Question

In the 1950s, Kellyn Derma, a skin care company, produced only one type of lotion targeting the entire skin care market. Today, it produces different types of creams and lotions to suit different age groups and different skin types. In this scenario, Kellyn Derma is using the strategy of _____.

Answer 1

The correct answer is "market segmentation". Kellyn Derma started as a company that produced only one type of lotion for the entire skin care market. From that point, they decided to produce different types of creams and lotions for different age groups and skin types, meaning that they diversified their product to fit different kinds of costumers. The process of dividing their market into segments according to what each group needs/wants, is called market segmentation. This allows a business to specifically address each group according to their similarities and properly reach each of those groups/segments.