Identifying Two Segmentations

Basics: age & income & specific responsibilities in life matter in the mix of assets in one’s portfolio.

Trader Joe’s is an organic grocery food store that is one of the best known organic food chains. By listening to the consumer and adjusting to the changing consumer market, Trader Joe’s had built a brand equity that is continuously growing. Trader Joe’s faces stiff competition from other large organic food chains therefore must stand out and adapt to the consumers’ needs. Marketing strategies are important to communicate to the consumer more effectively and help target the consumer to their product. Trader Joe’s segments its products by psychographic, behavioral and demographic characteristics

Trader Joe’s is in the broad market of grocery retailers, a market where the top 10 revenue-generating companies accounted for over $360 billion in sales in 2011. This market is saturated with supermarkets (Publix and Kroger), large discount retailers (Wal-Mart and Target), premium retailers (Whole Foods and Fresh Market), warehouse clubs (Costco and Sam’s Club), and “hard discount” retailers (Dollar General). With this large variation in grocer strategies, the market is heavily penetrated and competition is fierce. Supermarkets are continually losing market share in grocery sales (51 percent in 2011 as opposed to 66 percent in 2001) as players like Wal-Mart and Costco continue to generate more revenue. Although the supermarket share is decreasing, the overall grocery market is steadily increasing as the population of the United States increases. People always need to eat, so there will always be a

4. Propose two (2) methods of identifying groups of customers who should receive a discount for a product or service without alienating consumers.

2. Compute a taxpayer’s alternative minimum tax liability and describe the tax characteristics of taxpayers most likely to owe the alternative minimum tax.

Income level (question H16) - “We would like to know in what group your household is. Please select the appropriate number, counting all wages, salaries, pensions and other incomes that come in.” responses range from 1 (lowest income group) to 10 (highest income group).

A. Javier’s current 401(k) plan’s asset allocation does not satisfy his desire for his overall allocation. Javier has a larger percentage of his portfolio invested in Bonds. His desired overall allocation is 35% bonds and 65% stocks.

Groups permissions are managed by the ACL that grants the user the permissions assigned by the ACL to take actions on objects. These permissions can be assigned fixed actions for a given group. For example, a User in the Accounts group could only submit, manage and view data pertaining to the accounts department. Someone in the Sales group also would only be able to view customer information, add or remove products or services from the customer account, etc. Permissions also can be set where there is an all-or-nothing, parameter where a member of a group manages files across multiple ACLs. For example the HR group can manage files associated with all employees from every department. Actions and permissions assigned

I am standing there, one hand around the shoulders of a friend. My other hand, clutching a diploma and a bouquet of pink and white roses. The sun is beaming down on my brunette hair making it appear light and creating a glow off the top of my head. I can see the happiness not only spread across my face in an ear to ear grin but by the way my eyes are squinting so very little. The warm light balancing out the photo reminds me of the summer time that was creeping up on us ever so slowly. Then, I was just a 12-year-old girl with a whole new chapter of her life bout to unfold. Now, I sit looking back on this day, reflecting on all that has changed since I walked out of Newport Heights Elementary School for good.

Category fourteen- Investments: Individuals and families with surplus in their budgets will have the opportunity to invest for retirement or other long-term goals. As debt-free status is achieved, more money can be diverted to this category.

b. Plot the CAL along with a couple of indifference curves for the investor type identified above. c. Use Excel’s solver to maximize the investor’s utility and confirm that you get a 50% allocation in stocks. 3. You can invest in a risky asset with an expected rate of return of 20% per year and a standard deviation of 40% per year or a risk free asset earning 4% per year or a combination of the two. The borrowing rate is 9% per year. a. What is the range of risk aversion for which a client will neither borrow nor lend, that is, for which the allocation to this risky investment is 100%? b. Draw the Capital Allocation Line. Indicate the points corresponding to (i) 50% in the risk-less asset and 50% in the risky asset; and (ii) -50% in the riskless asset and 150% in the risky asset. c. Compute the expected rate of return and standard deviation for (i) and (ii). d. Suppose you have a target risk level of 50% per year. How would you construct a portfolio of the risky and the riskless asset to attain this target level of risk? What is the

habits, age or income; it may be advantageous for Vanguard to pursue these markets after conducting market tests or investment studies.

Assume that one of Philip’s clients is a married man, aged 36 with two young children, who wishes to reallocate a significant portion of his retirement funds that are currently invested in certificates of deposit. Philip recommends a growth investment, and he identifies the three representative possibilities shown in Table A.

By focusing on the different segments economists can determine if underlying trends support the headline numbers in total or have possibly skewed the overall numbers.

Marketing of income-sensitive goods has to take into consideration the shifts in personal income and savings habits.