Two restaurant chains have decided to enter the Lehigh Valley market, Ruth\'s Ch

Question

Two restaurant chains have decided to enter the Lehigh Valley market, Ruth's Chris Steakhouse (an upscale steak house) and Steak& Shake(a fast-food chain). You have been offered jobs with both of them as director of marketing for the area. Choose one of the companies and explain how you would segment the market, which target markets you would choose to pursue and why how you would position the restaurant(and why), and how would you differentiate your restaurant from competitors to obtain a competitive advantage?

Explanation / Answer

Answer: Lehigh valley market is famous for its agricultural products and meat. This segmentation strategy is for the Steak and Shake a fast food chain. As a marketing director I will segment the market based on the behavioural and psychographic related segmentation variables. Based on these variables some of the segments will be as follows college students, who like to have fast food items because of their trendy lifestyles, farmers going to sell their produce and require a fast snacking option in their busy schedule, office goers who like to have something quickly to eat during their short lunch break, the families who are having an outing and like to have fast food, travellers who are passing from the town and want to grab something on their way.

The restaurant will target the student segment as a primary segment and the office goers as the secondary segment as both these segment offer better potential because of their need and affinity towards fast food and frequent and repetitive purchase of fast food items.

The restaurant will be positioned as an economical and healthy snacking option. The restaurant will differentiate itself by offering healthy snacking options made from organic ingredients and the prices will be kept competitive. As the trend of healthy snacking is rapidly gaining amongst the fast food customers particularly students hence this position and differentiation strategy will help the company to create a competitive advantage.

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