Current Target Markets Demographics - Book Report/Review Example

? Marketing 0. Current Target Markets Demographics Laptop computers are primarily targeted to the working population in the US, who are at their young age, i.e. professionals who have recently joined the corporate, and students who are shortly to join the business sector in the country. Correspondingly, the demographic features which need to be considered when assessing the product positioning in the US market includes the age-group, the income level and the lifestyle choices of the targeted consumers. The current demographic scenario in the US can be observed as partially favourable and partially challenging for laptops, from a generalised perspective. For instance, in majority of the nations, the median age-group of the population has been observed to be around 27 years to 38 years as on 2010. This signifies that laptops must have many consumers in the US market (U.S. Census Bureau, 2012). However, income inequality is observed at an increasing rate in the US which creates a strong negative impact on the demand for laptops and other portable PCs (The Huffington Post, 2013). Nevertheless, in the current market context, the employment rate of the US tends to be increasing which in turn is quite likely to be contributing towards greater demand for computer products that can suffice the regular job requirements of the young population [refer to figure 1] (U.S. Bureau of Labor Statistics, 2013). It is worth mentioning in this context that it has been fundamentally after the recessionary phase that the US demographic environment had to witness a sudden and apparent shift in the income distribution, wherein the household income within the nation has been observed as declining significantly [refer to figure 2] (DeNavas-Walt, Proctor & Smith, 2012). Figure 1: Unemployment trend in the US Source: (U.S. Bureau of Labor Statistics, 2013) Figure 2: Real Median Household Income by Race and Hispanic Origin Source: (DeNavas-Walt, Proctor & Smith, 2012) 2.0. Reasons for Laptop’s Declining Popularity in the US 2.1. Sociological, Demographic and Ethnic Factors The US demographic environment has been witnessing significant fluctuations, especially since the post-recessionary period. These changes can be affirmed as the major cause for the declining demand of laptop products in the US. As a matter of fact, sociological factors, demographic factors and ethnic factors create a strong impact on the US laptop market. Notably, the US demographic and social environment currently comprises a major proportion of boomer and mature consumers aged around 35 years to 40 years [refer to figure 3] (Deloitte, 2012). Figure 3: Consumer Preferences for Laptops over Tablets Source: (Deloitte, 2012) As can be observed from the above diagram, with the increasing age, consumers tend to prefer other technology gadgets more than laptops. It might be owing to the factor that with the increasing level of maturity, consumers tend to grow their negotiation as well as consumption power to purchase more advanced technology products than the laptops. Additionally, the income distribution of ethnic communities in the US (as illustrated in figure 2), irrespective of their differences have been declining since recession. This might also be a major cause owing to which the demand for laptops has been falling in the nation (DeNavas-Walt, Proctor & Smith, 2012). 2.2. Economic and Technological Factors The US marketers prefer and are easily attracted to unique styles and features of computers. This further raises a challenge for the laptop marketers to expand the life cycle of the product to a longer duration (Jane, 2013). As described above, the household income in the US has been declining since the occurrence of recession in the year 2008 (DeNavas-Walt, Proctor & Smith, 2012). However, when considering the level of income per capita, it can be observed that in the current phase, the percentage has been increasing which renders greater purchasing power to the citizens to avail advanced computing gadgets [refer to figure 4] (The World Bank, 2013). The introduction and rapid innovation of advanced technology products may also have contributed to the decline in laptop demand as examined in the report published by Deloitte (2012). Figure 4: GNI per capita of the US Source: (The World Bank, 2013) 2.3. Political and Legal Factors The current political environment of the US can be observed as stable to a certain extent. However, when concerning the legal implications of the laptop or the PC industry, it can be observed that various restrictions apply to the product usage. For instance, in the recent instances, many cases have been filed which apparently depict a restriction of using PCs or laptops mainly within the classroom environment (Yamamoto, 2007). Even the shipment of laptops and PCs has to undergo a strict surveillance check which has in turn has played a major role in contributing towards the declining demands of PCs in the US market (Williams, 2013). 2.4. Completive Factors Penetration of new players in the target market and continuous innovation within the PC market has shaped the industry as a fiercely competitive platform. It is in this context that with the introduction of new advantages computing devices, which are more convenient, available at a cheaper price and have wider applicability, tend to attract the consumers who are targeted mainly in the laptop market of the US. In the recent context, with the intention to rejuvenate the demand for PCs, Microsoft had launched Windows 8, more advanced software than that compared to the previous editions. However, owing to the fact that other technology gadgets have already captured the US market, Windows 8 failed to facilitate growth in the PCs market, although it was successful in strengthening the product life cycle (Rogowsky, 2013; Deloitte, 2012). 3.0. Recommendations The current market scenario depicts that generally the prices of laptops are high as compared to the computing devices being introduced in the US market such as Tablets, Smartphones and other similar products. Therefore, managers should attempt to reduce the prices of laptops along with assuring better quality to attract a larger volume of customers. The report published by Deloitte (2012) depicted that the demand for laptops are high among the Trailing Millennials and the Leading Millennials aged between 8 to 25 years approximately. Although this might result in shrinkage of the volume of targeted consumers, the overall demand for the product can be facilitated by focusing on this particular segment of customers. Technological upgradability of laptop can be suggested as another major tool to energise the demand for laptops in the US market. In this regard, marketers can put emphasis on developing dependency of tablet or smartphone users on laptops of PCs, which shall further encourage the consumers to purchase laptops at a higher rate. 4.0. Best Foreign Country to Market Laptop Where in the US, in various educational institutions, the use of laptops are being restricted, Sri Lanka has been taking measures to encourage the purchase and use of computers in the current market scenario. The initiative taken by the educational authorities of the nation for “One Laptop One Child”, can also be observed as a major contributing factor to the rising demand for laptops in the Sri Lankan market. Additionally, a large proportion of customers in Sri Lanka are also observed as inadequately aware of new technologies like tablets, notebooks, i-pads. Rather, they are focused on laptop technology and PCs, which they are more familiar with (Mozelius, Hewagamage & Hansson, n.d.). Also, when considering the demographics of the country, it can be observed that the median age of Sri Lanka is must less than the US at 31 years. The rate of urbanisation also shows good prospects for laptops and other technology products in the country. The Gross Domestic Product (GDP), purchasing power and the employment rate of the country is increasing steadily, which also signifies potential rise in the demand for laptops in Sri Lanka (CIA, n.d.). 5.0. Product Segmentation & Positioning Ideas Product segmentation and positioning strategies for laptop marketing in Sri Lanka, the needs of the customers must be rendered with adequate significance. From the overall analysis it has been observed that Sri Lanka can be one of the best options to market laptops in the current scenario owing to the weak competition from the substitute products alongside the rising demand for laptops among students mainly. Therefore, the education sector must be targeted as the most potential market segment to distribute laptops in Sri Lanka. Additionally, the purchase capacity should also be taken into account when marketing laptops in the selected foreign market. In this regard, the product can be positioned among the middle income group customers in Sri Lanka, as their proportion is huge in the nation and also because this group of customers are observed to be yet not adequately aware of the advanced substitute products to laptops. References CIA. (n.d.). South Asia: Sri Lanka. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ce.html DeNavas-Walt, C., Proctor, B. D. & Smith, J. C. (2012). Income, Poverty, and Health Insurance Coverage in the United States: 2011. Retrieved from http://www.census.gov/prod/2012pubs/p60-243.pdf Deloitte. (2012). Devices, Consumption, and the Digital Landscape 2012. Retrieved from https://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/us_tmt_Executive_Summary_Devices_Study_052112.pdf Jane, M. (n.d.). The advantages of ipads and tablets in a business. Retrieved from http://smallbusiness.chron.com/advantages-ipads-tablets-business-22551.html Mozelius, P., Hewagamage, K. P. & Hansson, H. (n.d.). Towards e-learning for all in Sri Lanka – progress and problems in some selected Sri Lankan 21st century initiatives. Retrieved from http://www.diva-portal.org/smash/get/diva2:450266/FULLTEXT01 Rogowsky, M. (2013). The Death of the PC Has Not Been Exaggerated. Retrieved from http://www.forbes.com/sites/markrogowsky/2013/04/11/the-death-of-the-pc-has-not-been-exaggerated/ The Huffington Post. (2013). The One Chart You Need To Understand America's Mind-Blowing Income Gap (Infographic). Retrieved from http://www.huffingtonpost.com/2013/04/15/income-distribution-visualizing-economics_n_3044892.html The World Bank. (2013). United States. Retrieved from http://data.worldbank.org/country/united-states U.S. Census Bureau. (2012). Section 1: Population. Retrieved from http://www.census.gov/prod/2011pubs/12statab/pop.pdf Williams, M. (2013). PC shipments mark longest decline ever as Lenovo surpasses HP. Retrieved from http://www.infoworld.com/d/computer-hardware/pc-shipments-mark-longest-decline-ever-lenovo-surpasses-hp-222479 Yamamoto, K. (2007). Banning Laptops in the Classroom: Is it Worth the Hassles? Journal of Legal Education, 57(4), pp. 2-46. Read More