Demographic Segmentation

Study of a demographic sh argon and its sub incision f wholeing in the eon convention 18 division to 25 geezerhood Saneel Gaonkar IBS Gurgaon Study of a demographic p dodgeicle and its sub element f bothing in the term collection 18 year to 25 historic period Introduction distinguishable configurations of masses display distinct purchasing patterns even in a segment of sequence base 18 years to 25 years. This truth is well mute by those tidy sum who ar amenable for groceryplace interrogation, convergence development, pricing, sales and st valuategy. commercialize slice is the identification of portions of commercialize that atomic number 18 various from angiotensin-converting enzyme an freshly(prenominal)wise. E real idiosyncratic f on the whole(a)s under unity or other demographic segment of the inn Mr. Philip Kotler has define a trade segment as a concourse of customers who get rid ofice a standardized set of of necessity and wants (P hilip Kotler, 2009). A market segment is a sub-set of a market made up of people or organizations with one or to a greater extent characteristics that practise them to demand similar product and/or services establish on qualities of those products much(prenominal) as scathe or function.The criteria that a true market segment should stand atomic number 18 as follows distinct from other segments, homogenous indoors the segment, it responds similarly to market stimulus and it give the gate be r distrisolelyivelyed through market intervention. lookers savor to define segments by smell at descriptive characteristics geographic, demographic and psychographic. Then they fancy whether these customer segments exhibit different get hold offully or product responses. Few other seekers attain tried to define segments looking at carri bestrideal conside proportionalityn such(prenominal) as consumer responses to benefits, use occasions or pits. lookers than see whether differe nt characteristics argon associated with several(prenominal)ly consumer response segment. (Philip Kotler, 2009). The key here is to light upon customer differences. The major naval division variables be geographic, demographic, psychographic, and behavioral segmentation. Living in metropolitan city handle Mumbai exposes you to a blanket(a) competitive market in all sectors. Segmenting Consumers in Mumbai by utilise these segmenting proficiencys gives a thorough idea of the consumers in Mumbai GeographicGeographic segment calls for division of the market into different geographical units such as nation, states, region, countries, cities or neighborhoods. In India geographic segmentation assumes importance due to variation in consumer preferences and purchase habits crosswise different regions, and across different states. In India rural and urban markets differ on number of different essential parameters standardized literacy levels, in number, spending power. in that resp ect is a vast difference in infrastructure such as electricity, ring network and roads.The want to segment the market geographically becomes cle arr when we look at around of the characteristics of the market. In India in that respect argon 5000 t testifys and everyplace 6, 38,000 villages (Pradeep Kashyap, 2003-04) (Philip Kotler, 2009) Region Mumbai travel in Hesperian region of India. There ar hardly a(prenominal)er signifi squirtces of this region that need attention, Maharashtra the state with Mumbai as its capital derives its coating from Indo Aryan Vedic culture influenced by the Maratha Empire and the British Empire. City of MumbaiAccording to 2011 census, the population of Mumbai was 12,478,447 (The fipple pipe General & number Commissioner, 2011). (censusindia. gov. in) According to extrapolations rail counsel carried forth by the World Gazetteer in 2010, Mumbai has a population of 13,830,884 and the Mumbai Metropolitan Area has a population of 21,347,41 2. The population density is estimated to be rough 20,482persons per squ be kilometer. The sex ratio was 838 (females per 1,000 males) in the island city, 857 in the suburbs, and 848 as a whole in Greater Mumbai, all numbers lower than the national clean of 914 females per 1,000 males. PopulationIndia. com, 2011) The low sex ratio is partly because of the orotund number of male migrants who come to the city to work (Parsis top literacy, sex-ratio charts in city, 2004) As Per 2011 census, Greater Mumbai, the field of operations under the administration of the BMC, has a literacy rate of 94. 7 %, naughtyer(prenominal) than the national mean(a) of 86. 7%. (The Registrar General & Census Commissioner, 2011)Sixteen major languages of India be also intercommunicate in Mumbai, most common organism Marathi, Hindi, Gujarati and English.The religions followed in Mumbai include Hindus (67. 39) , Muslims (18. 56%), Buddhists (5. 22%), Jain (3. 99%), Christians (4. 2%), Sikhs (0. 58%), Parsis and Jews qualification the rest of the population. (Mehta, 2004) Mumbai is also radical to the expectantst population of Parsi Zoroastrians in the world, with nigh 80,000 Parsis in Mumbai. (The worlds boffo diasporas) Looking at the entropy it is clear fact that Mumbai is a large market with intelligent customer. Amount of picture show to brands and products a person goes through in Mumbai is vast. CultureThis inquiry also includes decreeing new potential markets in the age group of 18 to 25 years, for this manipulation chouseing the culture of Mumbai is also essential. The culture of all place is alship dopeal dogged from its people, cuisine, religion, language and festivals. Mumbai has a mixture of people from various communities and subsequently they follow different religions. The metropolitan observes modern trends here people enjoy participating in all festivals irrespective of caste, creed and color. Mumbai is the birthplace of Indian cinema. The influen ce of the Bollywood in the cities culture is observed.The ethnical heritage of Mumbai presents a combination of obsolete and new. The bindaas or c arfree approach of the Mumbaikars comes animated in their dialect of Mumbaiya Hindi too. (Principal Cities) economic system Mumbai is the financial and commercial capital of India. It generates 6. 16% of the total GDP. It is the economic hub of India, contributing 10% to factory employment 25% of industrial output, 33% of income tax collection, 60% of custom duty collection, 20% central come to duty collection ,40% of Indias hostile trade , Rs 4000 crore in corporate taxes. The worlds successful diasporas) In April 2008, Mumbai was ranked seventh in the list of Top Ten Cities for Billionaires by Forbes magazine, (Forbes Magzine) Demographic In demographic segmentation, the market is divided into groups on the basis of variables such as age, family size, family lifecycle, gender, income, occupation, education, religion, race, generati on, nationality, and genial class. Demographic variables ar very popular among marketers as they be often associated with consumer require and wants a nonher is that they ar easy to measure. (Philip Kotler, 2009)Age and Lifecycle Age and Lifecycle are important variables to define segments as the of necessity and wants of the consumer change with age. Johnson & Johnsons baby ve riseable oil which is popular in India is a spotless example of product of infants. (Philip Kotler, 2009) This look into is pore on the market segment which move in the age group of 18 years 25 years. Consumers travel into this age group whitethorn throw off the surrendering into this group may be college qualifying students, working, pursuing higher education, married and working, having their confess product line . Their wants and inescapably differ from each other.College spillage students bequeath wear their open got wants and needs, what a college student would need is educatio n, books, c dowryhes, feed his wants are a cricket bat, mobile, round etc, he may desire to get education in a higher graded college, a car, Touch cloak mobile etc. Working consumers fuck off different needs compared to students. Working consumers may need a mobile, laptop, bike, blazers he mechanically becomes a future customer to accommodate development companies, car companies, furniture companies, air companies, Food chains, financial service companies, spend tours and travel package companies etc.Consumer who I married and working may need jewelry for his wife, furniture for his house and other consumer durable and non durable products, prospective customers for car manufacturers, Insurance companies etc. Consumers having their take business may need, a working space, desks, electricity, acs, he may become prospective customer for insurance companies, luxury car companies, High end products etc. So Consumer pursuing higher education gos surrounded by these four sub-s egments, His needs are all a mixture of all three, he get out be acquiring married so all the needs and wants of a married working is a part of this consumer group.So by this we bay window infer that this wants and needs of this group is a mixture of all the other sub- segments. gash this segment further by grammatical gender we find Men and women are different in their behavior, interrogation shows that women are apparent to pick up the product without cause dapple men often like to read product in figation earlier buying. (Philip Kotler, 2009) Income Income segmentation is a long stand up practice in variety of products and services.Income determines the mogul of consumers to participate in the market switch and hence this is a basic segmentation variable (Philip Kotler, 2009) Slicing the segment on the base of income we may see college going student, Students pursuing higher education are dependent on their familys income , while other sub- segment are earning consumer s who crack their consumption pattern through their own pocket. Psychographic Segmentation Psychographic Segmentation is the process of using psychology and demographics to better understand consumers.In psychographic segmentation, buyers are divided into different group establish on psychological systemal / record traits, lifestyle or determine. People within the same demographic group hind end exhibit very different psychographic profile. (Philip Kotler, 2009) VALS (Values, Attitudes and Lifestyles) (Philip Kotler, 2009)is a chief methodological analysis used for psychographic market segmentation. VALS was developed in 1978 by Arnold Mitchell and his subordinated at SRI International VALS Framework and Segment pioneer These Consumers have the highest incomes, and such high self-importance-esteem and abundant resources that they arouse indulge in each or all self-orientations and are on the leading edge of change, reach is important to them as an expression of taste, inde pendence, and character. Their consumer choices are directed to fightd the finer things in life. ? Thinkers These consumers are the high-resource group of those who are motivated by ideals. Their characteristics are mature, responsible, well-educated professionals. They have high incomes but are practical consumers and reasonable decision makers. Believers These consumers are the low-resource group of those who are motivated by ideals. They are certain and buttoned-down consumers who party favour established brands. They have modest incomes. ?Achievers. These consumers are the high-resource group, motivated by achievement. Work-oriented people who get their satisfaction from their jobs and families fall under this category. They are politically conservative and respect authority and the status quo. They favor established products and services that show off their success to their peers. ?Strivers. These consumers are the low-resource group who are motivated by achievements.They have values very similar to achievers but have fewer economic, social, and psychological resources. Style is super important to them as they strive to emulate people they admire. ?Experiencers These consumers are the high-resource group of those who are motivated by self-expression. They are the youngest and enterprising of all the segments, . They have a weed of energy, which they pour into physical exercise and social activities. They are avid consumers, spending heavy on clothing, fast-foods, music, and other youthful favorites, with particular proposition emphasis on new products and services. Makers These consumers with low-resource group of those who are motivated by self-expression. They are practical people with value self-sufficiency. They are concentrate on the familiar-family, work, and physical recreation-and have little interest in the broader world. As consumers, they appreciate practical and functional products. ?Survivors. These consumers are with lowest income s. They have too few resources to be included in any consumer self-orientation and are thus located infra the rectangle. Oldest of all the segments, with a median age of 61. They tend to be brand-loyal consumers.The age group taken into consideration here is 18 to 25 year. Some of them may fall into Experiencers segment who are young and hardworking and who are motivated by self expression. Some of them are thinkers, i. e. Smart buyers. behavioral Segmentation Behavioral segmentation divides a population based on their behavior, the way the population respond to, use or know of a product. Consumer behavior is a subject studied in perspicacity over time in marketing management. This is master(prenominal)ly because there are several factors which a consumer takes into consideration before taking a decision. and then consumer decision making is affected by his behavior and that is barely how the behavioral segments are targeted. (Philip Kotler, 2009) Forms of Behavioral segment ation buying on occasions Buying on occasions is the first work out of behavioral segmentation. Products such as chocolates and grant foods will sell on festivals. Similarly, confectioneries will sell when there is a party. and then these products are generally targeted by behavioral segmentation. Benefits desire Several products are targeted towards the benefits sought by the customer.Recently, there has been a war between Colgate and sensodyne to target the people who have sensitive teeth. Similarly, there are other toothpastes which are targeted towards whitening of teeth. Hair shampoos are targeted towards split ends, anti dandruff or others. devotion There are two ways to grow a business. First is to originate new customers and second is to retain your real customers. The more than loyal your customer is to you, the more your customer base will increase. Thats one more kind of behavior which marketers target.The strategy for brand loyal customers is very different fro m that used for acquiring new customers. Usage rate In residential or commercial segment, the usage can be demonstrated in the form of heavy usage, moderate usage or lesser usage. Taking the example of dish antenna parlors or personal care. There are some customers who use a lot of personal care products whereas others do non use personal care products much. Thus depending on their usage the customers can be targeted. Among the age group that we are focused on one may find all such behavioral buying patterns.A person can be loyal to one brand for one product , but for other product he may switch brand as he is getting discounts. Research Methodology Data Gathering and depth psychology To have a clear comprehension of the term seek one should know the meaning of scientific methods. The two main terms, search and scientific method, are most related. Research as we have already stated can be termed as an inquiry into the nature of, reason for and the consequences of any particu lar set of the cir germstances, whether these circumstances are experimentally controlled or recorded fairish as they occur.Here the researcher is elicit more than particular results he is evoke in the repeatability of the results and in their extension to more complicated and general situation. Research in common refers to a search for knowledge. Research can also be delineate as a scientific and doctrinal search for pertinent information on a specific topic. It is usually an art of scientific investigation. The purpose of research is to visualise answer to question through the cover of scientific procedures. The main aim of research is find out the truth which is unfathomable and which has not been discovered as yet.Research methodology is a way to consistently solve the research problem. It may be understood as science of analyse how research is done consistently. It has many dimensions and research methods do constitute a part of Research Methodology. The scope of Res earch methodology is wider than that of research method. 1. Why a research study has been undertaken? 2. How the research problem has been specify? 3. In what way and why the theory has been formed? Are usually answered when we lambast of research methodology concerning a research problem or study.Whatever may be the types of research works and studies, one thing i. e. important is that they all meet on the common ground of scientific method employed by them. The research methodology can be defined as a way systematically solves the research problem along with the logic buns them. Researchers not only need to how to develop certain indices, how to calculate mean, mode, median and how to apply particular research technique and what would they mean and indicate and why? in all this means that it is necessary for the researchers to excogitate his methodology for his problem.The scope of Research methodology is wider than that of research methods. Thus research methodology deals it self not only with research method but also in considering the logic behind the methods used in the research study. Research Design The research design is the conceptual structure within which research is conducted. It is a plan of action, a plan of collection and analyzing entropy in economic, efficient and relevant be manner. It contains the blue print for the collection, touchstone & analysis of data. The proposed study is an exploratory cum descriptive.The purpose of preparing research design could be either to test a system or to give a cause effect relationship to the given situation. The design provides answers for questions such as What techniques will be used to gather data? What kind of sampling will use? As in this case research is to be a valued research. We are dealings with 12,478,447 population of Mumbai and slicing it to different segments. The data that has to be salt away should be from an sure source as the research is based on true(p) facts of the regi on. Quantitative researchSystematic empirical investigation of quantitative properties and phenomena and their relationships. Asking a narrow question and collecting numerical data to analyze utilizing statistical methods. The quantitative research designs are experimental, correlation, and survey (or descriptive). Statistics derived from quantitative research can be used to establish the humans of associative or causal relationships between variables. SOURCES OF DATA The data that has to be amass has to be authentic, so it should be collected from authentic source like politics websites, this type of research require authentic quantitative data.Data collection from autochthonic sources is not a option here. So data has to be collected from subaltern sources. Secondary Data Information regarding the project, secondary winding data was also required. These data were collected from various past studies and other sources like magazines, newspapers, and websites which qualified a s reliable. Limitations of the study modified Access to Secondary data need of time Conclusion Mumbai is a large consumer base, the youth population following in the age group of 18 to 25 years itself is diverse in their own ways, each of them have different wants , needs and desires.All of their wants and needs are not always satisfied. Markets are oversaturated with products at declare to achieve their needs some fulfill the needs some partially. Buying decision of the consumer in this age depends upon what he thinks about the product and the brand and the amount of pic he has gone through for that brand. As we are saying the needs of the consumers may be partially filled, so automatically there is a consumer base who wants something that will fulfill their needs in totality, this brings about a market opportunity for the companies which can be targeted by them, i. . slicing into that segment of Mumbai consumers. Many of the consumers are unaware of their needs as well, Exam ple, Including the use of day at once engine room in household activities etc, there are many untapped markets in Mumbai that has to be exploited by the companies, Consumers of this age group are attracted to new technology and feature, they want to stay ahead of their generation, these wants and desires should be tapped upon by the companies. Bibliography Parsis top literacy, sex-ratio charts in city. (2004, september 8). Times OF India . The worlds successful diasporas. (n. d. ). Retrieved from Managementtoday. co. uk. censusindia. gov. in. (n. d. ). rank of districts of Maharashtra by population size 2011. Retrieved from censusindia. gov. in. Forbes Magzine. (n. d. ). Mehta, S. (2004). maximal City Bombay Lost and found. Philip Kotler. (2009). Marketing Manager- A South Asian Perspective. Dorling Kindersley. PopulationIndia. com, . . (2011, June 1). Populationindia. wordpress. com. Pradeep Kashyap. (2003-04). Selling to the backwoods. Business World , 88-91. Principal Cities. judicature of Maharashtra.