Marketing Management bu

DTS mainly targeting Gen Z in North America who are between 10 and 25 years old. As the newest generation who are born between 1997 and 2012, it is a notable group with nearly 68 million people in the US (figure 1), compared with Gen Y of 72 million and Gen X of 65million (Kasasa,2021). Given that the youngest of this generation is still a teenager at school while the oldest one has already entered the real world, it is reasonable to split them into two segments. Segment A is for the teens that still depend on their parents for expenditures who are more interested in affordable small items. Their purchasing power is relatively low but would like to spend a lot of time on the videos and gaming inside the app. Segment B is made up of Gen Z that are independent and are willing to pay more for stylish brand name products.

Compare the two segments above, Segment A has a larger base size while Segment B has brought more profits for the company. Although the purchasing power for Segment A is lower, they spend more time on DTS and bring more traffic to this app. Thus, we decide to focus more on Segment A to attract more consumers and encourage current consumers to spend even more time on DTS while holding the attraction for older teens in Segment B.

To attract the targeted young customers, DTS markets itself as an interactive online shopping platform that provides useful products and entertainment. There are already many online shopping tycoons which have varied products with a huge customer base. It is hard for DTS to compete with them in terms of product range, however, DTS can utilize its characteristic of entertaining and socializing to stand out from the crowd. In this way, DTS is able to attract and retain customers and leads to an increase in the company's sales revenue finally.