Final Customer Buying from the Product Producer

Use Steps: Use steps include all the customer's value added activities or the consumption of the product itself. These steps include all the costs the customer incurs in employing the product in its intended use.

2. Emotional: Segment customers according to the personal emotional needs of the segment.

A. Needs for comfort and status

2. Status in the community

Need for personal achievement:
Improvement in personal qualities

No. SIC Year Note
1 2844 2003 L'Oreal has dominated the $90 billion beauty product industry by approaching consumers with the impression that their products are cultured and define beauty because of its origin-Paris. The company's new competition is Procter& Gamble Co which creates new products by testing their competitor's and creating new ones. They started the war in 2001 with a $5 billion take over of Clairol and then became the largest seller of cosmetics in supermarkets and club stores. P&G dominates the skin cleansers, moisturizers and shampoos while L'Oreal dominates cosmetics. Now P&G is trying to penetrate into cosmetics while L'Oreal is trying to sell more shampoo and conquer Wal-Mart which is P&G's biggest customer.
2 3600 1987 Nike has developed a computerized pedometer that measures distance, speed & time, & uses a digitized voice to report the information.
3 3827 1985 Essilor International SA introduced its innovative progressive lenses in 1971, which changed the market, Sola's first progressive lenses came out many years later, in 1985.
4 5812 2003 The fast-food price wars have eaten into hamburger profits, but Wendy's International Inc. has found an unlikely alternative: salads. The nation's No. 3 burger chain last spring developed a salad that broke the mold for fast food. Called Garden Sensations, the new dish offered fancy lettuce varieties in deep plastic bowls, garnished with grape tomatoes, mandarin oranges and the like. In short order, sales of salads leapt to more than 10% of Wendy's sales mix, from 3% a year earlier. Now come copycat offerings from competitors ranging from Jack in the Box to McDonald's.

<<Return to Use Steps