The LUX Company is a major global player in the field of cosmetics and beauty soap products. It was originally established in 2001 and is based at Dubai, United Arab Emirates. The company started as a small company, but has now grown to become one of the world’s renowned companies. It has many branches all over the world. For instance, more than 100 countries across the world enjoy the LUX Company products. It is registered as a trading company, an agent, and a distributor or wholesaler. The company is one of the best performing cosmetic, fragrance, and beauty products companies in the world. It also offers a wide array of products, which include energy drinks, soft drinks, confectionery items, and snack items among others. The LUX Company has many subsidiaries, which keep monitoring its marketing and distribution activities of its range of products. It employs marketing strategies in its operations in order to gain a competitive advantage. The company aims at delivering appropriate results to customers profitably.
Both macro and micro factors affect any business environment. The macro environmental factors include political, economic, social, and technological factors (Pillai & Bagavathi, 2009). As for the political factors, the LUX Company has to comply with the rules and laws governing businesses in the UAE. Failure to do this will result in huge fines or bad market reputation. The economic factor is determined by the purchasing power of customers both locally, nationally and internationally (Ferrell & Hartline, 2011). It is clear that most of the LUX products come after the target communities meet their basic needs. Therefore, the Lux soap of the company may not do well if the marketers target the low and middle income earners. Social and cultural factors could also restrict marketing of the Lux soap. In addition, the LUX Company will need to invest intensively in IT in order to improve its R&D practices and increase its sales, profits and revenues.
The micro factors include the internal environmental forces (Pride, 2011). In the case of the LUX Company, the internal forces include the employees, machinery, capital, and distribution agencies, among others. The top corporate management of the LUX Company needs to arrange strategies to tackle challenges resulting from the aforementioned forces. This can help the company introduce the Lux soap in the market successfully.
In order to meet the customers’ needs and preferences, the LUX Company employs market segmentation strategies. These include psychographic, geographic, demographic and behavioral segmentation strategies (McDonald & Dunbar, 2012). Geographically, the marketers of the LUX Company need to make sure that the potential customers in different places access the Lux soap at any time. Demographically, the company needs to segment the market for its Lux soap, basing on age, life-cycle stage, income, and social class. In reference to psychographic segmentation, the company needs to group its target audience basing on their lifestyle, personality, and values. As for the behavioral segmentation, the marketers need to observe keenly how people perceive the new Lux soap. This will enable them to employ the best tactics to convince customers to try the product.
Current Target market
Women aged between 16 and 60 years are the primary target audience for this product (Lux soap). According to researchers, the urban and sub-urban middle class are the largest part of the UAE. These classes take the highest population in the country. These people are more likely to demand the Lux soap, which is affordable and has good quality. Therefore, the LUX Company will target this audience for its product.
Ferrell, O. C., & Hartline, M. D. (2011). Marketing strategy. Australia: South-Western Cengage Learning.
McDonald, M., & Dunbar, I. (2012). Market segmentation: How to do it and how to profit from it. Chichester: John Wiley & Sons.
Pillai, R. S. N., & Bagavathi, D. (2009). Modern marketing: Principles and practices. New Delhi: S Chand.
Pride, W. M. (2011). Marketing principles. South Melbourne, Vic: Cengage Learning.