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You are the vice president of marketing for a new retailer that sells brain training games to exercise and improve memory, and your company is expanding globally.
Analyze the global population data in Table 7-1 (Chapter 7 in
Running head: MODULE 4
Demographics play a part in all areas of a company. From the product they sell to the way
they market their product and much more. These different areas can all be affected by
demographics. This module assignment looks at a table with some demographics from different
countries. It shows different things such as literacy, age groups, and languages used. In order to
better understand the role demographics plays, I will look at the categories in the table and see
how a retailer would respond to them and how it would affect them.
When looking at a group of people, their demographics play a big part in what they do.
An individual as well as a group of consumers can be identified by demographics like gender,
age, literacy, life expectancy, language spoken, and much more. These different factors will
affect the consumers shipping and in turn effect the retailer?s actions [Ber13]. Because these
different demographics can have such big effects on the consumer and retailer, it is very
important to thoroughly research a country before deciding to open up stores or sell products
there. Doing this will insure that the company is in an area that is most profitable to them. Also,
it will allow them to make sure that their product and advertising style best suits the people of
Gender and Age
When looking at an area, gender and age are some of the first things that a company
needs to pay attention to. Although these areas may not seem like they are that important, the
role that they play can be quiet big. Both of these play a role in the products that are sold, how
those products are advertised, and how those products are sold. With gender, a company that sells
a product that is specifically targeting women are going to focus on areas that have a large
female population. When looking at the graph, all of the countries are close to 50% when looking
at males versus females. If a company is selling a makeup product for women, they are going to
want to go to a country that has a large amount of women. Although it isn?t the highest by much,
this company would want to go to Poland to sell their makeup because their population is 51.5%
female. Had the percentage been closer to 25%, the company would not have put that country as
a priority because of the lack of women. This goes the other way as well with product directed
Like with gender, age also plays a role in the product and how companies go about
selling them. There are certain products that are directed towards certain ages, and therefore will
only sell well if there is a high percentage of the age group. Also, there are certain groups that
have more buying power than others and will be able to afford more expensive products [Ric].
When looking at apparel, if a company is selling children?s clothing, they are going to want to
sell their product in a country that has a high percentage of children between 0-14 years of age.
In this situation, their number one country to go to would be India where 30% of the population
is 0-14 years of age. They would then aim for South Africa and Mexico who are both at 28%.
Japan, would be a country where this company wouldn?t want to go. With only 13% of the
population under the age of 15, they don?t have as high of a demand for children?s clothes.
Instead, a company that sells modern technology for those that are between 15-64 years of age
would do better since their percentage is at 64%.
Population Growth and Life Expectancy
The next two sections on the graph are population growth and life expectancy. Population
growth occurs when the ?global birth rate exceeds the death rate? [Bon09]. If the population of a
country is decreasing, then that means that the opportunity to sell a product is also decreasing.
According to Kevin Johnston (n.d.), flat rate demand is a concern for retailers in places where
the population isn?t growing very much. This is where there is an increased chance that a
company will not attract many new customers. Along with this, there is also the chance that the
population is just growing older [Kev]. For a place that is selling products geared towards
middle-aged consumers, if the population grows passed that age, the product will not do as well.
In a country like South Africa or Japan where the growth rate is negative, there is an increased
chance that it will be more difficult to sell a product and get new consumers. With life
expectancy, if growth rate is fairly stagnant, how long people will live is also important. Japan
and Canada have some of the highest life expectancy reaching in the low 80s. This shows that
although the consumers may be older, they are still living for a longer period of time and will
therefore be consumers for longer.
Literacy Rate and Languages Spoken
Finally, the last two groups found on the table or literacy rate and principal languages
spoken. These two things greatly affect how the product is advertised and how the product may
need to be adjusted in order to better suit a country. In the United States, Great Britain, Japan,
Poland, and Canada, the literacy rate is 99%. This means that if an advertisement has words on it,
their consumers would be able to read those words. Also, if a product is one that has a
description or written directions, these countries will be ok in terms of reading. India, on the
other hand, who as a literacy rate of 61%, may have more consumers that are unable to read the
directions to a product.
Besides being able to read in general, a company has to know what languages are spoken
in that country. As an American, many people assume that the entire world speaks English.
Although many countries teach their people the basics of English, that doesn?t mean it is their
primary language or that they fully understand it. For this reason, research is necessary. In a
country like Poland, the primary language is Polish. For this country, everything would need to
be translated into Polish so that the people were able to read and understand the product. In a
country like Italy where Italian, German, French, and Slovene are spoken, the retailer must
realize that their product has to have translations for all of these languages. Without research of
the languages spoken, a retailer could go into a country assuming that they only spoke one
language and not sell their product as well because there are people that don?t understand it due
With every country, a retailer will find many different situations. No two countries are exactly
the same. For this reason, it is always important to research the country before deciding to sell a
product or open a store there. Looking at a countries demographics is a great way to start and
prepare for working in that country. Each demographic can play a different role, whether positive
or negative, with a company. If a company does not research the demographics of a country, they
may find themselves in a situation where they are either not making money, don?t have room to
grow, or don?t have the right consumer base. They may have to complete chance their strategy or
pull from the country outright. Studying the country beforehand will help prevent these issues,
decrease potential losses, and increase sales.
Berman, B., & Evans, J. R. (2013). Retail Management A Strategic Approach. Upper Saddle
River: Pearson Education Inc., Prentice Hall.
Bongaarts, J. (2009). Human population growth and the demogrpahic transition. Philosophical
Transactions of The Royal Society B: Biological Sciences. Retrieved from
Johnston, K. (n.d.). How Does Low Population Growth Affect Local Business? Retrieved from
Suttle, R. (n.d.). The Demographic Variables That Affect a Business. Retrieved from Chron:
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