Question

There are many factors that have altered the basic structure and characteristics of households. One of factors which is smaller families. Identify at least two marketing implications. Please use real marketing examples in Australia and Indonesia to illustrate, as well as provide statistics in both countries.

Answer 1

2 marketing implications of emergence of smaller and nuclear families are as follows:

• The focus shift from big joint family packs and refills to smaller buddy packs: Earlier companies used to promote offers and benefits of large family packs, focusing on joint family usage. But now, the families are getting condensed and nuclear. Their consumption rate is also decreasing proportionately. So now the marketing teams need to promote small refills and buddy packs instead of the large family ones.
• The preference of differentiated products: Earlier families were quite large. Their consumption was large and hence a generic product was bought for everyone. With the shift to nuclear families, the family consumption has decreased and they have purchase capacity to fulfill the specific needs of their family members. Hence there is a high need of revision of the marketing strategy, focusing on product differentiation and highlighting the specific need fulfillment of different family members.