Case Analyses - the Global Baby Bust Essay

987 Words Mar 24th, 2013 4 Pages
Case Analyses - The Global Baby Bust 1. What are the implications of the global baby bust for marketers of consumer goods? * A marketplace responding to an aging population
For a number of the challenges associated with aging, consumers can find a helpful ally in the many manufacturers and product designers who are catering to "niche markets" (gearing their products specifically to address age-related needs) and enhancing their traditional products targeted to seniors and older boomers. * Changing Households
Generally speaking, households are becoming smaller, with fewer children and with time-stressed parents. That’s mean contributes to the decreasing household sizes. * Living alone can be challenging for consumers
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Capital investment may decline as elderly people cash in their investments to cover daily costs of living. * The effects of these transitions are likely to be especially harsh for developing economies. European countries at least had the opportunity to grow rich before they grew old; China may grow old before it can grow rich. It may prove more difficult for developing countries to kick-start their economies once the aging populations of rich countries reduce their demand for consumer goods. * Another effect is the increase in births to older women: in Canada in 1998 the fertility rate was around 30 births per 1000 women aged 35-39. This rose to 45 births in 2007. * Population aging also depresses the growth of government revenues. Population growth is a major source of economic growth: more people create more demand for the products capitalists sell, and more supply of the labor capitalists buy

4. How does the global baby bust affect the relative attractiveness of different national markets? * Initially, the declining birth rates will bring economic benefits: a. Parents have more time to work and earn, increasing spending power, creating demand which stimulates production and jobs: the economy may expand. b. The appeal of radicalism and social tensions may also decline as young adults make up less of the population and as demand rises for their participation in the labour

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