SEGMENTATION OF MARKET :SUGAR COSMETICS

INTRODUCTION

Sugar Cosmetics is one of India's fastest-growing

premium cosmetic companies, with a cult
following among millennials. Thanks to its clutter-
breaking attitude, unique low-poly packaging, and
chart-topping products, it has become the first
choice of many Indian women. The brand's
bestselling goods in the Lips, Eyes, Face, Nails &
Skin categories are sent all over the world from
state-of-the-art facilities in Germany, Italy, India,
the United States, and Korea.
The brand is devoted to producing products that
are a great fit for every Indian skin tone
throughout seasons and across the calendar, with
a cruelty-free line that is high on design and high
on performance. Sugar Cosmetics is aggressively
expanding its strong existence with over 35,000
outlets across 550 cities. It is backed by the faith
of marquee investors and the passion of millions
of beauty aficionados.
The cosmetics industry is one of the most dynamic
and competitive sectors globally. To effectively
navigate this landscape, businesses must employ
strategic marketing approaches, with market
segmentation being a crucial component. Market
segmentation involves dividing a broad target
market into smaller, more manageable segments
based on shared characteristics. This enables
companies like Sugar Cosmetics to tailor their
products and marketing strategies to the specific
needs and preferences of each segment.
Sugar Cosmetics has carved a niche for itself by
offering a wide range of makeup and beauty
products that cater to diverse consumer needs. To
effectively analyze the market segmentation of
Sugar Cosmetics, we will delve into the following
aspects:
1.Demographic Segmentation
2.Geographic Segmentation
3.Psychographic Segmentation
4.Behavioral Segmentation
 5.Competitive Landscape

1.Demographic Segmentation
Demographic segmentation involves categorizing
consumers based on characteristics like age,
gender, income, and education. For Sugar
Cosmetics, this approach helps the brand target
specific consumer groups with tailored products.
1.1 Age Sugar Cosmetics primarily targets
consumers in the age group of 18 to 35. This
demographic is particularly interested in makeup
products, making them a key market for the
brand. Sugar offers products that cater to the
needs and preferences of both teenagers and
young adults.
1.2 Gender The cosmetics industry traditionally
caters to women, but Sugar Cosmetics has also
introduced several product lines for men. While
the majority of their products are aimed at
women, this inclusive approach demonstrates the
brand's adaptability to changing market dynamics.
1.3 Income Sugar Cosmetics products are
positioned as affordable luxury, making them
accessible to a broad income range. However, the
brand does have premium product lines that cater
to higher income segments. Their pricing strategy
ensures that both budget-conscious and high-
income consumers can engage with their
products.
1.4 Education Sugar Cosmetics typically attracts
consumers with at least a moderate level of
education, as makeup products often require a
certain level of knowledge and skill for effective
use. The brand offers tutorials, tips, and guides,
demonstrating its commitment to educating
consumers about makeup application.

2.Geographic Segmentation
Geographic segmentation is crucial for a brand
like Sugar Cosmetics because preferences for
makeup products can vary significantly across
different regions.
2.1 Domestic Market Sugar Cosmetics started in
India and has experienced remarkable success in
its home country. They have a strong presence in
metropolitan cities like Mumbai, Delhi, Bangalore,
and Chennai. The brand caters to the diverse
beauty needs of Indian consumers and has a deep
understanding of the local market.
2.2 International Market Expanding beyond India,
Sugar Cosmetics has made inroads into
international markets, including the United States,
Canada, the United Kingdom, and the Middle East.
They adapt their marketing and product offerings
to suit the preferences and trends of each region,
demonstrating their global market awareness.

3.Psychographic Segmentation
Psychographic segmentation takes into account
consumers' lifestyles, values, and aspirations.
Sugar Cosmetics has successfully connected with
consumers by aligning its products with certain
psychographic traits.

3.1 Lifestyle
Sugar Cosmetics is known for its bold and vibrant
product packaging, reflecting a lifestyle that is
confident, expressive, and contemporary. Their
products appeal to individuals who want to make
a statement through their makeup.

3.2 Values
The brand places an emphasis on cruelty-free and
high-quality formulations. This resonates with
consumers who prioritize ethical and sustainable
choices when it comes to cosmetics. Sugar
Cosmetics aligns with values like cruelty-free
beauty and sustainability.

3.3 Aspirations
Sugar Cosmetics encourages consumers to
explore their creativity and express their unique
beauty. By positioning their products as tools to
achieve personal and professional aspirations, the
brand taps into the ambitions of their target
audience.

4.Behavioral Segmentation
Behavioral segmentation involves understanding
consumer behavior, which is crucial for marketing
strategies and product development.

4.1 Usage Rate

Sugar Cosmetics caters to both occasional and
frequent users of makeup. They offer a wide
range of products, from everyday essentials to
special occasion makeup, addressing the diverse
usage patterns of their consumers.

4.2 Brand Loyalty

The brand has successfully built a loyal customer
base by consistently delivering high-quality
products. Sugar Cosmetics often runs loyalty
programs and promotions to reward repeat
customers and encourage brand loyalty.

4.3 Online Shopping Behavior

Sugar Cosmetics has a strong online presence, and
they understand the online shopping behavior of
their target audience. They offer a user-friendly
website, detailed product descriptions, and online
tutorials to facilitate the purchasing process for
their tech-savvy consumers.

4.4 Response to Trends

The cosmetics industry is highly influenced by
ever-changing trends. Sugar Cosmetics is agile in
responding to these trends, launching limited
edition collections and collaborating with
influencers to stay relevant and appealing to their
consumers.

5.Competitive Landscape
Understanding the competitive landscape is
essential for Sugar Cosmetics to maintain its
position in the market and identify opportunities
for growth.

5.1 Domestic Competitors

In India, Sugar Cosmetics competes with
established players like Lakmé, Maybelline, and
L'Oréal. They distinguish themselves through their
commitment to quality and affordability.

5.2 International Competitors

Internationally, Sugar Cosmetics competes with
brands like NYX, e.l.f. Cosmetics, and ColourPop.
While these brands have a global presence, Sugar
Cosmetics leverages its Indian identity and ethical
positioning to stand out.

5.3 Differentiation Strategies

Sugar Cosmetics differentiates itself through its
cruelty-free products, vibrant packaging, and bold
marketing campaigns. They have also introduced
innovative product lines like matte lip crayons and
metallic eyeliners.

Conclusion

Sugar Cosmetics has demonstrated a keen

understanding of market segmentation, allowing
the brand to effectively target specific consumer
groups with tailored products and marketing
strategies. By delving into demographic,
geographic, psychographic, and behavioral
factors, Sugar Cosmetics has successfully
positioned itself as a dynamic and consumer-
centric brand in the cosmetics industry.

Through a combination of inclusive marketing,

ethical practices, and innovative product
offerings, Sugar Cosmetics has garnered a loyal
customer base both in India and internationally.
As the cosmetics industry continues to evolve,
Sugar Cosmetics must remain attuned to changing
consumer preferences and emerging trends to
sustain its success and further expand its market
presence. By staying true to its brand ethos and
continuing to prioritize consumer-centric
strategies, Sugar Cosmetics is poised for
continued growth and influence in the global
cosmetics market.

BY AKARSHITA(BCOM HONS)
ROLL NO.21/89236
GROUP:4