Subway Sandwiches: Identifying Segmentation Criteria That Affects Target Market Selection

As for our market segmentation the concentration will be on teens, young adults, and parents. Since teens don’t typically cook a lot we believe that there should be a chance for success in this area because we are offering quality products at a cheap price. The same could be said about the young adults as they could be new into the work force and looking to get the most food for the price and this is something that we will be able to provide for them. With all of this being said our main focus will still be with parents and families. This is because we want to gain customers at a young age and hope to maintain these customers for the period of their entire lives. If our business is able to obtain life-long customers it is sure to be a success and this is what we are looking for with our business.

The one I am going to choose for Afro-Caribbean Restaurant is Behavioural variable because a customer who has bought something from Afro-Caribbean Restaurant and is given a discount coupon or other sales material has witnessed behavioural segmentation. Therefore, do potential customers who

Customer profitability was a determinant used for segmenting and targeting, studies were done on customers’ likes, dislikes and types of products they would benefit from and models were developed to determine their propensity to buy.

The Gap Inc. is a global specialty retailer that operates stores selling casual apparel and accessories for men, women, and children (Yahoo Market Guide, 2001). Under the Gap, are the Old Navy and Banana Republic brands (Yahoo Market Guide, 2001).

Demographic Segmentation fragments the market into categories according to different demographic factors, usually with regards to the wants and needs of multiple consumer groups. The

A. Partnerships with local firms provided regional expertise for a company expanding its operations abroad

Psychographic segmentation is consits of assumptions for example is customer purchases reflect the lifestyle or represent him or her characteristics. According to this information Volkswagen reachs to all groups through their products as Polo, Beetle, Passat, Passat CC, Toureg, Scirocco etc.

In order to market the product into the market successfully, marketers need to have some marketing strategy to enter the desired market and make profit. Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics (Schiffman et al., 2011). Understanding the market size and segmentation is valuable, but the keys to effective targeting is to know just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends ( Berry, 1999).

With psychographic segmentation, we use psychology and demographics to better understand consumers. Buyers are divided into different groups on the basis of psychological/personality traits, lifestyle

As every customer has unique needs and expectations towards certain products, the ultimate goal of market segmentation is to organize customers into groups which allows targeting of customers with similar needs of and response to the products. The key is to minimize differentiation within each segment

Subway Sandwich, as presented in the Case Study presented in the Marketing Management MGT 551 class, is an undisputed market leader in a segment that is “firmly established as a nationwide food item for which there is plenty of room in all areas” (University of Phoenix, 2008). However, with a growing competition, changing consumer trends and increased product specialization, Subway’s real strategic marketing challenge is to be able to develop and maintain a differential advantage while sustaining sales growths and profitability.

Psychographic segmentation is based on people’s personalities, interests, opinions and lifestyles (Perreault, Cannon & McCarthy, 2015). As a new Amazon customer, you are profile by your attitudes and psychographics so that they can determine your behavior profile. Amazon is concern on what you want to purchase so that they can match other products of similar interests and lifestyles.

Based on the available data, customers could be segmented based on demographics (age, sex and income combination), purchase habits, channel preferences, and specific needs. Behavioral segmentation based on purchase habits is the best segmentation from C&C’s perspective. Deeper analysis indicates that within the segment of purchases made for personal occasions, there is a notable difference in the customer behavior when comparing purchases made for bigger events such as weddings or funerals, to those made for smaller occasions like birthdays. Also, there is value in further classifying general year-round purchasers into personal and corporate clients because of the difference in their spending capacity and needs.

‘Market segmentation represents an effort to identify and catergorise groups of customers and countries according to common characteristics’ (Keegan and Green 2016, p.228). For any business, it is crucial that they segment their market accordingly or they will risk forgoing sales opportunities. Fahy and Jobber (2015) identify the objective of market segmentation as distinguishing groups of customers with similar requirements so

Despite companies segmentation practices, customers decide for themselves what their required needs are, once this was realized by Dow Corning, evident from their self-audit, and 5 years of customer surveys and discussions with sales force. They reviewed their segmentation to a needs-based segmentation scheme (Xiameter Case Study).