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Target market Analysis
- 2. 2 This section of marketing plan will analyze a group of U.S. visitors who will most likely travel to Nova Scotia. The target market can be narrowed down based on the demographic and psychographic information of the U.S. visitors. Demographic Profile We will target U.S. visitors who meet criteria in the following groups: age, income, region, education and marital status. Age The best segment to target for travel to Nova Scotia are baby boomers. Born between 1946 and 1964, baby boomers are currently aged from 50 to 681 . Approximately 84.6 percent of baby boomers choose travel and tourism for leisure.2 A large portion of U.S. visitors to Nova Scotia was made up of baby boomers in 2010.3 In 2010, about 54 percent of U.S tourists travel to Nova Scotia in 2010 were couples aged from 45 to 74.4 Based on a 2013 report, the average age of U.S. visitors to Nova Scotia falls between ages of 55 and 65.5 Income The targeted travelers are married couples with an annual household income of $70,000 or higher. In 2010, the median household income for domestic U.S. travelers who travel for leisure was $62,5006 . Because of the 1.08677 exchange rate of U.S. dollar to Canadian dollar, the estimated household income of U.S. visitors to Nova Scotia should be higher than $62,500. According to the Nova Scotia government, U.S. visitors traveling to Nova Scotia in 2010 spent around $1688.8 In 2013, the average spending fell between $1,000 and 1,5009 . This spending expenditure indicates that traveling to Nova Scotia is affordable for baby boomers with an annual household income over $70,000. Region We will target baby boomers who reside in the Mid-Atlantic and New England areas of United States (Figure 1)10 . As shown in Table 1, 30 percent of U.S. visitors travel to Nova Scotia were from New England and seventeen percent came from Mid- Atlantic11 in 2013. This pattern can be explained by the proximity of these two regions to Nova Scotia. Figure 1: Map Of Region Of Target Market Source: U.S. Census Bureau
- 3. 3 The partnership between Canada and United States also has an influence on the geographical profile of our target12 . According to the Atlantic Canada Tourism Partnership agreement13 , the Mid-Atlantic is the priority market of Nova Scotia14 . As a result, we should focus advertising specifically on travelers in these two areas. Education Our segment to target are baby boomers who have a bachelor’s degree or higher. Baby boomers have a higher level of education than any generation before them15 with 28.5 percent16 of them holding a bachelor’s degree or higher. According to Nova Scotia Tourism Agency, 51% of U.S. visitors to Nova Scotia graduated with a bachelor’s degree17 . Figure 2: ACS Educational Attainment by Degree-Level and Age-Group Source: U.S. Census Bureau, 2011 American Community Survey 30% 17% 18% 10% 25% Table 1: PORTION OF ESTIMATED VISITATION OF U.S. VISITORS TO NOVA SCOTIA BY ORIGIN 2013 New England Middle AtlanHc South AtlanHc East North Central Other
- 4. 4 According to Figure 2, adults aged 45 to 64 who live in our targeted region (New England and Mid-Atlantic) have a higher than average 28.6 percentage to own a Bachelor’s degree or higher18 . Since baby boomers are the majority of people aged between 45 and 64, those who live in the targeted area have higher education level than others. Marital status Our target market are married baby boomer couples who have no children or no longer need to financially support their children. According to 2010 Nova Scotia Visitor Exist Survey, 36 percent of visitors to Nova Scotia are couples19 . Baby boomers prefer traveling without their children20 . When travelling, boomers feel closer to their spouse 21 and even feel like newlyweds without the children around22 . Psychographic Profile While it is important to know the demographics of our target market, it is also crucial to understand their lifestyle, activities and interests. Lifestyle For baby boomers, travelling is a necessity, not a luxury23 . According to research, boomers spend an average of $3,000 on vacation travel annually24 and take two to four trips each year25 . When travelling, baby boomers seize for “active” relaxation activities26 . For example, golfing27 . Unlike their parents who prefer travelling until retirement28 , baby boomers have started travelling for relaxation at a much younger age29 . Figure 3:Golfing At Cabot Links In Nova Scotia Source: http://www.nytimes.com Baby boomers desire unique culture and unconventional things30 in travel as viewing themselves as “forever young.”31 Boomers yearn for observations and experiences different from what are offered at home32 . Baby boomers prefer culturally-oriented trips target historic or education33 which can satiate their intellectual curiosity34 . While travelling, baby boomers embrace freedom35 . Boomers rebel at structures36 and prefer to explore travel destinations on their own37 . However, baby boomers welcome the convenience of a vacation package to avoid stress38 . Outdoor Activities Baby boomers will be drawn to Nova Scotia for their physically active nature and adventurous spirit.39 According to research, boomers are more likely to participate soft adventures under
- 5. 5 controlled conditions40 . During vacations, boomers prefer activities that are less physically demanding41 . The outstanding natural landscape and various outdoor activities are significant issues when boomers travel to Nova Scotia42 . According to table 2, the most popular outdoor activities in Nova Scotia are beach exploring (81%), hiking (75%), coastal sightseeing (71%) and nature observing (63%)43 . The variety of outdoor activities in Nova Scotia can fulfill the needs of adventurous boomers44 . Cultural Exploring Baby boomers travel to Nova Scotia because of their enthusiasm in looking for unique cultural experiences45 . According to Nova Scotia Tourism Agency, cultural enthusiasts to Nova Scotia are mostly baby boomers46 . While travelling, baby boomers prefer authentic experiences that makes them more intimate to people47 . Nova Scotia’s culture is a mix of Acadian, Mi'kmaq, Scottish and African Nova Scotian foundations48 . Nova Scotia’s multi-cultural background will fulfill baby boomers’ need on educational vacations49 . According to Table 3, the most popular cultural attractions in Nova Scotia include: craft shops (92%), museums and historic sites (87%), and the Halifax Waterfront (70%)50 . Whale watching Swimming/sunbathing Nature observing Coastal sightseeing Hiking Beach exploring Table 2: 2010 Nova Scotia Outdoor Activity Participation Rate Outdoor Enthusiasts 37% 38% 49% 70% 87% 92% Nightclubs/lounges Parks,fossils,geo sites Art galleries Halifax Waterfront Museums CraU shops/studios Table 3: 2010 Nova Scotia Cultural Avtivity Participation Rate Cultural Enthusiasts
- 6. 6 Conclusion As the most traveled generation in history, baby boomers made up a great percentage in U.S. visitors travel to Nova Scotia. Couples aged 50 to 68 who live in New England and Mid-Atlantic of the United States are most likely to visit Nova Scotia in the future. The outstanding natural landscape, variety of outdoor activities, and diversity of cultures in Nova Scotia makes a perfect match to the active and culturally open-minded baby boomers.
- 7. 7 References 1 Lynda J. Sperazza, Priya Banerjee. Baby Boomers & Seniors: A Leisure Value Study. Journal Of Unconventional Parks, Tourism & Recreation Research, 2010. Vol.3, No.1, p.1. 2 Ibid.p.19. 3 Nova Scotia Tourism Agency. Nova Scotia Outdoor Enthusiasts Profile. 2010. p.1-4 [online]. Available at: http://novascotiatourismagency.ca/sites/default/files/page_documents/outdoor_enthusiasts.pdf [Accessed Apr.2014] 4 Nova Scotia Tourism Agency. Nova Scotia Tourism Market Profile: United States. 2010. p.1-4 [online] Available at: http://novascotiatourismagency.ca/sites/default/files/page_documents/market_profile_us.pdf [Accessed Apr.2014] 5 NSTA. United States. 2014. [online] Available at: http://novascotiatourismagency.ca/united-states [Accessed 27 Apr.2014] 6 U.S. Travel Association. Travel Facts and Statistics U.S. Travel Association, 2014. [online] Available at: http://www.ustravel.org/news/press-kit/travel-facts-and-statistics [Accessed Apr.2014] 7 Bank Of Canada. Daily Currency Converter.2011. [online] Available at: http://www.bankofcanada.ca/rates/exchange/daily-converter/ [Accessed May.2014] 8 Government Of Nova Scotia. Nova Scotia Tourism Market Profile: United States. p.1 9 NSTA. United States. 10 Ibid. 11 NSTA. Nova Scotia Visitor Origin. 2013. p.4 [online] Available at: https://novascotiatourismagency.ca/sites/default/files/page_documents/english_visits_jan-_dec.pdf [Accessed 13 Mar.2013] 12 NSTA. United States. 13 Ibid. 14 Ibid. 15 U.S. History website. Baby Boom Generation. 2014.[online] Available at: http://www.u-s- history.com/pages/h2061.html [Accessed May.2014] 16 Ibid. 17 Nova Scotia Tourism Agency. Nova Scotia Cultural Enthusiasts Profile. 2010. p.2 [online].Available at: http://novascotiatourismagency.ca/sites/default/files/page_documents/cultural_enthusiasts.pdf [Accessed May.2014]
- 8. 8 18 Higheredinfor.org. ACS Educational Attainment by Degree-Level and Age Group (American Community Survey). [online] Available at: http://www.higheredinfo.org/dbrowser/index.php?measure=93 [Accessed May.2014] 19 Nova Scotia Department Of Economic And Rural Development And Tourism, (n.d.). 2010 Nova Scotia Visitor Exit Survey. p.10 20 Stageoflife.com. Statistics on Baby Bommers, Empty Nests and Retirement. 2014.[online] Available at: http://www.stageoflife.com/StageRetirement/OtherResources/Statistics_about_Baby_Boomers_and_Retir ement.aspx [Accessed May.2014] 21 Ibid. 22 Ibid. 23 Kim Ross, 13 Truths About Baby Boomer Travel. The Association of Travel Marketing Executives, 2012, p.1-3 [online] Available at: http://www.atme.org/pubs/archives/77_253_1108.cfm [Accessed May 2014]. 24 Los Angeles Times Articles, (2008). Baby boomers spend $3,000 a year on trips, but leave the kids at home. [online] Available at: http://articles.latimes.com/2013/dec/06/news/la-trb-baby-boomers-travel- 20131205 [Accessed May.2014] 25 Ibid. 26 Kevin Williams. Baby Boomers Travel: Get to know the Market. Hotelecutive.com. [online]Available at: http://hotelexecutive.com/business_review/1305/baby-boomer-travel-get-to-know-the-market [Accessed May.2014] 27 Ibid. 28 Ibid. 29 Ibid. 30 Ibid. 31 Kim Ross. 13 Truths About Baby Boomer Travel. 32 Kevin Williams. Baby Boomers Travel: Get to know the Market. 33 Jody Smith. Travel Industry Plus Baby Boomers: A Match Made In Heaven. Seniorlifepage.com. [online] Available at: http://seniorlifepage.com/travel-industry-plus-baby-boomers-match-made-in- heaven.html [Accessed May.2014] 34 Rocketswag.com. Baby Boomers Travel Habits. [online] Available at: http://www.rocketswag.com/retirement/baby-boomer/Baby-Boomers-travel-habits.html [Accessed May.2014] 35 Kevin Williams. Baby Boomers Travel: Get to know the Market.
- 9. 9 36 Ibid. 37 Ibid. 38 Ibid. 39 Babyboomerstraveling.com. Why Are Baby Boomers Important To Tourism. 2014. [online]. http://www.babyboomerstraveling.com/who-are-the-baby-boomers/why-are-baby-boomers-important-to- tourism/ [Accessed May.2014] 40 Babyboomerstraveling.com. What Boomers Need. 2014. [online]. http://www.babyboomerstraveling.com/who-are-the-baby-boomers/what-boomers-need/ [Accessed May.2014] 41 Ibid. 42 Government Of Nova Scotia. Nova Scotia Outdoor Enthusiasts Profile. p.1-4 43 Ibid. 44 Babyboomerstraveling.com. What Boomers Need. 45 Kevin Williams. Baby Boomers Travel: Get to know the Market. 46 NSTA. United States. 47 Babyboomerstraveling.com. What Boomers Need. 48 NovaScotia.com. Nova Scotia’s Culture. [online]Available at: http://www.novascotia.com/explore/culture [Accessed May 2014] 49 Rocketswag.com. Baby Boomers Travel Habits. 50 Nova Scotia Tourism Agency. Nova Scotia Cultural Enthusiasts Profile.