Marketing Analysis Report: Income Distribution and Demographic Trends

This report provides a comprehensive marketing analysis of income distribution in the Northern Territory of New Zealand, focusing on how companies can estimate and understand income distribution to target their products effectively. It discusses various methods, including analyzing population size, household spending behavior, employment rates, government census data, GDP, and spending habits. The report also explores the impact of demographic changes, specifically the aging of baby boomers and the rise of millennials, and how these generational shifts create opportunities for businesses in industries like healthcare and fashion. It highlights the effects of the aging population on the labor force, the economy, and the potential for investment in services catering to the elderly, such as nursing homes and retirement villages. The analysis draws on statistical data and research to provide insights into market trends and investment opportunities.

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Any company interested in estimating the distribution of income in Northern territory of
New Zealand’s North Island first should determine the population size of the territory and the
characteristics of the households in terms of spending behavior. The population was estimated to
be at 228,833 in the 2016 census an 8.0% increase from 211,945 in the 2011 census (Australian
Bureau of statistics, 2016). Government census also provides information on income distribution
among the households and these can be very useful information to any company seeking to
market its product. Income distribution information helps companies focus more on their target
group since they are able to determine how many people can afford their product and what
modifications the company can make to the products to make them affordable to more people
while at the same time raising the profit margins as is the objective of any company.
A company can also use statistics on the employment levels in the Northern territory of
New Zealand versus the unemployment rate. Not only is the jobless rate in the Northern territory
the lowest in the Nation, but it is 10% below its decade average (Canna, 2017). This in turn will
assist the company to determine the types of jobs that most people engage in and thus can easily
determine their income range. This will help the company in determining the distribution of
income based on occupation. The company can use government records of the number and types
of registered businesses and the number of employees employed in them
The company can also data on the living standards of the people in the Northern territory.
A census can be carried to determine the number of people living in high cost homes and those
living in middle cost homes and also those who live under poor housing facilities. This will help
the company determine the income distribution since it will establish the purchasing power of the
people and thus can come up with a more precise marketing strategy and establish its target
group more accurately. Income distribution can also be determined by obtaining the GDP of the

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northern territory and dividing it by the population of the territory. This information can be
obtained from the governments finance record which the company can easily access since they
are made public in publications.
The company can also use information on the spending habits of the people. It can use
reports on surveys carried out on the spending habits of the people in the Northern territory and
the most commonly purchased goods. This will assist the company in knowing the amount of
people who can afford to spend on luxurious products and those who strictly go for the products
they vitally need. This will show the company the percentage of people in the high earnings
bracket and those who are in the middle class and also those that are in the low class. This
translates to the company recognizing the income distribution in the Northern Territory. The
people who can afford luxuries are most likely to have higher incomes while the middle class
earners can afford luxuries but not in a large scale like the ones in the high class
The rapid birth experienced after the salient generation that is after the post-world war II led to a
notifiable and rapid population growth. This spilled over to the generational gap widening and
therefore the demographic change awakened the opportunities of international market to involve
meet the generational satisfaction. Baby boomers can be categorized by the age bracket of
between the ages of 18-35. The millennial who are the largest living generation (Cullufo and
Cohn 2017). Industries such as the fashion industry and healthcare were to be the major investor
to this generation though the health care industry has many restrictions, regulation and service
standards, investors could actively rush to invest here. The obvious strategy would be to buy
shares of companies that would serve the healthcare need of baby boomers (Mourdoukoutas
2012). Since the state government and insurance companies enjoy the monopolistic advantage,

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the next move would be to cut on the costs and services offered as a way of attracting the target
generation. The fashion industry. For instance, the United States Fashion Industry, is expected to
be on a constant production of clothes to keep up with the growing generation. It is also an
attractive investment for investors looking to venture into new businesses.
The aging of the baby boomers impact is largely felt by the labor force. The non-working
population (i.e. age 18 and below and ages above 70) is fewer compared to the working
population age bracket. This implies that at moment the labor force is flooded with new energetic
energy. At this point labor intensive companies and other industries that are emerging will be
flooded with more workers since the working population is large. Consequently, they all retire
approximately around the same time leaving the labor force with only the new. Therefore leaving
the fewer workers in the labor force hence low economic growth and increased dependence since
the retired individuals do not contribute much to the economy compared to those who are active
in the labor force. (Casselman, 2014).
Investors will therefore shift their interest from the labor force industries and they now
engage in venturing businesses targeting the aging. The retired and old are seen as an economic
challenge, in the sense that, most governments allocate a certain amount of funds for the old, this
funds will be used to care for the old but it has no economic returns, the aged are also viewed as
a business opportunity at the same time, for instance investing in nursing homes for the old.
Investing in retirement villages which offers services such as health and nutrition care, provides
a social environment to avoid boredom and felling of neglect from their family members who are
busy and may lack time to interact with them. Investment can also be expanded to provision of
private car services which can offer assistance to old people living in their homes, (Jones 2015).

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References
Australian Bureau of Statistics “2016 Census: Northern Territory”. Retrieved from:
www.abs.gov.au/ausstats/abs%40.nsf/mediareleasebyCatalogue//C73D7CC81CA1FD2FCA2581
48000A4067?OpenDocument
Canna, X. (2017) “State of the states: NT economy ‘losing momentum’, slips to sixth
spot in ranking.” BBC NEWS. Retrieved from. www.mobile.abc.net.au/news/2017-01-23/nt-
economy-losing-momentum-falls-in-state-of-the-states-rankings/8202766
Cillloffo, A. and Cohn, D. (2017) “10 demographic trends shaping the U.S and the world
in 2017” FACTANK. Retrieved from. www.pewresearch.org/fact-tank/2017/04/27/10-
demographic-trends-shaping-the-u-s-and-the-world-in-2017/
Mourdoukoutas, P. (2012) “3 Stocks to Ride the Massive Aging of Baby Boomers”
Markets. Retrieved from https://www.forbes.com/sites/panosmourdoukoutas/2012/10/25/3-
stocks-to-ride-the-massive-aging-of-baby-boomers/
Casselman, B. (2014) “What baby boomers’ retirement means for the U.S economy”
FIVETHIRTY EIGHT. Retrieved from https://fivethirtyeight.com/features/what-baby-boomers-
retirement-means-for-the-u-s-economy/
Jones, H. (2015) “How the ageing population is boon for business” theguardian.
Retrieved from https://www.theguardian.com/money/2015/aug/19/ageing-population-pension-
reform-boon-business