Report 2 - Research Paper Example

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Report #2 Table of Contents I. Target Market 3 A. Segmentation Variables 3 1. Income Level 3 2. Age 3 3. Gender 4 4. Geography 5 5. Usage 5 6. Other 6 B. Number of People in Your Target Market 6 II. Competition 7 A. Direct Competition 7 B. Indirect Competition 11 References 12 I…
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Download file to see previous pages 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 inf ...Download file to see next pagesRead More
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