falling in the age group 18 year to 25 years Saneel Gaonkar
Study of a demographic segment and its sub segment falling in the age group 18 year to 25 years
Different kinds of people display different buying patterns even in a segment of age group 18 years to 25 years. This truth is well understood by those people who are responsible for market research, product development, pricing, sales and strategy. Market segmentation is the identification of portions of market that are different from one another. Every individual falls under one or other demographic segment of the society ‘Mr. Philip Kotler has defined a market segment as a group of customers who share a similar set of needs and wants (Philip Kotler, 2009).’ A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. The criteria that a true market segment should meet are as follows: distinct from other segments, homogenous within the segment, it responds similarly to market stimulus and it can be reached through market intervention. Researchers try to define segments by looking at descriptive characteristics: geographic, demographic and psychographic. Then they examine whether these customer segments exhibit different needs or product responses. Few other researchers have tried to define segments looking at behavioral consideration such as consumer responses to benefits, use occasions or brands. Researchers than see whether different characteristics are associated with each consumer response segment. (Philip Kotler, 2009). The key here is to identify customer differences.
The major segmentation variables are Geographic, demographic, psychographic, and behavioral segmentation. Living in metropolitan city like Mumbai exposes you to a wide competitive market in all sectors. Segmenting Consumers in Mumbai by using these segmenting techniques gives a thorough idea of the consumers in Mumbai
Geographic segment calls for division of the market into different geographical units such as nation, states, region, countries, cities or neighborhoods. In India geographic segmentation assumes importance due to variation in consumer preferences and purchase habits across different regions, and across different states. In India rural and urban markets differ on number of different essential parameters like literacy levels, income, spending power. There is a vast difference in infrastructure such as electricity, telephone network and roads. The need to segment the market geographically becomes clearer when we look at some of the characteristics of the market. In India there are 5000 towns and over 6, 38,000 villages (Pradeep Kashyap, 2003-04) (Philip Kotler, 2009)
Mumbai falls in Western region of India. There are few significances of this region that needs attention, Maharashtra the state with Mumbai as its capital derives its culture from Indo – Aryan Vedic culture influenced by the Maratha Empire and the British Empire.
City of Mumbai
According to 2011 census, the population of Mumbai was 12,478,447 (The Registrar General & Census Commissioner, 2011). (censusindia.gov.in) According to extrapolations carried out by the World Gazetteer in 2010, Mumbai has a population of 13,830,884 and the Mumbai Metropolitan Area has a population of 21,347,412. The population density is estimated to be about 20,482persons per square kilometer. The sex ratio was 838 (females per 1,000 males) in the island city, 857 in the suburbs, and 848 as a whole in Greater Mumbai, all numbers lower than the national average of 914 females per 1,000 males. (PopulationIndia.com, 2011) The low sex ratio is partly because of...