The Existence of a Global Kids Segment - Essay Example

of the Number: Paper: The existence of a ‘Global Kids’ segment Consumer’s average income has been showing an increasing trend in most of the developed countries. This has resulted in increase in purchasing power of the consumer. Expenditure has increased on various goods. Particularly, families can now afford to spend more on child needs. Expenditure that is spent on a child varies with family income and also the age of the children (Bachmann, John & Rao, 1993). With the increasing purchasing power and consumerism in the developed nations, specifically in the United States, it can be seen that a market for children has been developed. Businesses have flourished by manufacturing products which are significantly associated with kids (Benson & Hocevar, 1985). The promotion and advertising sector has seen the initiation of companies like Kid Connection and Kid Inc. companies like Levis and Gap have designed special sections for kids in the apparel sector (McNeaL, 1992). There are popular names in the toy industry like LEGO and Toys “R” US Inc. who have modified business operations and made special concentration to kids’ products (Acuff, 1997). Companies have started concentrating on building g a market for kids’ product and have started spending more in this sector. These companies spend a huge amount in order to carry various marketing mix like packaging, advertising, promotional schemes and so forth (Borgers, Leeuw & Hox, 2000). There are several facts and figures which provide evidence that the market for kids exists and it would become even bigger with the passage of time. Thus, it becomes important to study and identify the nature and character traits of the kids in order to inspect the existence of kids segment which is present globally (Blattberg & Neslin, 1990). The basic behaviour of kids generally does not differ from country to country. The kids always show interest towards exploring new things and they develop their own fascination for certain products based on their unbounded imagination. With the advancement in time, kid has grown an interest towards toys which are supported with exceptional technology (Bridges & Briesch, 2006). According to various surveys collected on kids’ behaviour all over the world, it has been seen that kids mostly prefer spending time by watching television. This is followed time spent by indulging into mobile and computer games and other applications. Some popular toy brands were also identified with the help of the survey. Disney and Lego topped the list as these were the most influential brands according to viewer reviews (Harrigan, 1991). Various video games and other gaming consoles were also heavily demanded by the kids. Television channel ratings were bagged by Cartoon Network and Disney Channel. In the food industry, a major segregation of market was done for the kids. The kids highly preferred fast food which was provided by companies like KFC and McDonalds. These trends were noticed not only in developed countries like the United States but also in developing and emerging nations like China (Borgers, Leeuw & Hox, 2000). Market segmentation for kids can be supported specifically by the activities of a toy brand for kids known as LEGO. This brand is very popular among kids. The brand has successfully penetrated into the kids market and has established its mark on children of all age group (Bachmann, John & Rao, 1993). The brand has strategized efficiently and identified the mechanism of segmentation of global kid market. Lego’s primary mission was to provide children with products that would enable them to develop a creative thought process and build their imagination on logical grounds (Blattberg & Neslin, 1990). This would help the children to become successful in future which is essential for a country’s well being. The company believed in the policies of globalization and thus, catered to a huge market all over the world. LEGO has also ensured that they maintain a diversified product range to meet the requirements of various age groups among children (Lindstrom, 2003). For instance, for the age group from 4 to 7, a segment called LEGO Juniors is formed. Small girls between the age ranges of 5-12 are attracted by the LEGO’s special product line that manufactures Disney Princesses under the division LEGO X (Bridges & Briesch, 2006). The kids are also provided with games that can be operated with the help of the internet. This initiative would help the company to cater to kids who are driven massively by technology (Benson & Hocevar, 1985). Thus, it can be seen that there exists a huge market which is especially devoted to serve to global kids (Lichtenstein, Netemeyer & Burton, 1995). The kids have developed growing needs and they prefer products which are highly advanced (Buckingham, 2007). The kids these days prefer products which are highly innovative in the sense that those products should be interactive and help them with various activities. The supermarkets are now catering to child needs by placing tablets and books which are specially designed for children. For instance, special Kindle e-books and iPad are designed which helps to encourage children in the initial years when the child begins to read and write. The kids are developing a growing interest towards mobile phones and laptops also. Thus, many companies have started taking initiative in developing gizmos that are suited for kids of different age group. Kids are also influenced by the various super hero movies. They prefer toys in the form of their preferred super hero. Companies have thus started manufacturing toys that reflect movies like Transformers, Bat Man, and Spider Man (McDougall & Chantrey, 2004). Thus, the market research on various companies and specifically then product ranges of those companies suggest that the kids segment is a booming business. There is an ample evidence for the existence of a global kids segment. The market segmentation of kids sector differs with the nations. The nature of the market and the behaviour of consumers in those markets help the companies to determine marketing strategies to meet the needs of the kids (Buckingham, 2007). Recommendations The evidence of the existence of a global kids segment implies that the market is highly responsive to the demands of the kids. The business operations of the various companies which specializes in the development of products associated with kids depicts that high competition exists in the market for kids’ products (Lichtenstein, Netemeyer & Burton, 1997). There are enormous factors and conditions which influence the kids market. These are external and internal in nature (Webster, 1965). The factors which affect the market externally are in the form of the various competitors present in this sector, various regulations which are legal in nature and differ with countries and technological advancement. The internal factors consist of the range of products, marketing and promotion mix. The products for the kids should not harm kids and health and maintain the basis safety of the kids. Therefore, the companies should design toys and other products for kids by keeping in mind the safety regulations (Hkahneman & Amos, 1979). The global kids segment can be targeted by carrying various efficient promotional activities. The kids should be given the opportunity to take trials of the products (Chung & Grimes, 2006). The brand image of a particular company which specializes in kids’ products can be enhanced by various promotional activities which ensure that the customers visit the stores again and again to avail products. The promotional activities comprises of various marketing techniques (Langford, 2012). Children should be aware about a brand and its products and this can be done by various offers which may comprise of coupons, discounted prices, free trial, free products, various contests and other activities that enhance brand awareness (Lichtenstein, Netemeyer & Burton, 1990). While promoting a particular product, the brand should keep in mind that promotional activities should be highly compatible with kids’ needs and tailor made for kids. The promotional activities must be customized according to the taste and preferences of the children (Bridges, Briesch & Yim, 2006). The companies should carry on different survey among kids of different age group to identify their characteristic traits. The companies should understand the fact that children are more attracted by attractive advertisements which they can relate to. They do not get attracted by low price schemes as, at their age they do not have much idea of the pricing schemes offered by a product. The companies thus should design its promotional schemes in such a way that the parents of the kids are made aware of the competitive prices as they are the one who eventually make the buying decisions. The kids on the other hand should be targeted by making eye-catching advertisements on the television and these advertisements should specially be featured on channels that are particularly devoted to programs for kids like the cartoon network, Disney channel, discovery channel etc. (Sit & Chan, 2005). This is because kids are generally attracted by things which are visually striking. Children are also motivated by products which offer any gift or prizes in return. For example, a fast food brand like KFC can enhance its sales by offering a superhero toy to every kid who visits its store for a meal. This would ensure that the kid visits the store again which would massively increase KFC’s brand image among kids and also among the parents (Kjeldgaard & Askegaard, 2006). Sales promotion can also be encouraged by giving products which helps kids to enhance their gaming experience (Lindstrom, 2004). This should be specially done in cases in which the products that are sold deals with any educational activity (Todd, 2001). Children would be motivated to use the products which are needed for educational needs if they get something in free that would help them in recreational activities (Guber & Berry, 1993). Other than intensive promotional activities, the global brands should cater to the growing needs of children by expanding portfolio in the global kids segment (Quart, 2003). Kids are often pampered by their parents through luxurious goods in order to make the child happy in the absence of their parents who are generally busy with work (Childers & Rao, 1992). Fashion brands should be developed which would help exclusively to meet child clothing needs. The international brands have already started taking initiative for expanding markets like India. Brands like Chicoo, Zara, Monnalisa and many others have started making their presence in the global market for kids (Cardoso, Araújo & Coquet, 2008). Business operations have been expanded in order to meet the requirements of kids in the luxury market of the emerging countries. The brands which operate only at national level should collaborate with international brands to establish a global presence (Moses, 2000). It is essential to enhance the distribution channel to effectively target the global kids segment (Peachmann, Levine, Loughlin & Leslie, 2005). Thus, it can be concluded that a global kids segment exists which can be supported by the activities of various brands that operate in various sectors (Sutherland & Thompson, 2003). 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