Teenage consumers - Understanding the teenage market segments

Table of Contents

CHAPTER 1 INTRODUCTION 6

• What is this report about? 6
• Who is the target reader? 6
• How to use this report 7

CHAPTER 2 YOUTH STRATEGIES 8

• Customer-centric marketing 8
• Segmenting youth 9

CHAPTER 3 MARKET CONTEXT 11

• The number of teenagers in Europe 11
• Discretionary funds 13
• Teenagers and tweenagers 16
• Sources of income (tweens only) 19

CHAPTER 4 TEENAGE NEEDS 21

• Basic tweenage needs 21
• Aspirational ages 22
• Developmental compression 23
• Marketing awareness and media saturation 24
• Changing social structures 25
• Independence parenting 26

CHAPTER 5 APPEALING TO YOUNGSTERS 27

• Teenage switching 27
• A model for marketing to tweens 28
• Primary guidelines 29
• Best Practice 30
  • A brief background to Axion 30
  • Much of Axion's success stems from its excellence in branding 31
  • Innovative product offerings? �Eot quite! 37
  • Axion's distribution strategy benefits from Dexia's coverage 38
  • Others have tried to emulate Axion's success 38
  • Future direction: more of the same but with greater reach 41
  • What lessons should be learnt from Axion? 41

CHAPTER 6 APPENDIX 43

• Further reading 43
• Do you need further information? 44
• Datamonitor financial services consulting 44
• FS writing team 45

List of Tables

• Table 1: Teenagers as a percentage of the total population, by country in Western Europe, 1997-2007 13
• Table 2: Funds managed by Western European teenagers in a discretionary fashion, by country, 2002-2007 15
• Table 3: 14-to-17 year olds as a proportion of all teenagers in Western Europe by country, 1997-2003 17
• Table 4: Annual teenage income by age subsegment, 2002-2007 18
• Table 5: Tweens�Esources of discretionary income (per week), 1997-2002 19

List of Figures

• Figure 1: Groups in the youth market 9
• Figure 2: Number of teenagers in Western European countries descends, 1997-2007 11
• Figure 3: Teenagers become a smaller segment of the total population, 1997-2003 12
• Figure 4: Yearly per capita teenage income in Western Europe by country, 2002-2007 14
• Figure 5: Differences of discretionary funds with age, 2002 16
• Figure 6: 14-to-17 year olds hold about two-thirds of teenage income, 2002 17
• Figure 7: Pocket money makes up 60% of tween income, 2003 19
• Figure 8: US youths and their aspirational ages 23
• Figure 10: Model of product design and age targeting 28
• Figure 11: In addition to standard banking product, Axion offers a number of extra-banking-services online, April 2003 34
• Figure 12: Dexia's Axion: more fun than banking, 2003 36
• Figure 14: Other Belgian retail banks have attempted to emulate Axion's success by introducing their own youth offerings, 2003 40