Characters in the Over

Some factors are important for evaluating the market segments before the company targeting the marketing (Jobber 2007). Segment size, segment growth rate, segment profitability and price sensitivity can be considered the market factor to be analyzed (Jobber 2007).

According to the report about Technology and the Over-55s from Mintel (2011), there will be more than 17 million people who are over 55 in 2011 which take 28.4 per cent of the whole population in UK (see Figure 1). As a result, the segment size is large in UK.

Figure 1 Trends in the age structure of the UK population

(Source: Office for National Statistics/GAD/Mintel, 2006-16)

Compared to the population of people over the 55 in 2010, this population will increase more than eight per cent in 2016 to the 19 million based on the number in figure 1.

Segment profitability is vital factor in market attractiveness (Jobber 2007), according to the survey of 482 internet users aged over 55 from the Mintel (2011), for the tablet, the main product in Company Apple, two per cent of people already had tablets and 10 per cent of the respondent believe that they will consider buy the tablets in the next 12 months. According to this survey, it seems that segment profitability is promising for the tablet targeting this segment.

Price sensitivity should be put emphasis on because price sensitive customers can lead the company into price competition which can corrode the profit margin (Jobber 2007). Unfortunately, according to the report from Mintel, people over 55 are highly price sensitive (see Figure 2).

Figure 2 Most important factors when purchasing tablet computer - over 55s

(Source: Office for National Statistics/GAD/Mintel,March 2011)

In summary, although Company Apple wants to target the people who are over 60 for its new segmentation, the statistical result about the people who are over 55 also can help the company knows the marketing in term of the segment size, segment growth rate, segment profitability and price sensitivity. Now the market segment the Company face is large, potential and highly price sensitive.