The demographic aspect which is considered as a major part of market selection has witnessed various changes, which have massively affected various industries. The age factor of the demography has gone through a complete transformation in the last decade. The importance of different age groups and their needs have been the driving force for many companies to change their traditional ways of working and adopt new strategies to overcome the change which was brought due to the demographic trends in the market.
In the recent times there have been a number of changes in the demography due to the introduction of various trends which had brought changes in many industries. These changes have affected the industries in both positive and negative ways. Some of the changes which have been witnessed in certain industries are-
The tourism industry in the recent past has witnessed some changes because of the demographic trends which will have major implications for tourism, but there are certain potential in these changes which promises great opportunities (Andersson, 2004). The growing demographic trends like increase in population, urbanization, rise in life expectancy, change in the structures of family, and migration have created some challenges for the tourism sector but there are strong hopes of development too. The demographic trends that have brought a change in the tourism sector-
The latest demographic trend which is affecting the holidays in Australia and New Zealand is population ageing. It is a critical change which has been recognized as a main driving force for the future demands of the consumer. The positive effect of this rise in the life expectancy is that due to the changing ratios in the tourism industry there is a rise in the tourists who are above the age of 65, and it is rapidly growing to increase, which displays that the tourism industry will witness impeccable development. The negative effect of this rise in the senior citizen tourist is that the tourism managers will struggle to position their products. They would not be able to set their target market (Costa, 2000).
In Australia, the baby Boomer population is almost 25 percent of the entire population and they have 53 percent of the nation’s wealth. The baby Boomer is the people who are born in 1949. The positive effect of this trend is the baby Boomers have immense wealth which they now want to spend in freely. The tourism industry in Australia makes around $120 billion in a year through the baby Boomer. So the economical factor is improving. The negative effect is the baby boomers are a mixed bag of people so organizing tours and following them is very difficult with them as they are very moody (Zuberi, 2001).
The positive effect of this trend is the generation Y definitely plans a trip twice a year. They need the relaxing break from time to time. They are the ones who have increased the competition level in the tourism sector, who have to plan tours which are economical. The negative effect of generation Y is they are millennial, who have all the information about the current happenings so to influence them is very difficult. Also in return they have the strong attributes, to influence others.
The small family unit and single-adults belongs to the explorative tourism. The main aim of this section of people is to form memories and build family bonds. In Australia, the focus on family values and bonds is very high so it is the easiest section to deal. The negative effect of this trend is that they are very particular with their approach and at times fulfilling those get very difficult as the main focus is on children (Ediev, 2001).
Once only considered as an industry which only caters to young people between the ages of 25 to 40. The cosmetic industry has witnessed massive changes.
The cosmetic industry is affected by the senior citizen as the ratio of people belonging to this category is very high, who use cosmetic products. The senior citizens have affected the cosmetic industry and the trend of launching a numerous variety of anti-aging cream is the biggest example. The companies have made them their main target market with anti-aging creams (Griffiths, Matthews and Hinde, 2000).
The cosmetic industry has focused their anti-aging creams on the senior citizens and the baby boomers too. But a negative impact of such strategies is the cosmetic industry know about the huge wealth which the baby Boomer generation possesses. Their strategies which are built for them are built around exploitation.
This section of people has always been the main target audience of the cosmetic industry. But with the advancement in the technology they have information about various products so it is becoming difficult to convince them to buy a product, which is the main negative impact on the cosmetic industry. The positive effect is all the products which are launched have the main focus on generation Y (Hoem, 2008).
They are the most difficult market segment to convince for any new products. They do not want to adopt changes and are very strong in their beliefs.
Pre-cooked food has become the household favourites and the rise in this industry is due to the acceptance which the society has shown towards them.
They have a very specific lifestyle when it comes to food. They believe in fresh produce and have certain eating habits which have been developed over the years, so convincing them to buy pre-cooked food or frozen food is a very difficult task. They have an approach, which is based on assumptions that this type of food is not healthy (Lappegård, 2000).
The baby boomers are experimental and moody. So, they have a mixed approach towards the pre-cooked food industry. They will attempt to eat such type of food, but the results can be uneven. The positive effect is their approach which is very welcoming and they want to try new stuffs (Margot I. Jackson, 2009).
They are the people who maximally buy pre-cooked food as they are attracted by the different variety of food which is available for them in reasonable prices. Their approach towards packed food is based on monetary values. The negative effect of this trend is they have strong opinions which they display and which have the ability to dismiss the product from the market.
Pre-cooked food and a single-adult household are best friends. They are inseparable and are the biggest buyers of pre-cooked food. They are the easiest target to please and that’s why they are the most profitable trend for pre-cooked food industry (Shackman, Wang and Liu, 2012).
Conclusion
After acquiring a deep understanding about the various demographic trends which are due to the age factor, the market was shaken and are slowly adopting them with new practices. The development which the tourism industry promises will be huge by 2030, according to certain studies. The cosmetic industry has developed new strategies which focus more on senior citizens and on the baby Boomer. The pre-cooked food industry still have to apply new ways to extend their target market. The demographic aspect of selecting a target market demands new plans and strategies, which will help in expecting such trends in a more positive manner.
References
Andersson, G. (2004). Demographic trends in Sweden. Demographic Research, 11, pp.95-110.
Costa, D. (2000). Understanding the Twentieth-Century Decline in Chronic Conditions among Older Men. Demography, 37(1), p.53.
Ediev, D. (2001). Application of the Demographic Potential Concept to Understanding the Russian Population History and Prospects. Demographic Research, 4, pp.289-336.
Griffiths, P., Matthews, Z. and Hinde, A. (2000). Understanding the Sex Ratio in India: A Simulation Approach. Demography, 37(4), pp.477-488.
Hoem, J. (2008). Preface: Childbearing Trends and Policies in Europe. Demographic Research, 19, pp.1-4.
Lappegård, T. (2000). New fertility trends in Norway. Demographic Research, 2.
Margot I. Jackson (2009). Understanding Links Between Adolescent Health and Educational Attainment. Demography, 46(4), pp.671-694.
Shackman, G., Wang, X. and Liu, Y. (2012). Brief Review of World Demographic Trends – Trends in Age Distributions. SSRN Electronic Journal.
Zaba, B. (2004). Age at first sex: understanding recent trends in African demographic surveys. Sexually Transmitted Infections, 80(suppl_2), pp.ii28-ii35.
Zuberi, T. (2001). One Step Back in Understanding Racial Differences in Birth Weight. Demography, 38(4), pp.569-571.
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