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Page 1: Chapter 4 - Market Segments (826Kb)

R

CHAPTER 4:MARKET SEGMENTS

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As the analysis proceeded,patterns emerged showing

that people whoparticipate in one type of

recreation very oftenparticipate in other,

related activities. Theseshared participation

patterns defined the sevenmarket segments described

in this chapter:

1. The Sports Hogs

2. The Fitness Buffs

3. Nature Lovers

4. Fishin’ and Huntin’ Avids

5. The Bass Club

6. The Passives

7. The Do Nothings

People vary widely in the outdoor activitiesthey pursue. Some like high energy,adventure recreation, while others prefer tostroll or sightsee and learn. One of the mostimportant results of the NSRE is the divisionof the U.S. population into groups withsimilar outdoor recreation interests. Thesegroups or market segments are meaningfulfor marketing outdoor recreation servicesand equipment, for the human poweredrecreation industry as well as outdoorrecreation in general.

The market segment analysis identifiedhigher-than-average and lower-than-averageparticipation rates across the variousrecreation activities. As the analysisproceeded, patterns emerged showing thatpeople who participate in one type ofrecreation often participate in other, relatedactivities.

Each market segment represents tens ofmillions of people, and the participationpatterns of each are distinctive (table 4.1). The identified patterns suggest that people inthe different segments are seeking differentkinds of experiences. Different kinds ofexperiences indicate a need for differentmarketing approaches. Individuals may bemembers of more than one segment,however, indicating multiple interest andmotivations for outdoor recreation.

For manufacturers and suppliers of humanpowered outdoor recreation equipment andservices, it is easy to imagine humanpowered outdoor recreation as a marketsegment of its own. The analysis describedhere, however, indicates that humanpowered activities may belong in a numberof market segments. Such information canhelp the industry to design information to

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The 10 most popularactivities for Sports Hogs and

the percentage of SportsHogs participating in each

activity:

R

Activity

Attending Sporting EventsWalkingPool SwimmingOther SwimmingVisit a Historic SiteRunning/JoggingVolleyballBasketballMotorboatingBiking

Percentage

86.480.580.276.665.162.962.260.856.554.3

16-24

25-39

40-54

Over 54

Less than $15,000

$15,000-24,999

$25,000-49,000

$50,000-74,999

Over $75,000

0% 20% 40% 60% 80% 100%

Figure 4.1–Income and age distribution forSports Hogs.

appeal to different dimensions of the humanpowered outdoor recreationist’s experience.

The Sports Hogs

About 19.6 million of Americans over age 16(9.8 percent of that population) are SportsHogs. This group is characterized by highparticipation in individual sports, teamsports, winter sports, horseback riding,boating of all kinds, outdoor swimming,snorkeling, and watching outdoor sportingevents and concerts.

Walking, picnicking, gathering outdoors withfamily and friends, sightseeing, and visitingbeaches are also popular activities for SportsHogs.

Two thirds of Sports Hogs are male, and 88percent of them are less than 40 years old. About 12 percent are minority groupmembers. Educational level is about theaverage for Americans over age 15, andincome is near the average. Nearly half ofSports Hogs are in households with four ormore members. That figure is considerablyhigher than for other groups. In keepingwith their active lifestyle, an unusually highpercentage of Sports Hog households havethree or more cars.

NSRE respondents were asked whether theywere constrained from participating in theiractivities. Those who felt constrained wereasked additional questions. Results aresummarized in table 4.2. For all marketsegments, the leading constraints are notenough time and not enough money. Elevenpercent of Sports Hogs felt constrained. Given their high levels of activity, this lowpercentage is not surprising. Crowded

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The 10 most popularactivities for Fitness Buffs

and the percentage of FitnessBuffs participating in each

activity:

16-24

25-39

40-54

Over 54

Less than $15,000

$15,000-24,999

$25,000-49,000

$50,000-74,999

Over $75,000

0% 20% 40% 60% 80% 100%

Figure 4.2–Income and age distribution forFitness Buffs.

Activity

WalkingVisiting a Nature CenterVisiting a Historic SitePool SwimmingAttending Sporting EventsSwimming in Natural WatersVisiting a Visitor CenterAttending Outdoor ConcertsBikingHiking

Percentage

88.876.775.569.967.767.059.858.257.254.6

activity areas, inadequate information, and alack of people to do activities with werefrequently mentioned as constraints bySports Hogs.

Many sporting goods manufacturers willrecognize Sports Hogs as one of theirprimary markets. Sports Hogs appear to beinterested in personal challenge and skilldevelopment. For this group, humanpowered activities are not necessarily nature-based, although they are outdoor activities. Sports Hogs not only want to be activeparticipants in outdoor recreation, theyappear to enjoy watching others excel inpersonal and team accomplishments. Theiractivities are often socially-oriented,suggesting that getting together with othersis an important part of their overallexperience. This group represents a specialsubset of the human powered market, withdistinctively different expectations andmotivations than other types of humanpowered recreationists. Less than 10 percentof the U.S. population accounts for such alarge percentage of outdoor recreationactivity and a high percentage of thepurchases of recreation goods and services. A challenge to manufacturers and supplierswill be to develop strategies to increase thesize of this group, because doing so wouldmarkedly increase sporting goods andoutdoor equipment markets.

The Fitness Buffs

About 10.9 percent of Americans over age15 (some 21.8 million people) areenthusiastic participants in fitness activities. These activities include running, biking,walking, hiking, and swimming. MostFitness Buffs do not hunt or view wildlife,

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Relatively high incomespermit Fitness Buffs topurchase the equipment

and clothing that aresometimes necessary.

and few of them participate in human-powered boating.

High interest in nature centers, historic sites,and visitor centers suggests that FitnessBuffs are people who are interested in theworld around them as well as in theirpersonal fitness. Fitness Buffs representanother subset of the human poweredoutdoor recreation market. They are welleducated and interested in learning. UnlikeSports Hogs, they are not particularlyoriented toward social activities. Theiroutdoor recreation participation appears tobe aimed less at winning and more at healthand fitness. Overall, they appear to beinterested in personal improvement. Thus,their involvement in human powered outdoorrecreation is motivated by different needsand interests than other human poweredenthusiasts.

In comparison with Sports Hogs, FitnessBuffs are often older. More than a fifth are40 to 54 years old, and nearly 10 percent areover 54 years old. Eleven percent of FitnessBuffs are minority group members, andslightly more than half are women. Theproportion of women in this group is aboutthe same as for the U.S. population as awhole. Over 70 percent of Fitness Buffshave attended at least some college, and 42percent are college graduates. Familyincomes are above average. The proportionliving in households with four or morepeople is also above average.

Twelve percent of Fitness Buffs reported aconstraint on their recreation activity. Forthose who felt constrained, the leadingcauses were insufficient time and money. Lack of someone to do activities with wasanother major constraint.

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The 10 most popularactivities for Nature Lovers

and the percentage of NatureLovers participating in each

activity:

16-24

25-39

40-54

Over 54

Less than $15,000

$15,000-24,999

$25,000-49,000

$50,000-74,999

Over $75,000

0% 20% 40% 60% 80% 100%

Figure 4.3–Income and age distribution forNature Lovers.

Activity

WalkingVisiting a Historic SiteVisiting a Nature CenterWildlife ViewingBirdwatchingVisiting a Visitor CenterWater-based Nature StudyAttending Sporting EventsPool SwimmingAttending Concerts

Percentage

91.281.780.976.473.671.364.658.056.151.9

Like Sports Hogs, Fitness Buffs veryfrequently participate in a wide range ofrecreation activities. Relatively high incomespermit Fitness Buffs to purchase theequipment and clothing that are sometimesnecessary.

Nature Lovers

About 26.6 million Americans–13.3 percentof the people over age 15–are NatureLovers. Nature Lovers participate inwalking, birdwatching, wildlife and fishviewing, nature study, sightseeing, and goingto visitor centers. Nature Lovers seldomhunt or fish.

Nature Lovers also represent marketingopportunities for the human poweredoutdoor recreation industry. Although theydo not participate in rugged or challenginghuman powered activities, their interest innature and the outdoors means that they mayneed outdoor recreation equipment toenhance their learning about and enjoymentof nature. Over 9 of 10 Nature Lovers arewalkers, and they participate often inviewing activities. Thus, they may representan excellent market for outdoor footwearand apparel, as well as educational supportgear, such as cameras, binoculars, andeducational information.

Most Nature Lovers are over age 54. Almost 13 percent are minority groupmembers, and nearly two-thirds are female. Forty five percent have completed collegeand another 30 percent have attended or areattending college. Household incomes ofmembers of this group are above average. Abelow-average proportion of people in thisgroup live in households with four or more

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The 10 most popularactivities for the Fishin’ and

Huntin’ Avids and thepercentage of Fishin’ and

Huntin’ Avids participatingin each activity:

16-24

25-39

40-54

Over 54

Less than $15,000

$15,000-24,999

$25,000-49,000

$50,000-74,999

Over $75,000

0% 20% 40% 60% 80% 100%

Figure 4.4–Income and age distribution forFishin’ and Huntin’ Avids.

Activity

WalkingVisiting a Nature CenterVisiting a Historic SiteWildlife ViewingFreshwater FishingVisiting a Vistor CenterSwimming in Natural WatersWater-based Nature StudyAttending Sporting EventsWarmwater Fishing

Percentage

89.584.582.880.777.574.573.070.469.765.4

members, and an unusually high percentageare in households with just two members.

A high proportion of Nature Lovers feelconstrained in pursuing their favoriteactivities. In addition to insufficient time andmoney, they are often constrained by lack ofa person to do activities with, inadequateinformation, crowding of activity areas,concerns about personal safety, andperceived pollution problems.

High levels of participation suggest a greatdeal of interest in nature and nature-basedactivities. High education levels suggest thatmaterials written for people in this group canbe directed at a high technical level. Highincomes and small size households suggestan ability to pay for experiences, equipment,and services.

Fishin’ and Huntin’ Avids

About 8.2 percent of Americans over age 15 (16.4 million people) are what we call the“Fishin’ and Huntin’ Avids.” This group isamong the most active of market segmentsacross all types of outdoor recreation. Wecall them Fishin’ and Huntin’ Avids becausethey are so very avid in all forms of outdoorrecreation and because they have the highestrates of participation in hunting and fishingcombined. But in addition to hunting andfishing, these people do a lot of camping,group activities, walking, and hiking.

Rates of hunting participation for membersof this group are 30 percent for big game and23.5 percent for small game. These are thehighest rates among all of the marketsegments, but they still represent well underhalf of the group members. Thus, hunterscould be regarded as a separate market

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The 10 most popularactivities for the Bass Cluband the percentage of theBass Club participating in

each activity:

Activity

Freshwater FishingWalkingWarmwater FishingColdwater FishingAttending Sporting EventsPool SwimmingSwimming in Natural WatersVisiting a Nature CenterMotorboatingVisiting a Historic Site

Percentage

80.674.869.669.654.145.543.340.638.436.3

16-24

25-39

40-54

Over 54

Less than $15,000

$15,000-24,999

$25,000-49,000

$50,000-74,999

Over $75,000

0% 20% 40% 60% 80% 100%

Figure 4.5–Income and age distribution forthe Bass Club.

within this group. They are included becauseso many enjoy fishing as well as hunting.Fishin’ and Huntin’ Avids may also be ofsome interest to the human powered outdoorrecreation industry. Although they do notappear to be particularly interested in humanperformance activities, they still participatein some human powered activities. Forexample, almost 90 percent of them arewalkers. They may not be interested inpurchasing specialized human poweredrecreation equipment, but they still representa subset of the human powered market.

The distribution of Fishin’ and Huntin’ Avidsis weighted toward middle-aged Caucasianmales. Few people in this group are under25 or over 55. Only 6 percent of the Avidsare in minority groups. Fifty-eight percentare male. Education levels for members ofthis group are near the national averages. Ahigh proportion of Avids are in householdswith just two people over age 15. Thenumber of Avids in households with three ormore cars is above average.

In addition to a love for freshwater fishing, itappears that members of this group share aninterest in nature. That interest, however, issomewhat different from the interest of theNature Lovers. The interest here leans moretoward use and consumption of wildlife andfish rather than toward viewing and learning.

Only 13 percent of the members of thisgroup reported a constraint on participationin their favorite activities. For those whoreported a constraint, an unusually highproportion (93 percent) cited a lack of timeas a constraint. As in other groups, manyalso cited a lack of money. Other frequentlymentioned constraints were no one to doactivities with, crowded activity areas,

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The 10 most popularactivities for the Passives and

the percentage of theirparticipation in each activity

are:

Activity

WalkingAttending Sporting EventsPool SwimmingVisiting a Nature CenterVisiting a Historic SiteAttending a ConcertNonpool SwimmingRunning/JoggingBikingBirdwatching

Percentage

82.547.941.938.531.429.827.326.623.320.9

16-24

25-39

40-54

Over 54

Less than $15,000

$15,000-24,999

$25,000-49,000

$50,000-74,999

Over $75,000

0% 20% 40% 60% 80% 100%

Figure 4.6–Income and age distribution forthe Passives.

inadequate information, and pollutionproblems.

The Bass Club

People in the Bass Club are primarilyanglers. About 13.0 percent of Americansover age 15 (some 26.0 million people)make up the Bass Club. About 12 percentare minority group members, and 35 percentare female. Numbers of Bass Club memberswho have attended college are belowaverage. Their family incomes are alsobelow average. Households of various sizesare well represented. Some 47 percent ofhouseholds have two cars.

The separate identity of Bass Club membersfrom the Fishin’ and Huntin’ Avids indicatesa different pattern of activity participation.Freshwater fishing is enjoyed by members ofboth groups. Bass Club members, however,participate more in warmwater fishing andmotorboating than in other activities.

About 12 percent of Bass Club membersmentioned a constraint on activityparticipation. Almost a third of those whomentioned a constraint said they lackedactivity companions. Crowding of activityareas also was often mentioned.

The Passives

Almost 44 million Americans over age 15(21.9 percent) do not participate in activeoutdoor pursuits. They go outdoors tosightsee, visit beaches, picnic, get togetherwith family and friends, and walk. But theyseldom engage in more vigorous pursuits.

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The 10 most popularactivities for the Do Nothingsand the percentage of the Do

Nothings participating ineach activity:

Activity

Walking.........................................Attending Sporting Events.........Running/Jogging..........................Birdwatching................................Freshwater Fishing.....................Pool Swimming..............................Biking............................................Golf...............................................Visiting a Nature Center............Wildlife Viewing..........................

8.02.92.42.12.02.01.51.51.41.4

Percentage

16-24

25-39

40-54

Over 54

Less than $15,000

$15,000-24,999

$25,000-49,000

$50,000-74,999

Over $75,000

0% 20% 40% 60% 80% 100%

Figure 4.7–Income and age distribution forthe Do Nothings.

As one might expect, a lot of people whoprefer passive pursuits are over 54 years old. A surprising 17 percent, however, are 16-24years old. One would expect people in thatage group to be more active in theirrecreation. The 24 percent minority groupmembers among Passives is quite high. Andthe 57 percent females in this group issomewhat higher than the 52 percent for thepopulation as a whole. Education levels andincome levels are a little below those for themore active groups.

Since they are relatively inactive, theconstraints on recreating for this group areof some interest. Some 19 percentmentioned personal health problems as aconstraint on their activities. Thirty-twopercent said they lacked an activitycompanion. Crowding of activity areas andinadequate information also were oftenmentioned as problems.

The Do Nothings

This is the largest of the identified groups. Itincludes about 22.8 percent of Americansover age 15 (some 45.7 million people).

The extremely low participation rates showthat these people seldom recreate outdoors. About half of Do Nothings are over 54 yearsold. A fourth are minority group members,and 60 percent are female. Education levelsand family incomes are far below average. As one might expect with so many peopleover age 50, households with one or twomembers predominate.

Numbers of cars are clearly lower than forother groups. It is probable that low incomeand advancing age restrict the recreationalactivity of many Do Nothings.

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Reducing safety concernsprobably would increase the

amounts of recreation activity byminorities, women, and allpeople over 50 years old.

These conclusions are supported by theconstraints mentioned by members of thisgroup. Only a little over half mentioned alack of time as a constraint, while a relativelyhigh 44 percent mentioned a lack of money. Thirty-five percent said that personal healthproblems limited their activities, and 18percent cited a physically limiting condition.Twenty eight percent said they had no onewith which to do activities.

Constraints Are Opportunities

To some extent, people may have listedconstraints on their activities to provideexcuses for not being as active as theythought they should be. In a large measure,however, the listed constraints presentopportunities for outdoor recreationsuppliers and supporters.

An important constraint for people in allseven market sectors is a lack of activitycompanions. This suggests that peoplemight be attracted to recreate by providingcompatible groups for them to join, or byfinding ways to promote companionship andsocializing at facilities or through othermeans.

Inadequate information was a fairly commoncomplaint. Within outdoor recreation, it ispossible that adequate information has been

compiled but that systems for distributing theinformation often fail.

Concerns about personal safety were oftenexpressed by Nature Lovers, who arepredominantly female, and Do Nothings,who are predominantly over 50 years old andmany of whom are minority group members. Reducing these concerns probably wouldincrease the amounts of recreation activity byminority group members, women of all ages,and men and women over 50 years old.

Human Powered MarketingOpportunities

This analysis identified seven distinct groupsof outdoor recreationists. For the humanpowered outdoor recreation industry, thissegmentation demonstrates that the humanpowered outdoor recreation market is morediverse than it might first appear. SportsHogs and Fitness Buffs, for example, areboth avid participants in human poweredoutdoor recreation. However, theirmotivations, expectations, and thesatisfaction they derive from participationappears to be very different. Suchdifferences suggest that marketing to thehuman powered outdoor recreation marketcould be designed for those other factors,and should not focus singularly on humanpowered equipment or services.

The human powered outdoor recreationindustry may want to consider these points:

1. Sports Hogs and fitness Buffs represent alarge proportion of the human poweredmarket. Marketing to them, however,should be designed to meet differentneeds:

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Sports Hogs are interested incompetition, winning, and excitingchallenge. They enjoy recreating ingroups, and participate in a wide array ofchallenging activities, many of which arenot nature-oriented or human powered. They also enjoy watching othersparticipate in challenging sporting events. They can be reached through spectatorsporting events, sporting enthusiastpublications, and other sources ofchallenging sports information or action. They are interested in either team orindividual challenges, with an emphasison competition, winning, and mastery. Marketing human powered equipment tosports Hogs should focus on theseexperiences, rather than on personalfitness, skill development, or being in theout-of-doors.

Fitness Buffs are interested in personalhealth and individual accomplishment. They are more likely to hear messagesaimed at the promotion of physical andmental health, including the emotionalbenefits of nature-oriented activities, thereduction of stress, and overallimprovement in individual well-being. They are not as likely to be lured bysocially-oriented messages. They mayparticipate in some of the same activitiesas Sports Hogs, but the expression oftheir participation is radically different. They are interested in learning and aremore likely than sports Hogs to payattention to educational or technicalinformation regarding their individualactivity interests. Marketing to FitnessBuffs should include technicalinformation and should highlight thepersonal benefits of specializedequipment, participation, and knowledge.

2. When marketing to Fitness Buffs, thealmost equal participation of men andwomen should be noted. In addition,Fitness Buffs tend to have relatively highincomes, and therefore are better able toafford specialized equipment to enhancepersonal achievement and the attainmentof better personal health. Fitness Buffsmay be interested in a range of humanpowered activities, since these activitiesare the ones most able to promotephysical health.

3. Nature Lovers, Fishin’ and Huntin’Avids, Bass Club members, and Passivesare all likely to participate in lessphysically challenging human poweredoutdoor recreation, such as walking,recreational swimming, and wildlifeviewing. They are consumers ofequipment that supports these activities,such as outdoor footwear, foul weatherwear, other outdoor apparel, andequipment such as binoculars andcameras. They are not driven by thesame needs for excitement or physicalimprovement as Sports Hogs or FitnessBuffs, and therefore will not respond tothe same marketing messages. Marketing to these groups should focuson outdoor comfort and practicality ofuse during their outdoor activities.

4. Many Passives are women andminorities. Therefore, at least some ofthe marketing of human poweredequipment and supplies should bedesigned to appeal to these groups. Because both of these groups frequentlymentioned issues of safety as constraintsto participation, addressing issues ofpersonal safety during participation mayencourage greater participation in human

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powered activities, and therefore anincrease in consumption of equipmentand apparel.

5. As the baby boomers age, we can expectinterest in health and fitness activities togrow. These aging baby boomersrepresent an opportunity for the humanpowered outdoor recreation industry toincrease its market share by promotingthe mental and physical health benefits ofa variety of human powered activitiesthat are rugged enough to be health promoting, but not too challenging forolder adults. As technology improves human powered equipment, the fitnessbenefits of a wider array of activities willbecome available to aging Americans.

6. Increasing environmental awareness willhelp make human powered activitiesmore attractive to a larger market share. The environmentally-friendly character ofhuman powered activities can be used tomarket these activities to Nature Loversin particular, but also to other concernedmarket segments, such as Passives andsome Bass Club members.