Nielsen Identifies Key Market Segments To Target

By TWICE Staff On Jan 11 2012 - 12:42am

NEW YORK — The mass appeal of digital cameras is clear but to whom exactly should manufacturers be looking to market their latest and greatest models?

In an exclusive report prepared for TWICE, Nielsen offers a glimpse of its PRIZM system, which identifies key market segments as defined by social groupings based on urbanization and affluence. The PRIZM segments are indexed by the likelihood of purchasing a digital camera or camera accessories in the next 12 months in the United States.

Nielsen’s methodology works like this: first, segments are placed in one of four urbanization class categories, Urban, Suburban, Second City, or Town and Country. Within each of these categories, the segments are then sorted into 14 social groups, and then further broken down into 66 narrowly defined market segments.

The 66 segments are based on affluence, a powerful demographic predictor of consumer behavior, Nielsen said. At the top of both the affluence and density scales is Social Group U1: Urban Uptown, in which residents live in urban areas and are very affluent. At the opposite extreme is Social Group T4: Rustic Living, in which residents live in rural areas with a more downscale lifestyle.

Utilizing Nielsen segmentation information shows retailers and manufacturers that not all households are the same, and many of their media preferences, lives and psychographics differ tremendously. Delving into such groups as Fast-Track Families and Kid Country, USA, illustrates a wide diversity within these two segments.

Looking at recent purchasers of digital cameras, many of the top Nielsen PRIZM segments index very high and many, as expected, relate to households with kids. But beyond being families with kids, they are nothing alike. Trying to connect with these two segments through similar messages and similar media may result in missed sales opportunities, Nielsen said. In addition, as purchasers of digital cameras in the past year, manufacturers and retailers can target a disproportionate amount of marketing dollars trying to reach higher indexing segments to capitalize on accessory sales.

Here is a list, in descending order, of those market segments that Nielsen identifies as the strongest purchasers of digital cameras and accessories in the United States: 

Segment        Index
Beltway Boomers    170

The members of the postwar Baby Boom are all grown up. One segment of this huge cohort — college educated, upper middle class and home owning — is found in Beltway Boomers. Like many of their peers who married late, these Boomers are still raising children in comfortable suburban subdivisions, and they’re pursuing kid centered lifestyles. (Upper Mid, Age 45-64, White/Black/ Asian/Hispanic/Mix)

Blue Blood Estates    166

Blue Blood Estates is a family portrait of suburban wealth, a place of million-dollar homes and manicured lawns, high-end cars and exclusive private clubs. The nation’s second-wealthiest lifestyle is characterized by married couples with children, graduate degrees, a significant percentage of Asian-Americans, and six-figure incomes earned by business executives, managers and professionals. (Wealthy, Age 45-64, White/ Asian/Mix)

Country Squires   157

The wealthiest residents in exurban America live in Country Squires, an oasis for affluent Baby Boomers who’ve fled the city for the charms of small-town living. In their bucolic communities noted for their recently built homes on sprawling properties, the families of executives live in six-figure comfort. Country Squires enjoy country club sports like golf, tennis and swimming as well as skiing, boating and biking. (Upscale, Age 35- 54, White/Asian/Mix)

Fast-Track Families   152

With their upscale incomes, numerous children, and spacious homes, Fast-Track Families are in their prime acquisition years. These middle- aged parents have the disposable income and educated sensibility to want the best for their children. They buy the latest technology with impunity: new computers, DVD players, home-theater systems and video games. They take advantage of their rustic locales by camping, boating, and fishing. (Upscale, Age 35-54, Mostly White)

Segment   Index 

Kid Country, USA 150

Widely scattered throughout the nation’s heartland, Kid Country, USA, is a segment dominated by large families living in small towns. Predominantly white, with an above-average concentration of Hispanics, these young, working-class households include homeowners, renters and military personnel living in base housing; about 16 percent of residents own mobile homes. (Lower Mid, Age <55, White/Black/ Hispanic/Mix)

Movers & Shakers   149

Movers & Shakers is home to America’s upand- coming business class: a wealthy suburban world of dual-income couples who are highly educated, typically between the ages of 35 and 54. Given its high percentage of executives and white-collar professionals, there’s a decided business bent to this segment: Members of Movers & Shakers rank near the top for owning a small business and having a home office. (Wealthy, Age 35-54, White/Asian/Mix)

Young Digerati   148

Young Digerati are tech-savvy and live in fashionable neighborhoods on the urban fringe. 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. Wealthy, Age 25-44, White/Asian/Hispanic/Mix)

Winner’s Circle   145

Among the wealthy suburban lifestyles, Winner’s Circle is the youngest, a collection of mostly 35 to 54 year-old couples with large families in new-money subdivisions. Surrounding their homes are the signs of upscale living: recreational parks, golf courses and upscale malls. With a median income more than $100,000, Winner’s Circle residents are big spenders who like to travel, ski, go out to eat, shop at clothing boutiques, and take in a show. (Wealthy, Age 35-54, White/ Asian/Mix)