The Generation Z target group and the second one can be segmented by gender and race. In the first case, the male population overtakes the female one (51% against 49%), and it does not appear that the percentages will change. As far as the racial distribution is concerned, the White and Hispanic demographics seem to prevail, and the latter is increasing at the former’s expense. All segments may have low buyer power due to relying on parents’ money. The competition is tough, considering the number of clothing brands aimed at teens, although most seem to prioritize the female population. Consequently, the threats of substitution and new entry are also high, although they are more significant for the young women segment. The company’s main supplies are from developing countries, and their number is over 300. It would probably be easy to interchange between them and employ cheaper alternatives, so their power is weak. Altogether, the best strategy fit is to focus on teenage boys’ clothing regardless of race.
The primary target’s profile – Generation Z, male, any race, mainly middle-class. The secondary target’s profile – Generation Z, female, any race, mainly middle-class. The tertiary target’s profile – 13-14 years old, male, of any race, mainly middle-class. Other priorities – 13-14 years old, female, any race, mainly middle-class; both age demographics of the two genders, all races, low-income communities; the remaining generations, including Millennials and Generation X. The abandoned groups – high-income communities of all ages and Baby Boomers.
The company will follow a differentiated strategy in a way that it will design products for the highlighted target groups and may temporarily ignore other demographics. Based on Generation Z’s preferences, the marketing will occur primarily online in collaboration with social media and influencers that can incite them to buy clothes. As they are not brand loyal, the emphasis will be on retaining particular personalities to continue promoting the company’s production. Altogether, the approach will consider the target groups’ specifics and the profitability of appealing to them.