blueocean assignment - amit kumar singh- 15 june 2012

7/30/2019 Blueocean Assignment - Amit Kumar Singh- 15 June 2012

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By : Amit Kumar Singh (iLEAD School of Business)

Young adults (18-24 years) are becoming the most important consumersegment. Understanding this segment from all possible angles (lifestyle,habits, behavior, purchase process). How to motivate this segment ORWhat are technology brands/companies (like Apple, Google or othermobile/PC brands) doing to penetrate more among this segment?


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Introduction Youth Population in the World

Worlds Population

According to US Census Bureau as on April, 2012 , the worlds total population is 7.02 billion1

Approx . 1.29billion youth live in the world today which means 18% of the total population of the world isyouth2

83% of the total youth population live in developing countries2

Asia alone accounts for the 60% of the youth population, remaining 23% live in the developing regions ofAfrica, Latin America and the Caribbean2

Source :- 1-US Census Bureau, 2-Youth Social Policy and Development Division

4

0.91 0.80.56

0.330.03

7

0.68

0.14 0.12 0.09 0.040.0009

1.08

0

1

2

3

4

5

6

7

8

Asia Africa Europe Latin America North America Oceania Total

Total PopulationTotal Youth


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Why this segment is important for Technology Companies

Source :-1- IVEY Business Journal, 2- Harries interactive report

The powerful combination of youth, technology and rising consumerism across the globe is creatingopportunities and challenges for companies looking for their next billion customers

Nearly 1 billion potential customers are beginning to earn enough discretionary income to afford qualitybrands and quality consumer experiences

Many of the world markets are now seeing widespread penetration of the Internet and social networks insocieties where upwards of 60 percent of the population is under the age of 301

Young people in emerging nations are growing up as their horizons, buying power, and future prospectscontinue to brighten

Technology has spread across the young world in the past decade. Connectivity grew by over 1000 percentacross Latin America. Even lower-income countries like Ghana and Vietnam are approaching 100 percent

mobile phone penetration1

Harris Interactive study revels that todays US youth has incredible purchasing power - spending of $239billion2 annually

Outside of their personal purchasing , this population also has a huge impact on family purchases


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Common Characteristics of the Young World (Buying Behaviour)

Freedom

Young adults want choice, they value the freedom for who they are. They leverage technology to cut throughthe clutter and find the marketing message that fits their needs

Customization

They want to customize everything in the world around them their desktop, their ringtone, their website,

their screen saver, their news source, their entertainment etc.

Increasing Power of Word of Mouth

They turn to their friends to advice them on shopping often through social networks instead of trustingcompany executives or advertisement

Integrity

Young genres ensures the companys value align with their own. Transparency in the form of gaining accessto pertinent information about companies and their offerings, seems natural to them


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Common Characteristics of the Young World (Buying Behaviour) Contd

Speed

Young genres assumes that companies can respond with the same kind of simplicity, speed and directnessthat they respond with when they exchange instant messages with their friends

Innovation

They want to be current and contemporary with whatever they buy. Buying the latest is their way of

indulgence and self - gratification

Entertainment

Having fun with the product is as important as using it. They not only buy a product for its core usage butalso for additional benefits and entertainment

Collaboration

They are great collaborators both with their friends online and at their work place. They develop aninfluence network via internet, specially on social media channels


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Usage of Technology and Social Networking by the Young world

76% of the young adults who uses internet forward product information and links regularly through mobilephone or PC via internet1

42% of young adults of the world watch TV online through a PC1

The core 18-24 year segment of facebook user is growing as fast as 74% year on year3

139 million Europeans access internet using mobile phones each week in which 30% are between the age of15 to 24 years2

A study by Neilsen on US youth says that among 18- to 24-year-olds, more than half of respondents whomake less than $15,000 each year said they own a Smartphone

77% of affluent Americans between the ages of 18 and 24 own smartphones2

60% of young adults which uses internet produce and upload online content, including photos, videos, wikientries, blog posts, micro-blog posts and product/service reviews4

Source :- 1- Harris Interactive report, 3- Pew research centre, Neilsen research, 2-Barkley, 4-Business Insider


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Purpose of young adults behind the internet usages

Source :- http://www.youngerthinking.com/?page_id=162

Young adults are the most connected group followed by slightly older adults and teenagers. Around 86.7percent of young adults 18-24 are the regular Internet users. They use internet for different purposes

90

72 70

26

0

10

20

30

40

50

60

70

80

90

100

School/College E-mail Gaming News reading

No. of users %

Interpretation

Most connected young adults of the world do not use internet to get social only or for information gatheringbut also uses internet for gaming and reading
http://www.youngerthinking.com/?page_id=162http://www.youngerthinking.com/?page_id=162


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Marketing Implication for the Technology Companies

Change the nature of your corporate communication

Changing buying behavior and habits of the young adults indicates that broadcast will no longer be effective.Companies need to actively engage with consumers in a conversation. The conversations in the communitywill determine the true nature of the brand

Customize the message and delivery for the rising young world

The Young World shares many of the same characteristics as their contemporaries in the developed world,and one of the key examples is their ability to deftly scrutinize

Balance the media mix

Television is not the only medium to reach the Young World. So is the Internet Browser. Most of themarketing reach to the Young World will be delivered through handheld devices. It is important that thecampaigns and community building be designed with these devices in mind rather than modifying another

platform

Relate the product with Young Worlds needs

Advertisement campaigns like Har ek friend zaroori hota hai & We are blackberry boys will have agreater commercial success in future . These campaigns have been successful in relating themselves withthe need of the young adults


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Marketing Implication for the Technology Companies

Price your product smartly

Youth across the world are ready to pay for what they get , but given the choices they have in the marketthey may switch to other brands which means that there is a need to price your product reasonable and inthe reach of young adults

Place the product nicely

Change in the preference of the media channel by the young adults and their interest in Internet surfing is aclear indicators of the channel through which a brand can promote their products in the young changingworld

#Flipcart is one of the successful E-commerce companies in India with a gross revenue of over 5billion1

# Amazon is also draws a revenue of $48.3 billion through online retailing2

Be innovative with your product

Product is the real value for the customers. Young adults across the globe are changing their perceptionabout a brand rapidly which is an alarm for the companies to keep innovating their products and add newand latest features into it

Source :- 1-Live mint.-a wall street journal, Daily tech report on amazon


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Case Examples 1 Repositioning Blackberry

Not only a Corporate Phone

Blackberry used to be synonymous with corporate -workhorse devices known for security and reliability .But the iPhone and Android smart phones with large app stores look like the best business models in the fastmoving telecom industry

In South Africa Blackberry is repositioning the brand as a consumer and business brand instead of only acorporate brand. They have a 4% mobile phone market share, but consumer intention to buy a blackberry ishigh

Blackberry is expecting a high growth and a new brand perception in the minds of the young adults


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Case Example 2 Har Ek Friend Zaroori Hota Hai by Airtel

There are many reasons why friendship will become even a bigger theme in India

First, youth constitutes a very large consumer segment in India where 54 % of its population is less than 25years. In the age-group of 18 to 24 years, most of the population are in college and school campuses, theirlife revolves around friendship

Second, with our lives becoming increasingly stressful, the desire for friendships is becoming even stronger,as friends constitute an excellent release from everyday stress and routine

Third, increasing loneliness of modern, urban lives have paved the way for companionship as an antidote forthis malaise, and therefore created the need of a good friend whom they can talk to

Source :-Business Line Brands on Friendship Express


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Case Example 3 Social Shopping

Levis Integrates Facebook Social Plugins into Online

Shops

Levis is one of the first major brands tointegrate Facebooks social plugin into their online shop,turning it into a social shopping experience

Your friends are shopping with you even if they arentpresent in the store with you

These kind of strategies gives an opportunity to theconsumers to take part in marketing and

recommendations, which will increasing up the salesopportunity for the companies and brands


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Conclusion

The young adults today are looking for more innovative products and value for their money in terms ofconnectivity and innovation by the marketers

This segment is socializing themselves through Internet and other technical devices available with them tobe fast and dynamic

They are more inclined towards integrated products and its features

This consumer segment is more adaptable to change but looks at the relation between the product andthemselves

They are quick acceptors or rejecters of the products as they use the product and give a quick feedback on it,

also shares the view with the entire world


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blueocean assignment - amit kumar singh- 15 june 2012

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