Target Market & Demographic environment

8/7/2019 Target Market & Demographic environment

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Target Market

A target market or target audience is the market segment which a particular product is

marketed to. Target markets may segmented by demographic characteristics, psychographic

characteristics, behavioural and geographical characteristics.

Snow-Field is a healthy ice cream company which targets the higher middle class and

rich class of the society. Due to the variety of flavours and the specialty of being sugar free

and fat free makes the Snow-Field more popular among the fitness and health conscious

people.

Snow-Field targets the market where people are ready to buy healthy junk food due to

their taste buds and the fact that Snow-Field are totally fat free and sugar free with the same

original taste.

Hence Snow-Field targets the market where people from age group 1 year to 80 years

can enjoy their favourite ice cream keeping in mind health conscious people, diabetic people

and young people.



Demographic environment

Demography is the study of human populations in terms of age, gender, family size, income,

occupation, education, religion, race and nationality. Demographic environment is amongst

the most popular bases for segmenting customer groups because it involves people, and

people make up markets. Our company wants to provide another option for local people and

export to overseas by providing the opportunity for consumers to buy a wide variety of high

quality, fresh, locally produced and nutritious ice-cream.

Changing Age Structure of the Population

Consumer needs and wants change with age although they may still wish to consume the

same types of product. Our company target on the consumers from age range 12 to 60 years

old who are the baby boomers, Generation X and Millennial. Baby boomers are born between

1946 and 1964. They are mostly consumes the foods that give them healthy. So they might be

consuming more on the low-fat yoghurt ice-cream. For generation X who¶s born between

1965 and 1976, they tend to do a lot of research on the products before they purchase because

for them, family comes first, career second. So our company design, package and promote

products differently to give them understand about our company products well and purchase

on it. Generation X is the people who are now working or as a housewife take care of their

children. They are cautious about their family member they want to give their family as good

as possible by taking care of their eating habits. So, the nutritional information of each ice-

cream is very important to them. Millennial are born between 1977 and 2000. These groups

include several age cohorts: teens and young adults. They are willing to try the new products

and attract to the creative designs. Yet, our products must be healthy and nutritious, creative

in designs and also variety in types.

Geographic Shifts in Population

An increasing population means growing human needs but people's location makes a difference

in their goods-and-services preferences. Malaysia¶s population is about 28.31 million in 2009,

which makes it the 43rd most populated country in the world. Of these, 5.44 million

Malaysians live in East Malaysia and 21.2 million live in Peninsular Malaysia. Such

population affected the market because people in different regions buy differently. For

consumer who are live in the cities, they might consume more on low-fat and high quality ice-



cream, but for them who are staying in the rural areas, they might not afford to purchase the

high price ice-cream due to limited income.

A Better-Educated, More White-Collar and More Professional Population

The Malaysia population is becoming better educated. The total population of literacy rate in

Malaysia is 88.7% in which 92% is male and 85.4% is female. The rising number of educated

people will increase the demand on quality products since their job and income is high. . A rise

in the real disposable income of consumers increases their spending capacity. Intuitively, any

jump in income will lead to an increase in expenditure on food items, including ice-cream.

They tend to purchase the high quality ice-cream and give them more nutritional value such as

low fat ice-cream and yoghurt ice cream. Health, nutrition and dietary concerns are important

to every consumer. Health considerations are encouraging consumers to switch from junk

food to fresh fruits. In recognition of this, our company are becoming increasingly

determined to improve the nutritional value in ice-cream.

Increasing diversity

There are many factors influencing diversity such as economic crisis, socioeconomic

characteristic, education, and cultural differences. Regions with different ethnic and racial

make-up have different needs and wants and buying habits. For the people in urban and rural

areas, they might consume more on their needs such as foods and clothing, but for the people in

cities, they might consume more than that to satisfy their needs and wants.

In Malaysia, Malays make up about half of the total population. The second largest

ethnic group is Chinese who makes up over a quarter of the population and have historically

played an important role in trade and business. Indians made up of largely Tamils, comprise

the third largest ethnic group at 8% of the population.

High socioeconomic status is associated to having higher education. People with

lower income would have less chance to diversify their diet as their intention mainly is eating

for survival. People with higher income that might have incomplete knowledge on healthy

food tend to diversify their diet into more desirable foods that are primarily high in fat,

cholesterol, and sugar while low in fibre. As a result, our company try to diversify our

products that high in nutritional value and low in fat, sugar and cholesterol levels.

Target Market & Demographic environment

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