Companies missing the mark with female consumers

Despite the fact that women consumers represent a bigger market than China and India put together, companies are doing a poor job of serving them, according to a new report in the Harvard Business Journal.

Women control about $20 trillion in annual consumer spending and the figure could rise to $28 trillion dollars in the next five years, according to authors Michael Silverstein and Kate Sayre. Women’s $13 trillion in total annual aggregate income could clip to $18 trillion in the same period. "Women represent a growth market bigger than China and India combined — more than twice as big, in fact,” the authors write. "Given those numbers it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that, even ones that are confident they have a winning strategy when it comes to women.”

Silverstein and Sayre say that despite women’s dominant buying power, many companies "continue to market mostly to men and fail to explore how they might meet women’s needs. Companies that offer tailored products and services – going beyond ‘make it pink’ – will be positioned to win when the economy begins to recover.”

Fast trackers and empty nesters

The article identifies six female consumer archetypes useful for marketing purposes: Fast-Tracker, comprised of the economic and educational elite; Pressure Cooker, married multi-taskers with children; Relationship Focused, single and married women without children; Managing On Her Own, divorced and widowed women; Fulfilled Empty Nesters, older women largely ignored by marketers; and Making Ends Meet, women with little or no disposable income. Each group has different needs and motivations. Fast Trackers seek adventure and learning, while Relationship Focused women focus on experiences instead of products. Women in the Making Ends Meet segment look for credit, value and small luxuries.

Food is one of the six industries where companies have the greatest opportunities to target female consumers, the authors report. "Women are responsible for the lion’s share of grocery shopping and meals preparation. Food is also one of consumers’ most important budget items one that can be adjusted but never eliminated.” The report cites two grocery chains that have succeeded in targeting female sub-groups. Tesco stores, which offer a wide range of household items, including books furniture and financial services, "appeal to time-strapped Pressure Cookers, who desire convenience. Whole Foods has succeeded by attracting demanding but prosperous Fast Trackers who want top quality meats and produce and a knowledgeable staff.

Another key category is health and beauty, where the authors cite Procter & Gamble’s successful Oil of Olay line, which has 40 percent household penetration in the U.S. P&G’s Oil of Olay Regenerist Daily Regenerating Serum is typical of a new wave of beauty products that have helped expand the segment to $20 billion in annual sales.