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An Enormous Institution That Is the Bulwark of the Nation

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Presentation on theme: "An Enormous Institution That Is the Bulwark of the Nation"— Presentation transcript:

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2 An Enormous Institution That Is the Bulwark of the Nation
Including active duty, National Guard and reserve personnel, there were 2,320,202 service men and women in all US military branches as of Defense spending accounts for 15% of all federal spending and 50% of all federal discretionary spending. The US military budget for 2017 ($610 billion) was bigger than those of China, Russia, Saudi Arabia, India, France, the United Kingdom and Japan combined (a total of $578 billion). The latest budget, passed during February 2018 was $700 billion. The Defense Department spends a third of its budget on personnel and maintenance, and these costs are forecasted to reach 100% of the DoD budget by 2024, thus requiring spending cuts.

3 Increased Defense Spending to Address Added Troop Requirements
During late 2018, the Trump administration increased its Department of Defense 2019 budget proposal to $750 billion. The US Army is planning to increase its total force by 4,000/year for three years, or a total of 495,500 by 2021. Defense Secretary Jim Mattis said to expect “sustained growth during 2019 to 2023.” Such an increase, however, would require Congress to appropriate billions of additional dollars and there are mandatory federal spending caps in place through fiscal 2021. The US Air Force would like to add 74 new squadrons, or 40,000 more airmen and civilian employees, by 2030, or 725,000 total. The US Navy will need an additional 35,000 sailors by 2023, but its forecast is only 17,000 new active personnel.

4 “You’re in the Army Now”
In a RAND study, researchers investigated characteristics of first-year Army recruits. The vast majority (86.5%) were male, and their marital status was overwhelmingly single (79.0%), followed by married, 14.8%; divorced, 3.7%; and engaged, 2.5%. The highest educational level attained was a high school diploma, 46.9%, or GED, 13.6%, or a total of 60.5%. More than a third (35.8%) had some college and 3.7% had earned a college degree. The RAND study also reported most US Army recruits are from small towns, or 29%; followed by urban areas, 20%; suburbs, 18%; rural, 12%; and other, 2%.

5 A Focus on Norfolk, VA With numerous military bases, especially the US Navy, in and surrounding Norfolk, VA, it provides an excellent microcosm of a military market. Not surprisingly, 85.4% of adults there with a military occupation are men and 43.9% are 25–34 years of age. Although only 14.6% of the female population of Norfolk, VA have military occupations, 53.1% of active military households are women, compared to 46.9% of men. The largest percentage, or 27.6%, have an annual household income of $50K–$75K, with another 19.2% in the $100K–$150K range. Almost 40% (39.2%) have some college, with 23.4% having earned a college degree and 17.2% an advanced degree.

6 Huge Consumer Spending Among Active Military Households
With approximately 80% of active enlisted US military and approximately 50% of all officers 34 years of age or younger, they are prime consumer audiences for retailers. The Seattle-Tacoma market is another excellent microcosm, as 11% of nearby Bremerton-Silverdale, WA, where the Naval Base Kitsap is located are military members and families. Contrary to a popular misconception about the household incomes of active military families, in the Seattle-Tacoma market, the largest income level is $50K–$75K of families with adult members 18–34, or 46% of all active military families in the market.

7 The Military Veterans’ Consumer and Media Market
According to Nielsen’s Beyond the Uniform: A Look at Today’s Veteran Consumers report, there are approximately 20 million veterans living in the US; however, the total will decline to 13 million during the next 20 years. Half of all veterans live in the 10 most populous states (California, Texas, Florida, etc.), but more of them will be living in Western and Southern regions during the future. In addition, 24% are multicultural and 10% are women. US veterans are more likely to use traditional media than the average US adult: 23% more likely to be heavy TV viewers and 12% more likely to be heavy newspaper readers while 25% listen to news/talk radio and 20.2% a country music format.

8 Advertising Strategies
Many businesses in your market already realize offering a discount to active and veteran military families can maximize their expenditures. A recent study found 67% of military families will drive as much as 15 miles to shop at these businesses. Military families, mothers, specifically, prefer to shop off-base and in-store than online, especially clothing purchases. Coupons are a prime tactic for attracting them, as 79% use coupons and 68% download or clip them from print materials. Automobile dealers can attract more military consumers with a military discount as a prime motivation. Plus, 95% of military families are more likely to buy a vehicle than lease it.

9 New Media Strategies Because the military community is tight-knit, word-of- mouth is an even stronger marketing channel, so retailers may benefit significantly from an influencer marketing program, seeking the participation of one or more mothers in military families. Support of military members and their families is an excellent community involvement project for local businesses, which could include a designated page on their Websites where military groups/clubs can promote themselves and their activities. Local businesses can also use their social media pages to share this information with military members/families and visitors. Encourage military families to share their stories in photos and videos as well as tips and hints for how they enhance their lifestyles.

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