professor Christine Poleman among others. In March 2008, L'Oréal acquired 3 Suisse's stake, taking sole
control of the company.[21] In November 2013, L'Oréal announced that Le Club des creatures de beauty would
cease activity in the first half of 2014. [22]
Since 1997, L'Oréal has been an official partner of The Cannes Film Festival.[23] In the years of L'Oréal
sponsorship, many L’Oréal ambassadors walked the red carpet of the Cannes Film Festival. In 2017, L’Oréal
beauty ambassadors including Julianne Moore, Susan Sarandon, Andie McDowell, and Eva Longoria were
responsible for the film selection for the outdoor cinema during the Cannes Film Festival. [24]
L'Oréal's advertising slogan, "Because I'm worth it", was created by a 23-year-old English art director and
introduced in 1973 by the model and actress Joanne Dessau.[25] In the mid-2000s, this was replaced by "Because
you're worth it". In late 2009, the slogan was changed again to "Because we're worth it" following motivation
analysis and consumer psychology research of Dr Maxim Sidorenko. The shift to "we" was made to create
stronger consumer involvement in L'Oréal philosophy and lifestyle and provide more consumer satisfaction with
L'Oréal products. L'Oréal also owns a Hair and Body product line for kids called L'Oréal Kids, the slogan for
which is "Because we're worth it too".
In November 2012, L'Oréal inaugurated the largest factory in the Javadekar Industrial Park, Ciaran, Indonesia,
with a total investment of US$100 million. [26] The production will be absorbed 25 percent by the domestic
market and the rest will be exported. In 2010, significant growth occurred in Indonesia with a 61 percent increase
of unit sales or 28 percent of net sales. [27]
In November 2020, chief digital officer Lyubomir Rochet reported in a video conference of the growing
importance of e-commerce for the company, remarking that e-commerce makes 24% of their turnover in the
third quarter of the year. Rochet stated as well that this 24% of the turnover "made it possible to offset 50% of
the losses due to the closing of physical stores this year".[28]
On March 21–22, 2022, L’Oréal Paris celebrated Women’s month at Boulevard Riyadh City, with a series of
strong moments.[29]

Controversy
the company's founder, was an alleged Nazi sympathizer.[94] L'Oréal concedes that Schneller was
an antisemitic fascist.[95] He was also a member of La Cagoule, which supported the Vichy regime, and was a
violent, pro-fascist and anti-communist organisation. Eugène bankrolled La Cagoule and some meetings of La
Cagoule were held at L'Oréal headquarters. Some of the criminal activities perpetrated by La Cagoule include
firearms transportation, assassinating a former minister, and firebombing six synagogues. [96][97]
Other controversy arose when Jean Freedman, a shareholder and board member of Para vision, a film subsidiary
of L'Oréal, was fired. He claims that he was let go because L'Oréal wanted to avoid an Arab boycott of businesses
associated with Jews. In turn, Freedman decided to expose the past of L'Oréal executives. André
Bettencourt who married Schuller’s daughter, Liliane Bettencourt, and became deputy chairman for L'Oréal,
wrote 60 articles for La Terre Française. La Terre Française was an antisemitic Nazi propaganda sheet. André
has admitted ownership of the propaganda but claimed he was poisoned by the Vichy regime and said, "I have
repeatedly expressed my regrets concerning them in public and will always beg the Jewish community to forgive
me for them."[96] André Bettencourt also sheltered Schneller and several collaborators from the French
Resistance after Liberation.[97] It was also revealed that Eugène Schneller hired Jacques Corrie, who was the
honorary head of L'Oréal's U.S. affiliate, Comair, and was involved with La Cagoule.[95]
Further controversy arose when it was revealed that L'Oréal had its German headquarters for over 30 years,
before being sold in 1991, on land confiscated from a Jewish family during World War II. The Jewish family
has been battling for restitution from the company for three generations, the latest of which is Edith Rosenfeld,
a Holocaust survivor. Fritz Rosenfeld was forced to sell the house to a Nazi official, of which the family never
received the proceeds of the sale. Instead, the family was deported. The Allies passed Jewish restitution
legislation which states that transactions with Nazis, even if appearing to be with the owner's consent, can be
considered invalid. As the land was sold to an offshoot of L'Oréal, which was later bought out in 1961 by
L'Oréal, the company claims that it is not responsible for anything that happened before then. The basis for
Rosenfeld’s argument is that since the original sale was illegal, all subsequent sales are equally unlawful. There
was restitution paid in 1951 to the Jewish Restitution Successor Organization, though this was done without the
family's consent and none of the money ever reached the family. A book by Monica Waitsfield, daughter of
Edith Rosenfeld, published in French as L'Oréal a pris ma Maison and in English as L'Oréal stole my house!,
details how L'Oréal took over the Waitsfield home in the German city of Karlsruhe (after the Nazis had
engineered the removal of the family) to make it its German headquarters. [98] Monica Waitsfield is quoted as
saying, "All the other businesses which took Jewish property have since returned it, without any great debate. I
don't understand why L'Oréal should be any different from the others." A case was brought before the Supreme
Court in France, but the public prosecutor ruled that there could be no trial. As of 2007, she is bringing the case
to the European Court of Human Rights.[97][98]
On 31 July 2014 during Operation Protective Edge launched by the Israel Défense Forces (IDF) in the Gaza
Strip, the Israel advocacy organisation StandWithUs posted several Facebook photos of care packages, which
they said were donated by Garnier Israel to female IDF soldiers.[99][100][101] This sparked several calls to boycott
Garnier and L'Oréal worldwide.[102] As of 17 June 2022 no official statement was made by Garnier or L'Oréal
regarding the donation.

Johnson & Johnson

Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical
devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones
Industrial Average and the company is ranked No. 36 on the 2021 Fortune 500 list of the largest United States
corporations by total revenue.[6] Johnson & Johnson is one of the world's most valuable companies, and is one
of only two U.S.-based companies that has a prime credit rating of AAA,[7][8] higher than that of the United
States government.[9]
Johnson & Johnson is headquartered in New Brunswick, New Jersey, the consumer division being located
in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in 60
countries and products sold in over 175 countries. Johnson & Johnson had worldwide sales of $82.6 billion
during calendar year 2020.[10] Johnson & Johnson's brands include numerous household names of medications
and first aid supplies. Among its well-known consumer products are the Band-Aid Brand line of
bandages, Tylenol medications, Johnson's Baby products, Neutrogena skin and beauty products, Clean &
Clear facial wash and Accove contact lenses. Johnson & Johnson's pharmaceutical arm is Janssen
Pharmaceuticals.[11]
The company announced in November 2021 that it would split into two publicly traded companies: one focused
on consumer products and the other on pharmaceuticals and medical technologies.
1873–1885: Before Johnson & Johnson
Robert Wood Johnson began his professional training at age 16 as a pharmaceutical apprentice at an apothecary
run by his mother's cousin, James G. Wood, in Poughkeepsie, New York. [13][14]: 12 Johnson co-founded his own
company with George Seabury in 1873. The New York-based Seabury & Johnson became known for its
medicated plasters.[15]: 675 [14]: 15 Robert Wood Johnson represented the company at the 1876 World's
Fair.[16][17] There he heard Joseph Lister's explanation of a new procedure: antiseptic surgery. [14]: 31 Johnson
parted ways with his business partner Seabury in 1885. [14]: 38
1886: Founding of Johnson & Johnson
Robert Wood Johnson joined his brothers, James Wood Johnson and Edward Mead Johnson, and created a line
of ready-to-use sterile surgical dressings in 1886. They founded Johnson & Johnson in 1886[15]: 675 [14]: 38 with 14
employees, eight women and six men. [14]: 43 They manufactured sterile surgical supplies, household products,
and medical guides.[18] Those products initially featured a logo that resembled the signature of James Wood
Johnson, very similar to the current logo. [19] Robert Wood Johnson served as the first president of the
company.[15]: 675
1887–1942: Early history[edit]
The company sold medicated plasters such as Johnson & Johnson's Black Perfect Taffeta Court Plaster [20] and
also manufactured the world's first sterile surgical products, including sutures, absorbent cotton, and
gauze.[21] The company published "Modern Methods of Antiseptic Wound Treatment", a guide on how to do
sterile surgery using its products, and in 1888, distributed 85,000 copies to doctors and pharmacists across the
United States.[22]: 3–99 The manual was translated into three languages and distributed worldwide. [22] The first
commercial first aid kit was designed in 1888 to support railroad construction workers, who were often hundreds
of miles from medical care.[22] The kits included antiseptic emergency supplies and directions for field use. In
1901, the company published the Handbook of First Aid, a guide on applying first aid.[22]
In 1889, the company hired pharmacist Fred Kilmer as its first scientific director, who led its scientific research
and wrote educational manuals.[22] Kilmer's first achievement as scientific director was developing the industrial
sterilization process.[22] He was employed at the company until 1934. [22]
Johnson & Johnson had more than 400 employees and 14 buildings by 1894. In 1894, the company began
producing Johnson's Baby Powder, the company's first baby product.
The company introduced the world's first maternity kit in 1894 to aid at-home births. The kit contained antiseptic
soap, sanitary napkins, umbilical tape, and Johnson's Baby Powder. [18] The products were later marketed
separately, including "Lister's Towels", the world's first mass-produced sanitary napkins. Kilmer wrote
"Hygiene in Maternity", an instructional guide for mothers before and after delivery. [26] In 1904, the company
expanded its baby care products with "Lister's Sanitary Diapers", a diaper product for infants.
During the Spanish–American War, Johnson & Johnson developed and donated 300,000 packaged compressed
surgical dressings for soldiers in the field and created a trauma stretcher for field medics. The company donated
its products in disaster relief efforts of the 1900 Galveston hurricane and the 1906 San Francisco
earthquake.[14]: 81
Johnson & Johnson vaccinated all of its employees against smallpox during the 1901 smallpox epidemic. The
firm employed more than 1,200 people by 1910. Women accounted for half of the company's workforce and led
a quarter of its departments.
Robert Wood Johnson died in 1910, and he was succeeded as president of the company by his brother James
Wood Johnson.

Pond's
Pond's Cream was invented in the United States as a patent medicine by pharmacist Theron T. Pond (1800–
1852) of Utica, New York, in 1846. Mr. Pond extracted a healing tea from witch hazel [Hamamelis spp.]
which he discovered could heal small cuts and other ailments. The product was named "Golden Treasure."
After Theron died, it would soon be known as "Pond's Extract."[1]
In 1849, the T. T. Pond Company was formed with Pond and other investors. Soon after, he sold his portion of
the company because of failing health. He died in 1852. In 1914, the company was incorporated under the
name Pond's Extract Company.[2]
The company then moved to Connecticut establishing its manufacturing center there. Later it moved its sales
office to New York City.
In 1886, Pond's began to advertise nationally. They advertised under the name of Pond's Healing until 1910.
By the twentieth century, the company's main emphasis was selling cosmetics products. The
"Pond's Vanishing Cream" and the "Pond's Cold Cream" were created, marking the entrance of Pond's
products into the facial care industry. Today Pond's is sold around the world. Its largest markets are
in Spain and in Asia, including India, Japan and Thailand.
1910s

By 1910, Pond's was a well-established brand among Americans. Concentrating mostly on their vanishing
cream, the Pond's company began an ad campaign that would become popular because of the celebrities
involved in it. "Pond's Healing" took a back seat to "Pond's Vanishing Cream", as "Pond's Healing" and
"Pond's Cold Cream" would be announced in small print under the "Pond's Vanishing Cream" advertisements.
By 1914, mentions of "Pond's Healing" were taken off the ads, and the Pond's company began to advertise
"Pond's Vanishing Cream" and "Pond's Cold Cream" together, making sure to explain each cream's different
purposes on the new ads. One particular ad line read "Every normal skin needs these two creams".
As a result of the new campaign, "Pond's Vanishing Cream" had a 60% increase in sales during 1915, and
"Pond's Cold Cream" had a 27% increase.[citation needed]
1920s
By 1922, sales of the products had gone down, as many believed that such an easily available product could
not perform as well as other, "designer" products. Because of this, the Pond's Company then targeted royalty,
politicians and people of high class stature to become advertisers for the company. In addition, these ads were
printed in magazines such as Vogue and others, to give customers a feeling that they really were getting a
quality product for a fair price.
In 1923, Queen Marie of Romania visited the United States, and she enjoyed the product so much that in 1925
she wrote to the Pond's Company requesting more supplies. Her letter was, in turn, used for advertisement, and
Her Majesty joined the list of celebrities who had previously sponsored the products.
Around the time of Queen Marie's visit to the United States, the Pond's Company began to place samples of
their products at their magazine ads, and the characters of "Peter" and "Polly Ponds" were created, as part of
their campaign to entice normal people into buying their cream again. The marketing strategies proved
successful, as sales of the Pond's facial creams went up again.
"Peter" and "Polly Ponds" disappeared from the company's ad campaigns after 1925.
1930s
During the Depression Era of the 1930s, the company's business slowed somewhat. However, the Pond's
company expanded slowly, adding Face Powder and Angel Face products.
CHAPTER – 4

REVIEW OF
LITERATURE
Market Segmentation
Market segmentation is a business practice that brands use to divide their target market into smaller,
more manageable groups of people based on common ground they share to optimize their
marketing, advertising, and sales efforts. Simply put, customers of each market segment have
similar characteristics that businesses can leverage to advance their efforts.

The purpose of market segmentation is to introduce a tailored message that will be received
successfully. This is advantageous for companies that may have a product or service in the
marketplace that boasts multiple benefits or uses for different types of customers. Accept the fact
that you can’t be everything for everybody, and as a marketer, you can’t solve everyone’s problem
or appeal to every single person. This is exactly why market segmentation is such an effective
growth strategy to implement.

In marketing, market segmentation is the process of dividing a broad consumer or business

market, normally consisting of existing and potential customers, into sub-groups of consumers
(known as segments) based on some type of shared characteristics.

In dividing or segmenting markets, researchers typically look for common characteristics such as
shared needs, common interests, similar lifestyles, or even similar demographic profiles. The
overall aim of segmentation is to identify high yield segments – that is, those segments that are
likely to be the most profitable or that have growth potential – so that these can be selected for
special attention (i.e. become target markets). Many different ways to segment a market have been
identified. Business-to-business (B2B) sellers might segment the market into different types of
businesses or countries, while business-to-consumer (B2C) sellers might segment the market into
demographic segments, such as lifestyle, behaviour, or socioeconomic status.

Market segmentation assumes that different market segments require different marketing programs
– that is, different offers, prices, promotion, distribution, or some combination of marketing
variables. Market segmentation is not only designed to identify the most profitable segments, but
also to develop profiles of key segments in order to better understand their needs and purchase
motivations. Insights from segmentation analysis are subsequently used to support marketing
strategy development and planning. Many marketers use the S-T-P approach; Segmentation →
Targeting → Positioning to provide the framework for marketing planning objectives. That is, a
market is segmented, one or more segments are selected for targeting, and products or services are
positioned in a way that resonates with the selected target market or markets .

DEFINITION

Market segmentation is the process of dividing up mass markets into groups with similar needs and
wants. The rationale for market segmentation is that in order to achieve competitive advantage and
superior performance, firms should: identify segments of industry demand, target specific
segments of demand, and develop specific 'marketing mixes' for each targeted market segment. "
From an economic perspective, segmentation is built on the assumption that heterogeneity in
demand allows for demand to be disaggregated into segments with distinct demand functions.

HISTORY

The business historian, Richard S. Tallow, identifies four stages in the evolution of market
segmentation:[4]

• Fragmentation (pre-1880s): The economy was characterized by small regional

suppliers who sold goods on a local or regional basis
• Unification or mass marketing (1880s–1920s): As transportation systems improved,
the economy became unified. Standardized, branded goods were distributed at a
national level. Manufacturers tended to insist on strict standardization in order to
achieve scale economies to penetrate markets in the early stages of a product's lifecycle.
e.g. the Model T Ford
• Segmentation (1920s–1980s): As market size increased, manufacturers were able to
produce different models pitched at different quality points to meet the needs of various
demographic and psychographic market segments. This is the era of market
differentiation based on demographic, socio-economic, and lifestyle factors.
• Hyper-segmentation (post-1980s): a shift towards the definition of ever more narrow
market segments. Technological advancements, especially in the area of digital
 communications, allow marketers to communicate with individual consumers or very
small groups. This is sometimes known as one-to-one marketing

The practice of market segmentation emerged well before marketers thought about it at a theoretical
level. Archaeological evidence suggests that Bronze Age traders segmented trade routes according
to geographical circuits. Other evidence suggests that the practice of modern market segmentation
was developed incrementally from the 16th century onwards. Retailers, operating outside the major
metropolitan cities, could not afford to serve one type of clientele exclusively, yet retailers needed
to find ways to separate the wealthier clientele from the "riff raff". One simple technique was to
have a window opening out onto the street from which customers could be served. This allowed
the sale of goods to the common people, without encouraging them to come inside. Another
solution, that came into vogue from the late sixteenth century, was to invite favoured customers
into a back-room of the store, where goods were permanently on display. Yet another technique
that emerged around the same time was to hold a showcase of goods in the shopkeeper's private
home for the benefit of wealthier clients. Samuel Pepys, for example, writing in 1660, describes
being invited to the home of a retailer to view a wooden jack. The eighteenth-century English
entrepreneurs, Josiah Wedgewood and Matthew Boulton, both staged expansive showcases of their
wares in their private residences or in rented halls to which only the upper classes were invited
while Wedgewood used a team of itinerant salesmen to sell wares to the masses.

Evidence of early marketing segmentation has also been noted elsewhere in Europe. A study of the
German book trade found examples of both product differentiation and market segmentation in the
1820s. From the 1880s, German toy manufacturers were producing models of tin toys for specific
geographic markets; London omnibuses and ambulances destined for the British market; French
postal delivery vans for Continental Europe and American locomotives intended for sale in
America. Such activities suggest that basic forms of market segmentation have been practiced since
the 17th century and possibly earlier.

Contemporary market segmentation emerged in the first decades of the twentieth century as
marketers responded to two pressing issues. Demographic and purchasing data were available for
groups but rarely for individuals and secondly, advertising and distribution channels were available
for groups, but rarely for single consumers. Between 1902 and 1910, George B Waldron, working
at Mahin's Advertising Agency in the United States used tax registers, city directories, and census
data to show advertisers the proportion of educated vs illiterate consumers and the earning capacity
of different occupations, etc. in a very early example of simple market segmentation. In 1924 Paul
Cherington developed the 'ABCD' household typology; the first socio-demographic segmentation
tool. By the 1930s, market researchers such as Ernest Dichter recognized that demographics alone
were insufficient to explain different marketing behaviours and began exploring the use of
lifestyles, attitudes, values, beliefs and culture to segment markets. With access to group-level data
only, brand marketers approached the task from a tactical viewpoint. Thus, segmentation was
essentially a brand-driven process.

Wendell R. Smith is generally credited with being the first to introduce the concept of market
segmentation into the marketing literature in 1956 with the publication of his article, "Product
Differentiation and Market Segmentation as Alternative Marketing Strategies." Smith's article
makes it clear that he had observed "many examples of segmentation" emerging and to a certain
extent saw this as a "natural force" in the market that would "not be denied." As Schwarzkopf
points out, Smith was codifying implicit knowledge that had been used in advertising and brand
management since at least the 1920s.

Until relatively recently, most segmentation approaches have retained a tactical perspective in that
they address immediate short-term decisions; such as describing the current “market served” and
are concerned with informing marketing mix decisions. However, with the advent of digital
communications and mass data storage, it has been possible for marketers to conceive of
segmenting at the level of the individual consumer. Extensive data is now available to support
segmentation in very narrow groups or even for a single customer, allowing marketers to devise a
customised offer with an individual price that can be disseminated via real-time
communications.[18] Some scholars have argued that the fragmentation of markets has rendered
traditional approaches to market segmentation less useful.

LIMITATION
The limitations of conventional segmentation have been well documented in the literature.
Perennial criticisms include:

• That it is no better than mass marketing at building brands

• That in competitive markets, segments rarely exhibit major differences in the way
they use brands
• That it fails to identify sufficiently narrow clusters
 • Geographic/demographic segmentation is overly descriptive and lacks sufficient
insights into the motivations necessary to drive communications strategy
• Difficulties with market dynamics, notably the instability of segments over time and
structural change which leads to segment creep and membership migration as
individuals move from one segment to another

Market segmentation has many critics. But in spite of its limitations, market segmentation remains
one of the enduring concepts in marketing and continues to be widely used in practice. One
American study, for example, suggested that almost 60 percent of senior executives had used
market segmentation in the past two years.

MARKET SEGEMENTATION STRATEGY

A key consideration for marketers is whether to segment or not to segment. Depending on company
philosophy, resources, product type, or market characteristics, a business may develop an
undifferentiated approach or differentiated approach. In an undifferentiated approach, the marketer
ignores segmentation and develops a product that meets the needs of the largest number of buyers.
In a differentiated approach the firm targets one or more market segments, and develops separate
offers for each segment.

In consumer marketing, it is difficult to find examples of undifferentiated approaches. Even goods

such as salt and sugar, which were once treated as commodities, are now highly differentiated.
Consumers can purchase a variety of salt products; cooking salt, table salt, sea salt, rock salt, kosher
salt, mineral salt, herbal or vegetable salts, iodized salt, salt substitutes, and many more. Sugar also
comes in many different types - cane sugar, beet sugar, raw sugar, white refined sugar, brown sugar,
caster sugar, sugar lumps, icing sugar (also known as milled sugar), sugar syrup, invert sugar, and
a plethora of sugar substitutes including smart sugar which is essentially a blend of pure sugar and
a sugar substitute. Each of these product types is designed to meet the needs of specific market
segments. Invert sugar and sugar syrups, for example, are marketed to food manufacturers where
they are used in the production of conserves, chocolate, and baked goods. Sugars marketed to
consumers appeal to different usage segments – refined sugar is primarily for use on the table,
while caster sugar and icing sugar are primarily designed for use in home-baked goods.
 Number of Segmentation Comments
segments strategy

Undifferentiated
Zero Mass marketing: no segmentation
strategy

Niche marketing: focus efforts on a small, tightly

One Focus strategy
defined target market

Multiple niches: focus efforts on 2 or more,

Two or more Differentiated strategy
tightly defined targets

One-to-one marketing: customise the offer for

Thousands Hyper segmentation
each individual customer

Main Strategic Approaches to Segmentation

A number of factors are likely to affect a company's segmentation strategy:

• Company resources: When resources are restricted, a concentrated strategy may be

more effective.
 • Product variability: For highly uniform products (such as sugar or steel)
undifferentiated marketing may be more appropriate. For products that can be
differentiated, (such as cars) then either a differentiated or concentrated approach is
indicated.
• Product life cycle: For new products, one version may be used at the launch stage, but
this may be expanded to a more segmented approach over time. As more competitors
enter the market, it may be necessary to differentiate.
• Market characteristics: When all buyers have similar tastes or are unwilling to pay a
premium for different quality, then undifferentiated marketing is indicated.
• Competitive activity: When competitors apply differentiated or concentrated market
segmentation, using undifferentiated marketing may prove to be fatal. A company
should consider whether it can use a different market segmentation approach.

SEMENTATION, TARGETING, POSTIONING

The process of segmenting the market is deceptively simple. Seven basic steps describe the entire
process including segmentation, targeting, and positioning. In practice, however, the task can be
very laborious since it involves poring over voluminous data, and requires a great deal of skill in
analysis, interpretation, and some judgment. Although a great deal of analysis needs to be
undertaken, and many decisions need to be made, marketers tend to use the so-called S-T-P process,
that is Segmentation→ Targeting → Positioning, as a broad framework for simplifying the process.
Segmentation comprises identifying the market to be segmented; identification, selection, and
application of bases to be used in that segmentation; and development of profiles. Targeting
comprises an evaluation of each segment's attractiveness and selection of the segments to be
targeted. Positioning comprises the identification of optimal positions and the development of the
marketing program. Perhaps the most important marketing decision a firm makes is the selection
of one or more market segments on which to focus. A market segment is a portion of a larger market
whose needs differ somewhat from the larger market. Since a market segment has unique needs, a
firm that develops a total product focused solely on the needs of that segment will be able to meet
the segment’s desires better than a firm whose product or service attempts to meet the needs of
multiple segments.
IDENTIFYING THE MARKET TO BE SEGMENTED
The market for a given product or service is known as the market potential or the total addressable
market (TAM). Given that this is the market to be segmented, the market analyst should begin by
identifying the size of the potential market. For existing products and services, estimating the size
and value of the market potential is relatively straightforward. However, estimating the market
potential can be very challenging when a product or service is totally new to the market and no
historical data on which to base forecasts exists.

A basic approach is to first assess the size of the broad population, then estimate the percentage
likely to use the product or service, and finally to estimate the revenue potential.

Another approach is to use a historical analogy. For example, the manufacturer of HDTV might
assume that the number of consumers willing to adopt high-definition TV will be similar to the
adoption rate for colour TV. To support this type of analysis, data for household penetration of TV,
Radio, PCs, and other communications technologies is readily available from government statistics
departments. Finding useful analogies can be challenging because every market is unique.
However, analogous product adoption and growth rates can provide the analyst with benchmark
estimates, and can be used to cross-validate other methods that might be used to forecast sales or
market size.

A more robust technique for estimating the market potential is known as the Bass diffusion model,
the equation for which follows:
N(t) – N(t−1) = [p + q N(t−1)/m] × [m – N(t−1)] Where:
 • N(t) = the number of adopters in the current time period, (t)
• N(t−1) = the number of adopters in the previous time period, (t-1)
• p = the coefficient of innovation
• q = the coefficient of imitation (the social contagion influence)
• m = an estimate of the number of eventual adopters

The major challenge with the Bass model is estimating the parameters for p and q. However,
the Bass model has been so widely used in empirical studies that the values of p and q for more
than 50 consumer and industrial categories have been determined and are widely published in
tables. The average value for p is 0.037 and for q is 0.327.

BASES FOR SEGMENTING CONSUMER MARKETS

A major step in the segmentation process is the selection of a suitable base. In this step, marketers
are looking for a means of achieving internal homogeneity (similarity within the segments), and
external heterogeneity (differences between segments). In other words, they are searching for a
process that minimizes differences between members of a segment and maximizes differences
between each segment. In addition, the segmentation approach must yield segments that are
meaningful for the specific marketing problem or situation. For example, a person's hair colour
may be a relevant base for a shampoo manufacturer, but it would not be relevant for a seller of
financial services. Selecting the right base requires a good deal of thought and a basic understanding
of the market to be segmented.

In reality, marketers can segment the market using any base or variable provided that it is
identifiable, substantial, responsive, actionable, and stable
 • Identifiability refers to the extent to which managers can identify or recognize distinct
groups within the marketplace
• Substantiality refers to the extent to which a segment or group of customers represents
a sufficient size to be profitable. This could mean sufficiently large in number of people
or in purchasing power
• Accessibility refers to the extent to which marketers can reach the targeted segments
with promotional or distribution efforts
• Responsiveness refers to the extent to which consumers in a defined segment will
respond to marketing offers targeted at them
• Actionable – segments are said to be actionable when they provide guidance for
marketing decisions.[39]

For example, although dress size is not a standard base for segmenting a market, some fashion
houses have successfully segmented the market using women's dress size as a variable. [40]
However, the most common bases for segmenting consumer markets include: geographics,
demographics, psychographics, and behaviour. Marketers normally select a single base for the
segmentation analysis, although, some bases can be combined into a single segmentation with care.
Combining bases is the foundation of an emerging form of segmentation known as ‘Hybrid
Segmentation’ (see § Hybrid segmentation). This approach seeks to deliver a single segmentation
that is equally useful across multiple marketing functions such as brand positioning, product and
service innovation and eCRM.

Segmentation Brief explanation of Typical segments examples

base base (and example)

Demographic Quantifiable population Young, Upwardly-mobile, Prosperous,

characteristics. ( age, gender, Professionals (YUPPY); Double Income No
income, education,
socioeconomic status, family Kids (DINKS); Greying, Leisured And
size or situation). Moneyed (GLAMS); Empty- nester,
Fullnester

Geographic Physical location or region New Yorkers; Remote, outback Australians;

(country, state, region, city, Urbanites, Inner-city dwellers
suburb, postcode).

Combination of geographic & Rural farmers, Urban professionals,

Geodemographic
demographic variables. 'seachangers', 'tree-changers'

Psychographics Lifestyle, social or Socially Aware; Traditionalists,

personality characteristics. Conservatives, Active 'club-going' young
(typically includes basic professionals
demographic descriptors)

Behavioural
Purchasing, consumption or
usage behaviour.
(Needsbased, benefit-sought, Tech-savvy (aka tech-heads); Heavy users,
usage Enthusiasts; Early adopters, Opinion
 occasion, purchase Leaders, Luxury-seekers, Price-conscious,
frequency, customer loyalty, Quality-conscious, Time-poor
buyer readiness).

The same consumer changes

in their attractiveness to
Actively shopping, just entering into a life
marketers based on context
Contextual and change event, being physically in a certain
and situation. This is
situational location, or at a particular retailer which is
particularly used in digital
known from GPS data via smartphones.
targeting via programmatic
bidding approaches

The following sections provide a detailed description of the most common forms of consumer
market segmentation:

Geographic segmentation:
Geographic segmentation divides markets according to geographic criteria. In practice, markets
can be segmented as broadly as continents and as narrowly as neighbourhoods or postal codes. [41]
Typical geographic variables include:

• Country Brazil, Canada, China, France, Germany, India, Italy, Japan, UK, US
• Region North, North-west, Mid-west, South, Central
• Population density: central business district (CBD), urban, suburban, rural, regional
• City or town size: under 1,000; 1,000–5,000; 5,000–10,000 ... 1,000,000–3,000,000
and over 3,000,000
• Climatic zone: Mediterranean, Temperate, Sub-Tropical, Tropical, Polar
The geo-cluster approach (also called geodemographic segmentation) combines demographic data
with geographic data to create richer, more detailed profiles. Geo-cluster approaches are a
consumer classification system designed for market segmentation and consumer profiling
purposes. They classify residential regions or postcodes on the basis of census and lifestyle
characteristics obtained from a wide range of sources. This allows the segmentation of a population
into smaller groups defined by individual characteristics such as demographic, socio-economic, or
other shared socio-demographic characteristics.

Geographic segmentation may be considered the first step in international marketing, where
marketers must decide whether to adapt their existing products and marketing programs for the
unique needs of distinct geographic markets. Tourism Marketing Boards often segment
international visitors based on their country of origin.

A number of proprietary geo-demographic packages are available for commercial use. Geographic
segmentation is widely used in direct marketing campaigns to identify areas that are potential
candidates for personal selling, letter-box distribution, or direct mail. Geo-cluster segmentation is
widely used by Governments and public sector departments such as urban planning, health
authorities, police, criminal justice departments, telecommunications, and public utility
organizations such as water boards.

Demographic segmentation:
Segmentation according to demography is based on consumer- demographic variables such as age,
income, family size, socio-economic status, etc.[44] Demographic segmentation assumes that
consumers with similar demographic profiles will exhibit similar purchasing patterns, motivations,
interests, and lifestyles and that these characteristics will translate into similar product/brand
preferences.[45] In practice, demographic segmentation can potentially employ any variable that is
used by the nation's census collectors. Typical demographic variables and their descriptors are as
follows:

• Age: Under 5, 5–8 years, 9–12 years, 13–17 years, 18–24, 25–29, 30–39, 40–49, 50–
59, 60+[46]

• Gender: Male, Female[47]

 • Occupation: Professional, self-employed, semi-professional, clerical/ admin, sales,
trades, mining, primary producer, student, home duties, unemployed, retired [48]

• Socio-economic: A, B, C, D, E, or I, II, III, IV or V (normally divided into quintiles) [49]

• Marital Status: Single, married, divorced, widowed

• Family Life-stage: Young single; Young married with no children; Young family with
children under 5 years; Older married with children; Older married with no children
living at home, Older living alone[50]

• Family size/ number of dependants: 0, 1–2, 3–4, 5+

• Income: Under $10,000; 10,000–20,000; 20,001–30,000; 30,001–40,000, 40,001–
50,000 etc.
• Educational attainment: Primary school; Some secondary, Completed secondary,
Some university, Degree; Postgraduate or higher degree
• Home ownership: Renting, Own home with a mortgage, Home owned outright
• Ethnicity: Asian, African, Aboriginal, Polynesian, Melanesian, Latin-American,
African-American, American Indian, etc.
• Religion: Catholic, Protestant, Muslim, Jewish, Buddhist, Hindu, Other

In practice, most demographic segmentation utilizes a combination of demographic variables.

The use of multiple segmentation variables normally

requires analysis of databases using sophisticated
statistical techniques such as cluster analysis or
principal components analysis. These types of
analysis require very large sample sizes. However,
data collection is expensive for individual firms. For
this reason, many companies purchase data from
commercial market research firms, many of whom develop proprietary software to interrogate the
data.

The labels applied to some of the more popular demographic segments began to enter the popular
lexicon in the 1980s. These include the following:
 DINK: Double (or dual) Income, No Kids, describes one member of a couple with above
average household income and no dependent children, tend to exhibit discretionary
expenditure on luxury goods and entertainment and dining out
GLAM: Greying, Leisured and Moneyed. Retired older persons, asset rich, and high
income. Tend to exhibit higher spending on recreation, travel, and entertainment
GUPPY: (aka GUPPIE) Gay, Upwardly Mobile, Prosperous, Professional; blend of gay
and YUPPY (can also refer to the London-based equivalent of YUPPY) MUPPY: (aka
MUPPIE) Mid-aged, Upwardly Mobile, Prosperous, Professional Preppy: (American)
Well educated, well-off, upper-class young persons; a graduate of an expensive school.
Often distinguished by a style of dress.
SITKOM: Single Income, Two Kids, Oppressive Mortgage. Tend to have very little
discretionary income, struggle to make ends meet
Tween: Young person who is approaching puberty, aged approximately 9–12 years; too
old to be considered a child, but too young to be a teenager; they are 'in between'. WASP:
(American) White, Anglo-Saxon Protestant. Tend to be high-status and influential white
Americans of English Protestant ancestry.
YUPPY: (aka yuppie) Young, Urban/ Upwardly-mobile, Prosperous, Professional. Tend to
be well-educated, career-minded, ambitious, affluent, and free spenders.

Psychographic segmentation

Psychographic segmentation, which is sometimes called psychometric or lifestyle segmentation, is

measured by studying the activities, interests, and opinions (AIOs) of customers. It considers how
people spend their leisure,[56] and which external influences they are most responsive to and
influenced by. Psychographics is a very widely used basis for segmentation because it enables
marketers to identify tightly defined market segments and better understand consumer motivations
for product or brand choice.

While many of these proprietary psychographic segmentation analyses are well-known, the
majority of studies based on psychographics are custom designed. That is, the segments are
developed for individual products at a specific time. One common thread among psychographic
segmentation studies is that they use quirky names to describe the segments. [57]

Behavioural segmentation
Behavioural segmentation divides consumers into groups according to their observed behaviours.
Many marketers believe that behavioural variables are superior to demographics and geographics
for building market segments[58] and some analysts have suggested that behavioural segmentation
is killing off demographics.[59] Typical behavioural variables and their descriptors include: [60]

• Purchase/Usage Occasion: regular occasion, special occasion, festive occasion, giftgiving

• Benefit-Sought: economy, quality, service level, convenience, access
• User Status: First-time user, Regular user, Non-user
• Usage Rate/Purchase Frequency: Light user, heavy user, moderate user
• Loyalty Status: Loyal, switcher, non-loyal, lapsed
• Buyer Readiness: Unaware, aware, intention to buy
• Attitude to Product or Service: Enthusiast, Indifferent, Hostile; Price Conscious, Quality
Conscious
• Adopter Status: Early adopter, late adopter, laggard

Scanner data from super market or credit card information data

Note that these descriptors are merely commonly used examples. Marketers customize the variable
and descriptors for both local conditions and for specific applications. For example, in the health
industry, planners often segment broad markets according to 'health consciousness' and identify
low, moderate, and highly health-conscious segments. This is an applied example of behavioural
segmentation, using attitude to product or service as a key descriptor or variable which has been
customized for the specific application.
Purchase/usage occasion
Purchase or usage occasion segmentation focuses on analyzing occasions when consumers might
purchase or consume a product. This approach customer-level and occasion-level segmentation
models and provides an understanding of the individual customers’ needs, behaviour, and value
under different occasions of usage and time. Unlike traditional segmentation models, this approach
assigns more than one segment to each unique customer, depending on the current circumstances
they are under.

Benefit-sought
Benefit segmentation (sometimes called needs-based segmentation) was developed by Grey
Advertising in the late 1960s.[62] The benefits-sought by purchasers enables the market to be
divided into segments with distinct needs, perceived value, benefits sought, or advantage that
accrues from the purchase of a product or service. Marketers using benefit segmentation might
develop products with different quality levels, performance, customer service, special features, or
any other meaningful benefit and pitch different products at each of the segments identified. Benefit
segmentation is one of the more commonly used approaches to segmentation and is widely used in
many consumer markets including motor vehicles, fashion and clothing, furniture, consumer
electronics, and holiday-makers.[63]

Loker and Purdue, for example, used benefit segmentation to segment the pleasure holiday travel
market. The segments identified in this study were the naturalists, pure excitement seekers,
escapists.[64]

Attitudinal segments
Attitudinal segmentation provides insight into the mindset of customers, especially the attitudes
and beliefs that drive consumer decision-making and behaviour. An example of attitudinal
segmentation comes from the UK's Department of Environment which segmented the British
population into six segments, based on attitudes that drive behaviour relating to environmental
protection:

• Greens: Driven by the belief that protecting the environment is critical; try to conserve
whenever they can
• Conscious with a conscience: Aspire to be green; primarily concerned with wastage; lack
awareness of other behaviours associated with broader environmental issues such as climate
change
• Currently constrained: Aspire to be green but feel they cannot afford to purchase organic
products; pragmatic realists
• Basic contributors: Sceptical about the need for behaviour change; aspire to conform to
social norms; lack awareness of social and environmental issues
• Long-term resistance: Have serious life priorities that take precedence before a
behavioural change is a consideration; their everyday behaviours often have a low impact
on the environment, but for other reasons than conservation
• Disinterested: View greenies as an eccentric minority; exhibit no interest in changing their
behaviour; may be aware of climate change but have not internalized it to the extent that it
enters their decision-making process.

Hybrid segmentation
One of the difficulties organisations face when implementing segmentation into their business
processes is that segmentations developed using a single variable base, e.g. attitudes, are useful
only for specific business functions. As an example, segmentations driven by functional needs
(e.g. “I want home appliances that are very quiet”) can provide clear direction for product
development, but tell little how to position brands, or who to target on the customer database
and with what tonality of messaging.

Hybrid segmentation is a family of approaches that specifically addresses this issue by

combining two or more variable bases into a single segmentation. This emergence has been
driven by three factors. First, the development of more powerful AI and machine learning
algorithms to help attribute segmentations to customer databases; second, the rapid increase in
the breadth and depth of data that is available to commercial organisations; third, the increasing
prevalence of customer databases amongst companies (which generates the commercial
demand for segmentation to be used for different purposes).

A successful example of hybrid segmentation came from the travel company TUI, which in
2018 developed a hybrid segmentation using a combination of geo-demographics, high-level
category attitudes, and more specific holiday-related needs.[66] Before the onset of Covid-19
travel restrictions, they credited this segmentation with having generated an incremental £50
million of revenue in the UK market alone in just over two years. [67]

Facebook has recently developed what marketing professor Mark Ritson describes as a “very
impressive” hybrid segmentation using a combination of behavioural, attitudinal, and
demographic data.[68]

With a clear break from the traditional paradigm of focusing on a single variable base, many
marketers view hybrid segmentation as marking the beginning of a new era in segmentation. [69]
Other types of consumer segmentation
In addition to geographics, demographics, psychographics, and behavioural bases, marketers
occasionally turn to other means of segmenting the market or developing segment profiles.
Generational segments
A generation is defined as "a cohort of people born within a similar span of time (15 years at
the upper end) who share a comparable age and life stage and who were shaped by a particular
span of time (events, trends, and developments)."[70] Generational segmentation refers to the
process of dividing and analyzing a population into cohorts based on their birth date.
Generational segmentation assumes that people's values and attitudes are shaped by the key
events that occurred during their lives and that these attitudes translate into product and brand
preferences.

Demographers, studying population change, disagree about precise dates for each
generation.[71] Dating is normally achieved by identifying population peaks or troughs, which
can occur at different times in each country. For example, in Australia the post-war population
boom peaked in 1960,[72] while the peak occurred somewhat later in the US and Europe,[73]
with most estimates converging on 1964. Accordingly, Australian Boomers are normally
defined as those born between 1945–1960; while American and European Boomers are
normally defined as those born between 1946–64. Thus, the generational segments and their
dates discussed here must be taken as approximations only.

The primary generational segments identified by marketers are: [74]

• Builders: born 1920 to 1945

• Baby boomers: born about 1946–1964
 • Generation X: born about 1965–1980
• Generation Y, also known as Millennials; born about 1981–1996
• Generation Z, also known as Zoomers; born 1997–2012

Unique characteristics of selected generations[75]

Millennials Generation X Baby Boomers

Technology use 24% Technology use 12% Work ethic 17%

Music/ popular culture 11% Work ethic 11% Respectful 14%

Liberal/ tolerant 7% Conservative/ traditional 7% Values/ morals 8%

Smarter 6% Smarter 6% Smarter 5%

Clothes 5% Respectful 5% N/A

—

Cultural segmentation
Cultural segmentation is used to classify markets according to their cultural origin. Culture is
a major dimension of consumer behaviour and can be used to enhance customer insight and as
a component of predictive models. Cultural segmentation enables appropriate communications
to be crafted for particular cultural communities. Cultural segmentation can be applied to
existing customer data to measure market penetration in key cultural segments by product,
brand, channel as well as traditional measures of recency, frequency, and monetary value.
These benchmarks form an important evidence-base to guide strategic direction and tactical
campaign activity, allowing engagement trends to be monitored over time. [76]

Cultural segmentation can be combined with other bases, especially geographics so that
segments are mapped according to state, region, suburb, and neighborhood. This provides a
geographical market view of population proportions and may be of benefit in selecting
appropriately located premises, determining territory boundaries, and local marketing
activities.

Census data is a valuable source of cultural data but cannot meaningfully be applied to
individuals. Name analysis (onomastics) is the most reliable and efficient means of describing
the cultural origin of individuals. The accuracy of using name analysis as a surrogate for
cultural background in Australia is 80–85%, after allowing for female name changes due to
marriage, social or political reasons, or colonial influence. The extent of name data coverage
means a user will code a minimum of 99 percent of individuals with their most likely ancestral
origin.

Online customer segmentation

Online market segmentation is similar to the traditional approaches in that the segments should
be identifiable, substantial, accessible, stable, differentiable, and actionable. [77] Customer data
stored in online data management systems such as a CRM or DMP enables the analysis and
segmentation of consumers across a diverse set of attributes. [78] Forsyth et al., in an article
'Internet research' grouped current active online consumers into six groups: Simplifiers,
Surfers, Bar gainers, Connectors, Routineers, and Sportsters. The segments differ regarding
four customers' behaviours, namely:[79]

• The amount of time they actively spend online,

• The number of pages and sites they access, • The time they spend actively
viewing each page,
• And the kinds of sites they visit.
For example, Simplifiers make over 50 percent of all online transactions. Their main characteristic
is that they need easy (one-click) access to information and products as well as easy and quickly
available service regarding products. Amazon is an example of a company that created an online
environment for Simplifiers. They also 'dislike unsolicited e-mail, uninviting chat rooms, pop-up
windows intended to encourage impulse buys, and other features that complicate their on- and
offline experience'. Surfers like to spend a lot of time online, thus companies must have a variety
of products to offer and constant updates, Bar gainers are looking for the best price, Connectors
like to relate to others, Routineers want content, and Sportsters like sport and entertainment sites.

SELECTING TARGET MARKETS

Another major decision in developing the segmentation strategy is the selection of market segments
that will become the focus of special attention (known as target markets). The marketer faces a
number of important decisions:

• What criteria should be used to evaluate markets?

• How many markets to enter (one, two or more)?
• Which market segments are the most valuable?

When a marketer enters more than one market, the segments are often labeled the primary target
market, secondary target market. The primary market is the target market selected as the main focus
of marketing activities. The secondary target market is likely to be a segment that is not as large as
the primary market, but has growth potential. Alternatively, the secondary target group might
consist of a small number of purchasers that account for a relatively high proportion of sales volume
perhaps due to purchase value or purchase frequency.

In terms of evaluating markets, three core considerations are essential:

• Segment size and growth

• Segment structural attractiveness
• Company objectives and resources.

Criteria for evaluating segment attractiveness

There are no formulas for evaluating the attractiveness of market segments and a good deal of
judgment must be exercised.[81] Nevertheless, a number of considerations can be used to assist in
evaluating market segments for overall attractiveness. The following lists a series of questions that
can be asked.
Segment size and growth

• How large is the market?

• Is the market segment substantial enough to be profitable? (Segment size can be
measured in the number of customers, but superior measures are likely to include sales
value or volume)
• Is the market segment growing or contracting?
• What are the indications that growth will be sustained in the long term? Is any observed
growth sustainable?
• Is the segment stable over time? (Segment must have sufficient time to reach desired
performance level)

Segment structural attractiveness

• To what extent are competitors targeting this market segment?

• Do buyers have bargaining power in the market?
• Are substitute products available?
• Can we carve out a viable position to differentiate from any competitors?
• How responsive are members of the market segment to the marketing program?
• Is this market segment reachable and accessible? (i.e., with respect to distribution and
promotion)

Company objectives and resources

• Is this market segment aligned with our company's operating philosophy?

• Do we have the resources necessary to enter this market segment?
• Do we have prior experience with this market segment or similar market segments?
• Do we have the skills and/or know-how to enter this market segment successfully?
CHAPTER -5

RESEARCH
METHODLOGY
RESEARCH METHODOLOGY
A Research Methodology defines the purpose of the research, how it proceeds, how to
measure progress and what constitute success with respect to the objectives determined for
carrying out the research study. Research methodology is a collective term for the structured
process of conducting research. A research methodology defines what the activity of research
is, how to proceed, how to measure progress, and what constitute success. The term research
methodology also referred to as research methods, usually encompasses the procedures
followed to analyse and interpret the data gathered. Research methodology adopted should
be such that the research objectives are achieved with great accuracy. Systematic
methodology followed provides great insights in solving the research problem. Research
meth. These traditions differ from various quantitative and qualitative research methods.

Qualitative Research
Qualitative research is all about exploring issues, understanding phenomena, and answering
questions. Qualitative research is best described as a category of research methods rather than
a single research framework. Qualitative research approach is an intricate fabric composed
of minute threads, many colours, different textures, and various blends of materials (Creswell,
1998). It is identified with several paradigm terms such as naturistic, humanistic, and
interpretive. The aim of the quotative approach is to understand the phenomenon in its own
terms (Hirschman, 1986); the first step on the qualitative path is data collection. The
philosophical assumption is "Knowledge is in the meanings people make of it; knowledge is
gained through people talking about their meanings" (Creswell, 1998:19). The second step in
the qualitative path is to describe the phenomenon fi^om the point of view of the informants.
Qualitative research is designed to explore the deep structure of the phenomenon using thick
descriptions that explore the multiple dimensions and properties of the phenomenon.
Descriptions are generated using qualitative techniques such as asking open ended questions
and examining multiple data sources (Hirschman, 1986), which can take the form of
interviews, observations, documents and audio-visual materials. The next step is building a
substantive theory- a theory of phenomenon-from descriptive data. Qualitative data is
analysed working inductively from detailed parts to more general perspectives that may be
called categories, themes, dimensions, or codes, depending on the analytical method
prescribed by the methodology selected by the researcher. The analysis yields substantive
theory of the phenomenon, which is typically a process model describing relationships among
variables with feedback loops that capture the dynamics nature of the phenomenon.

Quantitative approach
Quantitative research refers to the systematic empirical investigation of social phenomena via
statistical, mathematical or computational techniques. Qualitative research, generates statistics
through the use of large-scale survey research, using methods such as questionnaire or structured
interviews. The goal of the quantitative approach is to add to the body of knowledge by building
formal theory that explains, predicts and controls the phenomenon of interest. The first step in the
quantitative approach is to review appropriate literature in order to develop a conceptual framework
that specifies relevant variables and expected relationships among them (Bickman & Rog, 1998).
Any field interview at this stage is often for the purpose of developing and refining measures or
clarifying the variables and relationships among them rather than generating the conceptual
framework as is the case with the qualitative approach.

The appropriate research design formulated is detailed below.

• Exploratory research: this kind of research has the primary objective of development of
insights into the problem. It studies the main area where the problem lies and also tries to
evaluate some appropriate courses of action.
• The research methodology for the present study has been adopted to reflect these realties
and help reach the logical conclusion in an objective and scientific manner. • The present
study contemplated exploratory research

SAMPLE DESIGN

My survey is conducted with 100 customers to make the data analysis representative.

Data Collection
 The data for the survey will be conducted from both Primary as well as Secondary sources.

Primary Data: -
Using personal interview technique, the survey the data will collect by using questionnaire.
The primary data collection for his purpose is supposed to be done by judgment sampling
conversation sampling. Questionnaire has been formatted with both open and close
structure questions. Primary data is information collected through original research. A
marketer typically seeks primary data specifically for their objectives. The method used to
collect primary data depends on the amount and type of data the company is interested in.
Some companies choose to conduct the research themselves, while others may invest in

research from an outside source.

Secondary Data: -
Secondary data is information collected from public sources such as websites, periodicals
or other literature. When gathering secondary data, it's important to verify the reliability of
a source before using its information. Beginning a research project with secondary research
allows for an easy transition to primary research if a marketer wants to pursue both forms
of research Secondary research is a type of research that has already been compiled,
gathered, organized and published by others. It includes reports and studies by government
agencies, trade associations or other businesses in your industry. For small businesses with
limited budgets, most research is typically secondary, because it can be obtained faster and
more affordably than primary research.
• By going through various records.
• By going through the magazine of the company.

OBJECTIVE OF THE STUDY

1. To group the cosmetic customers on the basis of their homogeneous characteristics, such
as nature, habits, income, behaviour qualities and needs etc.

2. To identify the purchase frequency of the customers towards cosmetic products.

3. To study the variation in consumer responses, for demographic variables like age, income,
category and education.
4. To study the influence of advertising on the purchase of cosmetic products
5. To study the influence of influence of marketing mix strategies on consumer satisfaction.
6. To study the consumers' individual, psychological and socio-cultural factors responsible for
the selection of cosmetics.

LIMITATIONS OF STUDY
All though all out efforts have been made, especially in the past decade, to study consumer
behaviour, still it remains untouched in many areas and aspects. It has been observed that the forces
operating on the Indian consumer are for different from those that operate on the western
counterpart and so are the opportunities available to the marketers. This has put a constraint on the
on-going consumer research resulting in limitations to the study. Some of these limiting factors are
• Consumers not only differ from one another but have varying feelings about the
same object or phenomenon from time to time.
• Consumers often have powerful 'psychological' rather than logical reasons for
buying, though they strongly believe that what they do is always logical. Their
attitudes have a strong emotional base.
• 3. The individual consumer is conditioned by her environment, her upbringing, and
her education. In many cases, these social and group influences are the most
powerful motives.
• Factors like needs, drives, past experiences, personality, value system etc.,
influences the consumers view of reality considerably.
• Though the buyer may be different from users, majority of buying decisions are joint
decisions and the relative dominance of individuals, members in the decision-
making units and their interactions determines the final outcome.
• Changing environment of the firm and that of the consumer effect (vis-a-vis) each
other's behaviour.
• A marketer can only indirectly influence a consumer's needs motives etc..
• Consumers generally hope to satisfy their desires with a single purchase.
• Post purchase as well as pre-purchase behaviour is equally important to study
consumer behaviour.
• Small geographical unit Devanter city was considered, to bring out
reliability and validity, for multi-dimensional study of consumer behaviour.
SCOPE OF THE STUDY

The benefits of the study for the researcher is that it helped to gain knowledge and experience and also
provided the provided the opportunity to study and understand the prevalent Market Segmentation
procedures.
My study is confined to the H.R Department. The only dimension I could cover was Market
Segmentation procedure of Himalaya Wellness.
CHAPTER -6

DATA ANALYSIS
AND
INTREPRETATION
DATA INTERPRETATION

A questionnaire was prepared for the purpose of getting feedback from the employees and manager
regarding “MARKET SEGMENTATION” of their company. 100 employees are selected from different
department and were distributed the questionnaire from the purpose of the study.

ANALYSIS OF THE DATA

The analysis of the data is done as per the survey finding. The data is represented graphically in percentage.

The percentage of the people opinion were analysed and expressed in the form of charts and have
been placed in the next few pages.
DATA ANALYSIS AND INTERPRETATION:

SECTION A DEMOGRAPHIC PROFIT OF RESPONDANT

Q1) Gender
[Link] particular No of respondent
1 Male 27
2 female 73

Column2

Male female

Interpretation:
This table represent those 27 males of are using cosmetic product while 73 were female.
Q2) Age group of respondents
[Link] Particular No of respondent
1 18-25 38
2 25-36 22
3 35-45 43
4 45&above 7

Column1

18-25 25-36 35-45 45&above

INTREPRETATION:
This table represents that the 38 respondents were from 18-25 age group while from age of 25-
36 were about 22 and 43 were from 35-45 age group. 7 were from the age group of 45 and
above.
Q3) Highest education obtained
[Link] particular No .of respondent
1 XII 20
2 Graduation 35
3 Post-graduation 15
4 Others 30

Sales

XII graduction post graduction Others

INTREPRETATION:
This table represents that 20 respondents were studying in class 12 th while 35 were doing
graduation, 15 had done the post-graduation while 20 have done some other courses.
Q4) Occupation of the respondents
[Link] Particular No of respondent
1 Student 15
2 Services 25
3 Business 35
4 Home makers 15
5 Others 10

Sales

Student Services Bussiness Home makers Others

INTREPRETATION:
This table represents those 15 respondents were students and 25 were doing services while 35
were doing business and 15 were home makers and 10 were doing some other thing.
 Q5) How often do you buy cosmetics product Currently?

[Link] Particulars No. of Respondents

1 Rarely 20
2 Frequently 60
3 Very frequently 13
4 Do not shop 7

Chart Title
70

60

50

40

30

20

10

0
Rarely Frequently Very frequently Do not shop

Column1

INTREPRETATION:
The above table represents that the 20% of customer purchases products rarely, whereas 60% of
them purchases frequently. 13% purchases very frequently while 7% do not shop.
Q6) Which factor influence you the most while choosing cosmetics brand?

[Link] Particular Respondent

1. Peer group 60

2. Family 16

3. Work place 8

4. Advertisement 16

peer group family work place advertisement

INTREPRETATION:
The above table represent that 100 customer 60% of them are peer group, 16% are family, 8% are
work place and 8% are from advertisement.
 Q7) Do quality of advertisement change your perception about the product?

[Link] Particulars Respondent

1. Yes 45

2. No 55

3. May be 100

YES NO MAY BE

INTREPRETATION:
The above table represent that 45% of the respondent said they feel the yes and 55% feels that the
price of the product is no and 0% feels may have seen there advertisement.
Q8) Any method adopted by the company to create customer satisfaction?
[Link] Particulars No. of respondents
1. Customer feedback through 69
surveys
2. Web analytics 21
3. Customer satisfaction score 10
Total 100

Customer feedback through surveys Web analytics Customer satisfaction score

INTREPRETATION:
The above table represent 69% of the respondent believe customer feedback through survey they
will create customer satisfaction among customers and 21% think is through web analytics while
10% thinks customer satisfaction score should be considered.
Q9) Do you buy a cosmetic product after watching its advertisement?

[Link] Particulars No. of respondents

1. Yes 80
2. No 20
Total 100

Yes No

INTREPRETATION:
The above table represent that 80% customers are satisfied with the diversity in the product range
while 20% don’t think the same.
 Q10) According to you customer satisfaction is?

[Link] Particulars Respondent

1. Cost effective 10

2. Best quality 70

3. Easy availability 20

4. Total 100

cost effective best quality easy availablity

INTREPRETATION:
The above table represents that 10% people believe that if they will get cost effective then they will
be more satisfied.70% think best quality can be better whereas 20% want easy availability.
 Q11) According to you, what will happen if a customer is satisfied?

[Link] Particulars No. of respondents

1. Increasing sales revenue 65
2. Customer loyalty 15

3. Reduction in marketing 20
expenses
Total 100

Increasing sales revenue Customer loyalty Reduction in marketing expenses

The above table represents 65% of respondent think that if the customer is satisfied this will
increases sales revenue while 15% thinks believe that it will rise customer loyalty. 20% thinks it
will lead to reduction in marketing expenses.
Q12 What do you look first when you buy a product?

[Link] Particulars No. of resopondents

1. Product quality 40
2. Price 25
3. Customer emotion 35
Total 100

Product quality price customer emotion

INTREPRETATION:
The above table represents that 40% of the respondent believe that product quality contributes is
satisfaction factor 25% believe in price and 35% think in customer emotion.
Q .13 Which advertisement mode provide you more information about cosmetics
product?

SOURCES No. of respondents

Magazine 30

TV(local channel) 10
Local newspaper 40

Radio 20
Total 100

Magazine tv local newspaper radio

INTREPRETATION:
The above chart presents that out of 100 respondents, 34 respondents said that we knows about
the store through local newspaper, 28 said that relative/ friends, 20 said that radio, 10said that
visuals, 6 said that magazine and the 2 respondent said that they knows about the store through
local TV channel.
From this survey it is concluded that maximum number of respondents knows about the product
through local newspaper.
Q14. What is the age group of customers of cosmetic product?
[Link] Age group No. of respondent

1. 18-25 40

2. 26-35 20

3. 35-45 15

4. 45& above 25

Total 100

Sales

18-25 26-35 35-45 45& above

INTREPRETATION:
The above chart presents those 40 respondents of the age group 18-25 were using Himalaya
products while of the age group 26-35 only 20 respondents were there.15 respondents were of the
age of 35-45 whereas 25 were from the age of 45 and above.
CHAPTER-7

CONCLUSION
AND
SUGGESTIONS
CONCLUSION
• After completing my training cosmetics product. I came to conclude that the cosmetic
product is company progressing day by day. The present condition of the company is fair because
each and every individual, groups, department etc. is well coordinate to improve the level of
standard.

• The company for its development purpose must see its employee’s works together as a
family, for this the company needs to take steps for motivating them.
• Finance department is booming phase there is a big hike in the profit every year and
company are constantly trying to restrictor is financial liabilities and make its financial based
stronger. It is trying to maintain zero level inventories so that money is not block.

Today the cosmetic product stands tall at the forefront of the industry in India. The Sterling
cosmetic product operates sound business in diverse areas like face wash soap oil etc product.
SUGGESTION

• Our main suggestion to cosmetics’ product is that they should concentrate on the
Publicity of their showroom so that awareness level of the people of this area should be
increase. Give advertise on Television through local channel or cable of Faridabad.
• For maintaining good relationship and contact with customers greeting should be
sent to the customers greeting should be sent to the customer on the occasion of Diwali,
new year sale for the customers.
• Training and guidance to be provided to the employee that how to behave with
customers so that they should behave in more proper way with customers.
• They should provide a scheme of 10% discount on the product should be provided
to the customers who came service for five times For New product should be introduced
in various segments.
 CHAPTER-8

ANNEXURE
(BIBLIOGRAPHY & QUESTIONAIRE)
 BIBLIOGRAPHY

 Ashwatthama Khujand Resource Management, McGraw Hill, 4 t h Edition,2005.

 CHHABRA T.N, Principles & practices of management, Dhanat Rai and co. (p) Ltd, Delhi,
2000.4th Edition

 Flippa, Edwin b., personnel management, McGraw-Hill Kogaku Sha co. ltd., Tokyo, 1976,1st
Edition

 Brian E. Becker, The HR Scorecard, Cloud tail India

 Chris Duke, Recruiting the Right Staff, 2000

 Lucy Adams, HR Disrupted, 2017

 Daniel Kahneman, Thinking, Fast and Slow, 2011

WEBSITE

[Link]

[Link] [Link]

[Link]

[Link]
 QUESTIONAIRE

Section A: Demographic profile of respondent:

Q1. Gender:

a) Male
b) Female
Q2. Age:

a) 18-25 years

b) 26-35 years

c) 35-45 years

d) 45years and above

Q3. Highest education obtained:

a) XII
b) Graduation
c) Post graduate
d) Others
Q4. Occupation:

a) Student
b) Service
c) Business
d) Homemaker
e) Other
Q5. How often do you buy cosmetics product currently?

a) Rarely

b) Frequently

c) Very frequently
 d) Do not shop

Section B:
Q6) which factor influence you the most while choosing cosmetic product
1. Peer group
[Link]
3. Work place
4. Advertisement
Q7) Do quality of advertisement change your perception about the product?
1. Yes
2. No
3. May be
Q8) Any method adopted by the company to create Customer satisfaction?
1. Customer feedback through survey
2. Web analysis
3. Customer satisfaction
Q9) Do you buy a cosmetic product after watching its advertisement?
1. Yes
2. No
Q10) According to you customer satisfaction in?
1. Cost effective
2. Best quality
3. Easy availability
Q11) According to you what will happen if a customer is satisfied?
1. Increase in sales revenue
2. Customer loyalty
3. Reduction marketing expenses
Q12) What do you look first when you buy a Product quality?
1. Product quantity
2. Price
3. Customer emotion
Q13) Which advertisement mode provide you more information about cosmetic product?
1. Magazine
2. TV
3. Local Newspaper
4. Radio