Question

Assume you are manager of the Outback Steakhouse, a franchised restaurant that has opened at new location in St. Louis. Describe which segmentation base(s) and possible segmentation variable(s) you would use to segment its market and explain why each supports the appropriate market segmentation strategy.

Answer 1

Market segmentation consists of a strategy to better identify consumers based on common characteristics, that is, divide the market into clusters, so that there is a better targeting of the company's marketing strategies.

In the case of opening an Outback Steakhouse franchise in St. Louis, the bases of segmentation and possible appropriate segmentation variables could be geographical, to better understand the region of the city and surroundings, demographic to understand the characteristics of consumers and form the target audience and behavioral to understand the habits, tastes and preferences of your potential audience, and thus gather important information from that region and align the company's strategy to meet the specific desires and needs of consumers.