Worldwide Demographic Trends and its Impacts on International Marketing
There’s a drastic demographic transition in the world today. Different countries are at different stages of this demographic change in trend. Most developed countries are experiencing an aging process that is uniquely under way, and by 2020, many other developing countries in eastern and central Europe, as well as southeast and East Asia will experience this unique aging. Conventionally, there is a reduced demographic transition in other developing countries and a major factor to consider is the possibility of the increase in their working-age populations in the next decades to come. (Lam & Leibbrandt, 2013)
Some of the demographic trends in the world today include the demand trends, supply trends, and external factors. These trends, in one way other affect the performance of international marketing. (Chatterjee et al., 2010) In the demand trends, there are billions of new consumers surging up every year in the world, thus the need for global products or services will arise. In addition, there are shifting demographics in the world, people hardly stay at a particular geographical location; there is also rise in digital consumers where the world has gone global through technology; the modernization and focus of trade are expanding at a higher pace, and there is a rise of the segment of value. (Chatterjee et al., 2010) In the supply trend, there are more volatile input costs to consider, and even the scarcity of labour in the emerging markets must also be considered. Finally, the external factors include the change in tax regimes and increasing trade protectionism. (Chatterjee et al., 2010)
Since there has been a boom in the global economy, organizations have continually striven to be more productive, efficient, and regulation. However, demographic trends and its forces militate against their participation in international business. Moreover, reaching the global world requires strong marketing strategy and some of other trends include the quick development of regional trade, including APEC, EU, ASEAN, etc; more wealth and development in many nations of the world, bring about increased purchasing power; the emergence of the biggest evolutionary markets such as China, Hungary, India, and Malaysia; and the availability of advanced technology for transportation and communication. (Ghauri & Cateora, 2011) Apparently, the global geographic trends greatly provide opportunity for international marketing and organization. (Ghauri & Cateora, 2011) Every business operation considers bears in mind a global recognition and thus, prepare to compete regardless of these trends. Organizations that do not have the opportunity to operate globally are still being affected by the progress of the European Union based on the economic changes in most popular nations like India and China. (Ghauri & Cateora, 2011) Finally, we can say that irrespective of these trends and competition, the international market is increasing at a faster pace.
The industries that are benefiting more from these baby-boomers include, auto companies like Toyota, food company such as Swiss Multinational Company, Nestle, technology and communication industry such as Apple, the sports industry, wears industry such as Nike, and other home needs industries. (Ghauri & Cateora, 2011).
Nestle’s New-Product Launches or Promotional Campaigns
The website of Nestle, Australia has more promotional campaigns than new-product launch. These will be discussed below.
First, the Nestle’s Healthy Active Kids campaign. This campaign was posted on July 3, 2016 and it’s targeted at Australia parents on how they can teach their kids about great healthy eating. Prior to this campaign, Nestle was able to carry out a survey to understand and estimate how many parents in Australia actually understand their children’s diet, since many of them believe that they have ample ideas about the nutritional kind of food to give their children. Nestle’s study turned out to observe that over 1300 parents and guidances have this knowledge and are even concerned about their children’s nutrition. An important aspect of this campaign was to promote the understanding of the right portion of balanced diet children should have each day. In addition to this, also to encourage and promote cooking among Australian parents. This campaign is an effective campaign and can be successful if intense awareness is carried out regarding it. And since Nestle offers the opportunity for some schools to win “The Kitchen Kart,” this will go a long way to build their brand recognition in the heart of the children, their parents, entire Australia, and the world at large.
Second, Nestle is giving out extra support for indigenous girls to fund their education. This campaign is aimed at the educational segment of the market. This funding has started for a long time, but now extended to many other secondary schools in Australia. The major focus is to help these girls complete their secondary education. The announcement of this campaign to the world is an amazing step for their brand to be excellently built in the marketplace. The campaign can be successfully actualized because Nestle is working with the Australian government and many of these schools to not only help the girls, but build a family and the community at large. It is a great development and it will go a long way to develop greater value for Nestle.
Moreover, the next campaign is the strategic meeting to discuss the lingering issues facing the African continent. This campaign is aimed at promoting sustainable development and better nutrition in Africa. It will be successful because the major purpose is to “invest in sustainable development in Africa,” once that is achieved, the company brand is promoted tremendously.
Also Study: Nestle Operations Management Project
- Chatterjee, I., Kupper, J., Mariager, C., Moore, P., & Reis, S. (2010). The decade ahead: Trends that will shape the consumer goods industry. McKinsey &Amp; Company, 1–18. Retrieved from file:///c:/users/silverstone/downloads/trends that will shape the consumer goods industry.pdf
- Ghauri, P., & Cateora, P. (2011). International Marketing . Edinburgh Business School, 1–52. Retrieved from https://www.ebsglobal.net/ebs/media/ebs/pdfs/international-marketing-course-taster.pdf
- Lam, D., & Leibbrandt, M. (2013). Global Demographic Trends and their Implications for Employment. High Level Panel, 1–33. Retrieved from http://www.post2015hlp.org/wp-content/uploads/2013/05/lam-leibbrandt_global-demographic-trends-and-their-implications-for-employment.pdf
- Media. (2016). Retrieved August 25, 2016, from http://www.nestle.com.au/media#itemperpage=20