Customer Profile New York City DEMOGRAPHICS The information bellow is sourced from the website www.clarista.com/MyBestSegments, www.censusscope.org and www.city-data.com •
Population: 8,274,527 (2007)
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Customers: Shoppers, local residents, conventioneers, entrepreneurs, tourists, downtown worker
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Age range: 18-65
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Gender: male and female
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Generation: baby boomers, generation X, generation Y
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Income: $40.000
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Occupation: business people from Wall Street area, Soho and Fifth Ave shoppers, students, downtown workers and general managers from close by stores such as Juicy Couture, Saks Fifth, Barney New York , Banana Republic, Gucci, Rockefeller Center conventioneers.
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Ethnic Diversity: White, Asian, Hispanic, Black, Collar, Europeans, Mix
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Religion: Christian, Catholics
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Social class: upper class, middle class, mid-upper class, working class.
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Married status: single, married with kids, married with no kids.
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Education: Eleanor Roosevelt high school graduated, Columbia University graduated, Master for Fashion Institute of Technology.
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Market segmentation: primarily focus: o
Young digerati: Affluent, highly educated, and ethnically mixed, Young Digerati communities are typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants and all types of bars--from juice to coffee to microbrew.
o The cosmopolitans: Educated, upper-midscale, and ethnically diverse, The Cosmopolitans are urbane couples in America's fast-growing cities. o Money and Brain: high incomes, advanced degrees, and sophisticated tastes to match their credentials. Many of these city dwellers are married couples with few children who live in fashionable homes on small, manicured lots. PSYCHOGRAPHICS
1.Lifestyle: Day in the life: Kurt Roger, 26 years old, currently live in New York City and works as a general manager for Abercrombie and Fitch located on Fifth Ave. He lives by himself in a studio apartment on Sullivan St, Soho. On a typical weekday Roger wakes up at 6am in the morning. He gets himself ready in half an hour then heads to Central Part for an early morning jogging. On the way back home Roger stopped by a drive-through Mc Donald on Broadway St, which is close by to his apartment, and grabs a double cheese burger for breakfast. Roger gets home around 9:30. He turns on the CNN news, finishes his burger, makes himself a to-go cup of coffee then Roger is ready to go to work. Since it is not easy to find parking at Fifth Ave, he takes a quick subway ride from Prince Street station to 57th and 6th station, which is only 10 minutes away from Abercrombie and Fitch store walking distance. He works from 10:45am to 7pm. On the way home, Roger calls up his buddies for a late dinner. They pick him up at 8pm and hit Korean Town. They stop at the best Korean restaurant in town Kang Suh for its famous BBQ Pork and Kim Chi soup. After dinner, Roger and his friends decided to grab a couple of drinks at Hard Rock cafe at Times Square. They drop him off at home around 11pm. Before going to bed, Roger goes online checking email and weather forecast for the next day. He makes a short phone call for his Mom who is currently live in Seattle, making sure that she is still doing fine. Roger takes a quick shower then goes to bed at 12:30 pm.
The information bellowed (Sports, Famous basball team, Entertainment and Hobbies) is sourced from Prizm Ne Segmentation www.claristas.com/MyBestSegments •
Sports: golf, football, baseball, jogging, snowboarding
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Famous baseball team: New York Yankee
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Entertainment:
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o Live music: at Madison Square Garden o Shows: Lion King, Mamamia, Young Frankenstein … o Night Clubs: Avalon, BB King Blue, Cielo… o Stand-up Comedy: Dangerfield’s Club, Carolines... •
Hobbies: o
Watching baseball (Yankee), going to night clubs at Times Square, watch daily news, jogging at Central Part, drinking Starbucks, having breakfast at Dunkin Donuts.
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Transportation:
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According to Metro Transportation Authority, The majority of New Yorkers commute by Subway and buses. In fact, NYC Transit - with 468 subway stations has only 35 fewer stations than the combined total of all other subway systems in the country
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o For The cosmopolitans and Money and Brain Group, they are urban couple with high-paid jobs and usually homeowners. This type of segmentation normally drive up-scale midsize cars like: Mercedes Benz C-class, Audi A4 or BMW 3 series •
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Dining out: New Yorkers love night time activities and obviously dining out. For my particular segmentation, their regular spots for dinners are often Au Bon Pain, Tamarind, Scaletta Ristorante and Shang Hai Pavilion. 4
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www.claritas.com/MyBestSegments
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MTA, State of New York transit info: www.mta.info.nyct www.clarista.com/MyBestSegments 4 www.clarista.com/MyBestSegments 3
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Read: Wine Spectator, the New York Times, Elle Décor, Sunday Newspapers, Wall Street Journal5
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Watch: BBC America, New Street Week, Independent film channel, Good Morning America, CSI New York6
2.Spending The information below is sourced from US Bureau of Labor Statistic 7 •
New Yorkers spend considerable money on appearance as New York is known as Fashion Capital. They are hard-working people. They earn hard and spend hard. New Yorkers are also big fans of coffee since New York is known as “The city that never sleeps”. With tourists, spending habits are varied since they come from different places. However, they tend be easy on spending especially on food and drink as they travel.
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New Yorkers spend a big portion of their money on foods and alcohol. In fact, an average household expenditure for food within the United States is $5,375 while it goes up to $7,005 in New York particularly.8 Expenditures and expenditure shares, United States, New York City, and Boston, 2002-03 United States
Item
Food .......................................................................................... Alcoholic beverages ................................................................. Housing ..................................................................................... Apparel and services ............................................................... Transportation ........................................................................... Healthcare ................................................................................ Entertainment ........................................................................... Personal care products and services ...................................... Reading and education ............................................................. Tobacco ..................................................................................... Miscellaneous ........................................................................... Cash contributions ................................................................... Personal insurance and pensions ............................................
New York City
Boston
Expenditure s
Shares
Expenditure s
Shares
Expenditur es
$ 5,357 384 13,359 1,694 7,770 2,384 2,069 526 901 305 698 1,324 3,978
13.1 .9 32.8 4.2 19.1 5.9 5.1 1.3 2.1 .7 1.7 3.2 9.8
$ 7,005 469 18,919 2,638 7,729 2,235 2,350 643 1,426 266 771 949 4,918
13.9 .9 37.6 5.2 15.4 4.4 4.7 1.3 2.8 .5 1.5 1.9 9.8
$ 5,627 504 15,211 1,610 7,175 2,007 2,019 496 1,281 273 473 1,016 4,121
Shares
Average income per family ..................................................... 50,302 66,643 59,648 Average expenditures, all items 40,748 50,319 41,814 .............................................. NOTE: Itemized expenditures are not all-inclusive and may differ from total expenditures. Expenditure shares do not add to 100 due to rounding. SOURCE: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey
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www.clarista.com/MyBestSegments www.clarista.com/MyBestSegments 7 www.bls.gov/cex 8 www.bls.gov/cex 6
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13.5 1.2 36.4 3.9 17.2 4.8 4.8 1.2 3.1 .7 1.1 2.4 9.9
3.Value: As New Yorkers origins are very diverse, they share different values. Some people believe in individuality and independence. However, Asian American believes in social harmony and relationship. It’s the differences and diversity of New York that makes it produce lots of innovation and creativity. Scott Page, professor of science and economic at University of Michigan, said in an interview with “The New York Times magazine”: “New York City is the perfect example of diversity functioning well. It’s not a 9
coincidence that New York has so much energy and also so much diversity.”
4.Brand and shopping references: New Yorkers love Designer’ clothes and dark colors, especially black. A typical New Yorker will dress full black from head to toe in winter time. Upper class shoppers tend to go to Fifth Ave or Manhattan mall: Gucci, D&G, Valentino, Juicy Couture, Saks Fifth, Apple, Nordstrom …Middle class and above mainly shop at Soho which have most affordable brands like H&M, Top Shop, Forever 21, Mango, The Gap, Costco, Rite Aid… and other small boutiques as well. 10
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www.nytimes.com/2008/01/08/science/08conv.html www.clarista.com/MyBestSegments
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VALS Categories: All information from this section “Vals Categories” is sourced from SRI Consulting Business Intelligence website
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1.Experiencers: “Experiencers are motivated by self-expression. As young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis they place on looking good and having "cool" stuff” 12 As described above, our first group of market segmentation, Young Digerati, will fall into experiencer categories as they are mostly young people who like to go places, try new thing and like to engage themselves in all kinds of interactive and fun activities such as shopping, clubbing, dining out at casual restaurant, chilling at coffee shops.
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www.sric-‐bi.com/VALS www.sric-‐bi.com/VALS
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2.Achievers: “They are motivated by the desire for achievement. They have goal-oriented lifestyles and a deep commitment to career and family. Their social lives reflect this focus and are structured around family, their place of worship, and work. Achievers live conventional lives, are politically conservative, and respect authority and the status quo. They value consensus, predictability, and stability over risk, intimacy, and self-discovery. Image is important to Achievers; they favor established, prestige products and services that demonstrate success to their peers. Because of their busy lives, they are often interested in a variety of time-saving devices.”13 As described above, our second group of market segmentation, The Cosmopolitans, will fall into the Achievers categories as they are mostly upper class couples with high income and education.
3.Innovators: “Innovators are successful, sophisticated, take-charge people with high self-esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services. Image is important to Innovators, not as evidence of status or power but as an expression of their taste, independence, and personality. Innovators are among the established and emerging leaders in business and government, yet they continue to seek challenges. Their lives are characterized by variety. Their possessions and recreation reflect a cultivated taste for the finer things in life” 14 As described above, our last group of market segmentation, The Money and Brain, will fall into the Innovator categories. This is the most sophisticated target market group of all three as they are the last ones who care about prices. These are usually middle-age or older people who
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www.sric-‐bi.com/VALS www.sric-‐bi.com/VALS
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have stable family and kids. By the definition of Innovators, family value and social status seem to be the most important factors in their lives.
Buying Motivators:
Self-Esteem Innovators (Money and Brain) Social Needs Achievers (The Cosmopolitan), Experiencers (Young Digerati)
Physiological Needs Experiencers(Young Digerati), Achievers(Cosmopolitan), Innovators(Money and Brain)
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Physiological need-all three Vals Categories: o “These are biological needs. They consist of needs for oxygen, food, water, and a relatively constant body temperature. They are the strongest needs because if a person were deprived of all needs, the physiological ones would come first in the person's search for satisfaction.”
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o Obviously beverages and foods are always on high demand in public places. Romanio Café is located at Fifth Ave shopping district and right next Rockefeller center where attract thousands of people every day16. It does not matter what type of market segmentation it is, the need for food and drink is every one’s need and that is why three of our major Vals categories for target market all belong to this section. 15
Maslow Hierarchy of needs: http://honolulu.hawaii.edu/intranet/committees/FacDevCom/guidebk/teachtip/maslow.htm 16 www.mustseenewyork.com/attractions/rokerfeller-‐center.html
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Social need (love/belonging)- Achievers (The Cosmopolitans), Expriencers (Young Digerati) o “They are needs for love, affection and belongingness. Maslow states that people seek to overcome feelings of loneliness and alienation. This involves both giving and receiving love, affection and the sense of belonging”17 o Experiencers are young and have the most time for socializing among those three Vals Categories. They always want to hang out and have fun with friends18. They love to have some small get together with a cup of coffee and long-hour casual talk to keep track of what is going on within their social community because they need to feel like they are a part of it, or simply just to enjoy a few moment of chilling. On the other hand, Achievers are more family-oriented19. As a family, family members want to be connected with others. So there are more than just drinks and bakeries but our cafe also fulfills customers’ need of a warm and relaxing atmosphere within the busy crowded Fifth Ave.
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Self-Esteem-Innovators (The Money and Brain)
o “These involve needs for both self-esteem and for the esteem a person gets from others. Humans have a need for a stable, firmly based, high level of self-respect, and respect from others. When these needs are satisfied, the person feels selfconfident and valuable as a person in the world. When these needs are frustrated, the person feels inferior, weak, helpless and worthless”20 o
For People that are highly successful and sophisticated, they have all the social power and money in the world; their needs go beyond physiological or social needs21. They want to be internally accepted. And yet people tend to have more confidence in life as more people show admiration toward them22. Many value each other through self-expression and lifestyle. It’s not what you eat that tell much about who you are but where you eat that tell something about who you are.
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www.honolulu.hawaii.edu/intranet/committees/FacDevCom/guidebk/teachtip/maslow.htm www.sric-‐bi.com/VALS 19 www.sric-‐bi.com/VALS 20 www.honolulu.hawaii.edu/intranet/committees/FacDevCom/guidebk/teachtip/maslow.htm 21 www.clarista.com/MyBestSegments 22 www.honolulu.hawaii.edu/intranet/committees/FacDevCom/guidebk/teachtip/maslow.htm 18
This is not always true, but most of the time that is how people look and judge each other. For that reason, Innovators tend to engage themselves into certain places or activities that represent their finer taste and social status. At our cafÊ, yes we do sell coffee and bakeries, but our main objective is not just that. We sell a lifestyle. We create everything from interior, music, food, beverages, services‌in a unique and artistic perspective. People who love sensual art, coffee, fashion, classical music, European decoration will all feel related.