Market Segments Are The Ultra Affluent Adults And The Henry 's High Earners

Given the number of products available, the bargaining power of customers in this industry is very high. The two main drivers for customer’s preferences are quality and price, there is no service involved.

Demographic Segmentation- Nordstrom has maintained its image as a luxury retailer and its primary target customers has always been upper middle and upper class demographic, specifically women. The company targets women, who hail from a certain social class, possess a higher education, and a higher income. Recently, after the economic debacle and the consumers becoming conscious about their spending habits, Nordstrom is proactively looking to appeal to the budget-conscious customers by opening fewer full-price Nordstrom stores and focusing on its Nordstrom rack stores that offers regular brands at a considerable discount rate.

The homogeneous, well-educated, and relatively affluent target segment is easy to market to since the core message of trust can be used across the board as the customers have a common life experience and background.

The potential consumer target markets fall into two categories; the segments will be referred to as “Suburban Select” and “Young & Active”.

The Gap Inc. is a global specialty retailer that operates stores selling casual apparel and accessories for men, women, and children (Yahoo Market Guide, 2001). Under the Gap, are the Old Navy and Banana Republic brands (Yahoo Market Guide, 2001).

Specialized products, being marketed to a specific sector, also have a unique opportunity to market directly to a target audience. Being aware of the differences in marketing to mass audiences and the targeting of specific groups, is a valuable arrow in the quiver of a marketer. Comparing the differences in the older generations gives the marketer an insight into how to mass market, while targeting the groups as a whole. There is also an interesting opportunity for the marketer to target a very specific group for specialized products. While the job of the marketer remains the same, the methodology must be different to reach the intended audiences.

Burberry target audience is designed for both sexes however it is dominated by the female target audience who have a high disposable income. The brand has their own childrenswear range which can appeal to parents but are likely to be people from wealthy backgrounds. Burberry is famous for appealing to celebrities who purchase coats and dresses which have a high end appeal. Burberry focuses more on customer value in order to attract and retain costumers. With the aim to achieve this by producing a marketing concept by meeting and exceeding costumer needs then their rivals.

Affluent consumers that come from upper middle-class backgrounds are popular with marketers since their stature motivates them to spend more money on new products and services. In addition to this, upper middle-class consumers often make higher salaries, have more money to spend and they prefer to shop in stores that offers them expensive functional designer name brand products. Marketers often base the type of advertising aired on consumers current feelings about automobiles being sold, the amount their purchases and the way store employees treated them while they were shopping. Upper middle-class consumers influence the copies of advertisements written since marketers include their testimonials in their promotions. Advertisement copies also

I must say that I do not think that the ad or the style of the ad targeted the baby boomer population adequately. First the message "slice of life" is a little alarming because most people at that age are very sensitive when it comes remarks or messages that say anything about their life especially when it seems to take from life most people want their whole life. You do not want to confuse them in any way. Baby boomers do trust print more than online advertising or anything they see on T.V. "76% of adults age 55 or older are newspaper readers. The Rest and relax, your time has come!" is also a bad message because they did not show enough credentials and options to say such a thing, you have to earn the buyers trust first and should avoid statements

With a focus on delivering the best value offers to it target of females aged 25 to 35 years of age and ultimately drive consumers directly into the experience the firsthand.

One such demographic is the elderly. Market researchers have learned repeatedly that older consumers are not a homogeneous group (Schiffman & Wisenblit, 2014). Part of the issue that the term elderly is a catch all for adults that are 65 or older (Schiffman & Wisenblit, 2014). With people living longer, the elderly segment tries to covers a range of more than twenty years of age. One

"To provide and offer value to the customers by guaranteeing high-tech products that are user-friendly and offer maximum satisfaction that no other brand can ensure." The proposed business will concentrate on delivering best quality products to the customers to the extent of achieving delighting to its clients. This will be realized through extensive networks of consumer markets, competent and experienced marketing agents and the resourceful entrepreneur skills from the business owner.

According to the author Pamela N. Danziger, of “What Do HENRYs Want.” HENRYs are the High Earners Not Rich Yet mass affluent customers who have household incomes between $100k to $249.9k which controls nearly 40% of all consumer spending, that seeks for expression of luxury to reflect their core values.

The Markstrat world has a population of 250 million people. Through Year 4, the Sonite market consisted of 1.67 million people with an expected growth rate of 53% over the next five years. In order to meet the needs of consumers in the larger growing segments, Company U has developed two products in the Sonite market: SUSI and SULI. SUSI is the lower quality offering, marketed towards Singles and Others who are the most price-sensitive. Others and Singles are projected to have the highest growth rates over the next five years, at 98% and 86% respectively. This is Company U’s target market for SUSI and sales are forecasted to almost double in each segment through Year 10 (Table 1 and Chart 1). SULI is the high quality electronic offering, distributed primarily to Professionals and High Earners who are driven by performance and convenience. Market Share for both Professionals and another market segment, Buffs, are expected to decline through Year 10. The Vodite market currently consists of approximately 200,000 people with an expected growth of 200% through Year 10. The Followers segment of the Vodite market is projected to have the largest growth over the next five years at over 3300%. Company U introduced a Vodite, VUGO, in Year 5 to initially target the Early Adopters segment in turn creating a strong foundation to penetrate the Followers segment through Year 10 with predicted long term sales growth of 17%.

The overall sales of luxury goods in the year 2009 is expected to be more than US$150 billion and Asia contributes 10% to it. The concept of luxury is now not confined to only to Europe and US, the Asian subcontinent contributes majorly to it, with India and China as the newly emerging markets. Professor James Twitchell (2002) comments on the democratization of luxury and the changing consumer psychology These new customers for luxury are younger than clients of the old luxe used to be, they are far more numerous, they make their money far sooner, and they are far more flexible in financing and fickle in choice. They do not