Strategy

As can be seen from the diagram, the majority of our market is on average greater than 30% in selected areas in Canada. This diagram also enables us to have a better understanding of the geographic segmentation. Canada's population density is very low in comparison with other industrialized countries, but it is relatively concentrated in urban areas. This notable pattern, from exhibit 6, shows the higher proportion of people in their early working years in the urban areas, centered around the country's 27 Census Metropolitan Areas. The needs and preferences of our consumers are similar regardless of what region of Canada they live in. The population characteristics will enable a demographic segmentation of our consumer market. The following table illustrates a demographic profile of potential consumers.

Exhibit 7

We have combined age, education and income in order to examine market segments for the iPhone. Age is an important factor in consumer identity, since consumption patterns and financial situation change significantly throughout an individual's lifetime. From Exhibit 7, it is clear that the similar age group, 18-34, has the highest percentage, 74%, of wireless penetration in Canada; it is also notable that 73% of university students use a mobile phone. In our target market, we assume that the majority of the consumers have had university education. On the whole these young adults are well educated, media savvy and technologically literate.

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