Market Segmentation for a Fast Food Organization - Assignment Example

of the Report “Market Segmentation” INTRODUCTION Market segmentation is an importantelement which increases the efficiency of the goods, services and the level of productivity. Segmentation is done to know the actual needs and demands of the customers, to know what they want in what style and what amount. Segmentation is done to segment or divide the customers or potential buyers according to their needs and demands, thus they can be catered according to their needs and demands. By segmenting, one can easily cater the demands of every customer and thus generate better outcomes. Segmentation is thus termed as a valuable element for the companies or firms in order to increase the market share. Implementing effective segmentation strategies is an efficient way with the help of which better outcomes can be generated. If firms are well aware of the needs and demands of the customers, then they can cater them accordingly and can produce better outcomes. (Pride, pg 753, 1995) MARKET SEGMENT FOR A FAST FOOD ORGANIZATION If a fast food organization wants to operate in the UK, then the segmentation will be done accordingly in order to know the following elements: Real need of customers Their choices Likings and dis-likings of the customers Where the numerous potential buyers are The above-mentioned elements should be taken into an account in order to start a fast food organization. In every place or area, there are numerous customers with different sets of needs and demands; same is the situation with the UK. To open a fast food organization in the UK, segmentation should be done in an appropriate manner. Different techniques can be followed to know the needs and demands of the customers. Different researches can be first conducted to know the thinking of the customers. Analyzing the mentality of the customers, viewing them and then taking a decision is an important step, which should be considered properly. Surveys should be conducted to find out the taste of people, in order to know what food items are needed, whether they are meat or chicken lovers. What the ratio is of the people who want meat or chicken in their food. By doing this kind of survey or research better solutions can be made with the help of which enhanced outcomes can be developed and this will benefit the overall organization. Doing survey is an important and the foremost responsibility of every organization in order to know the needs and demands of the customers. (Pride, pg 753, 1995) After doing a survey, temporary food stalls can be maintained to know the future results. With the help of this method, the seller can know how many people there are there who are attracted towards their food items. What is in their minds, what they need and thus with the help of this method, potential buyers can be attracted to the item and this will help in generating better and effective outcomes. There are various segmentation-based techniques, which can be used to know what the needs of the customers are. While opening a fast food restaurant in the UK, one should first critically analyze where the high demand is, where people are looking for such type of food items and where they really need such food products. While knowing all these elements, one can easily generate better and effective productivity. Market segmentation is actually termed as a beneficial source for both the buyer and the sellers. Segmentation can be done in the following ways: GEOGRAPHIC SEGMENTATION DEMOGRAPHIC SEGMENTATION PSYCHOGRAPHIC SEGMENTATION INCOME SEGMENTATION OCCASION BASED SEGMENTATION GEOGRAPHIC SEGMENTATION If we look at the geographical segmentation, we can see that fast food organizations should try to open their franchise at commercial places. Mostly upper class people or the office workers visit the restaurants, this is the main reason why fast food restaurants should be at commercial places. (Michman, pg 263, 1998) DEMOGRAPHIC SEGMENTATION On the other hand, if we look at the demographic segmentation, we can see that people can be easily grouped in different classes, for instance, ages. It is a matter of fact that mostly teenagers are fond of fast food. Thus the fast food chain should be opened while keeping their needs and demands in consideration. (Michman, pg 263, 1998) PSYCHOGRAPHIC SEGMENTATION Now looking at this side, the psyche of the customers is an important element. People should keep this main element in mind that what customer has in their mind; the outcomes should be in accordance to them. (Lamb, pg 318, 2009) INCOME SEGMENTATION One of the most important segmentation is termed as income segmentation. While doing a research, this main element should be kept in mind that the fast food restaurants cater the high-level people; therefore, restaurants should be well developed in commercial places. (Pride, no pg, 2005) OCCASION BASED SEGMENTATION These businesses are very much successful when there is any occasion or event. Fast food organizations or firms should try to cover all those special events or occasions with the help of which these organizations can earn up to a high extent. (Pride, pg 537, 2007) Segmentation is termed as an important element, which can make this business successful, but on the other hand, it can ruin the business. Catering customers needs and demands is an important issue and it should be catered properly in order to generate better and well effective outcomes. One main element should be always termed as an important one, which is to cater all the needs and demands of the customers. The foremost responsibility of every seller or producer is to analyze the buying behavior of every customer or buyer, to analyze what their needs and demands are, what they want, what they are looking for and viewing what should be the performance in order to generate better and well effective outcomes. (Pride, pg 610, 2004) Segmentation is an important strategy used to generate well-effective outcomes. Fast food organization owners should keep this important thing in mind that they are the ones who should analyze the market deeply and then should take further steps to result in better outcomes. Along with segmentation, target market is also an important issue, which should be kept in consideration to attract the potential buyers and to generate better outcomes. Market segmentation comprises of the following important elements: Niche marketing Individual marketing Segment marketing Local marketing These above-mentioned elements are important as it is only due to these elements with the help of which a researcher can analyze all the facts while establishing any fast food chain. Fast food restaurants should try to know the behavior of the people in the UK, their buying patterns, their needs, their demands and their behavior regarding buying any product. While considering these above-mentioned elements, one can easily build a strong and a leading fast food restaurant in the UK. (Kerin, pg 733, 2004) CONCLUSION Market segmentation is an important area with the help of which an organization or firm can generate well-oriented outcomes. It is the situation with this fast food organization, which is trying to establish in the UK. By analyzing customers buying behavior, their buying patterns, their choices and their needs, an organization can establish itself in such a place, which can caters all the needs and demands of the customers and generate better outcomes. By segmentation, any organization or firm can build a strong relationship with its customers, which can, in the end, help in generating better outcomes. (Mowen, pg 696, 1998) A segment based approach, which is directly related to marketing, helps both the business as well as the customers. Segment based approach is very beneficial for every customer. By doing market segmentation, customers’ every need as well as demand will be fulfilled. In this world, customers are very well aware of all their needs and demands, and they want to fulfill their every single need. By market segmentation, customers needs and demands can be fulfilled and they can gain whatever they want. This fast food organization is the one, which is working with full co-ordination with the overall markets in order to know the buying behavior of all the customers to fulfill their needs and demands. By fulfilling customers’ needs and demands, a fast food organization can, no doubt, gain the higher potential, can be the best, and remain so in the future too. Catering needs and demands of all customers is a tough job but it can be fulfilled by doing a proper research and segmentation. Thus, segmentation is termed as an important element, which should not be ignored. (Davis, pg 392, 1998) REFERENCE William M Pride, (1995), Marketing: concepts and strategies, Houghton Mifflin, page 700-753. Ronald D. Michman, (1998), The food industry wars: marketing triumphs and blunders, Greenwood Publishing Group page 200-263. Charles W. Lamb, (2009), MKTG, Cengage Learning, page 300-318. William M. Pride, (2005), Marketing, Custom Publication, Houghton Mifflin College Div, no page. William M. Pride, (2007), Foundations of Marketing, Cengage Learning, page 500-537. William M. Pride, (2004), Marketing:Concepts & Strategies, Dreamtech Press, page 600-610. Roger A. Kerin, (2004), Marketing, McGraw-Hill/Irwin, page 700-733. Charles W. Lamb, (2008), Marketing, Cengage Learning, page 700-708. (Lamb, pg 708, 2008) John C. Mowen, (1998), Consumer behavior, Prentice-Hall, page 600-696. Bernard Davis, (1998), Food and beverage management, Butterworth-Heinemann, page 300-392. Read More