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
Reference List Appendices Appendix A Appendix B Appendix C Appendix D
15 19 19 20 21 22
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 “country-as-segments” approach, this model caters for a changing environment and the trend globalised markets (Hofstede et al 2002, Walters 1997). The characteristics of this standardised approach are benefits as economy of scale or the consistency of positioning (Czikota, Ronkainen 2004). However, targeting different countries within one segment can be difficult to accomplish and catchier, than the “countries-as-segments” approach, for multinational organisations (Walters 1997).
3. The Global Youth
3.1 Global Youth Culture
This generation is at the state of life, finding their own identity, sampling themselves and what surrounds them bothers them most (Stock & Tupot 2006). They share “maturation-process/change, uncertainty, and hormones” (Moses 2002). Especially in “first-world western cultures”, teenagers try to explore their individuality and self-consciousness by showing individual symbolic or activities (Willis 1990 p.7) and style, is one of the most influencing objectives displaying the youth culture (Kjeldgaard & Askegaard 2006). A product branding reaching this culture successfully should therefore impart trust and needs to present a message or a “bigger picture” to rely on, as well as to communicate style and spirit (Lindstrom 2004 p. 177). 4
The technical knowledge and their consumption of media enables the global youth to communicate on an international basis. By using global media such as the internet, television or mobile phones the popular western culture, brands and style is spread around the world, and, therefore, is mainly impacting the global youth culture (Kjeldgaard & Askegaard 2006; Parmar 2002). Sharing common experience, like watching the same music videos on MTV, using the internet to communicate and practicing the same sports, as well as watching international sport games on television, a common “unified culture” is becoming (see Appendix A, Moses 2002 p.7, Parmar 2002). Fashion, film, technology and video games are mainly included in this...