Question

A well-established cosmetics company decides to launch a chain of beauty salons across the country. in order to attract a large clientele, these salons will offer premium beauty services and membership benefits. in the context of strategy formulation, this launch is an example of:

Answer 1

A well-established cosmetics company decides to launch a chain of beauty salons across the country. in order to attract a large clientele, these salons will offer premium beauty services and membership benefits. in the context of strategy formulation, this launch is an example of: demographic segmentation. In this example, the company that is already well-established is hoping to branch out to high end clients that would like to receive added pampering benefits by being members of upscale beauty salons. Though they are launching the salons throughout the country, they are marketing towards demographics that will fit the market of what type of client base they are looking for.

Answer 2

I hope this would help...

If the company decided to offer services and benefits that doesn't focus with any specific target, there is no segmentation. This is known as undifferentiated strategy, They tried to ignore specific target and try to appeal to the whole market. That's why for some, they call it mass marketing.

Companies use this strategy so their message will reach the largest number of consumers. This is actually a good strategy as it don't limit target audiences.