Our Marketing Agency, Outsmart, has been approached by Coles to develop an Integrated Communications Campaign to launch their new product range called “Coles Premium Jewellery.” Our first step is to identify and analyse the selected Target Audience for this campaign. TARGET AUDIENCE
Following extensive research, we decided to select a broad target audience based on the criteria’s of location, age and income. Our target audience is women aged 35 to 50 years old with mid-level joint household incomes ($80,000 to $200,000) located within major cities in Victoria and New South Wales. In order to effectively tailor our communication we have further segregated this audience into working woman and housewives with children. A summary of our finding to justify this selection is as follows: Location
We looked at disposable income and population when deciding on the location of the Target Audience for this campaign. We initially shortlisted our locations to WA, NSW & VIC as these states had the highest disposable income. We then removed WA and decided to focus on VIC & NSW. The reason for this is although statistics indicate the families in Western Australia have the highest average disposable household income (Australian Bureau of Statistics, 2011, p. 34), New South Wales and Victoria have an overwhelming population advantage that fit within our target audience over Western Australia (Australian Bureau of Statistics, 2012, p. 1). Due to our limited budget we believe NSW & VIC give us the greatest penetration within our audience base and the highest return on investment of our communication dollars. Age
According to a report from IBISWorld, the age group from 26 to 49 represented half the revenues within the jewellery market between the financial year of 2011 to 2012 (IBISWorld, 2012, p. 14). In general, younger consumers, especially women, would have higher demand of fashion accessories such as jewellery. However, as our brand is aiming at the Premium side of the market, we feel targeting a slightly older audience that does not have restricted purchasing power due to income levels, will be the way to go. As a result of this analysis, we have selected our target age bracket as 35-50 year olds. To further reiterate this, the Australian Bureau of Statistics (ABS) (2011, p. 32) has supporting statistics that highlight the highest income earners are aged 35 to 50. Income
In 2005, families with an annual household income close to $70,000 were considered financially comfortable relative to lower income families in Australia (Hamilton, Downie & Lu, 2008). Given the average 3% inflation rate every year (Reserve Bank of Australia, 2012), the cost of living comfortably has increased in 2012 hence our decision to target families with joint incomes of $80,000 plus which we consider to be mid-income earners. We decided to cap our target audience’s income at 200K as we believe consumer’s earning more than this would not be interested in purchasing anything ‘Coles’ branded even if it was marked premium in addition to the fact they may have other people doing their grocery shopping. Furthermore, information from ABS shows the number of households earning over 200K dramatically decreases and makes up quite a small proportion of the market. (Australian Bureau of Statistics, 2011, p. 18). Our analysis of these statistics resulted in us setting the income bracket we are targeting to be between $80,000 and $200,000 joint household income.
BUYING SITUATIONS/DECISION MAKING PROCESS
In order to further understand our target audience, we looked into specific buying behaviours of our selected audience when it came to jewellery purchases. According to a study by Jokinen (2011), 56% of the purchases are for personal use. We concluded here that most people buy jewellery for themselves in order to improve either their own image or they purchase jewellery for others in order to help improve the...