1.Targeting Issue:Aisling needs to decide which market segment(s) it should use to target with its products. Over the past two years, Aisling has worked with a local business school and interns to identify fourpotential segments within the market for hair color products. Now, Aisling has paired uppotentialAisling Cosmetics products for each of the potential segments: The segments were created using 2011 data which may or may not be relevant for 2014 and future years?Some additional data for 2019 has been provided below (there is much more available).For 2011-forward data, see Market data (2011) for overall hair beauty business available at sources such as:http://www.prweb.com/releases/2012/3/prweb9313396.htm).Additional sources and years of data are provided via links below.

Market Segment

Product

Description

General consumer market

Aisling Beauty

Aisling Beautyis a line of hair color products available in standard colors and finishes.

Specialty consumer market

Aisling Specialty

Aisling Specialtyis a line of hair color products for special circumstances, such as highlights, brassiness banishment, and short hair.

Luxury consumer market

Aisling Luxe

Aisling Luxehair care products blend ancient Vietnamese botanicals with the latest French nanotechnology for a luxury hair experience.

Hair salon market

Aisling Pro

Aisling Prois a line of hair color products for professionals, designed to treat client hair problems such as dry and frizzy hair.

****Additional links to more recent industry links are provided at the end of this document to save you some research digging time - Feel Free to research and provide your own research findings and recommendations.See Page 4 at end of this document.

2.Leveraging information provided, merged with your research data, thinking about Aisling Cosmetics,and your current business experience, ratePotential,Alignment, andMarketabilityfor the four segments on a scale of 1 to 5, with 5 being the best rating. A sample entry below has been provided for the "Hair Salon Market"targeting professional hairdressers - provide your own rating for this segment in open cells provided.

3.

Segments

Potential

Alignment

Marketability

General consumer market

4/5 They would not have a lot of brand recognition, but they sure know what they are selling to what group. Their products are very well aligned.

Specialist consumer market

Luxury consumer market

Hair salon market (example)

EXAMPLE: Hair salon market (ONLY AN example)

4/5; Salon product sales at $72.4 billion with 3.6% growth

3/5; Poor brand awareness due to young company

5/5; Many venues to reach market, such as modernsalon.com

3. State advantages and disadvantages of different segment targetingstrategies. Follow the approach shown in the example entries for the "single segment concentration."

Segment Strategy

Description

Advantages

Disadvantages

ONLY AN EXAMPLE

Single-Segment Concentration

Sell pro-line products to hair salons only

Focus

Exposed to changes in demand

Single-Segment Concentration

Selective Specialization

Product/ Service Specialization

Market Specialization

Full Market Coverage