Targeting the Global Youth - a Marketing Report
Targeting the Global Youth
A Report
10th January 2008
Table of Content
1. Introduction 2. Cross-border Segmentation 1 1
3. The Global Youth 2 3.1 Global Youth Culture 3.2 Youth as a global segment • • • Identification Accessibility Profitability 2 4 4 6 7 8
3.3 Problems of researching and defining
4. The Global Youth Market 4.1 Opportunities in terms of product and marketing strategy 4.2 Problems and limitations to market such a large segment
9 9 10
5. Company example: Red Bull GmbH 6. Conclusion
12 14
Reference List Appendices Appendix A Appendix B Appendix C Appendix D
15 19 19 20 21 22
2
1. Introduction
They are called Generation Y or the MTV Generation and share more similarities than differences with each other on a crossing border bases (Pamar 2002; Kotler, Armstrong 2006). In the following it is illustrated what is meant by cross-border segmentation and the term global youth culture. Furthermore, it is examined how the global youth segment can be identified using appropriate segmentation variables, how it can be accessed and why this segment is profitable. Nevertheless, researching problems are discussed. Part 4 of this report is addressed to the opportunities offered by this segment and problems which might be faced by marketers targeting this segment. Finally by presenting how Red Bull succeeded in this market a company example is given.
2. Cross-border market segmentation
Cross-border segmentation is defined as building groups of individual consumers with distinctive patterns of needs, wants, buying intention and culture by ignoring country borders (Kotler, Armstrong 2006; Czinkota, Ronkainen 2004; Hofstede et al 2002; Steenkamp, Hofstede 2002). An emerging trend to a harmonisation of the world market, consumer taste and globalisation led to a growing disparity within those segments
3
and caused great mutuality among customers worldwide (Hofstede et al 2002). Hence, unlike the geographical based
A Report
10th January 2008
Table of Content
1. Introduction 2. Cross-border Segmentation 1 1
3. The Global Youth 2 3.1 Global Youth Culture 3.2 Youth as a global segment • • • Identification Accessibility Profitability 2 4 4 6 7 8
3.3 Problems of researching and defining
4. The Global Youth Market 4.1 Opportunities in terms of product and marketing strategy 4.2 Problems and limitations to market such a large segment
9 9 10
5. Company example: Red Bull GmbH 6. Conclusion
12 14
Reference List Appendices Appendix A Appendix B Appendix C Appendix D
15 19 19 20 21 22
2
1. Introduction
They are called Generation Y or the MTV Generation and share more similarities than differences with each other on a crossing border bases (Pamar 2002; Kotler, Armstrong 2006). In the following it is illustrated what is meant by cross-border segmentation and the term global youth culture. Furthermore, it is examined how the global youth segment can be identified using appropriate segmentation variables, how it can be accessed and why this segment is profitable. Nevertheless, researching problems are discussed. Part 4 of this report is addressed to the opportunities offered by this segment and problems which might be faced by marketers targeting this segment. Finally by presenting how Red Bull succeeded in this market a company example is given.
2. Cross-border market segmentation
Cross-border segmentation is defined as building groups of individual consumers with distinctive patterns of needs, wants, buying intention and culture by ignoring country borders (Kotler, Armstrong 2006; Czinkota, Ronkainen 2004; Hofstede et al 2002; Steenkamp, Hofstede 2002). An emerging trend to a harmonisation of the world market, consumer taste and globalisation led to a growing disparity within those segments
3
and caused great mutuality among customers worldwide (Hofstede et al 2002). Hence, unlike the geographical based