LLP International Consultancy
Exploration of the potential launching of new ice cream dessert in Indian market, targeting the children’s consumer
Research conducted on behalf of Dessert DIVA, worldwide ice cream Dessert Company
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* Children’s market is difficult to define globally, as there are different definitions of child (Appendix 1.1). There are different stages of development and learning the child goes through, which have common characteristics. (Rather A. R., 2010) (Appendix 1.2) I will focus on age group 0-14 years old.
* McNeal, J. (1999) explains, that marketers are trying to develop and built brand awareness, preference and recognition from early age. 2-5 years olds demonstrate brand knowledge. (AEF, 2012) Brand preference exists before the purchase behavior does.
Deep analysis was conducted to identify the key macro factors, which have influence on children’s market worldwide. The most important issues were identified and discussed in more detail and the full PESTLE analysis is included in appendix 2.1.
* The number of children is forecasted to decline worldwide due to falling family sizes (Euromonitor, 2011) (Appendix 2.2). Birth rate is very low in developed countries and is decreasing in developing countries (Haub, C., 2011). Asia Pacific, Africa and Middle East have the population with the highest percentage of children under 14 years (79,5% of the of the world’s children) but also relatively small spending per child. (Euromonitor International, 2010) The children are maturing much faster and the young population is on the decline in developed countries (Appendix 2.3) For examples children older than 11 do not think about themselves as children. This phenomenon is called KGOY (‘kids getting older younger’) and it has huge influence on the children’s products. Age compression is due to influence of media how children should behave and look. (Euromonitor, 2011) * The global variations in child population calls for implementing specifically tailored approaches to identify market potential of specific countries (Euromonitor, 2010)
On the global scale, disposable income and spending per child (appendix 2.5) varies between the countries. Developing countries with the highest population under 14 years old have the lowest percentage of spending per child. (Euromonitor, 2011) McNeal J. U. (1999, p. 18) explains, that influence of the children on their parents spending is increasing over the years, appendix 2.7, so called pester power, based on over-exposure to advertising.
“Children’s products market for three year-olds is worth about one fifth of the market for products sold to twelve year olds” (Euromonitor, 2006). Children’s market is very lucrative. US companies are estimated to spend 17bn a year on advertising targeting children.
Legislation in recent years is set to protect the children. UN recognized that marketers must consider ‘children’s greater susceptibility to manipulation.’ (Shrubsole G, 2012)
Many European countries have restrictions on ads that might harm children ‘mentally, physically or morally’ take advantage of children’s loyalty (PPU, 2012) Restrictions in some countries are imposed on advertising of products high in fat, salt and sugar during children’s airtime. (Ofcom, 2010)
Number of Internet users is increasing globally (appendix 2.7). Appendix 2.8 shows Internet...