Company 1 : Amway

Product : Satinique

Approach: Product differentiation

Reason: Before segmenting market and creating products based on their needs, Amway came up
with a product that differentiates itself with other products in the market in terms of its
performance and contents.

Satinique has “ Ceramide infusion system” which contains a moisturizing agent that can restore
nutrients in hair, which inturn is core attribute of the product.

Once the product was made they decided to target professional women based on their needs, that is
to look best and have professional, salon-quality product which is recommended by friends, which
was clearly based on the product results.

This clearly justifies the product differentiation strategy that Amway used to deliver the promised
quality and service.

Company 2: Nivea Sun

Product: Suncare range

Approach: Market Segmentation

Reason:

3 main usage segments in sun care range:

Protection, after sun and self-tan and they have developed their portfolio around these usage
segments.

Nivea Sun gathered market research and segmentation analysis to develop product that specifically
matches the requirements of a particular segment which in this case is men and children.

Market research shown that awareness of need for protection from sun does not necessarily lead to
product purchase and usage.

They found out that women prefer luxurious nature of product, men prefer convenience and
children specifically don’t enjoy application process

To cater the needs of market segment based on demographics of gender, they developed a product
that was easy to apply ( spray application device ) to target men.

And as children don’t enjoy the sunscream application process and therefore they introduced a color
formulation for children’s sun products in order to make the application process fun, which is
segmentation based on demographics of age.

This clearly justifies the market segmentation approach used by Nivea Sun to target specific segment
of the population.