MKTG 224 : Marketing Research : Analyze the Level of Income

1. If a company is interested in estimating the distribution of income in the Northern Territory or New Zealands's North Island, how could it proceed? Be specific.

2. Visit three web services of fast moving consumer goods (FCMG) companies (for example Unilever and P&G). Is there evidence of a segmented approach or are they mass marketing? Rank the three companies in terms of how well they segment their market and prepare a set of recommendations on how they could segment their market further.

Answer: 

Introduction: 

The aim of the report is to talk about the two questions in which the first question include the estimation related to the distribution of the income in the Northern Territory by the company who is interested in proceeding with the same. On the other hand, the second question talks about the three companies in terms how they segment their market and make the recommendation on how they can further make the segmentation of the market which is essential for the growth of the business. Along with this, this is the way through which the company can achieve its goals for profit.

1. In case, the company is interested in estimating the distribution of income in the area of Northern territory they need to analyse the level of income of the particular area which will help them in making the estimation accuracy. The distribution of income can be measured easily for which the income needs to be defines and another aspect include the estimation need to be determined (Wilkins, 2015). In order to estimate the distribution of income in Northern Territory, it is essential to find the total income available to each household to the actual resources that are available to the size, members and composition of households. This is considered one of the way through which the amount of the inflow and outflow can be analysed with the Northern Territory.

According to the current data, in Northern Territory approx. 28.9% of the household earned an income of the $2,500 or more per week in the year 2016. The income of the people is one of the crucial indicators which reflect the socio-economic status of the state (Australia, 2018). This factor helps in revealing the economic opportunities and the socio-economic status of the Northern Territory which will help the company in estimating the distribution of income. The build-up approach is generally used by the company for evaluating the distribution of the household income and the individual income. This approach helps in offering the insight into the changes in the summary distribution measures such as effective use of the Gini Co-efficient. Along with this, this has been found that while estimation the company needs to ensure that they consider the factor that can influence the income which includes set of demographic, social and government policy, returns received from participation. The change in the distribution of income from the different sources and for population subgroups with the focus on hourly wages, working hours and others can influence.

Companies in the current era can take the help of the HES (Household Expenditure Survey) which remain as a valuable information source that is used for developing a better understanding for the distribution of Income in the Northern Territory (Australian Government, 2013). The company can make use of the different method for estimating the distribution of income which includes Histograms. This estimated function allows the income distribution to be presented with the help of graphs which can be prepared with the use of the methods like Mean, mode and Medium. In addition, the company can make use of the statistical method for estimating the distribution of income. This is a method of collecting, summarizing, analyzing and interpreting the data which is the form of numerical (Encyclopedia, 2018). This method is generally used for the estimation of the hard data. These are the ways through which the company can proceed.

2. In the current era, the demand for the consumer goods is increasing in the market. The three fast-moving consumer goods companies include Unilever, P&G and Nestle (MBA Skool, 2018). Each and every company segment their market in a different manner. The approaches to the segmentation that can be used by the company include Demographic, psychographic, behavioural and geographic. The three of the companies which are selected follow the mass marketing concept in which they don’t think for the segmenting approach and follow the mass marketing concept.

In addition, the products which are offered by the company to their customer reflect the segmentation approach which is followed by the company. For instance; P&G Company offers the products ranging from baby to personal health care. This shows that the company follows the mass marketing strategy.

The ranking for the three companies in the terms of their segmentation include Nestle on the no. 1 position then the Unilever Company who comes in the second position and at the third position, there is P&G Company.

Nestle company produces and distribute the major products which include baby food, medical items, bottled water, tea, confectionery and many others. This shows that the company follow the mass marketing concept or in simple words they make use of the multi-segment approach in which they target the multiple segments for their products which are offered by them or this can be said that the company follow the mass marketing because the products which are offered by the company can be consumed by the different peoples (Hollensen, 2015). Further, it is recommended to the company to keep following the mass marketing strategy with the help of which they can target the maximum customers and can earn the profit.

On the other hand, the Unilever Company make use of the differentiation strategy in which the company segment the customers on the basis of the different variables of segmentation. This shows that they are giving the competition to the NESTLE company in the competitive market. It is suggested to the Unilever Company that they need to be very specific for their target market.

In the end, P&G Company makes use of the mix of the segmentation variables which include demographic, geographic and psychographic segmentation. These entire 3 variables are targeted by the company for most of the products (Kotler, 2015). Along with this, there are few of the products which are produced by the company for which they make use of different approaches. It is recommended to P&G Company to include more and more customers in their range so that they can meet the goals of the company that is to earn maximum profit.

Conclusion: 

In the end, it can be concluded that the companies who are interested in estimating the distribution of income can do it by following the different ways. Out of which, one of the most important methods is by evaluating the estimation for the distribution of the household income. In the second question, there is discussion related to the segmentation shows that FCMG company make use of the same sort of marketing segmentation strategy. Still, the difference lies which are clear from the products that are offered by the company.

References: 

Australia (2018) Northern Territory [Online]. Available from: https://profile.id.com.au/australia/household-income?WebID=160 [Accessed on 5^th September 2018]

Australian Government (2013) Trends in the Distribution of Income in Australia [Online]. Available from: https://www.pc.gov.au/research/supporting/income-distribution-trends/income-distribution-trends.pdf [Accessed on 5^th September 2018]

Encyclopedia (2018) Statistical Methods [Online]. Available from: https://www.encyclopedia.com/computing/dictionaries-thesauruses-pictures-and-press-releases/statistical-methods [Accessed on 5^th September 2018]

Hollensen, S. (2015) Marketing management: A relationship approach. India: Pearson Education Limited.

Kotler, P. (2015) Framework for marketing management. India: Pearson Education.

MBA Skool (2018) Top 10 FMCG Companies in the World 2018 [Online]. Available from: https://www.mbaskool.com/fun-corner/top-brand-lists/17609-top-10-fmcg-companies-in-the-world-2018.html?start=7 [Accessed on 5^th September 2018]

Wilkins, R. (2015) Measuring income inequality in Australia. Australian Economic Review, 48(1), pp.93-102.