Marketing Research Report: Northern Territory and FMCG Analysis

This marketing research report addresses two key questions. The first question focuses on estimating income distribution in the Northern Territory, detailing methods such as analyzing household income, utilizing government data, and employing statistical methods to understand economic opportunities. The second question examines market segmentation strategies of three Fast-Moving Consumer Goods (FMCG) companies: Unilever, P&G, and Nestle. The report evaluates their segmentation approaches, including demographic, psychographic, behavioral, and geographic segmentation, and ranks them based on their segmentation effectiveness. It recommends strategies for enhanced market segmentation, emphasizing the importance of understanding consumer behavior and adapting marketing approaches to maximize profitability. The report provides a comprehensive analysis of income distribution and market segmentation, offering valuable insights for marketing professionals and students alike.

Marketing research
9/5/2018

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Contents
Introduction......................................................................................................................................2
Question 1........................................................................................................................................3
Question 2........................................................................................................................................4
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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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.

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Question 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

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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.
Question 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

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the products ranging from baby to personal health care. This shows that the company follows the
mass marketing strategy.
(Source: MBA Skool, 2018)
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.

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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.

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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.

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References
Australia (2018) Northern Territory [Online]. Available from:
https://profile.id.com.au/australia/household-income?WebID=160 [Accessed on 5th 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 5th September 2018]
Encyclopedia (2018) Statistical Methods [Online]. Available from:
https://www.encyclopedia.com/computing/dictionaries-thesauruses-pictures-and-press-releases/
statistical-methods [Accessed on 5th 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 5th September 2018]
Wilkins, R. (2015) Measuring income inequality in Australia. Australian Economic
Review, 48(1), pp.93-102.