International chronic medical conditions, according to (Hariprasad et al.,2013).

International
Emerging Themes

Unit 1 Discussion

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Jack Cullinane

 

As outlined to us in the discussion question, it is
estimated that nine groups of urban consumers (especially the below mentioned
three) will generate nearly 75% of urban consumption growth from 2015 to 2030.
These three groups are:

1.      
Retiring and Elderly in developed countries
(Western Europe, North East Asia)

2.      
China’s working age population (expanding to 20%
by 2030)

3.      
North America’s working age population (becoming
more ethnically diverse)

 

Group 1:

Known as the Baby Boomers, this cohort of consumers has a
large disposable income due to their “low-cost mortgage schemes, income and
inexpensive healthcare plans” (ULAW).
As a generation of people that are now in their 70’s, more than 50% of people
above 60 years of age, suffer from chronic medical conditions, according to (Hariprasad et al.,2013). As their
strength and mobility weakens, creating a product to help with routine tasks is
of great interest. As seen in the McKinsey report, they already spend 38% of
their household expenditure on housing and utilities.

Introducing technology, that can open doors, windows, draw
curtains, turn light switches on and off and operate electrical appliances with
the touch of a button, could prove to be very successful. A standard, inexpensive
and durable Bluetooth remote control, that can operate a modem is all that is
necessary. According to (Gollub and
Javitz,1989), “psychology, socioeconomics, and health are the keys to
understanding how older adults want to live”, and therefore, a product created
that meets this need, should attract the interests of elderly consumers.

 

Group 2:

Asian markets are rapidly growing according to (Samiee et al., 2004). One area for
potential investment is the retail market, a very localised sector, “where the
top four retailers in China had combined sales of just over two billion dollars”,
as claimed by (Fortune, 2002). Competition
is quite low and introducing a new clothing retail chain is promising,
as we look to expand and penetrate the market. In Kate Williams’ article, “A More Western China”, she believes a higher
standard of living and decreased interest in homegrown brands is a gateway for
investors. This creates customer polarisation, where consumers can capitalise on
a greater range of “products, customised to their needs”.

Consumer goods introduced to the Chinese market can exploit
this “saturated home-market” and need for consumer diversification. As seen in
the McKinsey report, they spend approximately 17% of household expenditure on
clothing and apparel. Foreign investment is relatively low, with Walmart and
Carrefour, having only 30 and 40 outlets respectively. Supply chain management
increases awareness of Chinese culture. We gain knowledge of how we market our
goods, to a cohort of consumers concerned with mortgages and family, through
creation of trade agreements and alliances, like Tesco joining forces with Ting
Hsin (Guerrera and Voyle, 2004). Introducing
a product that will keep these expenses in mind and not be too steep on their
already high budget parameters is key.

 

Group 3:

North America has an increasing number of diverse
subcultures, as ethnic minorities compromise nearly 25% of the population (Patterson, 2001). “Firms that reach
ethnic minorities with the right message have a comparative advantage over
their competitors”, (Cui and Choudhury,
2002). Targeted marketing is recommended by (Williams and Qualls, 1989) to reach various ethnic consumer groups,
especially with regards to cultural identities such as cuisine, religion,
traditions and clothing. However, market segmentation for the sake of it, can
become too complex.

The working population dedicate 46% of household expenditure
to maintaining house and utilities. Demanding careers of working long hours, to
feed their children, make big ticket purchases and save for their family’s future
is difficult. Introducing a product that is value for money and durable will
attract this cohort of consumers. Quality yet inexpensive home exercise
equipment will allow for this generation of workers to maintain a healthy
lifestyle and give them a greater sense of independence, a priority for many cultures.

One form of advertising that can appeal to diverse markets,
is a universal advertisement that incorporates broad cultural values on TV
channels, radio and newspapers dedicated to specific ethnic groups.
“Advertising through ethnic-oriented newspapers, radio and cable television costs
only a fraction of that of general media and is an area often neglected by most
marketers”, (Cui and Choudhury, 2002).
Instead of using culture specific advertisements, use a marketing campaign that
isolates each group through utilisation of multi-cultural media that is already
in place.

 

In conclusion, it is clear to see that even in such diverse
markets it is possible to sell a product based on specific marketing
techniques. Be it a baby boomer, generation x or any other target audience,
applying marketing strategies that incorporate specific consumer attitudes and
buying patterns will allow for success.

 

 

 

 

 

 

 

 

 

 

 

Refernces:

Cui, Geng.  and
Choudhury, Pravat (2002)

“Marketplace diversity
and cost?effective marketing strategies”

Journal of Consumer Marketing, Vol. 19 Issue: 1, pp.54-73

 

Fortune (2002)

“China’s 100 largest companies”

Fortune, Vol. 145 No. 2, pp. 72-6

 

Gollub, J. and Javitz, H. (1989)

“Six ways to age”

American Demographics, June, pp. 28-35; 56-7

 

Guerrera, F. and Voyle, S. (2004),

“Tesco in talks with
Ting Hsin Retailing”

Financial Times, March 4, p. 19.

 

Hariprasad, G., Hariprasad,
R., Kumar, L., Srinivasan, A., Kola, S. and Kaushik, A. (2013).

“Apolipoprotein A1 as a potential biomarker in
the ascitic fluid for the differentiation of advanced ovarian cancers” 

Biomarkers, 18(6),
pp.532-541.

Patterson, O. (2001)

“Race by Numbers”

New York Times, May 8, pp 27

 

McKinsey Report

“Exhibit 9”

Saeed Samiee, Leslie S.C. Yip, Sherriff T.K. Luk, (2004)

“International
marketing in Southeast Asia: Retailing trends and opportunities in China”

International Marketing Review, Vol. 21 Issue: 3, pp.247-254

 

Williams, J. and Qualls, W.
(1989).

“Middle-class black consumers and intensity of
ethnic identification”

Psychology and Marketing,
6(4), pp.263-286