Current Market Segment

Demographic

            The current market segmentation of streaming and broadcast service of Hulu is between the age of 18 years and 49 years. According to Lenoir (2016), people between the ages of 18 and 49 years are people of generation X and Millenials or generation Y and Generation Z. In the U.S, there approximately more than 72 million millennial born within 1981 and I996. The younger people are more likely to embrace streaming services because they much time, compared to other people that have to balance between work, family and time for having fun. Younger people that are no married and are still in school are the most users of premium TV and film content of Hulu. Female customers make the largest group of users of the streaming and broadcast services because they love premium TV and film content (Lenoir, 2016). Apart from gender, customers are attracted to premium TV and film based on the cost of subscription. Meaning people with higher income are more likely to invest in premium TV and film content compared to low income earners.

Behavioral

            Behavioral segmentation is based on the activeness of the users. Under this segment, Hulu has a group of young people that mostly aim at engaging a brand on the online social networks. For instance, they the first to comment on the social sites of the products and are interested in the latest products in the market. Although they are critical to the prices, the different subscriptions give customers an opportunity to enroll for their preferred banquet (Bruwer & Li, 2007). The behavior of customers in this segment involve habit watching the latest almost every day, and continuously look forward for more content.

Psychographic

            Psychographic customers are defined based on their attitudes, values Psychographic characteristics are used to describe the final characteristics of the final end-user of a product. Under this segment, Hulu mostly target customers that like to relax after a hard day in the workplace. Given that the company target younger population, the group is influenced by lifestyle, and their beliefs. For instance, young people are likely to look forward to watch the latest episode of a given film, compared to older people.

VALS types

II. New Market Segments

Older customers

Technological stuffs are usually associated with younger population because of the challenges that comes with using technological tools. Therefore, the new segment of Hulu should be older customers that are beyond the age of 50 years. Older customers can also be a huge group in promoting the success of Hulu brand.

Demographic

            Demographics for this segment revolves people that are either have retired or at the highest points of their career. This segment will involve in both male and females who consume film and video contents. About 34% of Americans are of the age 50 years and above, this means that it is a huge market that Hulu can capitalize t boost its competitiveness in the industry. One aspect about this target market is their low use of social networks sites, meaning the company will have to rely on traditional media to promote it the video streaming services. Hulu will be required to market the services using media such as radio, television, news papers and billboards, these platforms will more effective than using the social media. Since there is a huge number of older people that have continued to open social media accounts, they are not very active compared to young people. However, the Hulu should continue with its online marketing because it will still win the older people with shows that they can resonate. In order to win many older customers, the company should introduce new episodes and films that they can relate.

Behavioral

            Among the old people, celebrations such as birthdays are not given much priority. However, people above the age of 50 years and above enjoy sports, parties or great shows that they can relate with. Since most people that are above 50 years but less than 65 years are still busy, they can consume films and episodes on Hulu in the evening or during holidays and weekends (Goryushkina et al., 2019). However, for those above 65 years, they are more likely to engage with video streaming for more hours because they are mostly at home. However, it is important to have a content that touches on family, good life and religion.

Psychographic

            The social status of older population is that they are relatively stable with regard to income or finances. This means, when they are pleased with a given film or episode, they are more likely are able to affordable the subscriptions fee. The lifestyle of older people is based on smooth living combined with a positive mindset to avoid any distraction that may affect their life (Camilleri, 2018). Additionally, older people are able to become loyal customers when they realize that the company offers those right services.

VALS types

VAL is an acronym that means values, attitude and lifestyle. The three terms used are intangible, meaning that they are used in the analysis of psychographics segmentation.  Personal values are related to the personal beliefs towards a given product. Value is influenced by the belief system of an individual, and can influence the desire of a person on a product. For intendance, as pointed out by cite, values are influenced by diverse factors such as culture and religion (Camilleri, 2018). For instance, when a film shows explicit content with people engaging in unethical practices, then a religious person will less likely invest in it. Among older people, they may have strong values system because they more conservative to traditional way of life compared to younger markets. In this regard, the content presented by the Hulu streaming services should be clean content that they find to be attractive to people of their age. While there are older people that embrace changes more easily, most would not be willing to see content that is can be consumed by the entire family.

Geographic segmentation (targeting young people)

The new subbasement that Hulu can embrace is geographic segmentation. This segmentation is a new focus of the company to look beyond its American Market. Under this segmentation, Hulu should turn to new markets in regions such as Africa, Asia, and Caribbean countries, which have continued to experience an increase in the number of people using video streaming services. Under this new segment, the company should focus adjusting its pricing to target the relatively lower income earners in those regions (Grisé & El-Geneidy, 2018). Like in the U.S, the streaming services will strongly be embraced by young people. However, the company will have to focus on people living in the cities because they have access to full time supply of power and internet connection.

Lifestyle

            This new market segmentation will be influenced by their lifestyle. Asia, for instance, has many young men that are drawn to the world fashion. In additional, many young people in Asia are attracted to the fashion industry, and they are influenced by the desire to emulated celebrities in their country. Therefore, most young people aim at standing out, and mostly learn about style from the social media or from television series. Therefore, young people from Asia will be more likely to embrace Hulu streaming services in order to learn more about the fashion industry in the American culture. As an influential force, the American content is loved and embraced across the world, therefore, Hulu streaming service are likely to gain more customers. The lifestyle of Americans is likely to synchronize with the desired lifestyle of most young people in Asia. However, given that streaming services from outside are banned in countries such as China, the focus of Hulu should therefore be in countries such as Vietnam, Singpore, Korea and Japan.

Geographical Segmentation