Kiki targets consumers within the niche market of nine to fourteen year old girls (tweens) who
want a glossy, sophisticated, fashion forward magazine with design based content. This is a
specialized market and one that is different than the norm in the magazine industry. Most tween
magazines carry content related to relationship/dating, celebrities, and beauty. In order to
successfully evaluate their magazine's market potential, Kiki must execute proper market
research by collecting secondary data and primary data such as open-ended questionnaires
and focus groups; while developing a long-term strategic plan that addresses their constant
need to revive their customer base due to their aging out of the tween market.
In order to capture any target market, regardless of the industry, it is essential to have relatively
strong and reliable market research. Without this, companies can greatly misread their
consumer's demand and risk major losses or worse, be forced to shut down. Kiki's main
marketing research strategy should utilize both secondary and primary data. Secondary data is
data that is previously collected by government departments, private agencies, industry
associations, etc. and published for public use. This can include articles describing trends in
selected markets, annual industry and company reports, studies of the economy and so forth.
Kiki can benefit from using pre-existing data such as the data provided by the U.S. Census
Bureau. For instance, Kiki can use the figures of total population of female 9-14 year olds in the
U.S. to determine the size of their targeted market. Kiki could collect this data themselves,
however it saves a great deal of time, money, and other resources if Kiki just relies on what has
already been researched. Other useful secondary data includes industry data of the existing
market share of Kiki versus its competitors in the tween magazine industry. In addition, Kiki can
use tween spending reports to predict how profitable the magazine industry can be if they can
increase their market share. Kiki can also refer to their competitor's annual reports to see how
much revenue is brought in by advertising, something that Kiki is not currently participating in.
By using the data such as the population figures, the profit margins of the industry and
competitors, and trends in tween spending, Kiki can then assess the profit potential for their
segmented market
It is important to begin market research by collecting as much relevant and useful secondary
data about the target market as possible. Kiki can then identify what data that is readily
available for them and consequently what information their analysis is lacking. This missing
information in their assessment can then be collected by primary data. Primary data is
information that is gathered by Kiki for the first time with the main purpose of answering a
specific question that secondary data cannot answer. For example, after looking at the
demographics of the 9-14 year old market, Kiki needs to know what their needs and wants are.
The best way for Kiki to obtain this detailed information is to engage in exploratory work
involving open-ended surveys and focus groups.
In order to explain why exploratory research is better suited for Kiki's market than conclusive
research, let's first look at the latter. Conclusive work usually involves a random and large
sample that is evaluated by closed-ended questions executed mostly in impersonal settings like
a mail or web-based survey. Kiki's market is very specialized meaning that if a random sample
of 9 to 14 year old girls was used, it is not guarantee that most of the respondents would even
be in Kiki's target market. Instead, Kiki needs to ensemble a non-random sample and pick girls
who would be interested in a fashion designed based magazine to start with. It is also
necessary for Kiki to conduct in-person surveys/interviews in order to really engage their clients,
who are children. It is not realistic to expect most children, who can naturally be impatient and
shy, to be completely expressive while participating in a web based, telephone, or mail survey.
However, if there was a live person interacting with them directly and following up their
questions, they will more likely answer truthfully and specifically. One specific way that Kiki can
put this into practice is to conduct short interviews at popular hangout spots for female tweens
such as the local mall. Prior to the actual interviews, Kiki's market researchers can build a set of
open-ended questions targeted to gauge what tweens want to see in a designed based
magazine and their interest and likelihood of subscribing to Kiki magazine. While interviewing
the girls, the researchers can choose the more talkative and open respondents to be involved in
a focus group, with paid compensation for their time. In the focus group, a moderator can guide
the discussion and specifically ask questions that filled in the remaining gaps. When evaluating
market potential, Kiki must dig up as much information and details as possible, try to make
connections, and then illustrate a marketing plan that directly address the needs and wants of
their target segment.
Once the market segment is fully researched to the best of Kiki's ability, it is then required to
assess the volatility of their consumers demographic. Even if Kiki establishes a solid loyal
consumer base among their targeted age group, 9 to 14 years old, those same consumers will
eventually outgrow the market and therefore will stop purchasing the product. In response to
this, Kiki must make a continuous effort to attract more 9 year olds to start reading Kiki
magazine. One way that Kiki can tackle this challenge is by giving free issues of Kiki's magazine
to elementary schools. Therefore, copies of the magazine will be stocked in 3rd and 4th grade
classrooms and be ready for next year's class of new students. Other than constantly having to
re-establish your customer base, another challenge is dealing with the tweens fickle tastes. A 9
year old in 2006 will most likely have different tastes than a 9 year old in 2012. Kiki's marketing
research has to keep up with the changing needs and wants of this targeted segment. This
requires a consistent investment of time and money into research every five to ten years. If Kiki
does have the resources available to gather this primary day, they can then lose out on
understanding their market and thus missing out of their market potential.
Kiki's magazine expects a profit in year 5 with a circulation of 30,000 magazines. There is a
great reliance on circulation revenue due to Kiki's refusal to incorporate advertising in their
magazine, a tactic that many of their competitors use to generate 55 of their revenue. This
translates into more pressure to capture a substantial market share of their niche market in
order to survive and profit. However, if their marketing research strategy helps them recognize
the needs and wants of their niche market, they can accomplish their objectives. Understanding
their customer's wants and needs will allow Kiki to create a product that the customers will value
and that is the most important tool they have to achieve their market potential.
Purchase answer to see full
attachment