Lipsmacker to the Philippines

Topics: Metro Manila, Cosmetics, Greater Manila Area Pages: 6 (1232 words) Published: February 12, 2011

Lipsmacker, an American lip balm brand, has massive business potential in the Philippines. It specializes on its special flavored lip balms ranging from a wide array of flavors such Strawberry Banana and M&M's. The brand has an existing demand in the Philippine Market, as evidenced by online forum and blog site posts. Also, no Philippine cosmetic brand currently provides the same product offerings.

Catering to a niche tweenager market is not entirely new.  Various brands ranging from shampoo to clothing lines (i.e. Palmolive Kids and Kids of Bayo) specifically catered to tweenagers have already dominated the market. This depicts high consumer acceptance for such market.

Also, the P16.8 billion in spending power of the Filipino tweenagers in 2007 (45.4% of P37 billion spending power combined with young children) according to supports the great potential of the market. Despite the optimism of the financial projection, the effect of the downturn in the economy may have a bigger impact on consumer spending power for this group. Also, tweenagers do not have full control of their purchase decisions, as they are still under the control of their parents. Moreover, LipSmacker foresees a number of indirect competitors such as Avon, Careline by Ever Bilena and Fashion 21 Cosmetics, as well as second-tier competitions such as Vaseline, Blistex and Chapstick as its threats.


Marketing Segmentation is necessary for Lipsmacker to identify and eventually service its target market. The three bases used are the following: demographic segmentation, geographic segmentation as well as psychographic segmentation

Under demographic segmentation, the variables considered are age and socio-economic class. Age is carefully identified because cosmetics are generally age-specific. For example, Revlon’s age-defying scientific formulation is for older women, while Maybelline’s cosmetic line is targeted to hip and young women. For Lip Smacker, it easily identifies a younger market. The rationale behind this is that cosmetic needs greatly vary between different age groups. Lastly, social economic class is considered because lip balm is not an immediate need; thus it is important to determine the purchasing power of the potential buyers of the product.

Geographically, LipSmacker should regionally segment its market in consideration of distributional limitations. Aside from this, it is also imperative for the brand to profile its market according to its psychographic make-up. This basis of segmentation segregates consumers according to their lifestyles. Doing so, it considers a number of potential influences on buying behavior. These factors directly affect the interest of consumers in the products and goods that they purchase, as they often serve an expression of their lifestyle.


The target market of Lip Smackers in the Philippines is eight to fourteen year old female tweenagers from socio-economic classes A and B residing in the Greater Manila area. These tweenagers fall under the Strivers category.

WHY TWEENAGERS? This is in line with the global positioning of LipSmacker. This age group is the most likely to favorably respond and appreciate the special favors lip balms.

WHY SEC A AND B? Tweenagers belonging to SEC A and B are the most capable and are highly inclined to purchase products aside from their basic and immediate needs.

WHY TWEENAGERS RESIDING IN THE GREATER MANILA AREA? Tweenagers residing in the Greater Manila area enjoy high accessibility to Lip Smacker. This is because Metro Manila has the greatest concentration of the population, thus it is easier to reach the market. 

WHY STRIVERS? According to Businesswise LTD, Strivers attach importance to image and status and as a means of enabling acceptance by their peer group while holding onto traditional values at the same time.

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