The United States are the third country in the world by the population rate. According to the Bureau of the Census of the US the population is estimated to “get bigger, older, and more diverse.” So, the country expects certain demographic changes concerned with nation’s aging, quantity and interracial nature. The data of the report highlight future transformation tendencies as compared to the previous years (1950-2020).
Due to decreasing rates of mortality, fertility level remaining at or near the replacement level and affluent flow of immigrants the US population is enlarging. The country continues to acquire traits of racial and ethnic diversity with the prevailing groups represented by Hispanics and Asians. Apart from the overall population number not the least of the demographic factors is age and sex composition. Thus, the nation is increasingly getting older what is influenced by the segment of people of about 65 and over those who are generally known as Baby Boomers. It inevitably presupposes the changes in policy of Social Security.
All the enumerated trends have profound impact on the country’s market in general and the companies’ strategies in particular. Changing demographic picture will be reflected in consumer demand scenario. Proper understanding of the correlations of the mentioned factors is supposed to assist marketing managers in developing smart policies aimed at customizing their strategic principles with regard to the preferences of current population.
In addition it is important to consider regional demographic peculiarities in directing research and development field to put in conformity offer and demand. The sphere of advertising and commerce is also involved since it is the tool to grasp attention of the targeted audience and boost distribution of these or those goods.
Human Resources management is forced to take into account the shifts in labor composition as for instance the rising number of nonworking population caused by Baby Boomers reaching the age of retirement. Statistics show that since 1950s the tendency of population growth was marked by women outnumbering men. Up to the point according to the data of 2009-2010 market survey there is an evident process of introduction of moms segment into the whole market structure. The report traced the changes referring to the share of mom household businesses, demographic shifts such as the current state of already and future moms.
The interest of such a market research was actually drawn by the desire to investigate and analyze the social group of moms with children of different age in order to deeper understand their lifestyle and needs to succeed in making offers to their demands. Indeed, it’s significant to know what modern technologies and devices are in the scope of moms’ choice and what is the aim of their usage. One more aspect that is in the focus of market is the role of brands and their application among moms compared to the females on the whole and moms belonging to diverse ethnic groups.
In view of demographic trends we can point out a direct link between food industry and ethnic diversity. Because the US witnesses the tendency of prevailing Latinos, Blacks and Asians the food manufacturers and adjacent fields such as restaurant businesses would to a large extent concentrate their offer on ethnic foods. Thus, ethnic food market is obvious to gain priority as is estimated by the research firm Mintel saying that the sales share in 2009 was on its top to be striking $2.2 billion (Malinda Geisler, AgMRC, 2010). Such outburst in sales has demonstrated the interrelation and interdependence of enlarging ethnic strata and the food market preferences.
Speaking about demographic factors and the allied processes it’s relevant to note not only Baby Boomers effect on social and economic field, but also far more weighty aspect – a new Generation Y. This segment comprises the categories of population which are most challenging for marketers – students, teenagers and mothers who were born in the period of 1980s and 1990s. Suffice it to say that they even outnumber (77 million) the impressively huge figures of Boomers population.
Generation Y is distinguished by qualitatively new world perception since their life proceeds in the impetuous breakthrough reality of technologies, novelties, modern conveniences and even to say virtual reality of internet space. It considerably determines the contemporary market policies.
Thereby nowadays companies are stipulated by Gen Y and that is the reason why their market strategies must target this key category and captivate it through internet. So, the choice of global networking is apt. It’s a clever move to advertise online alluring Gen Y bloggers and make them swallow the bait.
One of the bright examples of companies who focused on Gen Y is TOMS Shoes. The founders of the company have analyzed this social group and built a well-knit strategy. Gen Y is very concerned about everything what is in the world – politics, eco-issues, culture etc. They have very flexible mind and won’t stand apart, but rather readily support the idea which favors their views. They are absorbed by socializing, shopping and at the same time high-minded to show fine gestures. TOMS Shoes introduced the idea to donate additional pair of shoes to children in need for every pair purchased, thus emphasizing the company is not indifferent. This skillful and smart policy was meant for young enthusiasts to make them feel involved in worldwide charity activity. So, the company has based its market strategy on three key principles: philanthropy, personal involvement and individuality.
TOMS Shoes were quite pragmatic and managed to combine philanthropy with profit-making business. Prior to this was a survey that indicated the Gen Y high social awareness and consciousness. Volunteer activity enhanced impressively in three years (25% from 2002 to 2005). The consumers realized that buying a pair of shoes is not only an act of shopping and satisfaction of their own needs rather it’s their own contribution into the good cause.
The internet became the integration and unanimity field where all participants tightly cooperated through numerous sites, fan pages (Facebook, twitter, YouTube).
The students in Universities and colleges take part in campaigns of various kinds which help to highlight their personality and individual creativeness. For instance they create bright and unique designs by applying paint and inscriptions onto white shoe samples. Thus, everyone has opportunity to demonstrate their preferences, tastes and likes what directly provides the company with the basis for success since the youngsters designed themselves what exactly they want to see and wear. Quite a tricky and resourceful scheme, isn’t it?
Consequently, we may arrive at conclusion that the marketing always targets its consumers. The latter in their turn represent the demographic picture which is prone to changes since a human is an integral part of society and is the reason of such alternations. So, market can’t but keep up with the time and be in accord with demographic situation.
