The Demographic Segmentation

Question: Write an essay on The demographic segmentation of the customers. Answer: The demographic segmentation of the customers is based on the some particular properties such as age, sex, income, marital status, occupation and ethnicity of the customers. It has been observed that travel and tourism organizations of Australia and New Zealand, cosmetic manufacturers and precooked food manufacturers are affected by the demographic trends (Schiffman et al. 2013). The travel and tourism organization of Australia and New Zealand have targeted the most of the people aged between 25-60 years (Hosany and Prayag 2013). The precooked food manufacturer organizations have targeted most of the people aged between 25-35 years (Visschers et al. 2013). The cosmetic organizations have targeted most of the people aged between 20-65 years. Additionally, the requirement of the customers depends on the places where they live or stay. The Baby Boomers or generation X customers have spent half life in United States. The people had born between the tears of 1946 to 1964 (Valentine and Po wers 2013). They are the old people but interested about the places in Australia and New Zealand. Generation Y customers are mostly family person. 60% of the generation Y customers have started their married life and conscious about the family expenses (Sandy et al. 2013). The generation Z people have born between the years of 1995 to 2016 (Newton and Meyer 2013). Those people have started their professional career and passionate about their hobbies. However, those people are not frequently taking vacation tours. However, that group use cosmetic products and eat the precooked foods. Objectives: To understand the demand of the different customers and prepare the products or service as well To understand the impact of age and income of the customers on the business of travel and tourism organizations, precooked food organization and cosmetic organization. Understanding the demography: Details of age demography: As stated by Muruganantham and Bhakat (2013), the travel and tourism companies, precooked food manufacturers and cosmetic brands have faced issues by the Baby Boomers. The Baby Boomers have spent half life in United States. The people had born between the tears of 1946 to 1964. They are the old people but interested about the places in Australia and New Zealand (Vanhonacker et al. 2013). The travel and tourism organization has observed that the Baby Boomers have enjoyed the holiday life very luxuriously along with their grand children. However, the travel and tourism organizations of Australia and New Zealand have observed that the some tourists have stayed alone for their profession purpose. Therefore, the travel and tourism organizations have provided the adventure packages for them. Therefore, the travel and tourism organization have focused on those people. As stated by Solomon et al. (2012), the travel and tourism organizations, cosmetic and precooked food organization have observed that the ratio of youth and the older citizen is 3:1. Therefore, companies have targeted those customer groups for their products and service. As stated by Dolnicar et al. (2013), the travel and tourism industry of Australia and New Zealand has identified the requirements of the tourists and provide services accordingly. The travel and tourism industry has observed that the youth and the elderly travelers love to spend their vacations at popular places such as Victoria Delight, Sydney and Surrounds and Gold Coast. On the other hand, other popular places have been categorized depending on the purpose of visits such as family, romance, individual, adventure, shopping, honeymoon and nature (Parment 2013). The organization has observed that all holiday destinations are suitable for the family segment. On the other hand, the newly married individuals and couples prefer Victoria Delight, Sydney and Surrounds, Ground Pacific Drive, Rotorua, Queenstown, Auckland, Glacier Region, MT Cook and Cairns. However, the honeymoon couples prefer Auckland, Sydney, Cairns, Gold Coast, Rotarua, Queensland, Glacier region and Christchurch (Schif fman et al. 2013). Therefore the travel and tourism industry has implemented the strategy to recommend the most suitable place to the visitors as per their age, income and marital status. Precooked food: On the other hand the precooked food manufacturers have observed that the demand of the precooked foods among the alone professionals are high. Therefore, the precooked food manufacturers have targeted those customers. As stated by Hosany and Prayag (2013), the precooked food manufacturers have observed that the 5% generation Y customers have bought the precooked food from the shops or super market. Therefore, the pre cooked food manufacturers have not considered the requirements of the generation Y customers. Cosmetic products: It has been observed that females are familiar with the cosmetic products rather than males. The cosmetic product manufactures have observed that the demand for cosmetic products begins as early as adolescence and it used by elderly and old individuals. On the other hand, the cosmetic companies have observed that demands of the children are negligible. The cosmetic companies have considered the maximum demands of the people of 18 years to 65 years (Visschers et al. 2013). However, the demands of cosmetic products are high among the age group of 22 to 50 years. On the other hand the demands of the women are higher than the men. As stated by Valentine and Powers (2013), the senior citizens are the larger consumers of the cosmetic products rather than the younger generations. According to the demand graph of the people, the demand of the people increase gradually from the age group of 5 to 12 years and after 60 years the demand decreases. On the other hand the old age dependency has dec reased the demand of the old people. As argued by Sandy et al. (2013), it has been observed that the some old age people are very rich and love to spend their vacation in wonderful holiday destinations. On the other hand some rich old people love to use the costly cosmetic products. Therefore, the age dependency has not created any obstacle on their habits or passion. Impact of income level of the people: As stated by Newton and Meyer (2013), the travel and tourism industry has also considered the financial conditions of the tourists because some holiday packages are expensive. Moreover, services may be altered as they depend on the prices of the packages. It has been observed that some retired individuals are rich and they did not compromise the luxury services such as food, accommodation and transport for money. Therefore organizations in the travel and tourism industry have implemented three different packages such as standard, first class and deluxe so that tourists of different economical groups can choose their packages as per their financial abilities (Muruganantham and Bhakat 2013). It has been observed that some cosmetic products are much expensive than the regular cosmetic products. Surprisingly the elderly customers have used it rather than the young customers. Some old customers have greater financial capability to use some of the exclusive brands of cosmetic products. How ever, the percentage is low, but the cosmetic manufacturers consider these customers in a separate segment. It has been observed that the generation Y customers are mostly family person. 60% of the generation Y customers have started their married life and conscious about the family expenses. On the other hand those people have just started their professional life and tried to fulfill their expectation. They have taken the loan and bough cars (Solomon et al. 2012). Therefore, those customers have maintained tight budget to maintain the family needs. Therefore, the cosmetic companies have observed the financial condition of the y generation customers and implemented the low price cosmetics. However, the travel and tourism organizations have observed that some people are too passionate about the holiday trip (Behe et al. 2013). Due to the tight budget, those people may not afford the holiday packages. Therefore, the travel and tourism companies have implemented the standard holiday package for those customers. As stated by Dolnicar et al. (2013), the demographic segmentation is important for three different industries such as travel and tourism, precooked food and cosmetic industries. It has been observed that the data is easily available. Those organizations have critically observed that age, income, gender, ethnic background and family life cycle of the customers. It has been observed that those companies have focused on different age groups. The travel and tourism organizations have focused on the age group of 20 to 65 years (Parment 2013). The travel and tourism organizations have focused on both male and female customers. On the other hand the cosmetic companies have focused on the age group of 15 to 70 years. However, the cosmetic companies have focused on the female customers rather than male customers. It has been observed that maximum people have earned approximately $50,000 per year (Schiffman et al. 2013). Therefore most people have preferred the standard and first class service from the travel and tourism companies. As argued by Hosany and Prayag (2013), the travel and tourism organizations of Australia and New Zealand, precooked food and cosmetic companies have not considered the tweens group as target customers. The tweens are the children and belong between the age group of 9 to 12 (Visschers et al. 2013). However, the travel and tourism companies have implemented the discounts policy for the tweens. It has been observed that the travel and tourism companies have considered one child and another one is absolutely free. Conclusion: Travel and tourism industry, cosmetic industry and pre cooked food industries of Australia and New Zealand have maintained the demographic segmentation for their business purpose. The organizations have segmented the customers on their age, income and marital status. The travel and tourism industry is focused on the people aged between 25-60 years. The precooked food industry is focused on the people aged between 23-35 years. The cosmetic industry is focused on the customers aged between 15 to 65 years. However, the income status of the customers has affected three industries. It has been observed that the people have earned high income between the age group of 30 to 60 years. After retired, the income level has decreased. However, some rich persons have afforded the deluxe service and costly cosmetics. On the other hand the middle income people have afforded the standard and first class services and general cosmetic products after their retired life. 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