Lord of the fries Essay Example

  • Category:
    Marketing
  • Document type:
    Assignment
  • Level:
    Masters
  • Page:
    2
  • Words:
    1258

Market Segmentation 7

Market Segmentation

The Target Consumer Market

The given table provides information regarding the various segments of the market. For a restaurant that specializes in fries, the target segment should be the indiscriminate Snackers. Basically the profile of this segment makes it the most lucrative amongst the many other segments. From the list of preferred food products, this segment consumes a lot of potato chips. In addition to that, this segment consists of heavy consumers. The fact that these customers are heavy consumers indicates that it is worth pursuing. The business can reap sufficient profit out of the consumption by this market. Having realized that this segment consists of heavy consumers, it is possible to tailor appropriate marketing techniques to ensure that the needs of this segment are met profitably. With heavy consumption, riding on economies of scale can be something not only achievable, but also profitable.

In the same way, this segment consists of mainly teens. This means a lot to the marketer. When a marketer focuses on young age, this segment can be loyal for a long period if only their needs are met. It is important therefore to appeal to this segment and seek means of maintaining them in the future (Knight & Yueh 2009, p. 85). The teenagers form a segment which can be easily reached. It becomes easy when formulating marketing communication strategies because teens are technologically-informed. They can easily be reached through social media platforms like Facebook and Twitter. Statistically, using social media as a marketing tool can enable the business to communicate with millions of teenagers around the globe. Another feature about this segment that makes it the most suitable market for the fries is the fact that it likes good tasting stuffs. This is quite impressive in different dimensions. Unlike other segments, they do not care about the amount of calories in the food. In fact most teens prefer foods with high calorie content. Therefore, they will serve to be a very nice selling point to the teens. As long as the businesses can capitalize on such characteristics, it will be very easy to thrive with this kind of segment.

Apart from the features highlighted above, the Indiscriminate Snackers contain only one segment, being teens. Other market segments that have been identified contain different categories consisting young and adult consumers, single people, middle-aged, non-urban, etc. The diversity in the composition of market segment is likely to hinder efficiency and effectiveness in dealing with a market segment. This originates from the main reason for segmenting the market. The main purpose of market segmentation is to subdivide the market into smaller units with identical characteristics (Kotler 2001, p. 138). With diverse consumers in some of the market segments, appealing to their distinct needs can prove to be a nightmare. All these concerns seem to have been dealt with when considering the Indiscriminate Snackers segment. It is composed of only teens which make it easier to be addressed. The products can be easily tailored in order to satisfy the unique needs of consumers in the segment.

Vegetarian

Seafood consumers

Meat eaters

Chicken eaters

Animal products’ consumers

% snackers

Value/benefits sought

Nutritious no artificial ingredients, natural

Low calorie, quick energy

High calorie, good tasting

High energy content

Good tasting, satisfied hunger

Low price, value for money

Demographics

Better educated, have younger children

Younger, single

Younger/older females, lower socioeconomic

Middle aged, non-urban

Larger families, educated

Psychographics

Self-assured, controlled

Outdoor, types influential, adventurous

High anxiety, isolated

Sociable

Hedonistic

Self-assured, price oriented

Behavior (usage level)

Behavior (product choice)

Fruits, vegetables, cheese

Yoghurt, cheese

Yoghurt, crackers, biscuits, confections

Nuts, potato chips, pretzel, crackers

Confectionary, ice cream, biscuits, potato chips, pretzel

No specific focus

Market share

While it may not be an easy thing to estimate the market share of a business of this nature, it is not impossible to do so. In order to reach a realistic market share for this firm, it is important to discuss a number of issues surrounding the success or failure of this business. The company won the I LOVE FOOD AWARDS 2012 in the category of best vegetarian in Australia. Amongst other achievements, the restaurant updates its menu quite frequently in order to ensure it meets the changing needs of consumers. In addition to this, the quality of services being delivered by this restaurant is quite outstanding. The restaurant operates for 24 hours per day and the service rendered are good. For this reason, the restaurant has received a relatively fair rating by the consumers from different regions. The restaurant is ranked among the five restaurants for hot chips. Therefore, I believe the market share of this restaurant is above 20%. This indeed is quite impressive and the restaurant can perform even better.

Marketing Objectives

The objectives are meant to guide the business when it comes to strategic planning of the restaurant. Marketing is considered as one of the key aspects to be considered when it comes to strategic planning. For this reason, businesses must set goals that enable it to have a clear direction of where it is headed. Having pointed out that, it is important to highlight some of the factors that contribute to setting of goals. One of the considerations includes the gaps that can be identified in the current market. One of the common trends in the hotel industry is changing of eating habits. The change of eating habits is favoring consumption of fast foods. Many people are currently relying on fast foods all throughout the day. The nature of work by most of the customers has contributed greatly towards preferences favoring fast foods. Most leave their work places too exhausted to prepare any meal and therefore prefer acquiring fast foods while heading home. Based on such information, the following are some of the marketing objectives:

  • To increase product awareness for the various products being offered

  • To increase the market share above 20%

  • To exploit international markets as the lucrative markets in the hotel industry

  • To expand the product base in order to appeal to a larger number of customers

  • To open more outlets in Australian market

  • To increase overall profitability on annual basis by 30%

Conclusion

Market segmentation has proven to be a very significant activity in marketing. This is in consideration of how competitive the current markets appear to be. The ease in access and exchange of information has tightened the level of competitiveness across various sectors. Market segmentation has enabled the marketers to provide tailored services to consumers and prospective ones. It is therefore important for this restaurant to set objectives that will work effectively in the segments identified. This works not only in the short run, but also in the long run.

Reference

Boksberger, P.E. & Laesser, C 2002, Segmentation of the senior travel market by means of travel motivations, Journal of Vacation, vol. 15, 311-322.

Chai, L.G 2009, A Review of Marketing Mix: 4Ps or More? International Journal of Marketing Studies, Vol. 1, Issue no. 1, pp. 1-15.

Elisante, G 2005, Managing the Expanded Marketing Mix: A Critical Perspective Approach, (From 4Ps to 7Ps), The African Journal of Finance and Management, pp. 1-28.

Kotler, P 2001, Kotler on Marketing, Free Press, London, pp. 121-180.

Knight, J. & Yueh, L 2009, Segmentation or competition in China’s market? Camb. J. Econ, vol. 33, 79-94.

Shaw, A 2011, Market Segmentation and the impact on online media, Journal of Medical Marketing, vol. 11, 254-262.

Wise, R. & Sirohi, N 2005, Finding the best marketing mix, Journal of Business Strategy, Vol. 26, Issue 6, pp. 10-11.