Marketing Report Essay Example | Topics and Well Written Essays - 1500 words

Marketing Report - Essay Example This myth or common assumption in the field of marketing has largely contributed to low focus on the market segment of the over 50s in terms of personalized products, services, and marketing campaigns. By overlooking this particular market segment, it means that most companies are unable to diversify, increase their market share, and overall revenues because they are not tapping the opportunity presented by this market segment. This present paper is a briefing paper prepared from the standpoint of the Marketing Director of Nestle breakfast cereal division for the United Kingdom. This briefing paper will outline the key elements of a marketing strategy that is designed to target the market segment of the over 50s. The outline will entail the market opportunities, product strategy, and the next steps that should be undertaken before drawing up a formal marketing plan. Market opportunities To begin with, the report presented by Shaw (2008) on behalf RIAS insurance company, noted that st atistics from the Office for National Statistics reveal that the population for the over 50s is bound to increase in the coming in years and in particular they are bound to reach 27.2 million by the year 2031. According to the writings by Morgan and Levy (2002), this statistics reflect a market segment that will record increased demand over time and therefore, companies focusing on this particular segment will be able to record a continued growth in terms of revenue from the sales arising from this expanding market segment. Therefore, based on the estimated population growth for the over 50s, the Nestle breakfast cereal division for the UK will record continued increase in demand and subsequent revenue arising from the breakfast cereal that is specially prepared for the over 50s population. Another factor that demonstrates the true potential of the market segment for the over 50s is the fact that both Shaw’s (2008) report and the report by Kellogg’s indicated that the over 50’s are wealthier and have high disposable income or high spending power as compared to the other generations. Under the RIAS’ report, Shaw (2008) noted that the over 50s have substantial financial assets. In particular, their personal wealth has risen by 45.6% over the past 5 years to surpass the ?5 trillion mark, secondly, they account for 75% of UK’s total wealth and on average the persons above the age of 65 years has a life savings of ?11,660.85. The report by Kellogg’s noted that persons above the age of 65 years are wealthier and they make up 20% of cereal consumers. The findings from these two reports further validate the true potential of the over 50s market segment since it was noted that they have a high spending power which means that demand for Nestle’s breakfast cereals, which are specifically prepared for this market segment will experience high demand. According to Morgan and Levy (2002), a viable market segment that can gener ate high revenues for a business is usually made up of consumers with high spending power and therefore, by strategically focusing on creating breakfast cereals for the over 50s market segment, Nestle is bound to record increased revenue. In terms of food