Market Analysis Demographic and Social Culture Factors

Question: Discuss about theMarket Analysisfor Demographic and Social Culture Factors. Answer: Introduction There are several demographic factors that can affect the growth of a business. Demographic features can be used to determine the consumer behaviors and also preferences. The demographic features help in identifying potential customers in an area. Locating a business in an area with customers with similar demographic features will help in maximizing profits and kicking off a business enterprise. The demographic variables that will affect the restaurant business include income distribution, age structure, and population size and population growth rate. The income level affects the purchasing power of the customers. Each and every product appeals to people of certain income bracket. In my case moving the Heritage Village resort to Germany will allow the restaurant to offer high class services to the customers whom majority belong to the middle class and upper class hence have more disposable income which is a great opportunity to the business. Age structure is an important aspect to consider in a business enterprise. What may appeal to one age group may not appeal to another hence then need to note the age bracket so that one can be able to offer services that meet the demand(Casey 2012:38). In Germany 40% of people are between the ages of 25-54 years which implies that moving the restaurant there will be an opportunity to our business to offer more of organic products that appeal to this age group who are health conscious as it can even be seen by the life expectancy of 80 years (Index Mundi 2016). Some of the social cultural factors that will affect my business include language, social greeting, individual versus group goals and non-verbal communication. Moving the business to Germany will mean that interacting with people from a different culture from mine will be a challenge to the business. Getting to understand the culture of the community will take time which will affect the business. The other thing that will affect the restaurant is social greetings and non-verbal communication which are very important in the hospitality industry. The industry requires good customer relations especially at the points of contact to ensure customers feel much welcomed and they will be more than willing to try our services. References Casey, F. (2012). Consumer bahavior: Where do we stand? a marketing management appraisal. On Knowing the Consumer / Edited by Joseph W. Newman.p.38 https://www.coursera.org/learn/market-research/lecture/9RewC/1-1-why-is-consumer-behavior-important-in-the-marketing-process-framework Indexmundi.com. (2016). Germany Age structure - Demographics. [online] Available at: https://www.indexmundi.com/germany/age_structure.html [Accessed 14 Nov. 2016].