Market Segmentation for the Coffee Market Research Paper

Market Segmentation for the Coffee Market - Research Paper Example The following diagram shows the income distribution (media per capita income in 2009) of Baton Rouge, Louisiana area. (Source: â€Å"Baton Rouge..†) As per the media per capita income distribution in Baton Rouge in 2009, the Whites have high inflow of income as compared to other groups. The chart indicates that the Hispanic is ranked just below Whites in case of media per capita income distribution. The 2010 census reflects that the Baton Rouge’s population comprises of 50.02% African American, 45.7% Whites, 2.62% Asian, 0.18% Native American, and 0.49% other races (Louisiana’s report†¦). The historical trend figures point that the percentage of Whites in the city’s population gradually increases over the last two decades. The White’s population growth together with improvements in living standards offers potential advantages for the coffee market. This type of market segmentation assists the coffee industry to easily identify the purchase powe r of consumers and to design cost-effective promotional tactics for different market segments. A number of surveys have indicated that as compared to blacks, whites like coffee more. Hence, the Whites may turn out to be the potential market segment for the company. However, majority of the African Americans and Asians are also regular users of coffee. Targeting strategy While developing a targeting strategy for the coffee market, it is necessary to analyze the coffee consumption culture of the population. (Source: â€Å"2008 National Cofee Drinking†¦Ã¢â‚¬ ) The given figure indicates the graphical representation of the outcomes of the â€Å"2008 National Coffee Drinking Trends Study†. This study focused on the coffee consumption trends in different age groups and published a comprehensive report detailing coffee trends over the last eight years. From the above chart, it is clear that the percent of coffee drinking in the United States is directly proportional to the ag e of the population. The graph clearly illustrates that people over the age 60 are more likely to drink a lot of coffee as compared to other age groups. Likewise, youngsters between the age of 18 and 24 are less likely to drink coffee as they are heavily attracted to modern beverages. It is advisable for the company to target people over the age 30, because the trends study shows that youngsters very rarely take coffee. However, a growing coffee consumption trends is seen among the age group 25-39; therefore, it is also advisable for the company to give more focus on this group of consumers as potential prospects. Target segment descriptions As we discussed earlier, a major proportion of the Baton Rouge’s population represents Whites and African Americans even though the city is an agglomeration of different cultures. The demographical information show that the city’s 35.8% of the total households are married couples whereas 40.8% are non-families (â€Å"Private hard money†¦Ã¢â‚¬ ). The 2010 census data reveal that the Baton Rouge’s average household size is 2.42 while its average family size is 3.12. The percent of people living under the age groups of below 18 is; 18-24; 25-44; 45-64 and 65 and above is 24.4%, 17.5%, 27.2%, 19.4%, and 11.4% respectively (BatonRouge). The population trend indicates that there are only 90.5 males for every 100