Total Population in the Economy of France - Research Paper Example

?Report #2 Table of Contents I. Target Market 3 A. Segmentation Variables 3 Income Level 3 2. Age 3 3. Gender 4 4. Geography 5 5. Usage 5 6. Other6 B. Number of People in Your Target Market 6 II. Competition 7 A. Direct Competition 7 B. Indirect Competition 11 References 12 I. Target Market A. Segmentation Variables 1. Income Level According to the current available data, the average annual income of individuals of the economy of France was calculated to be around US $ 3,400 on a monthly basis (i.e. Annual Gross Income (US $ Million)/Total Population = (2,604,699.2/ 63,197,000)/12 x 1,000,000 = US $ 3434.62). The average income level of individuals in the economy had been recorded to increase substantially but due to the recent recession the growth of the income level has slowed down considerably (Euromonitor International, “Country Factfile”). However, French mousse is evidently a frequently available product in the market of France. Its high availability in turn decreases its cost of purchase with minimum influence of the income level enjoyed by the population of the market. 2. Age The total population in the economy of France comprises a majority of young people, i.e. belonging to the age group of 15 to 64 years covering almost 64.7% of the total population. The people aged between 0 to 14 years comprise around 18.5% of the total population while the age group of over 65 years captures almost 16.8% of the population (CIA, “France”). Due to the fact that French mousse is stated to have a huge amount of calorie, it is most likely that health conscious people will tend to avoid consuming the product at a large proportion. On the similar context, French mousse can be delivered to any of the age group as a beverage. Moreover, there is no age limit for the consumption of the product. Thereby, the market segmentation should be based on the preferences of the customers rather than their age group, as the product can be consumed by consumers belonging to any and every age group. 3. Gender The total population of the economy of France comprises a sex ratio of 0.96 male(s)/female on an average basis (CIA, “France”). However, to be related with the market segmentation of French mousse, the product can be consumed by both males and females irrespective of their gender. In other words, gender does not have a strong influence on the market potential of French mousse and thus can be ignored while determining the target market. 4. Geography The geography of France comprises of five major cities in terms of population and urbanization, namely, Paris, Marseille-Aix-en-Provence, Lyon, Lille, and Nice-Cannes. The urbanization rate in the economy is figured to 85% according to the latest available data (as on 2010), which is also recorded to increase by 1% annually (CIA, “France”). Therefore, the target market of French mousse shall be focused on the urban markets of the economy, as it comprises of the majority of the population. Moreover, as it is quite likely that people residing in urban areas will possess stronger preference for the products, such as French mousse and targeting the urban markets shall be highly beneficial. 5. Usage The current statistics depict that the economy of France has witnessed a downfall in the growth of the consumer spending on food after the recent economic downturn. Conversely, the average consumer expenditure on food figures is around US$ 1,422 monthly (i.e. Consumer Expenditure on Food (US$ Million)/Population = (179,782.5/63,197,000) x 1,000,000 = US$ 2,844.78/12 = US $1,422). With reference to the above findings it can be stated that as the expenditure of the population is decreasing it is quite likely that the preference for costly beverages will also decrease in turn. Therefore, it will be highly beneficial to market the product at a low price targeting the group of people who possess stronger preference for the product. 6. Other Considering the other factors of the French economy, it can be stated that the social aspects have a strong influence on the market segmentation of French mousse. Age, gender, urbanization, income, consumption and expenditure imparity do not have a direct and strong influence on the market potential of French mouse as it is based to the preferences of the consumers. B. Number of People in Your Target Market In order to calculate the number of people in the target market of French Mousse, three factors, i.e. income, geography and usage will be considered. It is due to the reason that these factors have the strongest influence on the market potential of the product in comparison to other variables. Being a beverage food item, the product is likely to be unaffected by the gender of the consumer. However, age can create an influence, as the product contains high amount of calorie. But, in a pragmatic behavior, the consumption of French mousse tends to be more depended on the lifestyle of the consumer, their income and expenditure. Therefore, only the variables related to the geography (urbanization), income (on a monthly basis) and the expenditure on food has been considered in the study. In this case, almost 85% of the total population resides in the urban areas of the economy. The average income of the total population is around US $3,400 monthly and the usage amounts of US $1,400 monthly. Therefore, the chain-ratio will be, (0.85 x 3400 x 1400 = 4.046 million). Thus, 85% of the urbanized population has a monthly income of 4.046 million, which is spent on the consumption of food, which has been considered as the target market. II. Competition A. Direct Competition The direct competition of French mousse in the market of France can be evaluated with respect to three important variables that are effective in measuring the competitiveness of any product: price, quality and flexibility or service. The competitiveness definition of French mousse with reference to these factors is as follows: 1. Price For experiencing a delicious taste of the French mousse, it would cost $2.16 per piece. The price of the chocolate mousse is competitive in the market as its substitute products such as that of baked cheese cake, black forest cake mix, and the like costs more in terms of Dollar. The following table will present the competitor brands of chocolate mousse along with their costs. This table will represent the competitive position of mousse in the French market with respect to its competitor brands in France: Competitor Brands in France Cost in $ Dr. Oetker Baked cheese cake 3.97 Dr. Oetker Black forest cake mix 6.42 Chocofix glace 1.89 Dr. Oetker Classic Creme Brulee 2.20 Dr. Oetker Dark Chocolate Truffle 2.20 Dr. Oetker Flan creme caramel 2.16 Source: (Online Food Grocery, “Mousse Supreme Mix (French Vanilla Mousse) - 2.7oz”). Thus, from the above comparison, it can be mentioned that the price of chocolate mousse is in a competitive position in the French market as the price stands within an average range of its competitor brands. 2. Quality Considering the quality of chocolate mousse, it is considerably more preferable in the French market. This is because of its rich taste with simplicity in preparation. It is preferred the most in France as a delicate, pure and wonderful dessert prepared with traditional French ingredients. Mousse is such a dessert which is found in every region in France irrespective of the market location. It is thus found in both gourmet restaurants and also in corner cafes. Considering the wide availability of the product in the French market and acceptance among the French people, it can be mentioned that chocolate mousse holds a strong competitive position as regards to its perceived quality by the people. 3. Service or Flexibility In terms of flexibility that is perceived by the people regarding availability of chocolate mousse in France, it can be considered that its producers are efficient in making the product available in all the desired stores in France. Customers are never disappointed in finding the mousse available at any location. This aspect of the product regarding its wide availability at every corner of the country represents that its competitive position is strong in the market. B. Indirect Competition Indirect competition of any product is justified from the availability of suppliers of similar products in the market. Considering this fact, the indirect competition of chocolate mousse in the French market is considerably high. This is because huge number of suppliers and manufacturers of chocolate mousse prevails in France. But there is extreme prevalence of fake chocolate mousse in the French market. Thus, it becomes a challenge for the genuine marketers to sell the product because the customers who have once tasted the fake product will no longer be willing to repurchase it. This leads to decrease in number of customers. The challenge of regaining the customers’ belief ignites the prevailing competition among the suppliers of chocolate mousse. References CIA. “France”. April 12, 2011. Library, 2011. Euromonitor International. “Country Factfile”. April 12, 2011. France, 2011. Online Food Grocery. “Mousse Supreme Mix (French Vanilla Mousse) - 2.7oz”. April 12, 2011. Online Food, 2011 Read More