Market Segmentation

User Generated

cvaxl0101

Business Finance

Wilmington University

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Here is the question. I am also including the outline of what I have done so far.

  • Choose one of the opportunities from your list so that the marketing plan becomes focused. Factors to consider when making the choice include how quickly you can get to market, how big the potential market could be (Ch. 3) and how interested consumers will be in the new product, service or event (Ch. 4). Submit one paragraph describing this opportunity to me for my approval prior to continuing with your marketing plan.
  • Segment the market using the concepts you learned last week (Ch. 9) and select one or more segments to target. Make sure you can articulate the needs of this market segment.

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Executive Summary  Opportunity  Life style change to adopt organic and healthy foods  Increasing Millennials (23 years-36 years) in the population accounting for 20%.  Changing of life style to adopt eating in restaurants compared to eating at home.  The plan will be to shift the current menu list and services and include healthy foods at premium prices.  Document the total 5 year business improvement in  Sales- Set to grow by 25% annually  Market share- By year five we will have 5% of the market share.  Profit- they will increase by average 16% in years 4 and 5. SWOT analyst Strengths • BJ’s has expanded its restaurants over the years to 192 stores which mean it enjoys economies of scale. • BJ’s has quickly expanded to 24 states in America and this has attracted a strong brand reputation Weaknesses • A most recent trend is the customer's demand for healthy food and BJ’s is facing a hard time complying with the new trend and in some instances, it has received negative media reviews because of its grilled meat. Opportunities • The restaurant industry is growing at incredible speeds and people are changing their lifestyle and opting to eat in restaurants more than they prefer preparing food at home • people are becoming more conscious about their health they are opting to have organic foods Threats • Fast food restaurants are becoming even more popular than all service casual restaurants such as BJ’s which magnifies the competition in the industry. Positioning of product or service Offering customized menus and services to the customers based on feedback system.  Consumer promise or value proposition  What will be the exception with our services is that we will be customizing our products and services according to the region we will be operating in so that we are relevant to the community. For the loyal customers, they will be getting special menus and discounts which will be more appealing to the target groups. also has the opportunity to provide accommodation services to their clients who drink up too late hours for alcoholics tend drinking up to late night, and some of them cannot drive home Product Service Strategy  Describe the product or service being marketed. Topics should include, for instance  Organic Breakfast, lunch, dinner and cocktails  Breakfast will include: whole grain cereals, tea, coffee and break made sugar free.  Benefit is that they are healthy to the customer  Product packaging- the foods will be presented in the restaurant or take out prepared dishes. Product Price Strategy  The pricing strategy that will be followed will be quality of services and menu  This is because this is what matters the most to customers in the restaurant industry.  We will charge premium prices with an initial price of between $17-$27 for each food item.  This is because it will make the customers perceive quality in our services.  The plan for future price changes will be to reduce the price based on customer loyalty through offering them discounts.
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Explanation & Answer

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Running head: BJ Restaurant’s opportunity and market targeting

BJ Restaurant’s Opportunity and Market Targeting
Names:
Institution:

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BJ Restaurant’s opportunity and market targeting
BJ Restaurant’s opportunity and market targeting
There are a number of opportunities in the market that BJ Restaurant can utilize to
expand its market share, profitability, and capture the present interest of consumers. However,
one opportunity that best meets these targets is venturing in organic foods. According to
Doward (2017), the number of people going for organic foods has drastically risen in the
recent past as more people turn from being price conscious to quality and health conscious.
By venturing in such products, BJ Restaurants will thus be in a position to take advantage of
the many potential customers and thus raise its market share. Despite being costlier than other
foods, organic foods have attracted a large number of people including those under
medication as well as the new ones. This is an opportunity for BJ Restaurant to not only raise
its market share but the profitability as well. The market has the potential to raise the
restaurant chain’s financial performance. In 2016 alone, the sales of organic foods rose by a
whopping 8.4% to hit US$ 43.3 billion in annual sales (Meyer, 2017). At the same time,
Kennedy (2010) projects a continuous rise in future on the consumption of organic foods as a
result of shifting lifestyles created by rising health awareness. As a result, this is the perfect
opportunity that BJ Restaurant should consider and capitalize on.
Market segmenting
The organic foods market comprises of multiple consumer segments. This is based on
their interests, needs, and potential in the business. These consumer segments include the
weight-conscious, active people, people under special diet, and health-conscious people.
Health-conscio...

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